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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the six month period ended September 30, 2021

Commission File 001 — 33175

 

 

Vedanta Limited

(Exact name of registrant as specified in the charter)

 

 

1st Floor, ‘C’ wing, Unit 103

Corporate Avenue, Atul Projects,

Chakala, Andheri (East),

Mumbai – 400 093, Maharashtra, India

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


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CONVENTIONS USED IN THIS FORM

In this report, we refer to information regarding the zinc, oil and gas, iron ore, copper, aluminium, steel and power industries and our competitors from market research reports, analyst reports and other publicly available sources. Although we believe that this information is reliable, we have not independently verified the accuracy and completeness of the information. We caution you not to place undue reliance on this data.

Vedanta Resources Limited (“Vedanta”) is the parent company of our Company. We conduct our businesses both directly and through a consolidated group of companies that we have ownership interests in. See “Item 4. Information on the Company” in Annual Report (Form 20-F) for fiscal year ended March 31, 2021 for more information on these companies and their relationships to us. Unless otherwise stated in this report or unless the context otherwise requires, references in this report to “we”, “us”, “our”, “Vedanta Limited”, “our Company”, “the Company” or “our consolidated group of companies” mean Vedanta Limited, its consolidated subsidiaries and its predecessors, collectively, including Cairn India Limited (now Vedanta Limited—oil and gas business) and its subsidiaries (“Cairn”), Monte Cello BV (“Monte Cello”), Copper Mines of Tasmania Proprietary Limited (“CMT”), Thalanga Copper Mines Proprietary Limited, Bharat Aluminium Company Limited (“BALCO”), Hindustan Zinc Limited (“HZL”), Fujairah Gold FZC, Sterlite (USA), Inc., (“Sterlite USA”), Talwandi Sabo Power Limited (“TSPL”), THL Zinc Ventures Limited, THL Zinc Limited, THL Zinc Holding B.V., THL Zinc Namibia Holdings (Proprietary) Limited (“Skorpion”), Skorpion Zinc (Proprietary) Limited, Skorpion Mining Company (Proprietary) Limited, Namzinc (Proprietary) Limited, Amica Guesthouse (Proprietary) Limited, Rosh Pinah Health Care (Proprietary) Limited, Black Mountain Mining (Proprietary) Limited (“BMM”), Vedanta Lisheen Holdings Limited (“Lisheen”), Vedanta Lisheen Mining Limited, Killoran Lisheen Mining Limited, Killoran Lisheen Finance Limited, Lisheen Milling Limited, Vedanta Exploration Ireland Limited, Lisheen Mine Partnership, Sterlite Ports Limited, Vizag General Cargo Berth Private Limited, Paradip Multi Cargo Berth Private Limited, Lakomasko B.V., MALCO Energy Limited (“MALCO Energy”) (formerly known as Vedanta Aluminium), Sesa Resources Limited, Sesa Mining Corporation Limited, Bloom Fountain Limited (“BFL”), Goa Sea Port Private Limited, Western Cluster Limited (“WCL”), Maritime Ventures Private Limited, Vedanta Star Limited (“VSL”), ESL Steel Limited (“ESL”), Avanstrate Inc.(“ASI”), Avanstrate Korea, Avanstrate Taiwan and Ferro Alloys Corporation Limited (“FACOR”), FACOR Power Limited (“FPL”).

Cairn India Limited (now Vedanta Limited’s—oil and gas business) merged into Vedanta Limited by way of a scheme of arrangement and the Board of Directors of both the companies made the merger operative on April 11, 2017 (the “Cairn India Merger”). All references to Vedanta Limited—oil and gas business and its subsidiaries is referred to as “Cairn”.

In this report, references to the “ADS offering” is to the initial public offering of our equity shares in the form of American Depositary Shares (“ADSs”), each currently representing four equity shares, in the United States (or the “US”) completed in June 2007.

Unless otherwise indicated, the unaudited condensed consolidated interim financial information for the six months period ended September 30, 2020 and 2021 have been prepared in accordance with International Accounting Standard 34 – Interim Financial Reporting as issued by International Accounting Standards Board (“IASB”), and for the fiscal year ended March 31, 2021 included in this report has been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by IASB. References to a particular “fiscal year” are to our fiscal year ended March 31 of that year. Our fiscal quarters end on June 30, September 30 and December 31. References to a year other than a “fiscal” year are to the calendar year ended December 31.

Our unaudited condensed consolidated interim financial statements are reported in Indian Rupees or “”. Unless otherwise specified, translation of amounts for the convenience of the reader has been made in this report from Indian Rupees to US dollars at the rate of 74.16 per $1.00 based on the exchange rate quoted by the Federal Reserve Bank of New York as at September 30, 2021. No representation is made that the Indian Rupee amounts represent US dollar amounts or have been, could have been or could be converted into US dollars at such rates or any other rate. All financial information presented in US dollars has been rounded to nearest decimal. Any amount less than US dollar 0.5 million has been presented as “0”.

In this report, references to “US” or the “United States” are to the United States of America, its territories and its possessions. References to “UK” are to the United Kingdom. References to “India” are to the Republic of India. References to “Namibia” are to the Republic of Namibia. References to “South Africa” are to the Republic of South Africa. References to “Ireland” are to the Republic of Ireland. References to “Sri Lanka” are to the Democratic Socialist Republic of Sri Lanka. References to “UAE” are to the United Arab Emirates. References to “$”, “dollars” or “US dollars” are to the legal currency of the United States. References to “Indian Rupees”, or “ ” are to the legal currency of the Republic of India. References to “AUD”, “Australian dollars” are to the legal currency of the Commonwealth of Australia. References to “NAD” or “Namibian dollars” are to the legal currency of Namibia. References to “ZAR” or “RAND” are to the legal currency of the Republic of South Africa. References to “¢” are to US cents. References to “RMB”, “Renminbi”, “CNY” or “Chinese Yuan” are to the legal currency of the People’s Republic of China. References to “JPY” are to the legal currency of Japan.

 

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References to “lb” are to the imperial pounds (mass) equivalent to 0.4536 kilograms, references to “mt” or “tons” are to metric tons, references to “mmt” are to million metric tons, references to “tpd” are to tons per day, references to “tpa” are to tons per annum, a unit of mass equivalent to 1,000 kilograms or 2,204.6 lb, references to “mtpa” are to million tons per annum, “mmtpa” are to million metric tons per annum, references to “wmt” are to wet metric tons, references to “dmt” are to dry metric tons, references to “oz” are to ounces, with one kilogram being equivalent to 32.1507 oz and one ton equivalent to 32,151 oz, references to “mm” are to millimeters, references to “ha” are to hectares, references to “kms” are to kilometers, a unit of area equal to 10,000 square meters or 107,639 square feet, references to “GW” are to giga watts, references to “kt” are to kilo tons, references to “bbls” are to barrels, references to “blpd” are to barrels of liquid per day, references to “mmboe” are to million barrels of oil equivalent, references to “bboe” are to billion barrels of oil equivalent, references to “mmbopd” are to million barrels of oil per day, references to “kbopd” are to kilo barrels of oil per day, references to “bopd” are to barrels of oil per day, references to “boepd” are to barrels of oil equivalent per day, references to “tcm” are to trillion cubic meters, references to “mmscmd” are to million metric standard cubic meter per day, references to “mscf” are to million standard cubic feet, references to “mmscf” are to million metric standard cubic feet, references to “mmscfd” are to million metric standard cubic feet per day, references to “twh” are to terawatt hours, references to “bcf” are to billion cubic feet, and references to “TcRc” are to treatment and refining charges. References to net oil and gas production are to the entitlement interest production of Vedanta Limited’s—oil and gas business and its subsidiaries, in which the Ravva royalty is not netted off. References to “GoI” are to Government of India.

Our consolidated financial information does not include our controlling shareholder Vedanta, its shareholders and various companies owned directly or indirectly by it (other than us and our consolidated group of companies described above), including without limitations, Vedanta Resources Holdings Limited (“VRHL”), Konkola Copper Mines Plc, Twin Star Holdings Limited (“Twin Star”), Welter Trading Limited (“Welter Trading”), the Anil Agarwal Discretionary Trust (“Trust”), Conclave PTC Limited (“Conclave”), Volcan Investments Limited (“Volcan”), Volcan Investments Cyprus Limited, Sterlite Technologies Limited, Monte Cello Corporation NV, Valliant (Jersey) Limited, Vedanta Resources Jersey II Limited, Vedanta Resources Finance Limited, Vedanta Resources Cyprus Limited, Richter Holding Limited (“Richter”), Westglobe Limited (“Westglobe”), Finsider International Company Limited (“Finsider”), Vedanta Resources Jersey Limited, Vedanta Finance (Jersey) Limited, Vedanta Jersey Investments Limited, Vedanta Finance UK Limited, and Sterlite Grid Limited. References to the “Group” is to Vedanta Limited and its subsidiaries on a consolidated basis and references to the “Vedanta Group” is to Vedanta and its subsidiaries on a consolidated basis.

In this report, references to The London Metal Exchange Limited (“LME”) price of zinc, copper, aluminium are to the cash seller and settlement price on the LME for copper, zinc or aluminium for the period indicated.

 

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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This form contains “forward-looking statements” as defined in the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations, assumptions, estimates and projections about our company and our industry. These forward-looking statements are subject to various risks and uncertainties. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “will,” “project,” “seek,” “should” and similar expressions. These forward-looking statements include, among other things, the discussions of our business strategy and expectations concerning our market position, future operations, margins, profitability, liquidity and capital resources. We caution you that reliance on any forward-looking statement involves risks and uncertainties, and that, although we believe that the assumptions on which our forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate and, as a result, the forward-looking statements based on those assumptions could be materially incorrect. Factors which could cause these assumptions to be incorrect include, but are not limited to:

 

   

changes resulting directly or indirectly due to COVID 19 Pandemic;

 

   

regulatory, legislative and judicial developments and future regulatory actions and conditions in our operating areas;

 

   

dependence on obtaining and maintaining mining leases for our mining sites and approvals from regulatory authorities for increasing oil and gas production;

 

   

compliance with extensive environmental and health and safety regulations;

 

   

the future capital requirements of our business and the availability of financing on favorable terms;

 

   

construction of pipeline and terminal may take longer than planned, may not work as intended and the cost of construction may be greater than forecast;

 

   

a decline or volatility in the prices of or demand for zinc, oil and gas, iron ore, copper, aluminium, alloy, steel or power or increase in supply of zinc, oil and gas, iron ore, copper, aluminium, alloy, steel or power;

 

   

events that could cause a decrease in our production and higher cost of production for zinc, oil and gas, iron ore, copper, aluminium, alloy, steel or power;

 

   

unavailability or increased costs of raw materials for our products;

 

   

general risks related to Vedanta Limited’s commercial power business and challenges in operationalization of investment in aluminium and power business;

 

   

fluctuations in metal prices on LME, ore prices, oil and gas prices, steel prices or power prices;

 

   

interruptions in the availability of exploration, production or supply equipment or infrastructure and/or increased costs;

 

   

our actual economically recoverable lead-zinc ore, copper ore or bauxite reserves being lower than we have estimated;

 

   

our ability to expand our business, effectively manage our growth or implement our strategy;

 

   

our ability to retain our senior management team and hire and retain sufficiently skilled labor to support our operations;

 

   

increasing competition in the zinc, oil and gas, iron ore, copper, aluminium, steel or power industries;

 

   

political or economic instability in and around India or around the regions in which we operate;

 

   

worldwide economic and business conditions;

 

   

reliance on third party contractors and providers of equipment which may not be readily available and whose costs may increase;

 

   

our ability to successfully consummate strategic acquisitions; our ability to simplify our group structure and reduction in non-controlling stake in group companies;

 

   

the outcome of outstanding litigation in which we are involved;

 

   

our ability to maintain good relations with respective local communities and our trade unions and avoid protests, strikes and lock-outs;

 

   

the continuation of tax holidays, exemptions and deferred tax schemes we currently enjoy;

 

   

changes in tariffs, royalties, customs duties and government assistance;

 

   

terrorist attacks and other acts of violence, natural disasters, increasing impact of climate change and other environmental conditions and outbreaks of infectious diseases and other public health concerns in India, Asia and elsewhere;

 

   

fluctuations in currency exchange rates;

 

   

failure of digital infrastructure and cyber security attacks due to negligence or IT security failures;

 

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our ability to discover new reserves, enhance existing reserves or develop new operations in sufficient quantities to maintain or grow the current level of our reserves;

 

   

any actions of our controlling shareholder, Vedanta; and

 

   

transitioning of zinc and lead mining operations from open pit to underground mining.

In light of these and other uncertainties, you should not conclude that we will necessarily achieve any plans, objectives or projected financial results referred to in any of the forward-looking statements. Except as required by law, we do not undertake to release revisions to any of these forward-looking statements to reflect future events or circumstances.

 

 

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Index to Unaudited Condensed Consolidated Interim Financial Statements

 

     Page(s)  

Unaudited Condensed Consolidated Interim Statements of Profit or Loss for the six months ended September 30, 2020 and 2021

     F-2  

Unaudited Condensed Consolidated Interim Statements of Comprehensive Income for the six months ended September 30, 2020 and 2021

     F-3  

Unaudited Condensed Consolidated Interim Statements of Financial Position as at March 31, 2021 and September 30, 2021

     F-4  

Unaudited Condensed Consolidated Interim Statements of Cash Flows for the six months ended September 30, 2020 and 2021

     F-6  

Unaudited Condensed Consolidated Interim Statements of Changes in Equity for the six months ended September 30, 2020 and September 30, 2021 and for the year ended March 31, 2021

     F-8  

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

     F-11  

 

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VEDANTA LIMITED AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF PROFIT OR LOSS

(In millions except share or per share amounts unless otherwise stated)

 

For the six months ended September 30,    Notes      2020     2021     2021  
            ( in
million)
    ( in
million)
    (US dollars
in million)

(Note 2 (a))
 

Revenue

        364,907       581,527       7,842  

Cost of sales

        (280,578     (388,886     (5,244
     

 

 

   

 

 

   

 

 

 

Gross profit

        84,329       192,641       2,598  

Other operating income

        6,152       7,675       103  

Distribution expenses

        (8,289     (17,250     (233

Administration expenses

        (14,739     (21,957     (296
     

 

 

   

 

 

   

 

 

 

Operating profit

        67,453       161,109       2,172  

Investment and other income

     6        15,659       11,753       159  

Finance and other costs

     7        (26,224     (23,751     (320
     

 

 

   

 

 

   

 

 

 

Profit before tax

        56,888       149,111       2,011  

Income tax (expense)/ credit

     8        (27,205     (37,503     (506
     

 

 

   

 

 

   

 

 

 

Profit for the period

        29,683       111,608       1,505  

Profit attributable to:

         

Equity holders of the parent

        16,589       89,029       1,201  

Non-controlling interests

        13,094       22,579       304  
     

 

 

   

 

 

   

 

 

 

Profit for the period

        29,683       111,608       1,505  
     

 

 

   

 

 

   

 

 

 

Earnings per share

     9         

Basic

        4.48       24.03       0.33  

Diluted

        4.46       23.88       0.33  

Weighted average number of equity shares used in computing earnings per share

         

Basic

        3,703,288,875       3,705,598,026       3,705,598,026  

Diluted

        3,722,997,996       3,728,910,917       3,728,910,917  

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

 

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VEDANTA LIMITED AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

(In millions except share or per share amounts unless otherwise stated)

 

For the six months ended September 30,    2020     2021     2021  
     ( in
million)
    ( in
million)
    (US dollars
in million)
(Note 2 (a))
 

Profit for the period

     29,683       111,608       1,505  

Other comprehensive income, net of income tax:

      

Items that will not be reclassified subsequently to profit or loss

      

Re-measurement of defined benefit obligation

     (12     33       0  

Tax credit/(expense)

     (3     (21     (0

(Loss)/Gain on fair value of financial asset investment

     410       439       6  

Items that will be reclassified subsequently to profit or loss

      

Exchange differences on translation of foreign operations

     (1,491     1,331       18  

Tax (expense)/ credit

     (216     85       1  

Gain/(loss) on cash flow hedges recognised during the period

     (838     (1,993     (27

Tax (expense)/ credit

     293       694       9  

(Gain)/loss on cash flow hedges recycled to profit or loss

     549       1996       27  

Tax credit/ (expense)

     (209     (689     (9
  

 

 

   

 

 

   

 

 

 

Total other comprehensive income/(loss) for the period, net of income tax

     (1,517     1,875       25  
  

 

 

   

 

 

   

 

 

 

Total Comprehensive Income for the period

     28,166       113,483       1,530  
  

 

 

   

 

 

   

 

 

 

Total Comprehensive Income attributable to:

      

Equity holders of the parent

     15,026       90,979       1,227  

Non-controlling interests

     13,140       22,504       303  
  

 

 

   

 

 

   

 

 

 
     28,166       113,483       1,530  
  

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

 

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VEDANTA LIMITED AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

(Indian Rupees in million)

 

As at           March 31,
2021
    September 30,
2021
    September 30,
2021
 
     Notes      ( in
million)
    ( in
million)
    (US dollars in
million)
(Note 2 (a))
 

ASSETS

         

Non-current assets

         

Property, plant and equipment

        946,181       946,983       12,769  

Exploration and evaluation assets

        24,542       27,296       368  

Intangible assets

        7,481       7,507       101  

Deferred tax assets

        73,958       67,713       913  

Financial assets investments

        1,532       1,765       24  

Income tax assets

        27,481       27,626       373  

Other non-current assets

        127,727       111,141       1,499  
     

 

 

   

 

 

   

 

 

 

Total non-current assets

        1,208,902       1,190,031       16,047  
     

 

 

   

 

 

   

 

 

 

Current assets

         

Inventories

        99,509       114,810       1,548  

Income tax assets

        69       230       3  

Trade and other receivables

        130,729       170,840       2,304  

Short-term investments

        281,775       262,158       3,535  

Derivative financial assets

        701       1,036       14  

Restricted cash and cash equivalents

     10        1,025       6,669       90  

Cash and cash equivalents

     11        48,537       47,781       644  
     

 

 

   

 

 

   

 

 

 

Total current assets

        562,345       603,524       8,138  
     

 

 

   

 

 

   

 

 

 

Total assets

        1,771,247       1,793,555       24,185  
     

 

 

   

 

 

   

 

 

 

LIABILITIES

         

Current liabilities

         

Borrowings

     12        189,600       136,634       1,842  

Acceptances

        83,711       88,795       1,197  

Trade and other payables

        306,747       319,772       4,312  

Derivative financial liabilities

        2,786       3,273       44  

Retirement benefits

        1,135       1,295       18  

Provisions

        2,378       2,487       34  

Current tax liabilities

        2,792       11,956       161  
     

 

 

   

 

 

   

 

 

 

Total current liabilities

        589,149       564,212       7,608  
     

 

 

   

 

 

   

 

 

 

Net current assets / (liabilities)

        (26,804     39,312       530  
     

 

 

   

 

 

   

 

 

 

Non-current liabilities

         

Borrowings

     12        379,622       372,810       5,027  

Deferred tax liabilities

        21,894       25,394       342  

Retirement benefits

        1,465       1,484       20  

Provisions

        29,854       31,137       420  

Derivative financial liabilities

        764       573       8  

Other non-current liabilities

        14,450       18,427       249  
     

 

 

   

 

 

   

 

 

 

Total non-current liabilities

        448,049       449,825       6,066  
     

 

 

   

 

 

   

 

 

 

Total liabilities

        1,037,198       1,014,037       13,674  
     

 

 

   

 

 

   

 

 

 

Net assets

        734,049       779,518       10,511  
     

 

 

   

 

 

   

 

 

 

EQUITY

         

Share capital

     14        3,718       3,718       50  

Securities premium

        190,452       190,452       2,568  

Treasury shares

        (3,223     (3,135     (42

Share based payment reserve

        1,707       1,679       23  

 

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As at           March 31,
2021
     September 30,
2021
     September 30,
2021
 
     Notes      ( in
million)
     ( in
million)
     (US dollars in
million)
(Note 2 (a))
 

Other components of equity

        117,712        119,700        1,614  

Retained earnings

        274,231        295,902        3,990  
     

 

 

    

 

 

    

 

 

 

Equity attributable to equity holders of the parent

        584,597        608,316        8,203  

Non-controlling interests

        149,452        171,202        2,308  
     

 

 

    

 

 

    

 

 

 

Total Equity

        734,049        779,518        10,511  
     

 

 

    

 

 

    

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

 

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VEDANTA LIMITED AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

(Indian Rupees in million)

 

For the six months ended September 30,    2020     2021     2021  
     ( in
million)
    ( in
million)
    (US dollars in
million)
(Note 2 (a))
 

Cash flows from operating activities

      

Profit before tax

     56,888       149,111       2,011  

Adjustments to reconcile profit to net cash provided by operating activities:

      

Depreciation and amortisation

     39,440       41,722       563  

Impairment charge of property, plant and equipment/ exploration and evaluation assets/ other assets

     —         459       6  

(Reversal) / provision for doubtful debts/advances

     (346     515       7  

Unsuccessful exploration costs written off

     15       1,528       21  

Fair value gain on financial assets at fair value through profit or loss

     (7,790     (1,617     (22

Share based payment expense

     360       513       7  

Loss / (gain) on sale of property, plant and equipment, net

     (126     (851     (11

Exchange loss / (gain), net

     (34     1,487       20  

Interest and dividend income

     (7,481     (10,210     (138

Interest expense

     25,642       22,479       303  

One time settlement of entry tax under amnesty scheme

     —         1,342       18  

Liabilities written back no longer required

     (950     —         —    

Changes in assets and liabilities:

      

Increase in receivables

     (12,799     (23,932     (323

Increase/ (Decrease) in inventories

     11,540       (15,395     (208

(Decrease)/ Increase in payable

     (35,990     2,387       31  

Proceeds from short-term investments

     544,279       417,401       5,628  

Purchases of short-term investments

     (462,734     (427,408     (5,763
  

 

 

   

 

 

   

 

 

 

Cash generated from operations

     149,914       159,531       2,150  

Interest paid

     (29,855     (28,717     (387

Interest received

     16,039       13,791       186  

Dividends received

     17       14       0  

Income tax paid (net)

     (10,494     (18,840     (254
  

 

 

   

 

 

   

 

 

 

Net cash from operating activities

     125,621       125,779       1,695  
  

 

 

   

 

 

   

 

 

 

Cash flows from investing activities

      

Consideration paid for business acquisition (net of cash and cash equivalents acquired)

     (447     —         —    

Purchases of property, plant and equipment (including intangibles)

     (29,021     (45,488     (613

Proceeds from sale of property, plant and equipment

     369       1,723       23  

Loans repaid by related parties

     3,743       16,102       217  

Loans to related parties

     (43,116     —         —    

Proceeds from short-term deposits

     95,184       114,782       1,548  

Purchases of short-term deposits

     (127,712     (87,914     (1,185

Net changes in restricted cash and cash equivalents

     (9     (5     (0
  

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (101,009     (800     (10
  

 

 

   

 

 

   

 

 

 

Cash flows from financing activities

      

Repayment of working capital loan, net

     (65,361     (2,501     (34

Proceeds from acceptances

     121,709       109,252       1,473  

Repayment of acceptances

     (133,970     (105,922     (1,428

Proceeds from other short-term borrowings

     50,619       35,508       479  

Repayment of other short-term borrowings

     (11,580     (35,998     (485

Proceeds from long-term borrowings

     124,598       66,898       902  

Repayment of long-term borrowings

     (58,199     (123,531     (1,666

Payment of dividends to non-controlling interests

     (24,456     —         —    

Payment of dividends to equity holders of the Company

     —         (68,454     (923

Payment of lease liability

     (1,660     (1,099     (15
  

 

 

   

 

 

   

 

 

 

 

F-6


Table of Contents
For the six months ended September 30,    2020      2021     2021  
     ( in
million)
     ( in
million)
    (US dollars in
million)
(Note 2 (a))
 

Net cash (used in) / from financing activities

     1,700        (125,847     (1,697
  

 

 

    

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     265        112       2  
  

 

 

    

 

 

   

 

 

 

Net increase / (decrease) in cash and cash equivalents

     26,577        (756     (10
  

 

 

    

 

 

   

 

 

 

Cash and cash equivalents at the beginning of the year

     50,598        48,537       654  

Cash and cash equivalents at the end of the period1

     77,175        47,781       644  

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

 

1.

For composition, refer Note 10 and Note 11

 

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Table of Contents

VEDANTA LIMITED AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

(Indian Rupees in million except share or per share amounts unless otherwise stated)

 

(a)

For the six months ended September 30, 2020:

( in million)

 

     Attributable to equity holders of the parent              
     Share
capital
     Securities
premium
     Treasury
shares#
    Share
based
payment
reserve
    Translation
of
foreign
operations
    Equity
instruments
through OCI
     Cash
flow
hedges
    Retained
earnings*
    Total     Non-
controlling
interests
    Total  

Balance as at April 1, 2020

     3,718        190,452        (3,806     2,496       116,448       348        (270     203,135       512,521       169,374       681,895  

Profit / (Loss) for the period

     —          —          —         —         —         —          —         16,589       16,589       13,094       29,683  

Other comprehensive income / (loss) for the period, net of tax

     —          —          —         —         (1,880     410        (73     (20     (1,563     46       (1,517
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income / (loss) for the period

     —          —          —         —         (1,880     410        (73     16,569       15,026       13,140       28,166  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Stock options cancelled during the period

     —          —          —         (904     —         —          —         904       —         —         —    

Recognition of share based payment

     —          —          —         374       —         —          —         —         374       —         374  

Exercise of stock options

     —          —          263       (113     —         —          —         (150     0     0     0

Dividend

     —          —          —         —         —         —          —         —         —         (24,457     (24,457

Change in fair value of put option liability/ conversion option asset/ derecognition of non-controlling interest

     —          —          —         —         —         —          —         (981     (981     897       (84

Acquisition of FACOR

     —          —          —         —         —         —          —         —         —         (639     (639

Effect of fair-valuation of intercompany loan

     —          —          —         —         —         —          —         (3,367     (3,367     —         (3,367
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as at September 30, 2020

     3,718        190,452        (3,543     1,853       114,568       758        (343     216,110       523,573       158,315       681,888  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

*

Retained earnings mainly includes general reserve, debenture redemption reserve, preference share redemption reserve and capital reserve (Refer Note 14)

#

Treasury share represents 13,392,506 equity shares (face value of  1 each) of the Company purchased by Vedanta Limited ESOP Trust pursuant to the Company’s stock option scheme.

 

F-8


Table of Contents
(b)

For the year ended March 31, 2021:

( in million)

 

     Attributable to equity holders of the parent              
     Share
capital
     Securities
premium
     Treasury
shares#
    Share
based
payment
reserve
    Translation of
foreign
operations
     Equity
Instruments
through OCI
     Cash
flow
hedges
    Retained
earnings*
    Total     Non-
controlling
interests
    Total  

Balance as at April 1, 2020

     3,718        190,452        (3,806     2,496       116,448        348        (270     203,135       512,521       169,374       681,895  

Profit for the year

     —          —          —         —         —          —          —         112,883       112,883       34,107       146,990  

Other comprehensive income / (loss) for the year, net of tax

     —          —          —         —         777        621        (212     (64     1,122       940       2,062  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income / (loss) for the year

     —          —          —         —         777        621        (212     112,819       114,005       35,047       149,052  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Stock options cancelled during the year

     —          —          —         (920     —          —          —         595       (325     —         (325

Recognition of share based payment

     —          —          —         575       —          —          —         —         575       —         575  

Exercise of stock options

     —          —          583       (444     —          —          —         (139     —         —         —    

Dividend

     —          —          —         —         —          —          —         (35,187     (35,187     (56,029     (91,216

Acquisition of FACOR (Refer Note 4(a))

     —          —          —         —         —          —          —         —         —         (309     (309

Change in fair value of put option liability/ conversion option asset/ derecognition of non-controlling interest

     —          —          —         —         —          —          —         (1,631     (1,631     1,369       (262

Effect of fair valuation of inter-company loan**

     —          —          —         —         —          —          —         (5,361     (5,361     —         (5,361
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as at March 31,
2021

     3,718        190,452        (3,223     1,707       117,225        969        (482     274,231       584,597       149,452       734,049  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

*

Retained earnings mainly includes general reserve, debenture redemption reserve, preference share redemption reserve and capital reserve (Refer Note 14)

#

Treasury share represents 12,193,159 equity shares (face value of  1 each) of the Company purchased by Vedanta Limited ESOP Trust pursuant to the Company’s stock option scheme.

**

An amount of  3,364 million ($ 46 million) was originally recognized as a transaction with the shareholder and the same was increased by  5,802 million ($ 79 million) upon revision in terms. Of the same,  3,805 million ($ 52 million) was reversed on a subsequent modification during the year. Refer note 16(3) for further details.

 

F-9


Table of Contents
(c)

For the six months ended September 30, 2021:

( in million)

 

     Attributable to equity holders of the parent              
     Share
capital
     Securities
premium
     Treasury
shares#
    Share
based
payment
reserve
    Translation
of
foreign
operations
     Equity
instruments
through OCI
     Cash
flow
hedges
    Retained
earnings*
    Total     Non-
controlling
interests
    Total  

Balance as at April 1, 2021

     3,718        190,452        (3,223     1,707       117,225        969        (482     274,231       584,597       149,452       734,049  

Profit / (Loss) for the period

     —          —          —         —         —          —          —         89,029       89,029       22,579       111,608  

Other comprehensive income / (loss) for the period, net of tax

     —          —          —         —         1,529        439        20       (38     1,950       (75     1,875  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income / (loss) for the period

     —          —          —         —         1,529        439        20       88,991       90,979       22,504       113,483  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Stock options cancelled during the period

     —          —          —         (329     —          —          —         329       —         —         —    

Recognition of share based payment

     —          —          —         403       —          —          —         —         403     —         403  

Exercise of stock options

     —          —          88       (102             14       0       —         0  

Dividend

     —          —          —         —         —          —          —         (68,454     (68,454     —         (68,454

Change in fair value of put option liability/ conversion option asset/ derecognition of non-controlling interest

     —          —          —         —         —          —          —         791       791       (754     37  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as at September 30, 2021

     3,718        190,452        (3,135     1,679       118,754        1,408        (462     295,902       608,316       171,202       779,518  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as at September 30, 2021 (US dollars in million)

     50        2,568        (42     23       1,601        19        (6     3,990       8,203       2,309       10,511  

 

*

Retained earnings mainly includes general reserve, debenture redemption reserve, preference share redemption reserve and capital reserve (Refer Note 14)

#

Treasury share represents 11,865,142 equity shares (face value of  1 each) of the Company purchased by Vedanta Limited ESOP Trust pursuant to the Company’s stock option scheme.

 

F-10


Table of Contents

VEDANTA LIMITED AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1. GROUP OVERVIEW:

Vedanta Limited (“the Company” or “the parent”) and its consolidated subsidiaries (collectively, the “Group”) is a diversified natural resource group engaged in exploring, extracting and processing minerals and oil and gas. The Group engages in the exploration, production and sale of zinc, lead, silver, copper, aluminium, iron ore and oil and gas and have a presence across India, South Africa, Namibia, Ireland, Australia, Liberia and UAE. The Group is also in the business of commercial power generation, steel manufacturing and port operations in India and manufacturing of glass substrate in South Korea and Taiwan.

The Company was incorporated on September 8, 1975 under the laws of the Republic of India. The registered office of the Company is situated at 1st Floor, ‘C’ wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai-400092, Maharashtra. The Company’s shares are listed on National Stock Exchange and Bombay Stock Exchange in India. In June 2007, the Company completed its initial public offering of American Depositary Shares, or ADS, each representing four equity shares, and listed its ADSs on the New York Stock Exchange. In July 2009, the Company completed its follow-on offering of an additional 131,906,011 ADSs, each representing four equity shares, which are listed on the New York Stock Exchange.

On September 23, 2021, the Board of Directors approved the Company’s intention to delist its ADSs representing its equity shares from the New York Stock Exchange and to terminate its ADS program. The Company also intends to deregister such ADSs and the underlying equity shares from the U.S. Securities Exchange Act of 1934 upon satisfying the relevant criteria. On October 29, 2021, the Company filed the necessary documents for delisting with the US Securities and Exchange Commission and the delisting of ADS became effective on November 08, 2021. This action has no impact on the current listing status or trading of the Company’s equity shares on the Indian stock exchanges.

The Company is majority owned by Twin Star Holdings Limited (“Twin Star”), Finsider International Company Limited (“Finsider”), Vedanta Holdings Mauritius II Limited (“VHM2L”), Vedanta Holdings Mauritius Limited (“VHML”), West Globe Limited (“West Globe”) and Welter Trading Limited (“Welter”) which are in turn wholly-owned subsidiaries of Vedanta Resources Limited (“VRL”), which is company incorporated in the United Kingdom. VRL held 50.1%, 55.1% and 65.18%, through its subsidiaries Twin Star, Finsider, VHM2L, VHML, West Globe and Welter, of the Company’s equity as at September 30, 2020, March 31, 2021 and September 30, 2021 respectively.

During the current period, VRL together with Twin Star Holdings Limited, Vedanta Holdings Mauritius Limited and Vedanta Holdings Mauritius II Limited, as persons acting in concert with VRL (“PACs”), acquired 374,231,161 equity shares of the Company under the voluntary open offer made to the public shareholders of the Company in accordance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and thereby increasing their shareholding in the Company to 65.18%.

Details of the Group’s various businesses are as follows:

 

   

Zinc India business is owned and operated by Hindustan Zinc Limited (“HZL”).

 

   

Zinc international business comprises Skorpion mine and refinery in Namibia operated through THL Zinc Namibia Holdings (Proprietary) Limited (“Skorpion”), Lisheen mine in Ireland operated through Vedanta Lisheen Holdings Limited (“Lisheen”) (Lisheen mine ceased operations in December 2015) and Black Mountain Mining (Proprietary) Limited (“BMM”), whose assets include the operational Black Mountain mine and the Gamsberg mine project located in South Africa.

 

   

The Group’s oil and gas business is owned and operated by the Company and its subsidiary, Cairn Energy Hydrocarbons Limited and consists of exploration and development and production of oil and gas.

 

   

The Group’s iron ore business is owned by the Company and by two wholly owned subsidiaries of the Company, i.e., Sesa Resources Limited and Sesa Mining Corporation Limited and consists of exploration, mining and processing of iron ore, pig iron and metallurgical coke and generation of power for captive use. Pursuant to the Honourable Supreme Court of India order, operations in the state of Goa are currently suspended. The Group’s iron ore business includes Western Cluster Limited (“WCL”) in Liberia which has iron ore assets and is wholly owned by the Group. WCL’s assets include development rights to Western Cluster and a network of iron ore deposits in West Africa. WCL’s assets have been fully impaired.

 

   

The Group’s copper business is owned and operated by the Company, Copper Mines of Tasmania Pty Ltd (“CMT”) and Fujairah Gold FZC and is principally one of custom smelting and includes captive power plants at Tuticorin in Southern India.

The Group’s copper business in Tamil Nadu, India has received an order from the Tamil Nadu Pollution Control Board (“TNPCB”) on April 09, 2018, rejecting the Company’s application for renewal of consent to operate under the Air and Water Acts for the 400,000 tpa copper smelter plant in Tuticorin for want of further clarification and consequently the operations were suspended. The Company has filed an appeal with TNPCB Appellate authority against the said order. During the pendency of the appeal, TNPCB through its order dated May 23, 2018 ordered for disconnection of electricity supply and closure of copper smelter plant. Post such order, the state government on May 28, 2018 ordered the permanent closure of the plant. We continue to engage with the Government of India and relevant authorities to enable the restart of operations at Copper India. [Refer Note 3(c)(I)(iii)].

 

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Table of Contents

Further, the Company’s copper business includes refinery and rod plant at Silvassa consisting of a 133,000 MT of blister/ secondary material processing plant, a 216,000 tpa copper refinery plant and a copper rod mill with an installed capacity of 258,000 tpa. The plant continues to operate as usual, catering primarily to the domestic market.

In addition, the Group owns and operates the Mt. Lyell copper mine in Tasmania, Australia through its subsidiary, CMT and a precious metal refinery and copper rod plant in Fujairah, UAE through its subsidiary Fujairah Gold FZC. The operations of Mt Lyell copper mine were suspended in January 2014 following a mud slide incident and were put into care and maintenance since July 09, 2014 following a rock fall incident in June 2014.

 

   

The Group’s Aluminium business is owned and operated by the Company and by Bharat Aluminium Company Limited (“BALCO”). The aluminium operations include a refinery and captive power plant at Lanjigarh and a smelter and captive power plants at Jharsuguda both situated in the State of Odisha in India. BALCO’s partially integrated aluminium operations comprise two bauxite mines, captive power plants, smelting and fabrication facilities in the State of Chattisgarh in central India.

 

   

The Group’s power business is owned and operated by the Company, BALCO, MALCO Energy Limited (“MEL”) and Talwandi Sabo Power Limited (“TSPL”), a wholly owned subsidiary of the Company, which are engaged in the power generation business in India. The Company’s power operations include a thermal coal- based commercial power facility of 600 MW at Jharsuguda in the State of Odisha in Eastern India. BALCO commercial power operations include 300 MW thermal coal based power plant at Korba, Chattisgarh. Talwandi Sabo Power Limited (“TSPL”) power operations include 1,980 MW (three units of 660 MW each) thermal coal- based commercial power facilities. Power business also includes the wind power plants commissioned by HZL and a power plant at MEL (under care and maintenance) situated at Mettur Dam in the State of Tamil Nadu in southern India.

 

   

The Group’s other business include ESL Steel Limited (“ESL”). ESL is engaged in the manufacturing and supply of billets, TMT bars, wire rods and ductile iron pipes in Eastern India.

The Group’s other activities also include Vizag General Cargo Berth Private Limited (“VGCB”) and Maritime Ventures Private Limited (“MVPL”). Vizag port project includes mechanization of coal handling facilities and upgradation of general cargo berth for handling coal at the outer harbour of Visakhapatnam Port on the east coast of India. MVPL is engaged in the business of rendering logistics and other allied services inter alia rendering stevedoring, and other allied services in ports and other allied sectors. The Group’s other activities also include AvanStrate Inc. (“ASI”) and Ferro Alloys Corporation Limited (“FACOR”). ASI is involved in the manufacturing of glass substrate in South Korea and Taiwan. FACOR was acquired on September 21, 2020 and is involved in business of producing Ferro Alloys and owns a Ferro Chrome plant with capacity of 72,000 TPA, two operational chrome mines and 100 MW of captive power plant through its subsidiary, FACOR Power Limited (“FPL”).

 

F-12


Table of Contents

NOTES TO THE FINANCIAL STATEMENTS

2. Basis of preparation and basis of measurement of financial statements

a) Basis of Preparation

These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34 – Interim Financial Reporting as issued by International Accounting Standards Board (“IASB”).

The unaudited condensed consolidated interim financial statements do not include all of the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s annual financial statements for the year ended March 31, 2021.

These financial statements are approved for issue by the Board of Directors on November 29, 2021.

Certain comparative figures appearing in these unaudited condensed consolidated interim financial statements have been regrouped and/or reclassified to better reflect the nature of those items (refer note 2(C)). However, the comparative figures in the statements of profit and loss, cash flows and changes in equity and other related disclosures in so far it relates to the six months ended September 2020 do not consider any events subsequent to December 25, 2020 being the date of signing of the unaudited condensed consolidated interim financial statements of the Group for the six months ended September 30, 2020.

The unaudited condensed consolidated interim financial statements are presented in Indian Rupee (), the presentation currency of the Company. Solely for the convenience of readers, the unaudited condensed consolidated interim financial statements as at and for the period ended September 30, 2021 have been translated into US dollars (“$”) at the noon buying rate of $ 1.00 =  74.1600 in the City of New York for cable transfers of Indian Rupee as certified for customs purposes by the Federal Reserve Bank of New York on September 30, 2021. No representation is made that the Indian Rupee amounts represent US dollar amounts or have been, could have been or could be converted into US dollars at such a rate or any other rate.

b) Basis of Measurement

These financial statements have been prepared on a going concern basis using historical cost convention and on an accrual method of accounting, except for certain financial assets and liabilities which are measured at fair value.

c) Restatement/Reclassification

In the comparative period ended September 30, 2020, some of the acceptances which were previously included under trade and other receivables and trade and other payables amounting to  (136) million and  2,684 million respectively have been reclassified to acceptances on the face of the balance sheet.

3(a). Significant accounting policies

These unaudited condensed consolidated interim financial statements have been prepared using the same accounting policies as applied in the audited consolidated financial statements of the Group as of March 31, 2021, except for those mentioned in 3(b) below.

3(b). Application of new and revised standards

The Group has adopted, with effect from April 01, 2021, the following new and revised standards and interpretations. Their adoption has not had any material impact on the amounts reported in the unaudited condensed consolidated interim financial statements.

 

  1.

Amendments to IFRS 3 regarding recognition under acquisition method;

 

  2.

Amendments to IFRS 7, IFRS 9, IAS 39, IFRS 4 and IFRS 16 regarding Interest Rate Benchmark Reform—Phase 2;

 

  3.

Conceptual framework for financial reporting under IFRS issued by IASB;

 

  4.

Amendments to IFRS 16 regarding COVID-19 related rent concessions.

A number of other minor amendments to existing standards also became effective on April 01, 2021 and have been adopted by the Group. The adoption of these new accounting pronouncements did not have a material impact on the accounting policies, methods of computation or presentation applied by the Group.

 

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3(c) Significant accounting estimates

I. Significant Estimates:

 

(i)

Impact of COVID-19

The Group has considered possible effects of Covid-19 pandemic (“the Pandemic”) on the recoverability of its investments, property, plant and equipment (PPE), inventories, loans and receivables, etc. in accordance with IFRS. The Group has considered forecast consensus, industry reports, economic indicators, and general business conditions to make an assessment of the implications of the Pandemic. Based on the assessment, no adjustments is required to these condensed consolidated interim financial statements. The impact of the Pandemic may be different from that as estimated as at the date of approval of these condensed consolidated interim financial statements and the management continues to closely monitor any material changes to future economic conditions.

 

(ii)

Recoverability of deferred tax and other income tax assets

The Group has carried forward tax losses, unabsorbed depreciation and MAT credit that are available for offset against future taxable profit. Deferred tax assets are recognised only to the extent that it is probable that taxable profit will be available against which the unused tax losses or tax credits can be utilized. This involves an assessment of when those assets are likely to reverse, and a judgement as to whether or not there will be sufficient taxable profits available to offset the assets. This requires assumptions regarding future profitability, which is inherently uncertain. To the extent assumptions regarding future profitability change, there can be an increase or decrease in the amounts recognised in respect of deferred tax assets and consequential impact in the consolidated statements of profit or loss.

The total deferred tax assets recognised in these financial statements include MAT credit entitlements of  82,358 million and  77,567 million ($ 1,046 million) as at March 31, 2021 and September 30, 2021 respectively, of which  3,400 million as at March 31, 2021 was expected to be utilized in fourteenth year and  800 million ($ 11 million) as at September 30, 2021 is expected to be utilised in the fourteenth year, fifteen years being the maximum permissible time period to utilise the MAT credits.

Additionally, the Group has tax receivables on account of refund arising on account of past amalgamation and relating to various tax disputes. The recoverability of these receivables involve application of judgement as to the ultimate outcome of the tax assessment and litigations. This pertains to the application of the legislation, which in certain cases, is based upon management’s interpretation of country specific tax law, in particular India, and the likelihood of settlement. Management uses in-house and external legal professionals to make informed decisions.

 

(iii)

Copper operations in Tamil Nadu, India

In an appeal filed by the Group against the closure order of the Tuticorin Copper smelter by Tamil Nadu Pollution Control Board (“TNPCB”), the appellate authority National Green Tribunal (“NGT”) passed an interim order on May 31, 2013 allowing the copper smelter to recommence operations and appointed an Expert Committee to submit a report on the plant operations. Post the interim order, the plant recommenced operations on June 23, 2013. Based on the Expert Committee’s report on the operations of the plant stating that the plant’s emission were within prescribed standards and based on this report, NGT ruled on August 08, 2013 that the Copper smelter could continue its operations and recommendations made by the Expert Committee be implemented in a time bound manner. The Group has implemented all of these recommendations. TNPCB filed an appeal against the order of the NGT before the Supreme Court of India.

In the meanwhile, the application for renewal of Consent to Operate (CTO) for existing copper smelter, required as per procedure established by law was rejected by TNPCB in April 2018. Vedanta Limited has filed an appeal before the TNPCB Appellate Authority challenging the Rejection Order. During the pendency of the appeal, there were protests by a section of local community raising environmental concerns and TNPCB vide its order dated May 23, 2018 ordered closure of existing copper smelter plant with immediate effect. Further, the Government of Tamil Nadu, issued orders dated May 28, 2018 with a direction to seal the existing copper smelter plant permanently. The Company believes these actions were not taken in accordance with the procedure prescribed under applicable laws. Subsequently, the Directorate of Industrial Safety and Health passed orders dated May 30, 2018, directing the immediate suspension and revocation of the Factory License and the Registration Certificate for the existing copper smelter plant.

The Company has appealed this matter before the copper NGT, who vide its order on December 15, 2018 has set aside the impugned orders and directed the TNPCB to pass fresh orders for renewal of consent and authorization to handle hazardous substances, subject to appropriate conditions for protection of environment in accordance with law.

 

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The State of Tamil Nadu and TNPCB approached the Supreme Court in Civil Appeals on January 02, 2019 challenging the judgements of NGT dated December 15, 2018 and August 08, 2013. The Supreme Court vide its judgement dated February 18, 2019 set aside these judgements of NGT solely based on maintainability and directed the Company to file an appeal in the High court.

The Company had filed a writ petition before Madras High Court challenging the various orders passed against the Company in 2018 and 2013. On August 18, 2020, the Madras High Court delivered the judgement wherein it dismissed all the writ petitions filed by the Company. The Company has appealed the said High Court order at the Supreme Court and also filed an interim relief for care & maintenance of the plant. The matter was then listed on December 02, 2020 before the Supreme Court, who after having heard both the sides, concluded that at this stage the interim relief in terms of trial run could not be allowed. Further, considering the voluminous nature of documents and pleadings, the matter shall be finally heard on merits. The last hearing was held on March 17, 2021 and at present the matter is not yet listed for hearing in the Supreme Court.

As per the Company’s assessment, it is in compliance with the applicable regulations and expects to get the necessary approvals in relation to the existing operations and hence the Company does not expect any material adjustments to these financial statements as a consequence of above actions.

The Company has carried out an impairment analysis for existing plant assets during the period ended September 30, 2021 considering the key variables and concluded that there exists no impairment. The Company has done an additional sensitivity analysis with commencement of operations of the existing plant w.e.f. April 01, 2024 and noted that the recoverable amount of the assets would still be in excess of their carrying values.

The carrying value of the assets is  18,257 million and  17,740 million ($ 239 million) as at March 31, 2021 as at September 30, 2021.

Expansion Plant:

Separately, the Company has filed a fresh application for renewal of the Environmental Clearance (EC) for the proposed Copper Smelter Plant 2 (Expansion Project) dated March 12, 2018 before the Expert Appraisal Committee of the Ministry of Environment, Forests and Climate Change (“MoEFCC”) wherein a sub-committee was directed to visit the Expansion Project site prior to prescribing the Terms of Reference.

In the meantime, the Madurai Bench of the High Court of Madras, in a Public Interest Litigation, vide its order dated May 23, 2018 held that the application for renewal of the Environmental Clearance for the Expansion Project shall be processed after a mandatory public hearing and in the interim, ordered the Company to cease construction and all other activities on site for the proposed Expansion Project with immediate effect. The MoEFCC has delisted the expansion project since the matter is sub-judice. Separately, State Industries Promotion Corporation of Tamil Nadu Ltd (“SIPCOT”) vide its letter dated May 29, 2018, cancelled 342.22 acres of the land allotted for the Expansion Project. Further, the TNPCB issued orders on June 07, 2018 directing the withdrawal of the Consent to Establish (CTE) which was valid till March 31, 2023.

The Company has approached Madras High Court by way of writ petition challenging the cancellation of lease deeds by SIPCOT pursuant to which an interim stay has been granted. The Company has also filed Appeals before the TNPCB Appellate Authority challenging withdrawal of CTE by the TNPCB and the matter is pending for adjudication.

Considering the delay in existing plant matter and accordingly delay in getting the required approval for expansion project, management considered to make provision for impairment for expansion project basis fair value less cost of disposal and accordingly made impairment provision of  6,692 million in March 2020. During the current period, there are no updates in the Expansion Project and impairment provision of  6,692 million ($ 91 million) is considered to be adequate and the net carrying value of  770 million ($ 10 million) as at September 30, 2021 approximates its recoverable value.

Property, plant and equipment of  13,367 million and  11,164 million ($ 151 million) and inventories of  2,836 million and  2,694 million ($ 36 million) as at March 31, 2021 and September 30, 2021 respectively, pertaining to existing and expansion plant, could not be physically verified, anytime during the year, as the access to the plant is presently restricted. However, since operations are suspended and access to the plant restricted, any difference between book and physical quantities is unlikely to be material.

 

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(iv)

PSC Extension

Rajasthan Block

The Company operates an oil and gas production facility in Rajasthan under a Production Sharing Contract (“PSC”). The management is of the opinion that the Company is eligible for automatic extension of the PSC for Rajasthan (“RJ”) block on same terms w.e.f. May 15, 2020, while Government of India (“GoI”) in October 2018, accorded its approval for extension of the PSC, under the Pre-NELP Extension policy as per notification dated April 07, 2017 (“Pre-NELP Policy”), for RJ block by a period of 10 years, w.e.f. May 15, 2020. As per the said policy and extension, the Company is required to comply with certain conditions and pay an additional 10% profit oil to GoI. The Company had challenged the applicability of Pre-NELP Policy to the RJ block. The Division Bench of the Delhi High Court in March 2021 set aside the single judge order of May 2018 which allowed automatic extension of PSC. An appeal has been filed in Supreme Court against this order.

One of the conditions for extension of PSC relates to notification of certain audit exceptions raised for Financial Year 16-17 as per PSC provisions and provides for payment of amounts, if such audit exceptions result into any creation of liability.

The Directorate General of Hydrocarbons (“DGH”), in May 2018, has raised a demand on the Company and its subsidiary for the period up to March 31, 2017 for Government’s additional share of Profit oil based on its computation of disallowance of certain costs incurred in excess of the initially approved Field Development Plan (“FDP”) of pipeline project for  14,770 million ($ 202 million) and retrospective re-allocation of certain common costs between Development Areas (“DAs”) of RJ aggregating to  26,690 million ($ 364 million). The DGH vide its letter dated May 12, 2020, reiterated its demand only with respect to the retrospective re-allocation of certain common costs between Development Areas (“DAs”) of RJ block of  26,690 million ($ 364 million) towards contractor share for the period upto March 31, 2017. This amount was subsequently revised to  33,600 million ($ 458 million) till March 2018 vide DGH letter dated December 24, 2020. In a recent development, DGH vide its letter dated September 14, 2021, has communicated the partial approval by Empowered Committee of Secretaries of the revised pipeline project cost over the initial approved FDP.

The Company in January 2020 received notifications from the DGH on audit exceptions arising out of its audit for Financial Year 2017-18, which comprises consequential effects on profit oil due to the aforesaid matters and certain new matters on cost allowability plus interest aggregating to  47,896 million ($ 645 million), representing share of Vedanta Limited and its subsidiary, CEHL (“the Claimants”), which have been suitably responded to by the Company.

The Company believes that it has sufficient as well as reasonable basis (pursuant to the PSC provisions and related approvals), supported by legal advice, for having claimed such costs and for allocating common costs between different DAs. In the Company’s opinion, these computations of the aforesaid demand / audit exceptions are not appropriate and the accounting adjustments sought for issues pertaining to Year 2007 and onwards are based on assumptions that are not in consonance with the approvals already in place. The Company’s view is also supported by independent legal opinion and the Company has been following the process set out in PSC to resolve these aforesaid matters. The Company has also invoked the PSC process for resolution of disputed exceptions and has issued notice for arbitration and the tribunal stands constituted. Further, on September 23, 2020, the GoI had filed an application for interim relief before Delhi High Court seeking payment of all disputed dues. This matter is scheduled for hearing on February 21, 2022.

Also, on Vedanta’s application under section 17 of the Arbitration and Conciliation Act, 1996, the Tribunal in December 2020 ordered that GoI should not take any action to enforce any of the amounts at issue in this arbitration against the Claimants during the arbitral period. The GoI has challenged the said order before the Delhi High Court under the said Act. This matter is now pending adjudication. The GoI has also filed application before the Tribunal objecting to its jurisdiction to decide issues arising out of or relating to the PSC extension policy dated April 07, 2017, the Office Memorandum dated February 01, 2013, as amended and audit exceptions notified for FY 2016-18. This application has been dismissed by the Tribunal. All issues related to this matter will be heard together at the same time as the hearing on merits.

In management’s view, the above-mentioned condition on demand raised by the DGH for additional petroleum linked to PSC extension is untenable and has not resulted in creation of any liability and cannot be a ground for non-extension. In addition, all necessary procedures prescribed in the PSC including invocation of arbitration, in respect of the stated audit observation have also been fulfilled. Accordingly, the PSC extension approval granted vide DGH letter dated October 26, 2018 upholds with all conditions addressed and no material liability is expected to devolve upon the Group.

Simultaneously, the Company is also pursuing with the GoI for executing the RJ PSC addendum at the earliest. In view of extenuating circumstances surrounding COVID-19 and pending signing of the PSC addendum for extension after complying with all stipulated conditions, the GoI has been granting interim permission to the Company to continue Petroleum operations in the RJ block. The latest permission is valid upto January 31, 2022 or signing of the PSC addendum, whichever is earlier.

 

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(v)

ESL Steel Limited, had filed application for renewal of Consent to Operate (‘CTO’) on August 24, 2017 for the period of five years which was denied by Jharkhand State Pollution Control Board (‘JSPCB’) on August 23, 2018, as JSPBC awaited response from the MOEFCC over a 2012 show-cause notice. After a personal hearing towards the show cause notice, MoEFCC revoked the Environmental Clearance (EC) on September 20, 2018. The Hon’ble High Court of Jharkhand granted stay against both revocation orders and allowed the continuous running of the plant operations under regulatory supervision of the JSPCB. Jharkhand High Court on September 16, 2020 passed an order vacating the interim stay in place beyond September 23, 2020, while listed the matter for final hearing. ESL urgently filed a petition in the Supreme Court, and on September 22, 2020, ESL was granted permission to run the plant till further orders. Next date of High Court hearing is December 12, 2021 and Supreme Court hearing is yet to be listed.

The Forest Advisory Committee (“FAC”) of MoEFCC granted the Stage 1 clearance and the MoEFCC approved the related Terms of Reference (TOR) on August 25, 2020. ESL presented its proposal before the Expert Appraisal Committee (“EAC”) after completing the public consultation process and the same has been recommended for grant of EC subject to Forest Clearance by the EAC in its 41st meeting dated 29 and 30 July 2021. Vide letter dated August 25, 2021 MoEFCC rejected the EC “as of now” due to stay granted by Madras High Court vide order dated July 15, 2021 in a Public Interest Litigation filed against the Standard Operating Procedure which was issued by MoEFCC for regularization of violation case on July 07, 2021. As per Stage 1 clearance, the Company is required to provide non-forest land in addition to the afforestation cost. The Company, based on the report of an EIA consultant, has recognised a provision of  2,135 million as part of cost of sales in the financial statement of FY 20-21 with respect to the estimated costs to be incurred by the Company for obtaining Environment Clearance.

4. Business Combination

Ferro Alloys Corporation Limited—Business Combination

During the previous year ended March 31, 2021, the Company acquired control over Ferro Alloys Corporation Limited (“FACOR”). FACOR was admitted under Corporate insolvency resolution process in terms of the Insolvency and Bankruptcy Code, 2016 of India. Based on completion of the closing conditions, the Company concluded the acquisition date as September 21, 2020. The Company holds 100% in FACOR, while FACOR holds 90% equity in its subsidiary, Facor Power Limited (FPL).

FACOR is in the business of producing Ferro Alloys and owns a Ferro Chrome plant with capacity of 72,000 TPA, two operational Chrome mines and 100 MW of Captive Power Plant through its subsidiary FPL. The acquisition will complement the Group’s existing steel business as the vertical integration of ferro manufacturing capabilities has the potential to generate significant efficiencies. FACOR has been included in “Others” segment. If FACOR had been acquired at the beginning of the comparative period, revenue and profit before taxation of the Group for the six months ended September 30, 2020 would have been  367,144 million and  57,051 million respectively.

5. Segment information

Description of segment and principal activities

The Group is a diversified natural resource group engaged in exploring, extracting and processing minerals and oil and gas. The Group produces zinc, lead, silver, copper, aluminium, iron ore, oil and gas and commercial power and has a presence across India, South Africa, Namibia, U.A.E, Ireland, Australia, Japan, South Korea, Taiwan and Liberia. The Group is also in the business of port operations and manufacturing of glass substrate and steel. The Group has seven reportable segments: copper, aluminium, iron ore, power, Zinc India (comprises zinc and lead India), Zinc international, oil and gas and others. The management of the Group is organized by its main products: copper, Zinc (comprises zinc and lead India, silver India and zinc international), aluminium, iron ore, oil and gas, power and others. ‘Others’ segment mainly comprises port/berth, steel, glass substrate and ferro alloys business and those segments which do not meet the quantitative threshold for separate reporting. Each of the reportable segments derives its revenues from these main products and hence these have been identified as reportable segments by the Group’s chief operating decision maker (“CODM”).

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

The accounting policies of the reportable segments are the same as the Group’s accounting policies. The operating segments reported are the segments of the Group for which separate financial information is available. Earnings before interest, depreciation and amortisation and tax (Segment profit) are evaluated regularly by the CODM in deciding how to allocate resources and in assessing performance and is a non-IFRS measure. The Group’s financing (including finance and other costs and investment and other income) and income taxes are reviewed on an overall basis and are not allocated to operating segments.

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

 

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Table of Contents

a. For the six months ended September 30, 2020

 

     Copper
(
in
million)
    Zinc India
(
in
million)
    Zinc
International
(
in
million)
    Aluminium
(
in
million)
    Power
(
in
million)
    Iron Ore
(
in
million)
    Oil and Gas
(
in
million)
    Others
(
in
million)
    Elimination
(
in
million)
    Total
(
in
million)
 

Revenue

                    

Sales

     42,813       93,428       10,058       124,112       28,784       14,889       30,555       20,268       —         364,907  

Inter-segment sales

     —         —         —         270       —         277       —         124       (671     —    

Segment revenue

     42,813       93,428       10,058       124,382       28,784       15,166       30,555       20,392       (671     364,907  

Cost of Sales and expenses

     (43,502     (48,762     (6,790     (94,674     (20,078     (10,576     (17,553     (17,928     671       (259,192

Segment profit / (loss)

     (689     44,666       3,268       29,708       8,706       4,590       13,002       2,464       —         105,715  

Depreciation and amortisation

     (765     (11,650     (1,436     (8,353     (2,902     (1,096     (10,636     (2,602     —         (39,440

Other items*

     —         —         —         950       —         —         —         —         —         1,178  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit / (loss)

     (1,454     33,016       1,832       22,305       5,804       3,494       2,366       (138       67,453  

Investment and other income

                       15,659  

Finance and other costs

                       (26,224
                    

 

 

 

Profit before tax

                       56,888  
                    

 

 

 

b. As at March 31, 2021

 

           

Assets and liabilities

                    

Assets

                    

Segment assets

     59,570       200,072       60,740       477,070       163,620       33,039       181,108       78,160       —         1,253,379  

Financial assets investments

                       1,532  

Deferred tax asset

                       73,958  

Short-term investments

                       281,775  

Cash and cash equivalents (including restricted cash and cash equivalents)

                       49,563  

Income tax asset

                       27,549  

Loans to related party

                       70,712  

Others

                       12,779  
                    

 

 

 

Total assets

                       1,771,247  
                    

 

 

 

Liabilities

                    

Segment liabilities

     43,277       47,217       10,672       156,994       18,405       12,269       111,776       21,126       —         421,736  

Borrowings

                       569,222  

Current tax liabilities

                       2,792  

Deferred tax liabilities

                       21,894  

Others

                       21,554  
                    

 

 

 

Total liabilities

                       1,037,198  
                    

 

 

 

 

*

Other items represent Renewable Power Obligation (RPO) liability reversal of  950 million ($ 13 million). and forex gain on MAT credit entitlements of  228 million ($ 3 million) which has not been allocated to any segment.

 

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Table of Contents

c. For the six months ended September 30, 2021

 

     Copper
(
in
million)
    Zinc India
(
in
million)
    Zinc
International
(
in million)
    Aluminium
(
in
million)
    Power
( in
million)
    Iron Ore
(
in
million)
    Oil and Gas
(
in
million)
    Others
(
in
million)
    Elimination
(
in
million)
    Total
( in
million)
    Total
(US dollars
in million)
 

Revenue

                      

Sales

     70,592       122,198       21,636       223,394       24,724       30,510       53,771       34,702       —         581,527       7,842  

Inter-segment sales

     —         —         —         426       282       170       —         23       (901     —         —    

Segment revenue

     70,592       122,198       21,636       223,820       25,006       30,680       53,771       34,725       (901     581,527       7,842  

Cost of Sales and expenses

     (72,054     (54,302     (14,610     (140,113     (18,907     (17,422     (29,223     (29,534     901       (375,264     (5,061

Segment profit / (loss)

     (1,462     67,896       7,026       83,707       6,099       13,258       24,548       5,191       —         206,263       2,781  

Depreciation and amortisation

     (728     (13,043     (2,411     (9,105     (2,878     (1,163     (9,532     (2,862     —         (41,722     (563

Other items*

     —         (1,342     —         —         —         —         (1,475     (459     —         (3,432     (46
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit / (loss)

     (2,190     53,511       4,615       74,602       3,221       12,095       13,541       1,870         161,109       2,172  

Investment and other income

                       11,753       159  

Finance and other costs

                       (23,751     (320
                    

 

 

   

 

 

 

Profit before tax

                       149,111       2,011  
                    

 

 

   

 

 

 

Assets and liabilities

                      

Assets

                      

Segment assets

     58,621       202,183       64,405       505,280       159,920       40,439       199,527       80,866       —         1,311,241       17,681  

Financial assets investments

                       1,765       24  

Deferred tax asset

                       67,713       913  

Short-term investments

                       262,158       3,535  

Cash and cash equivalents (including restricted cash and cash equivalents)

                       54,450       734  

Income tax asset

                       27,856       376  

Others

                       68,372       922  
                    

 

 

   

 

 

 

Total assets

                       1,793,555       24,185  
                    

 

 

   

 

 

 

Liabilities

                      

Segment liabilities

     41,749       39,636       11,963       160,785       16,874       18,411       137,896       19,018       —         446,332       6,019  

Borrowings

                       509,444       6,869  

Current tax liabilities

                       11,956       161  

Deferred tax liabilities

                       25,394       342  

Others

                       20,911       283  
                    

 

 

   

 

 

 

Total liabilities

                       1,014,037       13,674  
                    

 

 

   

 

 

 

 

*

Other items represent one time settlement of entry tax under amnesty scheme of  1,342 million ($ 18 million) at HZL, CWIP write off of  459 million ($ 6 million) at ESL, cost of exploration wells written off of  1,475 million ($20 million) and forex loss on MAT credit entitlements which has not been allocated to any segment of  156 million ($ 2 million).

 

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Disaggregation of Revenue

Below table summarises the disaggregated revenue from contracts with customers: —

For the six months ended September 30,

 

     2020      2021      2021  
     ( in
million)
     ( in
million)
     (US dollars in
million)
 

Oil

     27,430        45,516        614  

Gas

     1,874        7,341        99  

Zinc metal

     68,410        102,948        1,388  

Lead metal

     17,470        19,541        264  

Silver metal and bars

     18,769        20,849        281  

Iron ore

     5,981        12,087        163  

Metallurgical coke

     463        989        13  

Pig iron

     10,627        20,187        272  

Copper products

     39,804        67,230        907  

Aluminium products

     122,644        225,910        3,046  

Power

     19,945        18,155        245  

Steel products

     15,959        22,702        306  

Ferro alloys

     —          3,780        51  

Others

     8,727        14,656        198  
  

 

 

    

 

 

    

 

 

 

Revenue from contracts with customers

     358,103        581,891        7,847  

Revenue from contingent rents

     7,680        5,403        73  

Gains/ (losses) on provisionally priced contracts

     (876      (5,767      (78
  

 

 

    

 

 

    

 

 

 

Total Revenue

     364,907        581,527        7,842  
  

 

 

    

 

 

    

 

 

 

 

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6. Investment and other income

 

For the six months ended September 30,    2020      2021      2021  
     ( in
million)
     ( in
million)
     (US dollars
in million)
 

Fair value gain on financial assets at fair value through profit or loss (FVTPL)

     7,790        1,617        22  

Interest income:

        

Interest income on financial assets at fair value through profit or loss

     3,047        1,660        23  

Interest income on bank deposits at amortized cost

     2,212        3,244        44  

Interest income on loans and receivables at amortized cost

     1,859        5,269        71  

Others

     334        22        0  

Dividend income on investments held at FVOCI

     17        —          —    

Dividend income – financial assets at fair value through profit or loss

     12        15        0  

Foreign exchange gain/ (loss) net

     388        (74      (1
  

 

 

    

 

 

    

 

 

 
     15,659      11,753      159  
  

 

 

    

 

 

    

 

 

 

7. Finance and other costs

 

For the six months ended September 30,    2020      2021      2021  
     ( in
million)
     ( in
million)
     (US dollars
in million)
 

Interest expense on financial liabilities at amortised cost

     26,082        22,997        310  

Unwinding of discount on provisions

     344        370        5  

Net foreign exchange loss on borrowings and creditors for capital expenditure

     582        1,272        17  

Other finance costs

     1,098        526        7  

Net interest on defined benefit arrangements

     97        101        1  

Capitalisation of finance costs

     (1,979      (1,515      (20
  

 

 

    

 

 

    

 

 

 
     26,224      23,751      320  
  

 

 

    

 

 

    

 

 

 

 

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8. Income tax expense

The major components of income tax expense for the six months ended September 30, 2020 and 2021 are indicated below:

 

(a)

Tax charge/ (credit) recognised in the consolidated statement of Profit or loss

 

For the six months ended September 30,    2020     2021     2021  
     ( in
million)
    ( in
million)
    (US dollars
in million)
 

Current tax:

      

Current tax on profit for the period

Current tax special items

    

8,854

—  

 

 

   

28,026

(468

 

   

378

(6

 

  

 

 

   

 

 

   

 

 

 

Total current tax (a)

     8,854       27,558       372  
  

 

 

   

 

 

   

 

 

 

Deferred tax:

      

Origination of temporary differences*

     18,351       10,005       135  

Credit in respect of deferred tax for earlier years

     —         (60     (1
  

 

 

   

 

 

   

 

 

 

Total deferred tax charge/ (credit) (b)

     18,351       9,945       134  
  

 

 

   

 

 

   

 

 

 

Net tax expense/(credit) ((a)+(b))

     27,205       37,503       506  
  

 

 

   

 

 

   

 

 

 

Profit before tax

     56,888       149,111       2,011  

Effective income tax rate (%)

     47.8     25.2     25.2

 

*

During the previous year, consequent to the declaration of dividend (including from accumulated profits) by the subsidiaries, the unabsorbed depreciation as per tax laws have been utilized by the Company leading to a deferred tax charge of  12,831 million in the half year ended September 30, 2020.

 

(b)

The tax department had issued demands on account of remeasurement of certain tax incentives under section 80IA and 80 IC of the Incometax Act, 1961. During the year ended March 31, 2020, based on the favorable orders from Income Tax Appellate Tribunal relating to AY 09-10 to AY 12-13, the Commissioner of Income Tax (Appeals) has allowed these claims for AY 14-15 to AY 15-16, which were earlier disallowed and has granted refund of amounts deposited under protest. Against the Tribunal order, the department had filed an appeal in Hon’ble Rajasthan High Court in Financial Year 2017-18 which is yet to be admitted. As per the view of external legal counsel, the Department’s appeal seeks re-examination of facts rather than raising any substantial question of law and hence it is unlikely that appeal will be admitted by the High Court. Accordingly, there is high probability that the case will go in favour of the Company. The amount involved in this dispute is  112,710 million and  113,450 million ($ 1,530 million) as at March 31, 2021 and September 30, 2021 respectively, plus applicable interest upto the date of settlement of the dispute.

 

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9. Earnings per share (“EPS”)

The following reflects the income and share data used in the basic and diluted earnings per share computations:

Computation of weighted average number of shares

 

For the six months ended September 30,

   2020      2021  

Weighted average number of ordinary shares for basic earnings per share*

     3,703,288,875        3,705,598,026  

Effect of dilution:

     

Potential ordinary shares relating to share option awards

     20,486,599        23,312,891  
  

 

 

    

 

 

 

Adjusted weighted average number of ordinary shares for diluted earnings per share

     3,722,997,996        3,728,910,917  
  

 

 

    

 

 

 

Computation of basic and diluted earnings per share

Basic earnings per share:

 

For the six months ended September 30,    2020      2021      2021  
     ( in million
except EPS data)
     ( in million
except EPS data)
     (US dollars in
million except EPS
data)
 

Profit for the period attributable to equity holders of the parent

     16,589        89,029        1,201  

Weighted average number of ordinary shares for basic earnings per share*

     3,703,288,875        3,705,598,026        3,705,598,026  
  

 

 

    

 

 

    

 

 

 

Earnings per share

     4.48        24.03        0.32  
  

 

 

    

 

 

    

 

 

 

Diluted earnings per share:

 

For the six months ended September 30,    2020      2021      2021  
     ( in million
except EPS data)
     ( in million
except EPS data)
     (US dollars in
million except EPS
data)
 

Profit for the period attributable to equity holders of the parent

     16,589        89,029        1,201  

Adjusted weighted average number of ordinary shares for diluted earnings per share*

     3,722,997,996        3,728,910,916        3,728,910,917  
  

 

 

    

 

 

    

 

 

 

Earnings per share

     4.46        23.88        0.32  
  

 

 

    

 

 

    

 

 

 

 

*

After excluding the impact of treasury shares

 

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10. Restricted cash and cash equivalents

Restricted cash and cash equivalents consist of the following:

 

     As at,  
     March 31,
2021
     September 30,
2021
     September 30,
2021
 
     ( in
million)
     ( in
million)
     (US dollars
in million)
 

Cash at banks1

     1,025        6,669        90  
  

 

 

    

 

 

    

 

 

 
     1,025        6,669        90  
  

 

 

    

 

 

    

 

 

 

 

1 

Cash at banks is restricted in use as it relates to unpaid dividends of  1,006 million and  6,645 million ($ 90 million) as at March 31, 2021 and September 30, 2021 respectively. It also includes earmarked escrow amount of  19 million and  24 million ($ 0 million) as at March 31, 2021 and September 30, 2021 respectively, out of which  19 million and  19 million ($ 0 million) relates to unclaimed redeemable preference shares and Nil and  5 million ($ 0 million) relates to CSR unspent amount.

11. Cash and cash equivalents

Cash and cash equivalents consist of the following:

 

     As at,  
     March 31,
2021
     September 30,
2021
     September 30,
2021
 
     ( in
million)
     ( in
million)
     (US dollars
in million)
 

Cash at banks and in hand

     26,604        29,714        400  

Short-term deposits

     21,933        18,067        244  
  

 

 

    

 

 

    

 

 

 
     48,537        47,781        644  
  

 

 

    

 

 

    

 

 

 

Short-term deposits are made for periods of between one day and three months, depending on the immediate cash requirements of the respective companies, and earn interest at the respective short-term deposit rates.

12. Borrowings

Current borrowings consist of:

 

     As at,  
     March 31,
2021
     September 30,
2021
     September 30,
2021
 
     ( in
million)
     ( in
million)
     (US dollars
in million)
 

Banks and financial institutions

     36,086        32,437        437  

Current maturities of long-term borrowings

     153,514        104,197        1,405  
  

 

 

    

 

 

    

 

 

 

Current borrowings (A)

     189,600        136,634        1,842  
  

 

 

    

 

 

    

 

 

 

 

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Non-current borrowings consist of:

 

     As at,  
     March 31,
2021
     September 30,
2021
     September 30,
2021
 
     ( in
million)
     ( in
million)
     (US dollars
in million)
 

Banks and financial institutions

     359,164        386,473        5,211  

Non-convertible debentures

     165,923        83,959        1,132  

Redeemable preference shares

     19        19        0  

Non-convertible bonds

     1,565        476        7  

Others

     6,465        6,080        82  
  

 

 

    

 

 

    

 

 

 

Non-current borrowings

     533,136        477,007        6,432  

Less: Current maturities of long-term borrowings

     (153,514      (104,197      (1,405
  

 

 

    

 

 

    

 

 

 

Non-current borrowings, net of current maturities (B)

     379,622        372,810        5,027  

Debt securities issued / repaid during the period:

In October 2016, Vedanta Ltd issued Non-convertible debentures (“NCDs”) of  5,000 million ($ 67 million) at an interest rate of 8.75%. These NCDs were secured by way of first ranking pari passu charge on movable fixed assets in relation to the Lanjigarh Refinery Expansion Project (having capacity beyond 2 MTPA and upto 6 MTPA) situated at Lanjigarh, Orissa. Of the above, the NCDs of  2,500 million ($ 34 million) were repaid in April 2021 and the balance in September 2021.

In April 2018, Vedanta Ltd issued NCDs of  40,000 million ($ 539 million) at an interest rate of 8.50%. These NCDs were secured by a first pari—passu charge on the whole of the present and future of the movable fixed assets of 2400 MW (600 MW*4) power plant of Vedanta Limited at Jharsuguda location. The NCDs are fully repaid in June 2021. Of the above, the NCDs of  23,500 million ($ 317 million) were repaid in April 2021 and the balance in June 2021.

In July 2018, Vedanta Ltd issued NCDs of  10,000 million ($ 135 million) at an interest rate of 9.18%. These NCDs were secured by a first pari—passu charge on the whole of the present and future of the movable fixed assets of 2400 MW (600 MW*4) Power Plant of Vedanta Limited at Jharsuguda location, as may be identified and notified by the issuer to the security trustee from time to time, with minimum asset coverage of 1 time of the aggregate face value of debentures outstanding at any point of time. The NCDs were fully repaid in July 2021.

In July 2018, TSPL issued NCDs of  10,000 million ($ 135 million) at an interest rate of 9.27%. These NCDs were secured by first pari passu charge on movable and/or immovable fixed assets of TSPL with a minimum asset cover of 1 time during the tenure of NCD. The NCDs were fully repaid in July 2021.

In April 2018, TSPL issued NCDs of 10,000 million ($ 135 million) at an interest rate of 8.55%. These NCDs were secured by first pari passu charge on movable and/or immovable fixed assets of TSPL with a minimum asset cover of 1 time during the tenure of NCD. The NCDs were fully repaid in April 2021.

In September 2020, HZL issued unsecured NCDs of  35,200 million ($ 475 million) at an interest rate of 5.35%. 20% of these ( 7,040 million) were due for repayment in September 2021 and were repaid accordingly. As at September 30, 2021, the carrying value of remaining NCDs is  28,160 million ($ 380 million).

 

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In September 2010, Avanstrate Inc issued unsecured bonds of  4,120 million (JPY 6,696 million) at an average interest rate of 0.28%. The bonds were fair valued at the time of acquisition and are due for repayment over 10 years starting from October 2023 to October 2032. During the period ended September 30, 2021, bonds having carrying value of  1,130 million (JPY 1,686 million) ($15 million) have been bought back. As at September 30, 2021, the carrying value (net of fair valuation) of remaining bonds is  480 million (JPY 716 million) ($ 6 million).

During the period ended September 30, 2021, the Group has issued and repaid other debt securities of  103,384 million ($ 1,394 million) and  79,084 million ($ 1,066 million), respectively.

 

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Table of Contents

13. Financial instruments

A. Financial assets and liabilities:

The following tables present the carrying value and fair value of each category of financial assets and liabilities as at March 31, 2021 and September 30, 2021.

 

As at March 31, 2021:                                         
     ( in million)  

Financial assets

   Fair value
through
profit or
loss
    Fair value
through
other
comprehensive
income
     Derivatives
designated
as hedging
instruments
     Amortised
cost
     Total
carrying
value
     Total fair
value
 

Financial assets Investments

                

—at fair value

     500       1,032        —          —          1,532        1,532  

Other non-current assets

     —         —          —          107,515        107,515        112,534  

Trade and other receivable

     1,633     —          —          95,930        97,563        97,711  

Short term investments

                

—Bank deposits

     —         —          —          116,730        116,730        116,730  

—Other investments

     165,044       —          —          —          165,044        165,044  

Financial instruments (derivatives)

     129       —          572        —          701        701  

Cash and cash equivalents

     —         —          —          48,537        48,537        48,537  

Restricted cash and cash equivalents

     —         —          —          1,025        1,025        1,025  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     167,306       1,032        572        369,737        538,647        543,814  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

*

Under IFRS 9, provisionally priced receivables are fair valued at each reporting date.

 

As at March 31, 2021:                                        
     ( in million)  

Financial liabilities

   Fair value
through
profit or
loss
    Derivatives
designated
as hedging
instrument
     Amortised
cost
    Others*      Total
carrying
value
     Total fair
value
 

Borrowings

     —         —          569,222       —          569,222        565,941  

Acceptances

     —         —          83,711       —          83,711        83,711  

Trade and other payables

     7,066 **      —          215,546 ***      2,633        225,245        225,245  

Financial instruments (derivatives)

     933       2,618        —         —          3,551        3,551  
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

     7,999       2,618        868,479       2,633        881,729        878,448  
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

*

Includes put option liability accounted for at fair value

**

Under IFRS 9, provisionally priced payables are fair valued at each reporting date.

***

Includes lease liability of  6,411 million.

 

F-27


Table of Contents

As at September 30, 2021:

 

     ( in million)      (US dollars in million)  

Financial assets

   Fair
value
through
profit or
loss
    Fair value
through
other
comprehensive
income
     Derivatives
designated
as hedging
instruments
     Amortised
cost
     Total
carrying
value
     Total fair
value
     Total
carrying
value
     Total fair
value
 

Financial assets Investments

                      

—at fair value

     295       1,470        —          —          1,765        1,765        24        24  

Other non—current assets

     —         —          —          91,425        91,425        96,444        1,233        1,300  

Trade and other receivable

     1,792     —          —          123,546        125,338        125,486        1,690        1,692  

Short term investments

                      

—Bank deposits

     —         —          —          85,291        85,291        85,291        1,150        1,150  

—Other investments

     176,867       —          —          —          176,867        176,867        2,385        2,385  

Financial instruments (derivatives)

     151       —          886        —          1,036        1,036        14        14  

Cash and cash equivalents

     —         —          —          47,781        47,781        47,781        644        644  

Restricted cash and cash equivalents

     —         —          —          6,669        6,669        6,669        90        90  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     179,105       1,470        886        354,712        536,172        541,339        7,230        7,299  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

*

Under IFRS 9, provisionally priced receivables are fair valued at each reporting date.

As at September 30, 2021:

 

     ( in million)      (US dollars in million)  
Financial liabilities    Fair value
through
profit or
loss
    Derivatives
designated
as hedging
instrument
     Amortised
cost
    Others*      Total
carrying
value
     Total fair
value
     Total
carrying
value
     Total fair
value
 

Borrowings

     —         —          509,444       —          509,444        509,827        6,870        6,875  

Acceptances

     —         —          87,006       —          87,006        87,006        1,173        1,173  

Trade and other payables

     4,497 **      —          243,294 ***      2,540        250,331        250,331        3,376        3,376  

Financial instruments (derivatives)

     1,181       2,665        —         —          3,846        3,846        52        52  
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     5,678       2,665        839,744       2,540        850,627        851,010        11,471        11,476  
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

*

Includes put option liability accounted for at fair value

**

Under IFRS 9, provisionally priced payables are fair valued at each reporting date.

***

Includes lease liability of  5,298 million ($71 million).

Fair value hierarchy

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

 

   

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

 

   

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

 

   

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

 

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Table of Contents

The below table summarizes the categories of financial assets and liabilities as at March 31, 2021 and September 30, 2021 measured at fair value:

 

As at March 31, 2021    (Level 1)      (Level 2)      (Level 3)  
     ( in million)  

Financial assets

        

At fair value through profit or loss

        

— Investments

     63,183        101,861        500  

— Derivatives financial assets

     —          129        —    

— Trade and other receivables

     —          1,633        —    

At fair value through other comprehensive income

        

— Financial asset investments held at fair value

     925        —          107  

Derivatives designated as hedging instruments

        

— Derivatives financial assets

     —          572        —    
  

 

 

    

 

 

    

 

 

 
     64,108        104,195        607  
  

 

 

    

 

 

    

 

 

 

Financial liabilities

        

At fair value through profit or loss

        

—Derivatives financial liabilities

     —          933        —    

Trade payable

     —          7,066        —    

Derivatives designated as hedging instruments

        

—Derivatives financial liabilities

     —          2,618        —    

Trade and other payables- Put option liability with non-controlling interest

     —          —          2,633  
  

 

 

    

 

 

    

 

 

 
     —          10,617        2,633  
  

 

 

    

 

 

    

 

 

 

 

As at September 30, 2021    (Level 1)      (Level 2)      (Level 3)     (Level 1)      (Level 2)      (Level 3)  
     ( in million)     (US dollars in million)  

Financial assets

                

At fair value through profit or loss

                

— Investments

     107,450        69,416        295       1,449        936        4  

— Derivatives financial assets

     —          151        —         —          2        —    

— Trade and other receivables

     —          1,792        —         —          24     

At fair value through other comprehensive income

             —          —          —    

— Financial asset investments held at fair value

     1,364        —          (188     18        —          (3

Derivatives designated as hedging instruments

             —          —          —    

— Derivatives financial assets

     —          886        —         —          12        —    
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 
     108,814      72,245      107     1,467      974      1  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Financial liabilities

                

At fair value through profit or loss

                

—Derivatives financial liabilities

     —          1,181        —         —          16        —    

Trade payable

     —          4,497        —         —          61        —    

Derivatives designated as hedging instruments

                

—Derivatives financial liabilities

     —          2,665        —         —          36        —    

Trade and other payables- Put option liability with non-controlling interest

     —          —          2,540       —          —          34  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 
     —        8,343      2,540     —        113      34  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

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The below table summarizes the fair value of borrowings which are carried at amortised cost as at March 31, 2021 and September 30, 2021:

 

As at March 31, 2021    (Level 2)  
     ( in million)  

Financial Liabilities

  

—Borrowings

     565,941  
  

 

 

 
     565,941  
  

 

 

 

 

As at September 30, 2021    (Level 2)      (Level 2)  
     ( in million)      US dollars in million  

Financial Liabilities

     

—Borrowings

     509,827        6,875  
  

 

 

    

 

 

 
     509,827        6,875  
  

 

 

    

 

 

 

The fair value of the financial assets and liabilities are at the amount that would be received to sell an asset and paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values:

 

   

Investments traded in active markets are determined by reference to quotes from the financial institutions; for example: Net asset value (NAV) for investments in mutual funds declared by mutual fund house. For other listed securities traded in markets which are not active, the quoted price is used wherever the pricing mechanism is same as for other marketable securities traded in active markets. Other current investments and structured investments are valued by referring to market inputs including quotes, trades, poll, primary issuances for securities and /or underlying securities issued by the same or similar issuer for similar maturities and movement in benchmark security, etc.

 

   

Financial assets forming part of Trade and other receivables, cash and cash equivalents (including restricted cash and cash equivalents), bank deposits, financial liabilities forming part of trade and other payables, acceptances and short-term borrowings being carried at amortised cost: Approximate their carrying amounts largely due to the short-term maturities of these instruments.

 

   

Non-current fixed-rate and variable-rate borrowings: Fair value has been determined by the Group based on parameters such as interest rates, specific country risk factors, and the risk characteristics of the financed project.

 

   

Quoted financial asset investments: Fair value is derived from quoted market prices in active markets.

 

   

Unquoted financial asset investments: Fair value of unquoted securities are determined by reference to discounted cash flows model.

 

   

Derivative financial assets/liabilities: The Group enters into derivative financial instruments with various counterparties. Interest rate swaps, foreign exchange forward contracts and commodity forward contracts are valued using valuation techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques by the Group include forward pricing and swap models, using present value calculations. The models incorporate various inputs including the foreign exchange spot and forward rates, yield curves of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rate curves of the underlying commodity. Commodity contracts are valued using the forward LME rates of commodities actively traded on the listed metal exchange, i.e., London Metal Exchange, United Kingdom (UK).

 

   

Other non-current financial assets and financial liabilities: Fair value is calculated using a discounted cash flow model with market assumptions, unless the carrying value is considered to approximate to fair value.

For all other financial instruments, the carrying amount is either the fair value, or approximates the fair value.

The changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationship and the value of other financial instruments recognised at fair value.

The estimated fair value amounts as at March 31, 2020 and September 30, 2021 have been measured as at that date. As such, the fair values of these financial instruments subsequent to reporting date may be different than the amounts reported at each period-end.

There were no significant transfers between level 1, level 2 and level 3.

 

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14. Shareholders’ equity

 

     As at
March 31, 2021
(in Million)
     As at
March 31, 2021
(
Million)
     As at
September 30,
2021
(in Million)
     As at
September 30,
2021
(
Million)
     As at
September 30,
2021
(US dollars
in million)
 

Authorised Share Capital:

              

Opening and closing balance (equity shares of  1 each with voting rights) a

     44,020        44,020        44,020        44,020        594  

Authorised preference share capital:

              

Opening and closing balance (preference shares of 10 each)

     3,010        30,100        3,010        30,100        406  

Issued, subscribed and paid up

              

Equity shares of 1 each with voting right a,b,c,d

     3,718        3,718        3,718        3,718        50  

 

a)

The Company has one class of equity shares having a par value of  1 per share. Each shareholder is eligible for one vote per share held and dividend as and when declared by the Company.

b)

This includes 160,903,244 equity shares in the form of 40,225,811 American Depository Shares (ADS) and 160,704,800 equity shares in the form of 40,176,200 ADS as at March 31, 2021 and September 30, 2021, respectively.

c)

Includes 308,232 equity shares as at March 31, 2021 and 308,232 equity shares as at September 30, 2021 kept in abeyance. These shares are not part of listed equity capital and pending allotment as they are sub-judice.

d)

Includes 12,193,159 equity shares as at March 31, 2021 and 118,65,142 equity shares as at September 30, 2021 held by Vedanta Limited ESOS Trust.

Securities premium

Securities premium is created to record amounts received in excess of the par value of shares in separate account as required by the Indian Companies Act. The securities premium may be applied by the Company towards the issue of unissued shares of the Company to the members of the Company as fully paid bonus shares, writing off the preliminary expenses of the Company, writing off the expenses of, or the commission paid or discount allowed on any issue of shares or debentures of the Company, providing for the premium payable on the redemption of any redeemable preference shares or of any debentures of the Company; or for the purchase of its own shares or other securities.

Retained earnings includes amongst others, general reserve, debenture redemption reserve, capital reserve and preference share redemption reserve.

General reserve

Under the erstwhile Indian Companies Act, 1956, a general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10.0% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act, 2013, the requirement to mandatory transfer a specified percentage of the net profit to general reserve has been withdrawn. The balances in general reserves, as determined in accordance with applicable regulations, was  160,950 million and  160,950 million ($ 2,170 million) as at March 31, 2021 and September 30, 2021 respectively.

 

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Debenture redemption reserve

As per the earlier provision under the Indian Companies Act, companies that issue debentures were required to create debenture redemption reserve from annual profits until such debentures are redeemed. Companies are required to maintain 25% as a reserve of outstanding redeemable debentures. The amounts credited to the debenture redemption reserve may not be utilized except to redeem debentures. The Ministry of Corporate Affairs (‘MCA’) vide its Notification dated August 16, 2019, had amended the Companies (Share Capital and Debenture) Rules, 2014, wherein the requirement of creation of Debenture Redemption Reserve has been exempted for certain class of companies. Accordingly, Vedanta Limited is not required to create Debenture Redemption Reserve. Retained earnings include  5,835 million and  Nil ($ Nil) of debenture redemption reserve as at March 31, 2021 and September 30, 2021 respectively.

Preference share redemption reserve

The Indian Companies Act provides that companies that issue preference shares may redeem those shares from profits of the Company which otherwise would be available for dividends, or from proceeds of a new issue of shares made for the purpose of redemption of the preference shares. If there is a premium payable on redemption, the premium must be provided, either by reducing the additional paid in capital (securities premium) or out of profits, before the shares are redeemed.

If profits are used to redeem preference shares, the value of the nominal amount of shares redeemed should be transferred from profits (retained earnings) to the preference share redemption reserve account. This amount should then be utilised for the purpose of redemption of redeemable preference shares. This reserve can be used to issue fully paid-up bonus shares to the shareholders of Vedanta Limited. Retained earnings include  30,869 million and  30,869 million ($ 416 million) of preference share redemption reserve as at March 31, 2021 and September 30, 2021 respectively.

Capital reserve

The balance in capital reserve as at March 31, 2021 and September 30, 2021 is  182,697 million and  183,488 million ($ 2,474 million) respectively. The balance in capital reserve has mainly arisen pursuant to extinguishment of non-controlling interests of erstwhile Cairn India Limited and acquisition of ASI. Further, changes in capital reserve are due to recognition/derecognition of put option liability and non-controlling interests pertaining to ASI.

 

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15. Commitments, contingencies, and guarantees

In the normal course of business, the Group enters into certain capital commitments and also gives certain financial guarantees.

A. Capital commitments

The Group has a number of continuing operational and financial commitments in the normal course of business including:

 

   

Exploratory mining commitments;

 

   

Oil and gas commitments;

 

   

Mining commitments arising under production sharing agreements; and

 

   

Completion of the construction of certain assets.

Estimated amount of contracts remaining to be executed on capital accounts and not provided for:

 

     As at,  
     March 31,
2021
     September 30,
2021
     September 30,
2021
 
     ( in million)      ( in million)      (US dollars
in million)
 

Oil & Gas sector

        

Cairn India

     15,547        24,888        336  
  

 

 

    

 

 

    

 

 

 

Aluminium sector

        

Lanjigarh Refinery (Phase II)

     11,877        39,825        537  

Jharsuguda 1.25 MTPA smelter

     4,630        7,170        97  
  

 

 

    

 

 

    

 

 

 

Zinc sector

        

Zinc India (mines expansion, solar and smelter)

     3,625        4,833        65  

Gamsberg mining and milling project

     938        931        13  
  

 

 

    

 

 

    

 

 

 

Copper sector

        

Tuticorin Smelter 400 KTPA*

     29,951        30,152        407  
  

 

 

    

 

 

    

 

 

 

Others

     18,722        40,867        551  
  

 

 

    

 

 

    

 

 

 

Total

     85,290        148,666        2,006  
  

 

 

    

 

 

    

 

 

 

 

*

currently contracts are under suspension under the force majeure clause as per the contract

Committed work programme (Other than capital commitment):

 

     As at,  
     March 31,
2021
     September 30,
2021
     September 30,
2021
 
     ( in million)      ( in million)      (US dollars
in million)
 

Oil & Gas sector

        

Cairn India (OALP - Oil and Gas blocks)

     56,254        55,787        752  
  

 

 

    

 

 

    

 

 

 

 

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Other Commitments

 

  (i)

Power Division of the Company has signed a long term power purchase agreement (PPA) with Gridco Limited for supply of 25% of power generated from the power station with additional right to purchase power at (5%/7%) at variable cost as per the conditions referred to in PPA. The PPA has a tenure of twenty-five years expiring in FY 2037. However, the Company has received an order from OERC dated October 05, 2021 for conversion of Independent Power Plant to Captive Power Plant w.e.f. from January 01, 2022 subject to certain terms and conditions.

 

  (ii)

TSPL has signed a long term PPA with the Punjab State Power Corporation Limited (PSPCL) [formerly known as Punjab State Electricity Board (PSEB)] for supply of power generated from the power plant. The PPA has tenure of twenty five years, expiring in FY 2042.

B. Guarantees

The aggregate amount of indemnities and other guarantees on which the Group does not expect any material losses, was  62,810 million and  72,710 million ($ 980 million) as at March 31, 2021 and September 30, 2021 respectively.

The Group has given guarantees in the normal course of business as stated below:

 

   

Guarantees and bonds advanced to the customs authorities in India of  6,477 million and  6,107 million ($ 82 million) as at March 31, 2021 and September 30, 2021 respectively relating to the export and payment of import duties on purchases of raw material and capital goods.

 

   

Guarantees issued for Group’s share of minimum work programme commitments of  28,888 million and  29,001 million ($ 391 million) as at March 31, 2021 and September 30, 2021 respectively.

 

   

Guarantees of  794 million and  259 million ($ 3 million) issued under bid bond for placing bids as at March 31, 2021 and September 30, 2021 respectively.

 

   

Bank guarantees of  1,150 million and  1,150 million ($ 16 million) outstanding as at March 31, 2021 and September 30, 2021 respectively has been provided by the Group on behalf of Volcan Investments Limited to Income tax department, India as a collateral in respect of certain tax disputes.

 

   

Other guarantees of  25,501 million and  36,194, million ($ 488 million) as at March 31, 2021 and September 30, 2021 respectively issued for securing supplies of materials and services, in lieu of advances received from customers, litigation, for provisional valuation of custom duty and also to various agencies, suppliers and government authorities for various purposes. The Group does not anticipate any liability on these guarantees.

C. Export Obligations

The Indian entities of the Group have export obligations of  21,653 million and  15,856 million ($ 214 million) as at March 31, 2021 and September 30, 2021 respectively on account of concessional rates of import duty paid on capital goods under the Export Promotion Capital Goods Scheme and under the Advance License Scheme for the import of raw material laid down by the Government of India.

In the event of the Group’s inability to meet its obligations, the Group’s liability would be  3,534 million and  2,693 million ($ 36 million) as at March 31, 2021 and September 30, 2021 respectively, plus applicable interest.

The Group has given bonds of  17,750 million and  17,370 million ($ 234 million) as at March 31, 2021 and September 30, 2021 respectively to custom authorities against these export obligations.

 

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D. Contingencies

The Group discloses the following legal and tax cases as contingent liabilities.

Hindustan Zinc Limited: Department of Mines and Geology

The Department of Mines and Geology of the State of Rajasthan issued several show cause notices to HZL in August, September and October 2006, aggregating  3,339 million and  3,339 million ($ 45 million) as at March 31, 2021 and September 30, 2021 claiming unlawful occupation and unauthorised mining of associated minerals other than zinc and lead at HZL’s Rampura Agucha, Rajpura Dariba and Zawar mines in Rajasthan during the period from July 1968 to March 2006. In response, HZL filed a writ petition against these show cause notices before the High Court of Rajasthan in Jodhpur. In October 2006, the High Court issued an order granting a stay and restrained the Department of Mines and Geology from undertaking any coercive measures to recover the penalty. In January 2007, the High Court issued another order granting the Department of Mines and Geology additional time to file their reply and also ordered the Department of Mines and Geology not to issue any orders cancelling the lease. The State Government filed for an early hearing application in the High Court. The High Court has passed an order rejecting the application stating that Central Government should file their replies. HZL believes it is unlikely that the claim will lead to a future obligation and thus no provision has been made in these financial statements.

Vedanta Limited: Income tax

In 2015, the income tax department issued a notice to erstwhile Cairn India Limited (subsequently merged with Vedanta Limited) for  204,947 million ($ 2,764 million) (including interest of  102,473 million ($ 1,382 million)) holding the Company as ‘assessee in default’ as per Section 201 of Income-tax Act, 1961 pertaining to retrospective taxation for sale of shares in Cairn India Limited by Cairn Energy Plc, UK and its affiliate Cairn UK Holdings Limited (“CUHL”). The Group has challenged this demand which is currently sub-judice in various forums.

Separately, CUHL, on whom the primary liability of income tax lies, received an order from the ITAT affirming a demand of  102,473 million ($ 1,382 million) but reducing the interest portion. Against this demand, the Tax authorities have recovered  58,680 million ($ 791 million) from the CUHL, reducing the liability to  43,840 million ($ 591 million).

In August 2021, the Indian Government has amended the law to scrap such retrospective taxes, subject to complying certain terms and conditions, which the Group is currently in process of complying. Accordingly, the Group believes that it has strong merits and the likelihood of any financial outflow on this account is expected to be remote.

Ravva Joint Venture arbitration proceedings

ONGC Carry

The Ravva Production Sharing Contract (PSC) obliges the contractor parties to pay a proportionate share of ONGC’s exploration, development, production and contract costs in consideration for ONGC’s payment of costs related to the construction and other activities it conducted in Ravva prior to the effective date of the Ravva PSC (the ONGC Carry). The question as to how the ONGC Carry is to be recovered and calculated, along with other issues, was submitted to an International Arbitration Tribunal in August 2002 which rendered a decision on the ONGC Carry in favour of the contractor parties (including Vedanta Limited) whereas four other issues were decided in favour of Government of India (GOI) in October 2004 (Partial Award). The GOI then proceeded to challenge the ONGC Carry decision before the Malaysian courts, as Kuala Lumpur was the seat of the arbitration. The Federal Court of Malaysia upheld the Partial Award. As the Partial Award did not quantify the sums, therefore, contractor parties approached the same Arbitration Tribunal to pass a Final Award in the subject matter since it had retained the jurisdiction to do so. The Arbitral Tribunal was reconstituted, and the Final Award was passed in October 2016 in Vedanta Limited’s favour. GOI’s challenge of the Final Award has been dismissed by the Malaysian High Court and the next appellate court in Malaysia, i.e., Malaysian Court of Appeal. GOI then filed an appeal at Federal Court of Malaysia. The matter was heard on February 28, 2019 and the Federal Court dismissed GOI’s leave to appeal. The Company has also filed for the enforcement of the Partial Award and Final Award before the Hon’ble Delhi High Court. The matter has been listed for hearing on December 14, 2021.

Base Development Cost

Ravva joint operations had received a claim from the Ministry of Petroleum and Natural Gas, Government of India (GOI) for the period from 2000-2005 for  9,573 million ($ 129 million) for an alleged underpayment of profit petroleum (by recovering higher Base Development Costs (“BDC”) against the cap imposed in the PSC) to the Government of India (GOI), out of which, Vedanta Limited’s share will be  2,152 million ($ 29 million) plus interest. Joint venture partners initiated the arbitration proceedings and Arbitration Tribunal published the Award in January 2011 allowing claimants (including Vedanta Limited) to recover the development costs spent to the tune of  20,482 million ($ 276 million) and disallowed over run of  1,633 million ($ 22 million) spent in respect of BDC along with 50% legal costs.

 

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The Company filed for the enforcement of the said Award before the Hon’ble Delhi High Court. The Hon’ble Court vide its order dated February 19, 2020 allowed the petition for enforcement of the arbitration award against which the GOI filed an SLP before the Hon’ble Supreme Court of India. The Hon’ble Court on September 16, 2020 pronounced the order in favor of Vedanta, rejecting all objections of the GOI and allowed enforcement of the Arbitration Award. With the Supreme Court order, this matter stands closed.

In connection with the above two matters, the Company has received an order dated October 22, 2018 from the GOI directing oil marketing companies (OMCs) who are the offtakers of Ravva Crude to divert the sale proceeds to Government’s account. GOI alleges that the Ravva Joint Operations (consisting of four joint venture partners) has short paid profit petroleum of  23,286 million ($ 314 million) (the Company’s share approximately  6,987 million ($ 93 million)) on account of the two disputed issues of ONGC Carry and BDC matters, out of which  4,746 million ($ 64 million) pertains to ONGC Carry and  2,151 million ($ 29 million) pertains to BDC Matter. Against an interim application, filed by Vedanta Limited along with one of its joint venture partner, seeking stay of such action from GOI, before the Delhi High Court, where enforcement petitions for both matters were then pending, the Court directed the OMCs to deposit above sums to the Delhi High Court for both BDC and ONGC Carry matters. However, Vedanta Limited (and other joint venture partner) has been given the liberty to seek withdrawal of the amounts from the Court upon furnishing a bank guarantee of commensurate value. On the basis of the above direction, the customers have deposited  6,976 million ($ 94 million) out of which  6,234 million ($ 84 million) has been withdrawn post submission of bank guarantee.

The Hon’ble Delhi High Court vide its order dated May 28, 2020 read with order dated June 4, 2020 has directed that all future sale proceeds of Ravva Crude w.e.f. June 5, 2020 be paid directly to Vedanta Limited by the OMCs. In view of the closure of the BDC matter, the Company has also filed an application in HC on September 22, 2020 seeking refund of remaining  668 million (US$ 9 million) and release of bank guarantees submitted in Court regarding ONGC carry matter.

During the proceedings of the above matter, the GOI has also filed an interim application seeking deposit by the said OMCs of an amount of  6,382 million ($ 86 million) (Vedanta’s share of  4,156 million ($ 56 million) towards interest on the alleged short payment of profit petroleum by the petitioners, i.e., Vedanta Limited (and other joint venture partner).

The matter has been listed for hearing on December 14, 2021 along with ONGC carry case. While the Company does not believe the GOI will be successful in its challenge, if the Arbitral Awards in above matter is reversed and such reversal is binding, the Company would be liable for approximately  4,691 million plus interest and  4,749 million ($ 64 million) plus interest as at March 31, 2021 and September 30, 2021 respectively.

Proceedings related to the Imposition of Entry Tax

Vedanta Limited and other Group companies, i.e., Bharat Aluminium Company Limited (BALCO) and Hindustan Zinc Limited (HZL) challenged the constitutional validity of the local statutes and related notifications in the states of Chhattisgarh, Odisha and Rajasthan pertaining to the levy of entry tax on the entry of goods brought into the respective states from outside.

Post some contradictory orders of High Courts across India adjudicating on similar challenges, the Supreme Court referred the matters to a nine-judge bench. Post a detailed hearing, although the bench rejected the compensatory nature of tax as a ground of challenge, it maintained status quo with respect to all other issues which have been left open for adjudication by regular benches hearing the matters.

Following the order of the nine-judge bench, the regular bench of the Supreme Court proceeded with hearing the matters. The regular bench remanded the entry tax matters relating to the issue of discrimination against domestic goods bought from other States to the respective High Courts for final determination but retained the issue of jurisdiction for levy on imported goods, for determination by the regular bench of the Supreme Court. Following the order of the Supreme Court, the Group filed writ petitions in respective High Courts.

On October 09, 2017, the Supreme Court has held that states have the jurisdiction to levy entry tax on imported goods. With this Supreme Court judgment, imported goods will rank pari passu with domestic goods for the purpose of levy of Entry tax. Vedanta Limited and its subsidiaries have amended their appeals (writ petitions) in Odisha and Chhattisgarh to include imported goods as well. With respect to Rajasthan, the State Government has filed a counter petition in the Rajasthan High Court, whereby it has admitted that it does not intend to levy the entry tax on imported goods.

The issue pertaining to the levy of entry tax on the movement of goods into a Special Economic Zone (SEZ) remains pending before the Odisha High Court. The Group has challenged the levy of entry tax on any movement of goods into SEZ based on the definition of ‘local area’ under the Odisha Entry Tax Act which is very clear and does not include a SEZ. In addition, the Government of Odisha further through its SEZ Policy 2015 and the operational guidelines for administration of this policy dated August 22, 2016, exempted the entry tax levy on SEZ operations.

 

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During the current period, HZL has, under an Amnesty Scheme, settled the entry tax matter by making a payment of  1,342 million ($ 18 million) against total claims of  2,000 million ($ 27 million).

The total claims against Vedanta Limited and its subsidiaries are  14,119 million and  12,344 million ($ 166 million) net of provisions made as at March 31, 2021 and September 30, 2021 respectively.

BALCO: Challenge against imposition of Energy Development Cess

BALCO challenged the imposition of Energy Development Cess levied on generators and distributors of electrical energy at the rate of 10 paise per unit on the electrical energy sold or supplied before the High Court on the grounds that the Cess is effectively on production and not on consumption or sale since the figures of consumption are not taken into account and the Cess is discriminatory since captive power plants are required to pay at the rate of 10 paise while the State Electricity Board is required to pay at the rate of 5 paise. The High Court of Chhattisgarh by its order dated December 15, 2006 declared the provisions imposing ED Cess on CPPs as discriminatory and therefore ultra vires the Constitution. BALCO sought a refund of the Cess amounting to  345 million ($ 5 million) it had already paid till March 2006 under protest.

The State of Chhattisgarh filed a Special Leave Petition before the Supreme Court and the SC whilst issuing notice has stayed the refund of the Cess already deposited and the Supreme Court has also directed the State of Chhattisgarh to raise the bills but no coercive action be taken for recovery of the same. In case the Supreme Court overturns the decision of the High Court, BALCO would be liable to pay an additional amount of  9,304 million and  9,750 million ($ 131 million) as at March 31, 2021 and September 30, 2021 respectively. Accordingly, the total liability on the Group would be  9,650 million and  10,090 million ($ 136 million) as at March 31, 2021 and September 30, 2021 respectively.

BALCO: Electricity Duty

The Group operates a 1,200 MW power plant (“the Plant”) which commenced production in July 2015. Based on the Memorandum of Understanding signed between the Group and the Chhattisgarh State Government, the management believes that the Plant is covered under the Chhattisgarh Industrial policy 2004-09 which provides exemption of electricity duty for 15 years. In the period ended September 30, 2021, the Chief Electrical Inspectorate, Raipur (“CIE”) issued a demand notice for electricity duty and interest thereon of  8,880 million ($ 120 million) and  5,880 million ($ 79 million) respectively for the period March 2015 to March 2021.

The Group carries an accrual for electricity duty of  8,780 million and  8,936 million ($ 120 million) as at March 31, 2021 and September 30, 2021 respectively. The Company has requested the CIE to allow payment of the principal amount over a period of 5 years along with a waiver of interest demand. As at September 30, 2021, an amount of  6,210 million ($ 84 million) relating to interest has been considered as a contingent liability.

Miscellaneous disputes- Income tax

The Group is involved in various tax disputes amounting to  19,442 million and  19,769 million ($ 267 million) as at March 31, 2021 and September 30, 2021 respectively relating to income tax. It also includes similar matters where initial assessment is pending for subsequent periods and where the Group has made claims and assessments are in progress. These mainly relate to the disallowances of tax holidays and depreciation under the Income-tax Act, 1961 and interest thereon which are pending at various appellate levels. Penalty, if any would be additional. Refer note 8(b) for other income tax disputes.

Based on detailed evaluations, supported by external legal advice where necessary, the Group believes that it has strong merits and no material adverse impact is expected.

Miscellaneous other disputes

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

The approximate value of claims (excluding the items as set out separately above) against the Group companies total  47,820 million and  45,999 million ($ 704 million) as at March 31, 2021 and September 30, 2021 respectively.

 

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The Group considers that it can take steps such that the risks can be mitigated and that there will no significant unprovided liabilities arising.

Except as described above, there are no pending litigations which the Group believes could reasonably be expected to have a material adverse effect on the results of operations, cash flows or the financial position of the Group.

16. Related party transactions

Ultimate controlling party

Vedanta Limited is a majority-owned and controlled subsidiary of Vedanta Resources Limited (‘VRL’). Volcan Investments Limited (‘Volcan’) and its wholly owned subsidiary together hold 100 % of the share capital and 100 % of the voting rights of VRL. Volcan is 100 % beneficially owned and controlled by the Anil Agarwal Discretionary Trust (‘Trust’).

List of related parties and relationships

The Group carries out transactions in the normal course of business with its related parties, including its parent Vedanta Resources Limited (VRL), and the companies over which it has significant influence. A summary of significant related party transactions for the six months ended September 30, 2020 and 2021 and closing balances as at March 31, 2021 and September 30, 2021 are noted below.

The significant transactions relate to the normal sale and purchase of goods and loans and investments. All inter-company transactions and balances are eliminated on consolidation.

List of related parties and relationships –

 

A)

Entities Controlling the Company (Holding Companies)

 

   

Volcan Investments Limited (‘Volcan’)

 

   

Volcan Investments Cyprus Limited

Intermediate Holding Companies

 

   

Vedanta Resources Limited (VRL)

 

   

Vedanta Resources Holdings Limited #

 

   

Twin Star Holdings Limited #

 

   

Finsider International Company Limited #

 

   

Westglobe Limited #

 

   

Welter Trading Limited #

 

   

Richter Holdings Limited #

 

   

Vedanta Resources Finance Limited #

 

   

Vedanta Resources Cyprus Limited #

 

   

Vedanta Holdings Mauritius Limited #

 

   

Vedanta Holdings Mauritius II Limited #

 

   

Vedanta Holdings Jersey Limited #

 

B)

Fellow subsidiaries (with whom transactions have taken place)

 

   

Konkola Copper Mines*

 

   

Sterlite Technologies Limited

 

   

Sterlite Power Transmission Limited

 

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Sterlite Iron and Steel Company Limited

 

   

Sterlite Power Grid Ventures Limited

 

   

Twin Star Technologies Limited

 

C)

Post Retirement Benefit Plan

 

   

Balco Employees Provident Fund Trust

 

   

Hindustan Zinc Ltd Employees Contributory Provident Fund Trust

 

   

Sesa Group Employees Provident Fund Trust

 

   

Sesa Mining Corporation Limited Employees Provident Fund Trust

 

   

Sesa Resources Limited Employees Provident Fund Trust

 

   

HZL Employee group Gratuity Trust

 

   

Sesa Group Employees Gratuity Fund and Sesa Group Executives Gratuity Fund

 

   

Sesa Resources Limited Employees Gratuity Fund

 

   

Sesa Mining Corporation Limited Employees Gratuity Fund

 

   

HZL Superannuation Trust

 

   

Sesa Group Executives Superannuation Scheme Fund

 

   

Sesa Resources Limited and Sesa Mining Corporation Limited Employees Superannuation Fund

 

   

FACOR Superannuation Trust##

 

   

FACOR Employees Gratuity Scheme##

 

D)

Associates and Joint Ventures (with whom transactions have taken place)

 

   

RoshSkor Township (Pty) Ltd

 

   

Goa Maritime Private Limited

 

E)

Other Related Parties (with whom transactions have taken place)

Enterprises over which key management personnel/their relatives have control or significant influence

 

   

Vedanta Medical Research Foundation

 

   

Vedanta Foundation

 

   

Cairn Foundation

 

   

Sesa Community Development Foundation

 

   

Janhit Electoral Trust

 

   

Fujairah Gold Ghana

 

   

Runaya Refining LLP

 

   

Minova Runaya Private Limited

 

*

Konkola Copper Mines Plc (KCM) ceased to be a related party w.e.f. May 21, 2019. The Group had total receivable of  2,107 million (net of provision of  4,234 million) as at March 31, 2021 and  2,140 million ($ 29 million) (net of provision of  4,280 million ($ 58 million)) as at September 30, 2021.

 

# 

These entities are subsidiary companies of VRL and VRL through its subsidiaries holds 65.18% in Vedanta Limited.

 

## 

Acquired during the previous year ended March 31, 2021.

The below details provide the total amount of transactions that have been entered into with related parties for the relevant period. The significant transactions relate to the normal sale and purchase of goods and loans and investments.

 

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Transactions and balances with own subsidiaries are eliminated on consolidation.

 

          Entities controlling
the  company/
Fellow

Subsidiaries
(
 in million)
     Associates/Joint
Ventures
(
 in  million)
     Others
(
 in million)
     Total
(
 in million)
 
   Income:            

(i)

  

Sales

     3,544        —          37        3,581  

(ii)

   Other Income            

a)

  

Interest income /guarantee commission/ (Finance costs)

     879        —          —          879  

b)

  

Outsourcing service income

     16        —          —          16  

c)

  

Dividend income

     17        —          —          17  
  

Expenditure and other transactions:

           

(i)

  

Purchases of goods/services

     —          —          91        91  

(ii)

  

Management and brand fees expenses

     2,819        —          —          2,819  

(iii)

  

Corporate social responsibility Expenditure / donation

     —          —          176        176  

(iv)

  

Guarantee commission expense

     544        —          —          544  
  

Transactions during the period:

           

(i)

  

Loans given / (repaid)

     39,374        —          —          39,374  

(ii)

  

Financial guarantee given / (taken)

     31,786        —          8        31,794  

(iii)

  

Financial guarantee relinquished

     —          —          12        12  
          Entities controlling
the company/
Fellow  Subsidiaries
(
 in million)
     Associates/
Joint Ventures
(
 in  million)
     Others
(
 in million)
     Total
(
 in million)
 
  

Balances as at year end:

           

(i)

  

Trade Receivables

     466        —          —          466  

(ii)

  

Loans to (refer note 16(3))

     70,663        49        —          70,712  

(iii)

  

Receivable from (including brand

fee prepaid) (refer note 16(2, 4))

     9,271        10        23        9,304  

(iv)

  

Trade Payables

     973        —          215        1,188  

(v)

  

Payable to (including brand fee

payable) (refer note 16(4))

     2,078        —          866        2,943  

(vi)

  

Guarantees outstanding given

     10        —          47        57  

(vii)

  

Banking Limits assigned/utilised/renewed to/

for group companies (refer note 16(1))

     1,150        —          —          1,150  

(viii)

  

Remuneration, commission and consultancy fees

payable to KMP and their relatives

     —          —          61        61  

 

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     For the six months ended September 30, 2021  
     Entities controlling
the company/
Fellow Subsidiaries
(
in million)
    Associates/
Joint
Ventures
(
 in  million)
     Others
( in million)
    Total
( in million)
    Total
(US dollars in

million)
 
  

Income:

           

(i)

  

Sales

     6,203       —          0       6,203       84  

(ii)

   Other Income            

a)

  

Interest income /guarantee

commission/ (Finance costs) (Refer note 16(3))

     3,660       —          —         3,660       49  

b)

  

Outsourcing Service Income

     18       —          —         18       0  

c)

  

Dividend Income

     15       —          —         15       0  
  

Expenditure and other transactions:

           

(i)

  

Purchases of goods/services

     746       —          722       1,468       20  

(ii)

  

Management and brand fees

expenses (refer note 16(4))

     7,044       —          —         7,044       95  

(iii)

  

Reimbursement of other expenses of

other expenses (net of recovery)

     5       —          (0     5       0  

(iv)

  

Corporate social responsibility

Expenditure / donation

     —         —          223       223       3  

(v)

  

Contribution to post

retirement employee benefit trust

     —         —          297       297       4  

(vi)

  

Guarantee commission expense

(refer note 16(2))

     730       —          —         730       10  

(vii)

  

Dividend paid

           
  

-To holding companies

     44,820       —          —         44,820       604  
  

-To key management personnel

     —         —          0       0       0  
  

-To relatives of key management Personnel

     —         —          3       3       0  
  

Transactions during the period:

           

(i)

  

Loans given / (repaid) (refer note 16(3))

     (16,102     —          —         (16,102     (217

(ii)

  

Financial guarantee given / (taken)

     —         —          —         —         —    

(iii)

  

Financial guarantee relinquished

     10       —          22       32       0  

 

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     As at September 30, 2021  
     Entities controlling
the company/
Fellow  Subsidiaries
(
 in million)
     Associates/
Joint Ventures
(
 in  million)
     Others
(
 in million)
     Total
(
 in million)
     Total
(US dollars in million)
 

Balances as at year end:

              

(i)

   Trade Receivables      328        —          —          328        4  

(ii)

   Loans to (refer note 16(3))      53,059        49        —          53,108        716  

(iii)

   Receivable from (including brand fee prepaid) (refer note 16(2,4)      3,803        10        23        3,836        52  

(iv)

   Trade Payables      305        —          227        532        7  

(v)

   Payable to (including brand fee payable) (refer note 16(4))      2,632        —          738        3,370        45  

(vi)

   Guarantees outstanding given / (taken)      —          —          26        26        0  

(vii)

   Banking Limits assigned/utilised/renewed to/for group companies (refer note 16(1))      1,150        —