Moneycontrol
SENSEX NIFTY
you are here:

Hindustan Zinc Ltd.

BSE: 500188 | NSE: HINDZINC |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE267A01025 | SECTOR: Metals - Non Ferrous

BSE Live

Jul 08, 14:28
191.90 -4.35 (-2.22%)
Volume
AVERAGE VOLUME
5-Day
158,888
10-Day
224,608
30-Day
124,203
107,396
  • Prev. Close

    196.25

  • Open Price

    197.50

  • Bid Price (Qty.)

    192.00 (257)

  • Offer Price (Qty.)

    192.30 (105)

NSE Live

Jul 08, 14:28
192.30 -4.10 (-2.09%)
Volume
AVERAGE VOLUME
5-Day
609,848
10-Day
1,564,120
30-Day
1,184,477
1,330,111
  • Prev. Close

    196.40

  • Open Price

    198.00

  • Bid Price (Qty.)

    192.05 (737)

  • Offer Price (Qty.)

    192.30 (264)

Annual Report

For Year :
2019 2018 2017 2016 2015 2014 2013 2012 2011

Director’s Report

Board''s Report

Dear Members,

The Directors are pleased to inform that Hindustan Zinc delivered strong performance from all our underground mines and many benchmarks in operational performance were set during the year.

I. FINANCIAL PERFORMANCE

We share with you our 53rd Annual Report, together with the Audited Financial Statements for the year ended March 31, 2019.

FINANCIAL INFORMATION

Rs in Crore

Particulars

FY 2019

FY 2018

Revenue from operations (net of Excise Duty)

21,118

22,082

Other Income

1,782

1,716

Profit before depreciation, interest and tax

12,452

14,226

Less: Interest

113

246

Less: Depreciation and amortization expense

1,883

1,483

Profit before tax

10,456

12,497

Less: Net tax expense

2,500

3,221

Net profit

7,956

9,276

Earnings per share, ?

18.83

21.95

REVENUE

The Company reported ''Revenue from operations'' (net of excise duty) including other operating income of Rs 21,118 Crore, a decrease of 4% y-o-y higher lead & silver volumes and rupee depreciation, offset by lower metal prices and zinc volume.

The ''Other income'' was Rs 1,782 Crore during the year compared to Rs. 1,716 Crore in the previous year on account of higher treasury income due to mark-to-market gains resulting from decline in interest rates, partly offset by decline in investment corpus on account of special interim dividend payment.

PRODUCTION COST

Net zinc metal cost per tonne, without royalty, during the year was higher by 11% in INR (3%in USD) at Rs 70,444 ($1008) MT and was impacted by higher mine development, lower metal volume, higher coal & commodity prices, LTS related expense and rupee depreciation (in case of rupee COP), partly offset by higher acid credits. The Company concluded a five-year long-term settlement with its recognised union impacting cost by $33 per tonne.

OPERATING MARGIN

The above revenue and production cost resulted in profit before depreciation, interest and tax (PBDIT) of Rs 12,452 Crore in FY 2019, down 12%. In addition to lower revenue and higher cost of production, operating income was impacted by one-time expense related to LTS arrears.

NET PROFIT

The Company reported record net profit of Rs. 7,956 Crore, 14% lower than previous year on account for lower PBDIT and higher depreciation, partly helped by lower tax rate.

Depreciation & amortisation has trended up due to higher capitalisation and increased underground ore production resulting in higher amortisation.

EARNINGS PER SHARE (EPS)

The EPS for the year was Rs. 18.83 per share as com pared to Rs. 21.95 per share in FY 2018.

DIVIDEND

On October 22, 2018, the Board of Directors declared a Special Interim Dividend of 1000% i.e. Rs. 20 per share on equity share of Rs. 2 each amounting to Rs. 10,188 Crore (including DDT). The Board has not recommended final dividend for the year.

CREDIT RATING AND LIQUIDITY

CRISIL has reaffirmed the Company''s long-term rating of AAA/Stable and short-term rating of A1 . The ratings continue to reflect the Company''s dominant position in India''s zinc industry, efficient and integrated operations and a strong financial risk profile.

The Company follows a conservative investment policy and invests in high quality debt instruments. As on March 31, 2019, the Company''s cash and cash equivalents was Rs. 19,490 Crore invested in high quality debt instruments and the portfolio continues to be rated Tier-1 implying Highest Safety by CRISIL. During the year, the Company borrowed ? 5,000 Crore of short term commercial paper in to meet cash flow mismatch for special interim dividend funding requirement. Of this, Rs 3,000 Crore of commercial paper was paid off during the year. The net cash and cash equivalents at the end of the year was Rs. 16,952 Crore as compared to ? 20,395 Crore at the end of FY 2018.

CASH FLOWS

Rs. in Crore

Particulars

FY 2019

FY 2018

Opening Cash*

20,395

23,972

Add: EBITDA**

10,747

12,373

Add: Net Interest Income

1,552

1,329

Less: Income Tax & Dividend

14,518

13,497

Less: Capital Account Payments

3,400

2,733

Add: (Increase) / Decrease in Working Capital & Others

4,714

(1,049)

Closing Cash*

19,490

20,395

(*) Includes Cash & Equivalents (refer Note 11 of the Audited Financial Statements) and Current Investments (refer Note 9 of the Audited Financial Statements)

(**) Earnings before Interest, Tax, Depreciation and Amortization expenses and Income on investments.

GROSS WORKING CAPITAL

Gross working capital represented by inventory, trade receivables and other current assets increased from Rs. 1,956 Crore to Rs. 2058 Crore as at March 31, 2019 primarily due to increase of stores inventory. The working capital cycle was 36 days in FY 2019 as compared to 32 days in FY 2018.

GROSS BLOCK

The gross block during the year increased from Rs. 23,879 Crore to Rs. 28,096 Crore. This was largely due to the ongoing mining projects and other sustaining capex.

CAPITAL EMPLOYED

The total capital employed as at March 31, 2019 was Rs. 16,652 Crore, as compared to Rs. 15,537 Crore at the end of previous fiscal year mainly due to addition in fixed assets.

CONTRIBUTION TO THE GOVERNMENT TREASURY

The Company has contributed Rs. 11,563 Crore during FY2019, in terms of royalties, taxes and dividends to the Government treasury on cash basis, aggregating to approximately 55% of the total revenue.

II. OPERATIONAL PERFORMANCE PRODUCTION

The FY 2019 mined metal production was entirely from underground mines, which ramped up strongly by 29% to 936 kt on account of 27% increase in ore production and better grades. The closure of open-cast operations caused total mined metal production to decline marginally by 1% from a year ago.

Integrated metal production was 894 kt, down 7% from a year ago. Zinc production at 696 kt was lower by 12% year-over-year due to lower zinc mined metal availability during the year as underground mines ramped up to fill the vacuum from closure of open-cast operations and higher lead ratio in ore. Integrated lead and silver production were at record 198 kt and 679 MT, higher by 18% and 22% respectively from a year ago driven by higher lead mined metal production, retrofitting of pyro metallurgical smelter in Q2 FY 2019 to produce more lead in line with higher lead mined metal availability and better silver grades.

The Company generated 3,746 million units of power in FY 2019 as compared to 3,817 million units in FY 2018. Total green power generation was 449 million units as compared to 414 million units in FY 2018.

SALES

The refined zinc metal sales in the domestic market during the year was 513 kt, while export sales accounted for 181 kt as compared to 515 kt and 278 kt respectively a year ago. The aggregate sales were lower by 12% than previous year, in line with production. Lead metal sales in the domestic market were 154 kt, while export sales were 44 kt leading to higher aggregate sales of 17% from a year ago, in line with increase in lead metal production during the year. Silver sales were 676 MT in FY 2019, all in the domestic market and 21% higher than previous year.

III. RESERVE & RESOURCE (R&R)

During the year, gross additions of 5.4 million MT were made to reserves resource (R&R), prior to depletion of 13.8 million MT. As at March 31, 2019, the combined R&R were estimated to be 403 million MT, containing 34.6 million MT of zinc-lead metal and 965 million ounces of silver. Overall mine life continues to be more than 25 years.

IV. PROJECTS

The announced mining projects are nearing completion in line with the target of reaching 1.2 million MT per annum of mined metal capacity in FY2020.

UPDATE ON ONGOING EXPANSION PROJECTS

Capital mine development increased by 12% to 43 km in FY2019.

At Rampura Agucha underground mine, the ventilation system was commissioned earlier in the year liberating the mine from ventilation issues. The commissioning of mid shaft loading system in October 2018 allowed waste hoisting to be done through the shaft ahead of schedule, leading to improvement in ore production. The second paste fill plant was completed ahead of schedule in Q4 and the mine is equipped with paste fill capacity to support 5.0 mtpa production. The full shaft commissioning is expected to complete by September 2020 synchronising with completion of crusher and conveyor system.

During the year, Sindesar Khurd received environment clearance to produce 6.0 million MT of ore and 6.5 million MTof ore beneficiation.The new 1.5 mtpa mill accomplished smooth commissioning and began production in the third quarter of the year, taking the total milling capacity to 6.2 mtpa. The underground crusher and production shaft were commissioned during Q4 and ore hoisting from shaft is expected to start in Ql of the current year. The second paste fill plant is under mechanical completion and also expected to commission in Q1 of the current year.

Zawar mines: The new 2.0 mtpa mill was commissioned in Q4 while the dry tailing plant is under execution and expected to commission in Q2 FY 2020.

Rajpura Dariba mine has received Environment Clearance by the Ministry of Environment, Forest & Climate Change to increase ore production from 0.9 to 1.08 mtpa and regulatory approval for further expansion to 2.0 mtpa is under process. Ore production run-rate is already at 1.2 million MT per annum post major infrastructure enhancement. During the year, orders were place for a new 1.5 mtpa mill and paste fill plant which are expected to complete in FY2020.

OTHER PROJECTS

The Fumer project at Chanderiya is expected to commission in Q1 of the current year.

22 MW solar plant was completed at Rampura Agucha taking the total solar capacity to 38 MW.

25 MLD Sewage Treatment Project was commissioned at Udaipur taking the total capacity to 45 MLD which will help improve water availability at Dariba and treat over half of Udaipur city''s sewage.

Planning is underway for the next phase of expansion to 1.35 million MT perannum.

OUTLOOK

Both mined metal and finished metal production in FY2020 will be significantly higher than last year and expected to be about 1.0 million tonnes each. The Company expects to complete the underground mine expansion plan announced in early 2013 by Q2 of the current financial year, quadrupling its underground mined metal production capacity to 1.2 mtpa.

Zinc cost of production in FY2020 is expected to be under $1000 per MT. The guidance of FY 2020 silver production is in the range of 750 - 800 MT. The project capex for the year will be in the range of US$350 to US$400 million.

VI. HEALTH, SAFETY AND ENVIRONMENT

Safety, health and sustainability initiatives have been discussed in detail in ''Business Review'', which forms a part of this Annual Report.

VII. CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Company''s CSR focuses on Education, Sustainable Livelihoods, Women Empowerment, Health & Water, Sports & Culture, Environment and Community Development including Community Assets Creation.

During the year, the Company spent Rs. 130 Crore on CSR programs as compared to Rs, 92 Crore in previous year. For further details, refer Annexure 5 and ''Business Review'' section of this Annual Report.

VIII. DIRECTORS

During the year under review, Mr. Agnivesh Agarwal resigned as Director and Chairman of the Board on February 22,2019 after 13 years of being on the Board of Directors. We thank Mr. Agarwal for his leadership and guidance towards the growth of the Company. Mrs Kiran Agarwal was appointed as Additional Director and Chairman of the Board on March 02, 2019.

Mr. Sudhir Kumar, Independent Director and nominee of Government of India, completed his tenure on November 29, 2018. We thank Mr. Kumar for his contribution.

IX. MANAGEMENT DISCUSSION AND ANALYSIS

The Business Review section of this Annual Report gives a detailed account of the Company''s operations and the market in which it operates, including its initiatives in areas such as human resources, sustainability and risk management.

X. CORPORATE GOVERNANCE AND BUSINESS RESPONSIBILITY REPORT

As a listed company, necessary measures are taken to comply with the listing agreements of the Stock exchanges. A report on Corporate Governance, along with a certificate of compliance from the statutory auditors, forms part of this report. Further, Business Responsibility Report describing the initiatives taken by your Company from an Environmental, Social and Governance perspective, also forms a part of this report. Various disclosures as required under section 134 and 135 of the Companies Act2013 are annexed to this report or covered in the Corporate Governance Report, such as Related Party Transactions; Information and details on conservation of energy, technology absorption, foreign exchange earnings and outgo; extract of annual return; constitution of various Board level Committees; Annual Report on CSR.

XI. DIRECTORS RESPONSIBILITY STATEMENT

As required under Section 134(5) of the Companies Act, 2013, the Directors hereby confirm that:

i. In the preparation of the annual accounts, the applicable accounting standards read with requirements set out under Schedule 3 to the Act, have been followed and there are no material departures in the same.

ii. The Directors have selected such accounting policies, applied them consistently and made judgements & estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profits of the Company for that period.

iii. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

iv. The Directors have prepared the annual accounts on a ''Going Concern'' basis.

v. The Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and

vi. The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

XII. AUDITORS

The Company had appointed M/s. SR Batliboi & Co. LLP, Chartered Accountants, as Statutory Auditors of the Company to conduct audit of Financial Statements for the year ended March 31, 2019. The Notes to Financial Statement referred to in the Auditors'' Report are self-explanatory and do not call for any further comments. The Auditors'' Report does not contain any qualification or reservation. The only adverse remark is for not fulfilling the criteria of adequate number of Independent Directors for which we are in touch with the two major shareholders.

Pursuant to the orders issued by the Central Government under section 148 of The Companies Act, 2013, the Board has appointed M/s K G Goyal & Co. Cost Accountants for conducting the audit of the cost accounting records maintained by the Company for all its products and M/s Chandrasekaran Associates, Company Secretaries as the Secretarial Auditors for conducting the Secretarial audit of the Company.

As per provisions of Section 136 of the Companies Act, 2013, the Annual Report including the Audited Accounts for the year will be sent to all the Shareholders.

XIII. PARTICULARS OF EMPLOYEES

Disclosures pertainingto remuneration and other details as required under Section 197(12) of the Act, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are attached to this report. In terms of the provisions of Section 197(12) of the Companies Act, 2013 read with Rules 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement showing the names and other particulars of employees drawing remuneration in excess of the limits set out in the said Rules forms part of the Report. However, having regard to the provisions of the first proviso to Section 136(1) of the Companies Act, 2013, the Annual Report excluding the aforesaid information is being sent to the Members of the Company. The said information is available for inspection at Registered Office of the Company during working hours. Any member interested in obtaining such information may write to the Company Secretary at the registered office and the same will be furnished on request. Further the details are also available on the Company''s website: www.hzlindia.com.

XIV. ACKNOWLEDGEMENTS

The Board of Directors places on record its sincere appreciation of the contribution made by the employees and the employees'' unions in the success of the Company. The Directors also sincerely thank the Central Government and the State Governments of Rajasthan, Andhra Pradesh, Gujarat, Karnataka, Tamil Nadu, Maharashtra and Uttarakhand; and the bankers, auditors, vendors, customers and the shareholders of the Company for their continued support.

For and on behalf of the Board of Directors

Sunil Duggal

A R Narayanaswamy

CEO & Whole-time Director

Director

Camp: London

Place: Mumbai

Date: May 02, 2019

Annexure 1

Particulars of technology absorption and foreign exchange earnings and outgo, as per Section 134(3)(m) of the Companies Act, 2013 and the rules made therein and forming part of the Board''s Report for the year ended March 31, 2019.

A) CONSERVATION OF ENERGY

Trails of DROSRITE™ zinc dross treatment process conducted at zinc melting section of Pantnagar Metal Plant. This process uses the heat generated by the oxidation of unrecoverable zinc metal, in the presence of oxygen, as a source of energy

B) TECHNOLOGY ABSORPTION

A) SPECIFIC AREAS IN WHICH R&D HAS BEEN CARRIED OUT BY THE COMPANY IN FY 2019

Feasibility testing of new technologies like Stage Flotation Reactor (SFR), flash floatation, graphite pre-float and lead re-grinding for suitability in our operations to address ore variability and improve recovery

Modification in floatation circuit configuration for increase in metal recovery in mills

Testing of new floatation reagents for improved metallurgical performance and cost benefits

Plant surveys of grinding and floatation circuit across all mines for optimised plant performance

Benchmarking of beneficiation plant performance and modelling and simulation studies to strengthen metallurgical accounting at Zawar

Process development for tailing re-processing to recover metal from tailings

Conversion of pre-graphite concentrate into saleable graphite product and to recover metal values from pre-graphite concentrate

Pilot scale testing for 18.75 MT antimony slag was successfully completed. About 3 MT of antimony trioxide of purity >96% and 17 MT of enriched lead residue suitable for internal consumption were generated

Pilot scale testing initiated for high grade cobalt cake generation from purification waste cake. The operating parameters have been optimised at lab and bench scale to generate purified cobalt cake of about 20% purity

Process for recovery of vanadium as ammonium meta vandate from spent acid catalyst validated at lab scale. Replacement of sodium peroxide is being explored

Cold bricks are being prepared with 3-5% cement and 80% of different wastes used in various composition. Enhancing of brick strength is in progress.

Process feasibility for magnesium bleeding through zinc dross treatment has done. Bench scale closed loop testing is in progress

B) BENEFITS DERIVED AS RESULT OF ABOVE R&D

Testing of new technologies suggest that its implementation will increase recovery of lead and silver in case of flash floatation and lead re-grinding and improve concentrate grade by using SFR and pre-graphite floatation

Circuit modification in zinc floatation circuit suggests that it will increase zinc recovery by 2%

Regular plant surveys across all mines gives an idea of plant operating status and any opportunity for improvement thereof

Metallurgical accounting will help in bridging gap between theoretical and actual recovery

Tailing re-processing at Rampura Agucha mine will give an extra 3% increase in overall metal recoveries 18.75 MT antimony slag treated and total realization of Rs 25.5 lacs is achieved from pilot plant operation. Expected realization is Rs. 11.5 Crore per annum

Drosrite process suggests the Improvement in 1st pass metal recovery by 0.35%. Also the final dross can be directly treated at leaching plant

The spent vanadium catalyst can be reused and disposal cost can be saved

Successful dross leaching signify zero dross to roaster

High grade cobalt cake serve the purpose of cost generation from waste

C) FUTURE PROJECTS FOR R&D IN FY2019-20

Modification in floatation circuit configuration for increase in metal recoveries

Plant optimisation through cell hydrodynamic and mineralogical characterization

Implementation of tailing recovery project

Process flowsheet validation for cobalt recovery at pilot scale

Exploration of solvent extraction to get high grade cobalt cake

Antimony slag treatment plant setup at Chanderiya ancillary plant

Establishment of vanadium recovery process to bench and pilot scale

Raw mix design and generation of high strength bricks & paver blocks

Zinc dross treatment for magnesium bleeding at pilot scale

Lab & bench scale testing and parameter optimisation of mercury stripper water

Recovery of manganese from manganese sulphate solution

C) FOREIGN EXCHANGE EARNINGS AND OUTGO

During the year, foreign exchange outgo was Rs 1,700 Crore (which includes import of capital goods, stores & spares, coal, consumables, consultancy, travelling etc.), while foreign exchange earned was Rs 4,237 Crore.

FORM A

FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY

Particulars

Unit

Year ended March 31, 2019

Year ended March 31, 2018

A) ELECTRICITY, POWER GENERATION & FUEL CONSUMPTION

Purchase Units

Million Kwh

206

191

Total Amount

Rs.Cr

172.90

149.33

Average rate of purchasing

Rs/ /kwh

8.39

7.82

CPP - Units generated from fuel oil

Own Generation Units (From Fuel Oil)

Million Kwh

0.28

0.21

Quantity Consumed

LSHS/FO

MT

0.42

0.42

HSD

KL

493

526

Total Amount

Rs. Cr

2.93

4.03

Average cost of fuel per Kg

Rs./kg

72.45

93.28

Average cost of generation

Rs./kwh

102.95

193.97

Unit generated per unit of fuel (LSHS/FO/HSD)

kwh/kg

0.70

0.48

CPP - Units generated from Coal

Own Generation Units (From Coal)

Million Kwh

3,633

3,693

Quantity Consumed

Coal

MT

17,42,116

17,84,862

LDO

KL

300

352

Total Amount

Rs. Cr

1,456.34

1359.91

Average cost per Kg (Coal)

Rs. /kg

8.36

7.62

Average cost per Kg (LDO)

Rs./kg

56.93

57.96

Average cost of generation

Rs./kwh

4.65

4.21

Unit generated per unit of fuel (Coal)

kwh/kg

2.27

2.26

B) FUEL CONSUMPTION FOR METAL PRODUCTION

(a) L.P.G./Propane

Quantity

Million Kg

3.70

5.61

Total Amount

Rs. Cr

17.27

23.17

Average cost per Kg

Rs.//Kg

46.69

41.27

(b) L.D.O./LSHS/FO

Quantity

KL

29,612

19,000

Total Amount

Rs. Cr

146.06

66.78

Average cost per Ltr

Rs/Ltr

49.32

35.15

(c) Coal for Steam & Others

Quantity

MT

26,250

26,424

Total Amount

Rs. Cr

22.61

20.03

Average cost per MT

Rs./MT

8,612

7,580

(d) Met Coke & Coke breez

Quantity

MT

99,819

1,34,822

Total Amount

Rs. Cr

277.37

353.69

Average cost per MT

Rs./MT

27,787

26,234

CERTIFICATE OF COMPLIANCE WITH THE CODE OF CONDUCT POLICY

As provided under clause 17 (5) (a) of the SEBI (LODR) Regulation 2015, all Board Members and the Senior Management personnel have confirmed compliance with the Business Ethics and Code of Conduct for the year ended on March 31, 2019.

For Hindustan Zinc Limited
Sunil Duggal
CEO & Whole-time Director Camp: London
Date: May 02, 2019

FORM NO. MR-3 SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED MARCH 31, 2019

To,

The Members,

Hindustan Zinc Limited

Yashad Bhavan,

Yashadgarh,

Udaipur, Rajasthan - 313004

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate governance practices by Hindustan Zinc Limited

(hereinafter called the Company). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.

Based on our verification of the Company''s books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, we hereby report that in our opinion, the Company has, during the audit period covering the financial year ended on March 31, 2019 complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the Financial Year ended on March 31, 2019 according to the provisions of:

(i) The Companies Act, 2013 (the Act) and the rules made thereunder;

(ii) The Securities Contracts (Regulation) Act, 1956 (SCRA'') and the rules made thereunder;

(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder to the extent of Regulation 76 of Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018;

(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings;

(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (''SEBI Act''):-

(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;

(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;

(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;

(d) The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014;Not Applicable

(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; Not Applicable

(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client to the extent of securities issued;

(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; Not Applicable

(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998; Not Applicable

(vi) The Management has identified and confirmed the following laws as being specifically applicable to the Company:

1. The Mines Act, 1952 and Rules made thereunder, and

2. The Mines and Minerals (Development and Regulation) Act, 1957 and the Rules made thereunder.

We have also examined compliance with the applicable clauses/ Regulations of the following:

(i) Secretarial Standards issued by The Institute of Company Secretaries of India and notified by Ministry of Corporate Affairs.

(ii) SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

During the period under review, the Company has substantially complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above except as mentioned hereinafter.

WE FURTHER REPORT THAT:

The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors except that with regard to the requirement of having at least one haIf of the Board of Directors comprising of Independent Directors in terms of Regulation 17 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company falls short by two Independent Director. The changes, if any, in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act.

Adequate notice is given to all directors to schedule the Board/ Committee Meetings. Agenda and detailed notes on agenda were sent in advance (and at a shorter notice for which necessary approvals obtained, if any) and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.

All decisions at Board Meetings and Committee Meetings are carried out unanimously as recorded in the minutes of the meetings of the Board of Directors or Committee of the Board, as the case maybe.

We further report that there are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

We further report that during the audit period, no specific events / actions took place having a major bearing on the Company''s affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards, etc.

Place: Delhi

For Chandrasekaran Associates

Date: May 02, 2019

Company Secretaries

Shashikant Tiwari

Partner

Membership No. A28994

Certificate of Practice No. 13050

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

ANNEXURE-A

TO SECRETARIAL AUDIT REPORT

To,

The Members,

Hindustan Zinc Limited

Yashad Bhavan,

Yashadgarh,

Udaipur, Rajasthan -313004

1. Maintenance of secretarial record is the responsibility of the Management of the Company. Our responsibility is to express an opinion on these secretarial records based on our audit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the secretarial records. The verification was done on the random test basis to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.

3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.

4. Whenever required, we have obtained the Management representation about the compliance of laws, rules and regulations and happening of events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of Management. Our examination was limited to the verification of procedures on random test basis.

6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the Management has conducted the affairs of the Company.

Place: Delhi

For Chandrasekaran Associates

Date: May 02, 2019

Company Secretaries

ShashikantTiwari

Partner

Membership No. A28994

Certificate of Practice No. 13050

Annexure 2

Particulars of contract or arrangements with related parties

FORM NO.AOC-2

FORM FOR DISCLOSURE OF PARTICULARS OF CONTRACTS/ARRANGEMENTS ENTERED INTO BY THE COMPANY WITH RELATED PARTIES REFERRED TO IN SUB-SECTION (1) OF SECTION 188 OF THE COMPANIES ACT, 2013 INCLUDING CERTAIN ARM''S LENGTH TRANSACTIONS UNDER THIRD PROVISO THERETO

1. Details of contracts or arrangements or transactions not at arm''s length basis: NIL

(a) Names(s) of the related party and nature of relationship

(b) Nature of the contracts/arrangements/transactions

(c) Duration of the contracts/arrangements/transactions

(d) Salient terms of the contracts or arrangements or transactions including the value, If any

(e) Justification for entering into such contracts or arrangements or transactions

(f) Date(s) of approval by the board

(g) Amount paid as advances, if any:

(h) Date on which the special resolution was passed in general meeting as required under first proviso to section 188

2. Details of the material contracts or arrangements or transactions at arm''s length basis: NIL

(a) Names(s) of the related party and nature of relationship

(b) Nature of contracts/arrangements/transactions

(c) Duration of the contracts/arrangements/transactions

(d) Salient terms of the contracts or arrangements or transactions including the value, If any

(e) Date(s) of approval by the board

(f) Amount paid as advances, if any:

For and on behalf of the Board of Directors

Sunil Duggal

A.R. Narayanaswamy

CEO & Whole-time Director

Director

Camp: London

Place: Mumbai

Date: May 02, 2019

Note: In item 2, material is defined as greater than 10% of the turnover

annexure 3

FORM NO. MGT-9

EXTRACT OF ANNUAL RETURN as on March 31,2019

[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS:

i) CIN

L27204RJ1966PLC001208

ii) Registration Date

January 10, 1966

iii) Name of the Company

Hindustan Zinc Limited

iv) Category /Sub-Category of the Company

Public Limited Company

v) Address of the Registered office and contact details

Yashad Bhawan, Udaipur - 313004 (Rajasthan)

Email id: - hzl.cosecy@vedanta.co.in

Phone No: - 0294-6604000

vi) Whether listed company Yes/No

Yes

vii) Name, Address and Contact details of Registrar and

Karvy Fintech Private Limited

Transfer Agent, if any

(Formerly known as KCPL Advisory Services P Ltd)

Karvy Selenium Tower B, Plot Nos. 31 & 32 | Financial

District Nanakramguda |Serilingampally Mandal

Hyderabad- 500032 | India

P: 91 40 67161591

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

Mining and Smelting of Non-Ferrous metals (Zinc, Lead, Silver).

Wind energy All the business activities contributing 10% or more of the total turnover of the Company shall be stated: -

SI. No.

Name and Description of main products / services

NIC Code of the Product/ service

% to total turnover of the company

1

Zinc

27204

69.5%

2

Lead

27209

15.2%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES -

S.No.

Name and Address of the Company

CIN/GLN

Holding/ Subsidiary/ Associate

% of shares held

Applicable Section

1

Vedanta Limited

L13209GA1965PLC00044

HOLDING

64.92%

2(46)

IV. SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY) (I) CATEGORY-WISE SHARE HOLDING

Category of Shareholders

No. of Shares held at the beginning of the year

No. of Shares held at the end of the year

% Change during the year

Demat

Physical

Total

% of Total Shares

Demat

Physical

Total

% of Total Shares

A. Promoters

(1) Indian

a) Individual/HUF

-

-

-

-

-

b) Central Govt

-

-

-

-

-

c) State Govt (s)

-

-

-

-

d) Bodies Corp. - Vedanta Limited

2743154310

0

2743154310

64.92

2743154310

0

2743154310

64.92

0

e) Banks /Fl

-

-

-

-

f) Any Other

-

-

-

-

-

Sub-total (A) (1)

2743154310

0

2743154310

64.92

2743154310

0

2743154310

64.92

0

(2) Foreign

a) NRIs- Individuals

-

-

-

-

b) Other Individuals

-

-

-

-

c) Bodies Corp.

-

-

-

-

d) Banks/ Fl

-

-

-

-

e) Any Other

-

-

-

-

Sub-total (A) (2)

-

-

-

-

-

-

-

-

-

Total shareholding of Promoter (A) = (A)(l) (A) (2)

2743154310

0

2743154310

64.92

2743154310

0

2743154310

64.92

0

B. Public shareholding

1. Institutions

(a) Mutual Funds/ UTI

37304507

265000

37569507

0.89

13031140

265000

13296140

0.31

(-) 0.58

(b) Financial Institutions /Banks

1623381

45000

1668381

0.04

2060017

45000

2105017

0.05

0.01

(c) Central Government/ State Government(s)

1247950590

0

1247950590

29.54

1247950590

0

1247950590

29.54

-

(d) Venture Capital Funds

-

-

-

-

-

(e) Insurance Companies

24668104

0

24668104

0.58

87492060

0

87492060

2.07

1.49

(f) Foreign Institutional Investors

3338834

111000

3449834

0.08

1771758

111000

1882758

0.04

(-) 0.04

(g) Foreign Venture Capital Investors

-

-

-

-

-

(h) Alternate Investment Funds

876800

0

876800

0.02

-

-

(-) 0.02

(i) Any Other (specify)

(i-i) Central Government

1927464

0

1927464

0.05

2015181

0

2015181

0.05

-

(i-ii) Clearing Member

99297

0

99297

0.00

41006

0

41006

-

(i-iii) NBFC

8320

0

8320

0

10203

0

10203

-

(i-iv) HUF

1541374

0

1541374

0.04

1465708

0

1465708

0.03

(-) 0.01

Sub-Total (B)(1)

1319338671

421000

1319759671

31.24

1355837663

421000

1356258663

32.10

0.86

2. Non-Institutions

(a) Bodies Corporate

22925813

135000

23060813

0.55

19729167

127000

19856167

0.47

(-) 0.08

(b) Individuals

i) Individual shareholders holding nominal share capital up to Rs. 2 Lac

40983618

1606269

42589887

1.00

39720417

1472866

41193283

0.97

(-) 0.03

ii) Individual shareholders holding nominal share capital in excess of Rs 2 Lac

1921923

0

1921923

0.05

854870

0

854870

0.02

(-) 0.03

(c) Any Other (specify)

(c-i) Trust

79292

0

79292

0

86476

0

86476

0

0

(c-ii) NRI

1828152

690000

2518152

0.06

1633165

690000

2323165

0.05

(-) 0.01

(c-iii) NRI Company

-

-

-

-

(c-iv) Foreign Individual

100

0

100

0

100

0

100

(c-v) Foreign Corporate Bodies

92233912

0

92233912

2.18

61591026

0

61591026

1.46

(-) 0.72

(c-vi) IEPF

940

0

940

0

940

0

940

Sub-Total (B)(2)

159973750

2431269

162405019

3.84

123616161

2289866

125906027

2.98

(-) 0.86

Total Public Shareholding (B)= (B)(1) (B)(2)

1479312421

2852269

1482164690

35.08

1479453824

2710866

1482164690

35.08

-

C. Shares held by Custodians and against which Depository Receipts have been issued

GRAND TOTAL (A) (B) (C)

4222466731

2852269

4225319000

100.00

4222608134

2710866

4225319000

100

-

(II) SHAREHOLDING OF PROMOTERS

SI. No

Shareholder''s Name

Shareholding at the beginning of the year

Shareholding at the end of the year

% change in shareholding during the year

No. of Shares

% of total Shares of the company

% of Shares Pledge/ encumbered to total shares

No. of Shares

% of total Shares of the company

% of Shares Pledge/ encumbered to total shares

1

Vedanta Limited

2743154310

64.92

0

2743154310

64.92

0

0

Total

2743154310

64.92

0

2743154310

64.92

0

0

(Ill) CHANGE IN PROMOTERS'' SHAREHOLDING (PLEASE SPECIFY, IF THERE IS NO CHANGE)

SI. No

Particulars

Shareholding at the beginning of the year

Cumulative Shareholding during the year

No. of shares

% of total shares of the company

No. of shares

% of total shares of the company

1

At the beginning of the year

2743154310

64.92

2743154310

64.92

2

Date wise Increase/Decrease in Promoters Shareholding during the year specifying the reasons for increase /decrease (e.g. allotment/ transfer/bonus/sweat equity etc.)

-No Change-

-No Change-

-No Change-

-No Change-

3

Attheend of the year

2743154310

64.92

2743154310

64.92

(IV) SHAREHOLDING PATTERN OF TOP TEN SHAREHOLDERS (OTHER THAN DIRECTORS, PROMOTERS AND HOLDERS OF GDRs AND ADRs):

SI. No

For Each of the Top 10 Shareholder''s

Shareholding at the beginning of the year

No. of shares

% of total shares of the company

At the beginning of the year (01.04.2018)

1

PRESIDENT OF INDIA

1247950590

29.54

2

LIFE INSURANCE CORPORATION OF INDIA

16870025

0.40

3

JANUS OVERSEAS FUND

8149485

0.19

4

INDIA OPPORTUNITIES III PTE. LIMITED

8024214

0.19

5

GENERAL INSURANCE CORPORATION OF INDIA

5800000

0.14

6

GOLDMAN SACHS INDIA LIMITED

5717222

0.14

7

GOLDMAN SACHS FUNDS-GOLDMAN SACHS GROWTH & EMERGING MARKETS BROAD EQUITY PORTFOLIO

4759052

0.11

8

HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

4463950

0.11

9

VANGUARD EMERGING MARKETS STOCK INDEX FUND, A SERIES OF VANGUARD INTERNATIONAL EQUITY INDEX FUNDS

4338093

0.10

10

INDIA CAPITAL FUND LIMITED

4050000

0.10

Net Increase/Decrease in shareholding during the year specifying the reasons for increase /decrease (e.g. allotment/ transfer/bonus/sweat equity etc.)

1

LIFE INSURANCE CORPORATION OF INDIA

60793999

1.44

2

JANUS OVERSEAS FUND

(-)8149485

(-) 0.19

3

INDIA OPPORTUNITIES III PTE. LIMITED

(-)8024214

(-) 0.19

4

GENERAL INSURANCE CORPORATION OF INDIA

200000

-

5

GOLDMAN SACHS INDIA LIMITED

(-)3149521

(-) 0.07

6

GOLDMAN SACHS FUNDS-GOLDMAN SACHS GROWTH & EMERGING MARKETS BROAD EQUITY PORTFOLIO

(-)4759052

(-) 0.11

7

HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

(-)4463950

(-) 0.11

8

VANGUARD EMERGING MARKETS STOCK INDEX FUND, A SERIES OF VANGUARD INTERNATIONAL EQUITY INDEX FUNDS

7020

-

9

INDIA CAPITAL FUND LIMITED

4000

-

10

PTC CABLES PRIVATE LTD

11267300

0.27

11

JANUS HENDERSON OVERSEAS FUND

8149485

0.19

12

UTI- EQUITY FUND

1590000

0.04

13

VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND

596822

0.01

14

JANUS HENDERSON OVERSEAS PORTFOLIO

3692019

0.09

Change in holding is due to purchase/ sale of shares

At the end of the year (or on the date of separation, if separated during the year) (31.03.2019)

1

PRESIDENT OF INDIA

1247950590

29.54

2

LIFE INSURANCE CORPORATION OF INDIA

77664024

1.84

3

PTC CABLES PRIVATE LTD

11267300

0.27

4

JANUS HENDERSON OVERSEAS FUND

8149485

0.19

5

GENERAL INSURANCE CORPORATION OF INDIA

6000000

0.14

6

VANGUARD EMERGING MARKETS STOCK INDEX FUND, A SERIES OF VANGUARD INTERNATIONAL EQUITY INDEX FUNDS

4345113

0.10

7

INDIA CAPITAL FUND LIMITED

4054000

0.10

8

UTI- EQUITY FUND

3963341

0.09

9

VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND

3744691

0.09

10

JANUS HENDERSON OVERSEAS PORTFOLIO

3692019

0.09

(V) SHAREHOLDING OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:

SI. No

Particulars

Shareholding at the beginning of the year

Cumulative Shareholding during the year

For Each of the Directors and KMP

No. of shares

% of total shares of the company

No. of shares

% of total shares of the company

1

Mr. Arun L.Todarwal, Director

At the beginning of the year (01.04.2018)-

1500

0.00

-

Purchase during the year

500

0.00

2000

-

At the end of the year

-

2000

0.00

2

Mr. Rajendra Pandwal, Company Secretary

At the beginning of the year (01.04 .2018)-

25000

-

-

Purchase/Sale during the year

-

-

At the end of the year

-

25000

-

V. INDEBTEDNESS

INDEBTEDNESS OF THE COMPANY INCLUDING INTEREST OUTSTANDING/ACCRUED BUT NOT DUE FOR PAYMENT

Rs. in Crore

Particulars

Secured Loans excluding deposits

Unsecured Loans

Deposits

Total Indebtedness

Indebtedness at the beginning of the financial year

0

0

0

0

(01.04.2018)

i) Principal Amount

ii) Interest due but not paid

iii) Interest accrued but not due

Total (i ii iii)

0

0

0

0

Change in Indebtedness during the financial year

Addition

0

12000

0

12000

Reduction

0

10000

0

10000

Net Change

0

2000

0

2000

Indebtedness at the end of the financial year

0

2000

0

2000

(31.03.2019)

i) Principal Amount

ii) Interest due but not paid

iii) Interest accrued but not due

Total (i ii iii)

0

2000

0

2000

Note: 1. Interest is paid upfront on CP

2. Principal amount of CP is shown and not the CP issue proceeds, hence not matching with Balance Sheet numbers

3. On frequent basis overdraft is taken. As on 31.03.2019 amount of overdraft outstanding (unsecured) is Rs. 569.40 Crore

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. REMUNERATION TO MANAGING DIRECTOR, WHOLE-TIME DIRECTORS AND/OR MANAGER:

SI. No

Particulars of Remuneration

Name of MD/ WTD/ Manager

Total Amount (Rs.)

Mr. Sunil Duggal

1

Gross salary (a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961

5,77,79,267

5,77,79,267

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961

(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961

2

Stock Option

-

3

Sweat Equity

-

4

Commission

-

as % of profit

Others, specify

5

Others, please specify (ESOP of ultimate Holding Co.)

2,41,88,682

2,41,88,682

Total (A)

8,19,67,949

8,19,67,949

Ceiling as per the Act

10% of Profit after tax i.e. Rs. 796 Crore

B. REMUNERATION TO OTHER DIRECTORS:

SI. No

Particulars of Remuneration

Name of Director

Total Amount (Rs.)

1

Independent Directors

Mr. A. R. Narayanaswamy

Mr. Arun L Todarwal

Mr. Sudhir Kumar

Fee for attending Board / Committee meetings

5,50,000

4,25,000

2,00,000

11,75,000

Commission

15,00,000

15,00,000

9,98,630

39,98,630

Others, please specify

-

-

Total (1)

20,50,000

19,25,000

11,98,630

51,73,630

2

Other Non-Executive Directors

Mr. Navin Agarwal

Mr. Agnivesh Agarwal

Mrs. Kiran Agarwal

Fee for attending Board / Committee meetings

2,00,000

50,000

2,50,000

Commission

15,00,000

22,46,575

2,05,480

39,52,055

Others, please specify

-

-

Total (2)

17,00,000

22,96,575

2,05,480

42,02,055

Total (B)=(1 2)

37,50,000

42,21,575

14,04,110

93,75,685

Overall Ceiling as per the Act

1% of Profit after tax i.e. Rs. 79.6 crore

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD

SI. No

Particulars of Remuneration

KEY MANAGERIAL PERSONNEL

Company Secretary Mr. R Pandwal

Chief Financial Officer Mr. Amitabh Gupta (Upto 21.01.2019)

Acting Chief Financial Officer Mr. Swayam Saurabh (w.e.f 21.01.2019)

Total

1

Gross salary

(a) Salary as per provisions contained in section 17(1) of the Income-taxAct, 1961

85,11,150

2,82,20,401

30,92,947

3,98,24,498

(b) Value of perquisites u/s 17(2) of the Income-tax Act, 1961

(c) Profits in lieu of salary under section 17(3) of the Income-tax Act, 1961

-

-

2

Stock Option

-

-

3

Sweat Equity

-

-

4

Commission

as % of profit

-

-

Others, specify. . .

-

-

5

Others, please specify (ESOP of ultimate Holding Co)

26,41,644

1,38,08,592

1,64,50,236

Total

1,11,52,794

4,20,28,993

30,92,947

5,62,74,734

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type

Section of the Companies Act

Brief Description

Details of Penalty / Punishment/ Compounding fees imposed

Authority [RD / NCLT/ Court]

Appeal made, if any (give details)

A. COMPANY

Penalty

Punishment

Compounding

B. DIRECTORS

-

Penalty

NIL

Punishment

Compounding

C. OTHER OFFICERS IN DEFAULT

Penalty

Punishment

Compounding

annexure 4

I) DISCLOSURE ON REMUNERATION OF MANAGERIAL PERSONNEL

(i) The ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year:

Name of Director

Mr. Sunil Duggal

Mean

1:51

Median

1:83

ii) The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year:

Name

Annual Increment (%)

Mr. Sunil Duggal

55

Mr. Amitabh Gupta

11

Mr. Swayam Saurabh

NA

Mr. R Pandwal

(-)6

(iii) The percentage increase in the median remuneration of employees in the financial year: Mean 11.1%, Median 8.2% (iv) The number of permanent employees on the rolls of Company: 4,199 (including 24 expats and retainers)

(v) The explanation on the relationship between average increase in remuneration and Company performance: The Company achieved record volumes and profitability in FY 2017-18.

(vi) Comparison of the remuneration of the Key Managerial Personnel against the performance of the Company: Remuneration of the KMPs as % of the PAT for 2018-19 is 0.17%.

(vii) Variation in the market capitalisation of the Company, price earnings ratio as at the closing date of the current financial year and previous financial year and percentage increase over decrease in the market quotations of the shares of the Company in comparison to the rate at which the Company came out with the last public offer in case of listed companies and in case of unlisted companies the variations in the net worth of the Company as at the close of the current financial year and previous financial year:

Date

Market Price in (Rs.)

EPS (Rs)

P/E ratio

Market Capitalization, Rs. Crore

% Change

March 31, 2018

300.95

21.95

13.71

1,27,161

March 31, 2019

276.40

18.83

14.68

1,16,788

(-) 8.16

Percentage increase over the last public offer price is not relevant as there has never been any public offer by the Company.

(viii) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last

financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

Average increase in the remuneration of all employees excluding KMPs: 10% Average increase in the remuneration of KMPs: 31%

Justification: KMP salary increases are decided based on the Company performance, inflation, prevailing industry trends and benchmarks

(ix) Comparison of remuneration of each of the Key Managerial Personnel against the performance of the Company; Each KMP is granted salary based on his qualification, experience, nature of job, industry benchmark, earlier salary and many other factors, comparison of one against the other is not feasible.

(x) The key parameters for any variable component of remuneration availed by the Directors: Only Whole-time Directors are given variable component, which is benchmarked against Company performance.

Note: The term remuneration includes value of the ESOP''s issued by the Holding company.

(xi) The ratio of the remuneration of the highest paid Director to that of the employees who are not Directors but receive remuneration in excess of the highest paid Director during the year: Nil

(xii) Affirmation that the remuneration is as per the remuneration policy of the Company: Yes

Note: For Director, only CEO & Whole-time Director, has been considered. All remuneration figures are for Executives only.

CEO compensation also considers financial returns (return on assets, equity, invested capital), total shareholder return and volume growth of integrated metal

annexure 5

ANNUAL REPORT ON THE CSR ACTIVITIES PURSUANT TO THE COMPANIES (CORPORATE SOCIAL RESPONSIBILITY POLICY) RULES 2014.

A brief outline of the Company''s CSR policy, including overview of projects or programmes proposed to be undertaken and a reference to the web-link to the CSR policy and projects or programmes

Company''s vision on CSR is to enhance the quality of life and the economic well being of communities around our operations. For detailed policy, please refer our website www.hzlindia.com. For projects please refer to section on CSR under Sustainability (Business Overview section)

The composition of the CSR committee

Mr. A R Narayanaswamy - Chairman

Ms. Reena Sinha Puri

Mr. Sunil Duggal

Average net profit of the Company for last three financial years

Rs. 10,196.36 Crore (PBT, as prescribed)

Prescribed CSR Expenditure (two percent of the amount as in item 3 above)

Rs. 203.93 Crore

Details of CSR spent during the financial year

a) Total amount to be spent for the financial year

Rs. 203.93 Crore

b) Amount Spent

Rs. 130.20 Crore

c) Amount unspent, if any

Rs. 73.73 Crore

d) Manner in which the amount spent during the financial year is detailed below

Refer next page

In case the Company has failed to spend the two percent of the average net profit of the last three financial years or any part thereof, the company shall provide the reason for not spending the amount in its Board report

We spent Rs. 130.20 Crore as CSR this year. This is a 41% increase over last year''s expenditure and we are continuing to scale up many of our programmes. Several new projects were also launched this year, which are now ramping up.

In addition to the above, the Company has provided Rs. 637.83 Crore as contribution to District Mineral Foundation which is also meant to be spent towards the well-being of persons and areas affected by mining operations.

A responsibility statement of the CSR Committee that the implementation and monitoring of the CSR policy is in compliance of CSR objectives and Policy of the Company

Yes. The CSR Committee of the Company hereby confirm that the implementation and monitoring of CSR policy, is in compliance with CSR objectives and Policy of the Company.

Sunil Duggal

A. R. Narayanaswamy

CEO & Whole-time Director

Director and Chairman of CSR Committee

Camp: London

Place: Mumbai

Date: May 02, 2019

s.

No

CSR Project or Activity Identified

Sector in which the Project is covered

Project or Programme 1. Local area or otherwise 2. Specify the district

Amount Outlay (Rs. in Lac) (budget)

Amount spent (Rs. in Lac)

Cumulative spend till reporting period (Rs. in Lac)

Amount spent, director Implementing Agency

Name of implementing agency

Area

Name of District

Direct

Overheads

Total

1

Vedanta Bal Chetna Anganwadi & Child care Project (KHUSHI Project)

Education

Local area

Udaipur, Rajsamand, Chittorgarh, Bhilwara & Ajmer

2,030

1,805

1,805

5,188

Implementing Agency

Seva mandir, Jatan Sansthan, CARE India, Gramin Evam Samajik Vikas Sanstha, Institute of Financial Management S Research

2

Brownfield & Greenfield Nandghar

Education

Local area

Udaipur, Rajsamand, Chittorgarh, Bhilwara & Ajmer

2,950

1,694

1,694

2,237

Direct& Implementing Agency

Jatan Sansthan, Seva Mandir, Gramin Evam Samajik Vikas Sanstha, Care India

3

Shiksha Sambal Project

Education

Local area

Udaipur, Rajsamand, Chittorgarh, Bhilwara and Ajmer

400

420

420

1,027

Implementing Agency

Vidya Bhawan Society, Avanti Learning Centers Pvt Ltd, Educational Initiatives Pvt Ltd

4

Rural education Program & Company run School

Education

Local area

Udaipur, Rajsamand, Chittorgarh, Bhilwara and Ajmer

2,423

1,098

1,098

6,681

Direct& Implementing Agency

HZL, SUMEDHA, Dean Boy''s Fund, Udaipur; Muskaan Dream Creative Foundation, Resonance Eduventures Ltd, Vedanta Ringus PG Girls College, Round Table India Trust

5

Jeevan Tarang, Zinc ke Sang

Education

Local area

Udaipur, Rajsamand, Chittorgarh, Bhilwara and Ajmer

220

123

123

218

Implementing Agency

Noida Deaf Society, National Handicapped Finance and Development Corporation, Viklang Kalyan Samiti, Badhir Bal Kalyan Vikas Samiti, Badhit Bal Vikas Samiti, V-Shesh Learning Services Pvt Ltd

6

Health, Water & Sanitation including company run hospitals

Health, Water & Sanitation

Local area

Udaipur, Rajsamand, Chittorgarh, Bhilwara and Ajmer

1,930

1,122

1,122

6,200

Direct & Implementing Agency

HZL, Smile Foundation, Jimmedari Foundation, Dainik Bhaskar

7

Hospital Upgrada-tion

Health, Water & Sanitation

Local area

Udaipur

-

-

636

Direct

HZL

8

Vocational training for youth (HZL Mining Acad-emy)

Sustainable Livelihood

Local area

Udaipur, Rajsamand, Chittorgarh, Bhilwara and Ajmer

1,840

990

990

2,217

Implementing Agency

Skill Council for Mining Sector & Indian Institute Skill Development, Team Lease Skills University, Ambuja Cement Foundation

9

Agriculture Project (SAMADHAN Project)

Sustainable Livelihood

Local area

Udaipur, Rajsamand, Chittorgarh, Bhilwara and Ajmer

1,130

642

642

1,392

Implementing Agency

BAIF Institute of Sustainable Livelihood Development

10

Animal Husbandry project

Sustainable Livelihood

Local area

Udaipur, Rajsamand, Chittorgarh, Bhilwara

10

284

Direct & Implementing Agency

BAIF, Government Animal Husbandry Dept.

11

Women Empowerment (SAKHI Project)

Women Empowerment

Local area

Udaipur, Rajsamand, Chittorgarh, Bhilwara

943

540

540

1,295

Implementing Agency

Saheli Samiti & Manjari Foundation, Center for Study of Values (COS-V)

12

Rural Infrastructure

Infrastructure Projects

Local & Otherwise

Udaipur, Rajsamand, Chittorgarh, Bhilwara and Ajmer

1,432

944

944

7,360

Direct & lmplementing Agency

HZL, Ashadham Ashram Society, Waterlife India Pvt Ltd

13

Football Academy

Sports & Culture

Local area

Udaipur, Rajsamand, Chittorgarh, Bhilwara and Ajmer

1,500

1,546

1,546

2,416

Implementing partner

The Football Link, Sanjeev Gupte Architects, Young Monk Communications Pvt. Ltd

14

Ajmer Dargah-Swachh Bharat Abhiyaan

Sports & Culture

Local area

Ajmer

1,000

176

176

272

Implementing partner

Abhimanyu Dalai Architects, Sri Sri Rural Development Programme; N.B. Mercantile Co. Pvt. Ltd.

15

Sports & Culture

Sports & Culture

Local & Otherwise

Udaipur, Rajsamand, Chittorgarh, Bhilwara and Ajmer

532

267

267

1,914

Direct& Implementing agency

HZL, Maharana Kumbha Sangeet Parishad, Seher, Pandit Chaturlal Memorial Trust

16

Social Forestry/ Environment

Environment

Local area

Udaipur, Rajsamand, Chittorgarh, Bhilwara and Ajmer

493

258

258

767

Direct

HZL, Frontier Markets Consulting Pvt Ltd

17

Social Audit, Evaluation, CSR Communications, etc

Programme evaluation

Local area

Udaipur, Rajsamand, Chittorgarh, Bhilwara, Ajmer and Uttrakhand

90

95

95

182

Direct

HZL, Taru Leading Edge, Subhash Mittal & Associates

18

STP- Maintenance and depreciation

Health,Water& Sanitation

Local area

Udaipur

900

840

-

840

3,577

Direct

HZL

19

Program Management

Programme & Administration

Local area

Udaipur, Rajsamand, Chittorgarh, Bhilwara and Ajmer

577

458

458

1,946

Direct

HZL, Adecco India Pvt Ltd, Shrushti Seva Samiti

20

Miscellneous initiatives

Local area

Udaipur

-

-

1,276

Direct

HZL

Total CSR

20,400

12,562

458

13,020

47,086

Director’s Report