NEW AGE.
NEW PARADIGMS.
NEW IDEAS.

INTEGRATED ANNUAL REPORT

2021-22HINDALCO INDUSTRIES LIMITEDBIG IN YOUR LIFE

Message from the Chairman
Over the years, corporations have tried
to find a balance between efficiency andresilience, with successive decades ofgrowth having swung the pendulum inthe direction of efficiency. The events of
the last two years have again taught us
all the virtues of reserves and resilience.
This era of disruption also presents a
unique opportunity for renewal. The
exigencies of this disruption havepushed the boundaries of innovation.
A world where traditional rules
didn’t apply, freed thinking from its
conventional shackles. And we areclearly staring at a new age, with newparadigms and new ideas.

Global Economy:
The Storm Before the Calm?

Dear Shareholders,
Mr. Aditya Vikram Birla

We live by his values
Integrity, Commitment, Passion, Seamlessness and Speed

For many years, we have been talking about increasing
volatility and unpredictability. The events of the last 24
months have heralded a new era of uncertainty where
both the amplitude and frequency of shifts have vastly
exceeded anything we have seen in recent decades.
The unprecedented pandemic was followed by supply
chain whiplash, and further disruption was brought on by
the Russia-Ukraine war. We are now staring at the spectreof a high-interest rate and high-inflation regime globally.

The Global economy recoveredfrom the pandemic shock in 2022
on the back of supportive fiscal andmonetary policies and mass vaccination
programmes. However, at the end of
FY2021-22, the war in Ukraine and thesubsequent economic sanctions on
Russia posed a large shock. It disrupted
energy markets and supply chains
and added to the already evolving
inflationary pressures and concerns
over consumer demand. Consequently,
growth forecasts have been slashed.
The International Monetary Fund (IMF)
now expects the world economy togrow by 3.6% in CY2021-22, which is 0.8
percentage points lower than its pre-war
projections.
Many economies have experienced
a sharp surge in inflation recently,
particularly in food and fuel prices,taking their inflation rates to multidecade highs. Central banks have been
forced to respond to surging prices
with aggressive rate hikes. The pace ofmonetary tightening is turning out to bequite swift as central bankers attempt
to catch up with the rising inflation fromtheir ultra-accommodative stance during
the pandemic.

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Message from the Chairman
India: An Engine of
The trends lend confidence to a robust
Across businesses andeconomic narrative for India in the
Global Growthmarkets, our evolution
medium term, which augurs well for the
The Indian economy has not remained
corporate sector as well.
is a story of continuous
unscathed by these global developments.
renewal and regeneration, Partly on account of the elevated
Aditya Birla Group: Dynamism
commodity prices in global markets,
as we aggressively
and Resilience at Play
India’s inflation has pushed higher thaninvested in growth andthe target of the Reserve Bank of India
The Aditya Birla Group’s pace of(RBI). To control inflationary risks, andactivity, range of businesses, andcreated long-term value
reduce the pressure on the rupee, RBI has depth of global presence provides afor all stakeholders.
been selling reserves and unwinding theuseful compass to navigate this age
extraordinary liquidity support provided
by it during the pandemic.

As the stance of monetary policy shifts,
there is greater turbulence in currency
markets. The dollar has strengthened,
while emerging economies havewitnessed downward pressure on theircurrencies. At the same time, energy
and commodity markets have witnessedheightened volatility. Global supply chain
disruptions due to pandemic-induced
lockdowns have been replaced by new
disruptions caused by the war in Ukraine
and the economic sanctions.
While the global economic backdrop
remains challenging, there are reasons
to remain optimistic. First, despite theslowdown, IMF’s projection of world
GDP growth in CY 2021-22 is still tracking
the pre-pandemic average. Second,fiscal support in developed economies
remains above the pre-pandemic trend,
even if somewhat diluted, versus past
years. Third, mega-trends aroundsustainability, green investments,
digitisation, and disintermediation
remain well‑entrenched and will support
growth and productivity enhancement in
the medium term.
Thus, while businesses will needto remain on guard regarding financial
market volatility and cost pressuresthis year, one could expect themedium-term growth recovery toremain on track.

2

HINDALCO INDUSTRIES LIMITEDOn the positive side, economic activity
in India has witnessed a sharp recovery
to pre-pandemic levels on the back ofa rapid and widespread rollout of thevaccination programme. A strong digital
ecosystem, fiscal and monetary policy
and various government schemes helped
small and medium enterprises and theworst affected sections of the population
to survive while reviving demand andbringing the economy back on track.
Even as the global headwinds arebeing felt, India’s growth recovery is
progressing well, and most estimatespeg economic growth during FY 2022‑23
around the 7% range. India, therefore, ispoised to be the fastest-growing major
economy in the world and an engine ofglobal growth.
India’s exports are exhibiting a strong
buoyancy, and economic sentiment has
been supported by a robust pipelineof infrastructure projects as well as thegovernment’s pragmatic policies, suchas the production-linked incentives
schemes. Many industries have witnessed
fresh project investment announcements.
Foreign direct investment flows haveremained strong. The burden of
non‑performing assets in the banking
sector seems to have peaked out andis easing. Dynamism in India’s digital
ecosystem, diversification of global
supply chains, away from China, andthe greater emphasis of investors
on sustainable finance offer newopportunities for India.

of disruption. Against the backdrop of
our long history as a Group, dynamism
leaps out as a common theme. Overthe years, we have witnessed multiple
business cycles.
Across businesses and markets, ourevolution is a story of continuous
renewal and regeneration, as weaggressively invested in growthand created long-term value forall stakeholders. This institutional
dynamism and resilience helped usnavigate an unprecedented businessenvironment in FY2021-22.

The pandemic inordinately impacted
the future of work, workforce, andworkplace. We have moved with the
new work ethic by focusing on a holistic
employee experience that puts equal
emphasis on growth, engagement,
and wellbeing.
Our employees value and appreciate the
One ABG culture, which is profoundly
embedded across the organisation.
This culture gives the ultimate
competitive edge in a world wherebusiness models are easily upended.
It has been a matter of great pride forus that our employee engagement
has continued to be strong despite thestresses of the pandemic. 87% of ouremployees stated in a survey that they
have a colleague/friend at work to leanon during difficult times. 96% of ouremployees experienced considerate
behaviour from their managers during
this period.

We Are Only as Strong as Our
PeopleThe Group’s continued focus andinvestment in its People Processes ingood times have helped us build andsustain a robust and agile workforce thatis able to be nimble and responsive at all
times. When corporates across the world
are facing a rather unusual phenomenon- The Great Resignation - our employee
survey score for Intent to stay remained
strong. It is higher than the Global High
Performing organisations and almost
similar to pre-COVID levels. This strong
affinity is a testimony to our relentlesscommitment to delivering a world ofopportunities with care to our employees.
Internal employee movements of over
5,000 (within the businesses) were up
18% from the average of the last two
fiscals. We also focussed on bringing
in young talent, with 73% of new hires
being under 35 years of age. Last year,
over 9,000 new employees joined theGroup refreshing our competence base.
Building an aspirational workplace
for a diverse workforce was identified
as one of the important aspects ofour new HR strategy. Enhancing thediversity of our Group is a journey, and
it is getting strengthened with targeted
efforts over time. Our commitment
to gender diversity is evident throughthe appointment of 7 women to seniorleadership roles. 21% of all new hires
were women, and we had 102 womenengineering graduates join us atplant locations.
We have always looked for opportunities
to showcase the power of our womenleadership. This year, our cementbusiness, UltraTech launched India’s
first ‘all-women’ operated Ready-Mix
Concrete (RMC) manufacturing plant at
Bhugaon, Pune. Our list of firsts includes
Aditya Birla AMC’s all-women Mutual
Fund branch in Bhilai, Chhattisgarh andAditya Birla Fashion and Retail’s Madura
manufacturing plants in the South zone,
which has 85% women employees.

Internal employee movements of over 5,000(within the businesses) were up 18% from theaverage of the last two fiscals. We also focussed
on bringing in young talent, with 73% of newhires being under 35 years of age. Last year,
over 9,000 new employees joined the Group
refreshing our competence base.

Our learning strategy evolved
continually to adapt in response to the
dynamic external environment. This wasachieved by re-designing innovative
learning properties and methodologies
focussing on building contemporary
and contextual skills. We shifted gears
across digital, blended, and now hybrid
learning, making it easier to shift acrossmodes of learning for different sets oflearners. We strategically increased theadoption and penetration of our digitallearning platform (Gyanodaya Virtual
Campus) to cover 94% of our employees
in the management cadre. Leveraging
the power of internal and external
networks, 500+ high-quality digitalcontent modules were created on various
themes and topics across ABG.
The spirit of ABG’s resilience anddynamism was displayed at anindividual, team and business level.
This has been reflected in the businessresults for FY2021-22.
This year also saw the launch of new
businesses, units, capacity, products,
and brands. This happened seamlessly,
presenting a unique human story ofinnovation and grit; and bringing alive
our Group values of commitment andpassion. We have together navigatedan unprecedented period of disruption
and emerged stronger and sharper—
demonstrating that care, empathy,
and results are mutually compatible.
Especially so in periods of turmoil.

Your Company’s PerformanceYour Company delivered its exceptional
financial and operational performance
consolidated performance in FY2021-22,
backed by favourable macros, better
cost control and operational efficiencies.
This record performance was delivered
despite challenges like the ongoingpandemic, a steep inflation in input
costs, volatility in commodity prices, andglobal supply chain disruptions due tothe geopolitical situations.
Despite these headwinds, your Company
registered an all-time high consolidated
business EBITDA of `30,056 Crore on aturnover of `1,95,059 Crore in FY2021‑22.
Your Company's aluminium business inIndia and Novelis continued to delivera record financial performance, despite
tough market conditions caused byinflationary challenges and rising
input costs.
The major enablers were improved
macros, thrust on operational
efficiencies and improved performanceof India downstream business and astrong revival of demand. All the plants
operated at their designed capacities
during the year in both Aluminium
and Copper. Hindalco's consolidated
EBITDA continued to be delinked fromthe volatility of the global aluminium
prices taking together the EBITDA ofNovelis, Copper and India Aluminium
downstream VAP.

Integrated Annual Report 2021-22

3

Message from the Chairman
Your Company retained
its position of being
World’s Most Sustainable
Aluminium Company(as per S&P Dow Jones
Sustainability Indices
Corporate Sustainability
Assessment 2020 & 2021)
and the only aluminium
company in the DJSIWorld Index 2021.

Novelis reported yet another remarkable
performance this year with a record
shipment of 3,858 kt, adjusted EBITDA
of $2.045 Billion. The adjusted EBITDA/
tonne of $530 was also the highest ever.
Novelis continues to improve its productmix with the share of beverage can sheet
at 58%, Automotive body sheets at 17%,
Specialties at 23% and Aero at 2% in
FY2021-22. Novelis reported the share ofrecycled contents at 57% in FY2021-22,
and continues to be world's largest
recycler. Your Company continues tofocus on strengthening the balance
sheet with the consolidated Net Debtto-EBITDA at 1.36 times at the end of the
FY2021-22 from the peak of 3.83 times atthe end of June 2020 post the closure of
the Aleris acquisition and 2.59 times atthe end of March 2021.

As a step towards the downstream
expansion plans in India, your Company
acquired Hydro’s aluminium extrusions
business in Kuppam, Andhra Pradesh,aligned with its’s strategy to increase
downstream capacity to meet thegrowing market demand, further expand
product portfolio and increase revenue
from value-added products. The Kuppam
plant will also serve as an archetype for
Hindalco’s upcoming state-of-the-art
extrusions plant in Silvassa in Western
India. Your Company intends to build alarger value-added product portfolio
over the next few years.

On the back of this strong andexceptional performance and with astrong balance sheet, your Company
announced a total capital expenditureof nearly $8 Billion to be spent overthe next five years in India and Novelis
together. All these investments are
directed towards your Company’s focus
on transformational organic growththrough expansion in the downstream
businesses in Novelis and India. This
investment includes Novelis’ identified
more than $4.5 Billion worth ofpotential organic opportunities to serve
the growing demand for sustainable
aluminium products. In the India
business, your Company has announced
a capex investment of around $3-3.3
Billion that shall be allocated to highgrowth downstream projects in thegrowing segments of EVs, E-Mobility,
Packaging, Batteries, Building &Construction, and Consumer Durables.

Your Company’s Copper business,delivered a strong performance acrossall fronts amid challenges posed by
the pandemic, rise in LME, and supply
chain disruptions. In FY2021-22, yourCompany acquired Polycab’s CCR unit,
Ryker (now Asoj) having a capacity of
2,25,000 MT of copper rods in Gujarat.
Post this acquisition, Birla Copper
now ranks among the world’s Top-3
copper rod players outside of China.
The cathode production was 359 kt in
FY2021-22 versus 262 kt in the prior year.
The Continuous Cast Rod production was
higher at 259 kt in FY2021-22, versus 235
kt in the previous year.

4

HINDALCO INDUSTRIES LIMITED

During FY2021-22, your Company
retained its position of being World's
Most Sustainable Aluminium Company(as per S&P Dow Jones Sustainability
Indices Corporate Sustainability
Assessment 2020 & 2021) and the only
aluminium company in the DJSI World
Index 2021. In addition to this, yourCompany also achieved the prestigious

Gold Class Distinction in the ‘S&P
Global Sustainability Yearbook’ of2022. This sustainability-led approachto business has enabled your Company
to strengthen its balance sheet and
set global benchmarks on sustainablebusiness practises. These affirmations
inspire your Company to continue towalk the path of sustainability.

Conclusion
The forces of change engulfing theworld are creating a whole new set of
exciting possibilities and unbelievable
opportunities. Many that didn’t evenexist yesterday. We are uniquely
privileged that we are not passive
recipients of changing circumstances but
can actively shape our destiny. And thistomorrow is for us to discover and build.
Across businesses, we are at the cuspof a transformational growth cycle.
As a business house, we have always
made investment decisions based onlong-term fundamental drivers likemarket opportunity, demography,
technology, etc. Our strong leadership
position across key businesses hascome on the back of bold but calibrated
long-term bets. Given the inherent
strengths of your Company, we are again
at a moment where we are uniquely
positioned to invest for long-term
growth and explore new paradigms.
An exciting journey beckons.

Aditya Birla Group (ABG),a global conglomerate with a turnoverof $60 Billion, is in the league of
Fortune 500 companies.
Headquartered in India, the Group
has a diversified business portfolio
and presence across 14 industry
sectors, employing more than
1,40,000 employees belonging to
100 nationalities. It has achieved
global and national market leadershipin several sectors like metals, pulp
and fiber, chemicals, textiles, carbon
black, cement, financial services, andfashion retail.

a sustainable business model withresponsible stewardship, stakeholder
engagement and future proofing as its
three pillars.
ABG has now embarked onsustainability journey 2.0 with afocus on mainstreaming ESG. Oursustainability journey follows a fourdimensional approach which considers
industry, sectoral and operational
uniqueness, geographies of operation,
value chain approach to include key
stakeholder expectations, and shortand long-term time horizons.

All the Group companies are driven
by five core values – Integrity,
Commitment, Passion, Seamlessness
and Speed. ABG believes in following

Aditya Birla Group Presence

Canda

RussiaKumar Mangalam Birla

SwedenChairman

UK

Germany

Switzerland Slovakia
Hungary
Italy
TurkeyUSA

Spain

Bahrain
UAE

Egypt

Ivory Coast
Kenya

BoliviaParaguay

South Korea

Bangladesh
India
MyanmarThailand
VietnamPhilippines

Sri Lanka

Tanzania
BrazilChina

Singapore
Indonesia

ZambiaMozambique
Australia

For more details visit:www.adityabirla.com

CONTENTS
Corporate Overview
07

About the Report09

New Age. New Paradigms. New Ideas.

10

Our Businesses at a Glance

14

Our Global Footprint

16

Leadership Team

18

Board of Directors

20

ESG Highlights

22

Assimilating Industry 4.0

24

Digitalisation at Hindalco

26	Message from the Managing Director

Strategic Overview
30

Our Business Model

32

Our Strategic Priorities

34

Building Resilience40

Stakeholder Engagement

44

Materiality Assessment

Our Capitals
46

Financial Capital

54

Manufactured Capital

68

Human Capital

92

Intellectual Capital

100 Natural Capital
130 Social and Relationship Capital

Statutory Reports
164	Management Discussion & Analysis
182 Financial Highlights
186 Directors’ Report
225 Social Report230	Business Responsibility andSustainability Report
246 Corporate Governance Report
262 Shareholder Information

Financial Statements
274	Consolidated Financial Statements

About the Report
We are proud to present our second Integrated Annual Report showcasing
our efforts to create global sustainability benchmarks. The report is basedon the Value Reporting Foundation’s Integrated Reporting Framework. The
Value Reporting Foundation is a global non-profit organisation comprising theInternational Integrated Reporting Council (IIRC) and Sustainability AccountingStandards Board (SASB).
This report covers the disclosure of our performance across six key capitals Financial, Manufactured, Intellectual, Natural, Human, as well as Social and
Relationship. Apart from our performance, the report highlights our value creation
efforts for our stakeholders, identifies risks, opportunities and mitigation plans in
the backdrop of a fast-changing external environment and our long-term strategy.

Reporting Principle

Reporting Period

Forward-looking Statement

The non-financial performance has
been reported in accordance with
the Global Reporting Initiative (GRI)
2021 Standards. The report is alsoaligned with Business Responsibility
and Sustainability Report (BRSR),
principles of the United Nations Global
Compact (UNGC), Sustainability
Accounting Standards Board (SASB) as
well as the United Nations Sustainable
Development Goals (UN SDGs).

The information is reported forthe period from 1st April, 2021 to
31st March, 2022.

There are few statements in the reportthat refer to our future operations andperformance. The forward-looking
statements and the identified risks
are necessarily based on projections
and trends in the industry and could
differ from the actual results. Thesestatements include all the statements
other than historical facts, performancehighlights, strategy and mitigationplans, and objectives.

The financial and statutory details
disclosed in this report are as per
the requirements of the Companies
Act, 2013 (including the rules madethereunder); Indian AccountingStandards; the Securities andExchange Board of India (Listing
Obligations and Disclosure
Requirements) Regulations, 2015; andthe Secretarial Standards issued by
the Institute of Company Secretaries
of India.

Scope and Boundary
The report covers the financial andnon-financial parameters of Hindalco
Industries Limited. This includes our
India operations of aluminium andcopper businesses; along with ourwholly owned subsidiary, Novelis Inc.

Independent Assurance
The standalone and consolidated
financial statements contained in
the Financial Statement section areaudited by independent auditors
Price Waterhouse & Co. Chartered
Accountants LLP. The non-financial
assurance is carried out by Ernst andYoung Associates LLP. The assurance
is based on International Standard on
Assurance Engagements (ISAE) 3000
and AccountAbility 1000 AssuranceStandard (AA1000AS). The assurance
statement is part of this report.

Feedback
We publish our reports annually.
The previous Integrated Annual
Report was published in July 2021,
and is available on our website.
We value your feedback, which willcontinue to enable us to disclose
relevant information in the mosteffective and transparent manner.
We would be happy to address any
queries or suggestions that you may
have with respect to our performanceor this report. You may write to us
at hilinvestors@adityabirla.com orcontact us on (+91-22) 6691 7000.

443 Standalone Financial Statements582	Independent Assurance Statement
on Integrated Report

6

Integrated Annual Report 2021-22

7

NEW AGE.
NEW PARADIGMS.
NEW IDEAS.
Growth propelled
through our emphasis
on Digital and ESG.

Over the years, Hindalco has built a responsible,
resilient and agile business, making great strides inour journey towards a greener, stronger and smarter
future. Guided by our strong risk management
practices we have responded seamlessly to challenges
during the pandemic and thrived in a world rife withthe uncertainties.
In FY2021-22, as part of our downstream
expansion strategy, we acquired two
facilities in India: Asoj, a CCR unit in
Gujarat and Kuppam, and a high-end
extrusions facility at Andhra Pradesh.
Despite strong headwinds, we reported
our best ever financial performance inthe 2022 fiscal.
This was possible due to our continued
focus on sustainable business practices
and the relationship of trust we havebuilt with our customers, suppliers
and the community at large, over theyears. Through this enriching journey,
we have prepared ourselves to makethe most of the opportunities that the
post-pandemic world has presented
before us, by embracing new ideas andnew paradigms in ESG and digitalisation.
We are building on this momentum andadvancing from being a manufacturing
company to a manufacturing solutions
provider, as we embark on the next
phase of organic expansion.
Thinking and acting proactively on ESG
has become imperative for businesses
to grow. We have integrated ESG into
our core strategy, risk management andbusiness objectives across functions of
the organisation. Through our continued

8

efforts we have been recognised as theWorld’s Most Sustainable Aluminium
Company in the world according to the
Dow Jones Sustainability Index (DJSI).
Hindalco has also maintained its position
as an Industry Leader in 2021 andentered the DJSI World Index.
The rapid development in technology
across the world has transformed thefundamentals of creating value. To keep
up with the changing times, we haveembarked on a journey towards ‘Smart
Hindalco’. We are turning factories into
smart factories with swift deployment
of automation. We are supporting ourpeople with the insights of powerful
analytics and augmentation. Our
collaborations with Industry leadersin the digital space have enabled us to
speedily deploy technologies acrossthe value chain providing solutions tocomplex problems.
Through the lens of the six-capitals,
our Integrated Annual Report provides
a narrative of our strategic vision, ouroverall performance and the way wecreate value for stakeholders and thecommunity at large.

Integrated Annual Report 2021-22

9Strategic Overview

Corporate Overview

Our Capitals

Statutory Reports

Financial Statements

Our Businesses at a Glance

Hindalco Industries Limited isthe metals flagship companyof the Aditya Birla Group.
We are the world’s largest aluminium
rolling and recycling company. One ofAsia’s largest producers of primaryaluminium (Ex. China), we are also thelargest aluminium downstream player
in India providing customised solutionsin flat rolled products and extruded
aluminium solutions.
Novelis, our wholly owned subsidiary, isthe world’s largest aluminium Flat Rolled
Products (FRP) producer and aluminium
recycler, recycling over 82 Billion cansannually. Novelis’ diversified productportfolio caters to beverage cans,

10

HINDALCO INDUSTRIES LIMITED

automotive, aerospace and specialties
end markets. Our copper facility in India
comprises a world-class copper smelter,
downstream facilities and a captive
jetty. Hindalco is India’s largest copper
producer, contributing significantly
to India’s domestic refined copper
requirements.
Our global footprint spans
17 manufacturing units and 21 mining
operations in India and 33 units
overseas. We aim to advance from beinga manufacturing company to one thatprovides comprehensive manufacturingsolutions. In fact, in pursuit ofsustainable (and green) growth, ouraluminum business is making a stepchange extending its ambition frombeing an upstream player to building

a differentiated B2B and B2C business,
focussing on materials and value-added
products and solutions.
With an ambition to be the world’s
leading provider of low carbon andsustainable aluminium solutions,
we have committed to become carbon
neutral by 2050, in addition to other ESG
commitments. Guided by our purposeof building a greener, stronger, smarter
world, we provide innovative solutions
for a sustainable planet. In recognitionof our sustainability practices, we werenamed the world’s most sustainable
aluminium company in the Dow Jones
Sustainability Indices (DJSI) for two
consecutive years 2020 and 2021.

Integrity

Commitment

PassionSeamlessness

Speed

Honesty in every
actionOn the foundationof integrity, doing
what it takes
to deliver, as
promised

Missionary zeal
arising out ofan emotional
engagementwith work

Thinking andworking together
across functionalsilos, hierarchy
levels, businesses,
and geographies

Responding tostakeholders
with a sense ofurgencyIntegrated Annual Report 2021-22

11

Our Businesses at a Glance
Products and Markets:
Our Diversified Offerings
We are an industry leader operating in mainly
three business verticals- aluminium, copper,and chemicals. More details of our assets andofferings can be found in the manufactured
capital in later chapters.

Aluminium

CopperChemicals• Primary aluminium• Cathodes• Calcined alumina• Aluminim value added• Continuous Cast Rods (CCR)• Alumina hydrate− Flat Rolled Products (FRP)− Extrusions− Foils and packaging solutions• Metallurgical aluminaMarkets Served• Gold and Silver• By-products− Di-Ammonium Phosphate(DAP)− Sulphuric acidMarkets Served• Advanced ceramics andcatalysts• Refractories• Polishing• Beverage packaging

Markets Served• Glass• Automotive and transport• Automotive and transport• Aerospace• Consumer durables• Electrical and electronicequipment• Pharmaceuticals and foodpackaging• E lectrical equipment including
wire and cable• Consumer durables andkitchenware• Railway electrification• Building and construction• Electricals and electronics• Industrial applications• EV and renewables• Water treatment (Alum/PAC)• F
 ire retardant fillers: cables
and composites

Strategic Overview

Corporate Overview

Our Capitals

Statutory Reports

Financial Statements

Our Global Footprint
We are primarily involved in the businessof aluminium and copper, operating across
10 countries with 50 established units.
Our operational footprint across India has
been indicated on the map.

Our Key
Associations
We have been associated withseveral reputed trade and industrial
bodies. Some of the associations are
mentioned below:

2• International Aluminium InstituteNorth America andSouth America

5

6

1

• Aluminium Association, U.S.A

Europe and the UK

4• European Aluminium Association
Asia

7

8

• International Copper Association

9• Aluminium Association of India• F ederation of Indian Chambers ofCommerce and Industry• Confederation of Indian Industry• A utomotive Research Associationof India3• Indian Electrical and Electronics
Manufacturers’ Association• Indian Primary Copper Producers
Association• F ederation of Indian Export
Organisations

2

4

21

9
14

17
11

8

18

20
10
19
12

1

15

21

7

13
16

13 Hirakud S&P

3 Alupuram

15 Hirakud FRP

North America andSouth America

Europe and the UK

Asia

17 Mouda

Novelis Inc.

4 Germany

8 China

5 UK

9 South Korea

2 Renukoot

6

22

4 Renusagar
5 Belagavi

5

6 Utkal Alumina
7 Belur works

23

8 Samri
9 Dahej

10 Netarhat
11 HAAL3

12 Lohardaga
CPP

Refinery

Novelis’ Global Operations

1 Aditya Aluminium

Smelter

Extrusion/FRP/Foil

14 Asoj

16 Baphlimali
18 Kathautia

1 US

19 Muri

6 Switzerland

2 Canada

20 Gare Palma

7 Italy

3 Brazil

21 Mahan
22 Taloja

23 Kuppam

BauxiteCoal

Copper

R&D/Technology Centre

Automotive Finishing

Cold Rolling

Finishing Lines

Casting

Hot Rolling

Recycling Facility

Note: The map is not to scale and an artistic representation only.

14

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

15

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Leadership Team

Left to right standing
Mr. B. Arunkumar
Head – Aluminium Downstream
Strategic Projects

Mr. Rajesh Kumar Gupta
Head-Mining & Minerals

Mr. V.R. Shankar
Head – Legal

Mr. Satish Pai
Managing Director

Mr. Nilesh Koul
Head – Downstream Aluminium Business

Mr. N. Nagesh
Head – Renukoot Cluster

Mr. Kailash Pandey
Head – Sambalpur Cluster

Mr. Praveen Kumar Maheshwari
Chief Financial Officer

Mr. Sanjay R. Agarwal
Head – Strategic Procurement

Left to right sitting
Mr. Mazharullah Beig,
Unit Head – Utkal Alumina International Limited

Mr. Bibhu Mishra
Head – Manufacturing Centre for Excellence

Mr. Saurabh Khedekar
Head – Chemicals Business

Mr. Anil MalikCompany Secretary

Mr. Rohit Pathak
CEO, Copper Business

Mr. Aniruddha Kulkarni
Chief Strategy Officer

Mr. Anil Mathew
Head – Policy Advocacy and Chief Risk Officer

Mr. Samik Basu
Chief Human Resources Officer

16

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

17

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Board of Directors
Mr. Kumar Mangalam Birla
Non-Executive Chairman

NRC

AC

Audit Committee

CSRC CSR Committee
NRC	
Nomination and Remuneration
Committee

Mrs. Rajashree Birla
Non-Executive Director

Mr. Satish Pai

Mr. Yazdi Piroj Dandiwala

Dr. Vikas Balia

Managing Director

Independent Director

Independent Director

CSRC

PIT

FC

AC

NRC

CSRC

PIT

Independent Director

CSRC

RMC

Mr. Praveen Kumar
Maheshwari

Mr. Askaran Agarwala

Mr. Kailash Nath Bhandari

Mr. Sudhir Mital

Mr. Anant Maheshwari

Non-Executive Director

Independent Director

Independent Director

Independent Director

Whole time Director & CFO

SRC

Ms. Alka Marezban
BharuchaAC

RMC 	Risk Management & ESG
Committee
SRC	
Stakeholder RelationshipCommittee
PIT	Prevention of Insider Trading (PIT)
Regulations Committee
FC

Finance Committee
ChairmanMemberRMC

18

HINDALCO INDUSTRIES LIMITED

SRC

CSRC

RMC

FC

AC

SRC

NRC

RMC

Integrated Annual Report 2021-22

19

ESG Highlights

Environment

SocialGovernance

Energy and GHG Emissions Management

Occupational Health & Safety

Ethics and Integrity

Water Management

Employee well-being

Economic Performance

Waste and Hazardous Material Management

Community Relations

R&D Innovation and Technology

Air Emissions

Security and Human Rights

Compliance Management

Compliance Management• 2
 .89 Million GJ energy saved
through 170 energy and emissions
reduction projects• 100% increase in cumulative
Renewable Energy Capacity to
100MW*• 9 % reduction in specific freshwater consumption for aluminium
operations (baseline FY2018-19)*• 8
 6% waste recycled and reused;
6% (basis points) increase
compared to FY2020-21• 1 8% reduction in specific
GHG emissions for aluminium
operations (baseline FY2011-12) *• $140 Million allocated for
identified green bond projects by
Novelis• 82+ Billon used beverage cansrecycled annually by Novelis

20

HINDALCO INDUSTRIES LIMITED• 57% recycled content acrossNovelis portfolio.
• 10% yoy increase in Greenbelt
4.53 Lakh trees planted in
FY2021-22*• G reenPro Certification /EcoLabel received for Eternia
products and Everlast• A
 SI certification awarded to
Mouda plant in India, in addition
to 14 plants at Novelis alreadyASI certified• `87.6 Crore investment oncommunity development
projects• Novelis Neighbor- global
programme for community
development• 1 .26+ Million beneficiaries
through our community
development programmes*• 2
 3,212 Self Help Group (SHG)
members supported withfinancial literacy and conceptual
training*• 3
 67 students received
scholarships*• 3,379 people received disaster
relief support*• `1,48,236 Crore Procurement
spend
• 7
 .22% women in total
workforce; 30%+ womenamong campus hire
• 3.5 Million hours of training• 39% reduction in LTIFR overlast financial year*• 85% VIBES employee survey
score (employee engagement
index) *• G
 reat Place to Work™
certified and recognised
as GPTW’s Best employers
among Nation builders*• Highest ever consolidated
revenues at `1,95,059 Crore with
47% yoy increase• `716 Crore spent on R&D• 40 new products developed• Acquired two downstream
facilities in India-Asoj (Cu) and
Kuppam (Al)• A
 ll employees covered under the
POSH training programme• O ne ERP ‘Ekaayan’ phase-wiserollout• 6
 4% Net Promoter Score(Hindalco extrusion) **The details provided are for Hindalco India operations.

Integrated Annual Report 2021-22

21

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Assimilating Industry 4.0
We intend to LEAD industry by digitally transforming businessprocesses, thereby creating an accelerated pathway for growth.

L

E

A

D

Leverage Partnerships

Efficient Automation

Augment Intelligence

Digital Savvy Capability

Unlocking Value with Digital Transformation
We are accelerating digital innovation by leveraging partnerships within Aditya Birla Group and encouraging
a digital culture across the organisation. Our focus has been on improving efficiency through technologicalupgrades, deploying analytical solutions to augment human intelligence and nurturing workforce withrequired skills to lead the digital era.

DigitalObjectives

Smarterplants22

Delighted
employees,
customers andsociety

Digital savvy
workforce

Efficient
Supply Chain

Integrated Annual Report 2021-22

23

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Digitalisation at Hindalco
Overall Impact J75+ Crore estimated

DIGITAL INITIATIVES

SMART FACTORY

LOGISTICSASSET RELIABILITYPRODUCTIVITYPROCUREMENT

70+ across value chain

Driving downstream
manufacturing processes
through Industrial IoT

End-to-end digitisation at
7 locations using AI platform,
Logistics Insights Tower

Predictive Asset
Maintenance at 5 locationsfor 200+ Assets

RPA and Drones eliminating
repetitive activities resulting
in 1,000’s of hours saved

Machine Learning based
Price Forecasting Models
for market shocks

YIELD & QUALITY

BASIC INFRAOPERATIONSSAFETYCAPABILITY

Multiple Machine Learningmodels and Digital Twin
solutions to improve core
metrics by up to 1%

L2 integration, Historiansystems etc. to ensure Basic
infra at all locations

Rapid deployment of AR
during early days of COVID
in response to travel
restrictions resulting inseamless operations

Integrated Digital Safety
solution through VEDA,
Confined Space monitoringand sensors

Reached 2,000+
employees through the
DISHA programme andcreated 175+ Citizen
Data Scientists

24

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

25

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Message from the Managing Director
Sustainability on a global scale
Dear Stakeholders,
In a globalised marketplace, the industry is
increasingly prone to extreme disruptions.
In recent times, we have already witnessed thevolatility associated with global pandemics,
climate events and war. At Hindalco, and theAditya Birla Group at large, the organisational
ethos is built on resilience and willingness totake on all challenges. There is another credo
equally at play – our ability to welcome change.
To anticipate the rising of a new age, replete withnew ideas. To embrace new paradigms and theopportunities that arise. That is the essence ofsustain-ability at Hindalco.

Through the years and despite thebuffets of market volatility, ouroperational focus has consistently
been on smart and strategic growth,shaped by the shift towards digitaltechnologies and driven by our
ESG commitments. Our efforts to stay
future ready has allowed us to reachand retain the position of World’s
Most Sustainable Aluminium Company(as per S&P Dow Jones Sustainability
Indices Corporate Sustainability
Assessment 2020 & 2021). You may bepleased to note that we are the only
aluminium company in the DJSI World
Index 2021.
Our growth journey has taken us to
10 countries and 4 continents, making
Hindalco-Novelis one of the world’s
largest non-ferrous companies.
Novelis is the world’s largest rolling
products and recycling company inthe world. In the past year, Novelis
has announced several expansion
projects including a $365 Million
highly-advanced automotive recycling
centre in Guthrie, North America anda $375 Million investment to expand
its rolling and recycling capabilities in
Zhenjiang, China. In India, Hindalco has
invested in extending our downstream
footprint, thus making us the largest
fully integrated aluminum player goingfrom alumina right to value-added andcustomised products.

Resilience in Action
Hindalco delivered an exceptional
financial and operational performancedespite it being a tough year.
There were several challenges suchas the pandemic, a steep inflation in
input costs, volatility in commodity
prices, and global supply chain
disruptions. In the face of theseheadwinds, Hindalco persevered anddelivered record-breaking profitability
for the year. Consolidated Net Profit
for the year grew four times to`13,730 Crore. Consolidated EBITDA
was up 59%, at `30,056 Crore in
FY2021-22. The powerful financial
performance has further strengthened
the Company’s balance sheet. It has
significantly reduced consolidated net
leverage ratios from 2.59x in FY2020-21
down to 1.36x at the end of FY2021-22.
We achieved notable milestones acrossall business segments:

Novelis• N ovelis’ capacity crossed 4 Mn MT
reinforcing our position as theworld’s largest FRP (Flat Rolled
Products) producer• N et sales peaked to an all-time highof $17.1 Billion• N et income crossed the $1 Billion
mark

Our efforts to stay future ready has allowed us to reachand retain the position of World’s Most Sustainable
Aluminium Company. You may be pleased to notethat we are the only aluminium company in the DJSIWorld Index 2021.

`30,056 CR
EBITDA`13,730 CR
Net Profit

1.36x

Net leverage ratio• O perating cash flows touched$1 Billion This strong financial
performance has significantly
reduced net leverage ratiosfrom the peak of 3.8x post‑Aleris
acquisition, down to 2.2x at the endof FY2021‑22

India Aluminium
All our aluminium plants achieved
record production with lowest raw
material consumption.
We successfully commissioned the
5,00,000 tonne brownfield alumina
facility at Utkal amid the pandemic,
ramping it up to rated capacity in lessthan a week. With our continued focus
on operational excellence and cost
control, supported by strong macros,
Aluminium India business EBITDA
touched `13,025 Crore, a 139% growthyoy. EBITDA margins at 41% remained
one of the highest in the industry. The
results were bolstered by an improved
performance by our downstream
business validating our strategy ofbuilding a sustainable business model
isolated from metal cycles.

Integrated Annual Report 2021-22

27

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

women GETs has gone up from 18%
in 2018 to 41% in 2022.

1.26 MN

Financial Statements

Message from the Managing Director
We made a bold move last year when we
unveiled our vision for sustainability, with strong
commitment towards achieving carbon neutrality,
water positivity, no net loss on biodiversity andzero waste to landfill by 2050.
We also decided to put interim targets for India
operations on specific energy reduction by
25% from FY2012, specific freshwater reduction
by 20% from FY2019 per tonne of Aluminium,
water positivity in downstream and mining
verticals, 300 MW Renewable Energy capacity andZero liquid discharge across units by 2025.
We have done exceptionally well on all fronts
this year and our sustainability performance isa testament to that.

We completed the acquisition of
Hydro’s aluminium extrusions
business in Kuppam, Andhra
Pradesh. The acquisition is alignedwith Hindalco’s strategy to increase
downstream capacity to meet thegrowing market demand and increase
revenue from value-added products.
The Kuppam plant will also serve as
an archetype for Hindalco’s upcoming
state-of-the-art extrusions plant in
Silvassa in Western India.

CopperBirla Copper delivered a strong
performance across all fronts amid
challenges posed by the pandemic,rise in LME and global supply chain
disruptions. The business achieved
its highest ever domestic sales on theback of stable operations and a sharp
market focus. EBITDA for the year
showed a 60% growth yoy at `1,390
Crore.

28

HINDALCO INDUSTRIES LIMITEDIn FY2021-22, we completed theacquisition of Ryker’s 2,25,000
tonne copper rod facility in Gujarat.
Birla Copper now ranks among theworld’s top-3 Copper Rod players
outside of China.
We also entered two new segments–i) Cu-Mg Alloy rods for railways, andii) Inner Groove Tubes for ACs, where
we successfully qualified under the
PLI scheme to manufacture thesein India. With Copper being a key
metal in India’s accelerating journey
towards Electrification, Urbanisation,
Renewables and E-Mobility, Birla
Copper is on the cusp of a strong
growth trajectory.

Specialty Alumina
The Specialty Alumina businessrecorded impressive growth in theface of multiple pressures. Specialty
Alumina is a very versatile product withapplications across various industries

like ceramics, wires and cables,
electrical, electronics, refractories(for steel, cement and glass) as wellas niche applications like water
treatment, solid surfaces, medical andpetrochemicals.
In FY2021-22, the business diversified
its product offering with multiple newhigh-tech products for value-added
applications in the wire and cables,refractories and abrasives segments.
The industry is growing at about 5%
globally, and domestically, between
10% to 18% with elevated growth on thehigher-end of VAP range. We believe
we are well-poised to capitalise on
the opportunity with our cutting-edgevalue-added product range.

Seeding New Growth
The sound financial performanceand strong balance sheet positions
Hindalco well to embark on a new waveof growth. We have announced a total
capital expenditure of about $8 Billion
over the next five years. Our focus ison driving transformational organic
growth by expanding the downstream
business in Novelis, and India. Novelis
has identified potential investment
opportunities of more than $4.5 Billion
to serve the increasing demand forsustainable aluminium products. In the
India Business, we have announced
a capex of nearly $ 3 Billion. 70%
of our consolidated cash flows willbe allocated towards high-growth
downstream segments - EVs,
Mobility, Packaging, Batteries, B&C,
Consumer durables.

The Greener, Stronger,
Smarter Way
We have taken bold bets to achieve
our targets of carbon neutrality, water
positivity, no net loss on biodiversity
and zero waste to landfill by 2050.
We have progressed on all fronts:i.	We have reduced specificfreshwater consumption by 9%and 27% in India Aluminium andCopper businesses respectively,
over the FY2018-19 baseline.
This is towards our target of 20%
reduction by 2025.
ii.	We have met our current targetsof 100 MW renewable capacity,and going ahead, we intend toachieve a renewable capacity of
300 MW by FY2024-25, including
100 MW solar power capacitywith hybrid storage.
iii.	Zero waste to landfill is being
pursued by all units throughexternal collaborations.
Our waste recycling is at 86%
this year, up 6 percentage points.
We achieved 114% ash utilisation,and near 100% utilisation of red
mud at three of our refineries.
iv.	Our goal for No Net Loss on
Biodiversity at sites by 2050
is being roadmapped by ourpartnership with IUCN. We havebeen implementing biodiversity
management plans at five of oursites this year and are adding
nine more. The cumulative green
belt in FY2021-22 has grown by
10% over the previous year.
v.	We are leading the nation in
Sustainable Mining throughour engagement with Xynteo.
The seven thematic areas
and related KPIs is a uniqueframework which holds the key
to sustainable mining.
Many of our efforts and practices
have been recognised globally, but
we are not resting on our laurels. ESG
is a serious commitment to the future.

People come FirstWe respect and uphold the humanrights of all stakeholders. Employees
are one of our strongest pillars.
Many of our people initiatives haveborne fruit. Gender diversity is a key
focus area for us and we have pushed
for greater diversity hiring at theentry level. Consequently, hiring ofAnother noteworthy initiative isthe Hindalco Technical University– an online open learning platformthat offers world-class learning
programmes to our engineers,
supervisors and workers on the
shopfloor. During the pandemic,
HTU delivered 289 learning
programmes, benefitting over
60% of technical role holders.
Our initiatives for various segmentsof the workforce make for a great
employee experience. Our efforts
were recognised with the Great Place
to Work Certification by Great Place
to Work® Institute (India).
Despite our many successes, sadly,
two fatalities were recorded lastyear. On the positive side, Hindalco
has surpassed all its previous
safety performances. This can be
attributed to the implementationof the ‘Serious Injuries and Fatality(SIF) prevention programme’, a
new and unique initiative in Indian
manufacturing which standardises
contractor safety management
processes across Hindalco.
Guided by the Aditya Birla Group’ssocial vision, Hindalco has been
engaged in meaningful welfare
driven activities to uplift the livesof underprivileged communities.
Our CSR initiatives have touchedover 1.26 Million lives across India.
Our community expenditure for
FY2022 stands at `55 Crore.
During the waves of COVID, we madeconsiderable efforts to protect
employees across ranks as well as
our communities. We increased andimproved medical infrastructure at
our plant hospitals and healthcare
centres, set up oxygen lines inremote locations, and broadened
medical coverage to include contract
workers, 3 rd party employees andtheir families. As an organisation,

lives touched through our
CSR activities across India

289

learning programmes benefiting
60% of technical role holders

41%

Of women in
GET hires in 2022

we stood strong with our people. I am
especially proud of the care shown by
our employees to support each otherand our communities.

Anticipating the Future
Our successes as well as the learnings
from our failures inspire us to raise
the bar every single time. We believe
high performance organisations are by
nature sustainability-focused and future
ready. Hindalco’s achievements are dueto the collaborative teamwork of ouremployees and I take this opportunity
to thank everyone for their efforts which
resulted in the Company’s pathbreaking
performance in FY2021-22. I also thankall our stakeholders for your unflagging
trust and support. I am pleased toshare with you the Integrated Reportfor FY2021-22 and look forward to yoursustained trust in us.

Satish Pai

Managing Director

Integrated Annual Report 2021-22

29

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Our Business Model
Our business model represents the way our business manages resources for long-term value creation. It is a gear that converts
inputs into outcomes and outputs and helps us manufacture materials that make the world greener, smarter, and stronger.

InputsVolatile, Uncertain, Complex andAmbiguous External Environment

Financial Capital`78,191 Crore Equity for FY2021-22`63,237 Crore Gross Debt (down 4.3% yoy) (Net debt to EBITDA improved significantly)`16,838 Crore Operating Cash flow

It links our business to the strategic priorities. Through our business, we contribute to the Sustainable Development Goals(SDGs) and have linked the capital to the SDGs.

Employees

Suppliers
and Vendors

Customers

Risk and
Opportunities

Communities
and NGOs

Our Vision

Our Values

To be a premium metals
major, global in size
and reach, excelling ineverything we do, andcreating value for its
shareholders• Integrity• Commitment• Passion• Seamlessness• SpeedStrategic Priorities
Robust Capital
Structure

Strong ESG
Commitment

Value Enhancing
GrowthPortfolio
Enrichment

We Manufacture Materials that make the World Greener,
Stronger, Smarter

Markets Served

MiningIntellectual Capital`716 Crore R&D expenditure and allocated capex
114 patents filed
12 R&D centres
New collaborations and Memberships withacademic institutions and industry associations

Automobile

Value Added Products

Recycling

Alumina, and Primary Metal(Aluminium and Copper)

Natural Capital
15.55 Mn MT Material Consumption
73.09 Mn m3 Fresh Water Consumption
310.49 Mn GJ Energy consumption`1,151.6 Crore Environmental Investments
Biodiversity Conservation

Packaging

Resources(Raw Material)

Financial Capital

Aerospace

Flat Rolled
Products
0.3 Mn MT
Extruded Products
0.05 Mn MT
Aluminium Foil
0.03 Mn MT

FRP

Extrusion

Foils

Cu CathodeRods

Performance

Investors andShareholders

Government andRegulatory bodies

Copper Rods
0.26 Mn MT

Alumina(Metallurgicaland Chemical)
3.24 Mn MT

Novelis FRP:
3.86 Mn MT

77.68 NOxMediaIntellectual Capital
320 patents granted
40 new products and applications developed

Natural Capital

GHG Emissions

2.89 Mn GJ Energy savings
18% Energy Intensity reduction for Al from FY2011-12*
18.5% GHG Emission intensity reduction from FY2011-12*
9% reduction in Specific Water consumption in Al from FY2018-19*
86% Waste being recycled
10% Increase in Green cover*
26 Locations with biodiversity management plan

Scope-1:
27.97 Mn tCO2e

Social and Relationship Capital

10.26 Dust emissions

Scope-2:
1.5 Mn tCO2e

Industry
Associations`72.05 Crore saved in FY2021-22 through the implementation of
26,996 Opportunities Ideas Concepts (OIC), Kaizens*
Integrated Management System Certification (ISO 9001,
ISO 14001, ISO 45001) at Corporate and all locations*
500 kt brownfield capacity expansion at UAIL commissioned*
2 acquisitions- Asoj (CCR- 225 kt) and Kuppam (Al extrusion-15kt)*

7.22% female employees
35,869 permanent employees
3.5 Million manhours of training provided
7% Employee Turnover Rate*
2,912 employees hired
85% scored in VIBES survey (Employee engagement index)

PharmaOutlook

Manufactured Capital

Copper Cathodes
0.36 Mn MT

Stack Emissions(000 MT)Electronics`1,95,059 Crore Revenue ( 47.78% yoy)
`30,056 Crore EBITDA ( 59% yoy)
`13,730 Crore PAT ( 294% yoy)
Net Debt to EBITDA at 1.36x in FY2021-22

Human Capital

B&C

Chemicals

Cu CastSDGs

Copper:35.25 SOx

Social and Relationship Capital`87.6 Crore Community expenditure
15,673 Supplier base
`1,48,236 Crore Procurement spend
100% of critical suppliers assessed

Planet friendly
and future
focussed metals

Primary Aluminium
1.3 Mn MT

Human Capital
68,500+ Total Workforce`10.5 Crore Investment on Training anddevelopment Talent Pool Management

Outcomes

Aluminium:

Strategy andresource allocation

Manufactured Capital
50 Manufacturing units
6.2 Mn MT Net Production capacity
21 Operational Mines
Project spends planned over next 5 years $4.5-4.8 Billion in Novelis and $3-3.3 Billion inIndia Business.

Outputs

Waste generation
11.98 Mn MT

1.26+ Million lives touched*
64%- NPS Score (Extrusion)*
46 %- NPS Score (Foil)*
15,673 Number of suppliers assessed* The details provided are for Hindalco India operations

30

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

31

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Our Strategic Priorities
At Hindalco, our sharp focus on key strategic priorities
has helped us showcase best ever financial andoperational performance. In the backdrop of geopoliticaluncertainty, shifts in global economic outlook andinflationary pressures, among others, we are embarking
on a new journey to achieve new paradigms of growth.
We have defined four strategic priorities
in line with our goal of advancing
from a manufacturing company to acomprehensive manufacturing solutions
provider. With aluminium and copper
markets projected to double in the next
decade, we plan to leverage on thesegrowth opportunities with the helpof strategic priorities to stay ahead of
the curve.

SP-1

SP-2

Robust Capital
Structure

SP-1

SP-2

SP-3

SP-4

Robust Capital Structure

Value Enhancing Growth

Strong ESG Commitment

Portfolio Enrichment

Our Approach

Our Approach

Our Approach

Our Approach• R obust approach to capital
allocation framework• S trong focus on expanding
capacities in various businesssegments and diversifying ourportfolio to provide products
and solutions• F ocus on ESG by taking
sustainability initiatives across thevalue chain with clear roadmap forachieving our commitments• Advancing from manufacturing
company to manufacturingsolution provider

The identified strategic priorities arealigned with our growth and ESG
commitments. Our approach towards
our strategic priorities has led us toachieve positive outcomes during
the year.
The rising prominence of ESG related
requirements as well as regulations,and increasing awareness related
to adoption of greener products
has helped us identify key risks andopportunities in these areas.

• E nhanced focus on shareholder
return• G rowth capex directed towards
value-added downstream
expansion projects

Value
Enhancing
GrowthStrategic
Priorities
SP-4

SP-3

Portfolio
Enrichment

Strong ESG
Commitment• E xpansion of Utkal Alumina to
500 kt ahead of scheduled time• N ovelis, the largest aluminium
recycler in the world, recycles
over 82 Billion cans annually• G reater focus on new andhigh‑value added products• E xpanded our downstream
aluminium and copper businesswith acquisitions of Hydro’s SAPA
(Kuppam) extrusions facility and
Polycab’s Ryker copper rods
facility (Asoj), both in India

Outcome

Outcome

Outcome

Outcome• D eleveraging target achieved
well ahead of time• H igher value creation for ourcustomers.

• S ustainable growth and strong
performance• Higher market share in valueadded products segment• S tronger balance sheet
and enhanced focus onshareholder return• A mong the top three copper rod
manufacturers globally outsideof China• R etained the title of the mostsustainable aluminium company
for the second consecutive year
by DJSI• I ntroduction of new products
in segments like aerospace,building and construction,
new age mobility etc.

• A chieved a net debt reductionof around 15%• P art of the DJSI World Index(only aluminium company)• C ontribution towards circular
economy32

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

33

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Building Resilience
To build this quality of resilience in an organisation, work needs to be doneon three fronts:

Enterprise Risk
Management (ERM)

Resilience

Crisis Management(CM)

Business Continuity
Management (BCM)

Resilience = Enterprise Risk Management + Crisis Management +Business Continuity Management
ERM tries to REDUCE the impact of the risk before it materialises; CM takes care of the
RESPONSE strategy for people/asset safety in times of a crisis event; BCM ensures continuityof operations and RECOVERY from the loss after the event has subsided.

In a Volatile, Uncertain,
Complex, Ambiguous (VUCA)
world, no individual ororganisation can predict the‘Unknowns’. But organisations
need to prepare for an
uncertain and volatile future.
34

HINDALCO INDUSTRIES LIMITED

Organisations need to proactively
identify risks from all perspectives
and ensure efforts to reduce the risk
impact through mitigation practices.
At Hindalco, we follow a robust ERM
process with a set policy, framework
and procedure followed uniformly acrossall plants and corporate functions.
Risk identification exercise happens
through multiple channels bottoms-up(from units built up to the enterprise),
top-down (from enterprise objectives
drilled down to individual plants) andoutside-in (from external stakeholders,industry challenges, etc.). A risk
register is maintained and reviewed at
multiple levels in our organisation (fromdepartments to BOD). The action planon the top risks is critically reviewed
and ownership of the mitigation plan is
assigned to respective stakeholder, which
is monitored continuously. The risks arebucketed into Strategic, Operational,
ESG related and Project based.
Even after implementing a wellfunctioning ERM process, there will
always be unknown events- black swans
or grey rhinos, that can impact ouroperations. In such cases, we need to
be seamless in our decision making toensure safety of our people and otherassets. Therefore, crisis management/
emergency response process are
implemented at each unit. The crisis
management manual details out all theactions that need to be taken, all the
stakeholders that need to be informed,
the flow of communication and key
personnel involved in decision making.
These plans are to be stress tested andreviewed annually for their effectiveness,and if need be, modified as per thesituation.
Aluminium smelters are of the natureof continuous operations and run 24x7.
Interruptions in operations from any
plant can have considerable cascading
implications across the whole value
chain. To ensure continuity of operations
for critical and bottleneck processes,
we are building resilience in terms ofadopting recovery strategies (mainly
looking at make-shift arrangement andalternative options) to keep the process
running in times of crisis. BCM exercise
is currently in its final phase and the final
plans at each plant would be ready bysecond quarter of FY2022-23.

As a culture, resilience is rooted in theway we work and all the three aspects
mentioned above were tested during the
COVID-19 pandemic. The pandemic was
broken down into two risk categories:
risks emerging due to lockdown andrisks emerging due to the medical crisis.
The COVID-19 situation was assessed
based on key indicators from othercountries like China, US, Italy, Spain,
and UK and consequently mitigationplans included working on financial
stress testing, solving supply chain
issues, arranging for alternate vendors
and customers etc. Being a continuous
process industry, it was of criticalimportance to plan for the same, while
keeping the safety and health of ouremployees as the topmost priority.
We have also integrated Task Force on
Climate-related Financial Disclosures(TCFD) recommendations in our daily
business operations. As a part of the
ERM framework, we have identified
climate-related risks and opportunities
and we have been taking relevant
mitigation actions accordingly. Apex
sustainability committee is responsiblefor identifying and mitigating climate
related risks and opportunities, which
is further supported by our dedicatedsustainability team at plants for effective
implementation.
The climate-related risks andopportunities are integrated in our
strategy by conducting a detailed
scenario analysis to understandthe impact of climate change on
our organisation. We have already
implemented resilience measures tomitigate high risk of climate change
and tapped several climate-related
opportunities by developing diverse
product portfolio. More details
about our climate related risks andopportunities can be found in the
TCFD report available on our website.
Details about the key enterprise risks
and their mitigating actions have been
mentioned in the table ahead.

Integrated Annual Report 2021-22

35

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Building Resilience
Descriptionof Risk

R1
Increasedfocus on
Decarbonisation

R2
Supplychain risks

R3
Price volatilityof Aluminium

36

Capitals
Affected

Strategic
Priorities

Descriptionof Risk

SP-3

R4

Significance

Mitigating Actions

Increased focus on
decarbonisation can affectour operations since coal isone of our primary sourcesof energy. This increases
the carbon footprint of theCompany.

Coal being one of the primary sourcesof energy for the Indian operations.
Being a continuous process industry,
it is difficult to replace with renewableenergy source because of the challenges
in reliability and storage. However, wehave been investing in solar projects to
run other operations and the townships
on renewable energy. Currently, we havea total renewable capacity of 100 MW.
We are also evaluation other energy
option including increasing the usage ofbio-mass in power plants. We have also
been working on carbon capture as wellas energy storage.

Natural Capital

Disruption in supply chain
would lead to disruption in
operations impacting our
profitability and therefore
sustainability. We areoperating at a global level
when it comes to procuring
and selling products. A largepart of our business depends
on international trade.

We believe in building strong long-term
relations and hence, we have been
engaging with our suppliers and logistics
partners by signing long-term contracts.
Appropriate procurement levers alongwith stringent vendor management
helps to combat the increasing pricing
and single vendor dependence. By
hedging base commodity coal, Furnace
oil also help in containing price increase.

Social and
Relationship
CapitalThe fluctuations in the priceof aluminium in INR terms
can have a significant impact
on the profitability of ourbusiness.

We follow commodity and currency
hedging strategy through forward
contracts. Our approach involves regularreviews and stress tests to optimise thehedge levels. Price offset hedging isfollowed in copper business to insulate
the business from commodity price andcurrency fluctuations.

Financial
CapitalSP-2Social and
Relationship
CapitalSP-4

HINDALCO INDUSTRIES LIMITED

Increased
import ofAluminium

R5
Solid Waste
Management

SP-3

Financial
CapitalManufactured
CapitalR6
Depletionof natural
resources

Capitals
Affected

Strategic
Priorities

We proactively engage with ourcustomers to understand and modify
customer value offerings. Our
downstream product mix strategy isalso built to limit the impact from importthreats. At present the Finance Ministry
has imposed ADD on some of thealuminium products.

Financial
CapitalSP-2

At present the Finance
Ministry has imposed ADD
on some of the aluminium
products. Proper disposalof waste from operations isessential for environment
protection, safety. Someof the waste are stored
in secured area where
substantial area of land isrequired. Land availability
is becoming difficult andstorage of waste in ‘ponds’
has its own risk as well. New
stringent regulations has
to be implemented on timebound basis.

We have set up a yoy target of 5% ofrecycling and reusing waste generated
to reach zero waste to landfill by 2030.
Several initiatives such as Bauxite
residue backfilling, Bauxite residue inroad building, long-term contract setup
with cement/road developers are in thepipeline and are being monitored on aregular basis.

Natural Capital

Natural resource depletion isa risk faced all over the world.
This can eventually impact
our immediate environment
as well operations. Our
business growth depends oncoal supply, bauxite, copper
concentrate, and water
etc. Evolving regulations is
one of the major risks that
we foresee.

We have planned several initiatives
for water recycling and rainwater
harvesting at various plants. Our aim
is to achieve Zero Liquid Discharge
and water positivity across mining anddownstream verticals by 2025.

Natural CapitalSignificance

Mitigating Actions

The increased import ofaluminium including scrap
may impact our market share.

Social and
Relationship
Capital

SP-4

SP-3

SP-2
SP-3

Integrated Annual Report 2021-22

37

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Building Resilience
Descriptionof Risk

R7
Shareholders/
Lenders focus
on ESG

R8
Product
development
strategy risks

R9
Changes in
the regulatory
requirements

R10
Cyber Security &Data Protection
risks

38

Capitals
Affected

Strategic
Priorities

Intellectual
CapitalSP-2

Significance

Mitigating Actions

ESG is being viewed as oneof the critical areas in theholistic performance ofcompanies. With increased
focus on carbon neutrality,transparent business
operations, wellbeing of thepeople and society and therapid evolving regulations,
it makes it imperative for
a company to direct its
attention towards these
aspects.

We are deeply committed to caring
for our environment and the people
and are aware of the impacts that wehave on them. We have set clear
goals with respect to E, S & G
impacting our business.

Evolving customer
demands and the market is
a risk that may impact our
profitability.

We have our innovation centres
that focus on regularly developing
new products. Our commercial teamcollaborates with key customers todrive joint development projects.

Intellectual
CapitalBeing in mining and metals
industry, regulations play animportant role in shaping thebusiness. Frequent Regulatorychanges give rise touncertainty in the surrounding
environment. Our value chain
is highly dependent on the
resources available withthe government.

We continuously engage with
Government agencies and work on
policy advocacy at various levels. We
also actively participate in industry
associations activities. This helps
us in proactively engaging with thegovernment and be prepared for any
regulatory changes.

Financial
CapitalOrganisations are always
prone to cyber security
risks that can directly
impact our business
operations, reputation,and customer base.

Focus on formulation of industry
standard policies, frameworks alongwith adopting best practices such as
Information Security, Disaster Recovery& Business Continuity Management,
IT Risk Management, etc. helps tostrengthen the current systems. Periodic
assessment of entire IT systems
landscape and governance frameworkfrom vulnerability and penetration
perspective through reputed expert
agencies and addressing the identified
observations in a time-bound manner.

Intellectual
CapitalHINDALCO INDUSTRIES LIMITEDSocial and
Relationship
CapitalSP-3

Natural Capital
Human Capital
Manufactured
CapitalFinancial
CapitalSocial and
Relationship
Capital

SP-4

SP-2
SP-3

Social and
Relationship
CapitalPlantation onreclaimed mineat Utkal Alumina

SP-2

SP-3

Emerging Risks
We have identified emerging risks
as a part of our risk management
framework. These risks are complex,
and can have unexpected impacts
on earnings and market positioning.
Additionally, they have the potential toaffect our operations and may require
us to review our strategy and businessmodel on a regular basis. The identified
emerging risks may become significant
in due course and impact us directly or
indirectly.

Biodiversity
Loss to biodiversity is one of the risks
that is continuously being stressed
upon. Our natural habitats are being
exploited leading to endangering ofvarious species of flora and fauna. Someof these activities can have irreversible
consequences on our planet. The global
risk report 2022 by the World Economic
Forum has also identified biodiversity
loss as one of the top three risks. Loss of
biodiversity can impact our operations

significantly since it can attract stringent
regulatory policies that can even leadto disruption in business operations.
To deal with these issues, we havedeveloped biodiversity management
plans, especially for our mines. We
have developed four Biodiversity
Management Plans for five sites lastyear in India. Now, we have another five
BMPs spanning 10 sites near completion,that will take the total to fifteen sites
with detailed 4-season BMPs. The totalsites having BMPs stands at 26 out of
the 32 critical sites having exposure to
biodiversity impacts. Further, details
on our approach towards biodiversity
management can be found under the
Natural Capital section of this report.

Climate Action Failure andClimate Breakdown
Climate-related risks are being
identified as one of the most severerisks for businesses and economies
going forward. The world is alreadywitnessing climate change in the formof unpredictable natural disasters
such as floods, extreme temperature,
droughts, among others. Currently, theproblems that we are facing are complex
and dynamic that require everybody
to simultaneously engage and work
towards a shared goal. Integrating
technology, economy and society
to transition to a low-carbon futurewould require combined efforts fromall stakeholders including businesses,
policymakers and society at large.
Failure in transition within the stipulated
timelines, could account for societal andgeopolitical conflicts, which can have asignificant impact on the world. We haveundertaken TCFD based assessment
to identify climate-related risks andformulate effective mitigation strategies
for the long run. Additionally, we havealso streamlined our processes tominimise the carbon footprint and movetowards net zero goal.

Integrated Annual Report 2021-22

39

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Stakeholder Engagement
We engage with our stakeholders to identify their key concerns
and make continuous efforts to address them collectively
and proactively.
Engaging with our stakeholders-both internally and externallyon a regular basis, offers us the opportunity to understand their
expectations and concerns and subsequently address themin a timely manner. Our Group-level stakeholder engagement
policy acts as a guiding principle for undertaking our stakeholder
engagement process. It helps in creating long-term value for our
key stakeholders.

To engage our stakeholders effectively, we follow a three-step approach:
Identification andpriortisation of
key stakeholder
groupsEngaging withkey stakeholders
within eachstakeholder
groups

Key stakeholder groups comprise
employees, customers, suppliersand vendors, communities, investors
and shareholders, government andregulatory bodies, NGOs, industry
associations, and media.

Industry
Association

Managementand Employees

Understanding
stakeholder
expectations anddeveloping actionplans to adressconcerns, if any.

Our engagement is carried out throughvarious modes of channels such as
websites, emails, newsletters, social
media, physical or virtual conferences
and interactions, and by conducting
surveys.

Customers

Suppliers/
Vendors

Stakeholders

Government
and Regulatory
Bodies40

Investor andShareholders

Media

Local
Communities

Integrated Annual Report 2021-22

41

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Stakeholder Engagement
Stakeholder

Employees

Significance of therelationshipOur employees are
an integral part ofour journey towards
transformational,
responsible andsustainable change.

Continuous

Suppliers/
vendors

Key concerns andexpectations

Our approach• E-mails and meetings• HI-intranet and knowledge
management portals• Intranet and Shillim
newsletters• Leadership townhalls• Unit level journals• Employee satisfaction surveys• Training programmes andworkshops• Feedback mechanism• Performance appraisal reviews• Employee engagement
programmes• Grievance redressal
mechanism• COVID-19 care
• Social media platforms• Fair wages
and equal
opportunities• Training and skill
development withcareer growth• Rewards andrecognition• Employee wellbeing• Occupational
health and safety• Transparent
communication• Medical facilities
and operational
continuity

Customers drive sales
and are key to process
improvements, Quality
enhancement, Service
performance and Cost
optimisation. Hence,
our business cannot
continue to exist
without them.

• E-mails and meetings• Customer satisfaction surveys• Periodical site visits• Grievance redressal
mechanism• Social media platforms• Post-sales support • Key account management toensure best possible servicing• Chinese and local
competition• Net Promoter Score (NPS) model,
combination of top down and• Sustainablebottom-up approachproducts offeringsand solutions• Production of aluminium andcopper with London Metal• Health and safety
Exchange (LME) specification

Suppliers are the brandambassadors of our
products. They play an
indispensable role in
the product life cycle.

• E-mails and meetings• Vendor assessment andreview• Supplier audits• Training workshops andseminars• Stakeholder engagement
surveys• Continuity oforders• Capacity building• Pricing andnegotiation• Embedded
sustainability insupply chain• Policy for supply chain andprocurement• Supplier code of conduct• Risk assessment for suppliers• Contractor safety management
system• Management framework
involving ethics and transparency• Annual Reports• Communication withregulatory bodies• Formal dialogues andcollaborations• Policy advocacy• Tax and royalties• Pollution
prevention• Community
development• Green economy• Regular payment of applicabletaxes and royalties• Adoption of cleaner technologies
and strengthening of emission
monitoring• Adoption of renewable energy

Continuous

Customers

Modes of engagement• 60% of the employees arecovered under the provision ofcollective bargaining at Hindalco• 100% compliant in terms of
payment in minimum wages• Providing technical andbehavioral training• E-learning events anddevelopment programmes byHindalco Technical University(HTU)• Awareness programmes on healthand wellness• Fatality prevention programmes• Occupational health and safety
training• Disaster management plansufficient notice period regarding
any significant operational change• COVID-19 management

Continuous

Government
and Regulatory
bodiesPromote and regulate
our actions, ensuringbusiness continuity
through compliancewith laws.

Stakeholder

Localcommunities

Significance of therelationshipCommunity
engagement enhances
our operational
efficiency and positive
outlook as responsible
corporate. It fosters
a positive workplaceculture and values

PeriodicallyMedia

Our approach• Infrastructuredevelopment• Training andlivelihood
programmes• Local employment• Participation insocial services• Community
relation throughvolunteering• Development of community
infrastructure in villages suchas approach roads, check dams
and bus stops• Providing skill development
programmes for women• Focus on livelihood and skill
development programmes• Social awareness camps• Responsible mining• Focus on societal reforms• Conducting socio-economic
baseline study and assessment• COVID-19 awareness andprovision of medical aid

Provides financial• Board meetings
resources to compound • Annual reportsbusiness growth• Newsletters• Regular business interaction• Social media platforms• Sustainablegrowth andreturns• Market share• ESG commitment
and disclosure• Operationaland financial
performance• Risk management• Corporate
governance• Ethics andintegrity• Continuous operational
performance• Focussing on cost optimisationand value-added products• Enterprise risk management
framework• Corporate governanceframework

Significant impact on• Meetings and seminars
corporate sustainability
and offers in-depth
advisory on industry
trends. These are
the routes to interact
with industry and thegovernment• Regulations• Participation in meetings,
conferences and discussions• Compliance withrelated to industry
industry standards• Businesscollaborations

Media helps inprojecting our visionand strategy to various
stakeholders and,hence, drives growth• Community
relations

Quarterly

Industry
associations

Key concerns andexpectations• Stakeholder engagement• Surveys• Training and workshops• Regular meetings• Need assessment andsatisfaction surveys• CSR reports and newsletters• COVID-19 care

Continuous

Investor andShareholders

Modes of engagement• Digital platforms such associal media and websites• Press releases• Interviews• Transparent communication• Communication of our initiatives
through integrated report

Periodically
WheneverrequiredFrequency of engagement

42

HINDALCO INDUSTRIES LIMITED

Frequency of engagement

Integrated Annual Report 2021-22

43

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Materiality Assessment

All the issues presented in thematrix are aligned with ourprincipal risks and strategic
priorities.

SDG alignment

Reference in the
Integrated Report

Material TopicGRI Topic

Energy and
GHG Emissions
Management

EnergyNatural Capital

Water Management

Water

Natural CapitalOccupational Healthand Safety

Occupational Healthand Safety

Human Capital

Ethics andIntegrity

Ethics and Integrity

Corporate Governance

Employee Wellbeing

Employment

Human Capital

Community Relations

Local Communities

Social and Relationship
CapitalEconomic
Performance

Economic Performance

Financial Capital

Security and Human
RightsHuman Rights Assessment

Human CapitalComplianceManagement

Environmental Compliance,
Socioeconomic Compliance

Natural Capital,
Social and Relationship
CapitalR&D Innovation andTechnology

Non-GRI

Intellectual Capital

Air Emissions

Emissions

Natural Capital

Waste andHazardous Materials
Management

Effluents and Waste

Natural Capital

Alignment with Strategic
Priority and Risk

SP-3

R1

SP-3 R6

SP-3 R9

SP-3

R2

1
2

Significance to External Stakeholders
Medium

We identified 12 critical topics
that are material to both our
stakeholders and our businessperformance. The material
topics were identified
based on interaction with
our internal and external
stakeholders after consideringvarious other relevant factors
such as industry research andbenchmarking of internal andexternal forces.

High

Materiality assessment helps us in identifying, refining and assessing potential
environmental, social and governance issues that could have an impact on our business,
and are of interest to our stakeholders. During FY2021-22, we carried out a dedicatedmateriality assessment exercise to identify material ESG topics.

4
13
15

10

7

6

14
9

8

19

21

22

12
16

18
20

Low

SP-2 SP-3 R7

5

SP-1 SP-2 R3

R4

11

17

23

3

SP-3 R7

MediumHigh

SP-3 R7R9SP-3 R9

SP-4 R8

R10

R1

R7

SP-3

SP-3 R5

Significance to Internal Stakeholders
1

Energy & GHG Emissions Management

9Compliance Management

17

Biodiversity Impacts

2

Water Management

10

R&D Innovation and Technology

18

Digitalisation and Cyber Security

Robust Capital
Structure3

Occupational Health and Safety

11

Air Emissions

19

Diversity and Inclusion

SP-1

4

Ethics and Integrity

12

20 Communicable Disease

5

Employee Wellbeing

 aste and HazardousW
Materials Management

Community Relations

13

Material Management

621

Product Stewardship7

Economic Performance

14

22 Land Use

15

Supply Chain Transformation

8

Security and Human Rights

23 Artisanal and Small-Scale Mining

44

HINDALCO INDUSTRIES LIMITED

16 Market Presence

and Public Health

Value Enhancing
GrowthSP-2Strategic
Priorities

Macro-Economic Fluctuations
SP-3
Portfolio
Enrichment

R1: 	Increased focus on
Decarbonisation
R2: Supply chain risks
R3: Price volatility of aluminium
R4: Increased import of aluminium

SP-4
Strong ESG
Commitmen

R7: 	Shareholders/ Lenders focus
on ESG (Environmental, Social,and corporate Governance)
R8: 	Product development strategy
risks

R5: Solid waste management

R9: 	Changes in the regulatory
requirements

Depletion of Natural
Resources

R10:	Cyber security and Data
Protection Risks

R6:

Integrated Annual Report 2021-22

45

Financial Capital

Strong,Consistent Performance
Hindalco delivered an exceptional
financial performance despite
headwinds from rising input costs,
pandemic-related disruptions
and global inflationary pressures.
Our strength was enabled byrobust volumes, better operational
efficiencies, strategic product mix
and improved performance in ourdownstream business. We are entering
new-age markets where we aim tocreate value out of niche, high-value
products. We plan to build on thismomentum and prepare to enter
the next phase of organic growthwith focus on sustained profitability,
stronger balance sheet and strategic
capital allocation.

Contributions to SDGs

Value Enhancing Growth
SP-1

SP-2

Robust capital
structure

Value enhancing
growthInterlinkages with Material Topics andOther Capitals
Material Topics

Capitals Connected

Economic Performance

Manufactured Capital

Macro-Economic Fluctuations

Human CapitalIntellectual Capital
Natural CapitalSocial & Relationship Capital

Key Highlights`30,056 CR# `13,730 CR
EBITDA`16,838 CR
Operating Cash Flow

PAT

1.36x

Net Debt/EBITDA#Exceptional Income/(Expenses) for the the year ended 31st March, 2022,
exclude `418 Crore, which represents the principal portion of (a) PIS/
COFINS related tax credit income in Brazil of `358 Crore (net of litigation
cost of `9 Crore) and (b) tax rebates for sales to Manaus, Brazilian
Free Trade Zone of `60 Crore, as it is included in the results of Novelis
segment and is part of EBITDA

Our Focus Areas
Value Enhancing
Organic Growth
by Capitalising on
Demand Drivers

Sustainable
Profitability
through ProductMix Enrichment

Strong Balance
Sheet

Strategic Capital
Allocation
Directed Towards
Organic GrowthCorporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Financial Capital

1,28,686

85,103

Employee Wages and Benefits

11,936

10,782

Payment to providers of capital

4,435

3,960

Payments to government

3,801

1,881

Community expenditure
Depreciation and other expense
Economic Value Distributed
Economic Value Retained*

88

89

32,509
1,81,455

25,080
1,26,895

14,7406,312`1,95,059 CR`62* Economic value retained = Direct economic value generated - Economic value distributed

FY18

FY19

FY20

62

Operating Costs

FY21

FY22

FY18

FY19

16

1,199
1,33,207

17

1,136
1,96,195

EPS (`)

25

Other Income
Economic Value Generated

Revenue (` Crore)27

1,32,008

195,059

1,95,059

132,008

Revenue from Operations

In FY2021-22, our operational andfinancial performance improved
significantly despite headwinds fromrising input costs and inflationary
challenges. Our continued focus oncost efficiency and integration helped
us deliver record financial performancein terms of Revenue, EBITDA, PAT and
Earnings per share this year. We arealso prepared to enter the next phaseof organic growth on the back of astrong balance and healthy ratios.

118,144

FY2020-21(in ` CR)

Key Financial Highlights (Consolidated)

130,542

FY2021-22(in ` CR)

Particulars

Exceptional Financial
Performance

115,820

Economic Value Creation (FY2021-22)

FY20

FY21

EBITDA (` Crore)
EBITDA Margin (%)

PAT (` Crore)
PAT Margin (%)`30,056 CR`13,730 CR

12.7

13.2

14.3

15.4

5.3

7.0
4.2

3.2

2.6

48

HINDALCO INDUSTRIES LIMITED

13,730
FY18

FY19

3,483

FY22

3,767

FY21

5,493

FY20

6,083

FY19

18,896

15,536FY18

16,62715,02530,056

13.0

FY22

FY20

FY21

Integrated Annual Report 2021-22

FY22

49

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Financial Capital
Key Return Ratios (Consolidated)

Value Enhancing Organic
Growth by Capitalising on
Demand Drivers
ROCE (%)

0.81 Times

18.97%

16.61%

FY18

FY19

FY20

FY21

FY22

FY18

FY19

16.61
9.40

8.83

10.94

9.61
FY20

5.58

6.51

9.78

12.06

0.81

0.99

0.91

0.95

18.97

ROE (%)

1.15

Debt Equity (in times)

FY21

FY22

FY18

FY19

FY20

FY21

Dividend Payout (%)

7.87 Times

1.37 Times

400%

This translates into a CAGR of 6-8%
across all major segments. Copper
consumption is also expected to morethan double in a decade fuelled bydemand from infrastructure for smart
cities, electric mobility and green
energy, among others. This translates
to a CAGR of 6 -12% in various end
user segments.

300

1.37
0.99

0.97

1.17

1.04

5.06

We also expect strong growth in our
high-value specialty segment catering
to housing, automobile and packaging

In India, aluminium demand is
expected to double to 8 MMTPA in
the next 10 years. This will be driven
by the demand from premium urban
projects in the building & construction
segment, growth in Electric Vehicles(EV), demand from pharmaceuticaland food & beverages sectors, alongwith other industrial applications.

FY18

FY19

FY20

FY21

FY22

50

HINDALCO INDUSTRIES LIMITED

FY18

FY19

FY20

FY21

FY22

FY18

FY19

100

120

120

3.70

4.40

3.84

The beverage can segment
constitutes 58% of Novelis’ FRP
shipment, catering to North American,
European, South American andAsian markets. Two key factors are
expected to drive revenue from theNorth American markets – rise in
consumer demand for FRP products
in beverage segment and support fordomestic production. The aggressive
sustainability targets of key American
beverage producers and the demand-

Despite the headwinds from thepandemic and supply chain challenges
over the past two years, the automotive
body sheet segment is poised torecover at a healthy rate; supported bypent-up demand for vehicles. Gradualglobal transition to electric vehicles isalso expected to contribute towards
growth of Novelis’ Automotive Body
Sheet (ABS) segment by 2026. Global
automotive aluminium FRP demandis expected to grow at a CAGR of 11%
between 2021 and 2028.

industries, driven by sustainable
packaging preferences of consumers.
We are positioned to benefit from therecovering aerospace industry.

400

Asset Turnover (in times)

7.87

Net Interest Cover (in times)

FY22

As the world’s largest flat rolled
aluminium producer catering tobeverage packaging, automotive
body sheets, specialty products
and aerospace segments, Novelis iswell‑placed to gain from the CAGR
of 4% in global FRP aluminium
consumption from 30 Mn MT in 2021
to 36.3 Mn MT in 2026.

supply gap in beverage can segment,
together are expected to contributesignificantly towards future growthin this region. Greater adoption ofaluminium products and favourable
pricing in all markets served by Novelis,
are contributing towards the Company’s
overall growth in this segment.

FY20

FY21

FY22

Utkal Alumina isamong the producersof lowest cost,highest quality
alumina in the world

Integrated Annual Report 2021-22

51

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Financial Capital
Strong Balance Sheet
Ready to fuel the next phase of organic growth
Deleveraging has consistently been oneof the core focus areas for our Company
in FY2021-22. Company’s dedicatedefforts on this front have facilitatedsignificant reduction in Net Debt/Adj.
EBITDA ratio is halved in FY2021-22
compared to the last year to 1.36 times
as on 31st March, 2022, vs the leverage
ratio from 3.8x as on 30th June, 2020.

of organic growth via capacity
expansions in both Novelis and India
to capitalise on the growing market
demand across all the productcategories. The company announced
its expansion plans of nearly$8.0 Billion including the projects
under appraisal to be spent over next
five years, that shall be funded by theCompany’s internal accruals in linewith its capital allocation framework.

This provides the company an immense
opportunity to fuel its next phase

Consolidated Net Debt to EBITDA (x) Trend
With the acquisitionof Asoj, Birla Copper
has strengthened
its copper rod
manufacturing capacity

3.83

3.52

3.09

2.59
1.36

Sustainable Profitability
through Product Mix
Enrichment
Our margins have improved throughstringent cost control and a diversified
product mix which has an increased
share of high-end value-added
products.

Product-Mix Enrichment:
In Novelis: Novelis’ strategic
investments over the last decade
helped us capitalise on favourable
market trends of lightweight andsustainable aluminium products as
we diversify and optimise our productportfolio. As a global leader in thealuminium and aluminium beverage
packaging industries, we leveraged
our new capacity and global footprint
to increase our sales and capture
markets, which improved the pricing
for beverage packaging and specialties
products. We also increased shipments
of premium automotive products whichfurther enhanced product mix.

52

HINDALCO INDUSTRIES LIMITEDIn India: We are expanding ouraluminium downstream capacityfrom the existing 350 kt to around
600 kt by FY2026-27 in the categories
of Flat Rolled Products, Extrusions
and other value-added products.
During the year, we acquired Hydro’s
Kuppam Extrusions facility to expand
our presence in the high-end valueadded extrusions and fabricatedsolutions market. Strategy for copper
also focusses on downstream valueadded products. We acquired Polycab’s
Ryker Copper Rods facility in Gujaratof 225 kt to strengthen its copper rod
manufacturing capacity by providing
a time-to-market advantage taking its
total capacity of CCR to 540 kt. We plan
to make strategic investments in highvalue intermediary component segmentof Air conditioning systems with two
products, coated aluminium AC fins andcopper Inner Groove Tubes (IGT).

Cost Optimisation Initiatives:
At Novelis, our investments
enabled us to increase the amountof scrap recycling. By maximising
scrap inputs, driving operational
efficiencies and higher utilisation
rates, we were able to control andoptimise our fixed cost structure.
The acquisition of Aleris in 2020 has
been highly accretive both in terms ofmarket positioning and synergies.
At our India operations, we havetaken several cost optimisation
initiatives across the value chain to
improve efficiency and reduce theoverall cost of production at all ourfacilities. Access to low cost alumina
through Utkal Expansion, better coalmix and other cost saving initiatives,
have helped us reduce our cost of
production. As a result, we continue
to remain in the first quartile of the
global cost curve in FY2021-22.

30 Jun 2020

30 Sep 2020

31 Dec 2020

31 Mar 2021

31 Mar 2022

Strategic Capital Allocation
Directed Towards Organic
GrowthCapacity Expansions
Novelis’ investment towards organic
expansion between FY2018-19 andFY2021-22 stood at $655 Million; in US,
China, and Brazil. Between FY2022‑23
and FY2026-27, investment in new
capacities and facilities is expected to be
more than $4.5 Billion. This investments
to be made in the US, China, South
Korea, Germany and Brazil, will cater tothe entire portfolio of offerings. Out of
the total investment, $2.5 Billion would
go towards a greenfield project of 600 kt
low-carbon recycling and rolling plantin Bay Minette, Alabama, primarily tomeet the growing demand for cans inNorth America.
In India business, we have acquired
Hydro’s SAPA extrusions facility and
Polycab’s Ryker CCR facility for a totalsum of $79 Million. Utkal alumina
expansion of 500 kt, completed thisyear, takes our Alumina production
capacity at Utkal to 2.2 Million
MT. The estimated investments in
India, spread over next five years, in
Aluminium, Copper, Specialty Alumina
and Resource Securitisation, is expected
to be in the range of $3 to $3.3 Billion.
This includes certain projects which
are currently under appraisal. All theseinvestments are mainly targeted towards
downstream capacity expansion which
will cater to the growing demand inglobal and domestic markets. These
projects include 34 kt greenfieldaluminium extrusions plant in Silvassa,
and a 170 kt flat-rolled products facility
in Hirakud; aimed at enhancing ourvalue-added product mix. In alumina
operations, further debottlenecking isplanned at Utkal Alumina refinery for
another 350 kt. We have also plannedfor debottlenecking of smelting
capacity by 50 kt at Aditya and Mahan.
At Belagavi and Aditya, we would
expand specialty alumina capacity by
150 kt in precipitates, white hydrates andsynthetic aggregates.

Integrated Annual Report 2021-22

53

Manufactured Capital

Striving for excellence with avision to lead the aluminium
industry as the partner of choicefor innovative solutions.
We proudly produce metals for the newage which will play a key role in India’stransition to Net zero. Aluminium andcopper will shape the coming decade,supporting industry megatrends ofurbanisation and digitalisation, clean
energy & renewables, e-mobility &storage, and electricity as the primarysource of energy.
We are the largest flat rolled aluminium
producer in the world and the largest
downstream aluminium player in India,
with a geographical spread across 10
countries with 50 manufacturing units.
We are the largest copper player in India
serving more than half the requirementof the country. We are working on
developing downstream productsthat will be important in the context
of these megatrends.

Contributions to SDGs

Value Enhancing Growth
SP-2

SP-3

SP-4

Value enhancing
growthStrong ESG
Commitment

Portfolio
Enrichment

Interlinkages with Material Topics andOther Capitals
Material Topics

Capitals Connected

Economic Performance

Financial Capital
Human CapitalIntellectual Capital
Natural CapitalSocial & Relationship Capital

Key Highlights

17

Manufacturing units
in India2

facilities acquired Asoj (Cu CC Rods) and
Kuppam (Al extrusions)

2

Operational captive
Coal mines

19

Operational
Bauxite mines

Our Focus Areas

33

Expandingdownstream
capacities

Driving
operational
excellence

Process
digitalisation

ESG integration

overseas unitsof Novelis

500 ktAlumina Utkal brownfield
expansion completedCorporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Manufactured Capital
Growing our Manufacturing
Capability

Production Capacity

3.6 MN MT
Alumina0.42 MN MT
Copper cathode0.36 MN MT
Specialty Alumina

0.54 MN MT
Copper rods

Our strong focus on world-classfacilities, backward and forward
integration in the value chain, and ourcompetent workforce makes us oneof the world’s leading producers ofaluminium and copper. This is achievedby our investments in manufacturing
capability growth, equipped with robust
control measures over our operations
and processes. Our manufacturing
operations span across the globe witha major market share in aluminium andcopper sales.
Our aluminium operations in India
encompass the entire value chain frombauxite mining, alumina refining, coalmining, captive power generation to

1.3 MN MT

0.35 MN MT

Primary aluminium

4.0 MN MT

Aluminium VAP

Novelis rolling capacity

aluminium smelting, downstream value
addition of aluminium rolling, extruding
and foils of different specifications.
This makes us the largest fully
integrated aluminium player in India.
Our Utkal Alumina refinery is among thelowest cost, best quality producers ofalumina in the world.
At Dahej, we have one of the largest
custom copper smelters at a single
location in Asia consisting of refinery,and manufacturing of value-added
products. Copper operations also
include oxygen plants, sulphuric acidplants and precious metals recovery
units supported by a co-gen captive
power plant.

2.5 MN MT

Novelis recycling capacity

Novelis, our wholly owned subsidiary,is the world’s largest flat rolled
aluminium producer and recycler witha rolling capacity of 4 Million MT andrecycling capacity of 2.5 Million MT.
Our Novelis operations cater to therequirements of the customers of theaerospace and automotive industriesin 9 countries with 33 operating units.
Out of these 33 units, 15 units haverecycling capabilities. This helps us toachieve the objective of sustainability
by increasing recycling capabilities
and capacities, innovating newtechnologies, optimising processes,
and increasing low carbon logistics.

Our Production during FY2021-22(000 MT)

Aluminium
Hindalco India
Alumina
Aluminium Metal (Primary)
Flat Rolled Products (FRP)
Aluminium Extrusions*Aluminium Foils and Converted Products

FY2018-19
2,893
1,295
289
47
17

FY2019-20
2,768
1,319
291
41
18

FY2020-21
2,699
1,229
233
37
19

FY2021-22
3,235
1,294
301
50
28

347
245

326
245

262
235

359
259

CopperCopper Cathode
Copper Cast Rods
*Foil is a part of FRP production

56

HINDALCO INDUSTRIES LIMITEDAs a part of our strategic focus
on portfolio enrichment, we are
expanding downstream capacities invarious business segments. On theback of robust domestic aluminium
demand, our estimated market sharein downstream FRP is expected to
grow by 47%. Extrusion and foil market
shares are expected to rise to 11% and15%. We have invested `609 Crore in
Silvassa to build new extrusions plants
with a planned capacity of 34 KTPA.
This will serve the fast-growing market
for extruded aluminium products in
Western and Southern India.
We are entering two new segments
in copper– Cu-Mg Alloy rods forrailways and Inner Groove Tubes forACs. The latter is qualified under theGovernment of India’s PLI scheme.
With this, Birla Copper is on the cuspof a strong growth trajectory.

Expanding Geographic
Footprint
Despite the pandemic, we effectively
used the opportunity to strengthen
our manufactured capital. We have
expanded our scale by the successfulacquisition of two facilities-Kuppam
and Asoj.
Kuppam, formerly Hydro’s SAPA
extrusions facility, has a 15 KTPA
capacity with high-end value addition
capabilities for surface finishing andfabrication. The Kuppam facility,
acquired at `247 Crore of enterprisevalue, offers custom aluminium
extrusion products and solutions forauto, building and construction andindustrial applications. This will further
extend Hindalco’s footprint in theSouthern part of India, which is thecountry’s second largest extrusions
market. The aluminium extrusions
market in India is expected to growfrom the current level of around
373 KTPA to reach about 850 KTPA by2030. With the addition of Kuppam

The acquisition
of Ryker plant
strengthens ourportfolio of Copper
downstream
value-added products

and Silvassa, our total aluminium
extrusions capacity will jump from60 KTPA to 109 KTPA.
The acquisition of Ryker Base Private
Limited, now Asoj, is a key step inenriching our downstream portfolioof copper rods. The acquisition madeat an enterprise value of `323 Crore,
provides several strategic benefits,
including increasing the Company’spresence as a copper rod manufacturer,
time-to-market advantage anddiversifying its product and customer
portfolio.
Also, the plant is well aligned with
Hindalco’s ESG focus. Asoj’s copper
wire rod facility uses German
technology, consumes less energy andhas significantly low carbon emissions.

Future Growth and Expansion
Plans
With the objective of expanding ouraluminium downstream business,
we have announced various projects.
The 34 KTPA capacity extrusions plantat Silvassa is scheduled to produce
its first billet in FY2022-23. We havestarted to expand the FRP production
capacity at Aditya Aluminium and
Hirakud plants by 170 KTPA witha planned investment of about`2,690 Crore.

To support the increased volume ofdownstream production, we are planning
brownfield expansions at Utkal Alumina,
Aditya Aluminium and Mahan Aluminium.
Utkal Alumina has already expanded by
500 kt in FY2021‑22 at a rough investmentof `1,788 Crore and another 0.2 MMTPA
increase in capacity is planned this year.
Our plants at Aditya and Mahan are due
to get an 18-pot expansion each at a costof `417 Crore and `429 Crore
Under the Prime Minister’s Atmanirbhar
Bharat campaign, we are adding
AC coated fin-stock capacity of 26
KTPA at Taloja under the Production
Linked Incentive (PLI) scheme. This
project will serve the requirements ofdownstream customers.
Novelis has also announced a $2.5 Billion(`18,997.50 Crore) greenfield, fully
integrated rolling and recycling plantin the US to support strong demand
for aluminium beverage packaging
and automotive solutions. This willbe the first fully integrated aluminium
facility built in the US in 40 years. It is
expected to provide up to 1,000 highpaying jobs in modern manufacturing.
The plant will make significant use ofstate-of-the-art automation including
Artificial Intelligence, augmented
reality and robotics. In addition, we are
well‑positioned to efficiently expand
capacity at this facility in the future– above the 600 KTPA announced
previously – to capture ongoingstrong demand.

Integrated Annual Report 2021-22

57

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Manufactured Capital
Project Management Framework
We have developed a ProjectManagement Framework (PMF) toestablish a consistent approach to
manage complex capital project overtheir lifecycle and ensure we achieve thecost and time targets. This will enable
better visibility and accountability on
project execution and strengthen ourdecision making. Key processes in the
PMF are:Reinforcing Operational
Excellence : Way toContinuous Improvement
We strive to accomplish operational
excellence by investing in rightcapabilities and capacities. To boost
yields and improve efficiency, we rapidly
adopt new-age technology solutions
and streamline costs, processes andmethodologies. Our initiatives such as
Maintenance Strategy and Execution
Framework (MSEF), introduction ofOpportunities, Ideas and Concepts(OICs), etc., complement our aim toachieve operational excellence. We carryout World Class Manufacturing (WCM)and several other initiatives to enhance
the current processes.
As a part of our efforts to strengthen
our management system and processes,
all our corporate offices and 17 of
our manufacturing units have beencertified with integrated management
systems. This includes all the necessary
certifications for Quality Management
System (ISO 9001), Environment
Management System (ISO 14001)
and Occupational Health and Safety
Management System (ISO 45001).
In addition, six of our units - Aditya
Aluminium, Utkal Alumina, Renukoot
complex, Mahan Aluminium, Hirakud
Power and Smelter and Birla Copper at
Dahej are ISO 50001 certified.
In the world of rapid digitalisation anddependence on information technology
systems, data security has become
critical to business and consumers.
Hence, we have further strengthened58

HINDALCO INDUSTRIES LIMITED

Maintenance Strategy andExecutive Framework

Pre-Execution

60/90 Day Look
Ahead Plan

Project
Execution Plan
& Baseline
Schedule

Project
Organisation

Communication
Matrix/RACIMatrixExecution

Progress & Cost
Reports

ChangeRequests/ Logs

Risk Register &MAtrixDocument
Control

Close-out

Lessons Learnt

Close-out
Reportour systems and implemented theInformation Security Management
System (ISO 27001) across our operationsin the previous financial year.
Our Alupuram extrusion, Renukoot
downstream and Hindalco-Almex
Aerospace Limited (HAAL) plants are
certified with AS 9100 certifications,
qualifying them to make automobile
and aerospace grade products.
Additionally, our Mouda plant has been
granted a Bureau of Indian Standards(BIS) license and has received theapproval for manufacturing of marine
class supplies. Along with Alupuram,
Belur and Renukoot downstream
plants have also qualified for NABL
ISO/IEC 17025 certification. Our Taloja
operation has received IATF 16949
certificate for high quality automobile
grade aluminium production. Mouda
has become our first plant to achieve
Aluminium Stewardship Initiative (ASI)
performance standard certification.
All our products are Restriction on
Hazardous Substance (ROHS) compliant,
and we conduct periodical testing

Contractor /Vendor Ratings

Post Project
Review

Maintenance is one of the key levers
to deliver business outcomes. For amanufacturing unit, it is imperative
to have a sustainable equipment
management policy to ensure that
there are no unplanned or unforeseen
breakdowns of equipment or systems.
To avoid such circumstances andminimise the magnitude of risk, wehave developed a comprehensive
asset management policy, termed as
Maintenance Strategy and Execution
Framework (MSEF). Successful
implementation of MSEF has helped
us achieve better plant uptime.

The entire framework is based on acontinuous loop of Plan, Do, Check,
Act (PDCA) principles. This constitutes
dipstick testing on a bi-annual basis,
formulation of an implementation plan,
implementation assistance, re-checking
improvements in the next assessment,
and the cycle of maintenance continues.
The framework is divided into multiple
sub-process areas which directly
or indirectly aids in equipment
maintenance. Each sub-area has acollection of best practices either inform of strategic initiatives, practices,or results that are produced. The MSEF
audit is a robust system which uses alifecycle approach to manage assets.

Downstream reliability
We have been continuously upgrading
our current installations to deliver
value to our customers. Some notable
technological upgrades for Reliability &Productivity Improvement in Hindalco
Downstream are:
• New CBL Line @ Renukoot –Augmenting capacity of Circle
Blanking by 700 MTPM.
• New Degreasing Line at @ Renukoot– 2000 MTPM.
• New 6” Press @ Renukoot Extrusion– Press No. 9 – approx. 4000 MTPA
- With advanced quenching system,
Log Heater facility- Giving Recovery& productivity advantage and higher
specific pressure enabling to cater
critical profiles.

through National Accreditation Board
for Testing and Calibration Laboratories(NABL) accredited labs to ensure that
we do not exceed the prescribed limit ofrestricted materials.
To meet the requirements andexpectations of our customers, all
the Novelis’s manufacturing sites are
certified with internationally recognised
management systems – ISO 9001 or
ISO/TS 16949 Quality Management
System Standards. Over 80% Novelis
locations are ISO 14001 or EMAS
certified, while seven sites haveinternally certified Environment
Management System.
Novelis also caters to the requirementsof aerospace customers through twocertified plants at Koblenz, Germany and
Zhenjiang, China. Both these plants are
certified with accreditations of DIN EN
ISO 9001, EN 9100/AS 9100, ISO 14001,
NADCAP – Heat Treating, and NADCAP –Non-destructive Testing.

All of Novelis’s
manufacturing
sites are certified
with internationallyrecognised
management systems

Integrated Annual Report 2021-22

59

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Manufactured Capital
MSEF framework checklist
Asset Life Cycle Management
Work Execution and Closure

Asset Performance Management

Skill and Competency
Management

Engineering Document
Management System

Shutdown Management

Maintenance Financial
Planning and Control

Shopfloor Resource Management

Maintenance Planning& Scheduling

Shopfloor Management

Management of Change
MRO Inventory and Stores Management• Downline Upgrade at Press
2 – By Sunwoo, Korea giving us
advantage to serve critical products
and cater the market where manualdragging is prohibited.

ARTIFICIAL INTELLIGENCE(AI) IN PREDICTIVE
MAINTENANCE FOR ASSETRELIABILITY• X Ray Upgrade at Belur SMS Mill– Upgraded to IMS from earlier
Thermofisher make - giving Reliability
advantage, almost 3% jump in
Utilisation.

Appreciation Asset maintenance iscritical for maintaining manufacturing
plant efficiencies. We are leveraging
the technologies available in the
new digital era of Industry 4.0.
Digital sensors are being mounted
on equipment to monitor the healthof the equipment. Data collection,
data analysis, failure prediction
and prescriptive maintenance arebeing followed depending upon thecriticality of equipment.

• New Anodising station at Taloja.
• Re-Commissioned RFI & Overhauled
EMS (Electro Magnetic Stirrer) at
Hirakud DC4 Cast House for criticalproduct casting like CBS.

We have partnered with leading
technology providers to drive
predictive maintenance initiatives
across our plants. How equipment
responds to process variation ismapped by a Machine Learningalgorithm which triggers alerts when
inputs cross a certain threshold.

Hindalco’s deploymentof mechanical androbotic automations
has helped us improve
process efficiencies

Progressing Towards
Industry 4.0• D
 igital twin for smelters andrefineries.

At Hindalco, we have identified anddeployed several mechanical and robotic
automations opportunities to improveequipment reliability, productivity andprocess efficiency.
Our team engaged with leadingindustrial robotic solution providers
to implement suitable solutions to theidentified opportunities.

• E quipment health prediction
with data analytics.

Advancements of new technologies
have helped us to improve process
efficiencies, optimise resource
consumption, and deliver better
quality and energy reduction. Below
are some of the key technological anddigitalisation initiatives taken by plants
in collaboration.
• C austic reduction in alumina
refineries through new filtration
technology• In-house patented new cathodedesign change for energy efficiency
improvement• In-house magnetic compensation
loop for pot lines60

HINDALCO INDUSTRIES LIMITED

Machines at WorkWe are working on several
projects and solutions to drive
the Company’s digitalisation andautomation projects through use ofrobotics.
WORKPLACE SAFETY IN
CONFINED SPACESTo ensure workplace safety, we
have deployed robotic system witha remote operation to performhazardous operation of sludge
cleaning in a risk-free manner.
This technology can be used toremove the sludges from confined
spaces like tanks, vessels, pits,
sumps, underground drains, andcooling tower basins withoutmanual intervention.

ROBOTICS IN RELIABILITY
ENGINEERING

There are many digitalsurvey activities, inspections,
Non‑Destructive Testing (NDT),
etc., being carried out at ourplants, utilising advanced methods
such as• D rone survey of stacks toeliminate huge scaffolding
erection works and associatedrisk with height works.
• R obotic lizard-crawler
with ultrasonic thickness
measurement instruments tomeasure the thickness of tanks,
vessels, chimneys, boiler tube
thickness mapping.
• D igital scanning to develop
drawings for the entire steel
and civil structure in a complex
including static asset condition
appraisal etc.

Integrated Annual Report 2021-22

61

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Manufactured Capital
Working Towards a
Common Goal
As a part of Hindalco’s Operation
Collaboration projects, our teams
across different plants have taken up
various projects to improve operational
efficiency. One such significant project isreducing Auxiliary Power Consumption(APC) in Captive Power Plants (CPP).
At Hindalco, we have CPPs operational at
Aditya, Mahan, Hirakud and Renusagar.
As part of the mega collaboration
initiative across these four locations,
our teams worked together with theobjective of finding possible ways toreduce APC. The result was encouraging
and led to a significant reduction in
APC from 8.2% in 2015-16 to 7.6% in
FY2021‑22. This also resulted in reductionof 55,000 tCO2 GHG emission.

DIGITISATION AT BIRLA
COPPER: POWERING
DIGITAL TRANSFORMATIONWITH INDUSTRY 4.0

To protect our workers from workplace hazards andprevent or minimise work-related injuries and diseases,
we pursued a developmental initiative with one of theservice providers. We will make use of robotics forskimming of dross from moulds of the ingot castingmachines.

Key digitisation initiatives undertaken throughFY 2021-22 include:

Our Manufacturing Centre of Excellence (MCoE) teamalong with the plant team is exploring options toautomate this process. One of the viable solutions thathas been considered is Automatic Tuyere Punching
Machine for PS Convertor. The tuyere hole punching
operation will be done from remote location and thus,
the operator need not be experiencing hot and harshenvironment. This will eliminate manual intervention andthus improve workplace safety.

62

HINDALCO INDUSTRIES LIMITED

8.2

8.2

8.3

8.2

8.1
7.8

FY15

FY16

FY17

FY18

FY19

FY20

FY21

7.6

FY22

We continue to monitor quality anddelivery parameters in downstream
businesses. To complement the effort,
we developed BQiP framework whichhelps in identifying the strengths andopportunities for improvement indownstream operations.

Acoustic Steam Leak Detection system (ASLD)

The BQiP assessment is carried out
at Hirakud, Taloja, Renukoot FRP and
Extrusion, Belur, Mouda and Alupuram.
The evaluation process comprises
24 criteria including Material Handling,
Packing and Storage Standard, RCA& Horizontal replication of learning(Reliability Calls), Computerised
Maintenance Management System(CMMS), and others. The result of
the BQiP assessment shows a 4%
yoy improvement for the FY2021-22
over FY2020-21.

Implementation of ASLD has helped in detecting thesound waves emanating from the steam leak or tube
leakage transforms into electronic voltage signal, whichis then amplified, filtered and processed. This system
indicates the quantum of steam leak and the location.
By using these methods, the leaks were detected andsecondary damages and unscheduled outages were
avoided.

Electronic Level Drum Indicator (ELDI)

The importance of water level monitoring in a boiler
drum cannot be over-emphasised. We installed Electronic
Level Drum Indicator (ELDI) that helps in monitoringwater level including alarm and tripping at pre-set levels.
This eliminates the need for periodic maintenance orcalibration unlike other level monitoring solutions.

9.4

Improving Downstream
Quality through Build Quality
in Process (BQiP) Framework

Future of Technology
HOT METAL HANDLINGAREA – SAFE WORK
PRACTICE IN HARSHENVIRONMENT

Consistent reduction in the Auxiliary power consumption in CPP
Benefits - 180cr/Annum as per baseline figure

Hindalco has acomprehensive
quality management
process to ensure
customer satisfaction

During the year, we implemented
additional process improvement
projects resulting in efficient utilisationof resources, reduced energy
consumption and enhanced productquality and safety.

Integrated Annual Report 2021-22

63

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Manufactured Capital
IMPROVING SMELTERPRODUCTION USING
COPPER COLLECTOR BAR(CUCB)

To improve the current distribution and productivity,
copper-inserted collector bar has been proven as astandard choice. During the year, we undertook several
initiatives to reduce energy consumption such as:• N ew lining design incorporating copper insert
collector bar pots• D igital twin in trial phase for predicting andimproving pot performance• B etter pot instability control and temperature
control• P ot voltage adjustment in CuCB pots by optimising
Force Convection Network (FCN).
As a result, we were able to achieve an average
current of 368.8 ka at Mahan and 367.5 ka at Aditya,
respectively. This led to a production gain of 5.7 kt in
FY2021-22.

• Improving current efficiency by operating at
optimised pot parameters

Some of the additional process improvement projects taken up by
our units in FY2021-22 as below:
Alupuram
Alupuram completed several process
improvements projects such as log
heater reliability improvement, “D”furnace temperature uniformity
improvement, and tear off concept - deep
tongue die. To improve the reliabilityof log heating system, we undertook
a series of actions. For instance, westarted to track the use of data history for

Mouda
Mouda took up a project to improve
the running speed and utilisation of
M5 Finishing mill from 60% to 75%. In
foil business, we use M5 finishing millwhich caters to the entire light gauge
product portfolio. However, during the
manufacturing process, we observed
flatness issue. With the objective toresolve the flatness issue of light gauge
foil, our team collected and analysed
data for eight to ten months.

troubleshooting of any log heater issue
and avoided illogical discard by installing
two new sensors in line.
As a result of it, log heater utilisation
has improved substantially over the lastyears. We were also able to save costand improve efficiency by eliminationof manpower and time involvement for
cutting billets and its transportation.

After comparing different combinationsof coil specifications, we found theimportance of entry tension in thephysical shape of light gauge foil.
As a result of the implementation ofproject, there was a drastic reductionin the number of bad shape coils overthe month. We developed a dashboard
in Intelligent Plant Framework (IPF)
platform for close monitoring of
critical KPI’s related to M5 flatness andinterlinked SMS alert in case of any
deviation against standard operating
range of rolling parameters.

NOVELIS DELIVERINGVALUE-ADDED PRODUCTS(VAPS)

Our subsidiary Novelis is among
the world’s leading suppliers ofhigh-quality aluminum rolled
products for the aerospace andindustrial plate industries. To
support aerospace customers’sustainability targets, we built
a 151-feet (46 m) multi-spindle,
five-axis Computerised Numerical
Control (CNC) milling machine in
our Zhenjiang, China facility.
The goal was to automate the
manufacturing process that canoffer products with improved
buy-to-fly ratio. With multi-spindle
CNC, we were able to reduce cycle
time and improve productivity.

We also created a digital platform
to integrate parameters of upstream
process for ease in data analysis on adaily basis. The project is in its earlystage and is targeted to achieve thedesired outcome by December 2022.

64

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

65

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Manufactured Capital

Hindalco has focusedon operational
efficiencies
under WCM to
stay future readyWorld-Class Manufacturing

AdityaThe concept of ‘World-Class
Manufacturing’ helps us to implement
best practices, focus on operational
efficiency and develop cost-efficientmethods which keep us futureready in today’s fast growing andcompetitive world.

A total of 4,519 Kaizen projects were
submitted by the employees working at
Aditya aluminium. The team submitted
a project with an objective of achieving
sustained improvement in the processes
by reducing auxiliary power consumption
by 50 kWh/pump in Aditya CCP.

We held Kaizen competitions
across all our mining units. With theimplementation of 1,067 Continuous
Improvement (CI) projects, we wereable to achieve a saving of `72.05 Crore
in FY2021-22. A total of 25,919 Kaizens
were submitted from our employees
across locations demonstrating
active participation.

As a result, the unit was able to savepower of 80 kWh/pump and overall
annual saving of 3.5 Million kWh.
It resulted in a total cost saving of`1.3 Crore in FY2021-2022.

`72.05 CR
Saved through continuous
improvement projects

66

HINDALCO INDUSTRIES LIMITED

Mahan
Mahan submitted 6,492 innovative ideas,
completed 101 CI projects and was able
to save `1.71 Crore from the implemented
projects in FY2021-22.
These activities were targeted at
improving operational efficiency andreducing overall costs. Following aresome of the projects which have resulted
in changes at various levels:• E nhancement of productivity incoal handling plant by installing
50 additional carrying idlers andreducing space between idlers from1,200 mm to 400 mm• T he existing hexagonal bolt was
replaced with counter shrunk to
avoid breakdown time of Cast House
Tending Assembly (CHTA) block gearbox assembly

Hirakud Complex
Our employees at Hirakud submitted
a total of 5,943 kaizens, aimed at
improving asset reliability andefficiency. Some of the projects are:• E liminating the issue of bladdersafety valve damage, resulted insaving of `3 Lakh in two months• E nhancing coolant quality by
avoiding mixing of sludge and hence
minimising the regrinding of roll.
With this initiative, we were able tosave a total of `50,000

IDEAS OF ALL SIZESEMPLOYEE-LED INNOVATIONPROJECTS

Our culture of innovation andtechnological excellence has led
to process improvement. This wasevident again at our Utkal operation.
Our Utkal plant experienced a sudden
breakdown at Rotating Magnetic Field(RMF) due to which support beam ofthe pressing plate filter got damaged
and production was halted. The OEMteam gave a timeline of 10 months
to deliver the spare, which was not
feasible for the plant. Hence, wefabricated the same at the workshop.

Our team came up with a solution toconvert the existing lathe machine
to planner machine by reversing
the operation of the lathe machine(tool fixed on to the chuck and job on
the tool piece). Because of this, wewere able to avoid `28.33 Crore of
production loss. This was an example
of operational excellence achieved byour teams.

Some of the other kaizens that resulted
in optimised performance at reduced
production cost are:• A voided plant blackout in caseturbine generator in island mode
trips, resulting in a cost saving of`1.59 Crore• Installed screw charger in placeof table feeder to control the dustin Milk of Lime (MOL) area. This
project is expected to save `1.07
Crore/year
Utkal has been able to submit a totalof 132 Kaizens and 126 completed CI
projects in FY2021-22.

Integrated Annual Report 2021-22

67

Human Capital

Nurturing our talentContributions to SDGs

Our people are our biggest asset andthe key drivers in our journey towards
building a Greener, Stronger andSmarter future. They have delivered
seamlessly with resilience, passion,
empathy, care, and speed throughout
the pandemic and continue to do so.

Value Enhancing GrowthWith a workforce of more than
68,500 across the globe, we remaincommitted to building an agile,
responsive and productive work
environment in line with our strategic
priorities of value enhancing growthand strong ESG commitment.

SP-2

SP-3

Value enhancing
growthStrong ESG
Commitment

Interlinkages with Material Topics andOther Capitals
Material Topics

Capitals Connected

Employee well-being

Financial Capital

Diversity and Inclusion

Intellectual Capital

At Hindalco, through employee-centric
systems and processes, we ensure
the overall wellbeing, health andsafety of our employees. We invest
in capacity and capability building
with specific focus on new ideas
and skillsets catering to an evolving
business landscape.

Occupational Health and
SafetySocial & Relationship Capital

Key Highlights

Our Focus Areas

7.22%

Women employees

2,912
New hires`10.5 CR
Investment in trainings
and skill development

3.5 MN

Training hours

Organisation
Effectiveness

Human capital
Development

Employeewell‑being andHuman Rights

Occupational
Health and
SafetyDiversity andInclusion

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Human Capital

Hindalco’s focus
on building anempowering culture
helps us create aHigh PerformanceContemporaryorganisation

We make continuous efforts toenhance employee experience, instilla better sense of ownership and build
an empowering culture that helps
us create a thriving, high speed and‘High Performance Contemporary’organisation.
As we focus on value-driven growth,
we continue to nurture a cultureof excellence. Over the years, ouremployee-centric policies, processes
and practices have helped us build asafe and progressive work environment.
We reinforce workplace safety bycontinuously identifying areas for
improvement and work towards
implementing them from time to time.
We are an equal opportunity employer
and have zero tolerance towards
discrimination and harassment at
workplace. We uphold human rights
and work in alignment with international
standards to protect the rights of ouremployees. Our feedback platforms
enable employees to report grievances,which are addressed in a time-boundmanner.

70

HINDALCO INDUSTRIES LIMITED

their managers. Each manager received
feedback from his or her team, basedon which the managers prepared actionplans for future.

During the reporting period, survey
witnessed 91% participation with score of
85% in employee engagement against atarget of 90%.

Furthermore, we conduct a biennial
survey known as VIBES and TEAM VIBES
with the help of a third-party agency.
This survey is available in various
languages for the ease of employees.
The survey helps us seek inputs from
employees on various parameters suchas agility and alignment, employer
brand, performance culture, andmanager effectiveness. This survey iscarried out across the organisation for
management cadre employees.

In recognition of our efforts towards
building a culture of High-Trust and HighPerformance, we have been certified asa Great Place to Work by the Great Place
to Work Institute in 2021. This reflects astrong emotional connect employees
have with the organisation as well as thebrand’s contribution to society which theemployees are extremely proud of.

A DAY TO APPRECIATE THE
EFFORTS OUR EMPLOYEES

We celebrated Appreciation
Day on 4th March, 2022, to
acknowledge the talent of ourcapable and committed workforce.
Despite market disruptions,pandemic and an ever-changing
external environment, ourworkforce delivered the best
results, adding value to ourCompany. Furthermore, we madeappreciation notes and festive-likearrangements to make this event
special for our employees.

APNI ZIMMEDARI - DRIVINGCULTURE AT HINDALCO

Organisation EffectivenessOur employee-centric approach
improves efficiency and productivity.
We make continuous efforts to engage
our employees through various
tailored programmes.

Employee Productivity
Enhancing productivity and keeping
our employees motivated during
these challenging times has been ourpriority. We embarked upon this journey
through innovative initiatives to improveorganisation effectiveness. We organised
virtual wellness sessions focussing on
mental and physical health during andpost the pandemic. These expert-led
sessions were attended by more than
1,400 employees. We also started ‘Art ofParenting’ session for our employees andtheir spouses to understand parenting
in changing times and support themthrough this crucial phase of life.
Our Group’s five Values of Integrity,
Passion, Commitment, Seamlessness
and Speed are the guiding force
for our employees and businesses.

Some of our business level initiatives
like ‘Brainbooster’ and ‘Avishkar’ forall our Hindalco units are innovative
ways through which we ensure our
employees live by these core values.
Brainbooster focussed on enhancing
customer experience by leveraging
our Values. For all our Hindalco units,
we organised Avishkaar competition
wherein our managers designed artwork
based on our Values. More than 350+
future leaders of Hindalco participated inthese competitions.

At Hindalco, hundreds of our managers meet annuallywith a goal to further strengthen a contemporary
culture that is centred around ownership, openness,
inclusion, collaboration, and meritocracy. During our
first meet at Shillim, we drafted our Purpose statement‘We manufacture materials that make the world Greener,
Stronger and Smarter’. Eventually, these annual meets cameto be known as the Shillim Movement.

The purpose of these meets is to bring teams together toshape the future path of Hindalco. This year, the fifth editionof Shillim, our theme was ‘Apni Zimmedari’ which translates
to ‘Our Responsibility’. We inspired people to step up
and take ownership for a more accountable, responsive,
inclusive, collaborative, and agile culture. During this meet,
we align our plans to build a solid foundation for the global‘High Performance Contemporary Organisation’ that we
aspire to become.

Another unique initiative is our Values
month celebration across plants, mines
and corporate locations covering almost
85% of our employees through initiatives
like values quiz and recognition,
storytelling sessions, trekking, sports,
art and craft activities, exhibitions,leadership talks, etc.
At Hindalco, we strongly believe that
listening to employees improves job
satisfaction and employee productivity.
Through our listening initiative ‘MEffect’,
we sought feedback from our employees
on overall managerial capability ofIntegrated Annual Report 2021-22

71

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Hindalco Organisation Effectiveness (OE)
Calendar FY2021-2022
Integrator

Change Agents

People Champion

ValuesWorkshops for
Wellness Champs

Wellness workshops
for Managers

Q1

Q2-Q3

Wellness AwarenessSessionHygiene Charter &Awareness Camps

One every month

Q1-Q4

Values Celebration
December andFebruary

Shillim
ValuesReinforcement

Shillim 5.0 at
Business

Q1 – Q4

Q4

Q4

MEffect Survey andManager Action Plan

Manager Vibes Reportand Action Plan

Q4

Q4

Vibes Survey

GPTW

People Champion

Recognition

Cycle 1: Q1
Cycle 2 : Q3

Shillim 5.0 at Units

Q3

Enabler

Pride Awards

Employee Voice

Scholarship

Diversity

Champion ofChampions

AWOO & Pratibha
Scholarship

AWOO Donation
Campaign

Q4

Q1-Q4

Q2

Gender Intelligence& Unconscious Bias
Sessions

Communication
Interaction with
Women Employees
Q2-Q4

Business Townhall
May, Aug, Nov, Feb

Cluster/Unit
TownhallApril, Sept, Jan

Q2-Q4

Employee
Appreciation Day

Praise Platform
Q1-Q4

Q4 - February

Chairman’s AwardQ3 – Q4

Psychological Safety
Sessions for Managers

WAH Conclave
Q4

Q2-Q4

POSH AwarenessQ1 - Q472

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-2273

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Human Capital
Employee Strength

We do not discriminate with respect to sexual orientation, raceor ethnicity in our hiring process. Novelis’ employee strength isapproximately 12,690.

The breakdown of employees for our India operations is givenin the table below. We have 2 expats from USA, while rest of
the employees are Indian.

Employee Category

Aluminium
and mines

Copper

Total

Manpower Strength

49,936

4,961

54,897

During the reporting period, we hired 890 employees in India,
and 2,022 employees at Novelis. Percentage of our open
positions filled by internal candidates was 14.16%. Our averagehiring cost per employee is `25,948. Breakdown of new
employees hired in FY2021-22 with respect to age and gender
has been provided in the table below.

Management & Staff

7,477

575

8,052

New employees hired in FY2021-22

Management & Staff (Male)

6,894

537

7,431

Category

Total

Management & Staff (Female)

583

38

621

Total employees hired

890

Employees hired - Male

747

Employees hired - Female

143

Employees (Breakdown by Numbers) (FY2021-22)

On-roll workmen

13,221

1,013

14,234On-roll workmen (Male)

13,132

1,008

14,140On-roll workmen (Female)

89

5

94

Contract workmen

29,156

3,508

32,664Contract workmen (Male)

28,0793,278

31,357

Contract workmen (Female)

1,159

95

1254

Number of Management Employees (Age-wise)Year

Number of Staff Employees (Age-wise)>50 years

30-50 years<30 years

FY2018-19

1,188

2,395

473

FY2019-20

1,232

2,436

FY2020-21

1,137

FY2021-22

1,348

Year

>50 years

30-50 years<30 years

FY2018-19

606

2,053

945

598

FY2019-20

648

2,019

913

2,582

601

FY2020-21

568

2,068

914

2,437

579

FY2021-22

662

1,947

1,079

Employees hired (> 50 years old)

24

Employees hired (30- 50 years old)

330

Employees hired (<30 years old)

536

Junior management

778

Middle management

17

Senior management95• M arket correction - It is offered to our top performing
employees to be positioned strongly in the market, in termsof salary.

Employee Turnover Rate
For this reporting year, our voluntary employee turnoverrate was 4.6%. Details of the classification of total employee
turnover rate are mentioned in the table below.
Number of
Employees
Separated

Rate (%)

Total employee turnover

404

5.02

Employee turnover – Male

355

4.78

Employee turnover – Female

49

7.89

Employee turnover (> 50 years old)

44

2.19

Employee turnover (30-50 years old)

187

4.27

Employee turnover (< 30 years old)

173

10.43

Total employee
turnover

Talent Retention Strategy
We are committed to building a diverse workforce and vibrantwork culture that provides holistic growth and development
opportunities. Following are our talent retention strategies:

Hindalco has createda robust talentretention strategy

74

HINDALCO INDUSTRIES LIMITED• R
 ing Fencing - At Hindalco, we use this strategy for setting
aside funds in the form of deferred compensation for our
key employees.

Integrated Annual Report 2021-2275

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Human Capital
Learning and Development

Performance Evaluation
Our performance evaluation process is
systematically structured to recognise andreward employee performance througha transparent evaluation mechanism.
The process starts with goal setting by
employees at the beginning of the year.
These goals are set in alignment withbusiness needs, and a roadmap is createdalong with timelines, to achieve thegoals. Mid-year assessment and yearly
performance reviews are undertaken
to evaluate and assess employee
performance. The manager evaluates
performance on a five-point rating scale.
Our Review Framework aligns
organisational objectives with individual
goals. With this framework, weconcentrate on critical aspects of ouroverall business. The 3C + 2S framework
plays a key role in boosting employee
productivity. The performance evaluation
is based on goal-wise assessment, career
aspirations and relative performance ofteam members.
Managers take support of 360-degree
feedback, with use of our bespoke
platform “PingMe”, for employees, tohelp them further in their career growth.
To ensure transparency and fairness

CUSTOMER
SAFETY &SUSTAINABILITY
CASH

3C

2S
SYSTEMS &PROCESSES

COST

of performance evaluation, employee
ratings are validated by multiple levels ofreviews from top management.
The Managing Director’s goals aredefined by the Company’s 3C + 2Sprinciple. Customer centricity andproduct development is a focus areawith dedicated objectives on sales andcustomer satisfaction. The cash andcost goals focus on profitability, cash
flows, production and cost optimisation.
The sustainability goals cover Hindalco’s
performance in air, water, waste,biodiversity, climate management
and overall ESG performance. Systemand process goals cover digitalisation,

HR planning and driving culture.
Performance evaluation is linked to theachievement of these goals. ESOPs areallocated based on performance, andvesting depends on the performance ofthe business in the preceding year.
We also have a focussed learningintervention for people managers on
managing biases. Apart from individual
performances, we also encourage
our employees to participate in teambuilding exercises and collective thinking
to tackle professional challenges. All our
employees receive regular performanceand career development reviews.

We believe in holistic developmentof our employees and want them toexcel in technical skills, behaviouralcompetencies as well as functional
capabilities. Our learning anddevelopment efforts include internaland external trainings, focussed
group trainings, e-learnings, coaching,mentoring, on-the-job training (OJT),
workshops and seminars. Each
employee is guided by their manager
to develop their skill roadmap throughMy Development Plan (MDP) on ABG’scentral HR platform, Poornata.

Capability Development for
Future Leaders
In order to nurture future leaders
through specialist technical career paths,
in the reporting year, we identified 42
employees to develop special skills andexpertise and sent them to United ArabEmirates for a year for training. Plans areafoot to deploy 25 employees to Novelis
for a three-year period to acquire skills
related to downstream business.
We have designed leadershipprogrammes for our future leaders i.e.,managerial employees to build the rightcompetencies at every career stage.
Our top talent is encouraged to undergo
these leadership programmes.
Some of the key development
programmes are:Human Capital Development
Talent management strategy
Talent management strategy is a core principle of Hindalco’s people policy. A few pillars of our strategy include:
Hiring of young
talent700+ from
campuses over thelast 5 years

76

Learning andDevelopment

Gender Diversity

Focus on building
technical/specialist
capability

Increased people
movements

Structured training
and development
programmes during
the first-three years ofhiring30%+ female hires
from campus

42 employees selected
for special skills
training

10% yoy increase

HINDALCO INDUSTRIES LIMITED• F
 FFD (Fit for Future by Design)This 15-month programme is about
discovering self, developing businessacumen necessary for transition incareer from a specified function oroperational path.
• C opper Leadership Series - This
programme is targeted towards
middle managers to deliver
superior performance and be result
oriented in their current roles, takeaccountability and drive initiatives on
their own to enhance performance.
The above-mentioned trainings
helped groom our future leaders andenabled them to build capabilities forbetter teamwork, time management,risk taking and communication.

Training for our Board of
Directors (BODs)
We follow structured orientation
and a training programme known as‘Familiarisation Programme’ for the
Independent Directors to understandthe business and operations of Hindalco.
We welcome a new Director to theBoard of Directors by sharing various
documents like introduction of Hindalco,
profile of BODs and senior management,
code of conduct, latest annual andsustainability reports, etc. This reporting
year, the Familiarisation Programme
was attended by six of our Independent
Directors for a consolidated training timeof 30 hours.

Approach for Identifying New
Training Programmes
Our human resources team is responsible
for supporting training and development
activities for management and nonmanagement level employees.

Training Needs Identification (TNI)
after interacting with employees
and leadership

70:20:10 Principle for on-the-job
training, other trainings
and classroom learning

Goal setting process for each
employee by feeding data into
My Development Plan (MDP)

Training plan is prepared by Unit
HR and L&D team accordingly

The details of programmes identified by
HR and attended by our employees istracked by our Cornerstone on Demand(CSOD) platform.

• A scend Sales Academy - This
three-month programmes focusses
on building interpersonal skills andcreating business effectiveness forsales and marketing employees.
• X
 SEED (Excellence in Skill
Enhancement and Employee
Development) - A leadershipprogramme for our junior managers
on team development, goal setting,building agility and resilience.
• F
 LY (Future Leaders in You)This programme focusses on selfdevelopment of junior managers
and leading a team in a digital
environment.

Employees of Birla
Copper’s Asoj plantIntegrated Annual Report 2021-22

77

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Human Capital
Other Trainings
E-learning
The outbreak of COVID-19 led us toshift the majority of our trainings
to a virtual platform. We promoted
Gyanodaya Virtual Campus (GVC)
application and other digitalplatforms to encourage e-learningand approximately 2,482 employees
downloaded the application.

Sustainability
ESG focussed trainings wereconducted to hone the skills of
people as ‘Water Champions’,
learn biodiversity management,
waste accounting and waste-tovalue models and build greenbelt
development capacity. The e-learning
courses include environment, law,reporting, disaster management, andother topics.

Risk Management
Our employees undergo several
risk management trainings as
it is important for us to identify
and mitigate any threats or risks
pertaining to our operations.
Enterprise Risk Management (ERM)
sessions are organised for our
employees monthly in collaboration
with Hindalco Technical University.
These sessions are carried out onrotation for three to four plants and50-100 nominated participants. Apartfrom this, sessions on ERM framework
and business continuity management
are conducted monthly by our risk
managers and risk champions at units.
We are planning to create a prerecorded course for our employees
who wish to deepen their knowledgeof ERM. We also conduct quarterly
Board meetings on ERM to discuss thecurrent market trends.

Aluminium
and Mines

Copper

Total

Hours

1,624

406

2,030

E-learning hours

Hours

334,287

23,5603,57,846

Sustainability/ESG trainings

Hours

6,017

181

6,198

Safety trainings

Hours

1,85,504

15,5602,01,604

Human Rights trainings

Hours

2,171

0

2,171

Employee training category

Unit

Risk Management trainings

Average training hours per Employee for Hindalco are mentioned below. Averageamount spent per Full Time Employee (FTE) on training and development is`2,927.
Hindalco

Category

Male Female

Total training
1,07,099
man-days
Training
man-days
63,762(Management& Staff)

Total

3,584 1,10,683

3,339

HINDALCO INDUSTRIES LIMITED

6,448

6,605 3,24,186

Copper

156

3,568

136

3,705

1,62,510

2,33,316

245 43,582

2,880

20

2,900

1,61,676

2,08,158

Training mandays (On-roll
workmen)

43,337

Averagetraining hours
per employee

43

42

43

33

29

33

191

98

Averagetraining
man-days per
employee

5.32

5.21

5.32

4.16

3.63

4.15

23.86

12.31

We also continuously measure theimpact and effectiveness of thesetrainings for our employees byimplementing the Kirkpatrick Modelof evaluation. We have classified theevaluation process into four levels.
• L 1 Evaluation (Feedback on Content
and Trainer by the participants
after the session)

Augmented
Reality training is amajor thrust area

4,41,474

67,101• L 2 Evaluation (Post training
assessment to check theknowledge gained by participants

78

Male Female

Total(Hindalco
andTotal Novelis
Novelis)

Aluminium and Mine

Applicable only for certification
programmes of HTU).
• L 3 Evaluation (Change in behaviourof participants after 60 days)• L 4 Evaluation (To meet the training
objective and Return on Investment)(i)	L4-A: Meeting the Training
Objective(ii)	L4-B: Calculating Return on
Investment

Hindalco Technical University

New Training Initiatives at HTUHTU: Key Highlights FY2021-22

The Hindalco Technical University (HTU),
established in 2017, offers programmes
tailored by technical experts to ensure
relevance with current trends andoperational requirements.

During FY2021-22, we started three new
training initiatives for our employees tostrengthen their skills in niche areas.

• 3 0+ programmes in collaboration
with external partners covering
900+ participants• S pecialty Knowledge Integration
Programme (SKIP) - This initiative wasstarted to ensure focussed learningon specialty chemicals business as
we plan to expand our portfolio of
specialty chemicals. We started thisinitiative at Muri and have conducted
six sessions to date with more than
150 participants• 1 79 training programmes withparticipation of more than 14,000
employees from Aditya Birla Group
Businesses

HTU has created schools for Power,
Smelter, Mining and Refinery inassociation with Industry professionals.
These schools have run 43 programmes
involving 3,406 participants till datetotaling 17,989 learning hours. These
programmes are designed and tailored
to industry requirements and in linewith our motto ‘Technical Competency
building through Schools of thepeople, for the people, by the people’.
Going forward, we are planning toopen schools catering to copper
manufacturing and downstream
operations.

• Intellectual property rights (IPR) –This training strengthens the IPR
portfolio and protects the intellectual
property of technical resources. We
have carried out five sessions on
IPR with participation of more than
200 employees• D ata Analytics through Artificial
Intelligence (AI) and Machine
Learning (ML) - In this initiative,
we help our plant professionals
to understand key crucial processparameters through big data analysis.
We have conducted one session on
this so far and more sessions areplanned for the future• 2
 4 safety and sustainability
programmes attended by more than
3,000 employees
As a way forward, we plan to develop
more intellectual property byencouraging and building internal
training resources. We aim to broaden
HTU’s programmes to include
supervisors and workmen. We are in
the process of further strengthening
our programmes through strategic
collaborations with academic experts
and research institutions.

Integrated Annual Report 2021-22

79

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Human Capital
DOWNSTREAM
TRAINING INITIATIVES

To understand and operate our fully
automated aluminium extrusion
plant at Silvassa efficiently, we
selected 42 of our employees fromdiverse educational backgrounds
for a structured capability building
programme in Dubai, UAE to bea part of this one-year training
provided by prominent extrusion
leaders in the world.
The learning method adopted was
70-20-10 wherein 70% of training
was covered by industrial visits andoperations of Kuppam and Silvassa
plant. 20% of the training wascovered by subject matter experts
and mentors in India with the helpof a review process. The remaining
consisted of classroom and online
training. This training helped our
employees comprehend better
about the essential process in our
fully automated plant.

ALUMINIUM
STEWARDSHIP INITIATIVE(ASI) PROGRAMMELEADING INCLUSIVELY-DIVERSITY AND INCLUSIONINITIATIVE AT NOVELIS

To train our employees on global
responsible business practices,
we started the Aluminium
Stewardship Initiative (ASI)
certification. Our employees fromselect departments at Renukoot,Taloja, Belur, Mouda, Alupuram and
Hirakud FRP participated in thisprogramme held on 24th and 25th
March, 2022 in Kolkata.

To work towards our commitment ofa more inclusive workplace, Novelis
designed ‘Leading Inclusively
Workshops’ for managers to help
them on their journey to become
more inclusive leaders. The
workshop sessions offered somestrategies for leading inclusively
as a first step in our commitment
to make Novelis an inclusive
workplace. These workshops were
facilitated by diversity and inclusion
Subject Matter Experts (SMEs) andNovelis Culture Champion. The
facilitators helped our leaders to:

The programme concentrated on
implementing ASI performancestandard, to meet customer
expectations, demonstrating
sustainable practices to external
stakeholders and addressing
sustainability aspects in the value
chain. The training also focussed
on business integrity, policy andmanagement, transparency,
material stewardship and casestudies.

• L earn strategies to interrupt
unconscious bias and be a more
inclusive leader• Value diversity and the opinionsof others• L earn concepts of microaggressions and psychologicalsafetyDiversity and Inclusion
Workplace diversity not only drives more creativity andinnovation but also enhances the capability of an organisation
to tackle several challenges by bringing in a more holistic
perspective. At Hindalco we focus on diversity not just in termsof numbers but also harness diverse talent to build a stronger
and more resilient organisation.

Hindalco has sent
women from Silvassa
plant for international
exposure to extrusion
plants in Dubai

80

HINDALCO INDUSTRIES LIMITED

Hindalco promotes
a diverse andinclusive workplace• Understand concepts ofUnconscious Bias

Our share of women in total workforce increased from 7.00%
in FY2020-21 to 7.68% in FY2021-22 for our India operations.
We achieved this by hiring women from campuses, promoting
women to senior roles and at the executive level. Furthermore,
our Board of Directors comprise two female representatives.
We plan to increase the percentage of women in STEM to 5.75%
by FY2022‑23. Our approach towards diversity is bottom-up
and we continue to focus on developing a strong pipeline ofhome‑grown women managers. Over 30% of our management
trainee hires have been women over the last few years.

Through various Organisational
Effectiveness (OE) programmes, wepursue diversity by appreciating thedifferently abled. We have 13 differently
abled permanent employees. We
remain committed to safeguarding
our employees by providing equal
opportunities. We strictly adhere to
our organisational policy as to notdifferentiate between our employees
based on their colour, caste, creed,gender, nationality, religion, and race.

POSH Act, 2013, we have formed Internal
Complaint (IC) committees at all our
locations. Circulars released by IC are
regularly communicated to employees
and cases are reported and registeredthrough the IC, portals and helplines.

Harassment, whether sexual or
non‑sexual, is a way of discrimination.
At Hindalco, we respect the dignity of
every person and interdict all formsof harassment. We make planned
efforts to support our employees witha gender-neutral, bias-free and healthy
working environment. We abide by thePrevention of Sexual Harassment (POSH)
policy which ensures strict actions on
any employee found guilty of sexual
harassment. New joiners are sensitised
to the POSH concepts and company
POSH policy during their induction
process. To ensure compliance withThis year we reported six cases and tookappropriate action. We did not receive
any cases against discrimination at
workplace during this reporting year.

Current
Share During
FY2021-22

Target for
FY2022-23

Share of women in total workforce (as % of total
workforce)

7.68

8.50

Share of women in all management positions, including
junior, middle and top management (as % of total
management positions)

7.37

8.50

Share of women in junior management positions,
i.e., first level of management (as % of total juniormanagement positions)

7.74

9.00

Share of women in top management positions, i.e.,
maximum two levels away from the CEO or comparable
positions (as % of total top management positions)

-

2.50

Share of women in management positions in revenuegenerating functions (e.g., sales) as % of all suchmanagers (i.e., excluding support functions such as HR,
IT, Legal, etc.)

4.80

6.00

Share of women in STEM-related positions (as % of total
STEM positions)

4.70

5.75

Representation of Women

Integrated Annual Report 2021-22

81Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Human Capital
Diversity and Inclusion
Initiatives• ‘Soaring High’ programme forour women managers to build
leadership capabilities andaccelerate their growth. We ensure
women are adequately represented
in cross-functional team projects.
• ‘Springboard ’ programme forwomen employees comprisingclassroom teaching and crossfunctional/ business projects
spread over 18 months.
• ‘Dual Career Policy’ enables
employees and their spouses topursue their careers within the
Company by offering positions atsame location.
• ‘ Women at Hindalco’ series for
our women employees giving
them an opportunity to listen to
inspirational women leaders, join in
discussions, build POSH awarenessand recognising exceptional
Women at Hindalco.

With more and more women joining
manufacturing, this industry iswitnessing a change in the workforce
demographics. At Hindalco, we
support a diverse and inclusive culture
through policies to ensure safe andcomfortable working environment for
women employees.
Our ‘Women at Hindalco’ initiativeis encouraging women to workon the shopfloor. We help our
employees climb the corporate ladder
by inspiring them to take on key
responsibilities and challenging tasks
and break out of their comfort zone.

• 4
 6% of the IC Members
participated in POSH refresher
programme and they, in turn,
trained 3,000+ employees acrossall our units.
• W e have an e-learning courseon diversity and inclusion on
Gyanodaya portal which provides
all the details regarding POSH Act
and the need for inclusion acrossgender and geographies.

Ankita Ekka, Alumina
operations at Renukoot“Operators se meri dosti ki shuruyat
chai se hui thi” - Ankita Ekka from
Renukoot’s Alumina operations.
Working at the alumina plant
environment in Renukoot is a scary
proposition. Working 8-hour shifts

82

HINDALCO INDUSTRIES LIMITED

Employee Well-Being and Human Rights

WOMEN ATHINDALCO

in areas full of dust and caustic
fumes which cause skin irritation
is another downside. Plus, beingarea-in-charge of A or B shift entails
handling production, quality,
manpower management and operator
discipline at once. This is a tall order
for anybody and many girls were
unwilling to take up these shifts
because of the awkward environment.
Tea was a great place to start. Ankita
started taking her cup over to theoperators shed during tea breaks.
“Initially, it was a bit uncomfortable
for all of us, but I started asking themto share their safety concerns – which
is a big issue in any plant. Initially,
they were hesitant to speak but when
they saw that I had made it a daily
practice, they began to come to mewith their problems,” says Ankita.
Today, Ankita manages 25 to 30
operators in a shift. If there’s aproblem to be solved or a leakage
to be handled, she stays with themtill the end of the shift to ensure
everything is in order. She is visible
and very much in charge and theoperators have accepted her as one ofthem. “The shopfloor is my favourite
place – I like talking to people andbeing a part of the process of creating
something and this is where theaction is,” says Ankita.
There are many such women at
Hindalco, persevering through all
challenges and making their mark on
the shopfloor.

Medical insurance
to self and family
members

Plant townshipaccommodation

Employee well-being is a key pillar of
our HR strategy and we are committed
to enrich the lives of our employees
across the value chain. All ourpermanent employees are entitled tovarious benefits and programmes suchas paternity leave, maternity benefits,
health insurance, life insurance, etc.
We encourage collective bargaining
and freedom of association to ouremployees as good practice even at
the contractors’ end. A total of 60% of
our on-roll workmen are a part of tradeunions and are covered by collective
bargaining agreements. We always
respect the law of the land and India’s
constitutional framework.
According to our organisational policy
and Maternity Benefit Act, all ourmanagement and staff employees
are entitled to avail parental leave.
Our maternity support programmeis aligned with our vision of being an‘aspirational place to work’ for women.
It supports our employees in one of
their critical life events, of becoming
a mother while continuing to excel in
their professional journey.
The programme design enables
employees to integrate their personal
and professional commitments
seamlessly during this period (until thechild turns two) without any negative
impact on their compensation,
employment status, performance
rating and talent rating. To the
expecting women employees, weoffer benefits like:Group personal
accident insurance

Hospitalfacility• M aternal leave - A female
employee is entitled to 26 weeks
of paid leave with an option to add
60 additional days by combining
privileged leaves. A provision toavail a total of 5 paternal leaves isalso present for male employees.
• S upport in local commute towork for expecting mothers
in metro and mini-metros Designed to offer a safe andcomfortable local travel to workfor expecting mothers.
• A ccompanied outstation
travel for mothers (infant andcaregiver) - Support a new motherin her transition back to work andensure that she does not miss out
on important official travel.
• H ealthy pregnancy programme To provide easy access to healtheducation and online solutions totake care of herself and her baby
during and after pregnancy.
• P hase back programme forseamless transition - We offer
flexible work options like workfrom home, work from satellite
office and part-time working to
new mothers and mothers-tobe, enabling them to seamlesslytransition into maternity leave andjoin back work.
• T ransition guide - To guide
employees on emotional wellbeing and aspects of balancing
personal and professional
commitments during this criticaljuncture.

Commutearrangements
to employees• C areer management support To ensure minimal impact ofmaternity on the career ofan employee by securing her
performance and talent ratings.
• C hild adoption leave - To offer
comprehensive leave support towomen employees and enable
them to assimilate the adopted
child in the family.
• M iscarriage leave - All women
employees can avail six weeks
leave in case of a miscarriage,
in alignment with the Maternity
Benefit Act 1961.
• C hildcare facilities - Our corporate
mothers can avail the new childcare
facility at our head office.
Some other employee benefits include:• P rivilege leave - All employees are
eligible for privilege leave, which
can be availed for taking a leave
for more than three days. Annually,a total of 30 PLs are provided
at locations having 6-day work
week and 26 PLs are provided at
locations having 5-day work weeks.
These leaves can also be accrued
and later cashed out. This gives theemployees more time with their
loved ones.
• Flexible working hours - At Head
Office (HO), employees can start
any time from 7 am to 10 am andcan opt for 4 days a month as workfrom home.

Integrated Annual Report 2021-22

83Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Human Capital
To address employee grievances,
we have a grievance redressal
process in place in accordance with
the Whistleblower policy wherein
our employees at all Hindalco units
can register their complaints. These
complaints are addressed by thesupervisors, and we try and resolve
them swiftly and seamlessly.
Salaries and remuneration arestrictly driven by the qualifications
and experience of our employees.
At present, there is no female
representation at the Executive level.
We offer salary and remuneration
ratio of 1:1 for female to male at
executive level.
In management positions, average malebase salary is `5,71,641 (`19,39,143 total
remuneration) while average femalesalary is `399,381. (`14,30,935 total
remuneration). For non-management
employees, the average base salary formales is `1,87,910, while for females it is`1,57,398.

STEPS TAKEN FOR
EMPLOYEES DURING
COVID-19 PANDEMIC

During the pandemic, we
extended our medical coverage
to our employees, their families
and contractual workers.
We vaccinated more than
20,000 of our employees andcontractual workers.
This year, we started setting asidea particular amount to save lives sothat there is no financial burden on
our employees. We gave additional
rewards to our employees forgoing the extra mile during thesechallenging times.

To protect the interest of our employees in case of any operational changes, we offer
a notice period of 60-90 days for our employees and 21 days for our workers as per
Section-9 of Industrial Disputes Act, 1947.
During this reporting year, 8,052 employees were entitled to parental leave.
Parameters

Male

FemaleTotal

Total employees who took parental leave during
FY 2021-22

212

5

217

Total number of employees who returned to work in
the reporting period after parental leave ended

211

5

216

Total number of employees who returned to work
after parental leave ended and are still employed
12 months after their return to work in 2021-22

205

4

209

Return to Work Rate (%)

97.00

100

99.53

Retention Rate (%)

97.61

100

98.13

‘Emotional’ part concentrates onmental health of our employees.
We have dedicated ‘Mpower’ griefmanagement sessions for our
employees who have lost their
loved ones.
Our employees undergo one-on-one
sessions with trained counselors todeal with emotional distress. We havecarried out 48+ sessions which helped

We organised mental healthsessions from 5th to 11th May, 2021
for all our employees and theirfamilies who were COVID-19
positive or were quarantined.
Our employees reported that thesesessions helped them deal with theuncertainty more effectively andhelped them stay calm even during
these challenging times.

Human Rights

HINDALCOWELLNESS CIRCLE

In the Hindalco wellness circle, we
focus on four key pillars: physical,
emotional, financial and social.
Our first pillar ‘Physical’ focusses
on the physical wellbeing of ouremployees. We carry out regular
health check-up camps and nutrition
sessions for our employees led
by experts. We promote hygieneawareness in all our units and carryout fun activities like Zumba sessions,marathons and sport days.

MENTAL WELLBEING

our employees to deal with the lossof their loved ones. We have trained
54 volunteers from all Hindalco
units to become an emotional In theally to provide support and point
employees in the right direction if
they require professional assistance.
Our emotional first aiders are trained
to promote good mental healthrecovery and protect those who areof harm to themselves.
‘Financial’ pillar emphasises oninvestment and retirement plans of
our employees to secure their future.
Our last pillar ‘Social’ focusses on
employee and community wellbeing.
It is mandatory for our employees
to engage in community service
once every quarter. Recognising theimportance of employee wellness,
we have built recreational centres andhobby clubs for employees to spend
their leisure time.

At Hindalco, we are committed toprotecting our employees and abide
by our human rights policy. We havepolicies in place to safeguard our
employees and contractual workmen
against harassment and discrimination.
These policies are aligned with theprinciples of the following laws:• International Labour Organisation
(ILO)
• U
 nited Nations Global Compact(UNGC)• Data Privacy Policy• P revention of Sexual Harassment(POSH)• Equal opportunity employer policy• Indian labour laws (Child labor,
Women migrant labour, Abolition
Act, etc.).

Protecting our Employees andWorkers
Our Contract Labour Management
System makes sure that our workforce
registered is above 18 years of age.
Further, the risks related to humanrights are captured by our risk
management framework called Hindalco

84

HINDALCO INDUSTRIES LIMITEDIn its remote locations,Hindalco offers a
range of activities
for employees andfamilies to unwind

Management Framework (HMF) at allplant locations. Rojnama, an online
compliance tool has been introduced
at our units. Our HR teams ensure thatthe compliance details are fed into
this tool regularly. This data is auditedby an external agency, with followups done by legal compliance auditsthat incorporate human rights andlabour laws. To ensure risk mitigation
related to human rights, a risk register
is maintained relating to working
environment, human rights, legal
and occupational issues along withhealth and safety across all the units.
The risk mitigation plan addresses
risks associated with employees andlocal communities. All our units andmines comply with this plan. We have
prepared a Human Rights Due Diligence
tool which takes inputs from Sedex
Members Ethical Trade Audit (SMETA)
tool. This tool has been introduced asa pilot project at Utkal and it will be
implemented across Hindalco units
after receiving feedback and inputs.
We also make sure that the minimum
wages received by our workers are inaccordance with The Minimum Wages
Act, 1948. We have a system in place
for identifying and mapping humanrights risks in new business relations
and all identified risks are periodicallyreviewed through our ERM processannually. This reporting year, we did
not report any human rights violations,hence, no remediation actions wererequired.
We carried out training programmes forour employees as well as our security
personnel. All our security personnel
are covered under human rights training
programmes for prevention andmitigation of any human rights violation.
The total training man-hours provided tosecurity personnel and our employees
are provided in the table.
Category

Total

Total training man-hours
provided to security personnel
for human rights training

226

Total training man-hours withrespect to human rights for
employees

2,171

Protecting Indigenous
Communities
We had zero cases reported against us
related to violation against rights ofindigenous people. Our HR department
at all Hindalco units are responsible forhandling such incidents. We work in
co-operation with our communities andlocal bodies to support the indigenous
people of the area.

Integrated Annual Report 2021-2285

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Human Capital
Safety Trainings
We develop and focus on relevant safety
training modules for all our employees
and contractual workers during
induction. Three days of safety training
is compulsory for each employee,
and it is a part of the refresher courseon corporate policies, standards andsafe work practices for occupational
hygiene hazards.
With respect to safety audit findings,
history of incidents, safety department
inputs, our Corporate Safety function
identifies new training for individuals
based on work profile. Our safety
training and programmes are carriedout by safety professionals who arehighly trained and competent. They are
assisted by the line managers under theguidance of our Corporate Safety Cell.
Furthermore, standard implementation
sub-committees also help to recognise
employees who need specificknowledge skills. We make sure that
our employees have all certifications
and licensing as required by applicablegovernment regulations.

Hindalco’s Zero
Harm policy
includes a robust
safety framework

Occupational Health and
SafetyAt Hindalco, our goal is zero work
related casualties. This goal led to thecreation of a ‘Zero Harm’ policy forwhich we have designed a robust safety
framework. This framework includes
our state-of-the-art health and safety
management system. The entire systemcovers all our employees, contractors,
business associates, visitors and thecommunity as well.
We have attained ISO 45001 (2018)
certification for our manufacturing
units and mines. Being an advocateof ‘Zero Harm’, it is imperative that
we identify high risk activities inour manufacturing units and assessthem thoroughly to take required
preventive measures. To ensure better
safety monitoring, we have installed86

HINDALCO INDUSTRIES LIMITEDCCTV cameras and Video Enabled
Data Analytics (VEDA). We havealso installed a sustainability data
management system called Enablon tomonitor Behavior-based Safety (BBS).
Apex Safety Board, which is at the topof our safety hierarchy further consistsof Unit Safety Boards. Each of the units
have six safety sub-committees namely
Safety Standard Implementation
sub-committee, Incident Investigation
sub-committee, Safety Audit andAssurance sub-committee, Safety
Training sub-committee, Behavior
Based Observation sub-committee
and Contractor Safety Management
sub-committee. These sub-committees
are responsible for implementing andmonitoring safety protocols across theorganisation.

• Robotic descaling of tank

Due to COVID-19, we arranged most of
our training programmes either virtuallyor physically in small batches to ensurethat we follow all the precautions andmaintain social distancing. With the
new trend of a hybrid working model,
we introduced a training course on
COVID-19 appropriate behaviours
at office and home. This year, we
introduced 29 training programmes
based on the identification oftraining needs.

• E-permit system• Emergency preparedness• R esidual life assessment withcrawler for structural stability(RLA)• Work at height• Infrared automation for hot-spot
detection in green anode plants• Electrical safety• M onitoring and inspection of work
done at height through drone
technology• Machine guarding

Some of the key initiatives undertaken
in occupational health and safety are
mentioned:• M anagement of Change (MOC)A document that gives information
on procedures at the time of aprocess change covering impact
assessment procedure, risk
management and risk mitigation.

This year, we conducted training
sessions for our subject matter experts
and members of the task forces to
update them on safety topics. The
training sessions included a wide rangeof topics like hazard identification using
Job Safety Analysis (JSA), chemicalsafety, hot work and fire safety, mobile
crane safety, role, and responsibilities
of Field Contract Administrator (FCA).
Evaluating the effectiveness of thesafety training is vital to us. So, to get

Category
Training on Safety Management Staff
Training on Safety Permanent Workmen
Training on Safety Contract Employees

a perspective on further improvementof the training, we collect feedback fromparticipants and managers immediately
post training. Each training module
contains a pre-defined questionnaire tomeasure its effectiveness. Workers withless than 80% score are supposed totake the safety training again. Training
feedback is also taken from the manager
or HOD in order to evaluate the need forany further training. The table highlights
the training hours for the reporting year.

Unit

Aluminium
and mines

CopperHindalco(Total)Numbers

5,431

467

5,898

Hours

1,85,504

15,5602,01,064

Numbers

12,552

1,023

13,575

Hours

3,76,409

23,465

3,99,914

Numbers

16,203

3,451

19,654

Hours

8,12,218

3,20,301

1,132,519• Scaffolding safety• Defensive driving
Hindalco adopts thehierarchy of control tomanage safety risks

Integrated Annual Report 2021-22

87Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Human CapitalOccupational Health Services

E-PERMIT IMPLEMENTATIONACROSS HINDALCO

We have adopted a three-pronged
approach to safeguard our employeeswith focus on working conditions,working environment and promotionof workers’ health. Based on theseareas, our Group Sustainability cellhas developed ‘Occupational HealthManagement (OHM)’ standard. OHS
services are delivered in accordancewith this OHM standard. We carry out
Qualitative Exposure Assessment (QIEA)
by evaluating the quality of the working
environment through surveillance at theworkplace, according to ILO
Convention 161.

At Hindalco, we involve skill-based
manpower to carry out day-to-day
manufacturing functions. To ensure
there is no deviation from Permit
to Work (PTW) procedure, we haveintroduced an e-permit system.
Through this web-based system,
it is possible to apply, approve andissue permits. The permits can beraised by authorised personnel
or permit applicants (PA) from his
handheld device. After physicalverification, the Approving
Authority sanctions
the permit.

The table highlights work-related injuries for the reporting year.
Aluminium and mines

CopperNovelisEmployees

Contractual
workers

Employees

Contractual
workers

Employees

Contractual
workers

Hindalco+Novelis(Total)Number

17

15

2

3

23

12

72

Total recordable injuries

Number

49

38

4

7

88

25

211

Fatal accidents

Number

0

1

0

1

0

1

3

Number/Lost Time Injury Frequency
MillionRate (LTIFR)
hours

0.37

0.22

0.71

0.21

0.73

0.65

0.39

Total Recordable Injury
Frequency Rate (TRIFR)

Number/Million
hours

1.06

0.55

1.42

0.48

2.81

1.35

1.16

Total man-hours worked

Hours

4,60,78,868

6,92,55,082

28,15,192

1,43,95,685

3,13,49,199

Category

Unit

Lost Time Injuries

During the reporting period, we
regret the occurrence of two fatalities
for our contractual workers at our
India operations and one fatality at
our Novelis operations. However,
we reported zero fatalities for our
employees at India and Novelis
operations.
To ensure the safety of all our employees
and contractual workers and to work
towards a goal of zero fatality and lifethreatening diseases, we have formed
task forces and sub-committees at all88

HINDALCO INDUSTRIES LIMITED

Hindalco units. The task forces comprise
JSA subject matter experts guided
by nine technical safety standards,
eight administrative standards andeight corporate guidelines. Our two
prime focus areas in limiting thenumber of injuries is Contractor Safety
Management (CSM) and Operational
Discipline. All Hindalco units follow CSM,
and all the manpower is deployed as per
CSM procedure. Secondly, operational
discipline has been identified as a major
focus area for FY2021-22.

1,84,35,497 18,23,29,523

As a part of this initiative, all Hindalco
units have identified ‘in line of fire’activities and have taken measures toeliminate the hazards. At our Apex safety
Board meeting chaired by the MD, we
discuss all serious unsafe observations
made under the serious injury andfatality prevention programme. This
programme also allows circulation ofsafety alerts across all Hindalco units.

To analyse the exact pollutant load
to which an individual or a group is
exposed to, we carry out Quantitative
Exposure assessment (QnEA). QIEA and
QnEA are integral tasks of the Hindalco
OHS and all mines comply with therecommendations coming from them.
Both QIEA and QnEA studies are carriedout by certified industrial hygienists
and live pollutant samples are taken
and analysed by national/international
laboratories. Further, medical checks
are carried out for individuals or groups
based on the pollutant they are exposed
to. The findings of the QnEA studies arebenchmarked with NIOSH standards
and Indian Factories and Boilers
regulation standards.
We also conduct pre-employment androutine medical examinations for our
permanent and contractual employees
such as prescribed by national statute/international guidelines.
We follow occupational healthstandards for First Aid and healthemergency management, HIV, TB andmalaria management. There are medical
centres at all our sites with qualified
industrial health physicians available
to employees at all times. Also, there
is a corporate level ‘Integrated HealthCommittee’ chaired by Senior leader
from the mines cluster and consists ofindustrial health physicians and subject
matter experts.

The committee discusses andimplements the best practices at all
our units. For the second consecutive
year, we did not observe any workrelated ill health. We trained 200
hygiene champs to improve hygiene
infrastructure at all units. To manage
stress in a better way, we are in theprocess of creating an OccupationalStress Management standard.
We have adopted Occupational Health
Risk identification and Management
standard. This standard mandates us toreduce the concentration of pollutants
at source and reduce the exposure
duration. We provide PersonalProtective Equipment (PPE) wherevernecessary. We strictly follow thehierarchy of Occupational Health Risk
Assessment & Management to ensure
reduction at source by implementing
engineering controls first, then theadministrative controls and lastly,
we provide PPE where required.
We have a Group level policy inplace to avoid discrimination of any
form against HIV and TB patients.
Hindalco, as a part of Aditya BirlaGroup, is a signatory to Safe Water,
Sanitation and Hygiene (WASH) pledge
movement of World Business Council
for Sustainable Development (WBCSD)
and all recommendations of WBCSD are
implemented in letter and spirit.

Safety risk assessment
We have comprehensive standards for
Safety and Occupational Health Hazard
identification and Risk assessment
and Management. In FY2021-22,
a comprehensive review of risk
assessment using Job safety analysis(JSA) was undertaken. JSA is a structured
technique which reviews all the activities
identified by the respective departmentsof all units. We have mandated ‘nowork without risk- assessment’ and all
work-related activities are reviewed
before commencement. All our plants
are assessed and audited by third party
entities or statutory authorities.
We have Hazard Identification andRisk Assessment (HIRA) subject matter
experts at each Hindalco unit, who are
deployed after receiving a five-day
comprehensive training followed by aIntegrated Annual Report 2021-22

89

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Human Capital
post training assessment. All activities
with risk rating of ‘8’ and above areregulated by implementation ofnecessary control measures to bring
the risk at ‘As Low as Reasonably
Practical (ALARP)’. Also, to perform thisactivity, ‘Permit to work’ recognised bycompetent authority is mandatory.
To report unsafe activities, conditions,and practices, we have created various
platforms like safety committees at
each unit, complaint boxes, Behavior
Based Safety Observations (BBSO) etc.
We encourage our contractual workers
to always report any incidents through‘near miss and potential incident card
system’ or by taking it up with their
managers. There are several rewards
and recognition schemes for motivating
safe behavior and promoting theidentification of unsafe conditions andpractices. Our workers are rewarded
for reporting unsafe activities andbehaviours and the safety performanceof the unit has a bearing on the annual
incentives of all unit employees. We
spread awareness on safety related
critical matters through the ‘safety themeof the month’ initiative.

90

HINDALCO INDUSTRIES LIMITEDLEADING INDICATOR
INDEX (LII)

At Novelis, we introduced LII tochange our safety culture and to allow
Safety Management System to focus
on proactive safety activities. The ideaof LII is based on three metrics namely
risk reduction, corrective action
focused on hierarchy of controls andleadership engagement. Each Novelis
plant is given a score depending
on how they perform against each
metric. At every unit, a database ismaintained tracking activities related
to each metric.

HOUSE OF SAFETY

The introduction of LII led to multiple
benefits including reduction in risks,
injuries, and fatalities. Furthermore,
LII promoted excellent leadershipengagement with corrective andpreventive action plans. LII was
introduced in FY2021-22 with a targetof 95% by the end of year, but Novelis
outperformed by 190%, exceeding theinitial target.

THINKSAFE360

Employee safety is our biggest
concern, and we take all actions
to eliminate the risk of hazards inthe workplace. Novelis Europe started
an initiative named ThinkSafe360,
with an aim of achieving zeroaccidents or near miss case related toheavy loads and mobile equipment;using systematic risk elimination
methods, based on employee
exposures at the facilities fromthe entrances to the exits of theplants. This programme targeted
three areas of concern: plant layout
and conditions, machine centers,
and employee behaviors and risk
awareness. Using these three areas ofconcern and systematically following
the material flow throughout thefacility, all sites assessed potential
hazards where employees could be
hit, struck, pinched, or crushed bya coil, ingot, scrap, machine parts,
train, forklift, truck, or crane. Basedon the risk assessment, site leadersdeveloped solutions to eliminate
the hazard or to reduce the risk to an

acceptable level. Web conferenceswere held every month to sharepractices, hold accountability andprovide updates on the various
projects throughout Europe.
Due to the ThinkSafe360 initiative,
numerous benefits were realised.
Because site layout was considered,several areas were identified where
additional barriers needed to beconstructed to protect pedestrians.
In some situations, full areas werecompletely redesigned to eliminate
employee exposure to mobile
equipment. In addition to layouts,
sites began implementing anticollision and proximity detection
technology systems on mobile
equipment, which uses sensors toprovide warnings to pedestrians
and operators to prevent accidents.
Novelis Europe will continue withThinkSafe360 initiative for the
FY2022-23 since it has resulted intremendous reduction in risk.

We initiated the House of Safety programme in Novelis
South America to create a robust EHS management
system and incorporate EHS subjects in our daily
routines. With an aim of a safe workplace, HOS engages
entire manufacturing units, tracks leading KPIs andencourages employees in EHS solutions. An elected
EHS committee has weekly meetings discussing KPIs.
In our monthly safety meetings, all manufacturing units
share their results, present best practices, and recognise
employees that contribute to making EHS excel.
The committee consists of employees from different
functions which gives a comprehensive approach while
addressing safety issues and working towards a safer
environment. Having a multifunctional group withdifferent mindsets provides better solutions to drive
actions and results with their multi-functional knowledge.
Since the initiation of this programme, there have been
zero SIFs and DAW.

ROBOTIC DE-SCALER
AND MINI DOZERFOR REFINERY TANKSOVERHAULING

Descaling activity consists of removing heavy scales
which fall from the side walls and rake arms of the tank.
This activity can result in caustic mud splash on body or
injury due to hand-held tool slip, trip and fall. In order toeliminate the risks associated with this activity, we havestarted a pilot initiative of using an automatic descaling
robot using electro hydraulically driven de-bricking
machines and mini dozer for safe and remote material
handling at Belagavi in a mud washer tank.
The prime objective of this pilot is to reduce manpower
deployment and enhance safety by minimising risk of
injury due to manual descaling. This pilot activity will also
focus on reducing the current turnaround time (TAT) of
14 days, increasing availability of equipment and reducing
time spent on maintenance.

Health and
Safety Future Goals
Short term
10% improvement yoy in
LTIFR and TRIFR.
Zero fatalities.
Medium term
Best in manufacturing Industry in
LTIFR, TRIFR performance.
Our Vision
Zero
Harm to all our stakeholders.
At Hindalco,awareness on criticalsafety related
matters is spreadthrough the Safety
theme of the monthIntegrated Annual Report 2021-22

91

Intellectual Capital

Turning new ideas
into possibilities
Aluminium and copper offer endlesspossibilities for creating new shapes
and forms, unlocking the potentialof technology. Our R&D efforts
are two pronged. We tap internal
expertise in product development,
manufacturing, design; and wepartner with recognised institutions
to meet the fast-growing demand for
new-age products.
Digital technologies have been akey driver in innovation at Hindalco
and we are leveraging the digitaltransformation of our business andprocesses to deliver superior products
to our customers. Our R&D capabilities
have enabled us to enter and succeedin the high-end downstream productsegments in a big way.

Contributions to SDGs

Value Enhancing Growth
SP-2

SP-3

SP-4

Value enhancing
growthStrong ESG
Commitment

Portfolio
Enrichment

Interlinkages with Material Topics andOther Capitals
Material Topics

Capitals Connected

R&D innovation andTechnology

Financial Capital
Manufactured Capital
Natural Capital

Key Highlights

Our Focus Areas

114

Strengthening
R&D fordownstream
products

New
technologicalsolutions

Product quality
and performance

Digitalisation

Patents filed`716 CR

Research andDevelopment (R&D)
investments

320

Patents granted40

New products andapplications developedCorporate Overview

Strategic Overview

Statutory Reports

Financial Statements

Products andapplications developed
and accepted bycustomers

New products
and applications
developed in lab

HIC Belagavi

9

7

HIC Tribology

2

5

HIC Semi-fab

35

HIC Dahej

2

2

Our Capitals

Intellectual Capital
beverage can and specialties markets.
Our Spokane centre in Washington
specialises in molten metal processing.
Gottingen center conducts R&D for new
products and processes that can be
added to our portfolio. At Koblenz andZhenjiang we have innovation centers
for aerospace. We also have centers in
Ulsan and Detroit.

At Novelis, we are continuously
focusing on reduction of energy,
waste, water as well as carbon
footprint. On the technological front,
we have developed BPAni coating
for can end sheets, coating products
and coffee capsules made with highrecycled-aluminium content sheets.

HIC

Development of ProductsThis year we took significant strides
on new product development and willcontinue our efforts in the years tocome to expand to other segments.
As aluminium and copper are key
metals and will be essential in future
megatrends, we are exploring solutions
and products that can be developed tocater to the market.

All of Hindalco’s plants
are equipped with
their own research anddevelopment centers
and technical cells

Innovation at Hindalco
We foster a culture of innovation
throughout the development cycleof our products and processes.
Our focus is to strengthen the R&D
capacity to develop downstream
products and bring new technologicalsolutions as we contribute toward
India’s Net-Zero Goal.
With support of a strong R&D team,
we filed 114 patents in FY2021-22 and
320 patents were granted including
patents applied in previous years.
We invested `716 Crore in the R&D
portfolio in FY2021-22.
We have four Hindalco Innovation
Centers (HIC) at Belagavi, Taloja andDahej with world-class R&D facilities.
Our HICs are recognised by the
Department of Scientific & Industrial
Research (DSIR), Government ofIndia. Quality assurance is importantfor us, and all our labs are accreditedby the National Accreditation
Board for Testing and Calibration
Laboratories (NABL) with standard
17025:2005. The accreditation assures

94

HINDALCO INDUSTRIES LIMITED

that all our labs are technically andanalytically sound. In addition to that,
all the plants are equipped with theirown research and development centres
and technical cells.
Our centres encompass the full
spectrum of research and development,
applied technology, and market-led
innovation. At HIC-Belagavi, we conduct
R&D related to bauxite, specialty
alumina & hydrate and Bayer’s process.
At Taloja, we have HIC Tribology and
HIC Semi-fab. We conduct R&D related
to oil and lube at HIC Tribology, andaluminium-related metallurgicalapplications at HIC Semi-fab. HIC-Dahej
specialises in R&D related to copper
smelting, copper refining, byproductapplications and copper-related
services.
Novelis is working on expanding
the portfolio by introducing newtechnologies. It has eight research
centers and four Customer Solution
Centers (CSC) across the globe. At theGeorgia, Shanghai and Sierre locations,
we conduct innovations for applicationsof aluminium in the automotive,

For aluminium-related products andprocesses, our focus is on developing
specialty alumina-based products andtheir application in refractory castable
and improving the efficiency of theBayer’s process. We are innovatingaluminium-based solutions for coaches
and railway wagons, recyclable
packaging, and new-generation
aluminium-based solutions. In the areasof EV and mobility, we plan to jointly
develop aluminium-based solutions
for Original Equipment Manufacturers(OEMs). The OEM’s commitment tosustainable, lightweight, and highperformance products opens anopportunity for us to develop productsin this sector.
We are focusing on developing new
downstream products as well as
value-added products from copper
slag, electrorefining, electrowinning ofcopper, and mass balance of impurities
from copper smelting and refining.
We have developed two applications
which have been accepted by thecustomers and two applications areat pilot stage in lab.

Novelis has eightresearch centers andfour customer centers
across the globe

Development of Hydrate to
Produce EN45545/HL Composite
for Railway Metro (Equivalent toON904)
Railway vehicles are categorised as
per the fire-safety Hazard Level (HL)
associated with their operation anddesign. EN45545/HL is the European
standard for fire safety with HL1, HL2,
and HL3 as hazard levels, where HL1 isthe lowest and HL3 is the highest. We
have developed a special hydrate for
EN45545/HL-3 composite for polymericcomposite products. Our hydrate will be
used as filler in the composite materialsof railways and metros and will makethe coaches safer to travel. The Total
Global sales potential is 130 KTPA andIndian Potential is 3 KTPA. Our product iscommercialised as grade name HLV213
and is approved in Europe.

Development of Low Soda
Submicron reactive alumina

It is produced through extensive millingby using specialised grinding aid to avoid
agglomeration. Due to its properties,
it is used in fine and advanced electroceramics and castable refractories.
The plant trials of the product arecompleted, and the commercialisationof the product is in progress.

Reactive alumina comprises fineparticles with high thermal reactivity
and low water absorption capacity.
We have developed reactive alumina
with low soda content with improved
high-temperature mechanical properties.

Integrated Annual Report 2021-22

95

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Intellectual Capital
Development of Precipitated Superfine Hydrate

Development of bimodal reactive alumina

Delivering High Quality
Aluminium has become the metal of
choice for manufacturers across theglobe. It is being used in a myriadof applications with expectationsof different performance attributes.
Hindalco is an industry leader, wellknown for delivering high-quality
products with strict adherence tothe customer’s requirements andinternational quality standards.

We have developed a precipitated superfine hydrate to
replace the halogen filler in fire retardants. Our productcan bear temperature and has better flame resistancecompared to conventional fillers and is developed througha precipitation process. We have completed the plant trials
and the patent has been filed for the process. We will supply
the hydrate to manufacturers of polymeric cable, composite
silicone insulators and fire retardants. We plan to expand
the capacity from 30 KTPA to 60 KTPA in the future.

DEVELOPMENT OF EPOXYBASE COAT FOR AC FINSAT TALOJA

AC fin stocks are used in domestic
and industrial Heating, Ventilation
and Air conditioning (HVAC)
applications, and have stringent
performance requirements ofstrength and formability. Epoxy
coats are applied to the fins forprotection and durability. Under
Govt. of India’s PLI scheme, at
Taloja, we are planning to put an
AC fin coating line.
As coating material is one of the
major contributors to the cost of
manufacturing coated fins, we havedeveloped an in-house epoxy coatfor AC fins. With this development,
we expect a 30% cost reduction forcoated AC fins.

96

HINDALCO INDUSTRIES LIMITED

We have developed bimodal reactive alumina for selfflow refractory castable. We developed this product bycontrolling milling of two feeds and by using grinding aid.
We are also testing this value-added product in low cement
castable composition to check the flowability and thestrength. The process is developed at the lab and tested at
the plant scale. We have also started commercialisation of
the products.

ALUMINIUM E-BIKE
PROTOTYPE

BB590- ALUMINIUM
BUSBAR ALLOY

A large segment of urban last
mile delivery service segment isbeing catered to by the e-bicycle
segment. Aluminium frames are apreferred choice for these bikes andthe market is currently reliant on
imports to meet the demands.

We have developed a new patented
aluminium busbar alloy BB590 inassociation with Renukoot FRP for
application in two-wheeler electricvehicles. BB590 is characterised byexcellent formability and electricalconductivity. This product has bestin-class current carrying capacity
and corrosion resistance. It alsosignificantly improves electricaland thermal conductivity making
it ideal for electrical applications.
Actual application has shown aconsistent 25% increase in wirepull-off load in assembly, thereby
improving the reliability of thebattery pack. We have tested thealloy successfully passed resistivity,
corrosion and welding tests.
We are currently manufacturing
Busbar prototypes for testing atbattery pack level.

Considering this as an opportunity,
our HIC Semi-fab has designed
and assembled an e-bicycle usingaluminium frame manufactured byHindalco Extrusions. We are also
exploring preliminary CAD tools
for frame designs and automating
frame performance feasibility
analysis under various load cases.

Our R&D centres are constantly
working to enhance the value
provided to the customers
through improvements in productperformance and quality. To improve
the process and ensure quality
delivery of products, we conduct
Life Cycle Assessment (LCA) at all
our plants. We identify the potential
impacts of products and services
during their entire lifespan and takemeasures to reduce the impacts.
In FY2021-22, we initiated a refreshof the LCA for products from five ofour downstream plants, out of which
we have completed the assessment
for Mouda.

QUALITY IMPROVEMENT OF
LIBERATOR CATHODE AT
COPPER REFINERIESAt the Birla copper, the electrolyser
collects about 120‑160 m3/dayof electrolyte to control theconcentration of copper andimpurities (As, Bi, Sb) in theelectrolyte. Copper from the solution
is recovered in the liberator section
by an electrowinning process usinga Pb-Ca-Sn alloy as the anode. The
reprocessing or recycling of liberated
cakes is a challenge due to highlevels of contamination. We havedeveloped two processes to reducethe impurities in the liberator cathodeand the inventory of copper. Before

electrowinning, the electrolyte
must go through flocculation andcentrifugation. At the same time,
the quality of the existing liberator
cathode inventory can be improvedby grinding and screening. In thiscase, the impurities are separated into
finer fractions and can be recycled.
With the application of the twoprocesses, we observed improvementin the quality of the liberator cathodewith a 90% reduction of arsenic andreduction in copper inventory.

ALLOY QUALITY
IMPROVEMENTDURANIUMTM BETAIn FY2020-21, we developed andpatented a new alloy, DuraniumTM.
This alloy provides superior strengthand a better surface finish.
In FY2021-22, we launched window
systems made with this alloy.

This year we have developed a beta
version of this alloy which seeks toenhance mechanical properties byapproximately 20% as compared to
the first-generation Duranium™ alloy
which itself is a superior productcompared to the competition.

Integrated Annual Report 2021-22

97

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Intellectual Capital
COLD CLADDINGTECHNOLOGY

The cladding technology in thealuminium industry currently has
inherent drawbacks leading to poor
recovery, high cost and inconsistentquality. After initial lab development
in collaboration with IIT Madras,
we conducted pilot trials for oneside clad in FY2020-21. These trials
demonstrated extremely good
metallurgical bond between thecore and liner alloy, and lab brazing
simulations gave promising results.
We also attempted two side claddingin these trials. Material produced fromthese trials was subjected to customer
evaluation. We carried brazing

Associations for Innovation
Hindalco’s strong association withindustry-leading technology providers
and research institutions has enabled
us to deliver high quality products andresolve complex problems across ouroperations.
Our collaborative research with Aditya
Birla Science and Technology Center(ABSTC) continues to deliver benefits invarious technology areas. We developed
a new in-house design for 400+ ka cellHindalco leverages its
industry connect tofind unique solutions
to complex problems

98

HINDALCO INDUSTRIES LIMITED

trials in a production furnace andperformance evaluation was done by
the customers.
Clad layer characterisation showed
improved thickness percentage anduniform Silicon particle distribution
with the novel method. The customer
feedback that we received has
been encouraging, and commercial
qualification trials have beenrequested. We have completed thebasic engineering of the technology
and specifications have been agreed
with the customer for commercial
trials in FY2022-23.

technology for stage-wise amperageincrease. We have also developed Novel
process flow sheets for production of
99.99% high purity alumina. With these
innovations we have filed three patents.
We partnered with IIT Bombay, IIT
Madras, Fraunhofer Institute, andBrandenburgische TU, Germany for
projects on additive manufacturingof aluminium. The project worth isapproximately €5,00,000 (`41.2 Million)
and is funded by Indo-German Scienceand Technology Centre. For aluminiumbased rechargeable battery and MELD
on solid-state additive manufacturing
technology, we have collaborated with
Graphene Manufacturing Group. For
the development of coated current
collectors, collaboration with Birla
Carbon and Novelis is underway.
We are also developing a solution for
utilising processed copper slag in cement
industry and are trying to implement
an arsenic recovery process from theliberator cake waste of our copper plant.
We are working with IIT Gandhinagar for
extended process development for Ag/
Au recovery from primary dore-slag from
Precious Metal Recovery (PMR) plant.
We are partnering with Manush Labs,a startup incubator platform, to findinnovative startups for finding solutions
to alternative non-plastic packaging
and Flue Gas De-sulphurisation (FGD)
waste utilisation. We are working
with IIT Bombay on a Bauxite residue
neutralisation project, using flue gas froma power plant and polymeric bricks fromwaste Bauxite residue and fly ash, thelatter project nearly at commercial stage.

Digital Hindalco
We have embarked on a journeyof digital transformation and arecontinuously working to create
best‑in‑class Information Technology (IT)infrastructure with robust cybersecurity.
We have developed an IT policy toprotect data and improve digital security.
In addition, 90% of our IT infrastructure
is certified with ISO 27001 Information
Security Management System. We test
our IT infrastructure twice a year for
any potential cyberattacks and conduct
external verification to identify the cyberthreats and possible impacts on business.
We have a defense-in-depth strategy,
which includes access on a need basis,24x7 Security Operation Centre (SOC)
to detect anomalous activity andincident threats, with Incident Review(IR) system and security controls at

different levels. We have introduced
advanced technologies like Endpoint
Detection Response (EDR), Secure Web
Gateway and Network Access Control
to further safeguard the infrastructurefrom threats. We have made updates
to the existing Security Informationand Event Management (SIEM) system,
which identifies the patterns that could
indicate cyberattacks, including othertechnologies like Security Orchestration,
Automation, and Response (SOAR). In
addition, we are focussing on introducing
a Web Application Firewall (WAF) with
Protocol Analysis Module as an engine,
to block the users who don’t comply with
our firewall policy.
We keep our employees informed andupdated about information security
and cyber security through e-trainings
and frequent communications. We
conduct an annual information security
week to increase awareness on digital
security and cyber security. We have also
developed a capability development
programme, DISHA (Digital Shiksha),
to upskill the workforce on the Internetof Things (IoT), Analytics, Augmented
Reality (AR), asset maintenance, andother digital technologies. We educate
all the newly joined employees about
information security at the orientation
programme. In the event of suspicious
activity, the employees can register acomplaint at the intranet portal, andthen further actions are taken.
Our Directors and the executive
committee members are involved in thedecision-making related to information
technology and cyber security. The Risk
Management Committee looks after
our cyber security strategy. Our Chief
Information Security Officer (CISO)
oversees the preparedness against
cyber-attacks and ensures appropriate
action is taken to safeguard company
assets. As a result, we received nocomplaints regarding loss of data,
breaches, and thefts, and the entire
system was protected from cyber-attacks
in FY2021-22.

TRACK AND TRACE

To track and trace our shipments sentby road, railways, and sea, we haveadopted end-to-end digitalis ation
using IoT. Our domestic shipments
are sent by road and railways andinternational by sea. To keep a bird’s
eye view over several outboundshipments, we track the shipments
sent by road transport by GPS
powered by digital dashboard. This
enables us to get complete visibility
and ensures security of the shipment.
In case of emergency situations,the system notifies the drivers in
the locality for help and also lists
out nearby police stations to callfor assistance. Through this system,

we can also predict delays and planfor mitigation actions.
We use the Indian railway’s databasefor tracking shipments sent by rail.
We track time live status, estimate
the delay time, if any, and plan for theunloading of the shipments using datafrom this system.
The shipments that we send by sea
are tracked by a third-party integrated
platform which helps us keep an eye on
our shipments, any potential stoppages
and plan for quick delivery. We alsodetail out the mitigation actions for
anticipated delays in the future.

BLOCKCHAIN SUSTAINABILITYSYSTEM FOR WASTE MANAGEMENTBlockchain system is ideal for waste
management as it stores data inblocks, provides a transparent
and secure records ensuring thatno one can tamper those records.
At Hirakud, we installed a blockchain
sustainability system for waste
management to efficiently track wastefrom generation to end-of-life cycletransparently which aligns to UN-SDG
for quantification into sustainability

metrics. The platform also enables us
to authenticate certification for waste
processing from the vendors, ensuringthat the waste is actually being
processed and does not get disposed
unethically in the value chain.
After the successful application of
the technology at Hirakud, we alsoplan to implement this blockchain
technology solution at our otherplants.

Integrated Annual Report 2021-22

99

Natural Capital

Conserving,
Preserving and Restoring
In alignment with our strategic priority
for strong ESG Commitment, we wereable to position ourselves as an industry
leader in aluminium in the S&P Global
Dow Jones Sustainability Index Corporate
Sustainability Assessment 2021, for thesecond consecutive year. We believe wecan accelerate value creation by catering tosociety’s increasing demand for sustainable
solutions, which will benefit our Company,
stakeholders and communities.
We see the need and urgency to go beyond
our limits and drive a positive change
through our environmental endeavours.
We bolster our natural capital in alignment
with our commitment to the UN Decadeon ‘Ecosystem Restoration’. Our key focus
areas have been defined to contribute toprevent, halt and restore, the impacts that
we have on the ecosystem and bring about
a positive change.

Contributions to SDGs

Value enhancing growth
SP-3
Strong ESG
Commitment

Interlinkages with Material Topics andOther Capitals
Material Topics

Capitals Connected

Water Management

Financial CapitalCompliance Management

Manufactured Capital

Air Emissions

Intellectual capital

Waste and Hazardous
Materials Management

Human Capital

Energy and GHG Emissions
Management

Social & Relationship Capital

Key Highlights

100%

Increase of renewableenergy installed capacityfrom FY2020-21

18%

Reduction in specific energy
consumption for aluminium
from base year FY2011-12

18.5%

Reduction in specific GHG
emissions for aluminium
from base year FY2011-12

86%

Waste utilisation with
6 basis points increase
from FY2020-21

Our Focus Areas
Net Carbon
Neutrality

Zero Waste toLandfill

Emphasis on
recycled content
and Circular
EconomyWater positivity
and Zero Liquid
Discharge (ZLD)

Sustainable
Mining of coaland bauxite

Biodiversity
Conservation
with No Net LossCorporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Natural Capital

Within and beyond
fence rainwatercollection storage
capacity

9%

Reduction in specificfreshwater consumption
for aluminium frombase year FY2018-19

Environment Management
Environment Governance at Hindalco
starts with the Board of Directors, with
the Risk Management & ESG committee
providing strategic inputs. Our Apex
sustainability committee, having
representation from two Executive
Directors, tracks implementationof sustainability initiatives in theorganisation through monthly
performance reviews. We have instatedtask forces for each material work area toimplement initiatives as per the directionof the governing bodies.
We also conduct Environmental Impact
Assessment (EIA) for our new operations
as a regulatory requirement, as per
applicable law. We continually strive toimprove our environmental performanceby integrating sound environmental
systems and practices. We haveformulated an Environment Policy
and Sustainability Policy to ensure ourcompliance. During the reporting period,
we faced two incidents of environmental
non-compliance. However, no penalty
was paid, and as a mitigation strategy,
corrective actions have been taken.
Further, all our operations are runningwith necessary permits and clearances.

We have undertaken TCFD based
assessment to identify the climate
related risks and opportunities to alignour business strategy to the global
climate transition, and the details of
the same can be found on our website
with our detailed TCFD report. We have
ISO 14001:2015 certification for all sitesof Hindalco. In FY2021-22, we spent`413.9 Crore in Capex and `601.1 Crore
in revenue expenditure on Environment
management. At Novelis, we spent $16
Million(`121.5 Crore) in Capex and $2
Million (`15.2 Crore) in operational
expenditure on environment
management.

Towards Decarbonisation
With global temperatures rising andclimate impacts becoming moreevident, there is an urgency to act.
Acknowledging the energy-intensive
nature of our business, we at Hindalco
believe that our decarbonisation strategy
will enable us to contribute towards theglobal commitment of limiting global
warming to 1.5 degrees Celsius. We havestarted our journey towards Net Carbon
Neutrality and aim to achieve it by 2050.
In line with this target, we aim to reduce
the specific energy consumption andspecific GHG emissions by 25% by 2025

from the base year of FY2011-12. For our
Novelis operations, we plan to reducethe carbon footprint by 30% by 2026 andreduce energy intensity by 10% by 2026.
The path towards decarbonisation has
opened a diverse pool of opportunities
for us. The levers on which we arerelying for decarbonisation are energy
mix and energy efficiency, increasing
focus on value-added products andproduct stewardship. We are tapping
opportunities for increasing renewableenergy generation, improving energy
efficiency through innovative projects
and exploring modern technologies likegreen hydrogen, low carbon fuels, andCarbon Capture Utilisation and Storage(CCUS). We are expanding downstream
manufacturing capacity to develop
value-added products that utilise lessenergy and have much less impact overtheir lifecycle. We are also accelerating
the development of low-carbon products
to cater to upcoming markets.

Focus on Downstream
Expansion

Product
StewardshipInternal Carbon Pricing
Internal Carbon Pricing (ICP) is aneffective tool for managing carbon risk
and opportunities, and to enable morecarbon efficient projects to get approved
through the investment decision process.
We have adopted the ICP mechanism tomonitor the cost of carbon. This initiative
will help us to prepare for upcoming
regulations, Emission Trading Schemes(ETS), Carbon Tax and taking investment
decisions related to low carbon growth
initiatives.
We initiated a solar project at Bagru witha capacity of 500 kWp with 390 kWhof battery storage. Before the initiationof the project, we used the ICP tool to
calculate the Internal Rate of Return(IRR) and Net Present Value (NPV).
With the ICP tool, our IRR and NPV
increased, and the project got a boost
in return metrics which made approvals
easier. The ICP tool considers the direct
returns from the project, hidden savings/
cost from fuel, electricity, and hidden
savings/costs of carbon.

We took several initiatives to increase
the share of renewable energy at
Hindalco. In FY2021-22, we added
51 MW of renewable energy capacity,
taking the total installed capacity to
100 MW. We are also in the process
of executing 24 MW clean energy
projects and finalising another 55
MW of projects. Our target is toexpand the renewable energy capacity
to 300 MW by 2025, including 100 MW
with storage. We are also planningto take up projects on a large scale
through third-party round-the-clock
renewable power sourcing, to the tuneof 100‑300 MW in the near future.

102

HINDALCO INDUSTRIES LIMITED(Million GJ)

FY19

FY20

FY21

FY22

(Million GJ)

Renewable
EnergyNon – Renewable
EnergyTotal

Hindalco
Novelis0.14-

276.6430.27

276.78
30.27

Total

0.14

306.91307.05

Hindalco
Novelis0.23-

272.7330.51

272.96
30.51

Total

0.23

303.23303.47

Hindalco
Novelis0.28-

254.9037.28

255.18
37.28

Total

0.28

292.18292.46

Hindalco
Novelis0.59-

270.21
39.69

270.80
39.69

Total

0.59

309.90310.49Year
FY2018-19

FY2019-20

FY2020-21

Energy Consumption
It has been a fruitful year for us with the
production and sales figures soaring
at an all-time high. The total energy
consumption for Hindalco and Novelis
amounted to 310.49 Million GJ in
FY2021‑22.

Renewable Energy Consumption

0.59

yoy increase ingreenbelt

10.7 MN m3

0.28

Ash utilisation with 24
basis points increase fromFY 2020-21

10%

Our Novelis operations consumed
39.69 Million GJ of energy.
The increased energy consumption
was due to the expansion of our global
operations. To reduce the energy
consumption from conventional fuels,
we are in the process of preparing
a roadmap for renewable energy
consumption. We have also carriedout site assessment for Photovoltaic(PV) panel installation. We plan toimplement two new renewable projects
in the upcoming future.

0.23

114%

Energy Mix andEnergy Efficiency

Our Hindalco operations consumed
270.8 Million GJ of energy in FY2021-22.
Out of the total energy consumption,
96% was by our aluminium and mines
operations and 4% by our copper
operations. We purchased 0.13 Million
GJ of renewable energy and around8.03 Lakh Non-solar REC & 0.25 Lakh
Solar REC in FY2021-22. Six of our sites
are certified with ISO 50001 i.e. Energy
and Carbon Technical standard.

0.14

Key Highlights:

FY2021-22

Integrated Annual Report 2021-22

103

Corporate Overview

Strategic Overview

Statutory Reports

Our Capitals

Financial Statements

Emission Management
Reducing energy consumption isimportant for reducing GHG emissions,but we aim to go beyond. We haveinitiated projects for transition to low
emission fuels and are working with the
public sector to ensure availability ofsuch fuels at the sites. We are planningto operate a portion of our smelter
operations at Aditya using LNG in placeof coal at the power plant.

0.002

4.1

FY2019-20

Novelis

21.55

8.69

0

0.27

-

Total

295.34

11.72

0.23

0.27

4.1

Hindalco

255.65

1.9

0.28

-

2.7

FY2020-21

Novelis

25.64

11.42

-

0.21

-

Total

281.29

13.32

0.28

0.21

2.7

Hindalco269.72

2.68

0.59

0.01

2.2

FY2021-22

Novelis

29.34

10.05

-

0.3

-

Total

299.06

12.73

0.59

0.31

2.2

104

HINDALCO INDUSTRIES LIMITED

8.97

11.49

10.58

11.25

(GJ/MT)

70.57

We measure specific energy
consumption for our aluminium andcopper operations. For aluminium,
our specific energy consumption isthe energy consumed per tonne ofprimary aluminium across our smelter,
alumina refinery and anode plant
operations. For copper, our specificenergy consumption is the energy
consumed in copper operations per
tonne of copper cathode produced.
Our efforts to increase the operational
efficiency in aluminium and copper
verticals have resulted in reduced
specific intensity for aluminium andcopper.

(GJ/MT)

71.25

Energy Intensity Copper

70.90

Energy Intensity Aluminium

72.86

Energy Intensity

In FY2021-22, the GHG emissions for our
Novelis operations were at 2.3 Million
tCO2e for Scope 1 and 2 and 17.92 Million
tCO2e for Scope 3. The rise in emissions
is due to the expansion of activities at
Novelis. Though, with the use of recycled
aluminium, we avoided 16.7 Million
tCO2e emissions in FY2021-22.

26.07

FY2019-20

25.94

FY2020-21

24.33

FY2021-22

25.76

Total
(Scope 1 + 2)

1.15

0.51

0.04

27.77

1

0.58

0.11

27.63

0.83

0.39

0.04

25.59

0.79

0.45

0.14

27.14

Emissions - Novelis (Million tCO2e)
Scope 1

Scope 2

Total
(Scope 1 + 2)

Scope 3

FY2019-20

1.38

1.12

2.5

1.85

FY2020-21

1.48

1.12

2.60

11.82

FY2021-22

1.39

0.91

2.3

17.92*

Year*Novelis has started tracking Scope 3 emissions of several new categories resulting in the increase

GHG Emissions - Aluminum + Mines GHG Emissions - Copper(Million tCO2e)(Million tCO2e)

FY19

FY20

FY22

FY19

0.93

0.23

FY2018-19

0.87

3.03

Copper

1.11

273.79

Aluminium +
Mines

1.19

Hindalco

YearTotal Non-Renewable
Energy (Electricity andHeating & Cooling) Sold

Copper

26.22

Renewable
Energy source

Scope 2

Aluminium +
Mines

Year

24.72

Fossil Fuels

Electricity
Purchased

Steam/Heating/Coolingand Other Energy(Non‑Renewable)
Purchased

Emissions - Hindalco (Million tCO2e)
Scope 1

26.52

Energy Type (Million GJ)

Pear plantation
at Samri mines

26.58

Solar plant at Aditya

To strengthen the monitoring of ouremissions, we have started monitoring
emissions for mines along with thealuminium and copper manufacturing
processes. Along with Scope 1 and Scope2, we also have started monitoring
Scope 3 emissions for our aluminium
operations. Scope 3 emissions are morematerial to our downstream operations.
In FY2021-22, total GHG emissions at
Hindalco were at 27.14 Million tCO2e for
Scope 1 and Scope 2. The rise in our GHG
emissions is due to the expansion of the
Utkal alumina refinery. We monitored
Scope 3 emissions for three downstream
plants in five categories which were
found to be material. These include
purchased goods and services, fueland energy-related activity, upstream
transportation and distribution,
waste generation and transportationand downstream transportationand distribution.

Together at Hindalco and Novelis, ourGHG emissions amounted to 29.47
Million tCO2e for Scope 1 and Scope 2
and 17.92 Million tCO2e for Scope 3.

FY19

FY20

FY21

FY22

FY19

FY20

FY21

FY22

FY21

FY20

FY21

FY22

Integrated Annual Report 2021-22

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Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Natural Capital
GHG Emission Intensity
We report GHG emission intensity forour aluminium and copper operations
including downstream. Our GHG
emission intensity can be seen
decreasing due to various efficiency
measures taken at our plants.
The GHG emission intensity at Novelis
amounted to 5.34 tCO2/MT, which
is higher compared to FY2020-21.
We are taking measures to reduce
the emission intensity as we expand.

(tCO2/MT)

4.44

2.62

4.7

3.33

3.49

5.34

GHG emission intensity - Novelis(tCO2/MT)

3.47

GHG emission intensity - Copper

19.66

19.74

19.78

20.07

GHG emission intensity Aluminium (tCO2/MT)

Novelis’ Ulsan
plant in South Korea
FY19

FY20

FY21

FY22

Stack Emissions
Our non-GHG air emissions occur
because of burning of fuel and in the
production process itself. Our aluminium
smelting process contributes to fluoride
emissions while the burning of fossil fuels
contributes to Oxides of Sulphur (Sox),
Oxides of Nitrogen (NOx) and Particulate
Matter (PM). Hence, we monitor thesepollutants regularly for processes
and fuel consumption as part of ouroperations. We track emissions throughthe Continuous Emission Monitoring
System (CEMS) and by NABL accredited
third parties on a regular basis.

106

HINDALCO INDUSTRIES LIMITED

FY19

FY20

FY21

FY22

FY20

FY21

FY22

Air Emissions (‘000 MT)
Hindalco- Aluminium

Hindalco- Copper Novelis

Hindalco+ Novelis

Pollutants

Process

Fuel

Total Process

Fuel

Total

Total

Total

Oxides ofSulphur
(Sox)

6.43

70.23

76.66

0.48

0.38

0.85

0.17

77.68

Oxides of
Nitrogen
(Nox)

4.25

28.65

32.90

0.00

0.12

0.12

2.23

35.25

Total
Particulate
Matter (PM)

2.21

7.10

9.31

0.09

0.12

0.22

0.73

10.26

Fluoride

0.05

0.00

0.05

0.00

0.00

0.00

0.00

0.05

We carry out ambient air quality
assessments as fugitive emissions
are material in the upstream plants.
We calculate Air Quality Index (AQI)
and ensure that the index stays within
healthy limits so there is minimum
impact on the workforce and thecommunities at large.
We are taking up several projects tominimise emissions from our operations.
We are installing pilot Flue Gas
Desulphurisation (FGD) units at Mahan,
Aditya, and Renusagar. For the firsttime in India, Mahan and Aditya, will
use semi-dry technology from Blackand Vealtch which consumes less water.

At Renusagar we will use catalyst-based
technology from WL Gore, US, which willbe the first large-scale implementationin the world. We are also finalising thepilot unit for Utkal. We are deploying
automatic lime feeding system forlime dosing at Hirakud and Muri power
plants. These projects have a committed
cashflow of over `400 Crore, and we areconceptualising other projects worth`2,500 Crore for the cause.

non-detectable levels. We also have
Selective Catalytic Reduction (SCR) at
Ulsan Aluminum plant to reduce NOx(nitrogen oxide) emissions. Our NOx
emissions have reduced from an averageof 157 ppm prior to the installation of
SCR, to an average of 39 ppm since theinstallation of SCR.

At Ulsan Aluminium plant of Novelis,
we have Regenerative Thermal Oxidizers(RTOs) to reduce Total Hydrocarbon(THC) emissions. Since the installation,
the THC emissions have reduced toIntegrated Annual Report 2021-22

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Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Natural Capital
Ozone Depleting Substances(ODS)
At the thermal power plant, a crusherhouse is the place where the coal iscrushed into a particular size. The
crusher house is one of the sources ofhigh fugitive dust emissions, which is
why we have installed screens aroundthe house to reduce the emissions. We
have also installed an automated lime
feeding system to control SOx coming
out of the CPP stack.

Ozone Depleting Substances(kg of CFC-11 eq)

0.28

0.25

We have installed windscreen of
approximately 1,000 metres in the

periphery of the coal yard to containthe dust emissions from spreading.
We have installed a water tank tostore cooling tower blowdown water,
having high turbidity. We reuse thiswater in the sprinkler system, where
we have installed sprinklers with 34
nozzles in the periphery of coal yard
and conveyor. To reduce the emissions
generated while unloading the coal wehave also installed a central sprinkler
system with 78 nozzles. Two anti-smog
guns are in place to spray water andhelp the dust particles to settle.

0.36

At Birla copper, we have a captive
thermal power plant (CPP). To store thedifferent types of coal for the power
plant, we have a coal yard with 1 Lakh
MT of capacity. We consume 30,000
MT of imported coal every month ata gross calorific value of 5,500 kcal/
kg. The day-to-day handling of coalleads to fugitive dust emissions. To
tackle fugitive emissions and improve
the air quality, we have taken various
initiatives at the coal yard.

We contributed 0.28 kg of CFC-11
eq ODS during FY2021-22 whichis slightly higher than FY2020-21.
The major contributor to this was thereplenishment of fire retardants andrefilling of gases in Air Conditioning
systems.

0.43

MEASURES TO REDUCE
EMISSIONS AT BIRLA COPPER

Total Projects taken at Hindalco and Novelis- 170
28,90,138.20 GJ
Energy Saved

5,43,339.74 tCO2e
Emissions Saved`170.28 Crore
Cost Saving

Perform, Achieve and Trade (PAT)
During FY2021-22, Hindalco received
1,91,171 ESCerts (Energy Saving
Certificates) for surpassing target
reduction of PAT Cycle-2 (Assessment
year - FY2018-19) in which seven units
including Utkal Alumina were involved.
In this cycle, a net Energy Saving of 0.39
Million TOE (MT of oil equivalent) and an
overall reduction of 8.9% was achieved
against a target of 4.7%. Hirakud unit
had fallen short of the target in Cycle-1
primarily due to plant disruption causedby the flood, while surpassed target in
Cycle-2. While Belagavi unit fell short of
the target in Cycle-2, actions have been
Designated Consumers

Cycle I

initiated to meet the target in next cycle(assessment year FY25).
Aditya Aluminium unit was included
in PAT Cycle-3 (based on its year ofcommissioning) and for which M&V(monitoring and verification) audit wasunder taken in FY21. This unit has also
surpassed its target and the audit report
is currently with BEE for final approval.
The next applicable cycle is Cycle-7, forwhich targets have been announced andassessment year is FY25.

Cycle II

Cycle III

Cycle VII

Renukoot
FY19

FY20

FY21

FY22

Hirakud
Muri
Belagavi

Initiatives for Energy andEmission Reduction

FY19

108

HINDALCO INDUSTRIES LIMITED

FY20

FY21

296

285

(kg PFC / MT)269

PFC emissions represent PFC kg CO2
eq per tonne of aluminium produced.
Due to the technological challenges
in smelter potlines, we observed
higher PFC generation. To reduce the
PFC emissions, we have taken several
initiatives on better process control.
We are also collaborating with Aditya
Birla Science and Technology Company(ABSTC) for the reduction of Anode
Effect Frequency (AEF) by changing theprocess control logic and implementing
a programmable logic controller.

Direct PFC emissions

310

Perfluorocarbon (PFC)
Emissions

In FY2021-22, we at Hindalco took
144 initiatives across our sites
which resulted in saving a totalof 28,89,926.45 GJ of energy and
5,43,327.38 tCO2e of emissions.
Our capital expenditure for theseprojects account for `259.5 Crore
which resulted in a cost-savingof `146.75 Crore At our Novelis
operations, we took 26 new projects
with a capital expenditure of $5.9
Million USD (`44.78 Crore) which
resulted in energy saving of 211.75 GJ
and emission saving of 12.36 tCO2e.
It also resulted in saving $3.1 Million(`23.53 Crore)

TalojaMahan
Utkal
AdityaIncluded in PAT cycle

Novelis’ recycling
plant in Nachterstedt,
Germany

FY22

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Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Natural Capital
ELECTRIC FORKLIFTS AT
MAHAN

At our Mahan plant, we produce morethan 360+ kt of metal every year whichis then converted into various productsin the cast house. At the cast house,
we produce more than 1,000 MT ofmolten metal every day. To process
the material at various stages, we use

ENERGY EFFICIENTPROCESS FOR COPPER ROD
PRODUCTION

58 different vehicles. These vehicles
are a major source of consumption of
non-renewable fossil fuels like diesel.
Every year, these vehicles consume
diesel worth `5 Crore and contributeto 1,955 MT of CO2 emissions. To solve
this problem, we introduced electric

forklifts which are easy-to-use, havehigh capacity and stability, and are
low-maintenance vehicles. With theintroduction of these electric forklifts,
we had an annual cost saving of`3 Lakh and 19.5 MT less CO2 emission.

At the Continuous Cast Copper Rod(CCR) Plant at Birla Dahej, there is a
shaft furnace where the solid copper
cathode is converted into molten
copper. We use Liquefied NaturalGas (LNG) as a source of energy forthe copper cathode melting. The
shaft furnace has 19 gas-fired burners
divided in Row-A, Row-B and Row-C
to melt the copper cathode. The
molten copper metal is then converted
into a continuous solidified cast bar,which undergoes rolling process andconverts the cast bar into final finished
rod of different sizes. To reduce the
LNG consumption in furnaces andincrease productivity, we adopted amethodology as follows.

Defined critical process parameters

Realtime recording and monitoring of
critical process parameters

Realtime gas component analysis and systemgenerated air requirement via Lambda ratio

Optimisation of critical process parameters
i.e. Lambda Value, oxygen PPM in copper rod

Increase in productivity by improved production
rate and reduced down-timeWith this initiative, we reduced the LNG consumption by
6.4% from Planning and Budgeting (P&B) target of 39
SCM/MT to 36.52 SCM/MT in FY2021-22. This resulted ina total cost saving of `1.46 Crore from P&B cost.

ENERGY SAVING USING
COPPER INSERT COLLECTORBARS IN POTLINE
ENERGY EFFICIENCY MEASURESAT CAPTIVE POWER PLANT (CPP)
CRITICAL AREA, MAHAN

Due to the settling of coal ash and temperature change in
the CPP control area at Mahan, the conventional lighting
system gets damaged frequently. The frequent damage
affected the lux (Luminous intensity) level at the plant. We
decided to replace the conventional lighting with LED tomaintain the lux level and reduce the emission footprint.
With the replacement, we obtained a desired level of lux.
In FY2021-22, CPP area had the lowest auxiliary power
consumption which resulted in saving 9,89,124 kWh ofpower and a cost saving of `29.5 Lakh.

110

HINDALCO INDUSTRIES LIMITEDWith the aim to reduce carbon
footprint and to improve pot cell
performance, Aditya Aluminum
collaborated with ABSTC and initiateda project of low energy lining in thecopper insert collector bar.
As copper is more conductive than mild
steel, we changed the collector bar
design and material of construction.
With the use of copper in the collectorbar, the horizontal current is reduced
which helped us in running at a lower
specific energy consumption. The

use of copper also helped reduce thecathode voltage.
At Aditya, we seal the copper collector
bar’s cathodes in the plant. The
process goes through various steps ofcleaning (shot blasting), pre-heating
and sealing. Both the copper collector
bars and the cathodes are pre-heatedseparately. After the pre-heatingprocess, the collector bar is sealedwith the cathode using cast iron. The
process is carried out at temperaturesof 1320oC-1380oC. The modified

lining composed of insulating bricks,
refractory bricks and cathodes is done
diligently in the lining shop.
We started the pilot project at threepots and with the consistent results
we replicated the same in 228 pots
in FY2021-22. With this initiative, we
reduced the DC power consumption
to 13,266 kWh/t which is 260 kWh/tlower than the standard design. The
efficiency of copper insert collector bar
pots is 94.8% which is 1% higher than
the standard design.

Integrated Annual Report 2021-22

111

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Natural Capital
Responsible Consumption
Natural raw materials are elementary
to our business. While consuming theseresources, it becomes important for us to
optimise their utilisation to bring about
efficiencies that synergistically reduce
costs. In FY2021-22, we consumed
11,586 kt of raw material. Expansion in
our business and production has led to
an increase in consumption comparedto the previous year, with major
contribution from the increased bauxite
consumption to support the expanded
alumina production.
We consumed 6.7 kt of packaging
materials of which wood accounted
for 4.3 MT. We recycled 7,372 MTof aluminium scrap procured fromthe external market and reused it inour operations. We are continuously
exploring new markets for the recyclingof aluminium and copper scrap.

FY19

FY20

FY21

11,586

9,642

10,843

11,558Raw Material Consumption (000 MT)

FY22

At our Novelis operations, we consumed
3,968 kt of raw materials out of which
2,214 kt was recycled material and 1,754
kt were other materials like alloys andsheet ingot. In FY2021-22, we used
57% of the recycled material in ouroperations, primarily using used inbeverage cans.

112

HINDALCO INDUSTRIES LIMITED

Material type (‘000 MT)

FY2018-19

FY2019-20

FY2020-21

FY2021-22

BauxiteAluminium Fluoride
Calcined Petroleum Coke
Caustic Soda
Pitch
Ammonia
Rock Phosphate
Copper Concentrate

8,987.99
21.20
473.73276.88105.7477.11
480.57
1,134.83

8,511.77
19.44
518.99222.49113.0556.10
363.77
1,037.30

8,097.12
17.82
447.70206.24100.691.02
770.909,598.77
21.78
465.67254.36137.770.02
1,108.06

We make conscious efforts tomanage our waste in an environmentfriendly manner. We follow 5R+1S
approach (Reduce, Redesign, Recover,Rehabilitate, Recycle, and Store) toachieve our aim of becoming Zero Waste
to Landfill by 2050. At Novelis, our target
is to reduce waste to landfill intensity by
20% by 2026.
Reduce waste production

EFFORTS TO OPTIMISE
NATURAL RESOURCECONSUMPTION

We consume around 33,818 wooden
pallets every year at Renukoot.
With the aim to preserve our natural
resources and to minimise ourcarbon footprint, we introduced an
innovative design for the pallets which
was successfully implemented in
FY2021‑22. We started by analysing
the design of pallets used by otherplants and used Computer-aided
Design (CAD) to develop new andefficient structural models. We
successfully developed a design withthe same loading strength as the older
one, and implemented the modified
pallet in WRM coil packing. This project
helped us achieve a saving of 5 kg or
0.23 cu.ft of wood per pallet. The totalsaving of wood, thus accounted to 7,778
cu.ft. and cost savings of `34.8 Lakhs.

Waste as a Resource

We also carried out a study on the
production data and size of the billets
used throughout the year. Feasibility
was assessed to recollect the usedwood runner between Renukoot and
Mahan in every two months. After
carrying out the studies, we started
reusing the wood runner for billets
and we were able to save `18 Lakh in
FY2021-22.
Altogether with above mentioned
initiatives for reduction of wood
consumption, we were able to save
641 trees in FY2021-22, which resulted
in cost saving of `52.8 Lakh.

Redesign processess

Recover valuable from waste
Flyash is transported
to cement plants
via covered rakes

Recycle to make it a resource

Rehabilitate existingstorage strcutures
Storage mechanism
for waste

We have instated a task force forwaste management at every unit.
Our Waste Management Task Forces(WaMTF) have team members fromdifferent line functions who streamline
the waste management process andprepare emergency preparedness
and response plan. The WaMTF also
identifies alternative technologies for
waste management with support fromthe corporate leads. Our corporate
sustainability team, including the Chief
Sustainability Officer (CSO) conducts
half-yearly reviews of the waste-related
practices and projects.

At Novelis, we have established a
global committee for waste reduction.
The waste data is entered into digital
database and validated on quarterly
basis by the EHS team. We conduct
annual onsite audits to ensure ground
implementation of waste related
projects identified and implemented by
the team.
In FY2021-22, our total waste
generation for Hindalco and Novelis
accounted for 11.98 Million MT out of
which 11.6 Million MT was generated at
Hindalco and 0.38 MT was generated
at Novelis. Major wastes generated by
our aluminium business are bauxite
residue, fly ash, bottom ash, SpentPot Lining (SPL), aluminium dross andvanadium sludge. Our copper businessgenerates copper slag and fly ash as
major waste. A total of 86% of our total
waste was recycled. To reduce waste
generation, we are improving efficiency
across the value chain, some of these
initiatives are mentioned in this report.

Waste Generated
11.98 Million MT

Waste Recycled
10.21 Million MT(86% of the waste)

Waste Incinerated
0.003 Million MT(0.01% incinerated)

Waste to Landfill/Storage
2.45 Million MT

Integrated Annual Report 2021-22

113

Corporate Overview

Strategic Overview

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Statutory Reports

Belur

Muri

Financial Statements

Natural Capital

Non-Hazardous Waste Diverted From Disposal
FY
2020-21FY
2021-22FY
2021-22FY
2021-22

Recycled & reused

7.73

7.78

9.31

9.61

0.29

9.9

Landfill/TSFD

0.01

0.01

0.01

0

0.03

0.03

Stored in approved
structures

5.69

4.28

2.14

2.31

0

2.31

0

0

0

0

0

0

13.43

12.07

11.46

11.92

0.32

12.24

Incineration
Total

FY19
Aluminium

114

FY22

CopperHINDALCO INDUSTRIES LIMITED

AdityaBelgavi

In FY2021-22, we generated 0.52
Million MT of hazardous waste
at Hindalco and Novelis. All thehazardous waste is handled withproper care, following applicableregulations, and ensuring the safetyof our people. We have been able to
make breakthroughs in the recyclingof hazardous waste, especially in drossand spent potline, which has resulted
waste to in high utilisation.
Novelis have a Spill Prevention
Performance Standard for thehandling of hazardous materials.
This standard also applies to thecontractors. We also have theContractor Management Performancestandard and all the contractors are
given training at our sites annually.
We conduct third-party audits
for regulatory and performancestandard compliance. Each of our sites
undergoes a third-party audit once
every four years.

0.20
0.13
Hindalco has industry
leading waste
utilisation practices

Mahan

Hazardous Waste

Hazardous Waste (Million MT)

0.82

FY21

10.32

0.58

FY20

9.89

9.85

10.56

2.08

2.14

Non- hazardous Waste (Million MT)

Alupuram

FY19
Aluminium

FY20

FY21

Hindalco has taken astand to move awayfrom landfilling

Hazardous waste diverted from disposal
Hindalco

0.21

FY
FY
2018-19 2019-20

Total

Mouda

Type of Utilisation(Million MT)

0.24

Type of Utilisation(Million MT)

NovelisTaloja0.24

Hindalco

Eight Sites Certified as Single Use Plastic-free by CII

0.12

In FY2021-22, eight of our sites havebecome Single-Use Plastic Free, certified
by the Confederation of Indian Industry(CII). We are planning for another six
sites to get certified in FY2022-23. As
per Plastic Waste Management Rules on
Extended Producer Responsibility, we
are registered as brand owners and arecomplying with relevant EPR regulations
and plastic recycling, with 100% of
plastics being brought into the market,
getting recycled through authorised
recyclers. Our e-waste constitutes
electrical and IT waste, which we sellto the authorised vendors. We also
dispose-off the e-waste that we generate
to authorised vendors for recycling
and reuse.

segregation and disposal. The waste
is segregated into compostable andnon-compostable waste and we convert
compostable waste to manure foruse in our greenbelts, and send thenon-compostable waste for further
processing with a focus on recycling.
To control the fugitive emissions, weinstalled water sprinklers and rainguns in the Coal Handling Plant (CHP)
and initiated fly ash transportation byclosed vehicles.

0.24

In FY2021-22, we generated 11.44
Million MT of non-hazardous waste
at Hindalco and Novelis. Over 93% of
the non‑hazardous waste generated
comprises ash and bauxite residue
categorised as HVLE (High Volume
Low Effect) waste. The increase inwaste generation is attributed to the
expansion at our Utkal Alumina refinery.
We are running multiple research
projects to further increase the bauxite
residue utilisation, especially at Utkal
alumina, including road development,mine backfilling, polymerised bricks,
soil amelioration and carbon capture
projects.

Our Municipal Solid waste (MSW) is
generated by domestic households
and canteens. We faced noncompliance for the burning of MSW
and inadequate measures taken tocontrol the fugitive emission fromthe raw material handling and fly ashtransportation areas at Renusagar
under the Air (Prevention and Control
of Pollution) Act, 1981. We were levied`0.28 Crore; no fines were paid, and we
took corrective actions. We initiateda proper mechanism for waste

0.25

Non-Hazardous Waste

FY
FY
2018-19 2019-20

NovelisTotal

FY
2020-21FY
2021-22FY
2021-22FY
2021-22

Recycled and reused

0.13

0.24

0.28

0.37

0.05

0.42

Landfill/TSDF

0.09

0.09

0.08

0.09

0.007

0.097

Stored in approved
structures

0.09

0.03

0.08

0.01

0

0.01

0

0

0

0

0

0

0.31

0.36

0.44

0.47

0.06

0.53

Incineration
Total

FY22

CopperIntegrated Annual Report 2021-22

115

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Natural Capital
Maximising Circularity
We consider waste as a resource andmake efforts to maximise its use and toscale down the use of new materials,
in our industry as well as the others that
we collaborate with. We have partneredwith several cement companies to use
our ash and bauxite residue as raw
materials. In FY2021-22, we reused 102%of the bauxite residue from three alumina
refineries. We utilised 114% fly ash in
cement making, brick making, ready-mix
concretes, and filling in low lying areas
inside the plant boundaries. We havealso installed in-house dross processing
units to increase the utilisation ofaluminium dross.

Novelis is the global leader inaluminium can recycling. At Novelis,
we have established a close looped
recycling system, where we produce
aluminium from aluminium scrap that is
procured from our customers. We havecarried out several initiatives to recycle
and reuse waste.

REDUCTION OF
HAZARDOUS SOLID WASTE
AT BIRLA COPPER

The hazardous effluent generated during the copper
production is transported to the Effluent treatment plant(ETP) and around 250 TPD of hazardous sludge is generated
at the ETP. The hazardous waste sludge, containing Arsenic,
Lead, Cadmium and Selenium, is disposed at the secured
landfill sites. To reduce the volume of the effluent waste
sludge at the ETP, we have developed an innovative processwith the capability to reduce the waste sludge generation
by 80%.

To increase the recycling of the usedrefractory, we initiated a project at
Pinda, wherein we started the proper
separation of waste during the furnace
rebuild. The waste refractory was sent
to a new off-site facility for recycling.
The recycled refractory served as a raw
material for new brick products. Thisinitiative led to the reduction of 459 MT
of refractory previously landfilled andsaving `8.58 Lakh.

Our process involves three-stage neutralisation withselective pH control. It will generate around 60,000 MT of
byproduct gypsum per annum which will be utilised as anadditive in the cement plants and for the preparation of
gypsum boards, plasters and blocks. We have completed
the plant scale trials with the basic engineering activities.

102

67

100

Bauxite residue utilisation* (%)

FY20

REPLACEMENT OF SAND BY
COPPER SLAG IN READY-MIX
CONCRETE (RMC)

FY21

To preserve precious river sand and increase the utilisationof the Cu-slag, we initiated a project to replace the 3050% sand in RMC with Cu-slag. Copper slag (Cu-slag) isthe byproduct of the smelting process of copper and is
successfully used in many other applications. In the trials,
we found that 50% of the sand can be replaced in the RMC
while maintaining the required strength and performance.

FY22* Bauxite Residue utilisation from 3 outof 4 refineries

76

90

114

Ash utilisation (%)

Red mudcomposite bricks

FY20

116

FY21

at UTCL. At present UTCL replaces 30-40% of the sand withapproximately 5000 TPM Cu-slag.
We are further modifying the processes for Cu-slag
application. We also carried out feasibility for copperslag size reduction through slag granulation processmodification.

After the successful trial, we started the commercialisation
process. We sent Cu-slag to Ultratech Cement Limited(UTCL). We follow a three-stage procedure to utilise Cu-slag
in RMC applications. In the first stage, we reduce the size of
the Cu-slag at the source by process modification, as finerparticles are required to mix in the RMC. After the size is
reduced, in the second stage we start the screening process
on the rack at the copper slag yard. We have deployed athird party for taking samples from the respective sites andtransporting them to UTCL. In the third stage, finer materials
are mixed in RMC to match the particle size requirements

FY22

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

117

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Natural Capital118

HINDALCO INDUSTRIES LIMITEDAt Novelis, we aim to• R educe water use by 10% at all ouroperations by 2026 from the baseyear of 2020
We monitor our water consumption daily
through flow metres and logs. The MIS

77.98

87.01

Municipalities
FY19

FY20

FY21

FY22

Water Withdrawal (Million m3)*
Aluminium+Mines

CopperTotal

Surface Water

70.92

0

70.92

Groundwater

0.09

0

0.09

Rainwater

0.57

0

0.57

Municipalities

0.13

6.27

6.40

71.71

6.27

77.98

Water Withdrawal

Total Freshwater Withdrawn

At Hindalco, our water withdrawal
accounted for 77.98 Million m3 in
FY2021‑22. Out of the total water
withdrawal, 91% is sourced fromsurface water, followed by 8% frommunicipalities. Only 0.1% of thetotal water withdrawn is from thegroundwater.

*Water Withdrawal for Novelis is the same as water consumption.

As an effort to reduce water loss due toevaporation, drift, leaks, and blowdown
at cooling towers, we are exploring
projects to capture the losses to reducewater use significantly.

FY19
Aluminium

FY20
Copper

10.8917.740

We require a significant amount of waterin the production process of aluminium.
By design, cooling towers use a large
quantity of water.

Water Consumption - Freshwaterand Recycled water (Million m3)
11.409Water Consumption

12.010Source8.340• A chieve Zero Liquid Discharge status
by 2025 across all our plants

Rain Water

FY21

69.120The initiative has resulted in 1.4% of
metal production being producedwith biomass. The project hasbrought savings in tune of `22 Lakh/month. This projects helps us ensurecompliance, reduce GHG emissions,and provides us with a sustainable
alternative to coal.

• R educe 20% specific freshwater
consumption by 2025 against thebaseline of FY2018-19

Surface Water

69.397• Risk assessment and mitigation• A chieve water positivity across our
mining sites by 2025 and across all
our operations by 2050

91

8.579

• Boilers assessment

At Hindalco, we aim to

We have set up Water Management
Task Force (WMTF) at all units withmembers of relevant expertisein operational, utilities, andenvironmental functions. WMTF
identifies risks pertaining to water
use and plans for mitigation by taking
up projects to achieve the Company
targets. The task force members holdregular meetings at unit level andpresent the progress of initiatives to
the Chief Sustainability Officer twice
every year. The targets for each site
are reviewed and projections are madefor the Company level targets andtheir progress. These include targets
related to water use efficiency, as well
as targets for recycling, rainwater
harvesting etc.

9173.683• Infrastructure requirements for
Incoming Storage; Testing; Final
preparation and Onward Feeding

Water is one of the most critical sharedresources of the planet and equallyimportant for us to run our operations.
At Hindalco, we understand theimportance of effective and efficient use
of water. We have defined a structured
approach to ensure water security inareas where we operate. This is guided
by our well-defined targets across all
our operations.

departments at the plants regularly
update the water consumption datain the business-level management
system. The collated data from all
the plants is then used to prepare
management reports for monthly
review by our senior management.
We also envision creating a central
dashboard and monitoring system withdigital dashboards for all the units.

8

9.463

• F
 ield Survey & Assessment ofalternate fuels

Securing Water

Novelis has a Global Water
Committee that focuses on water
reduction for our processes.
The Committee has regional
representatives who meet monthly
to implement strategic plans anddiscuss priorities. We track andmonitor the water usage on aquarterly basis for all our plants
at Novelis.

174.356

A joint team has been formed
between Hirakud Power and Thyssen
Krupp for detailed
analysis of:

Water
Reservoir at Mahan

Water Withdrawal by Source (%)

14.515In December 2019, we adopted thepractice of biomass co-firing using
rice husk at Hirakud power plant. Ricecovers about 65% of the cultivatedarea in Odisha, thereby making ricehusk a good source of biomass.
Additionally, the plant’s Circulating
Fluidised Bed Combustion (CFBC)
Boilers, which offer multi-fuel firing
capabilities, high efficiency, andlow emissions of Sox & NOx, caneffectively utilise a variety of coal andalternate sources of fuel. The current
monthly utilisation of rice husk is
3,000- 3,500 MT – increased from
0.3% to 1.4- 1.5% in two years.

Water Withdrawal (Million m3)

88.45

Biomass co-firing, the process of
supplementing a portion of coalwith biomass in high-efficiency
coalboilers, is one of the mosteffective and easily implemented
biomass energy technologies. Overthe past few years, it has emerged as
an efficient, clean, and cost-effective
method for power generation.

To foresee future usage andidentify water stress, we use World
Business Council for Sustainable
Development’s (WBCSD) India Water
Tool (IWT) and World Resource
Institute’s (WRI) Aqueduct tool.
These tools helped us evaluate
the risk for baseline water stress,
seasonal variability, flood occurrence,groundwater stress, and drought
severity. We also identify critical sites
to focus on with the necessary water
conservation measures. We havea total of 5,885 KLD worth water
efficiency projects completed, with
9,873 KLD worth of projects under
implementation and 12,923 KLD
worth projects being conceptualised.
These new projects will enable us
to achieve our water-related targets
within the stipulated timelines.

88.11

RICE HUSK- AGRICULTURALWASTE BECOMES SOURCE
OF POWER AT HIRAKUDFY22ColonyIntegrated Annual Report 2021-22

119Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Natural CapitalFreshwater Consumption Aluminium, Copper and Mines (In Million m3)
FY2018-19

FY2019-20

FY2020-21

FY2021-22

Total municipal water supplies (or from other water
utilities)

6.2

5.60

7.96

4.99

Fresh surface water (lakes, rivers, etc.)

55.6

61.11

49.29

55.32

Fresh groundwater

0.08

0.07

0.05

0.07

Rainwater consumption

2.18

0.09

3.55

0.44

64.05

66.86

60.85

60.82

Total Net freshwater consumption

The shallow landwith rainwater
harvesting structure
has become a natural
habitat for local andmigratory birds

At Novelis, water is mainly used for cooling purposes, we monitor water usage at our plants quarterly. Our water consumption has
increased due to water usage by eleven new plants. The increase in water consumption is also due to an increase in production by
7%.

2.28

3.17

3.44

Fresh surface water (lakes, rivers, etc.)

3.13

3.26

4.35

4.22

Fresh groundwater

3.69

3.92

4.69

4.61

Total Net freshwater consumption

8.85

9.46

12.21

12.27

At Novelis, with continuous efforts,
we have reduced the water intensity
by 26% from FY2009-10 to FY2019-20.
To further reduce the water intensity,
our focus is on the optimisation ofwater usage at cooling towers.

120

HINDALCO INDUSTRIES LIMITED

FY19

FY20

FY21

FY22

FY19

FY20

FY21

17.99

21.28

Specific freshwater consumption- Copper (m3/MT)

23.62

50.4

52.79

54.24

We have achieved a 9% reductionof specific freshwater consumption
in our aluminium operations and a
24% reduction of specific freshwater
consumption in our copper operations
base FY2018-19 largely due to closureof fertiliser operation and recycling
efforts. We have recalculated andrestated the information provided forspecific freshwater consumption forour copper plant for FY2020-21.

Specific freshwater consumption- Aluminium (m3/MT)

55.39

Water Intensity

FY22

In FY2021-22, we recycled 16.1 Million
m3 of wastewater in aluminium andcopper plants. A total of 20.94% of
wastewater was recycled in aluminium
operations and 20.31% in copper
operations.
Our Dahej and Belagavi plants fallunder the water stress area. We havecommissioned a 700 KLD tertiary water
treatment plant at Dahej, complete

Water recycled -Aluminium (%)

FY19

FY20

Water recycled -Copper (%)

20.31

2.03

We at Hindalco have adopted processes
to recirculate, reuse and recycle theoutlet process water to achieve Zero
Liquid Discharge (ZLD) and freshwater
reduction. We are constantly finding
ways to make our processes morewater efficient. We have identified
and implemented several water
recirculation projects through which
we can use the outlet water of one
process as input water of the other withminimal treatment. This will enable us
to use less water, decreasing the loads
on the water recycling systems andsaving the associated treatment costs.
Our refinery operations are sustainable
by design, which recirculate caustic
soda repeatedly through closed loop
systems, reducing the freshwater
top‑up requirement.

FY21

FY22

with Reverse Osmosis (RO) filtrationand Mechanical Vapor Recompression(MVR) based thermal solution forcomplete reuse of treated water.
We have been able to achieve over
27% reduction in specific freshwater
consumption over the last year at Dahej,
partly due to the decommissioning of
our fertiliser operations. We plan to

13.78

Total municipal water supplies (or from other water
utilities)

Water Recycling

13.24

FY2021-22

20.94

FY2020-21

22.52

FY2019-20

24.04

FY2018-19

24.8

Parameter

27.99

Freshwater Consumption- Novelis (In Million m3)

FY19

FY20

15.06

Parameter

FY21

FY22

start using desalinated sea water at
Dahej from FY2022-23, sourced froma local common desalination plant of
GIDC. Through close looping at theBelagavi site, we have been able toachieve a 40% reduction in specificfreshwater consumption from a baselineof FY2018‑19. We have been well aheadof our targets at both the sites.

Integrated Annual Report 2021-22

121

Corporate Overview

Strategic Overview

Statutory Reports

Our Capitals

Financial Statements

Natural Capital

FY19

Local community
engages inpisciculture and duck
rearing in rainwater
harvesting structures at
Bagru mines

HINDALCO INDUSTRIES LIMITED

157.09182.59At Novelis’ Changzhou plant in China,
we have implemented ZLD, which
is applied to automotive processing
lines. We faced one incident where
the oil and grease at Richmond Water
exceeded the standards, which was
resolved with immediate effect.

Effluent Discharged (m3)
Aluminium

Copper

1,20,162

0

15,61100

1,57,093

Sanitary Sewer

3,712.74

0Municipal WWTP

43,7910

1,83,276.74

1,57,093

Discharge outlet

River
Industrial Drainage system
Deep Sea

Total Discharged Effluent

At Renukoot, we faced noncompliance under Water (Prevention
and Control of Pollution) Act, 1974,
for not achieving ZLD conditions
and discharging wastewater into
the environment. We were levied`1.37 Crore, no fines were paid and we
took corrective actions. We installed
a 4,000 KLD PWRP system to resolve
the issue. The treated water from the
STP is used in horticulture and the rest
is discharged into Murdhawa Nala.

122

139.8098.37

We follow the relevant CPCB and
SPCB guidelines for effluent discharge,
and ensure conformity to all therequired quality parameters. Before
the effluent discharge, we constantly
monitor the chemical properties ofwastewater such as Fecal coliform,
Biological Oxygen Demand (BOD),
Chemical Oxygen Demand (COD),
Total Soluble Solids (TSS), Total
Dissolved Solids (TDS) and heavy
metals as per regulatory guidelines.

223.34

To achieve the ZLD status, we at
Hindalco plan to cover one site every
year till 2025. In FY2021-22, our total
effluent discharge was at 340,370 m3.
The increase in discharge is due to theincreased production at sites and wehave plans in place for these sites tobecome ZLD by 2025.

(000’ m3)

223.74Effluents Discharge -Copper(000’ m3)

183.28Effluents Discharge -Aluminium

146.63Effluent Management

FY20

FY21

FY22

FY19

FY20

FY21

FY22

Initiatives taken for Managing
Water
We believe that integrated watershedmanagement is a key aspect of water
conservation. We have undertaken
various initiatives as a part of ourwatershed management programme
which include the construction of bunds,
gully plugs, rainwater harvesting ponds,
contours and terraces. We use harvested
rainwater for our mining operations
to minimise the consumption ofgroundwater. Our focus is on developing
solutions for sustainable water
management and we are collaboratingwith industry leaders to achieve it.

To increase the awareness of
responsible water consumption andregeneration of water resources, we areworking with the local communities,
Gram Panchayat and several
NGO’s. Our CSR vertical developed
infrastructure for rainwater storage
outside the boundary with capacity
over 3.1 Million m3. Our units have also
developed structures for rainwater and
raw water storage with a total capacityof 10.69 Million m3.

Structures at Plants(Nos)

Structures through
CSR(Nos)

Check dams

26

133

Injection wells

2

-

Ponds

33

169

RC Tank2-

Recharge Pit

9-

Rooftop systems

12-

Structures Type

Cannel2

Reservoir

-

4

WHT

-

13

Trench

-

16

Total

84

337

Integrated Annual Report 2021-22

123Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Natural CapitalWith the aim of reducing freshwater consumption,
we took the following initiatives:• Installed rainwater harvesting pond equivalentof 14 KLD; started to use treated effluent water atcooling tower• U
 sed recycled domestic water for construction workat the sewage treatment plant• S tarted collecting and reusing RO reject water from
centralised drinking water at admin, washrooms,
and foil plant
With these initiatives, we were able to reduce freshwater
consumption and freshwater intensity. We have
reduced the freshwater intensity by 32% as compared to
FY2018-19.

Water Consumption (MT)RECIRCULATION OF ACF/
MGF BACKWASH WATER
AT RENUKOOTUTILISATION OF EVAPORATION # 4 ALKALINE CONDENSATEOF ALUMINA PLANT HAVING CONDUCTIVITY (< 100 MICROMHO) AS DM FEED WATER TO BOILERAt Renukoot, we have eight Demineralised (DM) water
units with a total capacity of 390m3/hr., to meet therequirement of boiler plants. At DM units, salts fromraw water are removed by using an ion-exchange
chemical process. The DM water is then used as feed forboiler plants.

To reduce freshwater consumption and reduce theeffluent load on ETP at the Renukoot plant, we developed
infrastructure for pH correction system with auto controller.
Initially, Evaporation # 4 Alkaline condensate of Alumina
plant was sent to the ‘Bad condensate tank’ and then to
the Effluent treatment plant. We conducted a study andfound out that Evaporation # 4 Alkaline condensate having
conductivity of <120 Micromhos and pH 9.8 can be used as
DM water after pH correction.

After 20 hours of use, the active ion concentrationin the DM units reduce. So, regeneration of our DM
units is done to enhance the active ion concentration.
Approximately 910 m3 of water is used for regenerationand filter backwash. The backwash water from theMulti Grade filter (MGF) and Activated Carbon Filter (ACF)
is turbid and acidic. So, the backwash water is neutralised
at the neutralising pit, from where it used to be diverted
to the ash pond, while the excess water was sent to
the ETP.
We conducted a study to check the feasibility of reusing
the backwash water as DM feed water. As a solution, wedeveloped a ZLD pit to collect the MGF/ACF backwaterfrom all the DM units. Backwash water is treated at the
ZLD pit and then pumped into the clear water tank. With
this initiative, our water consumption has gone down by
587 KLD and cost savings of about `13.39 Lakh per year
have been realised.
BeforeSAC SBA

54,74860,60063,61057,489Back Wash Line

SAC SBAMGF ACF

Back Wash Line
Conductivity
meter coolingwater &
Gland seal water

Neutralisingpit

Turbidity< 10 NTUZLD Pit

Neutralising
pit

O/F
Ash
Pond

ETP

Used as DM
Feed Water(Clear water tank)

FY19

124

FY20

FY21

FY22

HINDALCO INDUSTRIES LIMITEDThe initiative has led us to save 400 KLD. We are reviewing
and modifying the process even furhter to save upto

Brief description of the project
Evap#4 Alkaline
Evap#1 good
Dig#2
Evap#1 alkaline<=100 Micromhos
Polished
water
tank
HE#1

Sampling water
ODM
C/W
tank

NDM
C/W
tank

pH sensor
withcontroller

pH dosing line

Sample 2 &3
tank

<=100
Micromhos
sent toSamp 2 & 3
tank

>100
Micromhos
Condensate
sent to Badtank

Bad Tank

HE#2

Hot DM

Feedback

Acid
tank

REDUCTION IN FRESHWATERCONSUMPTION IN MAHAN

After

Schematic of Past system
is as flollows:-

MGF ACFTo execute the process, we laid a pipeline in the boiler
area and other modifications in-house. This procedure was
executed in-house. We had faced few challenges during
the implementation as the condensate required continuous
monitoring for pH and TDS. We then diverted the Evaporation# 4 Alkaline condensate to sampling tanks 2 and 3. We
conducted CRC overhauling, calibration, and modification todivert the condensate.

600 KLD. Initially, the water consumption was 4,769 KLD
and after implementing the project, our water consumption
has gone down to 4,369 KLD. This has resulted in 8.4%
freshwater reduction and cost-saving of `9.13 Lakh per year.

p
H
p
u
m
p

WATER MANAGEMENTINITIATIVES AT MOUDA

Ash
Pond

With the aim to reduce freshwater consumption andcontribute toward water positivity, we installed anext‑generation 3D TRASARTM Technology automatic
dosing system which provides real-time monitoring forcooling water and helps to avoid fluctuations in parametersin the cooling tower. Upon commissioning this technology,
we observed improved water quality and reduced
blowdown in cooling towers, soft water plant cycle changed
from 20 hours to 30 hours and the side stream filter backwashing practice changed from a daily basis to on demand.
We replaced the rusty water pipelines and closed themonitoring of cooling drift loss and water‑cooling circuits.
We also conducted a water leakage audit from supply to
end-user point. With the installation of this technology, weobserved increased Cycle of concentration (COC), optimisedchemical concentration and a 15% reduction in freshwater
consumption. We saved 9,221 m3 of freshwater in FY2021-22
which resulted in a cost saving of `18.44 Lakh.

Integrated Annual Report 2021-22

125Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Natural Capital
WATER IMPROVEMENTPROJECT AT PINDA

Our approach towards enhancing
water efficiency at our Pinda plant
has been 3 pronged- increase theavailability of water, improve thequality of water, and recycle the water.
For increasing the availability ofwater, we installed a new water intake

Sustainable Mining
Hindalco owns and operates 17
manufacturing units and 21 operational
mines across India. We operate acrosslarge areas of land, within varied
habitats. We believe in harmonious
co-existence with nature and all its
beings and it is crucial for us to nullify
any impacts that our operations may
have on the health and richness ofsurrounding ecosystems. We work in
8,569 ha of the operational mining
area in the coal and bauxite sectors.

THE SUSTAINABLE
MINING CHARTER

pipe in the adjacent river. With this,
we assured availability of a reliable
water source for our operations andprocesses.
To treat the water sourced fromthe river, we installed a new water
treatment plant. The WTP removes

sediments and solids from the water
which provides high-quality water andincreases the water use efficiency inthe plants. The WTP captures rainwaterand recycles it using reverse osmosis.
With these projects installed, we saved
71,893 m3/year and resulted in saving`1.27 Crore

Mining Area Details
Parameter

FY2018-19

FY2019-20

FY2020-21

FY2021-22

Total mining area leased(Operational) (Ha)

9,977

9,278

9,133

8,569

Total area mined out (Ha)

155

132

80

106

Total area reclaimed (Ha)

156

112

86

92

Total area rehabilitated (Ha)

94

102

57

85

As biodiversity and natural resource
preservation becomes material areas
for sustainability in mining locations,so does the pre-existing poverty andpoor access to health, education,
infrastructure and information.
The crucial role of sustainability inextractive mining needs specific,
structured approach and guidelines
in order to arrive at practical andlong‑term solutions. The Sustainable
Mining Charter (SMC) embodies
Hindalco’s effort towards building atheme-based practical and actionableguideline for sustainability.

SMC is a guideline document toprovide a structured framework forachieving sustainable mining goals ina holistic way by focusing on the ESG
Framework. It also guides us how todevelop Sustainability Goals for Focus/
Thematic Areas and an implementation
Road map to achieve these goals.
Further, it has cited several case studies
to provide insights into the practicalaspects of implementation.
After unveiling SMC in June 2021,
Hindalco has commenced its
implementation. We believe that withthe adoption of SMC, the management
can channelise its resources andefforts to avoid deforestation, but
we do acknowledge the nature ofour business being extractive which
requires a lot of cleared land area. We
also take up transplantation projects
whenever scientifically possible.
We comply with applicable laws
and regulations pertaining to forest
conservation. We are committed to
No Net Deforestation* at our sites ofoperation.

Hindalco has
developed plans
for flora andfauna conservation

Safeguarding Biodiversity

A unique conceptof bio park has
been adopted at
Hindalco’s Bagru mInes

We have committed to achieving No
Net Loss (NNL) by 2050 and this goalis supported by our Biodiversity Policy
and Technical standards. We conducteda biodiversity assessment for 48 sites
using the Integrated Biodiversity
Assessment Tool (IBAT) tool which
resulted in identifying high-priority sites
for biodiversity management. To achieve
NNL, we have set out short-term andlong-term objectives for identified highpriority sites through the development offocus on a structured way to achievedefinite goals in each focus area ofthe mine. Besides, fulfilling the needsof the Local People, Maintaining
the Environmental Conditions andImproving Productivity, the focus
will help in market value creation,
meeting international stakeholder
expectations, and may also assist
in securing funding from agencies
in certain cases. We have taken
various initiatives like duck farming,
aquaculture, mushroom cultivation,and vermicomposting under the
Corporate Social Responsibility (CSR)
in line with the thematic areas as per
the sustainable mining charter.

detailed Biodiversity management plans(BMP) with the International Union forConservation of Nature (IUCN). We havedeveloped four BMPs for five sites lastyear in India. Now we have another five
BMPs spanning 10 sites near completion,that will take the total to fifteen sites
with detailed 4-season BMPs. The totalsites having BMPs stands at 26 out of the
32 sites having exposure to biodiversity
impacts.
Whenever we are expanding or
upgrading operations, we makeGreen belt development is one of ourshort-term targets for biodiversity
management. Green belts act as living
walls and offsets emissions. We usethem for green belt development as
native species survive well and keep
the natural ecosystem of the region
intact. In FY2021-22, we developed 12
green belt development plans at the
non-IUCN sites to serve as BMPs. We
conducted greenbelt assessment for
carbon sequestration potential for
Dahej unit in the reporting year as well.
We have developed a company-wide
SOP as well on developing dense andhealthy greenbelts and are driving
quality improvements in plantations* No Net Deforestation means and includes commitment to reforestation to compensate against forest loss caused due to operational activity as well
any permissible pre-emptive clearing, in accordance with the applicable local laws.

126

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

127Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Natural Capital

FY19

FY20

responsibility toward the environment.
We have identified six anthropogenic
activities that need to be controlled tominimise the impact. We also conducted

FY21

FY22

a biodiversity assessment for all our sites
and none of our sites are near criticalbiodiversity.

MIYAWAKI PLANTATIONIN ADITYA

Miyawaki technique is a uniqueplantation methodology provenworldwide, irrespective of soil andclimate conditions. Various native typesof plants are planted close together inthe Miyawaki system so that the greens
only receive sunlight from the top andgrow upwards rather than laterally.
The plants become self-sustainable
and are 30 times denser. The Miyawaki
plantation method helps in noiseand dust reduction. We applied the
Miyawaki plantation technique at the
CHP area as it is a high dust location.

128

HINDALCO INDUSTRIES LIMITEDAs the site selected was waterloggedbarren and we had to clear the area
before the plantation. Our plants areyielding a 99.5% survival rate with ahigh growth rate. Due to the presenceof a diverse range of plant species, it
is currently serving as a hotspot for
butterflies. We invested `50,000 for
the plantation initiative, which alsoaligns to the requirements of the IUCN
mitigation plan.

INITIATIVES UNDER BIODIVERSITYMANAGEMENT PLANS AT VARIOUS SITES

4,53,895

FY22

4,69,962

4,672
FY21

4,14,212FY20

4,19,717

FY19

Tree Plantation Trends (Number)

5,145

To make a conscious effort towards
identifying and minimising theimpact, we at Novelis carried out anassessment using IUCN guidelines forPlanning and Monitoring Corporate
Biodiversity Performance. The guidelines
help in identifying the pressure
on biodiversity, plan to reduce theimpact and set measurable targets.
The assessment produced that noanthropogenic pressures require goals
or targets to reduce the impact but as a

4,373

We are planning to conduct arehabilitation activity at the Ash Moundof Hirakud S&P, where we plan to create
an entire forest ecosystem on the closed
ash dyke.

Green Area Plantation (Acres)

3,980

by training people and through constantmonitoring at sites. Our current
greenbelt stands at over 5,144 acreswith over 4.5 Lakh trees planted in thereporting year.

With the positive outcomes fromthe plantation at Aditya CHP, we areplanning to replicate the technique ofplantation at the smelter plant location
where we are expecting this to be anature-based solution for fugitive dust
mitigation. Renukoot, Renusagar and
Mahan have already started their own
Miyawaki plantation patches.

We developed four BMPs at
Utkal Alumina, Aditya Aluminium,
Gare Palma and Baphlimali and
implemented initiatives as proposed in
the BMPs.

Conservation initiatives at Utkal
Alumina
At Utkal Alumina we undertook anafforestation programme. In FY202122, under this programme, we added
20% new species. To increase bird
diversity, we identified sites withprimary or secondary hole-nesting
bird species. To attract such species,
we installed 52 nest boxes on thetrees with a low density of maturetree cover. We also monitored thespecies after installing nest boxes.
With the aim to plant native species
during the afforestation programme,
we collected seeds to prepare saplingsof the indigenous species. For this, wecollected seeds from the local forestsand dried them to make them readyfor further stages. After the seeds

were ready, we prepared a poly pot todevelop saplings. The poly pots wereplanted in our in-house nursery under
the afforestation programme.

Conservation initiatives at Gare
Palma
We extract coal from our Gare Palmamine in Chhattisgarh. In FY2021-22
we planted 10,025 saplings in an areaof around 4 ha near the coal mines.
Due to the continuous afforestation
programmes undertaken at Gare
Palma, the green cover there has
increased by 5.7%. We also undertook
plantations under the Wadi Project fora sustainable tribal livelihood project.
A total of 20 ha of land was covered
under this project.

Conservation Initiatives at
Baphlimali
At our Baphlimali bauxite mine at
Utkal Alumina, we continuously carryout afforestation programmes toreduce the impact of mining. Throughcontinuous afforestation efforts, weplanted 50% more new species in
FY2021-22 compared to FY2019‑20.
In addition, we also carried out
rehabilitation of 15 ha of area and slope
plantation of 20 ha.

Conservation Initiatives at Aditya
Aluminium
At Aditya Aluminium, we identified
sites with the presence of native
butterfly species and prepared abutterfly conservation and habitat
enhancement action plan. As per theplan, we developed 2,000 sq.m ofbutterfly conservation area at Aditya
Aluminium. To attract butterflies
and pollinator insects we planted
native trees, herbs and shrubs inthe conservation area. We have also
installed 25 nest boxes to attract
bird species. In addition, we added
20 new plant species in FY2021-22 ascompared to FY2020-21.

Integrated Annual Report 2021-22

129Social and Relationship
CapitalPartnershipsthat drive growth

Contributions to SDGs

Unleashing the potential of people andcreating value for our communities
is one of our top most priority. Overthe years, Hindalco has built strong
partnerships with its stakeholders
based on mutual trust and respect.
Our commitment to ESG and valueenhancing growth drives all the efforts
we make to cater to stakeholders’expectations. We believe thatlong‑term value creation and mutual
growth can only happen by fosteringstakeholder synergies.

Value Enhancing Growth
SP-2

SP-3

Value enhancing
growthStrong ESG
Commitment

Interlinkages with Material Topics andOther Capitals
Material Topics

Capitals Connected

Community Relations

Financial Capital
Manufactured Capital
Human Capital

Key Highlights`87.6 CR

Community expenditure

15,673

Number of suppliers

1.26+ MN
Lives touched`1,48,236 CR
Procurement spend

Our Focus Areas
Strengthening
ties with
communities

Fosteringcustomer
relationshipResponsible
supply chain

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Social and Relationship Capital
Our company’s CSR initiatives focus on five thrust areas

Education

HealthCareSocialReforms

Sustainable
Livelihood

Infrastructure
Development• E nablingenrolment ofstudents• Health camps• Addressing
social stigmas
and issues• V ocational joboriented skill
training• V illage road
construction• O ld age home
support• T echnical skill
training• P roviding
disaster relief• D istribution ofagriculture tools,
seeds, fertilisers,
and insecticides
to farmers• Scholarships• C o-curricular
activities• S chool
infrastructuredevelopment

Hindalco supports
several women - run
SHGs under its
CSR initiatives• D istributionof educational
materials anduniforms• Addressing
malnutrition• H ealthcare
infrastructuredevelopment• P reventive andcurative care• M other andChildcare• Financial literacy• B reaking social
stigmas• C ommunity
water source• M aintenance of
heritage• Disaster Relief• S upporting
Self-Help Groups(SHGs)The Strategy is guided by our CSR Vision-“To actively contributeto the social andeconomic developmentof the underserved
communities, lifting
the burden of poverty,
and helping bring ininclusive growth in sync
with the UN Sustainable
Development Goals. In
doing so, build a better,sustainable way of life
for the weaker sectionsof society and raise
the country’s Human
Development Index”.
132

HINDALCO INDUSTRIES LIMITED** 100% of beneficiaries of the CSR projects and programmes are from vulnerable and marginalised groups

Engage, Uplift and Empower
In line with our Group’s Corporate Social
Responsibility (CSR) motto of ‘Engage,
Uplift and Empower’ and Hindalco’s
strong ESG commitments, we constantly
strive to make a positive difference to thelives of people in the areas we operate
in. Over the years we have relentlessly
worked towards enriching the lives ofall our stakeholders and will continue
to contribute towards building a selfsufficient and sustainable future forsociety at large.
Our CSR strategy to engage, uplift andempower the community around us isaligned to the 10 SDGs - No Poverty,
Zero Hunger, Quality Education, Good
Health & Wellbeing, Clean Water &Sanitation, Affordable and Clean Energy,
Decent Work & Economic Growth,
Gender Equality, Reduced Inequalities &Industry, Innovation & Infrastructure.

We have a total of 50 production assets
and 19 mines. All of them have gone
through community consultation process
before establishment. Additionally
we have undertaken 11 development
projects to enhance our production. Outof them, 6 projects are in the process ofcommunity consultation.
At Novelis, our plant managers and otherteams are in constant touch with local
communities. They actively acknowledge
the issues faced by the locals andresolve them in the best possible way.
We conduct feedback sessions with local
stakeholders for engagement. Each site
has a site champion with responsibility
to lead the community development
projects. We also aim at advancing
Science, Technology, Engineeringand Mathematics (STEM) educationand sustainable development in thelocal communities.

From Strategy to PracticeHindalco

In line with our Group’s CSR vision,
Hindalco has adopted socially
responsible practices wherethese SDG goals are enumerated
through the five focus areas ofeducation, health care, sustainable
livelihood, social empowerment, andinfrastructure development.

Community Expenditure (`Crore)

Investing in Communities
We spent `55.04 Crore on community
development projects at Hindalco tostrengthen our commitment towards
Corporate Social Responsibility (CSR).
We have spent a total of `39.3 Crore
in 10 identified aspirational districtsof Odisha, Madhya Pradesh, Uttar
Pradesh and Jharkhand through our
CSR projects.

FY2018-19

FY2019-20

FY2020-21

FY2021-22

44.57

48.65

53.99

55.04

The total philanthropic contribution by our Novelis operations is US$4,291,644,
equivalent to `32.6 Crore The category-wise contribution details are provided in
the table below.
Total amount(in USD)

Type of Contribution
Cash contributions

3,493,644

Time: employee volunteering during paid working hours

348,000

In-kind giving: product or services donations, projects/
partnerships or similar

300,000

Management overheads

150,000

Integrated Annual Report 2021-22

133

Corporate Overview

Strategic Overview

Our Capitals

An impact assessment study of CSR activities of Utkal Alumina International Ltd.
carried out by NABARD Consultancy Services during FY2018-19 for our education
sector initiatives indicated the following impact. Due to the challenges posed by
COVID-19, we could not carry out the impact assessment this year.
Baseline(FY2010-11)

Impact(FY2018-22)%

37.74*

51.56**

Women literacy rate%

22.51*

36.51**

School enrolment%

92.06***

97.85**

School attendance

%

65

100#

School dropouts

%

4.75

2.65#

Key Performance Indicator

Unit

Total literacy rate

* Indicates 2011 census data.
** Indicates NABCONs study data, 2018*** Indicates Child Tracking System Data of the operational Gram Panchayats, Odisha Primary
Education Programme
Authority, Government of Odisha, Bhubaneswar, 2009-10.

Statutory Reports

Financial Statements

Key benefits from the initiatives
We undertook several education
related projects and programmes withthe objective to enable the financiallyand socially backward children fromour communities to become financiallyindependent in the future. These
initiatives have helped us develop
a strong bond with the community.
An educated community ensures wewill have access to local talent in theyears to come, with an increase inavailability of educated and skilledlocal manpower. This helps in creating
local employment opportunities,
contributing to improved quality oflife and increased goodwill of thecommunity and local government.

# Impact assessment study conducted by Xavier Institute of Social Services, Ranchi in 2016-17

Healthcare

Community Stewardship Initiatives
Education
Recognising the value of education incommunity development, we promotea conducive learning environment
through our holistic initiatives.
Pre‑school education, educational
support programme, vocational andtechnical education training, adultliteracy programme and school
infrastructure development are someof our key areas of focus. This opens
doors to opportunity, promotes social
mobility and aids in the reductionof inequity. It is critical for breaking
the cycle of poverty and cultivating
tolerance-which leads to a healthy andprogressive society.
Our Education Programmes aremainly aligned with 3 SDGs - Quality
Education, Gender Equality andReduced Inequalities. Through our
education programmes and initiatives,
we supported 7,607 students inrural areas. Following are outcomes
resulting from our Education
Programme in FY2021-22:

134

HINDALCO INDUSTRIES LIMITED

Supported
2,168 students in
56 Aanganwadi
and Balwadi
Centres

Nurtured
11 malnourishedchildreninto healthy
children, under
Integrated Child
Development
Scheme (ICDS)

7,514 students
enrolled in
18 Aditya Birla
Public Schools
and Aditya Birla
Vidya Mandirs

122 adult learners
gained literacy
skills through4 Adult Literacy
Programmes

36 schools wereconstructed/
maintained/
repaired to upgrade
the existing
infrastructure

Distributed
educational
materials anduniforms to
10,349 students

Good health is key to individual
wellbeing. We have been standing
strong with the communities,
throughout all the three waves of
the COVID-19 pandemic, addressing
health issues and providing solutions
that meet essential healthcare
requirements.
During the year, we undertook
several healthcare programmes
and initiatives aimed at improving
accessibility to better healthcare
services for vulnerable sectionsof society. These initiatives coverpreventive healthcare programmes,
curative healthcare, mother andchildcare, quality/support programmes
and development of healthcare
infrastructure. Our healthcare projects
include eye camps, dental check-up
camps, tuberculosis camps and general
health counselling. We helped treat
61 cases of Tuberculosis. A total of
292 cases of cataract surgery were
undertaken. Our adolescent healthcare
programme extended support to
1,728 girls.

“Fostering a healthy society by creating awareness on
health-related issues and providing access to essential
medical infrastructure”
Integrated Annual Report 2021-22

135Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Social and Relationship Capital
COVID-19 Care

Some of the highlights from our health-related CSR projects are:• 1 ,229 COVID-19 Awareness Camps
conducted

Running 5 hospitals,
16 dispensaries/clinics and
23 family welfare centres

112,356 beneficiaries fromour hospitals/dispensaries/
clinics/family welfare
centres

30,981 mothers andchildren helped by family
welfare centres• 208,161 masks distributed• 2
 56 Oxygen Cylinders and 262
Oxygen concentrators donated• 7
 ,161 litres of sodium hypochlorite
sprayed71,744 people aided through2,226 medical camps

145,594 children given Pulse
Polio drops; 35,165 children
vaccinated against otherlife‑threatening diseases

25,276 attended 62 seasonaldisease (Malaria/Diarrhoea)

373 Health and Nutritionalawareness programmesorganisedSocial Reforms
22 eye camps organised and292 cataract surgeries
performed with 1,752 total
beneficiaries

11,014 mothers registered forAntenatal/Postnatal Care
(ANC/PNC)

VISION CENTRE- EASY ACCESSTO AFFORDABLE EYECARE

Implementing partner- Trilochan
NetralayaServices provided- Complete eyecheck-up, cataract screening, eyepressure/glaucoma check- up, retina
check-up, spectacles, medication,
diabetic eye disease screening, school
eye health camps, consultation witheye specialist through real-time live
video conference.
Aditya Aluminium partnered with
Vision Foundation, a trust of Trilochan
Netralaya, Sambalpur, to implement
and manage the Vision Centre project,including providing technical experts
for clinic management and conducting
outreach activities. The objective of
the project was to ensure preventionof avoidable blindness by promoting
awareness of good eye health in all
sections of the community, especiallyvulnerable and marginalised people.

136

HINDALCO INDUSTRIES LIMITED

Earlier, people from Rengali Block andadjacent blocks had to travel 25 km
to Sambalpur for eye- screening,
check-up and spectacles. With the
Vision Care Centres, we provided
doorstep services through camps invillages, free eye check-ups in schooland employment to local youth as
optometrists. There is a significant
increase in the uptake of eye careservices, thus, leading to considerable
reduction in the burden of avoidable
blindness. Most of the problems are
addressed locally at the vision centres
and only a small number are referred
to either a secondary or a tertiary level
hospital for further management. Thishas benefited senior citizens, people
above 40 years, and school students.
We were able to conduct 12 eye healthcamp in a year with an outreach tomore than 100 villages.

Lives touched

3,000

Eye patients treated through OPD
Eye Health Care

10,000+

People reached through door-todoor campaign and Panchayat level
Eye Screening Camps

570+

Students received eye-screening.
A total of 13 students were
provide spectacles.

1,000Cataract surgeries were performed
free of cost

Raising awareness against social evils
like exploitation, inequality, trafficking
in the remote corners of India, etc., hasbeen our unrelenting battle for decades.
With the support of community andlocal bodies, we organised awarenesscampaigns on social issues such as childlabour, child marriage, women abuse,dowry and illiteracy. We also came to theaid of people during disasters with ourrelief programmes. The lack of financial
literacy means rural people, especiallywomen, never learn how to earn or
manage money. We address these issues
through financial literacy programmes
and empower rural communities,
especially women, through Self-help
Groups, teaching them fundamental
concepts of financial literacy andincome generation.
Some of the key social reform initiatives
carried out during FY2021-22 andnumber of beneficiaries are shown in
the table:

Initiatives
Child trafficking

Number ofBeneficiaries(FY2021-22)
3Supported people inDisaster relief

3,379

Blanket distribution

7,544

AFFORDABLE SANITARY PADMANUFACTURING UNIT

In rural settings, people are unawareof sanitation and best hygiene
practices and discussions on
menstruation is still a taboo. Lack ofaccess to sanitary pads results in theuse of the unsafe alternatives which
may be detrimental to women’s
health. Many adolescent girls miss5 days of school per month and about
23% girls drop out of schools after
they start menstruating.
To tackle this, our theory of change
model adopted a three-pronged
approach at Gare Palma:• S ocial mobilisation, education& awareness regarding goodmenstrual hygiene practices.
• C reating in-house infrastructure
to fulfill the demand of sanitarynapkins.
• S upplying affordable sanitarynapkins to the underprivileged
sections of society.

Local women were trained to
manufacture and distribute sanitary
pads and were provided withnecessary infrastructure to set up
sanitary pad manufacturing units.

Outcome of the project
We were successful in creatingawareness about good menstrual
hygiene practices and break the taboo
associated with it.

10

Women completed the training

3,200

Pads (400 packets) produced anddistributed

Integrated Annual Report 2021-22

137

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Social and Relationship Capital
Sustainable Livelihood
Our interventions in skill development
and sustainable livelihood seek to equip
locals with crucial skills for financial
independence.
During FY2021-22, we initiated various
programmes actualised through threeintervention areas:• C reation of livelihood opportunities
and provision of employability
skills including farmer training
programmes and technical skill
development programmes• E nhancing water availability throughintegrated watershed management• C onstruction of good quality,
reliable and resilient infrastructure,and ensuring access to safe andaffordable housing facilities

1,513 people received
Vocational JobOriented Skill Training

2,253 youths received
technical skill training

1,813 SHGs with 23,214
members provided
with financial literacy,
managerial andconceptual training

346 farmer meetings
conducted with 5,720
farmers in attendance

3,468 farmers were
provided agricultural
tools, seeds, fertiliser,
and insecticides

48,779 cattle were
immunised inveterinary camps

A significant quantum of our actions
is aimed at nurturing grassroots
entrepreneurship in rural margins, withwomen and farmers at the forefront of
economic activities.

REJUVENATING A DECLINING CLASSIC - BUILDING KOSA
INTO A GLOBAL SILK HANDLOOM BRAND

Hindalco’s CSR initiative to establish asocial enterprise and build a premiumsilk handloom brand is in full swing.
This year we set up ‘Kosala Livelihoodand Social Foundation’, aimed at
generating sustainable livelihood
opportunities for reelers, weavers andartisans. We were able to generate
a total revenue of `45 Lakh from thisproject for FY2021-22, generating
sustainable livelihood opportunities

HINDALCO INDUSTRIES LIMITED

Water harvesting areas are mandated for every restored
mine site. To use these water bodies optimally, livelihoodinterventions suitable for the local communities wereplanned. This is an initiative towards livelihood generation
carried out at Bagru mines, Jharkhand. In this project,exhausted mining pits are utilised as water harvesting
structures. Dump water and surface run-off during monsoon
is channelised into these structures. In this way, thesepits get converted into ponds which are used to practicepisciculture. We have established bamboo cage and nursery
for fingerlings, and a duck house to protect them during
early stages of growth.
Under this project we imparted training to 10-12 farmers on
scientific pisciculture. We also provided training on duck
rearing to a self-help group ‘Binko-Sangi Mahila Mandal’
comprising 12 women. We helped them engage in the fish
trade to earn their livelihood.
Initially, we invested `23 Lakhs but now the project is selfsustainable and solely handled by the SHG with technicalguidance and support from Hindalco.

Hindalco is generating
livelihoods andrestoring the dying
art form of Kosasilk by training
women in Raigarh

138

SUSTAINABLE LIVELIHOOD OPPORTUNITIESTHROUGH DUCK FARMING AND
AQUACULTURE TO LOCAL COMMUNITIES

for 110 beneficiaries (reelers, weavers
and artisans), with an income of `10
Lakhs. We also trained 46 women as
reelers under this project. We haveonboarded design and market linkage
partners for the operations. We arefurther aiming to mobilise moreartisans, firming up the organisation on
the ground, and launching Kosala as a
global brand.

#WADI (HARELI)BIODIVERSITY BENEFITS ALL

Wadi in Gujarati means an orchard.
Wadi model is a tried and tested
way to promote sustainable tribal
livelihood. Tribal economies tend to
be primarily subsistence-oriented
and are based on a combinationof agriculture, forestry and wage
labour. Although tribal populations
are mainly dependent on agriculture,
the collection of forest produce
plays an important role in household
consumption and income generation.
Besides this, there are other challenges
faced by tribal populations at the
local level. Local farmers are usually

restricted majorly to one/two cropsof rice while Orcharding/Horticulture
practices are restricted mostly to large
farmers. Small/marginal holders are
not yet introduced to or are fully awareof the concept of crop diversification/
integrated farming.
To overcome some of theaforementioned challenges, we
implemented Wadi model to develop
sustainable livelihood opportunities
for participating tribal communities
through remunerative selfemployment and prevent migration.

Till March 2022, 200 Wadis were
initiated and pre-plantation work
was completed. A total of 20 SHGs
have been oriented to and mobilised
for training in off farm trades (vermi,
poultry, goatery, vegetable farming).
Considering the effective project
outcome, we plan to initiate its next
phase, which shall include activities
such as second batch of plantation,formation of new SHGs, developmentof infrastructure (irrigation andfencing) and providing training in
non‑farming activities.

Integrated Annual Report 2021-22

139

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Social and Relationship Capital
VERMICOMPOSTING AND MUSHROOMCULTIVATION- SUSTAINABLE PRACTICES FOR
PRODUCING HIGH VALUE CROPS

make vermicompost and manage the enterprise throughsales and record keeping. Over time, seven more SHGs
were formed. All these SHGs were brought together under‘Sangam Kechua Khad Utpadan Samiti’, a larger people’sorganisation. This helped to ensure maximum profit andnegotiation power to the organisation.

The local communities near Bagru mines have limitedland-based livelihood options. The agricultural produce
stays limited to a single crop in the kharif season. Chemicalfertilisers are used by the local farmers, thus deteriorating
and contaminating the soil. We found that there was a needto make the local farmers aware of the benefits of organic
means of cultivation and farming.
In 2011, a single vermicompost unit was established byHindalco near the Bagru mines area. A Self-Help Group(SHG) by the name of Jai Sarna Mahila Mandal from
Jamunatoli Village, comprising 11 women, was trained toCurrently, more than 80 women are practicing the trade
and their annual production of vermicompost is more than
8,000 MT. The annual turnover of the samiti from the ‘black
gold’ is around `55 Lakh. This project assured sustainable
livelihood to 80 women and created awareness among local
farmers to use vermicompost over chemical fertilisers. Now,
the project is self-sustained and efficiently managed by the
SHG members.
We also trained the local women on earning livelihood
through mushroom cultivation in partnership with SRI,
Ranchi. 12 members of the “Ujala Mahila Samuh” of Bandhi
village have started the production of oyster mushrooms.
Apart from training, we provided infrastructure for the
production unit. During first cycle of project, we provided
them with mushroom spawns, required substrate andpesticides. Now each member is earning around `5,000
per crop.

Water is one of the most precious natural
resources on our Planet so we aim to
make our operation water positive
through various infrastructural measures
for storage, recycle, reuse of water forthe benefit of the local community. In thisprocess we have constructed/renovatedover 133 check dams, 169 ponds, 2 canals,
4 reservoirs, 13 water harvesting tanks
and 60 trench clusters. Spread across 5
states, these initiatives have helped toirrigate more than 10,000 acres of land
belonging to around 10,000 farmers.
Additionally, more than 5,700 families
are getting water for daily use throughthese measures. We have been able tostore 3.1 Million cubic metres of water
through various watershed development
initiatives across our units.

15

Roads constructed

Rainwater harvesting
pond at Kathautia

1

Place of heritage repaired/
maintained

Good infrastructure is the foundation foreconomic activity and inclusive growth.
Our goal of facilitating sustainable
development among rural communities islinked to enhancement and developmentof rural infrastructure.

140

HINDALCO INDUSTRIES LIMITEDOur Samri mines, located in
Chhattisgarh, is in a water scarcezone. Conservation of groundwater isa major worry for local communities.
We have taken up a project to achieve
water positivity in Samri bauxite
mines with an aim of giving backmore water to the environment
and the community than we take.

337

rainwater harvesting
structures till now

Fostering Relationshipwith Customers

SHAPING THE FUTURE
OF WATER- RAINWATER
HARVESTINGInfrastructure Development

Thus, we have taken up criticalinfrastructure development projects inareas where we operate. This includes
construction of roads to improveconnectivity to the nearby market or
hospitals, watershed development andirrigation support, ponds, schools andhospitals, community halls/kitchen,
repairs/maintenance of places of heritage,
sports and recreation centers, etc.

BUILT OVER

As an innovative way to involvethe community and fulfill theirrequirements, we have built Water
ATMs. Currently, 3 drinking water
ATMs built by us have been handed
over to the community. In the next
four years, we aim to install two more
ATMs benefiting local communities
and our contractual employees.

Business longevity relies on customer
satisfaction and we serve a global
customer base through operations
spread across our 50 manufacturing
units. Regular interactions withcustomers help us upgrade our
products and processes to meet theirdynamic needs and requirements. We
continuously work to develop safe andsustainable products with a promise todeliver superior quality and unmatchedexperience. What differentiates us is
our focus on value co-creation throughsolution-driven approach that transcends
product supply, identifying customers’
implicit and explicit needs.
Our multidimensional approach towards
customer centricity has helped us deliver
enhanced customer experience acrossour value chain. During the reporting
period, there were no complaints
received concerning breaches ofcustomer privacy and losses ofcustomer data.

Integrated Annual Report 2021-22

141

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Social and Relationship Capital
Aluminium Business - Key Customers

Market served (Aluminium and Copper)

Automotive
and transport

DefenceIndustrial
application

Building
and Construction

Electrical andElectronics

Pharmaceuticals,
beverage cans andpackaging

At Hindalco, we have built a strong customer base throughour diverse aluminium offerings.

ConsumerdurablesMarket Served
RailwaysEnhancing customer experience

Automotive and transport: Used in automobile
components such as brakes, transmission,
suspension, Noise Vibration Harness, Steering
Knuckle, Truck body fabrication cooling andexhaust systems, automobile heat exchangers
and registration plates, structural, and decorative
beadings.

Hindalco has
developed a rangeof lightweightcommercial vehicles

Geographies

North America

EuropeAsia Pacific(United Statesof America, andCanada)(Italy, Spain,
Netherlands, Turkey,
Germany, United
Kingdom)(India, South Korea,
Taiwan, Malaysia, China,
Japan, Vietnam, Thailand,
Bangladesh, etc.)

Aluminium Offerings
Primary Applications


I
ngots



E
C wire rodsB
illets

Extrusion Applications

Transport solutions


Flat-rolled Applications



AutomotiveACP stocks

Industrial machinery

DefenceWhite goods (used in
cookware, ladders, mixer
grinder partsCircles (used in pressure
cookers, non-stick
cookware)E
lectronics (used in lightreflectors, heat sinks, solar
panels, insulation)
Constructions

C
losure stocksClad and FinstockF
oil stockL
itho stocks

Hard alloysBuilding Sheets (used inresidential roofing, false
ceilings, etc.)

Foil Applications
Central and SouthAmerica(Brazil, Mexico, Ecuador,
Colombia, Peru, Argentina,
Costa Rica, etc.)

142

HINDALCO INDUSTRIES LIMITEDF
lexible Packaging(Aseptic/Tetra pack, food,
tobacco, personal care)PharmaceuticalHouse foil/Semi Rigid
containers

Middle East
(Israel, United ArabEmirates, Qatar,
Kuwait, Oman, Saudi
Arabia, Turkey)L ight weighting
applications and solutions
in V and personal mobility
segmentsGeneral engineering
products

 uilding and construction: Used in roofing,Bdoors and windows, facades, formwork, structural
applications, ceilings, grills, hardware, shutters,
ladders, etc. It is also used in building andconstruction as it is resistant to corrosion.
Defense: Used for assault bridges, main battle
tanks, missiles, weaponry systems, boats, etc.
 lectricals and electronics: Used in powerE
generation and transmission, cables andconductors, lamp caps, cable wraps, marine
applications, light reflectors, heat sinks, solar
panels, insulation etc.
Industrial applications: Used in textile spindles,
hydraulic pumps, actuators and cylinders to valves,
industrial machinery components, printing etc.
harmaceuticals and packaging: Used in various
Ppackaging applications like can body, closure caps,
kitchen foils, tagger foil, pharmaceutical etc.
onsumer durables: Used in pressure cookers,
C
cookware, air conditioners, fans, refrigerators etc.
ommercial vehicle offerings: Light weightingCmarkers solutions in the form of aluminium alloy
CV bodies such as articulated semi-trailers, truck
bulkers, last mile e-mobility cargo boxes andrailway freight wagon super structures.
ersonal mobility: Components like bus bars,
P
handlebars, frames and battery boxes.

Integrated Annual Report 2021-22

143Corporate Overview

Strategic Overview

Novelis - Key Customer

Novelis Offerings

Copper Business - Key CustomersAluminium sheet and platematerial for fuselage andwing structure componentsutomotive Aluminium
A
sheet



L
ightweight electric vehicle
battery enclosureroducer of aluminiumP
beverage can sheetecycler of used beverageRcans.

Our range of copper products serve a large base of customers including:Market Served

Copper Offerings
Power Industry

Consumer Goods

Key offerings include:

It includes:

Conductors for transformerWinding WiresG
enerators and power
equipmentCables or Home AppliancesHouse wire cable andpower cable

Pumps & Motors

Automotive Industry

Constructions

It includes following offerings:

Manufacturers of
products like:•

Wiring Harness•

Casting Components•

Motors

Piping

Earthing

Plumbing

Building wires

Electronics
Manufacturers of:Specialised wires



Copper foilCircuit boards

144

HINDALCO INDUSTRIES LIMITED

Automotive and Transport: High purity copper wire
harness systems used to carry the current from thebattery throughout the vehicle which includes thelights, central locking, on-board computers, satellite
navigation systems, etc.

ovelis Specialty
N
Aluminium applications inArchitecture andConstruction
Food andPharmaceutical
Signage and PrintingTransportationCommercial andConsumer

Wire and Cable: LME grade copper and cathode,continuous cast copper rods of various sizes, andprecious metals such as gold and silver. Birla Copperand Birla Copper II are well-known in domestic andinternational markets for their high purity and constantquality.

Financial Statements

Aerospace: Aluminium offers high strength-toweight ratio, energy efficiency, and high tolerance toextreme temperatures - making it ideal material for the
manufacturing of aircraft.
Automotive: Novelis’s Advanz™ and Fusion™ productportfolio includes high-performing alloys ideal for
inner applications such as decklid and door inners andother closure inner panels.
Novelis is the leader in auto body sheets used formaking BIW light, durable vehicles.
Beverage cans: Produce distinctive Aluminium
bottles, which offer the same portability, light- weight,
and recyclability as Aluminium cans, but with theadded benefit of being re-closeable. Also, leading
buyer and recycler of used beverage cans (UBC’s)
globally
Specialities: Novelis offers a wide range of products
under specialities aluminium such as AL:sustTM, G77Ac,
SSL BF, etc.

MIXED - MATERIAL VEHICLEPRODUCTION

Electrical Equipment: Used in cables, transformers,
motors, busbars, alternators, generators, as well as inhome applications such as used in heat exchangers of
air conditioners and refrigerators, etc.
Railways: Used in pantographs, switchgear, braking
systems, motor windings, commutator bars, large andsmall service stations, copper is used extensively insignalling systems.

Statutory Reports

Market Served

Novelis operates integrated and technically advanced
rolling and recycling facilities across North America, SouthAmerica, Europe and Asia. Novelis’ hallmark is delivering
sustainable and innovative manufacturing solutions, withkey customer segments including automotive, aerospace,
beverage can and specialties industries.



Our Capitals

Aluminium is a versatile element andhas different applications in vehicle
body and closures, across different
vehicle types. Design engineers
continue to find new ways for lightweighting. As adoption of aluminum
grows across different applications,multi-material architectures are
now a common approach used by
vehicle manufacturers to achieve abalance between weight reduction

and cost for more price sensitive
segment which still requires efficiency
improvements. As aluminum can beeffectively alloyed with other metals,
it is an excellent choice for engineersconstructing multi-material bodystructures. In principle almost every
car on the road today is alreadya mixed-material architecture asengineers have determined that not
all parts of the vehicle body need tohandle the same levels of crash andstructural performance. This approachhas evolved in sophistication and now
there are extensive examples where
both aluminum and different typesof metals and composites can befound in the same structure. Novelis
has deep expertise in the applicationof aluminum alloys in combination

with various other sheet metals andis uniquely positioned to provide
technical guidance to automakers fromdesign to production feasibility. The
combination of extensive metallurgicalknow-how and automotive centric
testing and engineering capabilities,
permits Novelis to intimately guidethe industry with questions aroundcorrosion and joining practices.
Novelis’ products and joining knowhow also make it possible to integrate
aluminum sheet into a mixed-material
vehicle without requiring a significant
investment in new manufacturing
equipment.

Integrated Annual Report 2021-22

145

Corporate Overview

Strategic Overview

Statutory Reports

Our Capitals

Financial Statements

Social and Relationship Capital

Customer Satisfaction
We implement a mix of Bottom-Up and
Top-Down approach to gain a holistic
understanding of customer perceptions
regarding our products and services.
Our customer-centric approach has led
us to adopt a Net Promoter Score (NPS)model over our previous Customer
Satisfaction Model. We do a detailed
cross functional analysis of customer
feedback and try to assess customer
perceptions in depth through the NPS
survey. We plan appropriate actions to
be taken for higher customer advocacy
and satisfaction, identifying pain points
in the customer experience throughanalysis of the NPS model results.
To ensure customer grievances get
addressed in time and with quality,
our team follows a time boundstandard operating procedure ofgrievance redressal. Once a customer
registers a grievance, it is logged in ourCustomer Relationship Management(CRM) system. We analyse the issue
and provide Corrective and Preventive

146

HINDALCO INDUSTRIES LIMITED

75

(%)

29

46

64

Aluminium cylinders have theadvantage of being lightweightand portable. A sum of `350 Crore
was granted from the PM Cares
Fund for the Oxycare system
under which one Lakh cylinders
were manufactured. These will
be supplied all over India torecognised hospitals shortlisted by
the government.

Net Promoter Score

64

To combat the shortage of medical
oxygen across the country, we
collaborated with a multinational
automotive company to provide
aluminium extrusions for oxygen
cylinders.

Actions (CAPA) in the system before
closing the ticket, ensuring proper
resolution. We take measures to makesure that customers don’t face thesame issues in the future. During thereporting year, we did not receive asingle complaint on breach of customer
privacy and loss of customer data.

59

OXYCARE SYSTEM UNDER
ATMANIRBHAR BHARAT

Primary
Ingots
FY2020-21

Primary
Wire Rods

Flat Rolled
Products

FY2021-22

Product Safety and Quality
At Hindalco, we consider safe andreliable products as a fundamental
part of our product designing andmanufacturing process.
We serve Business to Business (B2B)
and Business to Customer (B2C) markets,adhering to mandated standards.
In our B2B model, we supply aluminium
to cookware manufacturers whichis certified “food grade” as per EN
602 and IS 21. We also provide test
certificates to our B2B customers toassure quality and reliability of thedelivered product. In the B2C model,
we conform to BIS Standards 15392,
Registration, Evaluation, Authorisation,
and Restriction of Chemicals (REACH
regulation of the European Union) and
Restriction of Hazardous Substances(ROHS) directive. We ensure compliancewith the quality requirements tominimise the use of restricted chemicals
in the manufacturing of the product.
For Aluminium foil, we adhere to lessthan 100 ppm of heavy metals as
mandated under the REACH regulation.
During the year, there was no reported
incident of non-compliance on producthealth and safety norms and standards.
Additionally, during FY2021-22, there
were no incidents of non-complianceconcerning marketing communications,product and service information orlabelling. All our products comply withlocal and international regulations on
product and service information andlabelling. Moreover, all our products andservices categories undergo health andsafety impact assessment.

While we meet much of our raw material
requirements from India, we have alarge supplier network across 41 othercountries including China, US, Mexico,
Italy, Singapore, Dubai, Armenia,
Japan, Togo, Chile, Peru, Brazil, Canada,
Australia, Indonesia, South Africa, etc.
Our suppliers undergo screening to beassessed on parameters such as pricecompetitiveness, quality, response timeand ESG criteria such as health andsafety, environmental standards, working
conditions, labour rights etc. Based on
the outcome of the assessment, eachsupplier is rated and placed in one of thefollowing categories:

Our Eternia range of products(aluminium doors and windows) andEverlast roofing solutions received theinternational GreenPro Certification/Eco
Label. This label is a testament to ouractions in alloy innovation and productdesign to create sustainable spaces andour contribution towards enhancing theperformance of Green Buildings. Ourtransport application solutions havegone through rigorous validation fromcertifying bodies such as ARAI and ICAT.

ii)	Empanelled Vendors: Those
eligible to undertake trial orders.

Our unit at Mouda has been certified
by Aluminium Stewardship Institute(ASI), demonstrating our commitment
to act responsibly in the production
and processing of aluminium products.
We are planning for other plants tobecome ASI certified as well. During theyear, we also received awards from CII
and Frost & Sullivan for our contribution
towards environment and sustainability.

i)	Identified Vendors: Those willing to
do business with our Company.

iii)	Approved Vendors: Those who
are finally selected and approved
post‑performance evaluation.
Our ‘critical suppliers’ are those
who provide- critical components
for our operations, constitute a highvolume of procurement spend or are
non‑substitutable. Suppliers who makeup 90% of the allocated total spend areclassified as critical. Out of total Tier-1
suppliers, we identified 119 suppliersas ‘critical’. Our total procurement
spent for the current reporting period
is `51,761 Crore for Hindalco on basisof order placement.

Our Supplier Network for Hindalco
No. of Supplier
Assessed
Share ofthrough
Total
Comprehensive Procurement
Methods
Spend

Absolute
Number of
Suppliers

AmountSpend` (Crore)

No. ofSupplier
Assessed

10,24551,761

10,245

169

100%

Critical Tier-1
Suppliers

119

46,597

119

47

90%

Critical nonTier-1 Suppliers

-

-

-

-

-

Type of
Supplier
Total Tier-1
Suppliers

Breakdown of Total Procurement Spend during
the FY2021-22 for Hindalco
Procurement spend by Geography (%)

2.92
3.09

1.82 5.23
1.91

India
30.41

Singapore
Switzerland
Chile

7.24

Australia
Indonesia
South Africa

7.55

Japan
US
Others
10.83
29.01

Sustainable Value Chain
Our suppliers are integral to ourbusiness and spread across theglobe. We encourage them to imbibe
our corporate values, demonstrate
good corporate citizenship and follow
sustainable practices through our
Supplier Code of Conduct.

Jetty atBirla Copper, Dahej

Integrated Annual Report 2021-22

147

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Social and Relationship Capital
Supplier Code of Conduct
Our Supplier Code of Conduct (SCC) has
been developed in line with global bestpractices on safety, health, environment,
human rights, ethical and fair businesspractices. This is to ensure responsible
sourcing and implementation ofsustainable business practices throughout
our value chain. All our suppliers are
expected to adhere to the minimum
employment age limit, as per applicablelaws or regulation and comply with
relevant International Labor Organisation(ILO) standards on human rights, as laid
down in our SCC. Moreover, suppliers
are asked to maintain and promote
fundamental human rights and prohibit
forced or compulsory labor.

Key focus areas from our
Supplier Code of Conduct
Compliance with All Applicable
Laws and Regulations

Business Ethics
Occupational Health and
SafetyLabour and Human Rights

Anti-corruption/Bribery
Verification of Supplier’s
Compliance
Development of High Quality
and Safe Products
Fair Treatment to Employees
and Suppliers
Sustainable Practices

148

HINDALCO INDUSTRIES LIMITED

Our supply chain partners undergo
periodic assessments to check whether
they are conforming to the Supply Chain
Code of Conduct. We also encourage our
suppliers to develop their own sourcing
policies and standards in line withinternational standards.

Integrating ESG in Supply
Chain Management
With the increased focus on ESG, it has
become imperative for our business to
identify potential and actual ESG risks
which are material to our supply chain.
We remain committed to comply withall applicable legislations, regulations,and codes of practices, including
environment, health and safety laws,
across our value chain. We expect our
suppliers to maintain safe working
conditions at their operations bycontinuously identifying, assessing,and reducing health and safety risk incompliance with our SCC. Suppliers arealso encouraged to create awarenessand provide training on risk precautions
and emergency measures to theiremployees and contractors.
We comply with applicable labourlaws in the geographies in which we
operate. Our Human Rights Policy(HRP) and SCC outline the company’s
as well as suppliers’ responsibility toprotect fundamental rights of workers

and individuals. Compliance with theserequirements is assessed at the time of
supplier selection or assessment throughour Vendor Evaluation Process. During
the reporting period, we focussed on
establishing business relationship withthose suppliers who did not violate
labour laws or caused any detrimental
impact on the environment.

Supplier Evaluation and Risk
Assessment
Our formal supplier risk identification
process helps us in evaluating suppliers
during two stages – on-boarding andbiennially for assessment of selected
critical suppliers. Our suppliers areassessed on parameters such as healthand safety, environment management,labour management and human rights,
statutory compliance, financial attributes
and market dependency. Based on risk
assessment, each supplier receives ascore which determines their risk rating
and gives an overview of prevalent risks.
About 25% weightage is given to ESG
segment in the overall assessment of
the suppliers.
Based on the score received in thevendor assessment process, rating
is calculated for each supplier. Basistheir rating, they are classified into
high, medium or low risk. Low ratingof supplier impacts their business

opportunity/relationship with us. During
the FY2021-22, 19 % of total suppliers
have been classified as high-risk.
According to the most recent vendor
assessment conducted in FY2018-19, 38%
of our critical suppliers scored below
2.5 and we further aim to reduce suchsuppliers by 3% by FY2022-23.
Risk Rating

CategoryLess than 2.5**

High Risk Supplier(Development Needed)

2.5 to 3.24

Moderate Risk Supplier(Acceptable-Action may
still be required)3.25 to 5.00

Low Risk Supplier** Suppliers categorised as high-risk standto lose the opportunity to receive inquiries orbusiness from Hindalco.

We are committed to provide therequired training and support to all our
critical Tier- 1 suppliers (with score lessthan 2.5), to help them improve their risk
rating. Our target is to achieve significant
improvement in our scores by 2024. For
suppliers with a good score (over 4), we
also plan to conduct physical and virtual
audits. By 2024, our goal is to conduct
due diligence of 100% of our criticalsuppliers, with whom we have hadbusiness relationship for last two years.
We also carry out risk evaluation of theentire supply chain. With the dynamic
market conditions and growing presenceof technology throughout the supply
chain, risk assessment has become acrucial mechanism for the organisations
to manage supplier side risks.

We have developed an enterprise risk
register for the central procurement
supply chain. In the risk register,
we identified key risks associated with
supply chain disruption, geopoliticallogistics, infrastructure, financial,strategic and operational risk. We carryout a root cause analysis, identify
Company objectives that the risk
has a bearing on and asses the risk’s
likelihood and severity score. Based on
the increasing order of scores, risk is
categorised as Green, Yellow, Amberand Red. Post risk categorisation, weestablish a mitigation plan to reduce risk
score. Execution of the mitigation plan isevaluated every month.
During the reporting year, 156 suppliers
were screened using environmental
criteria and 299 suppliers were screenedusing social criteria. All of our new
suppliers were screened using socialand environmental criteria during
vendor on‑boarding. A total of 159 of our
suppliers have undergone sustainability
risk assessment in the last 3 years.

Managing supply chain during
pandemic
Due to COVID-19 induced lockdown andclosure of state and country borders, wefaced connectivity challenges within the
supply chain. To ensure continuity of ouroperations, we proactively establishedconnections with plant teams tounderstand and resolve their supply side
concerns. Within ten days of lockdown,
we were able to increase the inventory of
key raw materials from 8 days to 15 days
and broadened our vendor base fromone key vendor to upto four vendors incertain cases. We developed indigenous
sources for materials that were heavily
dependent on imports and diversified
our AlF3 (Aluminium Flouride) supplies
by procuring from Middle East and
Mexico, thus reducing dependencies on
China and Italy. The suppliers took risks
for us by surrendering the clearance
documents without getting payment.
All this was possible because of therelationship of trust between Hindalco
and its supply chain partners.

EXTENDING A LIFELINE
TO THE COMMUNITY
AT RENUKOOTAt the peak of the second COVID-19
crisis, when Oxygen was needed tosave the lives of COVID-19 affectedpatients, we identified that one of
our previous gas suppliers had an
oxygen plant in Anpara which was
non-operational for last 7 years.
We initiated and supported therestoration of the oxygen plant incollaboration with the oxygen plantowner, so that the acute shortage ofoxygen could be addressed. Interdepartmental teams were made, whoworked day and night to execute theoperation with continuous guidancefrom the plant head. With this joint
effort, we managed to restart theoxygen plant in just 6 days.

The system started working in fullswing, and approx. 300 oxygen
cylinders were refilled on a daily
basis. Anpara Gases has supplied
oxygen cylinders to public and private
hospitals in Mirzapur, Shaktinagar
and Robertsganj. It supplied oxygen
to hospitals and industries based inSingrauli (Madhya Pradesh) as well.
The revival of this plant saved lives
and was a boon to the community
during this difficult time.

Integrated Annual Report 2021-22

149

Corporate Overview

Major Awards and Recognitions

Corporate
Hindalco ranked as ‘World’s Most
Sustainable Aluminium
Company’ in the S&P Dow
Jones Sustainability Indices(DJSI) Corporate Sustainability
Assessment (CSA) rankings 2021
Hindalco won ‘Sustainable
Corporate of the Year Award– 1st Runner up’ by Frost &Sullivan and TERI Sustainability
4.0 Awards 2021
Hindalco was certified as a
‘Great Place to Work’ by the Great
Place to Work Institute in 2021 inrecognition of Hindalco’s efforts
towards building a building aculture of High-Trust and High
Performance.
ICAI- SRSB silver shield for
integrated report in the newentrants category.

Utkal
Utkal won Sita Ram Rungta
Social Awareness Award
Utkal won 2nd Runners
Up award at India Green
Manufacturing Challenge 2021

150

HINDALCO INDUSTRIES LIMITED

Renukoot
Renukoot won ‘Dream
Companies to Work for’ at HR
Excellence Awards 2022
Renukoot wins SEEM National
Energy Management Award in
Platinum category

Hirakud
Hirakud won a Special Award
for Energy Conservation atIndia Green Manufacturing
Challenge 2021

AdityaAditya won a Special Award forEnergy Conservation at India
Green Manufacturing Challenge
2021
Aditya won Fame ExcellenceAward in Platinum category for‘Project Saksham’
CII Award under waste 3R category

Belagavi
CII Award under waste 3R category

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

GRI Content Index
Statement of use

Hindalco Industries Limited has reported in accordance with the
GRI Standards for the period 01 April 2021 to 31 March 2022.

GRI 1 used

GRI 1: Foundation 2021

GRI Standard/
Other Source

Disclosure

Location

Omission
Requirement(s)OmittedReason Explanation

GRI Sector
Standard
Ref. No.

General disclosures
GRI 2:
2-1 Organisational details
General Disclosures
2-2 Entities included in the2021
organisation’s sustainability
reporting

10-13 (Our Business at Glance)

-

-

-

-

7 (About the report)

-

-

-

-

7 (About the report)

-

-

-

-

2-4 Restatements of information 120 (Natural Capital)

-

-

-

-

2-5 External assurance

Independent assurance
statement on Integrated Report

-

-

-

-

2-6 Activities, value chain andother business relationships

12, 13 (Our Business at Glance)

-

-

-

-

2-7 Employees

74 (Organisation effectivenessEmployee Strength)

-

-

-

-

2-8 Workers who are not
employees

74 (Organisation effectivenessEmployee Strength)

-

-

-

-

2-9 Governance structure andcomposition

16-17 (Leadership Team)
18-19 (Board of Directors)

-

-

-

-

2-10 Nomination andselection of the highest
governance body

Coprorate Governance Report

-

-

-

-

2-11 Chair of the highest
governance body

Coprorate Governance Report

-

-

-

-

2-12 Role of the highest
governance body in overseeing
the management of impacts

Coprorate Governance Report

-

-

-

-

2-13 Delegation of responsibility
for managing impacts

Coprorate Governance Report

-

-

-

-

2-14 Role of the highest
governance body insustainability reporting

102 (Environment Management)

-

-

-

-

2-15 Conflicts of interest

Coprorate Governance Report

-

-

-

-

2-16 Communication ofcritical concerns

Coprorate Governance Report

-

-

-

-

2-17 Collective knowledge of thehighest governance body

Coprorate Governance Report

-

-

-

-

2-18 Evaluation of theperformance of the highest
governance body

Coprorate Governance Report

-

-

-

-

2-3 Reporting period, frequency
and contact point

Integrated Annual Report 2021-22

151

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

GRI Content Index
GRI Standard/
Other Source

Disclosure

Location

Omission
Requirement(s)OmittedReason Explanation

GRI Sector
Standard
Ref. No.

GRI Standard/
Other Source

Disclosure

GRI 305: Emissions
2016

305-1 Direct (Scope 1) GHG
emissions

105 (Emission Management)

-

-

-

-

305-2 Energy indirect(Scope 2) GHG emissions

105 (Emission Management)

-

-

-

-

305-3 Other indirect (Scope 3)
GHG emissions

105 (Emission Management)

-

-

-

-

305-4 GHG emissions intensity

106 (Emission ManagementEmission Intensity)

-

-

-

-

305-5 Reduction of
GHG emissions

109 (Initiatives for Energy andEmission Reduction)

-

-

-

-

305-6 Emissions of ozonedepleting substances (ODS)

109 (Ozone Depleting Substance)

-

-

-

-

305-7 Nitrogen oxides (NOx),sulfur oxides (SOx), and othersignificant air emissions

106 (Stack Emissions)

-

-

-

-

GRI 3:
Material Topics
2021

3-3 Management of material
topics118 (Securing water)

-

-

-

-

GRI 303:
Water andEffluents 2018

303-1 Interactions with water asa shared resource

118 (Securing water)

-

-

-

-

303-2 Management of water
discharge-related impacts

122 (Securing Water- Effluent
Management)

-

-

-

-

303-3 Water withdrawal

119 (Securing Water- Water
withdrawal)

-

-

-

-

303-4 Water discharge

122 (Securing Water- Effluent
Management)

-

-

-

-

303-5 Water consumption

119 (Securing Water- Water
consumption)

-

-

-

-

Omission
Requirement(s)OmittedReason Explanation

GRI Sector
Standard
Ref. No.

2-19 Remuneration policies

HIL Remuneration Policy

-

-

-

-

2-20 Process to determine
remuneration

HIL Remuneration Policy

-

-

-

-

2-21 Annual total compensation
ratio

Details of remuneration(Annexure III)-

2-22 Statement on sustainable
development strategy

26 (Message from Managing
Director)-

2-23 Policy commitments

85 (Human Rights),
Human Rights Policy-

2-24 Embedding policy
commitments

85 (Human rights)-

2-25 Processes to remediate
negative impacts

Corporate Governance Report42, 43 (Stakeholder engagement)-

2-26 Mechanisms for seeking
advice and raising concerns

Corporate Governance Report

-

-

-

-

2-27 Compliance with laws andregulations

102 (Environment Management)

-

-

-

-

2-28 Membership associations

15 (Our key associations)

-

-

-

-

2-29 Approach to stakeholder
engagement

42,43 (Stakeholder engagement)

-

-

-

-

2-30 Collective bargaining
agreements

83 (Employee well-being andHuman rights)

-

-

-

-

3-1 Process to determinematerial topics

42-45 (Stakeholder engagement,
Materiality Assessment)

-

-

-

-

3-2 List of material topics

44 (Materiality Assessment)

-

-

-

-

-

-

-

Occupational health and safety
GRI 3:
Material Topics
2021

3-3 Management of material
topics86 (Occupation Healthand Safety)

-

-

-

-

GRI 403:
Occupational
Health and Safety2018403-1 Occupational health andsafety management system

86 (Occupation Health and
Safety)

-

-

-

-

-

-

-

Water Management

Material topics
GRI 3:
Material Topics
2021

Location

Energy & GHG Emissions Management
GRI 3:
Material Topics
2021

3-3 Management of material
topics103 (Energy Consumption)
105 (Emission Management)-

GRI 302:
Energy 2016

302-1 Energy consumption
within the organisation

103 (Energy Consumption)

-

-

-

-

302-2 Energy consumption
outside of the organisation

104 (Energy Consumption)

-

-

-

-

-

-

-

-

104 (Energy Consumption- Energy
Intensity)

-

-

-

-

403-2 Hazard identification,risk assessment, and incident
investigation

89 (Safety Risk Assessment)

302-3 Energy intensity
302-4 Reduction of energy
consumption

109 (Initiatives for Energy andEmission Reduction)

-

-

-

-

403-3 Occupational healthservices

89 (Occupational Health Services)

-

-

-

-

403-4 Worker participation,
consultation, andcommunication on occupational
health and safety

87 (Safety Training)
89 (Safety Risk Assessment)

-

-

-

-

403-5 Worker training on
occupational health and safety

87 (Safety Training)

-

-

-

-

152

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

153

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

GRI Content Index
GRI Standard/
Other Source

Disclosure

Location

Omission
Requirement(s)OmittedReason Explanation

GRI Sector
Standard
Ref. No.

403-6 Promotion of worker
health89 (Occupational Health Services)

-

-

-

-

403-7 Prevention and mitigationof occupational health andsafety impacts directly linked bybusiness relationships

89 (Occupational Health Services)
89 (Safety Risk Assessment)

-

-

-

-

403-8 Workers covered by an
occupational health and safety
management system

87 (Safety Training)
89 (Occupational Health Services)
89 (Safety Risk Assessment)

-

-

-

-

403-9 Work-related injuries

88 (Work-related injuries)

-

-

-

-

403-10 Work-related ill health

88 (Work-related injuries)

-

-

-

-

GRI 3:
Material Topics
2021

3-3 Management of material
topicsCorporate Governance Report

-

-

-

-

GRI 205:
Anti-corruption
2016

205-1 Operations assessed forrisks related to corruption

Corporate Governance Report

-

-

-

-

205-2 Communication andtraining about anti-corruption
policies and procedures

Corporate Governance Report

-

-

-

-

205-3 Confirmed incidents ofcorruption and actions taken

Corporate Governance Report

-

-

-

-

GRI 206:
Anti-competitive
Behavior 2016

206-1 Legal actions for anticompetitive behavior, anti-trust,and monopoly practices

Corporate Governance Report

-

-

-

-

GRI 415:
Public Policy 2016415-1 Political contributions

Corporate Governance Report

-

-

-

-

GRI 3:
Material Topics
2021

3-3 Management of material
topics70 (Organisation Effectiveness)

-

-

-

-

GRI 401:
Employment 2016

401-1 New employee hires andemployee turnover

75 (Organisation EffectivenessEmployee Strength)

-

-

-

-

401-2 Benefits provided tofull-time employees that are notprovided to temporary or parttime employees

83 (Employee Well-Being andHuman Rights)

-

-

-

-

401-3 Parental leave

84 (Employee Well-Being andHuman Rights)

-

-

-

-

84 (Employee Well-Being andHuman Rights)

-

-

-

-

404-1 Average hours of training
per year per employee

78 (Learning and Development)

-

-

-

-

404-2 Programs for upgrading
employee skills and transition
assistance programs

78 (Learning and Development)

-

-

-

-

Ethics and Integrity

GRI 404:
Training and
Education 2016

154

HINDALCO INDUSTRIES LIMITED

Disclosure

Location

Omission
Requirement(s)OmittedReason Explanation

GRI Sector
Standard
Ref. No.

404-3 Percentage of employees 76 (Performance Evaluation)
receiving regular performanceand career development reviews

-

-

-

-

GRI 405: Diversity
and Equal
Opportunity 2016405-1 Diversity of governancebodies and employees

74 (Organisation effectivenessEmployee Strength)

-

-

-

-

405-2 Ratio of basic salary andremuneration of women to men

84 (Employee Well-Being andHuman Rights)

-

-

-

-

GRI 406:
Non-discrimination
2016406-1 Incidents of discriminationand corrective actions taken

81 (Diversity and Inclusion)

-

-

-

-

GRI 407: Freedomof Association
and Collective
Bargaining 2016407-1 Operations and suppliers
in which the right to freedomof association and collective
bargaining may be at risk

83 (Employee Well-Being andHuman Rights)

-

-

-

-

GRI 3:
Material Topics
2021

3-3 Management of material
topics133 (Engage, Uplift & EmpowerInvesting in communities)

-

-

-

-

GRI 413:
Local Communities
2016413-1 Operations with local
community engagement, impact
assessments, and development
programs

133 (Engage, Uplift & EmpowerInvesting in communities)

-

-

-

-

413-2 Operations with significant 133 (Engage, Uplift & Empoweractual and potential negative
Investing in communities)
impacts on local communities

-

-

-

-

Community Relations

Economic performance

Employee well-being

GRI 402:402-1 Minimum notice periods
Labor/Management regarding operational changes
Relations 2016

GRI Standard/
Other Source

GRI 3:
Material Topics
2021

3-3 Management ofmaterial topics

47 (Financial Capital)

-

-

-

-

GRI 201:
Economic
Performance 2016

201-1 Direct economic value
generated and distributed

48 (Financial Capital- Economic
Value Creation)

-

-

-

-

201-2 Financial implications andother risks and opportunities
due to climate change

35 (Building Resilience)
102 (Towards Decarbonisation)

-

-

-

-

201-3 Defined benefit plan
obligations and otherretirement plans

Corporate Governance Report

-

-

-

-

201-4 Financial assistancereceived from government

Financial Statements(Consolidated Statement of
Cash Flows)

-

-

-

-

203-1 Infrastructure investments
and services supported

53 (Financial Capital- Capacity
expansion)

-

-

-

-

203-2 Significant indirect
economic impacts

133 (Engage, Uplift & EmpowerInvesting in communities)

-

-

-

-

GRI 203:
Indirect Economic
Impacts 2016

Integrated Annual Report 2021-22

155Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

GRI Content Index
GRI Standard/
Other Source

Disclosure

Location

Omission
Requirement(s)OmittedReason Explanation

GRI Sector
Standard
Ref. No.

GRI Standard/
Other Source

Disclosure

Location

Omission
Requirement(s)OmittedReason Explanation

GRI Sector
Standard
Ref. No.

Customer health and safety

Security and Human Rights
GRI 3:
Material Topics
2021

3-3 Management of material
topics85 (Human Rights)
147 (Supplier code of conduct)

-

-

-

-

GRI 3:
Material Topics
2021

3-3 Management of material
topics141 (Fostering Customer
Relationship)

-

-

-

-

GRI 408:
Child Labor 2016408-1 Operations and suppliers
85 (Human Rights)
at significant risk for incidents of 137 (Social Reforms)
child labor
148 (Supplier code of conduct)

-

-

-

-

GRI 416:
Customer Healthand Safety 2016416-1 Assessment of the healthand safety impacts of productand service categories

146 (Product Safety and quality)

-

-

-

-

GRI 409:
Forced orCompulsory Labor
2016409-1 Operations and suppliers
137 (Social Reforms)
at significant risk for incidents of 148 (Supplier code of conduct)
forced or compulsory labor

-

-

-

-

416-2 Incidents of noncompliance concerning thehealth and safety impacts ofproducts and services

146 (Product Safety and quality)

-

-

-

-

GRI 410:
Security Practices
2016

410-1 Security personnel trainedin human rights policies orprocedures

85 (Human Rights)

-

-

-

-

417-1 Requirements for productand service information andlabeling

146 (Product Safety and quality)

-

-

-

-

85 (Protecting Indigenous
Communities)

-

-

-

-

417-2 Incidents of noncompliance concerning productand service information andlabeling

146 (Product Safety and quality)

-

-

-

-

417-3 Incidents of noncompliance concerningmarketing communications

146 (Product Safety and quality)

-

-

-

-

418-1 Substantiated complaints
concerning breaches ofcustomer privacy and losses ofcustomer data

146 (Customer Satisfaction)

-

-

-

-

GRI 411:411-1 Incidents of violations
Rights ofinvolving rights of indigenous
Indigenous Peoples peoples
2016

GRI 417:
Marketing andLabeling 2016

Waste
GRI 3:
Material Topics
2021

3-3 Management of material
topics113 (Waste as a Resource)

-

-

-

-

GRI 306:
Waste 2020306-1 Waste generation andsignificant waste-related
impacts

114, 115 (Waste as a ResourceNon-Hazardous waste andHazardous waste)

-

-

-

-

GRI 418:
Customer Privacy
2016306-2 Management ofsignificant waste-related
impacts

114, 115 (Waste as a ResourceNon-Hazardous waste andHazardous waste)

-

-

-

-

Procurement practices
3-3 Management of material
topics146, 147 (Sustainable Value Chain)

-

-

-

-

306-3 Waste generated

114, 115 (Waste as a ResourceNon-Hazardous waste andHazardous waste)--

GRI 3:
Material Topics
2021

204-1 Proportion of spending on
local suppliers

147 (Sustainable Value Chain)

-

-

-

-

306-4 Waste diverted from
disposal

114, 115 (Waste as a ResourceNon-Hazardous waste andHazardous waste)-

GRI 204:
Procurement
Practices 2016

-

-

-

-

114, 115 (Waste as a ResourceNon-Hazardous waste andHazardous waste)-308-1 New suppliers that werescreened using environmental
criteria

148, 149 (Supplier Evaluation andRisk Assessment)

306-5 Waste directed todisposal

GRI 308:
Supplier
Environmental
Assessment 2016308-2 Negative environmental
impacts in the supply chain andactions taken

148, 149 (Supplier Evaluation andRisk Assessment)

-

-

-

-

GRI 3:
Material Topics
2021

3-3 Management of material
topics112 (Responsible Consumption)

-

-

-

-

GRI 414:
Supplier Social
Assessment 2016414-1 New suppliers that werescreened using social criteria148, 149 (Supplier Evaluation andRisk Assessment)

-

-

-

-

GRI 301:
Materials 2016

301-1 Materials used by weightor volume112 (Responsible Consumption)

-

-

-

-

414-2 Negative social impacts
in the supply chain and actions
taken

148, 149 (Supplier Evaluation andRisk Assessment)

-

-

-

-

301-2 Recycled input materialsused

112 (Responsible Consumption)

-

-

-

-

301-3 Reclaimed products andtheir packaging materials

112 (Responsible Consumption)

-

-

-

-

-

-

-

-

-

-

-

-

Materials

156

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

157

Corporate Overview

GRI Content Index
GRI Standard/
Other Source

Disclosure

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

UNGC Principles
Location

Omission
Requirement(s)OmittedReason Explanation

GRI Sector
Standard
Ref. No.

UNGC
Principles

Description of the Principle

Section in Report

Page No.

Principle 1

Businesses should support and respect the protection ofinternationally proclaimed human rights.

Human Capital

85

Principle 2Make sure that they are not complicit in human right abuses.

Human Capital

85

Principle 3

Business should uphold the freedom of association and the effective
recognition of the right to collective bargaining

Human Capital83

Principle 4

The elimination of all forms of forced and compulsory labour.

Human Capital

85, 148

Principle 5

The effective abolition of child labour

Human Capital

85, 137, 148

Principle 6

The elimination of discrimination in respect of employment andoccupation.

Human Capital

70, 85

Principle 7

Business should support a precautionary approach to environmental
challenges.

Natural Capital,
Building Resilience

35-39, 101

Principle 8

Undertake initiatives to promote greater environmental
responsibility.

Natural Capital100

96, 97, 100

Biodiversity
GRI 3:
Material Topics
2021

3-3 Management of material
topics126, 127 (Sustainable miningSafeguarding biodiversity)

-

-

-

-

GRI 304:
Biodiversity 2016

304-1 Operational sites owned,
leased, managed in, or adjacentto, protected areas and areas ofhigh biodiversity value outside
protected areas

126 (Sustainable mining)

-

-

-

-

304-2 Significant impacts ofactivities, products and services
on biodiversity

126 (Sustainable mining)304-3 Habitats protected or
restored

127, 128 (Sustainable miningSafeguarding biodiversity)

-

-

-

-

304-4 IUCN Red List species
and national conservation list
species with habitats in areas
affected by operations

127 (Sustainable miningSafeguarding biodiversity)

-

-

-

-

GRI 3:
Material Topics
2021

3-3 Management of material
topicsStatutory Reports and Financial
Statements

-

-

-

-

Principle 9

Encourage the development and diffusion of environmentallyfriendly technologies.

Intellectual Capital,
Natural Capital

GRI 207:
Tax 2019

207-1 Approach to tax

Statutory Reports and Financial
Statements

-

-

-

-

Principle 10

Business should work against corruption in all its forms,
including extortion and bribery.

Corporate Governance Corporate Governance207-2 Tax governance, control,
and risk management

Statutory Reports and Financial
Statements

-

-

-

-

207-3 Stakeholder engagement
and management of concerns
related to tax

Statutory Reports and Financial
Statements

-

-

-

-

207-4 Country-by-country
reportingStatutory Reports and Financial
Statements

-

-

-

-

-

-

-

-

Tax

All our policies are available at https://www.hindalco.com/investor-centre/policies

158

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

159

Corporate Overview

Sustainable Development Goal

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Sustainability AccountingStandards Board (SASB)

Sustainable Development Goal (SDG)

Section in the report

Page number

SDG 2 Zero Hunger

Social and Relationship Capital133

SDG 3 Good health and wellbeing

Social and Relationship Capital133

SDG 4 Quality Education

Human CapitalSocial and Relationship Capital77, 134

SDG 5 Gender equality

Human CapitalSocial and Relationship Capital

74, 80, 81, 137

SDG 6 Clean Water and Sanitation

Natural CapitalSocial and Relationship Capital

118, 140, 141

SDG 7 Affordable and Clean Energy

Natural Capital

SDG 8 Decent work and Economic Growth

SDG 9 Industry Innovation and Infrastructure

Table 1. Sustainability Disclosure Topics & Accounting Metrics
Topic

Accounting Metric

Code

Location

Greenhouse Gas Emissions

Gross global Scope 1 emissions, percentage
covered under emissions-limiting regulations

EM-MM-110a.1

105 (Emission Management)

Discussion of long-term and short-term
strategy or plan to manage Scope 1 emissions,emissions reduction targets, and an analysis ofperformance against those targets

EM-MM-110a.2

105 (Emission Management)

Air Quality

Air emissions of the following pollutants: (1) CO, EM-MM-120a.1(2) NOx (excluding N2O), (3) SOx, (4) particulatematter (PM10), (5) mercury (Hg), (6) lead (Pb),and (7) volatile organic compounds (VOCs)

106, 107 (Stack Emissions)

103

Energy Management(1) Total energy consumed, (2) percentage gridelectricity, (3) percentage renewable

EM-MM-130a.1

103 (Energy Consumption)

Financial Capital
Manufactured Capital
Human CapitalSocial and Relationship Capital

47, 63, 83, 138, 139

Water Management(1) Total fresh water withdrawn, (2) total fresh
water consumed, percentage of each in regionswith High or Extremely High Baseline Water
Stress

EM-MM-140a.1

118, 119 (Securing Water)

Manufactured CapitalIntellectual Capital
Natural CapitalSocial and Relationship Capital

63, 94, 100,140

Number of incidents of non-complianceassociated with water quality permits,standards, and regulations

EM-MM-140a.2

122 (Effluent Management)

Total weight of non-mineral waste generated

EM-MM-150a.4

114 (Non-Hazardous Waste)

Total weight of tailings produced

EM-MM-150a.5

116 (Maximising Circularity)

Total weight of hazardous waste generated

EM-MM-150a.7

115 (Hazardous Waste)

Waste & Hazardous
Materials Management

Human CapitalSocial and Relationship Capital

80, 84, 137

SDG 11 Sustainable Cities and Communities

Social and Relationship Capital

140, 141

Total weight of hazardous waste recycled

EM-MM-150a.8

115 (Hazardous Waste)

SDG 12 Responsible Consumption and Production

Manufactured CapitalIntellectual capital
Natural Capital

66, 94, 112

Number of significant incidents associated withhazardous materials and waste management

EM-MM-150a.9

NIL

EM-MM150a.10

115 (Hazardous Waste)

SDG 13 Climate Action

Natural Capital

102

Description of waste and hazardous materials
management policies and procedures for active
and inactive operations

127, 128 (Safeguarding Biodiversity)

Natural Capital

127

Description of environmental management
policies and practices for active sites

EM-MM-160a.1

SDG 15 Life on Land
SDG 16 Peace, Justice and Strong Institutions

Social and Relationship Capital

137

Percentage of (1) proved and (2) probablereserves in or near sites with protectedconservation status or endangered species
habitat

EM-MM-160a.3

127, 128 (Safeguarding Biodiversity)

Percentage of (1) proved and (2) probablereserves in or near areas of conflict

EM-MM-210a.1

85 (Human Rights)

Percentage of (1) proved and (2) probablereserves in or near indigenous land

EM-MM-210a.2

85 (Protecting Indigenous
Communities)

SDG 10 Reduced inequality

Biodiversity Impacts

Security, Human Rights& Rights of Indigenous
Peoples

Discussion of engagement processes and due
diligence practices with respect to human rights,
EM-MM-210a.3
indigenous rights, and operation in areas ofconflict160

HINDALCO INDUSTRIES LIMITED

85 (Human Rights)

Integrated Annual Report 2021-22

161

Sustainability Accounting Standards Board (SASB)
Topic

Accounting Metric

Code

Location

Community Relations

Discussion of process to manage risks andopportunities associated with community rights
and interests

EM-MM-210b.1

85 (Human Rights)

Labor Relations

Percentage of active workforce covered undercollective bargaining agreements, broken down
by U.S. and foreign employees

EM-MM-310a.1

83 (Employee Well Being andHuman Rights)

Workforce Health & Safety(1) MSHA all-incidence rate, (2) fatality rate, (3)near miss frequency rate (NMFR) and (4) average
hours of health, safety, and emergency response EM-MM-320a.1
training for (a) full-time employees and (b)contract employees

88 (Occupational Health and
Safety)Business Ethics &Transparency

Description of the management system forprevention of corruption and bribery throughout EM-MM-510a.1
the value chain

Corporate Governance Report

Table 2. Activity Metrics
Activity Metric

Code

Location

Production of (1) metal ores and (2) finishedmetal products

EM-MM-000.A

56 (Production Capacity)

Total number of employees, percentage
contractors

EM-MM-000.B

72 (Organisation EffectivenessEmployee Strength)

Note: The BRSR content index can be found in the later section of this report.

162

HINDALCO INDUSTRIES LIMITED

Middelfart Savings Bank in Denmark built using pre-painted
Novelis aluminum ff2® and FALZONAL® for the façade cladding and roofing

Management Discussion & Analysis
Hindalco Industries Limited, the metals flagship of the Aditya
Birla Group, is the world’s largest aluminium rolling andrecycling company, a major copper player and one of Asia’s
largest producers of primary aluminium. Hindalco was named
the world’s Most Sustainable Aluminium Company in the Dow
Jones Sustainability Indices (DJSI) in 2020 and 2021.

In India, Hindalco’s aluminium manufacturing units comprisethe full value chain, from bauxite mining, alumina refining, coalmining, captive power generation and aluminium smelting todownstream value addition of Aluminium rolling, extruding
and foil making. Hindalco’s copper facility in India comprises
a world-class custom copper smelter at a single location withdownstream facilities, a fertiliser plant and a captive jetty.
Hindalco is one of the largest suppliers of Copper to the IndianRailways.

FY2021-22: Key Highlights
Consolidated`1,95,059 CR ( 48%)
Revenue`30,056^ CR ( 59%)
EBITDA`13,730 CR ( 294%)
PAT

Novelis

US$530 BN

3,858 KT

Overall shipments

Record Yearly adjusted
EBITDA/ton

US$2.045 BN ( 19%)

Record Adjusted EBITDA (excluding metal price lag)

US$1,018 BN ( 122%)

Record Net Income from continuing operations

India Business

1,294 KT 1,302 KT 3,235* KT
Aluminium metal
production

Aluminium
metal sales

359 KT

405 KT

Copper Cathodeproduction

Alumina
production

Copper Metal
Sales

Guided by its purpose of building a greener, stronger,
smarter world, Hindalco provides innovative solutions fora sustainable planet. Today, Hindalco’s global footprintspans 50 manufacturing units across 10 countries. Its whollyowned subsidiary Novelis is the world’s largest producer ofaluminium beverage can stock and the largest recycler of usedbeverage cans (UBCs). Novelis provides innovative solutions
to its customers in the beverage cans, automobile, aerospaceand high-end speciality markets such as foil packaging,certain transportation products, architectural, industrial, andconsumer durables. Novelis operates an integrated networkof technically advanced rolling and recycling facilities acrossNorth America, South America, Europe and Asia. Novelis, which
has recycling operations in 15 operating facilities across theworld, recycles over 82 Billion cans a year, enough to circle theglobe more than 160 times.
In FY2021-22, the Company delivered its best financial andoperational performance, reporting its highest ever profits.
This stellar showing was driven by favourable macros, higher
volumes, strategic product mix, lower input costs, stability
in operations and improved performance of downstream
business in India and overseas. Novelis reported its best-everadjusted EBITDA, adjusted EBITDA per ton, overall shipments
and Net Income in FY2021-22. On a consolidated basis,
Hindalco continued to maintain its strong balance sheet in
FY2021-22, resulting in a 1.36x Net Debt-to-EBITDA of at theend of the year against 2.59x in the previous year.

82 BN

Total cans recycled in
FY2021-22

Aluminium value-added products (VAP)349 KT
Production

348 KT
Sales

Copper value-added product (Copper Rods)

259 KT
Production

262 KT
Sales* includes Utkal, the wholly-owned subsidiary;^ Exceptional Income / (Expenses) for the ended 31 March 2022 exclude `418
Crore which represents the principal portion of (a) PIS/COFINS related
tax credit income in Brazil of `358 Crore (net of litigation cost of `9 Crore)and (b) tax rebates for sales to Manaus, Brazilian Free Trade Zone and`60 Crore, as it is included in the results of Novelis segment (part of EBITDA).

Integrated Annual Report 2021-22

165

Corporate Overview

Strategic Overview

Our Capitals

Financial Statements

Statutory Reports

Management Discussion & Analysis

Novelis‘ acquisition of Aleris in 2020 has been highly accretive
in terms of market positioning and synergies. Novelis has
identified more than $220 Million in synergies, exceeding
its original estimate at time of acquisition of achieving
approximately $150 Million. Through 31st March, 2022, Novelis
has achieved $112 Million of run rate cost synergies.
Novelis remains committed to all its organic growth expansion
projects. Novelis launched a multi-year strategy to transformand improve the profitability its business through significant
investment in new capacity and capabilities. Future investment
opportunities in new capacities and facilities, between FY2023
and FY2027, is expected to be more than $4.5 Billion, fundedby stable cash flow generation. These new facilities in US,

166

HINDALCO INDUSTRIES LIMITEDIn CY2021, the global economy witnessed a post pandemic
rebound to 6.1%. In CY2021, the Global Production of
Aluminium grew 4% yoy to 67.4 Million MT while global
consumption rebounded sharply by 10% to ~69 Million MT due
to pent up demand. Hence, global markets were in deficit of~1.6 Million MT in CY2021. On a region-wise split in CY2021,
production in China increased by 5% yoy to 38.5 Million MT led
by increases in Yunnan, Inner Mongolia, and Henan. Aluminium
intake in China was primarily driven by a sharp increase indemand for electric vehicles and solar. The demand Aluminium
in China was subdued in the building and construction andauto segments. Hence, overall consumption in China grew by~6% to ~40 Million MT in CY2021 resulting in a market deficitof ~1.6 Million MT. In the Rest of the World, production grew by
3% yoy to ~29 Million MT led by production increase in Middle
East, Central & South America and India. Low base effect andsolid demand from packaging segment helped consumption
rebound by 14% yoy to 29 Million MT. Hence, the ROW markets
were balanced.
As the Global markets remained in deficit, the inventory
levels continued to decline from 11 Million MT to 9.4 Million
MT. In CY2021, the prices averaged at $2,480 as against$ 1,704 in CY2020. In Q1 CY2022, the global aluminium prices
continued to grow to $3,280/ton. The rally in aluminium prices
in Q1 CY2022 was driven by Russia-Ukraine geopolitics anddepleting global inventories.

37

39

29

28

28

28
36

27
36

32

35

CY20

CY21

29

Global Aluminium Prices ($/MT)

25

28

29

Primary Consumption (in Million MT)

2,480
1,969

CY16
China

CY17

CY18

CY19

CY20

1,605

CY15

CY16

1,792

1,704

CY21

World Excluding China

Table 1: Global Production and Consumption(in Million MT)
In Million MT
Production
Consumption
Surplus

1,661

2,111

40

Aluminium Segment and Industry Review

CY19

38

1.1

CY18

36

Industry analysis

CY17World Excluding China

36

1.

CY16
China

29

Through LEAD (Leverage, Efficient, Augment and Digital
Savvy), Hindalco’s digital transformation initiative, we aretrying to arm our employees with the analytics and insights totake decisions with speed and confidence. LEAD will help us
capture benefits across the entire manufacturing value chain—increasing production capacity, reducing material losses,
improving customer service and delivery times and reducing
environmental impact. These gains are expected to strengthen
Hindalco’s competitive position.

34

In line with its growth strategy of organic expansions,Hindalco has recently announced investments in Downstream
and Upstream spread over next five years in the businessesof Aluminium, Copper, Specialty Alumina and Resource
Securitisation through new commercial coal mines between
FY23 and FY27. These investments are expected to be in therange of $3.0-$3.3 Billion, though certain projects are underappraisal. These investments are mainly targeted towards
downstream capacity expansions in Aluminium, Copper andSpecialty Alumina to cater the growing demand in domestic
markets. The Company’s intent is to build a larger value-added
product portfolio over the next few years. This investment
indicates confidence in the economic revival, which will raisethe demand for downstream value-added products.

Hindalco retained its position as the Aluminium Industry Leader
for its sustainability performance in the 2021 edition of the S&P
Dow Jones Sustainability Indices (DJSI) Corporate Sustainability
Assessment (CSA). Industry Leaders are the top-performing
companies in the Index. Hindalco was again featured in the
S&P Global Gold Class category as ‘Sustainability Leaders of2022’ in the Dow Jones Sustainability Yearbook 2022.

32

Hindalco sustainable business model and the downstream
strategy of product expansion in India will nearly double its
existing downstream capacity in the next five to six years.
Hindalco has recently completed acquisitions of Hydro’s
Kuppam Extrusions facility in India and Copper CCR facilityof Polycab (Ryker Base) expanding overall capacities in thevalue‑added segment during the year. In FY2021-22, Utkal
Aumina refinery successfully completed expansion via
debottlenecking of 500 kt taking its total capacity to 2.1 Million
MT. Further debottlenecking is planned at Utkal Alumina
by 350 kt to take the capacity to around 2.5 Million MT by
FY 2023-24.

Primary Production (in Million MT)

27

Hindalco India has taken several cost optimisation initiatives
across the value chain to improve efficiency and reduce
the overall cost of production at all its facilities. The Utkal
Expansion providing low-cost alumina, better coal mix andoperational efficiencies has helped the Company to reduce
it cost of production. As a result, Utkal Alumina continues
to remain in the first quartile of the global cost curve in
FY 2021‑22.

China, South Korea, Germany, and Brazil will cater to theentire portfolio of offerings. Of the estimated range of total
investments, ~USD 3 Billion is expected to be invested in
the US.

28

Key initiatives during the year

CY2019
63.3
64.6
-1.4

CY2020
64.7
62.9
1.8

CY2021
67.4
69.0
-1.6

CY17

CY18

CY19

CY20

CY21

Table 2 : Sector Wise Domestic Consumption for
FY2019-20 vs FY2021-22 and FY2020-21 vs FY2021-22
Growth (%)
Sector

The average value of premiums was also volatile. By the end of
CY 2021, Spot Main Japanese Port (MJP), European Rotterdam
Ingot duty and US Midwest premium was $156/t, $268/t and$ 27 cents/lb, respectively versus $86/t, $129/t and $12 Cents/
lb, respectively in CY 2020.

ElectricalAs economic activity resumed, domestic consumption
saw significant improvement across all sectors over theyear. Domestic consumption is likely to grow by 15% yoy in
FY 2021‑22 and 6% over Pre-COVID levels. Imports continue tobe a concern for domestic players. Overall imports, including
scrap, touched ~2.3 Mt in FY2021-22 from ~2.1 Mt in FY2020-21.

FY2021-22 vs.
FY2020-21

FY2021-22 vs.
FY2019-20

0 to 10%-15 to -5%

Building and construction

20 to 30%

-5 to 5%Auto

20 to 30%

5 to 15%

5 to15%20 to 30%Print

30 to 40%

-20 to -30%

Packaging

10 to 20%

10 to 20%

Consumer Durables

15 to 25%

15 to 25%

Others0 to 10%0 to 10%15%

6%

Industrial and Defence

Overall India Consumption
Source: Company Estimates

Integrated Annual Report 2021-22

167

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Management Discussion & Analysis
1.1.1 Outlook:
Global growth is likely to moderate to 3.6% in CY2022 from
6.1% in CY2021. War-induced commodity price increases andbroadening price pressures have led to CY 2022 inflation
projections of 5.7% in advanced economies and 8.7% inemerging market and developing economies. Overall, in CY
2022, primary demand is likely to grow by 1% to ~69 Million
MT. Production is expected to be around ~70 Million MT. Hencethe market is likely to be balanced. Production in the world
excluding China is expected to increase by ~1% to ~29 Million
MT. Primary aluminium supply in China is likely to grow by 5%
to ~40 Million MT. Consequently, the inventories are likely toremain stable at 9.0 Million MT by the end of CY2022.

scrap, continue to remain a major concern for domestic
aluminium producers. Over the last few years the domesticrolled and foil products industries have been hit by increased
dumping of imports, especially from China and FTA countries.
Some of this has been countered through ‘trade remedial
measures’ to combat the surge of imports.

1.2 Copper - Industry Review & Outlook
In CY2021, on a yearly basis, refined copper consumption
globally saw an increase of 6% to 24.4 Million MT against
23.0 Million MT in CY2020. Copper intake in China grew by 5%,
whereas in the World Ex China, it increased by 7%.

Demand Drivers for World Ex China

Construction

Stable residential demand in key region
and re-opening of economies post COVIDrelated lockdown.

14.0

Government provides purchase incentives tothe buyers of electric vehicles

Substitution against PET bottles in Europe
and North America. Aluminium Beveragecans replacing PET and glass bottles.

Packaging
Foil stock

13.9

Transport

China Outlook:

Reducing loan prime rate to support demand

Packaging

Stable demand from food andpharmaceutical sectors

Foil Stock
ElectricalState grid to build "24 AC and 14 DC" Ultra
High Voltage projects involving >30,000 km
transmission lines

Consumer
DurablesStrong domestic and export demand

Machinery &Equipment

Good industrial production and investment
growth to support growth

CY20

CY21

Refined Copper Consumption

The domestic market is likely to see a broad-base recovery
across all sectors. Imports of aluminium products, including

China
CY20

168

HINDALCO INDUSTRIES LIMITEDWorld Ex

CY21

11.1

Construction

China

10.4

Transport

Significant aluminium demand over the next
3 years due to rising sales of EVs (auto body
sheet, battery foil). Light weighting supported
by stringent national emission standards andachieve dual control target.

13.3

Demand Drivers

12.7

China

Global demand for refined copper is expected to increase by~2.4% in CY 2022. China is expected to grow by ~2.1% andthe rest of world is expected to grow by ~2.8%. Demand for
Refined Copper in India is likely to improve and recover topre‑COVID levels in FY2022-23 of 750kt.
In the medium-term, the risks to mine supply have increased
due to several factors, including western sanctions on Russia
which will probably hit the development of mine projects in thatcountry, increased social conflict in Peru and continued regulatory
uncertainty in Chile. At the same time, China will continue to invest
in new smelter capacity, though at a reduced scale. COVID-19
related lockdowns in China disrupting manufacturing activities
will be a passive factor in the supply-demand trend.

10.4

Demand Drivers

The CY 2022 Annual Tc/Rc benchmark was finalised at 65/6.5(16.7 c/lb), which is a 9% improvement over the CY 2021
benchmark of 59.5/5.95 (15.26 c/lb). With the ramp-up of
key large-scale mining projects and new mines like QB2 &Quellaveco getting operational in CY 2022, the concentrate
market is looking at a likely surplus of ~250 kt in CY 2022
against a deficit of ~ 299 kt during CY 2021, which should allow
spot Tc/Rc terms to recover. Accordingly, Tc/Rc is expected to
improve for the rest of this year as well as next year.

1.2.1 Outlook

Refined Copper Production

9.5

World Ex China

On a yearly basis, domestic market demand increased by 8% to612 kt in FY2021-22 from 567 kt in FY2020-21. The market shareof imports declined 5% to 26% (157 kt) in FY2021-22 from 31%(178 kt) in FY2020-21.

World Ex

1.3 Novelis – Global FRP Industry Review and
Outlook
The global demand for aluminium and rolled products
remains strong, driven by economic growth, material
substitution and sustainability considerations including
increased environmental awareness around polyethylene
terephthalate plastics. Although the early months of FY2021
were negatively impacted by a short-term reduction indemand for aluminium rolled products particularly in theautomotive and aerospace markets, pandemic-related demand
disruptions have since been in check. However, it is difficult topredict impacts of the ongoing pandemic on future demand.
Economic growth, material substitution, and sustainability
considerations including increased environmental awarenessaround polyethylene terephthalate (PET) plastics continue tosupport long-term increasing global demand for aluminium
and rolled products.
Except for China, where can sheet overcapacity and strong
competition remains, favourable market conditions andincreasing customer preference for sustainable packaging
options is driving higher demand for recyclable aluminium
beverage cans and bottles.

Demand for aluminium automotive sheet began to be
impacted by the semiconductor shortage in the automotive
industry at the start of FY2022, and we expect uneven demand
to continue in the CY2022. The demand for auto sheets has
been primarily driven by the benefits that result from using
lightweight aluminium in vehicle structures and components,
as automakers respond to stricter government regulations
regarding emissions and fuel economy, while maintaining or
improving vehicle safety and performance. We are also seeing
increased demand for aluminium for electric vehicles as themetal’s lighter weight can result in extended battery range.
The long-term demand for building and construction and otherspecialty products is expected to grow on account of increased
customer preference for lightweight, sustainable materials.
The requirement for aluminium plates in Asia is set to grow,driven by the development and expansion of industries serving
aerospace, rail and other technically demanding applications.
Aerospace demand which was muted in FY2021-22 due topandemic-induced air travel restrictions, intake is expected to
improve to pre-COVID levels by the end of fiscal 2023. In thelonger-term, significant aircraft industry order backlogs for
key OEMs, including Airbus and Boeing, would translate into
growth and our multi-year supply agreements have positioned
us to benefit from future demand.
Novelis experienced some inflationary cost pressures in
FY2021-22 resulting from global supply chain disruptions
impacting the availability and price of materials and services
including freight, energy, coatings and alloys. Rising geopolitical instability, which had aggravated inflationary costpressures in the fourth quarter of FY2021-22, are expected tocontinue in the foreseeable future. Novelis is well positioned
to maintain current production levels and service its customers
without disruptions in the near term. While Novelis’ near-term
results are being negatively impacted by higher input costs, it
has been able to mitigate some of it through a combination ofhedging, cost passthrough to customers, favourable pricing
environments and increased recycling benefits.
For a region-wise detailed business overview, please refer to the 10K filed by
Novelis Inc. dated May 11th , 2022 for the year ended March 31, 2022.

Integrated Annual Report 2021-22

169

Corporate Overview

Strategic Overview

Our Capitals

Financial Statements

Statutory Reports

Management Discussion & Analysis
2.

Business Segment Review

Copper

2.1 Hindalco – SWOT Analysis
India Aluminium
Strengths

Weakness

Opportunities

Threats•

 ully Integrated business
F
model

•

 ommodity productC(upstream)••L ME, Forex and raw material
price volatility•

 ominant player in India
D
across upstream anddownstream•

 maller market share in
S
Extrusions and Foils•

 ompetition from China inCthe downstream•

 tkal - among the world’sUmost economical andefficient Alumina producers;
with capacity expansion of
500 kt Utkal capacity reached
2.1 Mt in FY2021-22•

 pstream business linked toU
LME volatility•

Rising imports of scrap•I ncreasing imports of
VAP from the Free Trade
Agreement (FTA) countries.

• omestic availability/
Dshortage of resources(mainly coal)

•

•

•

•

I ncreased focused on Value
Added Products (VAP) willlead the company to bedelinked from LME• arket leadership in Flat
M
Rolled Products•

I mmense headroom for a
growing market in India;
Per Capita Aluminium
consumption in India at 1/4thof global average ising Aluminium
R
Consumption in the end use
segments like Building &Construction, Automotive,
Packaging, and Consumer
Durables ubstitution opportunity
S
versus steel, uPVC, wood,among others.

Strengths

Weakness

Opportunities

Threats

•

•

•

•

Mine Disruptions•

 uties & Free Trade
D
Agreement and trade politics

 balanced portfolio ofA
revenue streams to tide
through volatile market•

 ecured concentrate supplyS
via long-term contracts withminers• ocus on VAP like CopperF
Rods and Inner Grooved
Tubes (IGT)Dependence on imported
Copper concentrate

2.2 Operational Performance and Financial Review
Financial Table: Standalone & Consolidated

Revenue from Operations

Light-weighting initiatives
in commercial vehicles,
personal mobility, etc.
leading to a higher Aluminium
adoption in the country.

Novelis*15,22912,727

 LI scheme for White GoodsP
and proactive trade measuresby the Government to help inimport substitution.

Aluminium (Including Utkal)

13,025

5,441

Copper (Including DHIL)

1,390

869

26

26

Unallocable Income/(Expense) - (Net) & GAAP Adjustments

386

(167)

Total EBITDA

11,8284,884

30,056

18,896

Depreciation & Amortisation (including impairment)

1,847

1,848

6,884

6,766

Finance Cost

1,417

1,469

3,768

3,738

Earning before Exceptional Items, Tax & Share in Profit/(Loss) in Equity
accounted Investments

8,564

1,567

19,404

8,392

Opportunities

Threats•

 ey end markets - Can andK
Auto - growing faster thanGDP growth due to strong
recycling and sustainability
value proposition offered by
Aluminum• upply chain disruption andShigh cost inflation•

Earning before Exceptional Items and Tax

 uild on existingBsustainability leadershipby expanding recycling
capabilities eo-political instability,G
increasing tariffs,
protectionist measures andcybersecurity risks•I ncreasing competition for
scrap input materials•

 bility to grow pricing inAcapacity constrained and highgrowth end markets

•

•

170

 arket leader in a moreM
recession resistant beverage
packaging end-market

L ong-term contracts whileproviding volume stability
but create time lag between
inflation and ability to pass
on higher costs to customers

L eading recycling capabilities
with ~60% recycled content
and growing hence driving
sustainability and providing
cost competitiveness

HINDALCO INDUSTRIES LIMITED••

 igitalising the value chain,Dincluding implementing a‘Plant of the Future’ operating
model to drive efficiency
gains and overall operational
excellence

42,701Other Segments••

67,653

Consolidated
FY2021-22
FY2020-21
1,32,008

Weakness ery stable customer baseVlocked in long-term contracts

HIL Standalone
FY2021-22
FY2020-21

1,95,059••(` Crore)

Earning Before Interest, Tax and Depreciation (EBITDA)

Strengths

 apacity constrained nextC
2-3 years until capacity
expansion projects underway
are complete trong Demand ofS
Copper particularly in the
EV segments

Description

Novelis iverse, high-value productD
portfolio with unmatched
global presence and scale•

Immense headroom for
growth due to lower
consumption vs global
average

Share in Profit/(Loss) in Equity Accounted Investments (Net of Tax)

-

-

6

5

8,564

1,567

19,410

8,397

(107)

7

164

(492)

Profit Before Tax (After Exceptional Items)

8,457

1,574

19,574

7,905

Tax Expense

2,950

581

5,373

2,723

Profit/(Loss) from Continuing Operations

5,507

993

14,201

5,182

Exceptional Income/(Expenses) (Net)#

Profit/(Loss) from Discontinued Operations
Profit/(Loss) After Tax

-

-

(471)

(1,699)

5,507

993

13,730

3,483* As per US GAAP#P
 ertians to the Consolidated Exceptional Income / (Expenses) for the year ended March 31, 2022, `418 Crore, which represents the principal portion of (a)PIS/COFINS related tax credit income in Brazil of `358 Crore (net of litigation cost of `9 Crore) for FY22 and (b) tax rebates for sales to Manaus, Brazilian
Free Trade Zone `60 Crore for FY22, as it is included in the results of Novelis segment.

Integrated Annual Report 2021-22

171

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Management Discussion & Analysis
The graphs show the trend of total alumina production andaluminium production and sales in last five years:

Alumina Production (in Million MT)

The overall metal sales in all forms were at 1.302 Million MT in
FY2021-22 against 1.250 Million MT in FY2020-21, up by 4% yoyon account of market recovery and higher value-added sales in
FY2021-22. Production of VAP was higher by 30% yoy, at 349 kt
in FY2021-22 vs 269 kt in FY2021-22.

Metal Production (in Million MT)

FY19

FY20

1.7

2.0

1.2

1.0

2.7
1.6

1.1

1.3
1.6

1.5

FY21

Copper segment revenue for FY2021-22 was at `36,723* Crore(vs. `22,446* Crore in FY2020-21), up 64% on account of higher
global prices of copper and higher volumes in this financial
year. EBITDA was at `1,390 Crore (vs. `869 Crore in FY2020-21)
up 60% yoy, on account of higher volumes, better operational
efficiency and improved by-product realisations in FY2021-22.

FY22

Total copper metal sales were at 405 kt in FY2021-22 up by
29% compared to 313 kt in the previous year in line with better
production and market demand. The sales of Copper VAP(Copper Rods) were up by 13% at 262 kt in FY2021-22 versus
233 kt in the previous year. The share of VAP (CC Rods) to total
metal sales was 64% in FY2021-22, from 74% in the previous year.

FY20

FY21

243
164

FY22

FY18

FY19

FY20

FY21

FY22

FY18

FY19

FY20

FY21

FY22

405

Copper Metal Sales in all forms (kt)

313

139%

FY19

359

57%

5,441

EBITDA

60%

359
262

FY18

Metal Sales in All Forms (in Million MT)

407

20,51813,025

64%

869

FY22

1.30

32,169

EBITDA

22,446

1,390

Copper VAP - CC Rod Sales (kt)

321

347
FY21

1.25

Revenue

36,723

262

FY20

1.29

% Change% Change

233

1.31

FY19

1.30

FY2020-21

Revenue

410

1.29

FY18

1.23

1.29

Cathode Production (kt)

1.27

FY2021-22

FY2020-21

The graphs show the trend of total cathode production and Copper Metal and Value Added (CC Rods) sales volume
in the last five years:*The above numbers are without elimination of Inter-segment revenue.

Description

FY2021-22

Other Refineries of Hindalco

Aluminium(` Crore)(` Crore)

Description

On 3rd November, 2021 Hindalco acquired Ryker Base Pvt Ltd(Ryker), a 225 kt copper rod manufacturing facility of PolycabLtd., taking the total capacity of CCR to around 540 kt currently.

2.2.2 Financial Overview
Revenue for Hindalco’s aluminium segment was up 57%,
rising to `32,169* Crore in FY2021-22 from `20,518* Crore
in FY2020‑21 on account of higher global aluminium prices.
EBITDA was up 139% at an all-time high of `13,025 Crore versus`5,441 Crore a year earlier on account of favourable macros,
higher volumes, better operational efficiencies and improved
performance of downstream business offset by higher input
costs. The EBITDA margins were at 40.5% in FY2021-22, one of
the best in the industry.

*The above numbers are without elimination of Inter-segment revenue

257

Utkal

2.7

2.9
1.4

2.9
FY18

2.3.1 Operational Overview
Copper smelters ran optimally during FY2021-22 and delivered
consistent production. The copper cathode production was
359 kt in FY2021-22, up 37% against the previous year. Copper
rod production was at 259 kt in FY2021-22 versus 235 kt in
FY2020-21.

3.2

The Company delivered a strong financial and operational
performance in its aluminium business in FY2021-22
primarily due to favourable macros, higher volumes, better
operational efficiencies and improved performance ofdownstream business despite headwinds from higher input
costs. The production of aluminium stood at 1.294 Million MT
in FY 2021-22 versus 1.229 Million MT in the corresponding
year. The overall alumina production stood at 3.235 Million
MT versus 2.699 Million MT in FY2020-21. This includes the
additional volumes from 500 kt brownfield Utkal Expansion,commissioned during the second half of FY2021‑22. Utkal
Alumina recorded production of 2.048 Million MT in FY2021‑22and continues to be the most economical and efficient alumina
producer globally, running at maximum capacity to produce
2.1 Million MT of world-class alumina and providing strong
support to most of Hindalco’s India smelting facilities, leading
to better cost optimisation and quality input (alumina).

2.3.2 Financial Overview

1.29

2.2.1 Operational Overview – Aluminium

2.3 Copper Business Review

335

Hindalco Aluminium Business Review

Note: In the consolidated financial statements, within the aluminium segment,
the significant entities are Hindalco and Utkal Alumina International Ltd. Utkal
Alumina is a wholly-owned subsidiary of Hindalco and supplies a substantial
quantity of its production to Hindalco hence we have analyzed the combined
performance of Hindalco’s aluminium business along with Utkal Alumina.

FY18

172

HINDALCO INDUSTRIES LIMITED

FY19

FY20

FY21

FY22

Integrated Annual Report 2021-22

173

Management Discussion & Analysis

FY19

474
3,613

450
FY20

FY21

FY22

Adjusted EBITDA per ton

FY2020-21% Change

Revenue

17,14912,27640%

Adjusted EBITDA

2,045

1,714

19%

934

561

66%

Net Income/ (loss) w/o
Exceptional Item*HINDALCO INDUSTRIES LIMITED

Aluminium

CopperCopperNovelisConsolidated Revenue (` Crore)

FY19

FY20

5

NovelisConsolidated EBITDA (` Crore)

FY18

FY19

FY20

*Tax-effected special items may include restructuring & impairment, metal
price lag, gain/loss on assets held for sale, loss on extinguishment of debt,
loss/gain on sale of business
FY18

174

52
Aluminium

1,32,008

FY2021-22

(%)

43

19

65

($ Million)

Description

Consolidated EBITDA split by Business: FY2021-22

16

1,18,144In FY2021-22, Novelis reported a record overall adjusted
EBITDA/MT of $530, up from $474/MT in the last year,
reflecting strong and consistent performances year after year.

Driven mainly by higher adjusted EBITDA, Net Income (without
special items) from continuing operations is up 66% yoy at$ 934 Million in FY2021-22 against $561 Million in FY2020-21.

(%)

1,30,542

Novelis operates in four key geographies: North America,
Europe, Asia and South America. In North America, in
FY‑2021‑22, total shipments were at 1,466 kt. In Europe, theCompany shipped 1,048 kt across product categories in
FY 2021‑22. In Asia, Novelis shipped 737 kt of rolled products
in FY2021-22 versus 740 kt in FY2020-21. In South America,
Novelis shipped 617 kt in FY2021-22, up from 577 kt in theprevious year.

Consolidated Revenue split by Business for FY2021-22:

30,056Novelis reported adjusted free cash flow from continuing
operations of $649 Million, after absorbing more than
$ 400 Million of increased working capital pressure fromrising aluminium prices, net of metal price lag compared with
$ 740 Million as the end of previous financial year.

Hindalco’s consolidated revenue was up 48% at `1,95,059
Crore in FY2021-22 compared to `1,32,008 Crore in FY2020‑21,
primarily driven by higher global aluminium prices andlocal market premiums. The graphs below show the split ofConsolidated Revenues by businesses in FY2021-22 and thetrend of revenues over the past five years.

Consolidated EBITDA for FY2021-22 was higher by 59% to`30,056 Crore from `18,896 Crore in the previous year. Thiswas due to higher EBITDA in the aluminium business in India
and best-ever performance by Novelis in FY2021-22. The
EBITDA margin in FY2021-22 was at 15.4% compared to 14.3%
in FY 2020-21. The graphs below show the consolidated EBITDA
split by businesses in FY2021-22 and trends over the past
five years.

18,896

Share of beverage can sheet shipments were 58% in
FY 2021‑22, automotive body sheet shipments were at
17% in FY2021-22, despite challenges on account of global
semi‑conductor chip shortages. The specialities and aerospace
shipments were 23% and 2% respectively in FY2021-22.

3.1 Revenue

3.2 EBITDA

15,536In FY2021-22, total shipments were up by 7% over the last year
to 3.858 Million MT, driven by strong demand for sustainable,
flat rolled aluminium sheet and recovery from COVID-related
production shutdowns early in the previous financial year.

Novelis’ total revenue in FY2021-22 were at $17.1 Billion, up 40%,
mainly driven by higher average global aluminium prices, local
market premiums and record shipments in every product end
market. Adjusted EBITDA stood at a record high of US$ 2.045
Billion, up 19%, on the back of higher volume, favourable
product mix and strong environment benefiting pricing,partially offset by high inflation and operational disruptions.

Consolidated Financial Statements

16,6272.4.2 Financial Overview

3.

15,025

With Novelis’ thrust on sustainability and recycled aluminium,
the share of recycled inputs was at 57% in FY2021-22. The
Company has invested significantly in recycling initiatives anddeveloped high-tech recycling capabilities over the years. Its
new 100 kt rolling, casting, and recycling expansion projects
in Pinda, Brazil commissioned during FY2021-22, added to
Novelis’ overall rolling capacity which reached 4.0 Million MT
at the end of FY2021-22.

1,95,059

Shipments

3,273

3,274

3,188
FY18

The newest NFL superstadium, SoFi Stadium,in Inglewood,
California, uses
Novelis aluminium incritical structures

1,15,820

Novelis reported its best-ever financial performance in
FY2021‑22, despite semiconductor chip shortage in automotive,
slowly reviving aerospace segment and some short-term
operational challenges in quarter four of FY2021-22. In
FY2021‑22, Novelis recorded its best-ever adjusted EBITDA
and EBITDA per ton mainly driven by its portfolio optimisation,better cost efficiency, favourable product mix, innovations,customer centricity and favourable demand for lightweight,
sustainable aluminium solutions across end markets. Novelis
leveraged its extensive recycling footprint and favourable
market conditions to utilise high levels of recycled content in its
shipments in FY 2021‑22.

381

Novelis Inc., is the global leader in flat-rolled aluminium
products and the world’s largest recycler of aluminium.
Driven by its purpose of shaping a sustainable world, Novelis
works alongside its customers to provide innovative solutions
to the beverage can, automotive, aerospace and speciality
markets (which include foil packaging, certain transportation
products, architectural, industrial, and consumer durables).
Novelis operates an integrated network of technicallyadvanced rolling and recycling facilities across North America,
South America, Europe, and Asia, and leverages its global
manufacturing and recycling footprint to consistently deliver
high-quality products around the world.

418

2.4.1 Operational Overview

530

FRP Shipments (kt) and Adjusted EBITDA per ton ($/t)

3,858

2.4 Novelis Business Review

FY21

FY22

FY21

FY22

Integrated Annual Report 2021-22

175Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Management Discussion & Analysis
Novelis’ aluminium
facades help
create striking andsustainable structuresthat last for decades

3.3 Finance Cost
Finance Cost decreased 1% and was at `3,768 Crore in
FY2021‑22 from `3,738 Crore in FY2020-21 due to lower interest
cost of long-term loans in India and refinancing of term loans
by Novelis. Novelis refinanced 5.875%, $1.5 Billion SeniorNotes due in September 2026 via 3.250%, $750 Million seniornotes due in November 2026 and a 3.875%, $750 Million seniornotes due in August 2031. The 2017 term loan of $1.8 Billion was
fully repaid by Novelis before maturity in FY2021-22.

3.4 Depreciation and Amortisation (Including net
impairment loss/(reversal) of non-current assets)
Depreciation and amortisation (including net impairment
loss/(reversal) of non-current assets) increased to `6,884
Crore in FY2021-22 from `6,766 Crore in FY2021-22 mainly on
account of capitalisation and certain reclassifications as per theaccounting standards and exchange impact.

3.8 Consolidated Net Debt to EBITDA(iv) Current Ratio

The consolidated balance sheet continued to remain strong
with the Net Debt to EBITDA at 1.36 times at the end of March2022 versus 2.59 times at the end of March 2021. (Net Debt
to EBITDA = Consolidated Business EBITDA/Consolidated
Net Debt)

The Consolidated Current/Liquidity Ratio as on 31st March,2022 stands at 1.28x versus 1.39x at the end of 31st March, 2021
reflecting the Company’s strengthening of liquidity or solvency
position compared to the last year.

3.9 Key Financial Ratios (Consolidated)

The Consolidated Debt to Equity Ratio as on 31st March, 2022
stands well below 1.0x at 0.81x versus 0.99x as on 31st March,
2021. This reflects the Company’ strong balance sheet andability to meet its current short-term obligations.

(i)

The Consolidated Debtors Turnover Days on 31st March, 2022
was 32 days compared to 31 days at the end of 31st March, 2021.
This shows consistency in managing its credit with customers
and this also reflects the Company’s strong financial position
with respect to most of its customers. The Debtor Turnover(days) is calculated as Average Debtors/Total Consolidated
Sales multiplied by 365 days.

(ii)

3.5 Exceptional Income/(Expense)
In FY2021-22, total exceptional income stands at `164 Crore
excluding `418 Crore of principal portion of PIS/COFINS related
tax credit income in Novelis Brazil (`358 Crore and net of
litigation cost of `9 Crore) and tax rebates for sales to Manaus,
Brazilian Free Trade Zone of `60 Crore included in the results ofNovelis segment.

3.6 Taxes
Provision for the tax was at `5,373 Crore in FY2021-22 against`2,723 Crore in FY2020-21. This increase in taxes was due tohigher taxes in Novelis and higher profitability of the Company
in FY2021-22.

3.7 Profit/(Loss) After Tax

Debtors Turnover (Days)

Inventory Turnover (Days)

The Consolidated Inventory Turnover Days on 31st March, 2022
was at 79 days versus 80 days at the end of 31st March, 2021.
This shows how the Company managed its inventory levels
during the year. The Inventory (days) is calculated as Average
Inventory /Cost of Goods Sold (Cost of Sales + Depreciation)
multiplied by 365 days.

(v)

Debt to Equity Ratio(vi) Return in Net Worth (RONW)The Consolidated Return on Net Worth as on 31st March, 2022
stands at 18.97% compared to 5.58% on 31st March, 2021. Thiswas higher compared to the previous year due to the higher
profits in FY2021-22. This is Calculated based on PAT/Average
Net Worth.

(vii) Operating Margins
The Consolidated Operating margins in FY2021-22 stands at
14.61% versus 13.41% in FY2020-21 reflecting higher operating
profit in FY2021-22 compared to the previous year. (Operating
Margin = Operating Profit/Net Sales).

(iii) Interest Coverage Ratio:(viii) Net Profit Margins

The Consolidated Net Interest Coverage Ratio on 31st March,

The Consolidated Net profit margins in FY2021-22 stands at
7.04% versus 2.64% in FY2020-21. This was higher on accountof higher consolidated profits recorded in FY2021-22. (Net Profit
Margin = Net Profit/Net Sales).

2022 stands at 7.87 times versus 5.06 times at the end of
31st March, 2021. This is higher over the previous year becauseof higher earnings (EBIT) and refinancing of long-term loans in
Novelis. This ratio reflects the Company’s ability and strength
to meet its interest obligations.

Profit After Tax (PAT) in FY2021-22 was at an all-time high of`13,730 Crore compared to `3,483 Crore a year ago, up 294%
yoy. The net profit margin in FY2021-22 stood at 7.04% versus
2.64% in FY2020-21. The PAT for Continuing operations for
FY2021-22 was up 174% yoy at `14,201 Crore versus `5,182 in
FY2020-21.

1.30

1.25

1.29

1.30

1.27

Metal Sales in all forms (in Million MT)

Novelis is theworld’s largest
aluminium recycler

FY18

176

HINDALCO INDUSTRIES LIMITED

FY19

FY20

FY21

FY22

Integrated Annual Report 2021-22

177

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Management Discussion & Analysis
3.10 Consolidated Cashflow:

4. Business Outlook

Cash generated from operations for Hindalco Consolidated stands at `16,838 Crore in FY2021-22 versus `17,232 Crore in FY2020-21.
The table below shows the comparative movement of Cash flows:(` Crore)

Particulars
A.

CASH FLOW FROM OPERATING ACTIVITIESOperating Cashflow before working capital changes

17,648(9,132)

1,520

Cash generated from operations before Tax

20,594

19,168(Payment)/Refund of Direct Taxes(3,773)(1,256)Net Cash generated/(used) -Operating Activities - Continuing Operations

16,821

17,91217(680)

16,83817,232(5,355)(5,517)

Disposal of Investments in Subsidiaries (Net)66-(Purchase)/Sale of Other instruments (Net)4,226(2,775)Acquisition of business, net of cash acquired(412)(19,524)

Net Cash Generated/(Used) - Operating Activities (a)CASH FLOW FROM INVESTMENT ACTIVITIESNet Capital Expenditure

Investment in equity accounted investees(1)-(6,209)(261)

Interest and dividends received

239

228

Purchase/Sale of Investment in Equity Shares at FVTOCI (Net)

363

(43)

9

10

(7,074)(27,882)-

2,245(7,074)(25,637)

Loans & Deposits (given)/received back (Net)

Lease payments received from finance lease
Net Cash Generated/(Used) - Investing Activities - Continuing Operations
Net Cash Generated/(Used) - Investing Activities - Discontinued Operations
Net Cash Generated/(Used) - Investing Activities (b)C.

29,726

Changes in working capital

Net Cash Generated/(Used) - Operating Activities - Discontinued Operations
B.

Consolidated
Year ended
31-03-2022
31-03-2021

CASH FLOW FROM FINANCING ACTIVITIES
Equity Raised/Debentures Redeemed
Treasury shares acquired & Proceeds from Shares Issued by ESOP Trust

3

-

(79)

2

Net Debt inflows/Outflows(2,772)(968)

Interest & Finance Charges paid

(3,250)(3,678)

(667)

(222)

(6,765)(4,866)-(16)

Dividend Paid (including Dividend Distribution Tax)Net Cash generated/(Used) - Financing Activities - Continuing Operations
Net Cash Generated/(Used) - Financing Activities - Discontinued Operations
Net Cash Generated/(Used) - Financing Activities (c)(6,765)(4,882)Net Increase/(decrease) in Cash and Cash Equivalents (a)+(b)+(c)2,999(13,287)

Hindalco’s relentless focus is on product innovation, better
efficiencies, complete digitalisation and organic expansions
with a diversified product mix and cost competitiveness.
Timely completion of 500 kt expansion project at Utkal
Alumina refinery is helping the company to reduce the overall
integrated cost of production. The Company continues to focus
on cash conservation while maintaining adequate liquidityand deliver sustained performance while catching up withthe market recovery. The Company’s long-term strategic
investments in Novelis and the India downstream expansion
projects will enhance its capabilities across the FRP and theExtrusion segments in India. In addition, the acquisition of
Hydro’s Kuppam Extrusions facility and Polycab’s Ryker CCR
facility in FY2021-22 is aimed at expanding its presence in theupper-end of the value-added market and further strengthen
the Company’s long-term sustainable business model.
Domestic copper demand is driven largely by rods which isthe downstream product for the copper business. Hindalco’s
strategy of enhancement of Copper VAP capacity throughCopper Rods and Copper Inner grooved tubes will help theCompany drive a larger market share and meet the growing
demand for copper in the domestic market.
Global demand for lightweight, highly recyclable aluminium
beverage packaging which is the largest share of Novelis’
shipment product portfolio, remains strong in all the regions.
Demand for aluminium sheet across specialties markets,
including electronics, electric vehicle battery enclosures,
painted products, container foil and building and construction
markets, also remains strong. While long-term demand
trends are intact, the current global semiconductor shortage
impacting the automotive industry has resulted in temporary
automotive customer shutdowns and has reduced near-term
demand for automotive aluminium sheet. In aerospace, some
improvement is seen in order bookings because of a slow anduneven recovery in demand for aerospace sheet for throughFY2022-23.
Hindalco’s strategic priorities and its capital allocation
framework which is targeted towards value enhancing organic
growth and ESG commitments will bolster the Company’s
position as the Sustainability Leader in the Industry.

5.

Price Risk Management

Hindalco’s financial performance was significantly impacted
by fluctuations in aluminium prices as well as exchange rates
and interest rates. The Company takes a structured approach
to identify, quantify and hedge such risks by using derivatives
in commodity and currency, which are driven by the Company’scomprehensive risk management policy.

178

HINDALCO INDUSTRIES LIMITED

Our initiatives and performance are detailed in the ‘Our Capitals’
section of this report.

6. Sustainability
At Hindalco sustainability is our core priority, enabling us tocreate value out of revenue streams that are planet and people
positive. Our strong commitment to ESG is proven by ourstellar showing in the DJSI CSA assessments which recognised
us as the Most Sustainable Aluminium Company in the World.
We believe in the power of collaboration and we actively
engage with stakeholders across the value chain to addresscritical sustainability issues and try to resolve them seamlessly.
This helps us gain the trust of stakeholders and allows us togrow in synergy with them.
Sustainability at Hindalco is driven at the top level by the Apex
Sustainability Committee, chaired by the Managing Director
ensuring implementation and monitoring of sustainability
initiatives across the organisation. We have task forces and
ESG SPOCs from all functions working together to bring about
positive change in the organisation. The task forces are madefor ensuring ground level implementation of environment
initiatives. There are Risk Champions to assess potential risks
including those related to ESG. The ESG SPOCs in corporate
functions take up projects to further the cause of ESG
implementation in the organisation.
We have developed a roadmap to attain net carbon neutrality
by 2050. We have already put up 100 MW of renewableenergy capacity and we plan to scale it up to 300 MW by2025. These efforts are being reinforced by various energy
efficiency projects and pilot demonstrations of technologies
in the pipeline. We are boosting freshwater conservation byaugmenting the use of water from other sources like treatedwater and rainwater. We are aiming for overall water positivity
by 2050, with a sub-target of making our downstream andmining operations water positive by 2025. Our efforts on
circularity include extracting value out of waste generated andincreasing material recycling.
We aim to be zero waste to landfill by 2030, ensuing that waste
is being put to good instead of ending up in the landfill. Our
work in protecting biodiversity, which was initiated alongside
IUCN, has led to the development of BMPs for critical sites.
These are now under implementation and will help us attainour target of no net loss by 2050. Our Sustainable Mining
Charter and KPIs for implementing the charter under seventhematic areas is another key step to make our mining verticalmore sustainable. Our subsidiary Novelis is the largest
aluminium recycler in the world.

Integrated Annual Report 2021-22

179

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Management Discussion & Analysis
A good safety culture depends heavily on the participationof line function employees. Which is why we have devised
safety taskforces and six safety sub-committees at each unit
for employees to participate in safety programmes. Eachmember of each task force and sub-committee is deemed asafety officer and contributes to the safety of the units andmines at every level.
In 2020, we completed Qualitative Exposure Assessment(QIEA) and Quantitative Exposure Assessment (QnEA) studiesof all our manufacturing facilities and mining operations.
By the end of FY2021-22, we were able to implement more than
80% of recommendations and we are making good progressin implementing the remaining recommendations that cameout of these studies.
In FY2021-22, the Company continued to offer psychologicalsafety training sessions to employees. Each unit also ran acomprehensive wellness programme recognising the value ofgood physical and mental health of employees, their families,
and the community.

On the people front, we are deeply committed to build safer
workplaces and a high performance work culture to keep
our employees motivated. Over the years we have taken
various initiatives in the area of organisation effectiveness toincrease productivity of our workforce. Mental and physicalhealth programmes have also helped our people to navigate
through these challenging times. We actively engage withlocal communities to ensure that they prosper alongside
us. We implement programmes to cater to the needs of ourcommunities in the areas of Education, Healthcare, Livelihood,
Infrastructure, and Social Reforms. We believe in inclusive
growth and deploy our resources to bring about a positive
impact on the areas we operate in and on society at large.
Details of our initiatives and performance are provided in the‘Our Capitals’ section of this report.

7.

SafetyAs a responsible corporate citizen, Hindalco is fully dedicatedto human health and safety. Our plants and mines follow
occupational health and safety management standards that
integrate occupational health, hygiene and safety responsibilities
into everyday business. A strong safety culture is required toprevent fatalities and achieve good safety performance. Withfocused efforts to further strengthen our safety culture, oursafety performance this year has been the best ever. There wasa 29% drop in loss time injuries, a 18% fall in recordable injuries
and a 53% reduction in first aid injuries. Because of this, there is
a 29% reduction in Loss Time Injuries Frequency Rate (LTIFR) andRecordable Injuries Frequency Rate. There is a 38% drop on a yoy
basis in Loss Time Injuries Severity Rate (LTIFR) in FY2021-22.

180

HINDALCO INDUSTRIES LIMITED

While there were no fatalities among Company employees,
we lost two contract workmen to work-related injuries.
We regret the loss of these valuable lives and shall continue
to strengthen our safety culture to make Hindalco a“Zero Harm” organisation.
During the year, we introduced a uniform Contractors’ Safety
Management procedure across Hindalco. The Serious Injuries
and Fatality (SIF) prevention programme, which was introduced
last year, has started showing some early promise. With
these programmes/standards, we have now nine technicalsafety standards, nine administrative safety standards and 4
occupational health standards. Our standards and procedures
provide a consistent approach to managing major hazards
across our operations. To meaningfully implement thestandards, we developed 82 new subject matter experts (SME).
This is addition to 1,166 SMEs developed over last few years.
We audit our entire operations every year against ourstandards and require our businesses to meet their health andsafety performance requirements and targets. In FY 2021-22,
all 15 manufacturing sites of Hindalco were audited virtuallyusing “Real-Ware” due to COVID. In FY2023, we carried out
physical audits.
Despite limitations on classroom safety training due to
COVID in the early part of the year, we were able to invest
more than three manhours of classroom safety training perperson (including direct employees and contract workmen)
this year also. The focus was more on-the-job training wherever
possible, as a result we invested 37% more man‑hours on
training than the previous year.

Hindalco has an active Crisis Management Plan using which theCompany ensures an appropriate response to all crisis, natural
disasters or other emergencies, including COVID-19 corporate
level at all units and mines.

8. Human Capital
Our 40,000 employees across the globe are our biggest
asset in the journey towards building a Greener, Stronger andSmarter future. In recognition of our efforts towards building a
High-Trust, High-Performance culture, Hindalco was certified asa ‘Great Place to Work’ in 2021. Hindalco was also recognised
as one of the ‘Best Employers among Nation Builders’ by theGreat Place to Work Institute in 2022.
Through employee-centric systems and processes andcapability and capacity building initiatives, we ensure theholistic development of our employees. Keeping in mind ourstrategic priority of value enhancing growth and to stay relevantin today’s fast-changing world, investing in talent development
and transforming key elements of culture has been our focus
in the past few years. Our Shillim movement, now in its fifth
edition, focuses on further strengthening a contemporary
culture that is centred around ownership, openness, inclusion,
collaboration, and meritocracy. Given the competitive job
environment, we have further strengthened our talent retention
strategy through various initiatives to retain our top best
performing employees. Our multi-pronged talent management
strategy focuses on hiring young talent, creating structured
training and development initiatives, promoting gender
diversity, and building technical and specialist capability. Ourhuman rights policy safeguards our employees and contractual

workmen against harassment and discrimination. We havemade focused efforts to enhance employee productivity
through various tailored programmes focusing on theirwellbeing. By investing in people and culture we continue toinspire our workforce to go above and beyond and deliverconsistent superior performance in the most challenging times.
Details of our initiatives and performance are provided in the ‘Our Capitals’
section of this report.

9.

Internal Controls & their Adequacy

A strong culture of internal controls is pervasive throughout theGroup. Regular internal audits at all locations are undertaken
to ensure that the highest standards of internal control
are maintained. The effectiveness of a business’ internal
control environment is a component of senior management
performance appraisals. The principal aim of the internal
control system is the management of business risks with aview to enhance shareholder value and safeguard the Group’s
assets. It provides reasonable assurance on the internal control
environment and against material misstatement or loss.
The Company has in place a robust mechanism to deal with
Internal audit that involves having a dedicated Assurance &Control function having personnel specialised in the field of
the subject and having two internal auditors duly appointed by
the Audit Committee and Board., viz. M/s. Ernst & Young for
the Aluminium Business and M/s. Suresh Surana & Associates
for the Copper business. The Audit Committee discusses audit
plans, findings and observations made by the internal auditors
at its meetings. The findings made by the internal auditors arereviewed and suggestions implemented.
Cautionary Statement
Statements in this “Management Discussion and Analysis”
describing the Company’s objectives, projections,estimates, expectations or predictions may be “forward
looking statements” within the meaning of applicablesecurities laws and regulations. Actual results could differ
materially from those expressed or implied. Importantfactors that could make a difference to the Company’s
operations include global and Indian demand supply
conditions, finished goods prices, feedstock availability
and prices, cyclical demand and pricing in the Company’s
principal markets, changes in the government regulations,tax regimes, economic developments within India
and the countries within which the Company conducts
business and other factors such as litigation and labour
negotiations. The Company assumes no responsibility
to publicly amend, modify or revise any forward looking
statements, on the basis of any subsequent development,
information events or otherwise.

Integrated Annual Report 2021-22

181

Corporate Overview

Strategic Overview

Our Capitals

Financial Statements

Statutory Reports

Financial Highlights - Consolidated(` Crore)
2021-22@2021-22 2020-21 2019-20@@@

2018-19@2017-18@

2016-17@

2015-16@

2014-152013-142012-13@@@2018-19@2017-18@

2016-17@2021-222021-22 2020-21 2019-20

2015-16

2014-152013-142012-13

29

222

222

222

222

223

223

205

207

206

191

Share Warrants

-

-

-

-

-

-

-

-

-

6

541

Equity Component of Compound Financial Instruments

1

4

4

4

4

4

4

3

-

-

-

Net Worth represented by :Profitability

US$ inMn*

Sales and Operating Revenues

26,185 195,059 131,985 118,144 130,542 115,820 102,631 101,202 106,696 90,007 82,243

Less: Cost of Sales

22,359 166,557

114,311 103,794 115,042 101,899 90,183 92,387

97,751

81,721 74,406

Operating Profit

3,826 28,502

17,674 14,350 15,500

13,921 12,448

8,815

8,944

8,286

7,837

Other Income

152

1,136

1,222

1,186

1,127

1,105

1,111

1,189

1,105

1,017

1,012

Less: Depreciation, Amortization and Impairment

924

6,884

6,766

5,135

4,766

4,607

4,469

4,507

3,591

3,553

2,861

Less: Interest and Finance Charges

506

3,768

3,738

4,197

3,778

3,911

5,742

5,134

4,178

2,702

2,079

Profit before Share in Equity Accounted Investments,
Exceptional Items and Tax

2,548 18,986

8,392

6,204

8,083

6,508

3,348

362

2,280

3,049

3,909

Share in Profit/ (Loss) in Equity Accounted Investments(Net of Tax)(` Crore)@@

Equity Share Capital
Other Equity:

Reserves and Surplus

9,731 73,860

59,717 55,577 52,599 47,644

41,770 36,443

38,122 40,393 34,597

Other Comprehensive Income

541

4,105

6,590

2,514

4,676

6,980

4,062

3,956

-

-

-

10,302

78,191

66,53358,31757,501

54,85146,05940,60738,32940,60535,330

Ratios and Statistics

Unit 2021-22@ 2020-21@ 2019-20@ 2018-19@ 2017-18@ 2016-17@ 2015-16@

2014-152013-142012-13

Operating Margin

%

14.61

13.41

12.15

11.87

12.02

12.13

8.71

8.38

9.21

9.53

%

7.04

2.64

3.19

4.21

5.25

1.85

(0.25)

0.80

2.42

3.68

Times

7.49

4.73

3.57

4.37

3.86

2.36

1.91

1.95

1.85

2.04

Times

7.87

5.06

3.70

4.40

3.84

2.36

1.95

2.41

3.44

4.26

1

6

5

4

-

(125)

(25)

172

175

67

(16)

Profit before Tax and Exceptional Items

2,549

18,992

8,397

6,208

8,083

6,383

3,323

534

2,455

3,116

3,893

Exceptional Income/(Expenses) (Net)

78

582

(492)

(284)

-

1,774

(8)

(577) (1,940)

(396)

-

2,627

19,574

7,905

5,924

8,083

8,157

3,315

(43)

515

2,720

3,893

Gross Interest Cover

721

5,373

2,723

2,157

2,588

2,074

1,433

498

256

525

886

Net Interest Cover^^

Profit/ (Loss) from Continuing Operations

1,906

14,201

5,182

3,767

5,495

6,083

1,882

(541)

258

2,195

3,007

ROCE^^^

%

16.61

9.40

8.83

10.94

9.61

8.32

5.08

5.97

5.66

7.07

Profit/ (Loss) from Discontinued Operations (Net of Tax)

(63)(471) (1,699)

-

-

-

-

(161)

-

-

-

ROE

%

18.97

5.58

6.51

9.78

12.06

4.39

(0.64)

2.16

5.73

9.00

Profit/ (Loss) before Non-Controlling Interest

1,843

13,730

3,483

3,767

5,495

6,083

1,882

(702)

258

2,195

3,007

Less: Non-Controlling Interest in Profit/ (Loss)

-

-

-

-

(1)

-

(18)

(451)

(596)

20

(20)

Basic EPS

`

61.73

15.66

16.94

24.67

27.30

9.22

(4.55)

4.14

10.91

15.81

1,843

13,730

3,483

3,767

5,496

6,083

1,900

(251)

854

2,175

3,027

Diluted EPS

`

61.65

15.65

16.93

24.66

27.29

9.22

(4.55)

4.13

10.91

15.81

Cash EPS

`

92.69

46.07

40.03

46.07

47.98

30.91

20.78

21.53

28.73

30.75

-

-

-

-

-

-

-

682

97

86

-

Capital Expenditure (Cash outflow)` Crore

5,426

5,565

6,791

6,005

3,001

2,938

4,245

5,978

9,424

11,871

1,843

13,730

3,483

3,767

5,496

6,083

1,900

(933)

757

2,089

3,027

Debt Equity Ratio

Times

0.81

0.99

1.15

0.91

0.95

1.39

1.66

1.79

1.63

1.63

` 347.86 296.07 259.56 256.07 244.33 205.32 196.64

185.61

Profit/ (Loss) before Tax from Continuing Operations
Less: Tax Expenses

Net Profit/ (Loss) for the PeriodBusiness Reconstruction Reserve (BRR) #Expenses adjusted against BRR (Net of Tax)Profit/ (Loss) for the Period had the expenses not adjusted
against BRR

Net Margin

Gross Fixed Assets (excluding CWIP)
Capital Work-in-Progress (CWIP) **22,385 169,911 157,052 140,334 130,142 25,094 121,186 123,522 101,940
651

4,945 10,202

7,721

4,098

2,063

1,814

4,214

14,111 23,059 33,834

Net Fixed Assets

14,731

Investments

1,860

Other Non-Current Assets /(Liabilities) (Net)(1,570) (11,920) (11,794) (12,407) (9,581) (8,497) (6,737) (8,859) (7,235) (6,924) (6,573)

Net Current Assets

3,612

Capital Employed

18,633 141,435 132,521 125,584 109,926 106,934 109,882 108,540 107,752 108,549 94,692

Less: Loan Funds

8,331 63,235 65,978 67,257 52,416 52,074

182

HINDALCO INDUSTRIES LIMITED

Balance Sheet items are translated at closing exchange rate and Profit and Loss items are translated at average exchange rate.

1
10,301#

Financial restructuring scheme formulated by the Company under the provisions of the Companies Act, approved by the Bombay High Court, to deal with various costs associated with
its organic and inorganic growth plan.

@

Figures for FY 2021-22, FY 2020-21, FY 2019-20, FY 2018-19, FY 2017-18, FY 2016-17 and FY 2015-16 are as per Ind AS compliant financial statements. Previous periods figures are as perPrevious GAAP financial statements.

^

Gross interest coverage ratio is calculated as Operating Profit plus Other Income divided by Interest and Finance Charges plus Finance costs transferred to Capital Work-in-Progress/
Intangible Assets under development.

29,981 26,750

22,126

111,819 110,471 96,916 89,957

87,151 86,501 89,887 86,070 84,223

71,763^^ Net interest coverage ratio is calculated as Operating Profit plus Other Income divided by Interest and Finance Charges.

14,11910,781

12,601^^^ Earnings before Interest and Taxes/ Average Capital Employed.

27,417

11

17,133

51,139 44,283 40,006 36,499 37,849

87,914 60,054

8,305 63,037 56,783

Net Worth196.67 184.53** Including Intangible assets under development.

Less: Accumulated Depreciation, Amortization andImpairment

Less: Non-Controlling Interest^^^^

Book value per Share
*

Financial Position

^

9,411

9,012

16,711 31,664 20,538

10

10

78,189 66,533

58,317

9

17,499915,157

12,438

14,961 15,074

12,346

16,571

12,961

18,289^^^^ Cash EPS is calculated as Profit/ (Loss) for the year plus Depreciation, Amortization and Impairment divided by Weighted average numbers of equity shares.

16,901

63,817 67,552 68,467 66,163 57,603
6

381

956

1,781

1,759

57,501 54,851 46,059 40,607 38,329 40,605 35,330

Integrated Annual Report 2021-22

183

Corporate Overview

Strategic Overview

Our Capitals

Financial Statements

Statutory Reports

Financial Highlights - Standalone(` Crore)
2021-22 2021-22@ 2020-21@ 2019-20@ 2018-19@ 2017-18@ 2016-17@ 2015-16@

2014-152013-14(` Crore)

2012-132021-22 2021-22@ 2020-21@ 2019-20@ 2018-19@ 2017-18@ 2016-17@ 2015-16@

US$ inMn *Sales and Operating Revenues

9,082 67,653

Less: Cost of Sales

7,566 56,360 38,467 36,578 41,503 38,322 34,569 33,367 33,453 27,609 25,866

Share Warrants

Operating Profit

1,516

11,293

4,234

3,664

4,246

5,124

4,814

3,346

3,417

2,492

2,204

Reserves and Surplus

Other Income

72

535

650

739

940

948

1,005

979

882

1,124

983

Less: Depreciation, Amortization and Impairment

248

1,847

1,848

1,708

1,693

1,617

1,428

1,282

837

823

704

Less: Interest and Finance Charges

190

1,417

1,469

1,679

1,683

1,901

2,323

2,390

1,637

712

436

Profit before Exceptional Items and Tax

1,150

8,564

1,567

1,016

1,810

2,554

2,068

653

1,825

2,081

2,047

Exceptional Income/ (Expenses) (Net)

(14)

(107)

7

(64)

-

(325)

85

-

(578)

(396)

-

Profit/ (Loss) before Tax from Continuing Operations

1,135

8,457

1,574

952

1,810

2,229

2,153

653

1,247

1,685

2,047

Gross Interest Cover347

Net Interest CoverProfit/ (Loss) from Continuing Operations
Profit/ (Loss) from Discontinued Operations (Net of Tax)Profit/ (Loss) for the Period

396

Equity Share Capital

2,950

42,701 40,242 45,749 43,446 39,383

581

332

605

793

596

36,713 36,869

99

322

30,101 28,070

272

739

5,507

993

620

1,205

1,436

1,557

554

925

1,413

1,699

-

-

-

-

-

-

-

(2)

-

-

-

739

5,507

993

620

1,205

1,436

1,557

552

925

1,413

1,699

Profit/ (Loss) for the Period had the expenses not adjusted
against BRR

Other Comprehensive Income

-

-

-

-

-

-

682

97

86

-

739

5,507

993

620

1,205

1,436

1,557

(130)

828

1,327

1,699

Gross Fixed Assets (excluding CWIP)

6,917 52,507 51,080 50,296 48,898 48,264 46,742

43,316 35,434 26,804

Capital Work-in-Progress (CWIP) **208

3,079 10,744

17,277 23,605

11,063

8,749

1,581

1,709

1,282

982

737

712

15,376 13,900

12,358Less: Accumulated Depreciation, Amortization and Impairment

2,662 20,207 18,690 16,928

Net Fixed Assets

4,464

Investments

3,907 29,655

Other Non-Current Assets /(Liabilities) (Net)(458) (3,473) (2,365) (2,223) (1,565)(708)

Net Current Assets

1,771 13,444

8,330

Capital Employed

9,684 73,507 69,993 68,544 68,092 69,748 74,483 70,835 66,262 64,404 58,843

Less: Loan Funds

2,514

Net Worth

7,171 54,428 50,064 45,494 48,558 49,451 47,333 42,159 37,255 36,732 33,972

HINDALCO INDUSTRIES LIMITED

33,881 34,099 34,650 34,504

19,07911,478

9,658

7,975

35,101 35,096 35,332 36,804 35,332 30,703

31,731 24,639 25,495 27,025 29,332

6,528

9,374

15,07319,929 23,050 19,534 20,297

27,311

21,251

21,907 20,482

516 (1,038)(1,193)(1,174)

(751)

9,400

8,339

8,409

9,539

9,230

27,150 28,676 29,007 27,672

24,871

222

222

222

223

223

205

207

206

191

-

-

-

-

-

-

-

-

-

-

541

6,479
662

49,178 44,310 43,482 43,285 42,497

41,235 36,568 37,049 36,526 33,240

5,028

5,875

5,532

1,790

5,051

6,731

5,386

Unit 2021-22@ 2020-21@ 2019-20@ 2018-19@ 2017-18@ 2016-17@ 2015-16@

Operating Margin

%

16.69

9.92

9.11

9.28

11.79

12.22

%

8.14

2.33

1.54

2.63

3.31

Times

8.20

3.29

2.62

3.08

Times

8.35

3.32

2.62

3.08

Net Margin
^

^^

-

-

-

2014-152013-142012-13

9.11

9.27

8.28

7.85

3.95

1.50

2.51

4.70

6.05

3.18

1.73

1.81

1.75

1.50

1.61

3.19

2.51

1.81

2.63

5.08

7.31

ROCE

%

13.91

4.38

3.94

5.07

6.18

6.04

4.44

5.30

4.53

4.71

ROE

%

10.54

2.08

1.32

2.46

2.97

3.48

1.39

2.50

4.00

5.15

Basic EPS

`

24.76

4.46

2.79

5.41

6.45

7.56

(0.64)

4.48

7.09

8.88

Diluted EPS

`

24.73

4.46

2.79

5.41

6.45

7.55

(0.64)

4.48

7.09

8.87

`

33.07

12.77

10.47

13.01

13.70

14.49

8.95

8.53

11.22

12.55

`

4.00

3.00

1.00

1.20

1.20

1.10

1.00

1.00

1.00

1.40

Capital Expenditure (Cash outflow)` Crore

1,506

1,137

1,395

1,263

1,178

1,041

1,399

2,073

3,458

5,531

Debt Equity Ratio

Times

0.36

0.40

0.51

0.40

0.41

0.57

0.68

0.78

0.75

0.73

211.00 204.16

180.41

177.92

177.44

18,162 26,638 29,266

17,538^^^##`Book value per Share

Financial Position

222

Ratios and Statistics

Dividend per Share-

29

7,171 54,428 50,064 45,494 48,558 49,451 47,333 42,159 37,255 36,732 33,972

Market Capitalisation

184

2012-13

Other Equity:

Cash EPS ^^^^

Business Reconstruction Reserve (BRR) #Expenses adjusted against BRR (Net of Tax)

2013-14

Net Worth represented by :Profitability

Less: Tax Expenses

2014-15$242.16 222.84 202.49` Crore 127,976 73,433

216.25 220.28

21,502 46,145 48,166 43,756

Number of Equity Shareholders

Nos. 503,729 348,471 332,014 304,345 299,521 319,783 392,888 338,655 361,686 441,166

Number of EmployeesNos.

21,151

20,971 22,477 22,865 23,555 23,679

24,11821,976 20,902 20,238

Average Cash LME (Aluminium)

US$

2,769

1,802

1,749

2,035

2,046

1,688

1,592

1,888

1,773

1,976

Average Cash LME (Copper)

US$

9,691

6,879

5,855

6,337

6,451

5,152

4,852

6,556

7,103

7,855

*

Balance Sheet items are translated at closing exchange rate and Profit and Loss items are translated at average exchange rate.

** Including Intangible assets under development#

Financial restructuring scheme formulated by the Company under the provisions of the Companies Act, approved by the Bombay High Court, to deal withvarious costs associated with its organic and inorganic growth plan.

## Proposed/Interim Dividend for the Period@ Figures for FY 2021 -22, FY 2020-21, FY 2019-20, FY 2018-19, FY 2017-18, FY 2016-17 and FY 2015-16 are as per Ind AS compliant financial statements. Previous
periods figures are as per Previous GAAP financial statements.
$

including Treasury shares held by the Company^

Gross interest coverage ratio is calculated as Operating Profit plus Other Income divided by Interest and Finance Charges plus Finance costs transferred
to Capital Work-in-Progress/ Intangible Assets under development.

^^ Net interest coverage ratio is calculated as Operating Profit plus Other Income divided by Interest and Finance Charges.
^^^ Earnings before Interest and Taxes/ Average Capital Employed.
^^^^ Cash EPS is calculated as Profit/ (Loss) for the year plus Depreciation, Amortization and Impairment divided by Weighted average numbers of equity shares.

Integrated Annual Report 2021-22

185

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Directors’ Report
Dear Shareholders,Your Directors have pleasure in presenting the 63rd Annual Report and the audited standalone and consolidated financial
statements of your company for the year ended 31st March, 2022.

Financial Highlights` in Crore

Consolidated

Standalone

2021-222020-212021-222020-21

1,95,059

1,32,008

67,65342,701

1,136

1,199

535

650

Profit Before Interest, Tax and Depreciation(PBITDA)

29,63818,896

11,8284,884

Depreciation and Amortisation

6,729

6,628

1,752

1,708

155

138

95

140

Finance Costs

3,768

3,738

1,417

1,469

Profit before Exceptional Items and Tax Share in Profit/ (Loss) in Equity Accounted Investments

18,986

8,392

8,564

1,567

6

5

-

-

Revenue from Operations
Other Income

Impairment Loss/(Reversal) of Non Current Assets(Net)

Share of Equity Accounted Investments
Profit before Exceptional Items and Tax

18,992

8,397

8,564

1,567

Exceptional Items

582

(492)

(107)

7

Profit before Tax

19,574

7,905

8,457

1,574

Tax Expenses

5,373

2,723

2,950

581

Profit/ (Loss) for the year from Continuing
Operations

14,201

5,182

-

-

Profit/ (Loss) for the Year from Discontinued
Operations(464)(2,066)

-

-

7

(367)

-

-

Profit/ (Loss) for the year from
DiscontinuedOperations(471)(1,699)--Profit/ (Loss) for the year

13,730

3,483

5,507

993

Other Comprehensive Income / (Loss)(1,148)

4,784

(397)

3,780

Total Comprehensive Income

12,582

8,267

5,110

4,773

Basic EPS - Continuing Operations (`)

63.85

23.30

-

-

Basic EPS - Discontinued Operations (`)(2.12)(7.64)--

Basic EPS (`)

61.73

15.66

24.76

4.46

Tax Expense/ (Benefit) of Discontinued Operations

Appropriations to Reserves :Appropriations` in Crore

2021-222020-21

Opening Balance in Retained Earnings and Other Comprehensive Income

11,026

6,624

Total Comprehensive Income for the Current Year

5,110

4,773

Dividends paid

(667)

(222)

(41)

(1)

2

2

(150)
15,280Hedging (Gain)/ Loss and cost of hedging transferred to non financial assets
Employee Share Based Transactions
Transferred to Debenture Redemption Fund
Closing Balance in Retained Earnings and Other Comprehensive Income

186

HINDALCO INDUSTRIES LIMITED

Dividend:
For the year ended 31st March, 2022, the Board of Directors of your Company has recommended dividend of ` 4.00 per share(Previous year ` 3.00 per share) to equity shareholders.
Equity shares that may be allotted upon exercise of Options granted under the Employee Stock Option Scheme and out of the
Share Capital Suspense before the Book Closure for payment of dividend will rank paripassu with the existing shares and shallalso be entitled to receive the aforesaid dividend.
In terms of provisions of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations & Disclosure
Requirements) Regulations, 2015, herein after referred to as “ Listing Regulations” your Company has formulated a Dividend
Distribution Policy. The Policy is given in Annexure I to the Annual Report and is also accessible from your Company’s Website
www.hindalco.com.

Overview and State of the Company’s Affairs:

The Standalone and Consolidated Financial Statements for the Financial Year ended 31st March, 2022 have been prepared inaccordance with the Indian Accounting Standards (IND AS) as notified by the Ministry of Corporate Affairs.

Standalone full year highlights

Your Company registered a revenue of ` 67,653 crores for the fiscal year 2022 vs ` 42,701 crores in the previous year up 58%
on account of higher global prices of aluminium and copper in FY22 versus EBIDTA of ` 4,884 crores in FY21. EBITDA (Earnings
before Interest, Tax, Depreciation and Amortisation) stood at ` 11,828 crores, up 142% compared to the last year, on account ofhigher profitability in Aluminium business supported by improved macros, higher volumes, and cost optimization. Depreciation
was up 3% at ` 1,752 crore in FY22 versus ` 1,708 crores in FY21. The Finance Cost was lower on Year by 4% at ` 1,417 croresin FY22 versus ` 1,469 crores in FY21. This reduction in finance cost was mainly due to overall reduction in the average cost of
long-term loans on account of re-financing. The Profit before Tax (and Before Exceptional Items) stood at ` 8,564 crore, up by
447% compared to the previous year due to higher EBITDA. Net Profit for FY22 stood at ` 5,507 crores as compared to ` 993
crore up 455% Year on Year compared to the previous year.

Consolidated Full Year Highlights

Hindalco’s Consolidated Revenue stood at ` 1,95,059 crore for FY22 compared to ` 1,32,008 crore in the previous year up 48%
on account of higher global prices of aluminium and copper in FY22 versus FY21. The Company recorded consolidated EBITDA(Earnings before Interest, Tax, Depreciation and Amortisation) of ` 29,638 crore, up by 57% due to favorable macros, strategic
product mix and an improved performance by the downstream business in FY22 versus FY21. Consolidated Profit before Tax (andBefore Exceptional Items) was ` 18,992 crore in FY22, up by 126% compared to the previous year on account of higher EBITDA.
Net Profit after Tax in FY22, stood at ` 13,730 crores compared to ` 3,483 crores in the previous year up 294% Year on Year on
account of exceptional performance by India Business in FY22. For detailed analysis, refer to the Management Discussion andAnalysis section of the Integrated Annual Report.

Highlights of the Company’s Subsidiaries:

1.
Utkal Alumina International Limited
Utkal Alumina revenues were ` 4,594 crore in FY22 compared to ` 2,787 crore in FY21 up by 65% because of higher transfer
pricing compared to last year on account of higher average global alumina prices in FY22 versus FY21. The EBITDA for FY22
stood at ` 2,215 crore higher by 62% compared to ` 1,371 crore in FY21. The Profit after Tax in FY22 was ` 1,099 crore versus` 605 crore in FY21 up by 82% Year on Year on account of higher EBITDA in FY22. (Refer to the table below for comparison in
FY22 versus FY21 key financial number).
Particulars (` in Crore)

FY22

FY21

% Change

Revenue

4,594

2,787

65%

(150)

EBITDA

2,215

1,371

62%

11,026

PAT

1,099

605

82%

Integrated Annual Report 2021-22

187

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Directors’ Report
2. Novelis Inc.
The Performance highlights of Novelis Inc. are provided indetail for FY22 versus FY21 in the Management Discussion andAnalysis Section of the Integrated Annual Report.

During the year, all these expansion projects are in line with
Company’s Capital Allocation framework, focussed on valueenhancing growth, its product enrichment, maintaining a robust
capital structure for maximising shareholder value.

Key Initiatives

Human Resources:

In India operations, Hindalco successfully completed its 500Kt
Utkal’s Alumina refinery brownfield capacity expansion in FY22.
This project was at a capital outlay of around ` 1,500 crore. Thishas strengthened the Company’s integration and boosted theavailability of best- in-class alumina and in a reduction of theoverall cost of production in FY22.
In FY22, Hindalco made two acquisitions valued $79 millionof Hydro’s Kuppam Extrusion facility in India to expand its
presence in the upper end of the value-added to enhance ourcapabilities in high-end extrusions and a fabricated solutions
and a Copper CCR facility of Ryker (now Asoj) with capacityof 225 kt, expanding overall capacities in the value-added
segment. This will not only enhance the Company’s capabilities
but also help the Company to move towards a more sustainablebusiness model.
In addition to the above, Hindalco announced certain organic
growth investments in India in the businesses of Aluminium,
Copper, Specialty Alumina and also Resource Securitisation
over the next five years in the range of $3.0-3.3 billion, including
some certain projects which are under appraisal. The company
continues to focus on its downstream strategy to increase its
downstream capacities in the Flat Rolled Products, Extrusions
and other flat rolled products. All these investments are mainly
targeted towards catering the rising demand of downstream
products in the domestic market.
Novelis has identified more than $4.5 billion of potential
organic capital investment opportunities to grow Novelis’business through debottlenecking, recycling, and new capacity
investments over the next five years focused on increasing
capacity and capabilities that meet growing customer demand
and align with its sustainability commitments. This includes
expansion of cold rolling and recycling capacity in Zhenjiang,
China, a highly advanced recycling center for automotivein the U.S. and a recycling center at UAL joint venture in
South Korea.
This also includes Novelis’ $2.5 billion greenfield, fully
integrated rolling and recycling plant in Bay Minette, Alabama.
This new U.S. plant will support strong demand for sustainable
beverage can and automotive aluminum sheet and advancetowards a circular economy.
Novelis continues to focus on its safe integration of Aleris’continuing operations to drive several strategic benefits and is
expected to generate over $220 million in synergies, throughtraditional integration cost synergies and strategic synergies
created by enhancing and integrating operations in Asia.
188

HINDALCO INDUSTRIES LIMITED

Several innovative people - focused initiatives have been
instituted at the Group level, and these are translated into
action at all of the Group Companies. Our basic objective is toensure that a robust talent pipeline and a high-performance
culture, centred around accountability is in place. We feel thisis critical to enable us retain our competitive edge.

Research and Development
Your Company’s Research & Development (R&D) activities
are focused on developing and commercializing premium
differentiated products, improving our competitive costposition, product quality and environmental sustainability.
To support these goals, we are managing a pipeline ofprojects that address near and mid-term needs, as wellas the exploration of future opportunities. This year R&D
team continued development in the area of making ourprocesses greener & sustainable and value added products& applications. These initiatives helped our plants to mitigate
challenges of raw material quality, reducing specific energy
consumption and carbon footprint, cost effective managementof waste generated during processing, recovery of value fromby-product as well as any waste products. Specific programs
have also been initiated to adopt new digitalisation techniquessuch as soft sensors, digital twins, etc. The predictive andprescriptive models based on AI /ML data analytics coupledwith physic based models are helping better process control& achieve desired process performance. These tools also help
in understanding the requirement of existing and prospective
customers, and provide a better service, in order to increase
your company’s market share in the chosen market space.
Technical competencies developed by your company will
go a long way in terms of quick absorption of technologies,
enabling pushing boundaries of our processes, so as to increase
the economic performance and improve our new product/
new application pipeline to address the impending market
opportunities.
Your Company already operates three Hindalco Innovation
Centres (HIC), one HIC-Alumina at Belagavi working on R&D
of bauxite ore, alumina refining and specialty alumina, hydrate
products and their application in different end uses; as well as
waste management; and one HIC-SemiFab located at Taloja,
near Mumbai, working in the area of tribology, energy andenvironment management and aluminium fabricated products
and new applications. Additionally, R&D Team at Birla Copper,
Dahej, is focusing on maximisation of copper recovery as wellrecovery of various metal values, such as, Selenium, Tellurium,
Nickel, Bismuth, etc., from the effluent generated in the plantand value added applications of the solid wastes. In addition,
your company engages the Aditya Birla Group’s corporate

research and development centre, Aditya Birla Scienceand Technology Company Private Limited (“ABSTCPL”), for
conducting R&D in select areas of work through chartered
R&D projects. These are based on the domain expertiseand R&D facilities available in ABSTCPL. ABSTCPL’s forte of
having multidisciplinary teams of technical experts, scientists
and engineers, enables your company to develop building
competencies in select areas, as a long term value to business.
Both the HICs at Belagavi and Taloja as well as ABSTCPL are
DSIR, GOI recognised R&D Centres. Parallelly, we also workwith different R&D institutes of national and international
reputes to develop technologies for our mutual benefits. The
engagement has resulted into patent applications, which havebeen and will be assigned to your company on the grant of
the patent.

Consolidated Financial Statements:
The Consolidated Financial Statements for the year ended
31st March, 2022 have been prepared by your Company inaccordance with the provisions of the Companies Act, 2013,
read with the Companies (Accounts) Rules, 2014, applicable
Accounting Standards and the provisions of Securities andExchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 “Listing Regulations” andforms part of the full Annual Report.

There is no material change in the Schemes and theaforementioned schemes are in compliance with SEBI ( Share
Based Employee Benefits) Regulations, 2014.

Corporate GovernanceYour Directors reaffirm their continued commitment to good
corporate governance practices. Your Company fully adheresto the standards set out by the Securities and Exchange Boardof India for Corporate Governance practices.
The entire report on Corporate Governance forms part ofIntegrated Annual Report.

Directors’ Responsibility Statement
As stipulated in Section 134(3)(c) of the Companies Act,
2013 (“the Act”), your Directors subscribe to the “Directors’
Responsibility Statement” and confirm that:a)in the preparation of the annual accounts, applicableaccounting standards have been followed along withproper explanations relating to material departures;b)

the accounting policies selected have been appliedconsistently and judgments and estimates have been
made that are reasonable and prudent so as to give atrue and fair view of the state of affairs of the company
as at 31st March, 2022 and of the profit of your company
for that period;c)proper and sufficient care has been taken for the
maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding
the assets of your company and for preventing anddetecting fraud and other irregularities;d)the annual accounts of your Company have been preparedon a going concern basis;e)your Company had laid down internal financial controls
and that such internal financial controls are adequate andwere operating effectively;

f)your Company has devised proper system to ensurecompliance with the provisions of all applicable laws
and that such systems were adequate and operating
effectively.

Employee Stock Option Schemes:
ESOS – 2006

During the year ended 31st March 2022, the Company has
allotted 391,304 fully paid-up equity share of ` 1/- each of theCompany (Previous year 65,652) on exercise of options under
ESOS 2006.

ESOS – 2013:

During the year ended 31st March 2022, the Company has
allotted 97,173 fully paid-up equity share of ` 1/- each of theCompany (Previous year 3,95,908) on exercise of options under
ESOS 2013.

ESOS – 2018:

During the year, the Company has granted 18,72,984 stock
options (Previous year 5,82,240) and 612,560 RSUs (Previous
year 20,487) under ESOS 2018. Hindalco Employee Welfare
Trust has transferred 8,78,968 fully paid-up equity share of` 1/- each of the Company during the year on exercise of
Options under ESOS 2018.
The details of Stock Options and Restricted Stock Units granted
under the above-mentioned Schemes are available on yourCompany’s website viz. www.hindalco.com.
A certificate from the statutory auditor on the implementationof your Company’s Employees Secretarial Option Schemes will
be placed at the ensuing Annual General Meeting for inspection
by the members.

Energy, Technology and Foreign Exchange:
The information on conservation of Energy, Technology
Absorption and Foreign Exchange Earnings and Outgo
stipulated under Section 134(3)(m) of the Companies Act,
2013, read with Companies (Accounts) Rules, 2014 is set out inAnnexure II to this Report.

Integrated Annual Report 2021-22

189

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Directors’ Report
Particulars of Employees:
In accordance with the provisions of Section 197(12) of theCompanies Act,2013 (“the Act”), read with the Companies(Appointment and Remuneration of Managerial Personnel)
Rules, 2014, the names and other particulars of employees
are to be set out in the Directors’ Report, as an addendum
thereto. However, in line with the provisions of Section 136(1)of the Act, the Report and Accounts as set out therein, arebeing sent to all Members of your Company excluding the
aforesaid information about the employees. Any Member, who
is interested in obtaining these particulars about employees,
may write to the Company Secretary at the Registered Officeof your Company.
Disclosures pertaining to remuneration and other details
as required under section 197(12) read with Companies(Appointment and Remuneration of Managerial Personnel)
Rules, 2014 are attached as Annexure III to the Integrated
Annual Report.

Directors:

Board constitution and changes:

Mr.Kumar Mangalam Birla (DIN: 00012813) will retire from officeby rotation at Annual General Meeting, and being eligible,
offers himself for reappointment. Mr. Kumar Mangalam Birla
has given required declaration under Companies Act, 2013.
Mr. Praveen Kumar Maheshwari (DIN:00174361) is re-appointed
as the Whole-time Director for a term of 1 Year w.e.f. 28th May,
2022, subject to shareholders approval at the ensuing Annual
General Meeting. He is also the Chief Financial Officer of theCompany.
Brief resume of the Directors being appointed and re-appointed
form part of the Notice of the ensuing Annual General Meeting.
The Board recommends, re-appointment of Mr. Kumar
Mangalam Birla and Mr. Praveen Kumar Maheshwari. Item
seeking your approval is included in the Notice convening theAnnual General Meeting.
Brief resumes of the directors being appointed/ reappointed
form part of the notice of the ensuing Annual General Meeting.
All the directors being appointed/reappointed have given
required declaration under Companies Act, 2013 and Listing
Regulations.

Independent Directors Statement:

Independent Directors on your Company’s Board havesubmitted declarations of independence to the effect thatthey meet the criteria of independence as provided in Section
149(6) of the Companies Act, 2013 and Regulation 16(1)(b) of
the Listing Regulations.
190

HINDALCO INDUSTRIES LIMITED

Policy on appointment and remuneration of Directors
and Key Managerial Personnel:

The Nomination and Remuneration Committee has formulated
the remuneration policy of your company which is attached as
Annexure IV to the Integrated Annual Report.

Meetings of the Board:

The Board of Directors of your Company met Seven times
during the year, details of which are given in the Corporate
Governance Report forming part of the Integrated Annual
Report.

Annual Evaluation:

Pursuant to the provisions of the Companies Act, 2013 andSecurities and Exchange Board of India (Listing and Disclosures
Requirement) Regulations, 2015, the Directors has carried
annual performance evaluation of Board, Independent
Directors, Non Executive Directors, Executive Directors,
Committee and Chairman of the Board.
The evaluation framework focused on various aspects of theBoard and Committees such as review, timely informationfrom management etc. Also, the performance of individual
directors was divided into Executive, Non Executive andIndependent Directors and based on the parameters such as
contribution, attendance, decision making, action oriented,
external knowledge etc.
Board members have evaluated Independent Directors,
Non executive Directors, Executive Directors, Committee
and Chairman of the Board. The result of evaluation was
satisfactory and meets the requirements of the Company.
Board fully agreed and rated 100% on its functioning, skill
sets and working atmosphere. Independent Directors scoredwell on expressing their views and in understanding theCompany and its requirements. Non-Executive Directors scoredwell in understanding the Company and its requirements
and keep themselves current on the areas to be discussed.
Executive Directors are action oriented and ensures timely
implementation of the Board decisions. Board is completely
satisfied with the functioning of various Committees. Board
has full faith in the Chairman in leading the Board effectively
and ensuring contribution from all its members.

Audit Committee:

The Audit Committee comprises Mr. K.N. Bhandari,
Independent Director, Mr. Vikas Balia, Independent Director &Mr. Y.P. Dandiwala, Independent Director. Mr. Satish Pai:Managing Director and Mr. Praveen Kumar Maheshwari: Chief
Financial Officer and Whole-Time Director are the permanent
invitees. Further details relating to the Audit Committee areprovided in the Corporate Governance Report forming part of
the Integrated Annual Report.

Key Managerial Personnel:
In terms of provisions of Section 203 of the Companies Act,
2013, Mr. Satish Pai: Managing Director, Mr. Praveen Kumar
Maheshwari : Chief Financial Officer and Whole Time Director
and Mr. Anil Malik: Company Secretary are the Key Managerial
Personnel of your Company.

Vigil Mechanism:
Your Company has in place a vigil mechanism for directors
and employees to report concerns about unethical behaviour,
actual or suspected fraud or violation of your Company’s
Code of Conduct. Adequate safeguards are provided against
victimisation to those who avail of the mechanism and directaccess to the Chairman of the Audit Committee in exceptional
cases is provided to them.
The vigil mechanism is available on your Company’s website
viz. www.hindalco.com.

Auditors
Statutory Auditors

M/s. Price Waterhouse & Co. Chartered Accountants LLP (ICAIRegistration No. 304026E/E-300009) were appointed as the
Statutory Auditors of the company to hold office from theconclusion of Fifty Eighth Annual General Meeting held in 2017
till the conclusion of the Sixty third Annual General Meeting of
the Company, to be held in the Calendar year 2022.
The Company has received confirmation from the Auditors to
the effect that their appointment, if made, will be in accordancewith the limits specified under the Companies Act, 2013 andthe firm satisfies the criteria specified in Section 141 of theCompanies Act, 2013 read with Rule 4 of Companies (Audit &Auditors) Rules 2014.
The Board is of the opinion that continuation of M/s. Price
Waterhouse & Co. Chartered Accountants LLP, as Statutory
Auditors will be in the best interests of the Company andtherefore, the members are requested to consider their reappointment as Statutory Auditors of the Company, for aterm of five years, from the conclusion of the ensuing Annual
General Meeting, till the Annual General Meeting to be held in
the calendar year 2027, at such remuneration mutually agreed
and approved by the Board.
The observation made in the Auditor’s Report are selfexplanatory and therefore, do not call for any further comments
under Section 134(3)(f) of the Act.

Cost Auditors

In terms of the provisions of Section 148 of the Act readwith the Companies (Cost Records and Audit) Amendment
Rules, 2014, the Board of Directors of your Company haveon the recommendation of the Audit Committee, appointed
M/s. Nanabhoy & Co., Cost Accountants, Mumbai as Cost
Auditors, to conduct the cost audit of your Company for thefinancial year ending 31st March, 2023, at a remuneration
as mentioned in the Notice convening the Annual General
Meeting. As required under the Act, the remuneration payable
to the cost auditor is required to be placed before the Members
in a general meeting for their ratification. Accordingly, aresolution seeking Member’s ratification for the remuneration
payable to Cost Auditors forms part of the Notice of the ensuing
Annual General Meeting.

Secretarial Auditors

Pursuant to provisions of Section 204 of the Companies Act,
2013 read with the Companies (Appointment and Remunerationof Managerial Personnel) Rules, 2014, the Company has
appointed BNP & Associates, Company Secretaries, Mumbai
as Secretarial Auditor for conducting the Secretarial Audit ofyour Company for the financial year ended 31st March, 2022.
The Report of the Secretarial Auditors is annexed herewith asAnnexure V to the Integrated Annual Report.
The Secretarial Audit Report does not contain any qualification,
reservation or adverse remark.
As per Regulation 24A of the Listing Regulations, material
unlisted subsidiaries of a listed entity incorporated in India
is required to annex a Secretarial Audit Report issued by aCompany Secretary in practice. In compliance with the above
requirement, the Secretarial Audit Report of Utkal Alumina
International Limited, a material subsidiary of your Company,
is given in Annexure VB to the Annual Report. The Secretarial
Audit Report do not contain any qualification, reservation or
adverse remark.

Environment Protection and Pollution Control
Your Company is committed to sustainable development. A
detailed report of the Company’s initiatives and commitment
to environment conservation is part of the Integrated Annual
Report.

Particulars of Loans, Guarantees and Investments:
Details of Loans, Guarantee and Investments covered under
the provisions of Section 186 of the Companies Act, 2013 readwith Companies (Meetings of Board and its Powers) Rules,
2014 are given in the notes to Financial Statements of theIntegrated Report.

Corporate Social Responsibility:
In terms of the provisions of Section 135 of the Companies
Act, 2013 (“the Act”) read with Companies (Corporate Social
Responsibility Policy) Rules, 2014, the Board of Directors of yourCompany has constituted a Corporate Social Responsibility

Integrated Annual Report 2021-22

191

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Directors’ Report(“CSR”) Committee which is chaired by Mrs. Rajashree Birla. The
other Members of the Committee for the Financial year ending
31st March 2022 were Mr. Y.P. Dandiwala, Independent Director,
Mr. A.K. Agarwala, Non Executive Director and Mr. Satish
Pai: Managing Director. Dr. Pragnya Ram, Group Executive
President, Corporate Communication & CSR is a permanent
invitee to the Committee.
Your Company also has in place a CSR Policy and the sameis available on your Company’s website viz. www.hindalco.
com. The Committee recommends to the Board activities tobe undertaken during the year.
Your Company is a caring corporate citizen and lays significant
emphasis on development of the communities around which
it operates. Your Company has identified several projects
relating to Social Empowerment & Welfare, Infrastructure
Development, Sustainable Livelihood, Health Care and
Education during the year and initiated various activities inneighbouring villages around plant locations. During thefinancial Year 2021-22 the Company has spent ` 38 Crores
under Section 135 of the Companies Act, 2013 on CSR activities, which is more than 2% of average net profits of the Company
for immediately preceeding three financial years.
The Annual Report on CSR activities is attached as Annexure
VI to the full Annual Report.

Risk Management
Pursuant to the requirement of Securities and Exchange Boardof India (Listing and Disclosures Requirement) Regulations,2015, the Company has constituted Risk Management
Committee, which is mandated to review the risk management
plan/process of your company.
Risk evaluation and management is an ongoing process
within the Organization. Your Company has comprehensive
risk management policy which is periodically reviewed by the
Risk Management Committee.

Contracts and Arrangements with Related
PartiesDuring the financial year, your Company entered into related
party transactions which were on arm’s length basis and in theordinary course of business. There are no material transactions
with any related party as defined under Section 188 of the
Act read with Companies (Meetings of Board and its Powers)
Rules, 2014 and SEBI (Listing Obligations and Disclosures
Requirement) Regulations, 2015. The related party transactions
have been approved by the Audit Committee and Board of
your Company, as required under the Companies Act 2013
and SEBI (Listing Obligations and Disclosure Requirement)
Regulations, 2015 .
192

HINDALCO INDUSTRIES LIMITEDThe policy on Related Party Transactions as approved by the
Audit Committee and the Board is available on your Company’s
website viz. www.hindalco.com.

Other Disclosures:

Business Responsibility Report:
As per Listing Regulations, a separate section of BusinessResponsibility Report forms part of Integrated Annual Report.

Internal Financial Control

Directors of your Company hereby state and confirm
that the Company has complied with all the applicable
Secretarial Standards.

•

Your Company has not issued any shares with differential
voting.

•There was no revision in the financial statements.

•

Your Company has not issued any sweat equity shares.

Appreciation•

Mr. Satish Pai is a director on the Board of Novelis Inc,
wholly owned subsidiary. He is in receipt of annual feeof US$ 1,50,000 in the calendar year 2022. Mr. Praveen
Kumar Maheshwari: Whole Time Director and Chief
Financial Officer has not received any commission/
Remuneration from your Company’s subsidiaries.

Your Directors place on record their sincere appreciation for theassistance and guidance provided by the Honorable Ministers,
Secretaries and other officials of the Ministry of Mines,
Ministry of Coal, the Ministry of Chemicals and Fertilizers andvarious State Governments. Your Directors thank the Financial
Institutions and Banks associated with your Company for theirsupport as well.

•

There is no change in the nature of business.

•

During the year under review, your Company has not
accepted any fixed deposits from the public falling under
Section 73 of the Act read with the Companies (Acceptanceof Deposits) Rules, 2014. Thus, as on March 31, 2022, there
were no deposits which were unpaid or unclaimed anddue for repayment.

The Internal Audit Department monitors and evaluates theefficacy and adequacy of internal control system in the
Company, its compliance with operating systems, accounting
procedures and policies at all locations of the Company.
Based on the report of internal auditors, the process owners
undertake corrective action in their respective areas andthereby strengthen the controls. Significant audit observations
and corrective actions thereon are presented to the Audit
Committee of the Board.

•

There were no material changes and commitments
affecting the financial position of your Company between
end of financial year and the date of report.

Internal Control System and Their Adequacy:Your Company has an Internal Control System, commensuratewith the size, scale and complexity of its operations. The scope
and authority of the Internal Audit (IA) function is defined by
the Audit Committee.

As per the requirement of the Sexual Harassment of
Women at the Workplace (Prevention, Prohibition
and Redressal) Act, 2013, your Company has compliedwith provisions relating to the constitution of Internal
Complaint Committee under POSH.

•

Extract of Annual Return:In terms of the provisions of Section 92 (3) of the Companies
Act, 2013 (“the Act”) read with the Companies (Management andAdministration) Rules, 2014, an extract of the Annual Return ofyour Company for the financial year ended 31st March 2022 isavailable at www.hindalco.com .

••There are no significant and material orders passed by
the regulators or courts or tribunals impacting the going
concern status and company’s operations in future.

•

There were no frauds reported by the Auditors u/s 143(12)of the Companies Act, 2013.

Your Company’s employees are instrumental in your Company
scaling new heights, year after year. Their commitment andcontribution is deeply acknowledged.
Your involvement as Shareholders is greatly valued. Your
Directors look forward to your continuing support.
For and on behalf of the Board
Satish Pai
K.N. Bhandari
Managing Director Independent Director
DIN: 06646758
DIN: 00026078

Place: Mumbai
Dated: 22nd July, 2022

Your directors confirm having laid down internal financial
controls and that such internal financial controls are adequate
and were operating effectively

Subsidiary, Joint Ventures or Associate Companies:
The financial statements of your Company’s subsidiaries andrelated information have been placed on the website of yourCompany viz. www.hindalco.com
In accordance with the provisions of the section 129 (3) ofthe Act, read with the Companies (Accounts) Rules, 2014, areport on the performance and financial position of each of
the subsidiaries, associates and Joint Venture is attached as
Annexure VII to this Report.
The names of Companies which have become or ceased to be
subsidiaries, Joint Ventures and associates are also provided
in the aforesaid statement.

Integrated Annual Report 2021-22

193

Corporate Overview

Annexure I

Annexure II

Dividend Distribution Policy

Part A- Conservation of Energy

1.

Introduction
1.1.

As per the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, as amended, theCompany is required to formulate and disclose
its Dividend Distribution Policy. Accordingly, theBoard of Directors of the Company (‘the Board’) has
approved this Dividend Distribution Policy for theCompany at its meeting held on 13th February 2017as amended on 22nd February 2021.

3.

1.2. The objective of this policy is to provide clarity to
stakeholders on the dividend distribution framework
to be adopted by the Company. The Board of
Directors shall recommend dividend in compliancewith this policy, the provisions of the Companies
Act, 2013 and Rules made thereunder and otherapplicable legal provisions.

2.

Target Dividend Payout

2.1. Dividend will be declared for any financial year out ofthe profits of the company for that year or out of the
profits of the company for any previous financial year
or years arrived at after providing for depreciation
and remaining undistributed, or out of both;2.2. The Board will endeavor to distribute a dividend in
the range of 8 % to 10% of the Free Cash Flow at
Hindalco Consolidated Level (defined as Cash Flowafter meeting interest, tax, other statutory dues,
maintenance capital expenditure and working capitalrequirements at Hindalco Consolidated Level but
before considering strategic capital expenditure anddebt repayments/pre-payments) of the relevant year
subject to compliances of the Companies Act 2013
and all other applicable Regulations.

Factors to be Considered for Dividend Payout

The Board will consider various internal and external
factors, including but not limited to the following before
making any recommendation for dividends:•

Free Cash Flow of the relevant year (as defined above)•

Stability of earnings•

Future capital expenditure, inorganic growth plans
and reinvestment opportunities•

Industry outlook and stage of business cycle forunderlying businesses•

Leverage profile and capital adequacy metrics•

Overall economic / regulatory environment•

Contingent liabilities•

Past dividend trends•

Buyback of shares or any such alternate profit
distribution measure

•

4.

5.

i)

a.

During the year, Energy Audit were carried out at
Aditya, Belagavi, Hirakud, Renukoot, Muri & Dahej
unit, Energy saving opportunities identified andprojects initiated.

b.

A two-day virtual training session was conducted
covering various topic on Energy Conservation
which was attended by a large group of Hindalco
employees.

c.

During the year, Utkal unit was certified ISO 50001.
With this, total six units are now ISO 50001 certified.

d.

Reduction in Aluminium Smelter energy consumption
through phased implementation of copper insert
collector bar, Cast iron sealing, Step stub Anode,etc. During the year, total 319 pots were modified
with copper insert collector bar at Aditya, Mahan &Hirakud Smelters.

e.

Project on current efficiency improvement and Pot
life prediction at Mahan & Aditya Smelter has beentaken up through application of Digital twin.

f.

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

Reviewg.

DisclosureThis policy (as amended from time to time) will beavailable on the company’s website and in the annual
report.

Original date of Board Meeting where the Policy was approved 13th February, 2017h.
i.

Board Meeting approval date for this revised policy 22nd February, 2021.

194

HINDALCO INDUSTRIES LIMITED

Our Capitals

Reduction in Power Plant auxiliary power consumption
through various energy conservation initiatives likede-staging Boiler Feed Pump, Cooling Tower fan
blade modification, booster pump application,
process optimisation etc.
Replacement of conventional motors with energy
efficient motors.
Installation of motion sensors and Lux level sensors
in office buildings and shopfloor for lighting power
conservation.

j.

Replacement of conventional light with LED inphased manner.

k.

Reduction in energy consumption of furnace throughCondition Monitoring (Thermography) and processoptimisation.

ii)

Statutory Reports

Financial Statementsl.

Rationalization of motor, pump & fan capacity andreplacement of inefficient pumps & motors with highefficiency pumps & motors.

m.

Energy efficient & corrosion resistant coating inpumps.

n.

Installation of VFD in variable load application.

o.

Compressed Air system efficiency improvement
through replacement of inefficient compressors,arresting leakages, process optimization etc.

The steps taken on conservation of energy.

Any other contingency plans

This policy would be subject to revision / amendment on
a periodic basis as may be necessary.

Strategic Overview

The steps taken by the company for utilisingalternate sources of energy.
a.

Additional 50 MW Solar PV capacity was added
during year with installations at five locations v.i.z
Mahan, Mouda, Taloja, Renukoot & Renusagar. With
this total 100 MW renewable installed capacity isreached.

b.

Renewable Hybrid (20 MW Solar + 20 MW Wind)
Project is finalized for Dahej and contract awarded.
Target commission date is March’23.

c.

Contract for 5 MW Wind Power for Taloja unit has
been finalized. Power flow expected from Jul’22.

d.

Additional 50 MW of renewable project including
renewable hybrid is under finalization at various
locations.

e.

The company is actively pursuing a Renewable Hybridwith pumped hydro storage project for 100 – 300 MW
of RTC power for Aditya unit. Upgradation of Grid
connectivity from 220 KV to 400 KV is also taken up
at this unit to improve reliability.

f.

The company is also exploring large scale Floating
Solar project.

g.

25 Nos of Solar street light at Dahej unit.

iii) The capital investment on energy conservationequipment
The Capital investment on Energy conservation equipment& projects for the year was INR 277 crore.

Integrated Annual Report 2021-22

195Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Annexure II
B - Technology Absorption(a)

The following efforts made towards technology
absorption at Mahan•
Successful insertion of 53 copper Insert collector
bar Pots in Potline in FY22 resulting in better Energy
efficiency.

Wire rod mill Casting wheel temperature monitoring
system (Battery operated) has been developed. Lowcost solution developed.

•

Indigenous development of Controller for Co2 andAir Analyzer.

••

Indigenous development of probe for Billet
Ultrasonic system.

••

220kV Bus Sectionalizer Project completed in CPP.

•

Black Start DG Governor & SCADA system Upgraded.

•Fire detection AI camera installation in GAP.

•

Installation of water mist suppression system atreject paste belt conveyor to enhance fire safety atGreen Anode Plant.

•

Online real-time Diagnostic system installation in
CRS primary crusher.

••

Installation of high-capacity axial piston pump inplace of internal gear pump at hydraulic unit toenhance reliability at GAP.
Customization of machine to trim elongated pins onstem assembly itself, to eliminate cutting/removal
and re-welding of pins.

•

Use of Ultra Capacitor in place of Battery Bank in Fire
Hydrant Engines.

•

Ultrasonic testing using specialized equipment(UE-15000) for predictive/preventive & breakdown
analysis of Bearings, Electrical testing (Motors,
Greasing, Cables, feeders, transformer, TG etc.) &gas leakages implemented .

•Online CBM surveillance system development for
Wire rod mill finishing mill motor with dashboard.

•

In-house method developed for measurement ofBaked anode Electrical Resistivity.

•

Digitization of Ladle management system and Cast
ID generation for improving Quality management.

•

Digitized Auto Dia selection of Billet casting tablefor eliminating wrong table dia selection issues.

•

196

•

Algorithm development for predictive analysis of
furnace tilting position and protection of furnace
tilting cylinder from over stroking in cast house.

•

Indigenous PLC Simulator for testing & people
development done in Cast house .

•Indigenous First-time testing facility developed forElectric Gloves Testing Machine (40 KV/160mA)

HINDALCO INDUSTRIES LIMITED••

Asset management system for reliability improvement
and backup in PLC program.
In house development of ground leakage detector
for safety improvement in HFO area.

•

RFID system installation in ARS.

•

Realtime position monitoring of ARS casting machine
tilting function for safety and reliability improvement.

•

Soft starter-based bypass panel installed in CRS
primary crusher for risk mitigation.

•

Mitigation of frequent HUH VFD failure by
upgradation. 2 VFD failure per year to Zero failure
and reliability improvement by vendor substitution
from Rexroth to Parker in GAP proportional valves.

•

Digitalization of Real-time oil Condition Monitoring
system , CMS for turbines and Motors ,Wear ,tearand Deformation monitoring system for P&F driven
chain has been made .

•Mechanical coal sampling system Augur installed.

•

Coal supply chain tracking system through inhouse
IT Team.

•Drone survey of Coal stock yard for accurate
inventory management.

•

Auto synchronization project completed for all unitsof CPP•

Fast Bus transfer scheme for ST-1 & ST-2 of CPP.

•

Bluetooth based current clamp meter for remotemeasurement.

•

7no’s of Cooling tower fan blade replaced with FRP
blades.

•Renukoot liquor Productivity increased from 73 g/L
to 78 g/L based on process optimization measures.

Improvement in ash handling plant specific power
consumption by optimized running of Compressors.

•

Development of Green cold Tamping Paste for Pot
relining in Renukoot & Hirakud Smelters.

Tube settler for coal recovery and water clarification
done.

•

Modification done in coal mills by increasing thepulverizing capacity and thereby reducing the millrejects.

•

Secured NABL accreditation for oil testing lab.

•

Power Plant simulator has been installed forproviding hands on experience to the desk engineers.

•

Completed the Track hopper project, enabling tohandle coal through both BOBRN and BOXN wagons.

(b) Specific Areas in which R&D has been carried out at
Belagavi HIC:•
Development of specialty hydrates for EN45545/HL
polymeric composites of railways.

•

Development of Low Soda Submicron Reactive
Alumina for Advanced Ceramics application.

•

Development of Medium Calcined Fine Alumina for
Brake Lining Application for US customers.

•••

Development of hard calcined low soda alumina for
Vacuum circuit breaker.
Conducted lab trials with all sources of bauxite anddevised a model for efficient processing at plant.
Development and simulation of lab scale process
for producing hydrate with <50 ppm Fe2O3 in thehydrate.

The developmental works implemented at Renukoot :•Sigma scope SMP350 conductivity meter forelectrical conductivity measurement

Technology absorption efforts at UTKAL:•
New upgraded flocculant (HX-6300S) introduced in
High-Rate decanter (HRD) in place of existing CYTECH
HX-600 flocculant. Plant trial was successfully
conducted in the HRD after set of laboratory trials.
•

Liquor productivity 91 gpl is achieved through processcontrol optimization.

•

Inhouse, Complex process logic and control loop
developed for Mud and wash water management
to optimize soda loss across washers.

•

Installed Carbon, Hydrogen & Sulphur Analyser for
Solid Samples.

•

Installed TGA-ELTRA which is used for the analysis
of Coal and Coke.

•

Machine learning software “Mtell” for Criticalequipment health monitoring.

•

Installed Gas Chromatography for determination of
additives and carbon chain in oil used in fabrication
coolant.

•

Aerobin Composter installed for food waste with 400
liters capacity.

•

Installed Electrical Resistivity Analyzer which is used
to determine the electrical resistivity in baked anodesamples.

•

Installed Air reactivity Analyzer for determining the
air reactivity in baked anode & CP coke samples.

Efforts made towards technology absorption at Aditya
Smelter:•
Successful insertion of 110 copper Insert collector
bar Pots in Potline in FY22 resulting in better Energy
efficiency.
•

3no’s of BFP de-staged in FY-22 with energy savingof 200kW/pump.

Technical Absorption efforts in Downstream plants:•
Upgradation of Old SMS Wedge scale system (Binary
input type) to Temposonic type scale with analog
input function.
•

Upgradation of SMS Xray gauge system from
Thermofisher make to IMS make due to technology
Obsolescence and achieving measurement with %deviation within 0.05%•

Upgradation of SMS IO module from S100 to S800
of ABB PLC system.

•

Up-gradation of SMS mill Schleifring unit STU (Signal
Transmission unit) PFSA 103D with air humidifier unit.

Integrated Annual Report 2021-22

197

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Annexure II•

Entry coil car motor and drive upgradation from AC
to DC system at SMS mill•

Isothermal Extrsuion System (IES) at extrusion Press
no.7

•

•

•

PODFA instrument installation at Cast House formeasuring inclusion level in metal.

•

Alscan analyser (Ar gas based) for H‚ -gas analysis
in liquid metal•

Therelek Lab Oven Furnace in Renukoot Extrusion
for lab trials of heat treatment cycles.

Technology Absorption efforts at Mines :•Drone technology for surveying and volume
estimation, Geo-fencing in truck transport,
weighbridge automation, digital ore tracking, bestin class quality lab at mines location, mine planningsoftware.

Quality improvement:oModification and in house fabrication of Tibor rod
frame for reliable and consistency in Tibor rod feed
rate in Wire rod.

•

Flexibility in coal handling through BOXN and BOBRN
rakes.

•

Reduction in Coal rake unloading Turnaround time.

Safety Enhancement:oReplacement of OXY -DA cutting by Plasma cutting.

Benefits due to technology absorption efforts at UTKAL:

o

o
•

•

•

Aerosol Based Smoke detector testing implemented
as a standard practice to check and maintenance of
Smoke detector, eliminating use of incense sticks.

Upgraded flocculants results in better process control andefficiency.

•

Improved equipment reliability due to digital initiatives.

6.6 KV switchboard breaker - remote racking.

•

Improved energy efficiency and liquor productivity atalumina refinery.

Energy Efficiency :oCurrent Efficiency increase and Energy per MT of
the Hot metal to the tune of 250 KWhr /MT due togradual change over to copper insert Pots in Smelter.
Import SubstitutionoHydraulic oil in ICM Furnaces power pack from M/S
Quaker France to M/S IOCL India.

The benefits derived like product improvement, cost
reduction, product development or import substitutionoWire rod finishing mill gear oil changed from MOBILXP 220 to SERVO XP-220.

Benefits derived as a result of technology absorption at
Mahan

o

New Product developmento
New alloy 6063L in Billet Casting with modified
homogenizing cycle for enhanced extrudability.

Carbon plant - Cutting and reuse of old, elongatedpins to reduce new pin consumption in stem repair
shop.

o

Carbon plant Use of servo cut oil in place of Valonaoil for mould spraying system.

oHigh purity P33HP Sows production.

ooNew alloy “Diuranium “ & 6082V developed in Billet.

••

New process development:oDeveloped new process for achieving Highconductivity Wire rod through Boron addition in
furnaces.
o•Productivity improvement:oReplaced 32 NB soft water supply pipeline with
80 NB. This will reduce WRM bimonthly shutdown
duration by 3 Hrs.
o

198

Developed new process for achieving products withlow Ti and V in Sow Casting machine.

Pot productivity increase from 2.762 t/pot/day to
2.801 t/pot/day by increasing/ ramping up current
from 367 KA to 371 KA.

HINDALCO INDUSTRIES LIMITED•

Benefits realised due to technological Efforts at Downstream:•

Development of Can Body Stock (CBS), qualification of
product at Can Manufacturer and commercial production
from HKD FRP.

•

5083 H321 (Special Temper) plates developed in housefor Railway wagon, Bulker and Trailer application bystabilizing low temperature Hot Rolling.

•

Semi-Rigid Container (SRC) stock developed in-house
which is better than Chinese imports, in terms of productperformance.

Benefits realized due to technological Efforts at Belagavi:•

Improvement of plant process efficiency and consistency
in the quality of Bayer hydrate.

•

Increase in sales realization in the value-added products,
leading to the improvement in business profitability.

•

Increase in market share in preferred applications andentering new market segments.

Development of environmentally friendly products,
leading to a more sustainable business.

Benefits realised due to technological Efforts at Mines :•Overall accuracy in estimation of volumes, Overall mineral
quality improvement, and fast response time with thecustomers.

In case of imported technology (imported during the last three years reckoned from the beginning of the financial year)
Technology imported forYear ofimportHas technology
been fully
absorbedcarbon plant - Indigenization of Vibro compactor
mould.

At Mahan Aluminium NOx project - M/S FORTUM
Finland (completed in CPP Unit # 3)

2021

Yes completed

Benefits realised as part of developmental work at
Renukoot:

At Mahan SPM control system-HFTR and Micropulse project in ESP Transformer completed in allunits. M/s Helios & Kraft Powercon2022

Yes completed•

Integrated Mine Planning software

2022

No

Upgradation of lab infrastructure for better control in raw
materials and in process quality.

If not fully absorbed areas where this has nottaken place reason thereof and future plant ofactionUnder implementation

Benefits realised due to the technology absorption at
Aditya:R&D expenses Incurred :•Increase in current efficiency and reduction in the Specificenergy consumption due to the copper insert collector bar
pots.

The Company has spent ` 31 crore for Research and Development during the Financial Year 2021-2022.

•

Lowest ever Auxiliary power consumption of 7.18%
achieved in FY-22.

•

Improvement in turbine heat rate by 6 Kcal/KWH due toinstallation of new design multistage BD valve in 2 units.

Foreign Exchange earnings & Out Go.
a)

Activities related to exports. Exports (FOB) during the year were ` 21,416 crore.

b)

Total Foreign Exchange used and earned.
(1)

Foreign Exchange used ` 37,494 crore.

(2)

Foreign Exchange Earned ` 21,416 crore.

Integrated Annual Report 2021-22

199

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Annexure III

Annexure IV

Details pertaining to remuneration as required under Section 197(12) of the Companies Act, 2013 read with
Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

Hindalco Industries Limited (“the Company’) an Aditya Birla Group Company adopts/shall adopt this Executive
Remuneration Philosophy/Policy as applicable across Group Companies. This philosophy/ policy is detailed below.

i.

The percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary during the
Financial year 2021-22, ratio of the remuneration of each Director to the median remuneration of the employees of theCompany for the Financial year 2021-22 are as under:

Aditya Birla Group: Executive Remuneration
Philosophy/Policy

Sr. Name of Director/
No. KMP and Designation

At the Aditya Birla Group, we expect our executive team tofoster a culture of growth and entrepreneurial risk-taking.
Our Executive Remuneration Philosophy/Policy supports thedesign of programs that align executive rewards – including
incentive programs, retirement benefit programs, promotion
and advancement opportunities – with the long-term successof our stakeholders.

1

Kumar Mangalam Birla

2

Remuneration* of Director/% increase in Remuneration
KMP for Financial Year 2021-22 in the Financial Year 2021-22(` in Lakhs)

Ratio ofremuneration ofeach Director/to median
remuneration ofemployees_

Not applicable_

Rajashree Birla

348.0116.72%

52.97

3

A.K.Agarwala

37.97

11.87%

5.78

4

Vikas Balia

54.40

15.06%

8.28

5

Y.P. Dandiwala

57.75

14.93%

8.79

6

K.N. Bhandari

61.42

13.87%

9.35

7

Alka Bharucha

36.61

5.14%

5.57

9

D. Bhattacharya^ ***34.62

13.29%

5.27

10

Sudhir Mital

37.61

35.19%

5.72

11

Anant Maheshwari

31.61

69.40%

4.81

12

Satish Pai

4652.47

88.88%

708.14

13

Praveen Kumar
Maheshwari

639.6768.89%

97.36

14

Anil Malik

164.0031.98%

24.96^

Additionally, at the time of retirement, Board had approved pension of ` 0.335 crore per month, for his past service
when he was the Managing Director of the Company. The present value of the above pension liability determinedbased on the actuarial valuation is accounted by the Company in its financial statements. Amount charged as expenses
in the statement of profit and loss during the year amounting to ` 3 crores has been disclosed as a part of managerial
remuneration.
The median remuneration of employees of the Company during the financial year was ` 6.57 Lacs

ii

In the financial year, there was an increase of 2.50% in the median remuneration of employeesiii

There were 21,151 permanent employees on the rolls of Company as on 31st March, 2022

iv

Average percentage increase made in the salaries of employees other than the managerial personnel in the last
financial year i.e. 2021-22 was 2.5 % whereas the increase in the managerial remuneration for the same financial year
was 86.21%. For the purpose of managerial personnel, Managing Director and Whole time Director are considered.

v

It is hereby affirmed that the remuneration paid is as per the Remuneration Philosophy / Policy of the Company.

vi

Remuneration excludes amortization of fair value of employee share based payments under Ind As 102 and provision
for gratuity and leave encashment recognised on the basis of actuarial valuation as separate figures are not available.

vii

In terms of ESOS-2018, 10,29,304 Stock Options have vested in Mr. Satish Pai during the year.

viii

In terms of ESOS-2018, 87,566 Stock Options have vested in Mr. Praveen Kumar Maheshwari during the year.
For and on behalf of the Board
Satish Pai
Managing Director
DIN:06646758

Place : Mumbai
Dated : 22nd July, 2022

200

HINDALCO INDUSTRIES LIMITED

K.N. Bhandari
Independent Director
DIN: 00026078

IV. Executive Pay Positioning

We aim to provide competitive remuneration opportunities
to our executives by positioning target total remuneration(including perks and benefits, annual incentive pay-outs,
long term incentive pay-outs at target performance)
and target total cash compensation (including annual
incentive pay-outs) at target performance directionally
between median and top quartile of the primary talentmarket. We recognize the size and scope of the role andthe market standing, skills and experience of incumbents
while positioning our executives.

Our business and organizational model
Our Group is a conglomerate and organized in a mannersuch that there is sharing of resources and infrastructure. This
results in uniformity of business processes and systems thereby
promoting synergies and exemplary customer experiences.

I.

Our executive remuneration program is designed to
attract, retain, and reward talented executives who willcontribute to our long-term success and thereby build
value for our shareholders.

Our executive remuneration program is intended to:II.

We use secondary market data only as a reference point
for determining the types and amount of remuneration
while principally believing that target total remuneration
packages should reflect the typical cost of comparable
executive talent available in the sector.

Objectives of the Executive Remuneration Program1.

Provide for monetary and non-monetary remuneration
elements to our executives on a holistic basis

2.

Emphasize “Pay for Performance” by aligningincentives with business strategies to reward
executives who achieve or exceed Group, businessand individual goals.

*** Mr. D. Bhattacharya ( DIN: 00033553) has resigned as Director w.e.f 02nd March, 2022.
ibring to the table, the executive pay practices and pay
levels in other markets and industries, to appreciate thedifferences in levels and medium of pay and build in as
appropriate for decision making.

Covered Executives

Our Executive Remuneration Philosophy/Policy applies
to the following:1.

Directors of the Company

2.

Key Managerial Personnel: Chief Executive Officer
and equivalent (eg: Deputy Managing Director), Chief
Financial Officer and Company Secretary.

3.

Senior Management : As decided by the Board

III. Business and Talent Competitors

We benchmark our executive pay practices and levels
against peer companies in similar industries, geographiesand of similar size. In addition, we look at secondaryreference (internal and external) benchmarks in order toensure that pay policies and levels across the Group arebroadly equitable and support the Group’s global mobility
objectives for executive talent. Secondary reference points

V.

Executive Pay-Mix

Our executive pay-mix aims to strike the appropriatebalance between key components: (i) Fixed Cashcompensation (Basic Salary + Allowances) (ii) Annual
Incentive Plan (iii) Long-Term Incentives (iv) Perks andBenefits
Annual Incentive Plan:
We tie annual incentive plan pay-outs of our executives
to relevant financial and operational metrics achievement
and their individual performance. We annually align thefinancial and operational metrics with priorities/ focus
areas for the business.
Long-Term Incentive:
Our Long-term incentive plans incentivize stretch
performance, link executive remuneration to sustained
long term growth and act as a retention and reward tool.
We use stock options as the primary long-term incentive
vehicles for our executives as we believe that they bestalign executive incentives with stockholder interests.
We grant restricted stock units as a secondary long term
incentive vehicles, to motivate and retain our executives.

VI. Performance Goal Setting

We aim to ensure that for both annual incentive plans andlong term incentive plans, the target performance goals
shall be achievable and realistic.

Integrated Annual Report 2021-22

201

Corporate Overview

Annexure IV
Threshold performance (the point at which incentive plans
are paid out at their minimum, but non-zero, level) shallreflect a base-line level of performance, reflecting an
estimated 90% probability of achievement.
Target performance is the expected level of performanceat the beginning of the performance cycle, taking into
account all known relevant facts likely to impact measured
performance.
Maximum performance (the point at which the maximum
plan payout is made) shall be based on an exceptional
level of achievement, reflecting no more than anestimated 10% probability of achievement.

VII. Executive Benefits and Perquisites

Our executives are eligible to participate in our broadbased retirement, health and welfare, and other
employee benefit plans. In addition to these broad-basedplans, they are eligible for perquisites and benefits
plans commensurate with their roles. These benefits
are designed to encourage long-term careers with theGroup.

Other Remuneration Elements

Each of our executives is subject to an employment agreement.
Each such agreement generally provides for a total remuneration
package for our executives including continuity of service
across the Group Companies.

Strategic Overview

We limit other remuneration elements, for e.g. Change inControl (CIC) agreements, severance agreements, to instancesof compelling business need or competitive rationale andgenerally do not provide for any tax gross-ups for our
executives.

Financial Statements

Risk and Compliance

We aim to ensure that the Group’s remuneration programs
do not encourage excessive risk taking. We review ourremuneration programs for factors such as, remuneration mix
overly weighted towards annual incentives, uncapped pay-outs,
unreasonable goals or thresholds, steep pay-out cliffs at certain
performance levels that may encourage short-term decisions
to meet pay-out thresholds.

Claw back Clause:

In an incident of restatement of financial statements, due
to fraud or non-compliance with any requirement of theCompanies Act 2013 and the rules made thereafter, we shallrecover from our executives, the remuneration received
in excess, of what would be payable to him / her as per
restatement of financial statements, pertaining to the relevant
performance year.

Implementation

The Group and Business Centre of Expertise teams will assist
the Nomination & Remuneration Committee in adopting,interpreting and implementing the Executive Remuneration
Philosophy/Policy. These services will be established through“arm’s length”, agreements entered into as needs arise in thenormal course of business.

Form No. MR-3

SECRETARIAL AUDIT REPORTFOR THE FINANCIAL YEAR ENDED 31ST MARCH 2022
[Pursuant to Section 204 (1) of the Companies Act, 2013 and Rule no. 9 of the Companies(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To
The Members
Hindalco Industries Limited
Ahura Centre, 1st Floor,
B Wing Mahakali Caves Road,
Mumbai - 400093(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;

We have conducted the Secretarial Audit of the complianceof applicable statutory provisions and the adherence to good
corporate practices by HINDALCO INDUSTRIES LIMITED
having CIN No. L27020MH1958PLC011238 (hereinafter called
the ‘Company’) for the audit period covering the financial year
ended on 31st March 2022 (the ‘audit period’). Secretarial Audit
was conducted in a manner that provided us a reasonable basis
for evaluating the corporate conducts/statutory compliancesand expressing our opinion thereon.

(c)

The Securities and Exchange Board of India (Share
Based Employee Benefits and Sweat Equity)
Regulations, 2021)(d)

The Securities and Exchange Board of India(Registrars to an Issue and Share Transfer Agents)
Regulations, 1993; and(e)

The Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements)
Regulations, 2015;(f)

The Securities and Exchange Board of India (Issue andListing of Non Convertible Securities ) Regulations,2021.

Based on our verification of the Company’s books, papers,
minute books, forms and returns filed, soft copy as provided
by the company 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 compliedwith the statutory provisions listed hereunder and also that
the Company has proper Board-processes and compliancemechanism in place to the extent, in the manner and subject
to the reporting made hereinafter.

(vi) Other laws specifically applicable to the Company are:(a)

The Mines Act, 1952; and(b)

T h e M i n e s a n d M i n e ra l s ( R e g u l a t i o n a n d
Development) Act, 1957.

We have also examined compliance with the applicable clausesof the Secretarial Standards issued by the Institute of Company
Secretaries of India during the audit period;(i)

The Companies Act, 2013 (the ‘Act’) and the Rules madethereunder;

During the audit period, the Company has complied withthe provisions of the Acts, Rules, Regulations and Bye-laws
mentioned above.

(ii)

The Securities Contracts (Regulation) Act, 1956 and theRules made thereunder;

During the period under review, provisions of the following
regulations were not applicable to the Company:(iii) The Depositories Act, 1996 and the Regulations and
Bye-laws framed thereunder;(i)

The Securities and Exchange Board of India (Delisting ofEquity Shares) Regulations, 2009;(iv) Foreign Exchange Management Act, 1999 and the Rules
and Regulations made thereunder to the extent ofOverseas Direct Investment and External Commercial
Borrowings.

(ii)

The Securities and Exchange Board of India (Buyback of
Securities) Regulations, 1998; and(v)

HINDALCO INDUSTRIES LIMITED

Statutory Reports

Annexure VA

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 31st March, 2022 according to
the provisions of:202

Our Capitals

The following Regulations and Guidelines prescribedunder the Securities and Exchange Board of India
Act, 1992;(iii) The Securities and Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulations, 2009;(iv) The Foreign Exchange Management Act, 1999 and theRules and Regulations made thereunder to the extent of
Foreign Direct Investment.

Integrated Annual Report 2021-22

203

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Annexure VA
We further report that –i.

The Board of Directors of the Company is duly constituted withproper balance of Executive Directors, Non-Executive Directors
and Independent Directors as on 31st March 2022 as under:First Quarter from 1st April, 2021 to 30th June, 2021 –
2,16,362 equity shares of ` 1 each.

ii.

Second Quarter from 1st July, 2021 to 30th September,
2021 –2,14,126 equity shares of ` 1/- each.

I.

Two Executive Directors i.e. Mr. Satish Pai and Mr. Praveen
Kumar Maheshwari;iii.

Third Quarter from 1st October, 2021 to 31st December,
2021 – 7,475equity shares of ` 1/- each.

II.

Three Non- Executive Non- Independent Directors i.e.
Mr. Kumar Mangalam Birla chairperson, Mrs. Rajashree
Birla and Mr. A K Agarwala, ; andiv.

Fourth Quarter from 1st January, 2022 to 31st March,2022 – 2,884 equity shares of ` 1/- each.

III.

Six Non-Executive Independent Directors, including one
woman director i.e. Mrs. Alka Bharucha, Mr. K.N. Bhandari,
Mr. Y.P. Dandiwala, Mr. Vikas Balia, Mr. Sudhir Mital and
Mr. Anant Maheshwari.

During the year the following changes in the composition of
the Board of Directors were carried out in compliance with theprovisions of the Act, Rules made thereunder and SEBI (LODR)
Regulations:
I.

II.

3.

Re- appointment of Mr. A. K. Agarwala (DIN: 00023684),
as a Director, Retired by Rotation and re- appointed in the
62nd Annual General Meeting held on 23rd August, 2021
Resignation of Mr. D. Bhattacharya, as a Non-Executive Non Independent Director w.e.f. 02nd March 2022.

Adequate notice is given to all directors to schedule the Board
Meetings, agenda and detailed notes on agenda were sent atleast 7 (seven) days in advance except for two Board Meetings
where consent for shorter notice was obtained from majority ofthe directors. System exists for seeking and obtaining further
information and clarifications on the agenda items before themeeting and for meaningful participation at the meeting.
Decisions at the meetings of the Board of Directors of theCompany were carried through on the basis of majority. There
were no dissenting views by any member of the Board of
Directors during the audit period.
We further report that there are adequate systems andprocesses in the Company commensurate with the size andoperations of the Company to monitor and ensure compliancewith applicable laws, rules, regulations and guidelines.
We further report that during the audit period, following
specific event / action has occurred during the year:
1.

2.

During the audit period, the Company has allotted its
equity shares under Employee Stock Option Schemes, as
follows:

4.

The Board of the Directors in its Board Meeting dated 06th
August, 2021, authorize the company to invest an amountnot exceeding ` 2,50,00,000/- (Rupees Two Crore fifty
lakhs only) for formation of the Legal entity i.e., Kabushiki
Kaisha (KK) i.e., a Joint-Stock Company in Japan subject toapprovals from RBI.
The Board of the Directors in its Board Meeting dated
20th January 2022, authorize the company to acquire
the extrusion business of Sapa Extrusion India Private
Limited located by the Company on a slump sale basis
as a going concern (as defined under Section 2(42c) of
the Income Tax Act, 1961) for an aggregate calculation of` 2,47,00,00,000/- (Indian Rupees Two Hundred and Forty
Seven Crores Only) (subject to certain adjustments agreed
between the Parties) (“Agreed Consideration”), as per theterms and conditions provided in the mutually agreed
Business Transfer Agreement dated 17th December, 2021.
The Board of the Directors in its Board Meeting dated
20th January 2022, approved the disinvest 100% equity
stake from the Company’s first-level step down wholly
owned subsidiary i.e. “Hindalco do Brasil Indústria eComércio de Alumina Ltda.” (held through A V Minerals
N.V., Netherlands) (herein referred to as “HDB”) by
accepting the offer made by the Brazilian firm “Terrabel
Empreedimentos Ltd” and / or any other “buyer” as
per the terms and conditions mutually agreed uponby the Company and the said buyer and / or any otherprospective buyer(s) in the best interest of the Company.

Annexure A
that the processes and practices we followed, provides areasonable basis for our opinion for the purpose of issueof the Secretarial Audit Report.

To,
The Members,
Hindalco Industries Limited
Secretarial Audit Report of even date is to be read along withthis letter.
1.

2.

3.

The compliance of provisions of all laws, rules, regulations,standards applicable to Hindalco Industries Limited (the‘Company’) is the responsibility of the management of theCompany. Our examination was limited to the verificationof records and procedures on test check basis for the
purpose of issue of the Secretarial Audit Report.
Maintenance of secretarial and other records ofapplicable laws is the responsibility of the managementof the Company. Our responsibility is to issue Secretarial
Audit Report, based on the audit of the relevant records
maintained and furnished to us by the Company, alongwith explanations where so required.
We have followed the audit practices and processes as
were appropriate to obtain reasonable assurance about
the correctness of the contents of the secretarial andother legal records, legal compliance mechanism andcorporate conduct. The verification was done on test
check basis to ensure that correct facts as reflected insecretarial and other records produced to us. We believe

4.

We have not verified the correctness and appropriatenessof financial records and Books of Accounts of theCompany.

5.

Wherever required, we have obtained the management
representation about the compliance of laws, rules andregulations and major events during the audit period.

6.

The Secretarial Audit Report is neither an assurance as tothe future viability of the Company nor of the efficacy oreffectiveness with which the management has conducted
the affairs of the Company.

For BNP & Associates
Company Secretaries[Firm Regn. No. P2014MH037400]
PR. No: 637/2019						
Place: Mumbai
Date: 26th May 2022

B. Narasimhan
FCS : 1303
ACS : 10440
UDIN: F001303D000363522

For BNP & Associates
Company Secretaries[Firm Regn. No. P2014MH037400]
PR. No: 637/2019						
Place: Mumbai
Date: 26th May 2022

B. Narasimhan
FCS : 1303
ACS : 10440
UDIN: F001303D000363522

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

204

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

205

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Annexure VB(c)SEBI (Share Based Employee Benefits and Sweat Equity)
Regulations, 2021;(i)

Decisions were taken through the majority of theBoard; andFor the financial year ended 31st March 2022

(d)

SEBI (Delisting of Equity Shares) Regulations, 2009;(ii)[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies(Appointment and Remuneration of Managerial Personnel) Rules, 2014](e)

SEBI (Buyback of Securities) Regulations, 2018;(f)

SEBI (Listing Obligations and Disclosure Requirements)
Regulations,2015

No dissenting views were expressed by any Board
member on any of the subject matters discussed,
which were required to be recorded as part of theminutes.

(g)

SEBI (Prohibition of Insider Trading) Regulations, 2015;(h)

SEBI (Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act anddealing with client; and(i)

The Foreign Exchange Management Act, 1999 and theRules and Regulations made thereunder.

2.

Board Process

FORM NO. - MR-3

SECRETARIAL AUDIT REPORT

To,(iii) Secretarial Standards (SS-1 and SS-2) issued by theInstitute of Company Secretaries of India respectively
relating to meetings of the Board and its Committees
and general meetings of the Company which havemandatory application to the Company.

The Members
Utkal Alumina International Limited
J 6 Jayadev Vihar Bhubaneswar 751013
We have conducted the Secretarial Audit of the complianceof applicable statutory provisions and the adherence to good
corporate practices by Utkal Alumina International Limited
CIN No. U13203OR1993PLC003416 (hereinafter called the‘Company’) for the audit period covering the financial year
ended on 31st March 2022 (the ‘audit period’).
We have conducted the Secretarial Review in a mannerthat provided us with a reasonable basis for evaluating theCompany’s corporate conducts / statutory compliances andfor expressing our opinion thereon.

(iv) The Securities Contracts (Regulation) Act, 1956 andthe Rules made thereunder
(v)

1.2

We are issuing this report based on:
(i)

(ii)

(i)

representations made, documents shown andinformation provided by the Company, its officers, agentsand authorized representatives during our conduct ofSecretarial Audit of the Company

		

(a)

The Act and Rules mentioned under paragraph
1.1 (i) and

		

(b)

The Secretarial Standard on meetings ofthe Board of Directors (SS-1) and Secretarial
Standard on General Meetings (SS-2) mentioned
under paragraph 1.1 (vi) above to which areapplicable to meetings of Board of Directors
and Committees constituted by the Board held
during the year, the 28th Annual General Meetingof the members held 30th November 2021 The
compliance of the provisions of the Rules madeunder the Act with regard to participation of
Directors through video conference for the
Board/Committee meeting(s) held during theyear, were verified based on the minutes of themeetings provided by the Company.

(i)Complied with the statutory provisions listed hereunder;
and

(ii)

Board processes and compliance mechanism are in place
to the extent, in the manner and subject to the reporting
made hereinafter.

(ii)

The members are requested to read this report along with
our letter of even date annexed to this report as Annexure-A.

1.1

206

During the period under review, the Company has, tothe best of our knowledge and belief and based on therecords, information, explanations and representations
furnished to us:

Our verification of the Company’s books, papers, minutes
books, soft copies of various records, scanned copies ofminutes of meetings of the Board, its committees, forms
and returns filed and other records maintained by theCompany, provided to us through electronic mode;

We hereby report that, in our opinion, during the Audit Period
covering the financial year ended on 31st March 2022, theCompany has: -1.

Foreign Exchange Management Act (FEMA), 1999 andthe Rules and Regulations made thereunder to theextent of Overseas Direct Investments and ExternalCommercial Borrowings

Compliance with specific statutory provisions

Complied with the provisions of the Act, Rules,
Regulations, Guidelines and Secretarial Standards
as mentioned above.
Generally complied with the applicable provisions /clauses of:

We further report that:

1.3

We have examined the books, papers, minutes books,
forms and returns filed and other records maintained by
the Company during the year in terms of the applicableprovisions / clauses of:During the period under review, provisions of the following
Regulations were not applicable to the Company:(i)

The Companies Act, 2013 (the Act) and the Rules madethereunder;(a)

SEBI (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;(ii)

The Depositories Act, 1996 and the Regulations and
Bye-laws framed thereunder;(b)

SEBI (Issue of Capital and Disclosure Requirements)
Regulations, 2018;

HINDALCO INDUSTRIES LIMITED

There are no other laws that were specifically applicable to
the Company during the period under review, considering
the nature of its business.

We further report that The Board of Directors of the Company as on 31st March
2022, comprised of:(i)

Six Non-Executive Non-Independent Directors thatare Mr Praveen Kumar Maheshwari, Mr. Indrajit
Pathak, Ms Pragnya Ram, Mr Surya Kanta Mishra,
Mr Anil Vasant Arya, Mr Rajesh Kumar
Gupta

2.2 The processes relating to the following changes in thecomposition of the Board of Directors and Key Managerial
Personnel during the year were carried out in compliancewith the provisions of the Act:(i)Re-appointment of Ms. Pragnya Ram as a Director(DIN: 02544268) who retired by rotation at 28th
Annual General Meeting held on 30th November
2021.

2.3 Adequate notices have been given to all the directors of
the Company to enable them to plan their schedules for
the Board meeting(s), except in respect of a few meetings
which were convened at a shorter notice for which
necessary consent was received, which were compliant
with the provisions of the Act as prescribed.
2.4 Notice for the Board meetings has been given to all the
directors at least seven days in advance except in respectof a for the few meetings convened at a shorter notice, atwhich more than one Independent Director was present
as required under Section 173 (3) of the Act and SS-1.

3.

Compliance Mechanism
We further report that there are reasonably adequate
systems and processes in the Company, commensuratewith its size and operations, to monitor and ensurecompliance with applicable laws, rules, regulations andguidelines.

4.

Specific events / actions
We further report that during the audit period underreview, as explained and represented by the management,
there were no specific events/actions in pursuance of
the above referred laws, rules, regulations, guidelines,
standards etc., which have a major bearing on the
Company’s affairs except for the following:•

Pursuant to an agreement between the Company
and Orissa Mining Corporation Limited (‘OMCL’), theCompany has agreed to issue 15% Fully Convertible
Cumulative Preference Shares amounting to Rs.
20 crores with face value of ` 10 each, at par inconsideration for transfer of license, mining leases
and all rights thereto, rendering of related technicalservices etc. by OMCL. The Company has decided
to issue Unsecured, Redeemable Non-Convertible
Debentures in lieu of the Preference shares to OMCL.
In terms of Debenture Subscription Agreement
entered into between the Company and OMCL, theBoard of Directors of the Company has passed a
resolution at its meeting held on September 21st, 2021
approving the issuance of one zero coupon Unsecured
Redeemable Non- Convertible Debentures of ` 3
Crores in favour of the Odisha Mining Corporation
Limited and subsequently, the Company has allotted
the One Zero Coupon Unsecured Redeemable NonConvertible Debentures of ` 3 Crores, in favour of the
Odisha Mining Corporation Limited, on September
21st, 2021.

2.5 Agenda and detailed notes on agenda circulated to all the
directors at least seven days before the Board meetings,
except for few meetings which were convened at a shorter
notice.
2.6 A system exists for directors to seek and obtain further
information and clarifications on the agenda items before
the meetings and to ensure their meaningful participation
at the meetings.
2.7 We note from the minutes examined that, at the Board
meetings held during the year:

Navneet Bathla
Associate Partner
ACS:43605 /CP No. 20939
UDIN: A043605D000335028

Place: Mumbai
Date: 17th May,2022

For BNP & Associates
Company Secretaries[Firm Regn. No. P2014MH037400]
PR No. 637/2019

Integrated Annual Report 2021-22

207

Corporate Overview

Annexure VB

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Annexure VI
Annexure A
secretarial and other records produced to us. We believethat the processes and practices we followed, provides areasonable basis for our opinion for the purpose of issueof the Secretarial Audit Report.

To,
The Members,
Utkal Alumina International Limited
Secretarial Audit Report of even date is to be read along withthis letter.
1.

2.

3.

The compliance of provisions of all laws, rules, regulations,standards applicable to Utkal Alumina International
Limited (the ‘Company’) is the responsibility of the
management of the Company. Our examination was
limited to the verification of records and procedures on
test check basis for the purpose of issue of the Secretarial
Audit Report.
Maintenance of secretarial and other records ofapplicable laws is the responsibility of the managementof the Company. Our responsibility is to issue Secretarial
Audit Report, based on the audit of the relevant records
maintained and furnished to us by the Company, alongwith explanations where so required.
We have followed the audit practices and processes as
were appropriate to obtain reasonable assurance about
the correctness of the contents of the secretarial andother legal records, legal compliance mechanism andcorporate conduct. The verification was done on test
check basis to ensure that correct facts as reflected in4.

Format for the Annual Report on CSR Activities
1.

For every Company in the Aditya Birla Group, reaching out to underserved communities is a part of our DNA. We believein the trusteeship concept. This entails transcending business interest and grappling with the “quality of life” challenges
that underserved communities face, and working towards making a meaningful differences to them.

We have not verified the correctness and appropriatenessof financial records and Books of Accounts of theCompany.

5.

Wherever required, we have obtained the management
representation about the compliance of laws, rules andregulations and major events during the audit period.

6.

The Secretarial Audit Report is neither an assurance as tothe future viability of the Company nor of the efficacy oreffectiveness with which the management has conducted
the affairs of the Company.

Brief Outline on CSR Policy of the Company:

Our vision is – “to actively contribute to the social and economic development of the underserved communities, lifting theburden of poverty and helping bring in inclusive growth, in so doing build a better, sustainable way of life for the weakersections of society and raise the countriy’s human development index”, (Mrs. Rajashree Birla, Chairperson, Aditya Birla
Centre for Community Initiatives and Rural development)
2.

Composition of CSR Committee:
Sl. Name of Director
No.

Navneet Bathla
Associate Partner
ACS:43605 /CP No. 20939
UDIN: A043605D000335028

Designation / Nature of Directorship

Number of meetingsof CSR committee held
during the year

Number of meetings of CSR
Committee attended during
the year1

Smt. Rajashree Birla

Chairperson/Non-Executive Director

1

1

2

Mr. Y.P. Dandiwala

Member/Independent Director

1

1

3

Mr. Satish Pai

Member/Managing Director

1

1

4

Mr. A.K. Agarwala

Member/Non-Executive Director

1

1

5

Mr. D. Bhattacharya

Member/Non-Executive Director

11* Mr. D Bhattacharya (Member/Non-Executive Director) Resigned w.e.f 2nd March, 2022.

Place: Mumbai
Date: 17th May,2022

For BNP & Associates
Company Secretaries[Firm Regn. No. P2014MH037400]
PR No. 637/2019

3.

Provide the web link where composition of CSR Committee, CSR policy and CSR projects approved by the Board
are disclosed on the website of the Company

www.hindalco.com
4.

Provide the details of Impact Assessment of CSR Projects carried out in pursuance of sub rule (3) of rule 8 of Companies(Corporate Social Responsibility Policy) Rules 2014 if applicable:

No Impact study has been carried out in this Financial Year
5.

Details of the Amount available for set off in pursuance of sub rule (3) of rule 7 of Companies (Corporate Social
Responsibility Policy) Rules 2014 and amount required for set off for financial year if any
Sl. Financial Year
No.
1

6.

Amount available for set off frompreceding financial year(` In Cr)

Amount required to be set off for thefinancial year if any(` In Cr)2021-22

12.36

Nil

Total

12.36

Nil

Average Net Profit of the Company as per Section 135(5)` 1,205.90 Crore
7.

(a)

Two percent of average net profit of the Company as per Section 135(5)		` 24.12 Crore(b)

Surplus arising out of CSR projects or programs or activities of previous financial years
Nil

208

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

209

Corporate Overview

Strategic Overview

Our Capitals

3

4

5

Item from thelist of activitiesin Schedule VII to
the Act

Local Area
(Yes/No)

Location of the ProjectStatutory Reports

Financial Statements

Annexure VI(c ) Amount required to be set off for the financial years , if any
		Nil

1

(d) Total CSR Obligation for the financial year (7a+7b-7c)
		` 24.12 Crore
8.

(a)

CSR Amount Spent or Unspent for the financial year

Total Amount Spent for
the Financial Year(` in Lakhs)

Amount Unspent (In `)Total Amount transferred to Unspent
CSR Account as per section 135(6).

1Amount transferred to any fund specified under
Schedule VII as per second proviso to section 135(5).

AmtDate of Transfer

Name of the Fund

AmountDate of Transfer

NA

NA

NA

NA

NA

10

11

3,755.00(b)2

Sr Name of the
No Project

Details of CSR amount spent against ongoing projects for the financial year: Nil
2

3

Sl. NameNo. of the
Project

4

Item from Local Area
the list of (Yes/No)
activities in
Schedule
VII to the
Act

5

6

7

8

Location of the Project Amount
Project
Duration allocated forthe project(In `)

9

AmountAmountMode ofMode of Implementation Spent in the Transferred to Implementation Through Implementing
Current FY Unspent CSR Direct
Agency(In `)
account for the (Yes/No)
project as per
Section 135(6)(In `)

State District

Name

2

Sr Name of the
No Project

3

4

5

Item from thelist of activitiesin Schedule VII to
the Act

Local Area
(Yes/No)

Location of the Project

State
1

2

210

Pre school
education

Promotingeducation,
including special
education andemployment
enhancing
vocational skills
School Education Promoting
Programeducation,
including special
education andemployment
enhancing
vocational skills

HINDALCO INDUSTRIES LIMITED

6

Jharkhand,
Chhattisgarh, UP,
Odisha, Kerala,
Maharashtra,
KarnatakaHazaribag,
Raigarh, Singrauli,Sambalpur,
Sonebhadra,
Balarampur,
Lohardaga,
Ernakulam, Raigad,
Belagavi

39.56

1168.616

YES

YES

NA

NA

CSR
Registration
NumberName

CSR
Registration
NumberKarnataka, UP,
Chatisgarh,Jharkhand, MP,
Chhattisgarh

Belagavi,
Sonebhadra,
Balarampur,
Lohardaga,
Singrauli, Raigarh

20.233

YES

NA

NA

Raigad,Latehar
Hazaribag,
Lohardaga

22.116

YES

NA

NA

Vocational
and Technical
Education

Promotingeducation,
including special
education andemployment
enhancing
vocational skills

Taloja,Chakla,
Maharashtra
Dumri, Lohardaga Jharkhand

5

SchoolInfrastructure

Promotingeducation,
including special
education andemployment
enhancing
vocational skills

BalgaumBelur,
Taloja, Mahan,
Renukoot,
Lohardaga, Samri,
Garepalma

Karnataka,
Belagavi, Howrah,
West Bengal
Raigad, Singrauli,
Maharashtra, MP, Sonebhadra,
UP, Jharkhand,
Lohardaga,
Chhattisgarh
Balarampur, Raigarh

1033.197

YES

NA

NA

6

Preventive health Eradicating
hunger, poverty
and malnutrition,
promoting healthcare, sanitationand safe drinking
water.

Belagaum,
Alupuram,
Renukoot,
Renusagar,
Lohardaga,
Samri,Mouda,
Aditya, Mahan,
Garepalma
Kathautia,

Karnataka Kerala
UP, Jharkhand,
Maharashtra,
Chhattisgarh,
Odisha, MP

Belagavi Ernakulam,
Sonebhadra,
Lohardaga,
Balarampur,
Nagpur, Sambalpur,
Singrauli, Raigarh,
Palamau

120.977

YES

NA

NA

7

Curative HealthCare program

Belagaum,
Taloja Renukoot,Renusagar,
Lohardaga, Samri,
Mouda, Mahan,
Garepalma

Karnataka,
Maharashtra,
UP, Jharkhand,
Chhattisgarh, MP

Belagavi, Raigad,
Sonebhadra,
Lohardaga,
Balarampur, Nagpur,
Raigarh, Raigarh

234.544

YES

NA

NA

8

Reproductive and EradicatingChild Healthhunger, poverty
and malnutrition,
promoting healthcare, sanitationand safe drinking
water.

Renukoot,
UP, Jharkhand,
Sonebhadra,
Renusagar,
Chhattisgarh, MP, Lohardaga,
Lohardaga, Samri, Jharkhand,
Balarampur,
Mahan, Gare
Singrauli, Palamu,
Palma, Kathautia,
Raigarh, Hazaribag
Dumri146.541

YES

NA

NA

NA

NA

District

4

8

Name

State

Belgaum,
Renukoot,
Renusagar, Samri,
Lohardaga,
Mahan, Gare
Palma

AmountMode of Mode of Implementation
spent for
Implemen- -Through Implementing
the project tation Direct
Agency(` In Lakhs)(Yes/No)

DistrictRenukoot,
UP, Chatisgarh, Sonebhadra,
Renusagar, Samri, Jharkhand,
Balarampur,
Lohardaga,
Madhya Pradesh, Lohardaga,
Mahan, Belagaum, Karnataka
Singrauli, Belagavi,
Kathautia
Palamau
Dumri,Gare
Palma, Mahan,
Aditya, Renukoot,Renusagar, Samri,
Lohardaga,
Alupuram, Taloja,
Muri,Belagaum

7

8

Education support Promoting
programs
education,
including special
education andemployment
enhancing
vocational skills

Nil

1

7

3

CSR
Registration
Number(c ) Details of CSR amount spent against other than ongoing projects for the financial year:

6

AmountMode of Mode of Implementation
spent for
Implemen- -Through Implementing
the project tation Direct
Agency(` In Lakhs)(Yes/No)

Eradicating
hunger, poverty
and malnutrition,
promoting healthcare, sanitationand safe drinking
water.

Integrated Annual Report 2021-22

211

Corporate Overview

Strategic Overview

Our Capitals

3

4

5

Item from thelist of activitiesin Schedule VII to
the Act

Local Area
(Yes/No)

Location of the ProjectStatutory Reports

Financial Statements

Annexure VI
1

2

Sr Name of the
No Project4

5

Local Area
(Yes/No)

Location of the Project

6

State

District

7

8

1

AmountMode of Mode of Implementation
spent for
Implemen- -Through Implementing
the project tation Direct
Agency(` In Lakhs)(Yes/No)
Name

CSR
Registration
Number9

Quality / Support Eradicating
Programhunger, poverty
and malnutrition,
promoting healthcare, sanitationand safe drinking
water.

Belur, Silvassa,
Renukoot,
Renusagar,
Lohardaga,
Mahan, Gare
Palma

West Bengal, UTof DNH & DD,
UP, Jharkhand,
MP, Chatisgarh

Howrah, Dadra
and Nagar
Haveli, Singrauli,
Sonebhadra,
Lohardaga, Raigarh

44.791

YES

NA

NA

10

HealthInfrastructure

Eradicating
hunger, poverty
and malnutrition,
promoting healthcare, sanitationand safe drinking
water.

Belgaum,
Alupuram,
Renukoot,
Renusagar,
Lohardaga, Samri,
Mouda, Mahan,Gare Palma

Karnataka,
Kerala, MP, UP,
Chhattisgarh,Jharkhand,
Maharashtra

Belagavi, Ernakulam,Singrauli,
Sonebhadra,
Raigarh, Lohardaga,
Nagpur

106.621

YES

NA

NA

11

Agriculture andFarm Based

Ensuring
environmental
sustainability,
ecological balance,
animal welfare,agroforestry,
conservationof natural
resources andmaintaining qualityof soils, air andwater.

Belagaum,
Karnataka, UP,
Mahan, Aditya,
MP, Odisha,
Garepalma,
Chhattisgarh,
Renukoot,
Renusagar, Samri

Belagavi,
Singrauli, Raigarh,
Sonebhadra,
Balarampur

78.719

YES

NA

NA

12

AnimalHusbandary
Based

Ensuring
environmental
sustainability,
ecological balance,
animal welfare,agroforestry,
conservationof natural
resources andmaintaining qualityof soils, air andwater.

Belagaum,
Karnataka, UP,
Renukoot,
Chattisgarh, MP
Renusagar, Samri,
Mahan

Belagavi,
Sonebhadra,
Balarampur,
Singrauli

32.075

YES

NA

NA

Ensuring
environmental
sustainability,
ecological balance,
animal welfare,agroforestry,
conservationof natural
resources andmaintaining qualityof soils, air andwater.

Mahan, Renukoot,Renusagar,
Lohardaga,
Samri, Belagaum,
Garepalma

13

212

3
Item from thelist of activitiesin Schedule VII to
the Act

Non farm & Skills
Based Income
generation
ProgramHINDALCO INDUSTRIES LIMITEDMP, UP,
Jharkhand,
Chattisgarh,
KarnatakaSingrauli,
Sonebhadra,
Lohardaga,
Balarampur,
Belagavi, Raigarh

90.065

YES

NA

NA

2

Sr Name of the
No Project

State

7

8

District

Name

CSR
Registration
NumberLatehar,
Soenbhadra,
Lohardaga,
Balarampur,
Belagavi, Raigarh

82.712

YES

NA

NA

Ensuring
Mahan, Renukoot, MP, UP,
environmental
Lohardaga, Samri Jharkhand,sustainability,
Chattisgarh
ecological balance,
animal welfare,agroforestry,
conservationof natural
resources andmaintaining qualityof soils, air andwater.

Singrauli,
Sonebhadra,
Lohardaga,
Balarampur

75.106

YES

NA

NA

Institutionalbuilding &strengthening

Promotinggender equality,
empowering
women, setting
up orphanages &reduce inequalities

Karnataka, MP,
UP, Jharkhand

Belagavi, Singrauli,
Sonebhadra,
Lohardaga, Palamau

49.613

YES

NA

NA

17

Social Security

PromotingMahan, Gare
MP, Chattisgarh,
gender equality,
Palma, Lohardaga, Jharkhand
empowering
Kathautia, Chakla
women, setting
up orphanages &reduce inequalities

Singrauli, Raigarh,
Lohardaga, Palamau,
Latehar32.036

YES

NA

NA

18

Awareness
programmes

Promotinggender equality,
empowering
women, setting
up orphanages &reduce inequalities

Belagavi, Raigad,
Sonebhadra,
Lohardaga, Raigarh,Singrauli, Palamau,
Balarampur,
Hazaribagh, Latehar

61.096

YES

NA

NA

14

Natural Resource
conservation
programs & Nonconventional
EnergyEnsuring
environmental
sustainability,
ecological balance,
animal welfare,agroforestry,
conservationof natural
resources andmaintaining qualityof soils, air andwater.

15

Livelihood
Infrastructure

16

Chakla Renukoot, Jharkhand UP,
Chattisgarh,
Renusagar,
Lohardaga,
Karnataka
Samri, Balgaum,
Garepalma

6

AmountMode of Mode of Implementation
spent for
Implemen- -Through Implementing
the project tation Direct
Agency(` In Lakhs)(Yes/No)

Belgaum, Mahan,
Renukoot,
Lohardaga,
Kathautia

Belagaum,
Taloja, Renukoot,Lohardaga, Samri,
Mahan, Kathautia,
Gare Palma,
Dumri, Chakla

Karnataka,
Maharashtra,
UP, Jharkhand,
Chhattisgar, MP

Integrated Annual Report 2021-22

213

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Annexure VI
1

2

Sr Name of the
No Project

19

20

21

22

23

24

Social Events tominimise causesof poverty

3

4

5

Item from thelist of activitiesin Schedule VII to
the Act

Local Area
(Yes/No)

Location of the Project

Promotinggender equality,
empowering
women, setting
up orphanages &reduce inequalities

Belgaum,
Alupuram,
Renukoot,
Renusagar,
Lohardaga, Samri,
Mahan, Kathautia

Karnataka,
Kerala, MP, UP,
Chhatisgarh,Jharkhand

Belagavi,Ernakulam,Singrauli,
Sonebhadra,
Balarampur,
Palamau

13.688Belagavi, Singrauli,Sambalpur,
Sonebhadra,
Raigarh17.571

Disaster Relief
Programmes

Taloja, Silvassa,
Mahan

Maharashtra,
UT of DNH &DD, MP

Muri, Renukoot,Jharkhand, UP,
Renusagar,
Chattisgarh,
Lohardaga, Samri, Odisha
Aditya214

Raigad, Dadra& Nagar Haveli,
Singrauli

4.841

NA

NA

NA

Ranchi, Sonebhadra,
Lohardaga,
Balarampur,
Sambalpur

49.029

Two percent of Average Net Profit of the Company as per Section 135(5)(ii)

CSR Amount spent for Financial Year

COVID 19 relief

Eradicating
hunger, poverty
and malnutrition,
promoting healthcare, sanitationand safe drinking
water.

West Bengal,
Maharashtra,
UP, Jharkhand,
Chattisgarh, MP

Howrah, Raigad,
Ernakulam,
Sonebhadra,
Lohardaga,
Balarampur, Raigarh

82.608Amount Spent on Impact Assessment, if applicable

2,412.00
3,755.00(iii) CSR Amount claimed during the Financial year

2,585.00(iv) Excess Amount Spent for Financial Year [ii-i]

1,170.00(v)

CSR amount excess spent of the previous financial years, if any

1,236.00(vi) Amount available for set-off in succeeding financial Year [iii-iv]

2,406.00

(a)

YES

NA

Details of Unspent CSR Amount for the preceding three Financial Years: NilPrecedingFinancial Year

Amount Transferred
to Unspent CSR
Account under
Section 135(6)

NA

(b)

Amount spentin Reporting
Financial Year(In `)

Amount Transferred to any fund specified in
Schedule VII as per Section 135(6) if any
Name of theFund

Amt in `Date ofTransfer

Amount remaining
to be spent insucceeding financial
years (In `)Details of CSR Amount Spent in the financial year for ongoing projects of the preceding financial year(s): Nil
2

3

Sl. Project IDNo.

48.537

Amount Spent in Administrative Overheads:` In Lakhs(i)1

Belagavi, Raigad,
Sonebhadra,
Lohardaga,
Singrauli, Raigarh

Belur, Taloja,
Alupuram,
Renukoot,
Renusagar.
Lohardaga,
Samri, Mahan,
Garepalma,

ParticularNA

Karnataka,
Maharashtra,
Jharkhand, MP,
UP, Chhattisgarh

HINDALCO INDUSTRIES LIMITEDNA

Excess Amount for Set off if any:

Sl
No

9.

Rural development Belagaum,projects.
Taloja, Renukoot,Renusagar,
Lohardaga,
Mahan,
Garepalma

		Nil

YES

CSR
Registration
Number(g)

2,579.00

Rural
Infrastructure
Development		` 100.03 lakhs
(e)

YES

Name

Total Amount Spent for the financial year (8b+8c+8d+8e)		` 3754.922 Lakhs including Administrative Overheads

Sl.
No.

Total (In lakhs)
(d)

(f)

8

AmountMode of Mode of Implementation
spent for
Implemen- -Through Implementing
the project tation Direct
Agency(` In Lakhs)(Yes/No)

District

Belgaum, Mahan, Karnataka, MP,
Aditya, Renukoot, Odisha, UP,
Gare Palma
Chhattisgarh

Promotion of rural Protection ofsportsnational heritage,art and culture.
Training topromote ruralsports, Paralympic
Sports & Olympic
Sports7

State

Promotion ofProtection ofheritage/culture/ national heritage,
Sportsart and culture.
Training topromote ruralsports, Paralympic
Sports & Olympic
SportsDisasterManagement &Relief Activities.

6

YES

NA

Name of the
Project

4

5

Financial Year Projectin which the Duration
project wascommenced

NA

6

7

Total Amountallocated for
the Project(In `)

Amount spenton the Projectin the Reporting
Financial Year(In `)

8

9

Cumulative Amount
Status of theSpent at the end of Project Completed/
Reporting Financial
OngoingYear(In `)

NA
10.

In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired
through CSR spent in the Financial Year

Date of creation or Amount of CSR
Details of the entity or public authority or beneficiaries underAcquisition of the spent for creation or whose name such capital asset is registered, their address etc.
capital asset (s)acquisition of capital Name (Place) Address
Contact Number
assets (s) (`)

Provide details of the capital
asset (s) creayed or acqired(including complete address andlocation of the capital asset)

12.02.2022

59,800Barahwatola

Hand Pump, (Gram Panchayat)
Near Arjun Sahu House,
Gram: barahwatola,
Post: Daga Bargawan,
Tehsil: Deosar, Dist. Singrauli,
Madhya Pradesh, Pin: 486886

7471148259

HandPump, (Gram Panchayat)
Near Arjun Sahu House,
Gram: barahwatola,
Post: Daga Bargawan,
Tehsil: Deosar, Dist. Singrauli,
Madhya Pradesh, Pin: 486886

14.02.2022

50,200Bargawan

Hand pump, (Gram Panchayat) 9617909136
Near Boys Hostel (Aadiwasi),
Gram: Bargawan,
Post: Daga, Tehsil: Deosar,Dist. Singrauli, Madhya Pradesh,
Pin: 486886

Hand pump, (Gram Panchayat )Near Boys Hostel (Aadiwasi),
Gram: Bargawan, Post: Daga,
Tehsil: Deosar, Dist. Singrauli,
Madhya Pradesh, Pin: 486886

3654.892

Integrated Annual Report 2021-22

215

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Annexure VI
Date of creation or Amount of CSR
Details of the entity or public authority or beneficiaries underAcquisition of the spent for creation or whose name such capital asset is registered, their address etc.
capital asset (s)acquisition of capital Name (Place) Address
Contact Number
assets (s) (`)

Provide details of the capital
asset (s) creayed or acqired(including complete address andlocation of the capital asset)

22.02.2022

62,200Daga

Hand pump , (Gram Panchayat)
Near ITI Collage , Gram: Daga,
Post: Daga Bargawan,
Tehsil: Deosar, Dist. Singrauli,
Madhya Pradesh, Pin: 486886

Hand pump , (Gram Panchayat )Near ITI Collage , Gram: Daga,
Post: Daga Bargawan, Tehsil:
Deosar, Dist. Singrauli,
Madhya Pradesh, Pin: 486886

24.02.2022

62,200

Kanai

Hand pump , (Gram Panchayat) 8463075287
Near BudhSagar house,
Gram: Kanei, Post: Daga
Bargawan, Tehsil: Deosar,Dist. Singrauli, Madhya Pradesh,
Pin: 486886

Hand pump , (Gram Panchayat)
Near BudhSagar house,
Gram: Kanei, Post: Daga Bargawan,
Tehsil: Deosar, Dist. Singrauli,
Madhya Pradesh, Pin: 486886

23.02.2022

52,600Bareniya

Hand pump , (Gram Panchayat ) 9669722567
Near Hindalco Gate No 4,
Gram: Bareniya, Post: Daga
Bargawan, Tehsil: Deosar,Dist. Singrauli, Madhya Pradesh,
Pin: 486886

Hand pump , (Gram Panchayat )Near Hindalco Gate No 4,
Gram: Bareniya, Post: Daga
Bargawan, Tehsil: Deosar,Dist. Singrauli, Madhya Pradesh,
Pin: 486886

25.02.2022

73,000Bhalugarh

Hand pump, (Gram Panchayat) 9753350660
Near Orphanage,
Gram: Bhalugadh,
Post: Gondwali, Tehsil: Chitrangi,Dist. Singrauli, Madhya Pradesh,
Pin: 486892

Hand pump, (Gram Panchayat )Near Orphanage, Gram: Bhalugadh,
Post: Gondwali, Tehsil: Chitrangi,Dist. Singrauli, Madhya Pradesh,
Pin: 486892

Hand pump , (Gram Panchayat) 8815915171
Vishwakarma Basti,
Gram: Badokhar, Post: Daga
Bargawan, Tehsil: Deosar,Dist. Singrauli, Madhya Pradesh,
Pin: 486886

Hand pump , (Gram Panchayat)
Vishwakarma Basti,
Gram: Badokhar, Post: Daga
Bargawan, Tehsil: Deosar,Dist. Singrauli, Madhya Pradesh,
Pin: 486886

Hand pump, (Gram Panchayat ) 8435382011
Pahridand, Gram: Jobgadh,
Post: Bargawan, Tehsil: Deosar,Dist. Singrauli, Madhya Pradesh,
Pin: 486886

Hand pump, (Gram Panchayat )Pahridand, Gram: Jobgadh,
Post: Bargawan, Tehsil: Deosar,Dist. Singrauli, Madhya Pradesh,
Pin: 486886

Hand pump, (Gram Panchayat ) 7999247827
Near Higher Secondary School,
Gram: Bagbudwa,
Post: Chanduwar, Tehsil: Deosar,Dist. Singrauli, Madhya Pradesh,
Pin: 486881

Hand pump, (Gram Panchayat )Near Higher Secondary School,
Gram: Bagbudwa, Post: Chanduwar,
Tehsil: Deosar, Dist. Singrauli,
Madhya Pradesh, Pin: 486881

Hand pump, (Gram Panchayat) 8965990357
Jogni, Gram: Sajhar,
Post: Chanduwar, Tehsil: Deosar,Dist. Singrauli, Madhya Pradesh,
Pin: 486881

Hand pump, (Gram Panchayat )Jogni, Gram: Sajhar,
Post: Chanduwar, Tehsil: Deosar,Dist. Singrauli, Madhya Pradesh,
Pin: 486881

21.02.2022

15.02.2022

08.03.2022

08.03.2022

71,80057,40071,80069,400

Badokhar

KhekhdaBaghbudwa

Sajhar7987595504

Date of creation or Amount of CSR
Details of the entity or public authority or beneficiaries underAcquisition of the spent for creation or whose name such capital asset is registered, their address etc.
capital asset (s)acquisition of capital Name (Place) Address
Contact Number
assets (s) (`)

Provide details of the capital
asset (s) creayed or acqired(including complete address andlocation of the capital asset)

02.03.2022

1,29,200

BaghadihHand pump, (Gram Panchayat)
Adiwasi Basti Lahwabadand,
Gram: Baghadih, Post: Odgadi,
Tehsil: Deosar, Dist. Singrauli,
Madhya Pradesh, Pin: 486899

9993459330

Hand pump, (Gram Panchayat )Adiwasi Basti Lahwabadand,
Gram: Baghadih, Post: Odgadi,
Tehsil: Deosar, Dist. Singrauli,
Madhya Pradesh, Pin: 486899

05.03.2022

1,32,800

OrgadiHand pump, (Gram Panchayat)
Semradand & Chuna Bhatta ,Gram: Odgadi, Post: Odgadi,
Tehsil: Deosar, Dist. Singrauli,
Madhya Pradesh, Pin: 486886

8889434071

Hand pump, (Gram Panchayat )Semradand & Chuna Bhatta , Gram:
Odgadi, Post: Odgadi,
Tehsil: Deosar, Dist. Singrauli,
Madhya Pradesh, Pin: 486886

26.02.2022

73,960GidherHand pump , (Gram Panchayat)
Adiwasi Basti Inside Gidher
Tower on Durghata Devi Road,
Gram: Gidher, Post: Odgadi,
Tehsil: Deosar, Dist. Singrauli
Madhya Pradesh, Pin: 486886

8463012902

Hand pump , (Gram Panchayat )Adiwasi Basti Inside Gidher Tower
on Durghata Devi Road,
Gram: Gidher, Post: Odgadi,
Tehsil: Deosar, Dist. Singrauli
Madhya Pradesh, Pin: 486886

26.02.2022

59,800PokhraHand pump, (Gram Panchayat )Near Upswastha Kendra,
Gram: Pokhara, Post: Pokhra,
Tehsil: Deosar, Dist. Singrauli,
Madhya Pradesh, Pin: 486892

7354625044

Hand pump, (Gram Panchayat )Near Upswastha Kendra,
Gram: Pokhara, Post: Pokhra,
Tehsil: Deosar, Dist. Singrauli,
Madhya Pradesh, Pin: 486892

27.02.2022

68,200Dharsada

Hand pump, (Gram Panchayat)
Near Shivdhari Bais house,
Gram: Dharsada, Post: Pateri,Tehsil: Chitrangi, Dist. Singrauli,
Madhya Pradesh, Pin: 486892

9630028960

Hand pump, (Gram Panchayat)
Near Shivdhari Bais house,
Gram: Dharsada, Post: Pateri,Tehsil: Chitrangi, Dist. Singrauli,
Madhya Pradesh, Pin: 486892

28.02.2022

73,000Ghinhagaon

Hand pump, (Gram Panchayat)
Near Shiv Madir, Gram:
Ghinhagao, Post: Pateri,Tehsil: Deosar, Dist. Singrauli,
Madhya Pradesh, Pin: 486892

6268218489

Hand pump, (Gram Panchayat )Near Shiv Madir, Gram: Ghinhagao,
Post: Pateri, Tehsil: Deosar,Dist. Singrauli, Madhya Pradesh,
Pin: 486892

28.02.2022

1,31,600

Majhigawan

Hand pump , (Gram Panchayat )Karri Tola & Sakra Tola,
Gram: Majhigawan, Post:
Pokhara, Tehsil: Deosar,Dist. Singrauli Madhya Pradesh,
Pin: 486892

7000062251

Hand pump , (Gram Panchayat )Karri Tola & Sakra Tola,
Gram: Majhigawan, Post: Pokhara,
Tehsil: Deosar, Dist. Singrauli
Madhya Pradesh, Pin: 486892

11.

Specify the reason(s), if the company has failed to spend two percent of the average net profit as per Section 135(5) -Not applicable

Mr. Satish Pai(Managing Director)(DIN: 06646758)

Mrs. Rajashree Birla(Chairman, CSR Committee)(DIN: 00022995)

Place : Mumbai
Dated : 6th May, 2022

216

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

217

218
HINDALCO INDUSTRIES LIMITED
Novelis South America Holdings LLC*

18

Germany

26 Novelis Aluminium Beteiligungs GmbH*

Novelis Europe Holdings Limited*

UnitedKingdom

France30 Novelis PAE SAS*

372.70
49.10

USD

4.04

EUR
INR

33.96

217.10EUR
INR

1,824.91

53.86

EUR
INR

452.71

INR

5.00

CHF

9,559.71

6,000.59

9,582.94--

6,396.00

48,552.04

Total
Liabilities

-

-

1.04

7.90

0.70

5.29

1,429.88

10,854.23

-

-

-

-

201.92

0.17

0.12

0.04

38.05

1.14

6.22

3,951.25

6.33

0.76

3.67

18.80

Total
Liabilities

210.701,599.39

18.04

151.61(3.99)(33.55)23.87

200.63443.41

3,647.96

0.02

0.18

4.47

37.58

371.202,817.79

128.26

1,279.67

755.12

5,732.09

38.66

324.96

1,047.83

8,808.09

187.32

1,574.62

690.16

5,677.95

0.05

0.39

1,604.65

13,488.72

572.35

4,344.74

416.72

4,157.63

495.323,760.00

16.58

139.40834.73

7,016.73

109.60921.28241.75

1,988.86--

1,259.39

10,586.40

0.14

1.08

142.361,420.36

Investments

Investments

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Shares, Debenture,
Bonds & Others

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

90.04

11.63

41.93

651.940.05

137.87233.42-

Shares, Debenture,
Bonds & Others

-

-

11.70

101.26--315.22

2,728.83

829.77

6,728.53--

3,446.03

29,831.71

44.59

332.15466.044,742.62

3,173,731.00

19,822.81

13,967.20

19,528.52--

6,167.00

45,940.47

Turnover/
Revenues

-

-

-

-

-

-

682.24

5,082.27

-

-

-

-

87.38

0.41

-

-

57.58

2.65

126.65

4,741.65

3.51

3.61

3.65

46.36

Turnover/
Revenues

-

-

2.31

17.19

1.55

11.52

(51.11)(380.74)

-

-

-

-

(1.53)

-

-

-

7.72

0.34

0.47

602.18

0.05

4.44

2.43

1.38

117.54647.38905.14--(2.00)(14.90)(20.55)(153.09)

0.23

2.00

(135.59)(1,173.75)

11.14

96.42

2.80

22.66

-

-

(113.18)(979.78)50.09

373.1329.77

302.95--(0.02)(0.15)(51.05)(441.89)

0.86

7.40

0.03

0.21

-

-

0.00

0.02

4.21

31.33

4.68

47.57

64,714.00 18,818.00

404.202,534.15

3,543.18

-

-

32.00

238.38

Profit/(Loss) Provision
before Tax
for Tax

-

-

41.98

312.7628.14

209.63617.65

4,601.12--(33.57)(250.04)(5.99)(0.39)

0.03(0.00)

20.97

2.24

8.32

1,701.34

0.22

3.60

3.08

4.21

Profit/(Loss) Provision
before Tax
for Tax

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

100

100

100

100

100

100

100

100

100

74

100

100

97

100

74

100

100

100

Figures INR in Crore & FC in Million

-

-

39.68

295.57

26.59

198.11

663.62

4,943.54--(33.57)(250.04)(4.46)(0.39)

0.03(0.00)

13.25

1.90

7.85

1,099.16

0.17(0.84)

0.65

2.84

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(20.55)(153.09)

0.25

2.15

(84.54)(731.86)

10.28

89.02

2.77

22.46

-

-

(113.18)(979.79)45.88

341.7925.10

255.3845,896.00

286.66

1,886.78

2,638.03

-

-

34.00

253.28

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

100

100

100

100

100

100

100

100

100

100

100

100

100

Gain/Loss Profit/(Loss) Proposed
% of
from
after Tax. Dividend
Share
Discontinued
Holding
Operations

-

-

-

-

-

-

(5.14)(38.33)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Gain/Loss Profit/(Loss) Proposed
% of
from
after Tax. Dividend
Share
Discontinued
Holding
Operations

Statutory Reports

31

Ireland

29 Novelis Aluminium Holding Unlimited
Company*

Italy

41.14

0.03

EUR
INR

0.21

340.80EUR
INR

2,864.73

201.01USD
INR

1,525.87

INR

146.10GBP

12,931.85

9,751.96

15,573.88--

5,735.00

43,534.39

Total Assets

-

-

58.88

446.9540.24

305.503,079.32

23,375.15

1,463.66

11,109.92

1,469.84

11,156.83

276.68

1.38

0.24

0.01

133.06

20.56

112.4913,050.72

35.98

137.93238.6432.45

Total Assets

123,119.00 2,070,454.00 1,530,558.00

768.992,792.85

4,460.18(0.01)(0.05)(661.04)(5,017.95)

Reserves(0.00)(0.01)(126.13)(957.46)(83.10)(630.78)

169.44

1,286.26

1,463.66

11,109.92(188.89)(1,433.80)

22.74(0.39)

0.01(0.05)

45.01

9.51

17.71

2,847.99(2.83)

132.37200.72

13.60

Reserves

Our Capitals

28 Novelis Italia SPA*Switzerland

Germany

25 Novelis Deutschland GmbH*

Novelis Switzerland SA*

UnitedKingdom

24 Novelis Services Limited*

1,457.60

416,777.00

KRW
INR

2,603.15

958.53

BRL
INR

1,530.77

0.01

USD
INR

0.05

0.04

USD
INR

0.30

INR

Capital0.00

USD

Reportingcurrency

0.01

183.97USD
INR

1,396.52

122.64USD
INR

930.981,480.00

USD
INR

11,234.67

-

USD
INR

-

1,658.74

USD
INR

12,590.63

52.02

1.6

0.10

0.01

50.00

9.90

88.56

6,251.48

29.93

4.80

34.25

0.05

Capital

INR

INR

INR

INR

INR

INR

INR

INR

INR

INR

INR

INR

INR

Reportingcurrency

Strategic Overview

27

UnitedKingdom

23 Novelis UK Ltd*

22 Novelis Korea Limited*

South Korea

BrazilNovelis do Brasil Ltda.*

21

USA

MexicoNovelis Corporation*

Country

USA

CanadaCanadaCanadaCanadaNetherlands

India

India

India

India

India

India

India

India

20 Novelis de Mexico SA de CV*

19

Sr. Name of the Subsidiary Company

4260856 Canada Inc.*

12 Birla Copper ASOJ Private Limited (Erstwhile
Ryker Base Pvt Ltd)

17

Kosala Livelihood and Social Foundation

11

4260848 Canada Inc.*

Utkal Alumina Social Welfare Foundation

10

16

East Coast Bauxite Mining Co.Pvt.Ltd.

9

Novelis Inc.*

Dahej Harbour and Infrastructure Limited

8

15

Lucknow Finance Company Limited

7

A V Metals Inc. #*Hindalco-Almex Aerospace Limited

6

14

Utkal Alumina International Limited

5

A V Minerals ( Netherlands) N.V. *India

Suvas Holding Limited

4

13

India

Renukeshwar Investment and Finance
Limited

3

India

Renuka Investment and Finance Limited

2

India

Minerals and Minerals Limited

Country

1

Sr. Name of the Subsidiary Company

Figures INR in Crore & FC in Million

FINANCIAL INFORMATION RELATING TO SUBSIDIARY COMPANIES FOR THE YEAR ENDED 31ST MARCH 2022 Sec.129(3)Annexure VII

Corporate Overview
Financial Statements

Integrated Annual Report 2021-22

219

220
HINDALCO INDUSTRIES LIMITED
UAE, Dubai

36 Novelis MEA Ltd*

USA

USA

40 Novelis Services (North America) Inc.*

41

USA

USA

50 Novelis ALR Rolled Products, Inc.*

51

USA

USA

USA

54 Novelis ALR Recycling of Ohio, LLC*

55 Novelis ALR Aluminum LLC*

56 Novelis ALR Aluminum-Alabama LLC*

-

USD

0.32

USD
INR

2.44

214.04USD
INR

1,624.81

24.22

USD
INR

183.88

0.00

USD
INR

0.02

INR

307.41

USD

0.00

0.03

(0.63)(4.75)

134.39

1,020.13

1.29

9.76

(2.11)(15.99)(58.47)(443.83)

1.56

0.00

0.03

5.11

38.81

406.003,081.93

112.18851.5414.38

109.17710.295,391.81

3.05

23.11

1,750.87

13,290.83

3,000.89

22,779.76

2,104.87

15,978.07

113.08950.58498.14

4,187.33

516.43

4,341.14

Total Assets

-

5.52

41.90

0.00

0.00

0.29

2.22

0.01

0.10

130,403.02

41.31

4,388.30

5,252.79

49.06

58.72

269.36

2,044.75

590.64

4,964.89

253.66

1,925.56

1,550.52

11,769.97

1,289.95

10,612.43

Total Assets

-

-

5.42

41.12

57.57

436.9986.67

657.9016.49

125.15461.353,502.09

0.38

2.90

412.91

3,134.42

617.21

4,685.26

787.94

5,981.28

68.97

579.77356.82

2,999.39

104.15875.48

Total
Liabilities

-

5.64

42.80

-

-

0.29

2.22

0.01

0.10

50,894.05

16.12

2,579.48

3,087.64

15.85

18.97

207.75

1,577.01

570.64

4,796.77

337.442,561.51

1,443.76

10,959.54

1,076.67

8,857.79

Total
Liabilities

Investments

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Shares, Debenture,
Bonds & Others

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Shares, Debenture,
Bonds & Others

Investments

-

-

-

-

532.093,963.76

32.48

241.94--706.505,263.00--

669.63

4,988.34

-

-

-

-

300.972,605.47

652.595,649.35

0.02

0.17

Turnover/
Revenues

-

-

-

-

-

-

-

-

-

73.41

0.02

3,438.01

3,990.80

8.38

9.73

743.585,539.20

99.09

857.83----

1,206.50

9,783.46

Turnover/
Revenues-(0.05)(0.36)

-

-

-

-

-

-

-

-

127.07147.50

0.13

0.15

-

-

-

-

1.81

13.48

(8.43)(62.77)

0.08

0.61

-

-

(0.29)(2.16)

89.66

667.940.09

0.66(0.25)(1.88)(17.16)(127.84)

0.78

5.84

(31.38)(233.78)

1.91

14.22

(18.56)(138.24)(2.45)(21.19)(50.31)(435.48)

0.04

0.34

-

-

-

-

-

-

-

-

(0.61)(4.57)--(0.96)(7.12)(34.02)(253.46)(1.32)(9.86)(45.38)(338.05)

0.06

0.51

1.29

11.15

0.04

0.34

Profit/(Loss) Provision
before Tax
for Tax-(0.40)(3.02)

0.00

0.00

-

-

-

-

(5,690.22)(1.80)

600.72

697.31(0.32)(0.37)

56.88

423.71

9.29

80.39

14.58

108.64(43.76)(325.98)

10.39

84.28

Profit/(Loss) Provision
before Tax
for Tax

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

100

100

100

100

100

100

100

100

100

100

100

100

100

Figures INR in Crore & FC in Million-(0.36)(2.66)

0.00

0.00

-

-

-

-

(5,690.22)(1.80)

473.65549.81(0.45)(0.52)

56.88

423.71

9.29

80.39

12.78

95.17

(35.33)(263.21)

10.32

83.67

-

-

-

-

-

-

-

-

-

-

0.01

0.06

-

-

3.86

28.76

-

-

-

-

-

-

-

-

-

-

-

-

(0.29)(2.16)

89.66

667.94

0.09

0.66

0.36

2.69

(17.15)(127.78)

1.74

12.96

6.50

48.44

3.23

24.08

26.82

199.82(2.51)(21.69)(51.59)(446.63)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

100

100

100

100

100

100

100

100

100

100

100

100

100

Gain/Loss Profit/(Loss) Proposed
% of
from
after Tax. Dividend
Share
Discontinued
Holding
Operations

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Gain/Loss Profit/(Loss) Proposed
% of
from
after Tax. Dividend
Share
Discontinued
Holding
Operations

Statutory Reports

Canada,Nova Scotia

USA

53 Novelis ALR Rolled Products Sales
Corporation*

2,333.56

INR

1.10

USD

11.84

(255.65)(1,940.66)(0.32)(2.44)

7.15

54.30

0.00

0.01

43.77

367.95(158.06)(1,328.69)

Reserves-(0.44)(3.37)

0.00

0.00

-

-

-

-

58,688.96

18.59

961.501,150.92

11.07

13.25

60.70

460.81--(83.78)(635.96)106.76810.43212.28

1,746.40

Reserves

Our Capitals

57 Aleris Holding Canada ULC*

USA

8.37

1,593.61

USD
INR

12,097.07

2,384.00

USD
INR

18,096.94

1,309.77

USD
INR

9,942.49

44.11

EUR
INR

370.80

97.55

EUR
INR

819.98570.35EUR
INR

4,794.35

Capital

INR

Reportingcurrency

INR

-

0.33

USD
INR

2.47

0.00

BRL
INR

0.00

-

USD
INR

-

-

USD
INR

-

20,820.00

VND
INR

6.60

847.31CNY
INR

1,014.23

22.14

CNY
INR

26.51

0.91

USD
INR

6.93

20.00

EUR
INR

168.12

-

USD
INR

-

0.00

USD
INR

0.00

1.00

CHF
INR

8.23

Capital

INR

Reportingcurrency

Figures INR in Crore & FC in Million

Strategic Overview

52 Novelis ALR Rolled Products, LLC*

Novelis ALR Asset Management
Corporation*

USA

49 Novelis ALR International, Inc.*

Germany

47 Novelis Casthouse Germany GmbH*USA

Germany

46 Novelis Koblenz GmbH*

48 Novelis ALR Aluminum Holdings
Corporation*

Germany

45 Novelis Deutschland Holding GmbH*India

44 Novelis (India) Infotech Ltd.*CountryUSA

43 Novelis Global Employment Organization,
Inc.*

Sr. Name of the Subsidiary Company

Brazil42 Brecha Energetica Ltda*

Novelis Services (Europe) Inc.*

VietnamChina

39 Novelis Vietnam Company Limited*

38 Novelis (China) Aluminum Products Co., Ltd.*

China

Germany

35 Novelis Sheet Ingot GmbH*

Novelis (Shanghai) Aluminum Trading
Company*

Canada34 8018227 Canada Inc.*

37

USA

Switzerland

Country

33 Novelis Holdings Inc.*

32 Novelis AG*

Sr. Name of the Subsidiary Company

Annexure VII

Corporate Overview
Financial Statements

Integrated Annual Report 2021-22

221

222
HINDALCO INDUSTRIES LIMITED
Aleris Aluminum Japan, Ltd.*

Reais

INR

CNY

INR

USD

INR

CNY

INR

EUR

INR

JPY

INR

GBP

INR

CHF

INR

-

-

1,384.37

1,657.09

1.84

13.97

96.87

115.95

0.08

0.64

6.00

0.37

0.04

0.37

11.25

92.55

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Shares, Debenture,
Bonds & Others

Investments

-

-

-

-

2,807.45

828.49961.70

2.42

17.99

301.72350.23

-

-

29.74

1.97

0.03

0.35

Turnover/
Revenues

200.45--3,015.47

3,609.52

315.782,397.11

129.15154.59

2.58

21.72

34.41

2.13

0.07

0.72

14.84

122.0856.88

478.14

Total
Liabilities

INR
55.0692
56.8946

BRL
INR
13.981615.9659

-

-

-

-

(1,588.27)

3,219.38(1,901.16)(242.83)556.77
3,853.60(1,843.29)(11.46)(13.72)(2.52)(21.19)

16.41

1.02

0.03

0.34

3.57

4,226.43

43.74

52.36

5.03

42.28

12.00

0.74

0.00

0.00

0.02

29.36

(322.17)765.820.16

4,207.42(2,708.19)

6,437.46
500.53

Total Assets

Reserves

Capital

AUD

CAD
INR
59.4266
60.8311

CHF
INR
81.089482.2729CNY
INR
11.6078
11.9724

EUR
INR
86.569084.0610GBP
INR
101.7635
99.7657

JPY
INR
0.66340.6243NOK
INR
8.58518.6410SEK
INR
8.46168.0905

SGD
INR
55.232956.0329

USD
INR
74.492775.9050* Balance sheet items are translated at closing exchange rate and Profit/(Loss) items are translated at average exchange rate.

## Subsidiary of AV Metals Inc.

BrazilChina

Hong Kong

China

BarbadosJapan

UnitedKingdom

Switzerland

INR

Netherlands
EUR

Reportingcurrency

Country# Subsidiary of AV Minerals (Netherlands) N.V.

66 Hindalco Do Brazil Industria Comercia de
Alumina LTDS*

65 Novelis Aluminum (Zhenjiang) Co., Ltd.*

64 Aleris Asia Pacific Limited*

63 Aleris (Shanghai) Trading Co., Ltd.*

62 Aleris Asia Pacific International (Barbados)
Ltd.*

61

60 Aleris Aluminum UK Limited*

59 Aleris Switzerland GmbH*58 Novelis Netherlands B.V.*

Sr. Name of the Subsidiary Company

Annexure VII(11.58)(160.68)(25.43)(29.52)(4.06)(30.22)

2.63

3.06

(0.01)(0.09)

1.88

0.12(0.03)(0.27)(0.56)(4.52)

2.85

24.66

-

-

-

-

0.18

1.31

0.75

0.88

-

-

1.24

0.08

-

-

-

-

0.64

5.57

Profit/(Loss) Provision
before Tax
for Tax

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(0.08)(0.66)(11.58)(161.95)(25.43)(29.52)(4.23)(31.52)

1.88

2.18

(0.01)(0.09)

0.64

0.04(0.03)(0.27)(0.56)(4.52)

2.13

18.43

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

100

100

100

100

100

100

100

100

Gain/Loss Profit/(Loss) Proposed
% of
from
after Tax. Dividend
Share
Discontinued
Holding
Operations

Figures INR in Crore & FC in Million

Corporate Overview

From Ccy
To CcyStrategic Overview
Our Capitals
Statutory Reports
Financial Statements

List of Subsidiaries merged during FY 21-22
Aleris Aluminum France S.à.r.l. Merged into Novelis PAE S.A.S.

Novelis Lamines France S.A.S. Merged into Novelis PAE S.A.S.

Aleris RM, Inc. Merged into Novelis ALR International, Inc. (formerly Aleris International, Inc.)

Name Acquisition Co. Merged into Novelis ALR International, Inc. (formerly Aleris International, Inc.)

List of Subsidiaries Dissolved during FY 21-22

Aleris Aluminum Denmark ApS Dissolved into Aleris Switzerland GmbH

Aleris Aluminum Poland Sp. z.o.o. Dissolved into Aleris Switzerland GmbH

List of Subsidiaries sold during FY 21-22

Saras Micro Devices, Inc. (Novelis sold 90% ownership of entity. Legal entity still exists but investment is not held as a venture/associate. )Avg spot rate for the year
Closing rate for 31st March 2022

From Ccy
To CcyAvg spot rate for the year
Closing rate for 31st March 2022

BRL
USD
0.18770.2103CHF
USD
1.08861.0839CNY
USD
0.15580.1577EUR
USD
1.1624
1.1075GBP
USD
1.36641.3144JPY
USD
0.00890.0082

SEK
USD
0.11360.1066

SGD
USD
0.74150.7382Integrated Annual Report 2021-22

223

Corporate Overview

Annexure VII

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Social Report

Part “B” - Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures
Sr. Name of Associates /no.
Joint Ventures

Shares of Associate/Joint Ventures held by thecompany on the year end
LatestAuditedBalance
Sheet
Date

NumberProfit/Loss for the year

Amount ofExtent of
Networth to Considered in
Not
Description Base on why
investment
Holding %Shareholding consolidation considered in of how there the associate /(Carrying Value) attributable as per latest(Rs. in Crore) consolidation is significant joint venture isin Associates /audited balance
influence not considered
Joint Venture
sheet(Rs. in crore)(Rs. in Crore)

Associates
1

Aditya Birla Scienceand Technology
Company Private
Limited31-Mar-22

9,800,000

9.80

49.00

55.76

27.32

Note A

2

Aditya Birla
31-Mar-22
Renewables Subsidiary
Limited6,895,200

6.90

26.00

27.70

7.20

Note A

3

Aditya Birla Renewable 31-Mar-22
Utkal Limited (ABRUL)

1,274,000

1.27

26.00

5.26

1.37

Note A

4

Aditya Birla Renewable 31-Mar-22
Solar Limited

8,307,000

8.31

26.00

33.97

8.83

Note A

5

Associates of Novelis
Inc. @

3,001

2.12

-

(1.48)

0.10

Joint Ventures
1

Hydromine Global
Minerals (GMBH)
Limited31-Mar-22

66,562

1.37

45.00

0.01

0.00

Note A2MNH Shakti Limited

31-Mar-22

5,265,000

5.27

15.00

41.55

6.23

Note A

Joint Operations
1

Mahan Coal Limited

31-Mar-22

32,250,000

10.25

50.00

22.73

11.36

Note A

2

Tubed Coal Mines
Limited31-Mar-22

15,296,700

0.00

60.00

2.76

1.66

Note A

3

Joint Operations ofNovelis Inc. @10,0412,119.55

341.19118.59

1

1.74

30%

(1.53)(0.00)

Equity

3,000

0.38

20%

0.05

0.10

EquityEquity@ - Associates of Novelis Inc.
Deutsche Aluminium 31-Dec-21
Verpackung Recycling
GmbH
France Aluminum
Recyclage SA

31-Dec-21@ - Joint Operations of Novelis Inc.
Aluminium Norf GmbH 31-Dec-21

1258.0650%

187.55

45.12

Logan Aluminum Inc.

31-Mar-22

40

0.00

40%

13.90

1.13 Consolidated

AluInfra Services SA

31-Dec-20

5,000

24.06

50%

0.52

0.20

EquityUlsan Aluminum Ltd.

31-Mar-21

5,000

1,837.4250%

139.2272.15

EquityNote A - There is significant influence due to percentage holding of share capital

Water: Our Eternal Lifeline“Water, the life force for humanity, is the absolutely essential building block. It is the central piece for ourplanet. Recount Leonardo da Vinci, who said, “Water is the driver of nature”.
Water and decent sanitation are inextricably linked to all development processes. International agencies
such as UNICEF, United Nations University, United Nations Sustainable Development Report, among others
record that, water scarcity impairs over 40% of the global population and 2.4 billion people do not haveaccess to basic sanitation services. Sadly, every year 300,000 children succumb to water borne diseases. It
augurs well that Goal-6 of SDG focuses on clean water and sanitation. It underpins other SDGs as well. Water
is the lifeline, any which way.
By and large the UNSDGs, viewed in totality are a revolutionary leap, a kind of wakeup call to every nation to
pay close attention to people largely from the vulnerable sector and the planet. It has heightened sensitivities
across 193 countries. A shot in the arm of the move towards a fair and equitable society, the UNSDGs havean appealing logic.
At our Aditya Birla Group, our underlying motto in our CSR engagement has always been to engage, uplift andempower communities, and in doing so perpetually be a force for good and enrich lives. We are heavily invested
in healthcare, education, sustainable livelihood and infrastructure development. Water is the pivotal force thatpropels our projects in business and beyond. It is the most critical resource. Its sustainable management is ofimmense importance for our business community. So the SDG Goal-6 is of great significance to us.
Climate change, dwindling ecosystems, exploitation of natural resources besides pollution, have accelerated
the stress on water resources in terms of its availability and quality. While the report spells out all of yourCompany’s CSR engagements, for any progress, availability of water is the most critical factor. Towards building
water resilience, our businesses at Aditya Birla Group have taken a comprehensive stepwise approach both
inside the location boundaries as well as in the watersheds of our operation. We have put in place our Water
Stewardship Policy championed by our Group Chairman, Business Directors/CEOs and other seniors. Thisaims at protection and conservation of water resources through excellent water management practices andgovernance systems and is being operationalized through performance targets and roadmaps across our sites.
When one thinks of water in the hinterland of India with its rugged pathways, the picture that immediately
surfaces in the mind’s eye is that of a woman with pitcher on her head, trudging miles on end to fetch it.
Today, the scenario is very different. In quite a few of the 9,000 villages that we work in, we have met thisarduous task of ensuring water availability for households and farmers. The Government has rightfully given
access to water in rural areas, the primacy it deserves. The plan is to provide tap water for all under the ‘Har
Ghar, Nal Se Jal’ scheme. The scheme’s dashboard reports that over 5.6 crore homes now have water on tap.
An integrated aggressive watershed management programme implemented as part of our CSR engagement
has yielded rich dividends as well. Its components include water harvesting structures: construction of checkdams, instituting tube wells, tanks and water reservoirs. Side-by-side rainwater harvesting, including rooftops,
reinventing step-wells, lakes (talaos), wells (bowris), soil conservation, refurbishing aquatic ecosystems,

224

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

225

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Social Reportsetting up reverse osmosis plants and water ATMs, have brought much succour to a water starved populace
pan India. Besides the admirable Government support, we partner extensively with development agencies
such as NABARD, MYRADA, ICRISAT and AFPRO on the technical side, among others. The water conserved
annually is over 33 billion liters, of which your Company has conserved 1.55 billion liters. Water user groups
are formed at the plants to make sure that eventually the villagers become self-reliant. There is a sense of
joy and lightness among them. Numbers mean a lot, but smiles mean a lot more.
In the words of our visionary Prime Minister, “Jal hai toh kal hai”.

Singrauli. Over 420 cattle were artificially inseminated and an
additional 1,976 were treated for their illnesses. Consequently,
incomes were enhanced significantly as the milk outcome
notched up by 70%.
SDG-3: Ensuring, healthy lives and promoting well-being
for all, in all age groups
Over 37,299 people recourse to our 675 rural medical andawareness camps. Our rural mobile medical van services
complemented these efforts. Those diagnosed with serious
ailments were referred to our hospitals for treatment.

Rajashree Birla
Chairperson,
Aditya Birla Centre for Community Initiatives and Rural Development
Chairperson, Hindalco Industries CSR Board

More than 44,864 patients were tended to at our 3 hospitals
and 15 dispensaries/clinics at Renukoot, & Renusagar (Uttar
Pradesh), Belagavi (Karnataka), Muri & Lohardaga (Jharkhand),Samri & Garepalma (Chhattisgarh).
We supported 9 Government/Charity run primary health

A summary of our work:

Agriculture and Farm Based:

SDG-1: To rid poverty across all nations by 2030

Through 137 farmers training programmes we reached out
to 3,390 farmers (Singrauli, Renukoot, Lohardaga Samri,
Belagavi and Renusagar) to boost agricultural and horticulturalactivities. Farmers reap a rich harvest. Over 4,461 households
are cultivating vegetables and 102 farmers are growing fruits
to supplement their income.

In the 10 states and one Union Territory, where we operate,
we are engaged in enriching the lives of the underprivileged,in multiple ways to decelerate the percentage of BPL families.
SDG-2: To end all forms of hunger and malnutrition by 2030
Through sustainable agriculture, we are helping farmers in
multiple ways. These include land clearances, technology
upgradation and closing the marketing loop. We also enable
them access Government Schemes. Through supportingthe District Authorities, including Collectors and Block
Development Officers, we are aiming to significantly lowering
the current rate of acute malnutrition among children below 5
years to 5% from 8% in the foreseeable future.
Water Positivity
Our chairperson has alluded to ways in which we work toensure water positivity. We have constructed 12 check dams,
excavated 34 ponds, 29 bundings, 8 watershed structuresand 18 rainwater harvesting structures. This has enabled us
conserve 0.68 million cubic meter of water reaching out to3,140 farmers.
We have repaired 9 check dams/irrigation channels at
Renukoot, Singrauli, Kathautia and Lohardaga. These provide
irrigation facility to enhance cash crop production in more than
973.5 hectares of land. The 110 organic farmers in these districts
along with others are much encouraged.
226

HINDALCO INDUSTRIES LIMITED

centres, with medical treatments to 4,115 patients (Kathautia,
Maliparbat, Dumri, Garepalma and Chakla).
At our 21 eye camps 1,632 persons were treated. Of these 292

More than 1,41,975 children were immunised against polio and35,165 children were administered with BCG, DPT and antihepatitis B vaccines across the company’s units.
As part of our Safe Motherhood and Child Survival Programme,in tandem with the District Health Department, our 25 Family
Welfare Centres reached out to 30,981 expectant mothers andtheir children at Renukoot, Renusagar, Kathautia, Garepalma
and Lohardaga.
Nearly 11,014 women availed of the ante-natal, post-natal care,nutrition, and escort services for institutional delivery accordedby us at Taloja, Renukoot, Singrauli, Belagavi, Kathautia, Samri,
Lohardaga, Dumri and Chakla.
Our focused programme on adolescent health care covered
1,028 girls at 32 Govt. Girls High Schools and 7 Kasturba Gandhi
Balika Vidyalayas.
Our intensive motivational drive towards responsible familyraising led to 54 villagers opting for planned families acrossRenukoot and Kathautia.

patients at Renukoot and Muri were operated for cataract

SDG-4: Educationand intra-ocular lens (IOL) were fitted for their vision. We also

Nearly 896 children enrolled at 17 Balwadis and 4 NonFormal centres that we back (Renukoot, Lohardaga, Samriand Belagavi).

distributed spectacles to the needy for better eyesight.
Over 1,637 persons were attended to at Renusagar in a dental

More than 2,274 farmers received agricultural tools, seeds,
fertilisers and insecticides during the agriculture support
programmes (Renukoot, Renusagar, Maliparbat and Singrauli).
Collectively there has been an upswing in their earnings.

check-up camp.

We promoted 62 farmers’ clubs with 1408 members at
Renukoot. This has led to ensure cost optimisation througheconomics of scale in the procurement of inputs, to realise
better margin through collective marketing. We facilitate themaccess services under different schemes as well as enrichknowledge by exchanging ideas and information.

rendered free of the disease.

Under the DOT (Directly Observed Treatment) programme
for TB, we registered 61 patients at Renukoot, Renusagar andChakla. Following the regime, these patients were subsequently
In 26 STD/RTI and AIDS awareness camps, conducted at
Singrauli, Lohardaga, Kathautia, Samri, Belagavi, Renusagar
and Renukoot 2,461 persons took the tests.
Over 2,685 people have availed of ‘Jeevan Mitra Sewa Yojana’Our agricultural farmland levelling and trench digging at
Renukoot and Lohardaga, benefitted 399 farmers. They were
supported with lift and drip irrigation facilities at 39 locations.

facilities through our 15 GPS based ambulances at Muri.

Under the social forestry programme, we continue to sponsor
distribution of saplings. This year 1,98,140 saplings were given
to households in Samri, Renukoot, Renusagar, Belagavi,
Singrauli, Lohardaga, Kathautia and Taloja.

We facilitated collection of 102 units of blood at 5 blood

Our veterinary camps aided over 9,501 cattle owners. Nearly,
47,506 were immunised in veterinary camps held at our units
at Renukoot, Renusagar, Lohardaga, Samri, Belagavi and

Diarrhoea in the villages at Renukoot and Lohardaga Mines

Additionally, free ambulance services were forked out to 271
emergency cases at Lohardaga and Kathautia.
donation camps, from 277 donors (Renukoot, Garepalma and
Chakla).
We organised 23 seasonal disease camps for Malaria andas a preventive care measure. Over 2,000 needy people atSingrauli received mosquito nets.

At 39 Anganwadis 1,672 children are enrolled (Singrauli,
Lohardaga, Renusagar, Kathautia, Taloja and Belagavi). Under
the Integrated Child Development Scheme (ICDS) at Singrauli
11 malnourished children were nurtured by us on the road tohealth.
At 9 Aditya Birla Public Schools (Renukoot, Renusagar andMuri), we have 4,621 rural students. Additionally, we have
2,425 students in our 8 Aditya Birla Vidya Mandirs (Renukoot,Lohardaga, Kathautia and Samri).
Through the Sarva Siksha Abhiyan (SSA) programme, 1565
students of 15 primary schools (Lohardaga, Kathautia and
Taloja) have received technical support, study materials,
school bags and uniforms. School bags, uniforms, sweaters,
and educational items were distributed to 10,199 students
of 57 schools (Renukoot, Renusagar, Singrauli, Lohardaga,
Garepalma, Maliparbat, Belagavi and Taloja).
To encourage excellence, 207 rural students (Singrauli andRenusagar) were accorded scholarships. Among these, 204
students of class XI, of which 103 were girls won the “Mahan
Jyoti scholarship” of Rs.1000 each at Singrauli, sponsored by us.

Integrated Annual Report 2021-22

227

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Social Report
Coaching classes were conducted for 858 students in
Mathematics, Science and English.
To reduce dropouts at the secondary level, we provided bus
services to 525 girls (Lohardaga, Samri and Garepalma).
‘Meet the parent’ events were conducted across 5 of our units
at Renukoot, Samri, Kathautia, Belagavi, and Chakla.
Our close involvement has motivated 1175 girls to pursue further
education at 7 Kasturba Gandhi Vidyalayas (KGBVs) (Renukoot,Lohardaga, Muri, Dumri and Samri). 122 learners evinced keeninterest at our 4 adult literacy programmes (Renusagar andSingrauli).
Sports and cultural programmes were held in 20 schools witha record of 1020 active participants.
Our computer literacy programmes delighted, 336 rural
students of which 205 were girls from the hinterland(Renusagar and Singrauli).
Three career counselling camps at Renukoot and Lohardaga,
saw the active participation of 98 aspiring students.
Subsequently, many of them joined technical and vocational
training programmes.
Towards bettering the infrastructure, we constructed one
school building at Taloja, an additional classroom at Belagavi,
and repaired four school buildings (Lohardaga, Belagavi and
Taloja).
We constructed five toilet blocks (Singrauli, Samri, Belagavi and
Taloja). Drinking water (Singrauli, Lohardaga, Samri, Kathautia,
Belagavi, Chakla and Taloja) and furnishing two schools at
Taloja, delivered the necessary facilities to the locals.
SDG-5: Women empowerment and gender equality
In the 1,798 self-help groups totalling 23,038 women, eachone of them has been on a transformative journey. Most of
the SHGs have been linked with income generation activities
at various centres. Women are engaged in tailoring, weaving,knitting, handicrafts, beauty parlour, bamboo basket making,making pickles, spices, papad, vegetable vending, cultivation,
small business etc.

pumps and dug wells. These provide safe drinking water tothe surrounding villages. We provide potable water to 39
villages through water tankers and pipelines. This is looked
upon as a boon by 50,024 villagers who now have access tosafe drinking water.
Five toilets were set up at Renusagar, Singrauli and Samri,besides 224 individual toilets constructed at Renukoot byleveraging Government schemes.
We distributed 105 Solar lanterns/lamps at Renusagar, Mahan
and 101 solar streetlights at Renusagar, Samri, Lohardaga
and Kathautia. Alongside, we installed 7 solar operated 24X7
drinking water supply at Lohardaga and Renukoot.

We distributed 7,369 blankets to the needy at Renukoot,Renusagar, Singrauli, Lohardaga, Muri, Kathautia,
Garepalma,Chakla and Samri.

•

Baphlimali Bauxite Mines received Sita Ram Rungta Award
for Social Responsibility•

Odisha CSR Forum Award for outstanding contribution in
the field of corporate social responsibility & community
development initiative.

Mines Division Lohardaga•“Fame Excellence Award 2020-21” for excellence in best
CSR Practices.

Hindalco, Hirakud•

Accolades/Awards received: (Hindalco and Its Subsidiaries)

Our CSR spends:

Electronics & Electricals and Mobile repairing. In addition, 1,444

Renukoot

This year we have invested Rs.37.54 crore (3.11% of our net

women from Renusagar, Singrauli, Lohardaga, Muri, Kathautia,•

CSR Health Impact Awards for project ”Aarogya”.

•

ICC Social Impact Awards (2) for their projects- “Unnati”
and “Aarogya”

Renusagar, Lohardaga, Muri, Singrauli, Belagavi, Samri,
Kathautia and Chakla.
We sponsored 71 youths from Singrauli and Muri for Computer,

Dumri, Belagavi, Chakla and Taloja have mastered tailoringskills to supplement their family income with dignity.
At the Aditya Birla Rural Technology Park, the thrust continued
to be on computer literacy, repair of electric and electronic
goods, handicrafts, bag making, soft toys, beautician

Aditya Aluminium•

tailoring and knitting, ways to enhance agricultural output,
and veterinary science. We trained 708 aspirants this year.
Apart from this, 16 programmes of capacity building wereorchestrated for 421 participants and veterinary services
offered to 272 farmers.

Fame Excellence Award for Women Empowerment(Project SAKSHAM).

Mahan, Singrauli•

CSR TIMES AWARDS 2021 for “Water Conservation &Management”.

Brands of Odisha. Pride of India.: Sambad, Corporate
Excellence Awards - 2022.

profit) and raised Rs.65.75 crore, leveraging the Government’s
development programmes. In addition, our subsidiaries havespent ` 17.49 crores on CSR activities.
We owe big time to our chairman, a big thank you, andChairperson for always encouraging and motivating us to do
better than the best. A big thank you to the Board of Directors,
our Management, leadership teams, our CSR people and eachand every colleague from Hindalco for always cheering our
CSR engagements, geared towards enriching the lives of 12
lakhs of our fellow Indians in 620 villages across 10 states and1 Union Territory.

SDG-9: Build resilient infrastructure
Our infrastructure projects: connectivity, construction andrepair of village approach road, culvert, panchayat Bhawan,
pond excavation, bathing ghats, bathrooms, protection wall,channel pitching, rural housing, check dams, bus stops, garden
etc. on the needs have bettered the lives of 75,369 people.
Of the 620 villages, we operate in, 104 villages have beenslated to become model villages. Up until now, 38 villages havemade the cut to be rated as model villages. Impact assessment
studies by external agencies have certified/commended theWe have installed 37 hand pumps and facilitated installationof another 66 Government hand pumps, repaired 216 hand

SDG-10 of ‘Gender equality and women empowerment”, andHINDALCO INDUSTRIES LIMITEDTo spark the creativity in the communities, 319 cultural
programmes were held, celebrating national events, besides
75 sports activities.

Utkal Alumina:

We support 110 residents of 3 orphanages and old age homes
at Taloja.

We imparted vocational skills training to 962 people at

The sixth, seventh and eighth SDGs, center on water andsanitation, reliable, sustainable, modern energy, decent
work, and economic growth.

228

We support the community through various social initiatives
such as advocacy against child labour, illiteracy, childmarriages, the marginalisation and abuse of the girl child andwomen, alcoholism, and poor hygiene among others to bring insocial reform through behavioural changes. We have organised
684 camps where 21,399 people have attended.

transformation of these villages.
Our activities under Social Issues are aligned with SDG-5 and“Reduced inequalities”.

Integrated Annual Report 2021-22229

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

BRSR Indicator
BRSR
INDICATORNO.

DISCLOSURE

REFERENCE SECTION/ PAGE NUMBER

BRSR
INDICATORNO.

DISCLOSURE

REFERENCE SECTION/ PAGE NUMBER

17c

A brief on types of customers

Our Business at a Glance

L27020MH1958PLC011238

IV.

Employees

18a

Employees and workers (including differently abled):

Employee strength- Human Capital

18b

Differently abled Employees and workers:

13 differently abled workers

19

Participation/Inclusion/Representation of women

Employee strength- Human Capital

20

Turnover rate for permanent employees and Employee turnover rate- Human Capital
workers(Disclose trends for the past 3 years)

V.

Holding, Subsidiary and Associate Companies (including joint ventures)

21aNames of holding / subsidiary / associate companies As per Annexure 1/ joint venturesVI.

CSR Details

22(i)Whether CSR is applicable as per section 135 of Yes
Companies Act, 2013

22(ii)

Turnover (in `)` 1,95,059 crores

22(iii)Net worth (in `)` 78,189 crores

VII.

Transparency and Disclosures Compliances

23

Complaints/Grievances on any of the principles Customer Satisfaction- Social and(Principles 1 to 9) under the National Guidelines on Relationship CapitalDiversity andResponsible Business Conduct:
Inclusion- Human Capital

SECTION A: GENERAL DISCLOSURES
1

Corporate Identity Number (CIN) of the Listed Entity

2

Name of the Listed Entity

Hindalco Industries Limited

3

Year of incorporation

1958

4

Registered office address

Ahura Centre, B wing , 1st Floor,
Mahakali Caves Road, Andheri East,
Mumbai 400093

5Corporate address

Same as above

6

E-mailanil.malik@adityabirla.com

7

Telephone022-66626666

8

Websitewww.hindalco.com

9

Financial year for which reporting is being done

Financial Year 2021-2022

10

Name of the Stock Exchange(s) where shares are listed BSE Limited , National Stock Exchange
of India Limited and Luxembourg Stock
Exchange (GDR)
As on 31st March, 2021 Rs. 2,24,71,72,724

11

Paid-up Capital

12

Name and contact details (telephone, email address) of Mr. Anil Malik, Company Secretary
the person who may be contacted in case of any queries Tel: 022-66626666
on the BRSR report
E mail id :anil.malik@adityabirla.com

13

Reporting boundary - Are the disclosures under this Consolidated basis
report made on a standalone basis (i.e., only for theentity) or on a consolidated basis (i.e., for the entityand all the entities which form a part of its consolidated
financial statements, taken together).

II.

Products/ Services

14

Details of business activities (accounting for 90% of Our Business at a Glance
the turnover):15

Products/Services sold by the entity (accounting for Our Business at a Glance
90% of the entity’s Turnover)III.

Operations

16

Number of locations where plants and/or operations/ Our Business at a Glance
offices of the entity are situated (National andInternational)

17

Markets served by the entity:

Our Business at a Glance

17aNumber of locations

50 locations including Hindalco India
and Novelis manufacturing locations.

17b

What is the contribution of exports as a percentage of 51% revenue from exports for Indian
ops. Exports to S. Korea, malaysia,
the total turnover of the entity?
Taiwan, Thailand, USA, Brazil andJapan.

230

HINDALCO INDUSTRIES LIMITED24

Overview of the entity’s material responsible business Materiality Assessment
conduct issues
Risk Management- Building resilience
Section B: Management and Process Disclosures

1

Policy and management processes
1. a. Whether your entity’s policy/ policies cover each Yes
principle and its core elements of the NGRBCs.
(Yes/No)^P1

Businesses should conduct and govern themselves Code of conduct
with integrity in a manner that is eal, transparent,
and accountable

P2

Businesses should provide goods and services in Sustainability Policya manner that is sustainable and safe

P3

Businesses should respect and promote the well- Safety and Occupational Health Policy
being of all employees, including those in theirvalue chains

P4

Businesses should respect the interests of and be Corporate Social Responsibility Policy
responsive towards all its stakeholders

P5

Businesses should respect and promote human Human Rights Policy
rightsIntegrated Annual Report 2021-22

231

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

BRSR Indicator
BRSR
INDICATORNO.

2.

DISCLOSURE

P6Businesses should respect, protect, and make Environment Policy
efforts to restore the environment

P7

Businesses when engaging in influencing public Code of conduct
and regulatory policy, should do so in a mannerthat is responsible and transparent

P8

Businesses should promote inclusive growth and Rehabilitation and resettlement
equitable development
policyCorporate Social Responsibility
PolicyP9Businesses should engage with and provide value Code of conduct
to their consumers in a responsible manner

1.b.

Has the policy been approved by the Board?

Yes

1.c.

Web Link of the Policies, if available

https://www.hindalco.com/investorcentre/policies(Some policies may also include a combination of internal policies of the Corporation which are accessible to all internal
stakeholders and policies placed on the
Corporation’s website)

2.

Whether the entity has translated the policy into Yes (As applicable)
procedures. (Yes / No)

3.

Do the enlisted policies extend to your value chain Yes (As applicable)
partners? (Yes/No)

4.

Name of the national and international codes/ Reinforcing Operational Excellencecertifications/labels/ standards (e.g., Forest Manufactured Capital
Stewardship Council, Fairtrade, Rainforest
Alliance, Trustea) standards (e.g., SA 8000,
OHSAS, ISO, BIS) adopted by your entity andmapped to each principle

BRSR
INDICATORNO.

DISCLOSURE

REFERENCE SECTION/ PAGE NUMBER

8.

Details of the highest authority responsible for Risk Management and ESG Committee.
implementation and oversight of the BusinessResponsibility policy (Yes).

9.

Does the entity have a specified Committee of the Environment Management at HindalcoBoard/ Director responsible for decision making Natural Capitalon sustainability related issues? (Yes / No). If yes,provide details.

10.

Details of Review of the National Guidelines on Responsible Business Conduct (NGRBC)

11.

Has the entity carried out independent assessment/ No
evaluation of the working of its policies by an
external agency? (Yes/No). If yes, provide nameof the agency.

12.

If answer to question (1) above is “No” i.e., not all NA
Principles ar e covered by a policy,reasons to bestated:SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE
Principle 1
Essential Indicators
1

Percentage coverage by training and awarenessprogrammes on any of the Principlesduring the financial
year
Board of Directors/ Key Managerial Personnel (KMP)

Refer Corporate Governance part ofIntegrated Annual Report

Employees other than Board of Directors or KMPs

Human Capital Development- Human
CapitalWorkers

Human Capital Development- Human
Capital5.

Specific commitments, goals and targets set by Please refer to Human Capital, Natural
the entity with defined timelines, if any.
Capital, and Social and Relationship
Capital2

6.

Performance of the entity against the specific Please refer to Human Capital, Naturalcommitments, goals and targets along-with Capital, and Social and Relationshipreasons in case the same are not met.
CapitalDetails of fines / penalties /punishment/award/ Environmental management- Naturalcompounding fees/ settlement amount paid in Capital
proceedings

3

Of the instances disclosed in Question 2 above, details Environmental management- Naturalof the Appeal/ Revision preferred in cases where Capitalmonetary or non-monetary action has been appealed.

4

Details of complaints with regard to conflict of interest -NIL

5

Number of Directors/KMPs/employees/ workers -Nilagainst whom disciplinary action was taken by any
law enforcement agency for the charges of bribery/corruption

Governance, leadership and oversight
7.

232

REFERENCE SECTION/ PAGE NUMBER

Statement by director responsible for the business Message from the Managing Director
responsibility report, highlighting ESG related
challenges, targets, and achievements (listed
entity has flexibility regarding the placement of
this disclosure)

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

233

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

BRSR Indicator
BRSR
INDICATORNO.

DISCLOSURE

REFERENCE SECTION/ PAGE NUMBER

BRSR
INDICATORNO.

DISCLOSURE

6

Details of anti-corruption or anti-bribery policy.

Code of conduct2

7

Details of any corrective action taken or underway Noneon issues related to fines / penalties / action taken
by regulators/ law enforcement agencies/ judicial
institutions, on cases of corruption and conflicts ofinterest

Significant social or environmental concerns and/ Delivering High Quality- Intellectualor risks arising from production or disposal of your Capital
products / services, as identified in the Life Cycle
Perspective / Assessments (LCA) or through any othermeans.

3

Percentage of recycled or reused input material Maximizing Circularity- Natural Capitalto total material (by value) used in production (formanufacturing industry) or providing services (forservice industry).

4

Of the products and packaging reclaimed at end of life Waste as a resource- Natural Capitalof products, amount (in metric tonnes) reused, recycled,
and safely disposed

5

Reclaimed products and their packaging materials (as Not reported
percentage of products sold) for each product category.

Leadership Indicators
1

Awareness programmes conducted for value chain Supplier Evaluation and Risk
partners on any of the principles during the financial Assessment- Social and Relationship
year:
CapitalPercentage coverage by awareness programmes on any NAor all the principles in the financial year:

2

Process in place to avoid/ manage conflict of interests Code of conduct of the Board of
involving members of the Board
Directors

Principle 2
Essential Indicators
1

Percentage of R&D and capital expenditure (capex) Highlights- Intellectual Capital
investments in specific technologies to improve theenvironmental and social impacts of product andprocesses to total R&D and capex investments madeby the entity, respectively.

2(a)Does the entity have procedures in place for sustainable Supplier code of conduct.Integrating
sourcing?
ESG in Supply Chain ManagementSocial and Relationship Capital2(b)If yes, what percentage of inputs were sourced Supplier Evaluation and Risk
sustainably?
Assessment- Social and Relationship
Capital3

Describe the processes in place to safely reclaim your Waste as a Resource- Natural Capital
products for reusing, recycling, and disposing at the endof life, for (a) Plastics (including packaging) (b) E-waste(c) Hazardous waste and (d) other waste.

4

Whether Extended Producer Responsibility (EPR) is Non-Hazardous Waste- Natural Capital
applicable to the entity’s activities (Yes / No). If yes,
whether the waste collection plan is in line with the
Extended Producer Responsibility (EPR) plan submitted
to Pollution Control Boards? If not, provide steps taken
to address the same.

Leadership Indicators
1

234

Life Cycle Perspective / Assessments (LCA) for any of its Delivering High Quality- Intellectual
products (for manufacturing industry) or for its services Capital(for service industry)HINDALCO INDUSTRIES LIMITEDREFERENCE SECTION/ PAGE NUMBER

Principle 3
Essential Indicators
1. a.

Details of measures for the well-being of employees

Employee Wellbeing and Human
Rights- Human Capitalb.

Details of measures for the well-being of workers

Employee Wellbeing and Human
Rights- Human Capital2.

Details of retirement benefits, for Current FY and Employee Wellbeing and Human
Previous Financial Year.
Rights- Human Capital3

Accessibility of workplaces

4.

Does the entity have an equal opportunity policy as per Human Rights PolicyCode of conduct
the Rights of Persons with Disabilities Act, 2016? If so,
provide a web-link to the policy.

5.

Return to work and Retention rates of permanent Employee well-being and Human
employees and workers that took parental leave.
Rights- Human Capital

Employee benefits- Profit and Loss
Statement

6.

Greivance Redressal mechanism for employees

7.

Membership of employees and worker in association(s) Employee wellbeing and Human rightsor Unions recognised by the listed entity
human capital

Whistleblower Policy

8.

Details of training given to employees and workers:

9.

Details of performance and career development Performance evaluation- Humanreviews of employees and worker:
Capital10.

Occupational health and safety management system ISO 45001, Occupational Health andimplemented by the entity
Safety- Human Capital10(a)Whether an occupational health and safety management Reinforcing Operational Excellencesystem has been implemented by the entity? (Yes/ No). Manufactured Capital
If yes, the coverage such system?

Human capital development- Huma
capital Safety Training- Human Capital

Integrated Annual Report 2021-22

235

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

BRSR Indicator
BRSR
INDICATORNO.

DISCLOSURE

10(b)What are the processes used to identify work-related Safety Risk Assessment- Human Capital
hazards and assess risks on a routine and non-routine
basis by the entity?

10(c)Whether you have processes for workers to report the Yes
work- related hazards and to remove themselves fromsuch risks. (Y/N)
Do the employees/ worker of the entity have access Yes; Occupational Health Servicesto non-occupational medical and healthcare services? Human Capital10(d)REFERENCE SECTION/ PAGE NUMBER(Yes/ No)BRSR
INDICATORNO.

DISCLOSURE

REFERENCE SECTION/ PAGE NUMBER

6

Provide details of any corrective actions taken or Supplier Evaluation and Risk
underway to address significant risks / concerns arising Assessment- Social and Relationshipfrom assessments of health and safety practices and Capitalworking conditions of value chain partners.

Principle 4
Essential Indicators
1

Describe the processes for identifying key stakeholder Stakeholder Engagement
groups of the entity.

2

List stakeholder groups identified as key for your entity Stakeholder Engagement
and the frequency of engagement with each stakeholder
group.

11.

Details of safety related incidents

Safety trainings- Human Capital

12

Describe the measures taken by the entity to ensure a Safety trainings- Human Capital
safe and healthy workplace.

Leadership Indicators

13

Number of health and safety related complaints

NIL

1

14

Assessments for the year:

Safety Risk Assessment- Human Capital

Provide the processes for consultation between Stakeholder Engagement
stakeholders and the Board on economic, environmental,
and social topics or if consultation is delegated, how
is feedback from such consultations provided to theBoard.

2

Whether stakeholder consultation is used to support the Stakeholder Engagement
identification and management of environmental, andsocial topics (Yes / No). If so, provide details of instances
as to how the inputs received from stakeholders onthese topics were incorporated into policies andactivities of the entity.

3

Provide details of instances of engagement with, and Engage, Uplift and Empower actions taken to, address the concerns of vulnerable/ Social and Relationship Capitalmarginalized stakeholder groups.

15

Provide details of any corrective action taken or Occupational Health and Safetyunderway to address safety-related incidents (if Human Capitalany) and on significant risks / concerns arising fromassessments of health and safety practices and working
conditions.
Leadership Indicators
1.

Life insurance or any compensatory package in the Life insurance coverage provided.
event of death of employees and workers
Benefits on case to case basis and as
per applicable local law.

2

Measures undertaken by the entity to ensure that We have a system to track thestatutory dues have been deducted and deposited by information available in the public
the value chain partners.
domain.

3

Number of employees / workers having suffered high We provide livelihood assistance onconsequence work- related injury / ill-health / fatalities, case to case basis.
who have been are rehabilitated and placed in suitable
employment or whose family members have beenplaced in suitable employment:

4

5

236

Does the entity provide transition assistance programs to Yes, Employee wellbeing- Human
facilitate continued employability and the management capitalof career endings resulting from retirement or
termination of employment? (Yes/ No)
Details on assessment of value chain partners:

HINDALCO INDUSTRIES LIMITED

Supplier Evaluation and Risk
Assessment- Social and Relationship
CapitalPrinciple 5
Essential Indicators
1

Employees and workers who have been provided protecting our employees and workerstraining on human rights issues and policy(ies) of the Human Capital
entity, in the following format

2

Details of minimum wages paid to employees and Employee wellbeing- Human capital
workers, in the format

3

Details of remuneration/salary/wages in prescribed Corporate Governanceformat4

Focal point (Individual/ Committee) responsible for Protecting our employees and workersaddressing human rights impacts or issues caused or Human Capital
contributed to by the business

Integrated Annual Report 2021-22

237

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

BRSR Indicator
BRSR
INDICATOR
NO.
5
6

7
8

DISCLOSURE

REFERENCE SECTION/ PAGE NUMBER

BRSR
INDICATORNO.

DISCLOSURE

Internal mechanisms in place to redress grievances
related to human rights issues.
Number of Complaints on the following madeby employees and workers:Sexual Harassment
Discrimination at work place Child Labour Forced
Labour/Involuntary Labour Wages Other human rights
related issues
Mechanisms to prevent adverse consequences to thecomplainant in discrimination and harassment cases.
Do human rights requirements form part of yourbusiness agreements and contracts? (Yes/No)

Whistleblower policy

3

Details of disclosures related to waterNote: Indicate if Water Withdrawal- Natural Capital
any independent assessment/ evaluation/assurance
has been carried out by an external agency? (Y/N) If
yes, name of the external agency

4

Has the entity implemented a mechanism for Zero Securing water- Natural Capital
Liquid Discharge? If yes, provide details of its coverage 100% coverageand implementation.

5

Details of air emissions (other than GHG emissions) Stack emissions- Natural Capitalby the entity.

6

Details of greenhouse gas emissions (Scope 1 and Scope Emissions Management- Natural
2 emissions) & its intensity
Capital7

Project related to reducing Green House Gas emission? Initiatives for Energy and Emission
If yes, then provide details.
Reduction- Natural Capital

8

Details of Waste management practices

9

Briefly describe the waste management practices Waste as a resource- Natural Capital
adopted in your establishments. Describe the strategy
adopted by your company to reduce usage of hazardousand toxic chemicals in your products and processes andthe practices adopted to manage such wastes.

10

Details of environmental approvals / clearances

11

Details of environmental impact assessments of Environment Management- Naturalprojects undertaken by the entity based on applicable Capitallaws, in the current financial year:

12Compliance with applicable environmental law/ Environment PolicyEnvironment
regulations/ guidelines in India.
Management- Natural Capital

Diversity and Inclusion- Human Capital

POSH policy

Protecting our employees and workersHuman Capital
9
Assessments on: Child labour Forced/involuntary labour 100%
Sexual harassment Discrimination at workplace Wages
Others – please specify
10
Provide details of any corrective actions taken or POSH and Values violation cases were
underway to address significant risks / concerns arising observed. Investigations have beenfrom the assessments at Question 9 above
conducted and action taken.
Leadership Indicators
1
Details of a business process being modified / NA
introduced as a result of addressing human rights
grievances/complaints.
2
Details of the scope and coverage of any Human rights 100% internal operations and selected
due diligence conducted.
high volume suppliers.
3
Is the premise/office of the entity accessible to Yes
differently abled visitors, as per the requirements of theRights of Persons with Disabilities Act, 2016?
4
Details on assessment of value chain partners:
Supplier Evaluation and Risk
Assessment- Social and Relationship
Capital5
Provide details of any corrective actions taken or
underway to address significant risks / concerns arisingfrom the assessments at Question 4 above.
Principle 6
Essential Indicators
1
Total energy consumption (in Joules or multiples) and Energy Consumption- Natural Capitalenergy intensityNote: Indicate if any independent
assessment/ evaluation/assurance has been carriedout by an external agency? (Y/N) If yes, name of theexternal agency
2

238

Sites / facilities identified as designated consumers Energy and GHG- Natural Capital(DCs) under the Performance, Achieve and Trade (PAT)
Scheme of the Government of India.
HINDALCO INDUSTRIES LIMITEDREFERENCE SECTION/ PAGE NUMBER

Waste as a resource- Natural Capital

Environment Management- Natural
CapitalLeadership Indicators
1

2
3

Provide break-up of the total energy consumed (in Energy Consumption- Natural Capital
Joules or multiples) from renewable and non-renewablesources.
Effluent Management- Natural Capital
Provide the details related to water discharged:
Water withdrawal, consumption and discharge in areas Water management- Natural capitalof water stress (in kilolitres):
For each facility / plant located in areas of water stress, provide details(i) Name of the area

Water management- Natural capital(ii) Nature of operations

Water management- Natural capital

Integrated Annual Report 2021-22

239

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

BRSR Indicator
BRSR
INDICATORNO.

DISCLOSURE

4

Please provide details of total Scope 3 emissions & its Emission Management- Natural Capitalintensity, in the following format:

5With respect to the ecologically sensitive areas Sustainable Mining- Natural Capital
reported at Question 10 of Essential Indicators above,
provide details of significant direct & indirect impactof the entity on biodiversity in such areas along-withprevention and remediation activities.

6

REFERENCE SECTION/ PAGE NUMBER

BRSR
INDICATORNO.

DISCLOSURE

REFERENCE SECTION/ PAGE NUMBER

2

Information on project(s) for which ongoing -NA
Rehabilitation and Resettlement (R&R) is being
undertaken by your entity, in the following format:

3

Mechanisms to receive and redress grievances of the Indigenous and Rehabilitation andcommunity.
Resettlement policy

4

Percentage of input material (inputs to total inputs by value) sourced from suppliers:Directly sourced fromMSMEs/ small producers Sourced directly from within
the district and neighboring districts

If the entity has undertaken any specific initiatives or Waste as a resource- Natural Capitalused innovative technology or solutions to improve
resource efficiency, or reduce impact due to emissions/ effluent discharge / waste generated, please provide
details of the same as well as outcome of suchinitiatives, as per the following format:

Leadership Indicators
1

7

Does the entity have a business continuity and disaster Building Resilience- Strategic priorities
management plan? Give details in 100 words/ web link. and Risk Management

Details of actions taken to mitigate any negative social -NIL
impacts identified in the Social Impact Assessments(Reference: Question 1 of Essential Indicators above):2

8Disclose any significant adverse impact to the Environment Management- Naturalenvironment, arising from the value chain of the entity. capital
What mitigation or adaptation measures have beentaken by the entity in this regard.

Provide the following information on CSR projects Engage, Uplift andundertaken by your entity in designated aspirational Empower - Social and
Relationship Capital
districts as identified by government bodies:3(a)Percentage of value chain partners (by value of business Supplier Evaluation and Risk
done with such partners) that were assessed for Assessment- Social and Relationshipenvironmental impacts.
CapitalDo you have a preferential procurement policy where -No
you give preference to purchase from suppliers
comprising marginalized /vulnerable groups? (Yes/No)3(b)From which marginalized /vulnerable groups do you procure?

3(c)What percentage of total procurement (by value) does it constitute?

4

Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity(in the current financial year), based on traditional
knowledge:

9

Principle 7
Essential Indicators
1(a)Number of affiliations with trade and industry Our key associations- Business at achambers/ associations.
glance1(b)List the top 10 trade and industry chambers/ associations Our key associations- Business at a(determined based on the total members of such body) glance
the entity is a member of/ affiliated to.

5

Provide details of corrective action taken or underway No caseson any issues related to anti-competitive conduct by
the entity, based on adverse orders from regulatory
authorities.

Details of corrective actions taken or underway, based on any adverse order in intellectual property related
disputes wherein usage of traditional knowledge isinvolved.

6

Details of beneficiaries of CSR Projects:

2

Leadership Indicators
1

Details of public policy positions advocated by the NA
entity:Principal 8
Essential Indicators
1

240

Details of Social Impact Assessments (SIA) of projects -NA
undertaken by the entity based on applicable laws, inthe current financial year.
HINDALCO INDUSTRIES LIMITEDSocial and Relationship Capital

Principle 9
Essential Indicators
1

Describe the mechanisms in place to receive and Customer Satisfaction- Social andrespond to consumer complaints and feedback.
Relationship Capital

2

Turnover of products and/ services as a percentage -NA. We are a base metal company.
of turnover from all products/service that carryinformation about:Integrated Annual Report 2021-22

241Corporate Overview

BRSR Indicator
DISCLOSURE

3

Number of consumer complaints in respect of the following:Data privacy AdvertisingCyber-security
Delivery of essential services Restrictive Trade Practices
Unfair Trade Practices Other

5

REFERENCE SECTION/ PAGE NUMBER

Details of instances of product recalls on account of -NIL
safety issues: Voluntary recalls, forced recalls
Does the entity have a framework/ policy on cyber Information Security Policy
security and risks related to data privacy?
(Yes/No) If available, provide a web-link of the policy.

6

Provide details of any corrective actions taken or NA
underway on issues relating to advertising, and deliveryof essential services; cyber security and data privacyof customers; re-occurrence of instances of productrecalls; penalty / action taken by regulatory authorities
on safety of products / services.

Leadership Indicators
1

Channels / platforms where information on products https://www.hindalco.com/
and services of the entity can be accessed (provide web
link, if available).

2

Steps taken to inform and educate consumers about -NA
safe and responsible usage of products and/or services.

3

Mechanisms in place to inform consumers of any risk of -NA
disruption/discontinuation of essential services.
Does the entity display product information on the Customer Satisfaction- Social andproduct over and above what is mandated as per local Relationship Capital Product Safety
laws? (Yes/No/Not Applicable) If yes, provide details in and Quality- Social and Relationshipbrief. Did your entity carry out any survey with regard to Capital4

consumer satisfaction relating to the major products /services of the entity, significant locations of operationof the entity or the entity as a whole? (Yes/No)

5
5(a)
5(b)

242

Provide the following information relating to data Customer Satisfaction- Social and
Relationship Capital
breaches:
Number of instances of data breaches along-with Customer Satisfaction- Social and
Relationship Capital
impactPercentage of data breaches involving personally Customer Satisfaction- Social and
Relationship Capital
identifiable information of customers

HINDALCO INDUSTRIES LIMITED

Our Capitals

Statutory Reports

Financial Statements

Annexure I

BRSR
INDICATORNO.

4Strategic Overview

Sr.
No.

Name of the Holding/Subsidiary/
Associate/Joint Venture

Indicate
whether
Holdings/
Subsidiary/
Associate/
Joint Venture% Shareholding
as on 31.03.2022

Does the Entity
indicated at Column A,
participate in the BusinessResponsibility initiativesof the listed entity?
(Yes/No)1.

Utkal Alumina International Limited

Subsidiary

100

NO

2.

Minerals & Minerals Limited

Subsidiary

100

NO

3.

AV Minerals (Netherlands) N.V.

Subsidiary

100

NO

4.

Dahej Harbour & Infrastructure Limited

Subsidiary

100

NO

5.

Hindalco Almex Aerospace Limited

Subsidiary

97.18

NO

6.

East Coast Bauxite Mining Company

Subsidiary

74

NO

7.

Renuka Investments & Finance Limited

Subsidiary

100

NO

8.

Renukeshwar Investments & Finance Limited

Subsidiary

100

NO

9.

Lucknow Finance Company Limited

Subsidiary

100

NO

10.

Suvas Holdings Limited

Subsidiary

74

NO

11.

Hindalco Jan Seva Trust

Subsidiary

100

NO

12.

Copper Jan Seva Trust

Subsidiary

100

NO

13.

Utkal Alumina Jan Seva Trust

Subsidiary

100

NO

14.

Utkal Alumina Social Welfare Foundation

Subsidiary

100

NO

15.

Kosala Livelihood and Social Foundation

Subsidiary

100

NO

16.

A V Metal Inc.

Subsidiary

100

NO

17.

Birla Copper Asoj Private Limited

Subsidiary

100

NO

18.

Novelis Inc.

Subsidiary

100

Novelis follows Business
Reponsibility as per GRI
initiatives

19.

Novelis do Brasil Ltda

Subsidiary

100

20.

Brecha Energetica Ltda

Subsidiary

99.99

21.

4260848 Canada Inc.

Subsidiary

100

22.

4260856 Canada Inc.

Subsidiary

100

23.

8018227 Canada Inc.

Subsidiary

100

24.

Novelis (China) Aluminum Products Co. Ltd.

Subsidiary

100

25.

Novelis (Shanghai) Aluminum Trading
Company

Subsidiary

100

26.

Novelis PAE S.A.S.

Subsidiary

100

27.

Novelis Aluminum Beteiligungs GmbH

Subsidiary

100

28.

Novelis Deutschland GmbH

Subsidiary

100

29.

Novelis Sheet Ingot GmbH

Subsidiary

100

These are the subsidiaries
of Novelis Inc. They follow
Business Reponsibility as
per GRI initiatives.

Integrated Annual Report 2021-22

243

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Annexure I
Sr.
No.

Name of the Holding/Subsidiary/
Associate/Joint Venture

Indicate
whether
Holdings/
Subsidiary/
Associate/
Joint Venture% Shareholding
as on 31.03.2022

Does the Entity
indicated at Column A,
participate in the BusinessResponsibility initiativesof the listed entity?
(Yes/No)

Sr.
No.

Name of the Holding/Subsidiary/
Associate/Joint Venture

Indicate
whether
Holdings/
Subsidiary/
Associate/
Joint Venture% Shareholding
as on 31.03.2022

Does the Entity
indicated at Column A,
participate in the BusinessResponsibility initiativesof the listed entity?
(Yes/No)30.

Novelis (India) Infotech Ltd.

Subsidiary

100

60.

Novelis ALR Aluminium Holdings Corporation

Subsidiary

100

31.

Novelis Aluminum Holding Unlimited
Company

Subsidiary

100

61.

Novelis ALR International Inc.

Subsidiary

100

32.

Novelis Italia SpA

Subsidiary

100

62.

Novelis ALR Rolled Products, LLC

Subsidiary

100

33.

Novelis de Mexico S.A. de C.V.

Subsidiary

100

63.

Novelis ALR Rolled Products, Inc.

Subsidiary

100

34.

Novelis Korea Limited

Subsidiary

100

64.

Nichols ALR Aluminum LLC

Subsidiary

100

35.

Novelis AG

Subsidiary

100

65.

Novelis ALR Rolled Products Sales Corporation

Subsidiary

100

36.

Novelis Switzerland S.A.

Subsidiary

100

66.

Novelis ALR Recycling of Ohio, LLC

Subsidiary

100

37.

Novelis MEA Ltd.

Subsidiary

100

67.

Novelis ALR Aluminum-Alabama LLC

Subsidiary

100

38.

Novelis Europe Holdings Limited

Subsidiary

100

68.

Novelis ALR Asset Management Corporation

Subsidiary

100

39.

Novelis UK Ltd.

Subsidiary

100

69

MNH Shakti Limited

Joint Ventures

15

NO

40.

Novelis Services Limited

Subsidiary

100

70

Hydromine Global Minerals (GMBH) Limited

Joint Ventures

45

NO

41.

Novelis Corporation

Subsidiary

100

71

Aditya Birla Science & Technology Company
Private Limited

Associates

49

NO

42.

Novelis South America Holdings LLC

Subsidiary

100

72

Aditya Birla Renewables Subsidiary Limited

Associates

26

NO

43.

Novelis Holdings Inc.

Subsidiary

100

73

Aditya Birla Renewables Utkal Limited

Associates

26

NO

44.

Novelis Services (North America) Inc.

Subsidiary

100

74

Aditya Birla Renewables Solar Limited

Associates

26

NO

45.

Novelis Global Employment Organization, Inc.

Subsidiary

100

75

Associates

30

NO

46.

Novelis Services (Europe) Inc.

Subsidiary100

Deutsche Aluminum Verpachung Recycling
GMBH

47.

Novelis Vietnam Company Limited

Subsidiary

100

76

France Aluminum Recyclage SPA

Associates

20

NO

48.

Aleris Asia Pacific International (Barbados) Ltd.

Subsidiary

100

49.

Aleris Aluminum (Zhenjiang) Co., Ltd.

Subsidiary

100

50.

Aleris (Shanghai) Trading Co., Ltd.

Subsidiary

100

51.

Aleris Asia Pacific Limited

Subsidiary

100

52.

Aleris Aluminum Japan, Ltd.

Subsidiary

100

53.

Novelis Casthouse Germany GmbH

Subsidiary

100

54.

Aleris Deutschland Holding GmbH

Subsidiary

100

55.

Novelis Koblenz GmbH

Subsidiary

100

56.

Novelis Netherlands B.V.

Subsidiary

100

57.

Aleris Switzerland GmbH

Subsidiary

100

58.

Aleris Aluminum UK Limited

Subsidiary

100

59.

Aleris Holding Canada ULC

Subsidiary

100

244

HINDALCO INDUSTRIES LIMITED

These are the subsidiaries
of Novelis Inc. They follow
Business Reponsibility as
per GRI initiatives.

These are the subsidiaries
of Novelis Inc. They follow
Business Reponsibility as
per GRI initiatives

Integrated Annual Report 2021-22

245

Corporate Overview

Strategic Overview

Our Capitals

Financial Statements

Statutory Reports

Corporate Governance Report
Governance Philosophy
The Aditya Birla Group is committed to the adoption of best
governance practices and its adherence in the true spirit, at all
times. Our governance practices are a product of self-desirereflecting the culture of the trusteeship i.e., deeply ingrainedin our value system and reflected in our strategic thoughtprocess. At a macro level, our governance philosophy rests onfive basic tenets viz., Board accountability to the Company andthe shareholders, strategic guidance and effective monitoringby the Board, protection of minority interests and rights,
equitable treatment of all shareholders as well as superiortransparency and timely disclosures.
In line with this philosophy, Hindalco Industries Limited (theCompany), flagship Company of the Aditya Birla Group, isstriving for excellence through adoption of best governanceand disclosure practices. The Company, as a continuous
process, strengthens the quality of disclosures, on the Board
composition and its functioning, remunerations paid and levelof compliance with various Corporate Governance Codes.
Compliance with Corporate Governance Guidelines
The Company is fully compliant with the requirements under
Securities and Exchange Board of India (Listing Obligations &Disclosure Requirements) Regulations 2015, and amendment
thereto hereinafter referred to the “Listing Regulations”. Your
Director#

Category

Mr. Kumar Mangalam Birla 5, 6 Non-Executive[DIN: 00012813]
Chairman

Mrs. Rajashree Birla ,[DIN: 00022995]
5

Mr. A. K. Agarwala[DIN: 00023684]
Mr. K. N. Bhandari[DIN: 00026078]

246

2

6

Non-Executive

Company’s compliance with these requirements is presented
in the subsequent sections of this report.
Board of Directors
Composition of the BoardYour Company’s Board comprises of 9 Non-Executive
Directors as on March 31, 2022 with considerable experiencein their respective fields. Of these, 6 Directors are Independent
Directors of which 1 includes a woman director.
None of the Directors on the Board is a Member of more than
10 Committees or a Chairman of more than 5 Committees (asspecified in Regulation 26 of Listing Regulations), across all the
Companies in which they hold Directorships. Further, none of
the Non-Executive Directors serve as Independent Directors
in more than 7 listed companies and none of the Executive
or Whole-time Directors serve as Independent Directors
on any listed Company. All the Directors have periodicallyintimated about their Directorship and Membership in thevarious Boards / Committees of other companies. The sameis within permissible limits as provided by the Companies Act,
2013 and Listing Regulations.
The details of the Directors with regard to outside directorships
and committee positions as at March 31, 2022 are as follows:

No. of otherNo. of outside
Director- ships Companies Committee
Held3
Positions Held4
PublicMemberChairman

07

-

-

05

-

-

Non-Executive

02

-

-

Independent1

09

07

03

HINDALCO INDUSTRIES LIMITED

Name of Outside Listed Entity
where the person is a Director

Category of
Directorship in outside
Listed Entities

1. Grasim Industries Limited
2. Aditya Birla Fashion and Retail
Limited3. UltraTech Cement Limited
4. Aditya Birla Sun Life AMC Limited
5. Century Textiles and Industries
Limited6. Aditya Birla Capital Limited

Non-Executive Chairman
Non-Executive Chairman

1. Grasim Industries Limited
2. UltraTech Cement Limited
3. Pilani Investment and Industries
Corporation Limited
4. Century Textiles and Industries
Limited5. Century Enka Limited

Non-Executive Director
Non-Executive Director
Non-Executive Director

Non-Executive Director--

1. Jaiprakash Associates Limited
2. Gujarat Sidhee Cement Limited
3. Saurashtra Cement Limited
4. Shristi Infrastructure
Developments Corporation
LimitedNon-Executive Chairman
Non-Executive Chairman
Non-Executive Chairman
Non-Executive Chairman

Non-Executive Director

Independent Director
Independent Director
Independent Director
Independent Director

Director#

Mrs. Alka Bharucha[DIN: 00114067]

Category

Independent

No. of otherNo. of outside
Director- ships Companies Committee
Held3
Positions Held4
1

PublicMemberChairman

08

10

04

05

01

Category of
Directorship in outside
Listed Entities

1. UltraTech Cement Limited
2. Orient Electric Limited
3. Honda India Power Products
Limited
4. Birlasoft Limited
5. Aditya Birla Sun Life AMC Limited

Independent Director
Independent Director
Independent Director

1. Century Textile and Industries
Limited2. Pilani Investment and Industries
Corporation Limited

Independent Director

Independent Director
Independent Director

Mr. Y. P. Dandiwala[DIN: 01055000]

Independent1

Mr. Satish Pai[DIN: 06646758]

Managing
Director

-

-

-

-

-

Mr. Praveen Kumar Maheshwari[DIN: 00174361]

Whole-Time
Director

01

-

-

-

-

Dr. Vikas Balia[DIN: 00424524]

Independent1

-

-

-

-

-

Mr. Sudhir Mital[DIN: 08314675]

Independent1

01

-

-

Mr. Anant Maheshwari(DIN No.02963839)

Independent1,

-

-

-

1.

03

Name of Outside Listed Entity
where the person is a Director

Independent Director

1. Jaiprakash Power Venture Limited Independent Director--

Independent Director means a director defined as such under Regulation 16 of the Listing Regulations and Section 149 of the Companies Act, 2013.

2. Mr. A. K. Agarwala was an Executive Director till September 10, 2003. Thereafter, he has moved to other responsibilities in the Aditya Birla Group.
3. Excludes Directorship held in Private Limited Companies, Foreign Companies and Companies under Section 8 of the Companies Act, 2013.
4. Represents only membership/chairmanship of Audit Committee and Stakeholders Relationship Committee of Indian Public Limited Companies. Further, membership includes
Chairmanship.
5. No other Director is related to any other Director on the Board except for Mr. Kumar Mangalam Birla and Mrs. Rajashree Birla who are son and mother respectively.
6. Mr. Kumar Mangalam Birla and Smt. Rajashree Birla belong to the Promoter and Promoter group of the Company.
7. Mr. D. Bhattacharya (DIN: 00033553) has resigned as Non-Executive Director w.e.f March 02, 2022 due to personal reasons.
8. As per the Companies Act, 2013 maximum number of public companies in which a person can be appointed as director shall not exceed ten.
#

The average tenure of the Board as on 31st March, 2022 is approximately 12 years.

Board’s functioning and Procedure
Hindalco’s Board of Directors plays a primary role in ensuring good governance and functioning of the Company. All statutory
and other significant & material information including information as mentioned in Regulation 17 (7) read together with Schedule
II of Listing Regulations is placed before the Board to enable it to discharge its responsibility of strategic supervision of theCompany as trustees of the shareholders.
Your Company’s Board of Directors have identified the following skills / expertise / competencies to function anddischarge their responsibilities effectively: Industry knowledge-

Innovation, Technology and Digitalisation-

Financial literacy-

Corporate Governance, Legal and Complaince-

Strategic expertise-Marketing-

Sustainability-

Risk Management-

Human Resource Development-

General Management

Integrated Annual Report 2021-22

247

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Corporate Governance Report
Following are the names of the Directors with such skills / expertise / competencies
Industry
Innovation,
Knowledge Technology andDigitisation

3

Financial
Literacy

3

Corporate
Strategic Marketing Sustainability
Risk
Human
GeneralMetalsGovernance, Legal Expertise
Management
Resource
Management andand Compliance
Development
MiningKumar Mangalam Birla

3

3

Rajashree Birla

3

Satish Pai

3

3

3

3

3

Praveen Kumar
Maheshwari

3

3

3

3

3

A K Agarwala

3

3

3

3

3

K N Bhandari

3

3

3

Y P Dandiwala3

3Alka Bharucha

3

Vikas Balia

3

Sudhir Mital

3

Anant Maheshwari

3

3

3

3

3

3

3

3

3

3
3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

Curiosity and courage – to ask questions and courage topersist in asking or challenging management and fellow
board members where necessary;•

Interpersonal skills – work well in a group, listen well, betactful, able to communicate point of view frankly;•

Interest – in the organization, its business and the people;•

Instinct – good business instincts and acumen, ability to
get to the crux of the issue quickly;•

Believer in gender diversity and•Active participation – at deliberations in the meeting.

Your Company’s Board comprises of 6 and 5 Independent
and Non-Independent Directors respectively. The Directors
are professionals, possessing wide experience and expertisein their areas of function - strategy; finance; governance andlegal; marketing, insurance, among others, which together with
their collective wisdom fuel your Company’s growth. With onesixth of the Board comprising of woman directors, the Board
reflects gender diversity.
A brief profile of the Directors of your Company is asfollows:
Kumar Mangalam Birla was appointed as a Non-Executive
Chairman of our Company with effect from October 19, 1995. He
is the Chairman of the Board of Directors of your Company andthe Chairman of Aditya Birla Group (“Group”), which operates in
36 countries across six continents. He is a chartered accountant
and holds an MBA degree from the London Business School.
Mr. Birla chairs the Boards of all major Group companies in India
and globally. In the 26 years that he has been at the helm of
the Group, he has accelerated growth, built meritocracy, and

3

3

3

•

HINDALCO INDUSTRIES LIMITED

3

3

Board members collectively display the following
personal qualities:•
Integrity – fulfilling a director’s duties and responsibilities;

248

3

3

3

enhanced stakeholder value. In the process he has raised theGroup’s turnover by over 25 times. He has been the architect ofover 40 acquisitions in India and globally, among the highest
by any Indian multinational. Under his stewardship, the Group
enjoys a position of leadership in all the major sectors in which
it operates, from cement to chemicals, metals to textiles, andapparels to financial services. Over the years, Mr. Birla has built
a highly successful meritocratic organization, anchored by an
extraordinary force of 140,000 employees belonging to 100
different nationalities. Outside the Group, Mr. Birla has held
several key positions on various regulatory and professional
Boards. He was a Director on the Central Board of Directorsof the Reserve Bank of India. He was Chairman of the Advisory
Committee constituted by the Ministry of Company Affairs andalso served on the Prime Minister of India’s Advisory Council
on Trade and Industry. As the Chairman of the Securities andExchange Board of India Committee on Corporate Governance,
he framed the first-ever governance code for Corporate India.
Over the years, Mr. Birla has been conferred several prestigious
awards. In 2021, he received the TiE Global EntrepreneurshipAward for Business Transformation, the first Indian businessleader to receive this honour. He is also the first Indian
Industrialist to be conferred an Honorary degree by theInstitute of Company Secretaries of India. Mr. Birla is deeply
engaged with Educational Institutions. He is the Chancellorof the Birla Institute of Technology & Science (“BITS”) with
campuses in Pilani, Goa, Hyderabad and Dubai. He is also the
Chairman of India’s premier management institute — Indian
Institute of Management, Ahmedabad. On the global arena,
Mr. Birla is an Honorary Fellow of the London Business School.
In 2019, Mr. Birla constituted a £15mn scholarship programme
at the London Business School in memory of his grandfather,Mr. B. K. Birla, marking the largest ever endowed scholarshipgift to a European Business School. A firm practitioner of thetrusteeship concept, Mr. Birla has institutionalized the conceptof caring and giving at the Group. With his mandate, theGroup is involved in meaningful welfare driven activities that
distinctively enrich the lives of millions.
Rajashree Birla is a Non-Executive Director and was appointed
on the Board of Directors on March 15, 1996. Mrs. Rajashree
Birla is an exemplar in the area of community initiatives andrural development. Mrs. Birla spearheads the Aditya Birla
Centre for Community Initiatives and Rural Development, theGroup’s apex body responsible for development projects.
She oversees the social and welfare driven work across all
the Group’s major companies. The footprint of the Centre’s
work straddles over 7,000 villages, reaching out to 9 million
people. The Group runs 20 hospitals and 56 schools where
quality education is imparted to over 46,500 children. Bothits hospitals as well as schools are ‘Not for Profit’ institutions.
Mrs. Birla is the Chairperson of the FICCI – Aditya Birla CSR
Centre for Excellence, Habitat for Humanity (India) and is on the
Board of the Asia Pacific Committee as well as Habitat’s Global
Committee. She is the Chairperson of FICCI’s first ever Expert
Committee on CSR. She is on the Board of BAIF Development
Research Foundation, Pune and also serves on the Board of
Directors of the CSR Committee of the State Bank of India. As apatron of arts and culture, she heads the “Sangit Kala Kendra”,
a Centre for performing arts, as its President. In recognitionof the exemplary work done by Mrs. Rajashree Birla, leading
national and international organisations have showeredaccolades upon her. Among these the most outstanding one
has been that of the Government of India which bestowed the“Padma Bhushan” Award in 2011 on Mrs. Rajashree Birla in thearea of “Social Work”. In recognition of Mrs. Birla’s unrelenting
endeavours towards polio eradication, she was honoured withthe much coveted “Polio Eradication Champion” Award by theGovernment of India. Likewise, the “Global Golden PeacockAward for CSR” was conferred upon her by Dr. Ola Ullsten,
the Former Prime Minister of Sweden in Portugal. Amongother distinctive awards received by Mrs. Birla, feature theEconomic Times’ prestigious Award: Corporate Citizen of theYear, twice in a decade, first in 2003 and again in 2012; the All
India Management Association’s “Corporate Citizen of the YearAward”, the IOD’s “Distinguished Fellowship Award” and the“FICCI FLO Golden Laurel Award”.
Askaran Agarwala is a Non-Executive Director of our Company
and was appointed on the Board in 1998. He is a Trustee ofseveral organisations including Sarla Basant Birla Param
Bhakti Trust, Aditya Vikram Birla Memorial Trust, The Aditya
Birla Foundation, Ladsaria Charitable & welfare Trust andHellen Keller Institute of the Deaf and Blind. He holds a degreein Commerce and Law of Calcutta University and is fellow
member of the Institute of Chartered Accountants of India.
Mr. Sudhir Mital is a Non-Executive Director and Independent
Director of our Company with effect from November 11, 2019
for a period of five years. He is a graduate from Allahabad
University with a Master’s degree in Indian History. He also
holds additional Masters in Rural Development from the
University of Birmingham. He has been a former member of the

Indian Administrative Service from the Punjab Cadre, Secretary
to Department of Fertilizers – Government of India, and Special
Secretary to MCA. He was also a former acting Chairman ofCompetition Commission of India (CCI). Has rich professional
experience in the fields of public policy and governance after
nearly four decades of service. He has been a key functionary
with regards to the Companies Bill, 2013
Kailash Nath Bhandari is a Non-Executive and Independent
Director on the Board of our Company. Prior to joining ourCompany, he has also served as the Chairman and Managing
Director of the New India Assurance Company Limited. He
holds a Bachelor’s degree in Arts and Law.
Dr. Vikas Balia is a Non-Executive Director and Independent
Director of our Company with effect from July 19, 2019 for aperiod of five years, founder of Legalsphere Law firm, rankholding Chartered Accountant and a lawyer and has a Master’s
degree in Mercantile Laws with doctoral research (Ph. D) on
Securitization Laws. He has varied and extensive experience oncommercial and constitutional law. He is an adjunct faculty inmany institutions and lectures for CA, Law and MBA students.
Yazdi Dandiwala is a Non-Executive Director and Independent
Director of our Company with effect from August 14, 2015 for aperiod of five years. He is further reappointed for a period offive years w.e.f August 14, 2020. He is qualified as a Bachelor in
Science and holds a degree in Law. He is Solicitor by profession.
He is currently a partner of Mulla & Mulla and Craigie Blunt& Caroe, Advocates & Solicitors. He has experience as acorporate Commercial Lawyer with experience in corporate
and commercial transactions.
Alka Bharucha is a Non- Executive Director and Independent
Director of our Company with effect from July 11, 2018 for aperiod of five years. She earned her B.A (Hons) in 1976 and LLB
in 1979 from University of Bombay, Masters in Law from the
University of Bombay and University of London and Solicitor
High Court Mumbai and Supreme Court of England and Wales.
She began her career with Mulla & Mulla & Craigie Blunt &Caroe, and joined Amarchand & Mangaldas as partner in
1992. In 2008, she co-founded Bharucha & Partners which, on
inception, was ranked by RSG Consulting, London among the
top fifteen firms in India. Mrs. Bharucha has been ranked by
Chambers Global, Legal 500 and Who’s Who Legal amongst
India’s leading lawyers. She chairs the transactions practice at
Bharucha & Partners. Her core areas of expertise are mergers
and acquisitions, joint ventures, private equity, banking andfinance.
Anant Maheshwari is presently President, Microsoft India.
Prior to this he has worked with Honeywell Inc and McKinsey& Co. He currently chairs CII IT & ITeS committee and is amember of NASSCOM Exec Council. His career spans acrossthe fields of Technology, Industrial & Automation, Enterprise& B2B markets, Strategy & Business Development.
Satish Pai was appointed as Whole-Time Director on our
Board since August, 2013 and appointed as the Managing
Director of our Company with effect from August 01, 2016

Integrated Annual Report 2021-22

249

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Corporate Governance Reportfor a period of five years. He was further reappointed by the
Board of Directors at their meeting held on May 21, 2021 for aperiod of three years w.e.f. August 1, 2021. He holds a Bachelor’s
degree in Mechanical Engineering from the Indian Instituteof Technology, Madras. He has experience in areas such as
operations, recruitment, and training.
Praveen Kumar Maheshwari is a Whole Time Director andChief Financial Officer of the Company. He joined the Company
as its Chief Financial Officer in December 2011. He was inductedin the Board as the Whole Time Director in May 2016. He also
worked as the CEO of Copper business of the Company for theperiod from 1st July 2019 to 30th April 2021. Mr. Maheshwari, aChartered Accountant with an MBA from IIM – Ahmedabad,
has over 39 years of work experience in areas of General
Management and Finance, including mergers & acquisitions,fundraising, investor relations in India and global financial
markets. Prior to joining Hindalco, he has worked with a numberof business houses engaged in different industries. His last
assignment before joining the Company was as Group CFO& Executive Director – Finance of Bharat Forge Limited. He
is reappointed for a period of one year w.e.f 28th May 2022
by the Board of Directors subject to necessary approval byshareholders, in ensuing annual general meeting.
Board Meetings
The Company Secretary drafts the agenda for each meetingalong with the explanatory notes. The Board meets at Oncea quarter to review the quarterly results and other items on
the agenda. Various Board Committees meet as per the legal
requirement or otherwise to transact the business delegatedby Board of Directors.
Since the Companies Act 2013, read with the relevant rules
made thereunder, facilitates the participation of Director
in Board/Committee Meetings through video conferencing
or other audio visual mode the option to participate in themeeting through video conferencing was made available forthe Directors except in respect of such meetings/Items which
are not permitted to be transacted through video conferencing.
The Members of the Board have complete freedom to express
their opinion and decisions are taken after detailed discussion.
The details of Board Meetings held during FY 2021-2022 areas outlined below:
Date of Board Meeting

City

No. of Directors Present

May 21, 2021

Mumbai12 out of 12

July 02, 2021

Mumbai12 out of 12

August 06, 2021

Mumbai12 out of 12

September 17, 2021

Mumbai11 out of 12

November 12, 2021

Mumbai11 out of 12

January 20, 2022

Mumbai12 out of 12

February 10, 2022

Mumbai12 out of 12

250

HINDALCO INDUSTRIES LIMITEDThe details of attendance of each Director at the Board
Meetings and Last Annual General Meeting (AGM) are as
follows:
Name of Director

No. of Board
Meetings

Outcome of the evaluation exercise:Committees of the Board of Directors

1.

The Board as a whole perform satisfactorily.

2.

Independent Directors are rated high in understanding
the Company’s business and expressing their view during
the Board Meeting.

The Board has constituted following Committees of Directors
to deal with matters and monitor the activities falling within
the respective terms of reference: -Attended Last
AGM@

Held

Attended

3.

The Non-Executive Director scored well in all aspects.

Audit Committee

Mr. Kumar Mangalam Birla

7

7

Yes

4.

Mrs. Rajashree Birla

7

5

Yes

Directors rated Executive Directors as action oriented andgood in implementing Board decisions.

Mr. A. K. Agarwala

7

7

Yes

5.

Board members rated high to the Chairman leading theboard effectively.

Mr. D. Bhattacharya*

7

7

Yes

6.

Mr. K. N. Bhandari

7

7

Yes

Board members has shown satisfaction in functioning of
the Committees.

Mrs. Alka Bharucha

7

7

Yes

Constitution of Audit Committee and its functions
Your Company has an Audit Committee at the Board
level which acts as a link between the Management, theStatutory, the Internal Auditors and the Board of Directors
and oversees the financial reporting process. The Committee
is governed by a Charter which is line with the regulatory
requirements mandated by the Companies Act, 2013 and Listing
Regulations.

Mr. Y. P. Dandiwala

7

7

Yes

Mr. Satish Pai

7

7

Yes

Mr. Praveen Kumar
Maheshwari

7

7

Yes

Dr. Vikas Balia

7

7

Yes

Mr. Sudhir Mital

7

7

Yes

Mr. Anant Maheshwari

7

7

Yes

Independent Director’s Meeting
During the year under review, the Independent Directors
met without the presence of Non Independent Directors andmembers of the management inter alia to discuss:•

Evaluate the performance of Non Independent Directors
and the Board of Directors as a whole.

•

Evaluate the performance of the Chairman, taking into
account the views of Executive and Non-Executive
Directors.

AGM held on 23rd August, 2021.

@* Mr. D. Bhattacharya tendered his resignation as Non-Executive Director w.e.f
March 02, 2022.

Board attendance stood at 97.62% over a required attendanceof 14.28%.

Performance Evaluation of Board
Pursuant to the provisions of Companies Act, 2013 and Listing
Regulations, the Directors have carried annual performance
evaluation of Board, Independent Directors, Non-Executive
Directors, Executive Directors, Committee and Chairman of
the Board.
The evaluation framework focused on various aspects of Board
and Committees such as review, timely information frommanagement etc. Also, performance of individual directors
was divided into Executive, Non-Executive and Independent
Director and based on the parameters such as contribution,
attendance, decision making, action oriented, external
knowledge etc.
The evaluation exercise has been carried out by the Board on thebasis of Evaluation template for Board, Independent Director,
Non-Executive Director, Executive Directors, Committees andChairman of the Board. The template had various questions
to be replied by the directors on aforesaid parameters. The
Nomination and Remuneration Committee evaluated theperformance on the basis of response received from the
Directors. Similarly, the Independent Directors evaluated theperformance of Non Independent Directors, Chairman andassessed the quality, quantity and flow of information between
the Company, Management and the Board.

•

Evaluate the quality, content and timelines of flow of
information between the Management and the Board thatis necessary for the Board to effectively and reasonably
perform its duties.

The Independent Directors expressed satisfaction on theoverall performance of the Directors and the Board as a whole.
In the opinion of the Board, the Independent Directors fulfil all
the conditions specified in the Listing Regulations as amended
and are independent of the management.

Familiarisation Programme for Independent
Directors

The Committee comprises of three Non-Executive Directors,
all of whom are Independent Directors. The followings are themembers of Audit Committee:
Mr. K.N. Bhandari– Chairman

Mr. Y.P. Dandiwala– MemberDr. Vikas Balia– MemberMr. Anil Malik, Company Secretary also acts as Secretary to
the Committee
During the year, the Audit Committee met 6 times i.e., on
April 09, 2021, May 21, 2021, August 06, 2021, October 11, 2021,
November 12, 2021 and February 10, 2022 to deliberate on
various matters. The attendance of each Audit Committee
members are as follows:
Name of the Director

No. of Meetings
held

No. of Meetings
Attended

Mr. K. N. Bhandari

6

6

Mr. Y. P. Dandiwala

66

Dr. Vikas Balia

6

6

All new Independent Directors inducted on the Board are given
a letter of appointment setting out their roles, functions, duties
and responsibilities.

1.

The Chairman of the Audit Committee, Mr. K. N. Bhandari
was present at the last Annual General Meeting of yourCompany held on August 23, 2021.

The Directors are familiarized with your Company’s Businessand its operations. Interactions are held between the Directors
and Senior Management of your Company. Directors arefamiliarized with organizational set-up, functioning ofvarious department, internal control processes and relevant
information pertaining to your Company. They are periodically
updated on industry scenario, changes in regulatory frameworkand the impact thereof on the working of your Company.

2.

The Managing Director, Whole-Time Director and CFO,
the representative of the Statutory Auditor, Head of
the Internal Audit are permanent invitees of the Audit
Committee. The representative of the Cost Auditors
is invited to the Audit Committee Meetings whenevermatters relating to cost audit is considered.

The details on the Company’s Familiarization Programme
for Independent Directors can be accessed at: http://www.
hindalco.com/upload/pdf/Familiarisation_Programme_
hindalco.pdf

Role of Audit Committee:(1) Oversight of the listed entity’s financial reporting process
and the disclosure of its financial information to ensurethat the financial statement is correct, sufficient andcredible;

Integrated Annual Report 2021-22251

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Corporate Governance Report(2)

Recommendation for appointment, remuneration andterms of appointment of auditors of the listed entity;(3)

Approval of payment to statutory auditors for any otherservices rendered by the statutory auditors;(4)

Reviewing, with the management, the annual financial
statements and auditor’s report thereon before submission
to the board for approval, with particular reference to:(a)Matters required to be included in the Director’s
Responsibility Statement to be included in the
Board’s Report in terms of clause (c) of sub section(3) of Section 134 of the Companies Act, 2013;(13) Reviewing the adequacy of internal audit function, if any,
including the structure of the internal audit department,
staffing and seniority of the official heading thedepartment, reporting structure coverage and frequency
of internal audit;(14) Discussion with internal auditors of any significant
findings and follow up there on;(15) Reviewing the findings of any internal investigations by
the internal auditors into matters where there is suspectedfraud or irregularity or a failure of internal control systemsof a material nature and reporting the matter to the board;(16) Discussion with Statutory Auditors before the audit
commences, about the nature and scope of audit as wellas post-audit discussion to ascertain any area of concern;(b)Changes, if any, in accounting policies and practices
and reasons for the same;(c)

Major accounting entries involving estimates basedon the exercise of judgment by management;(d)Significant adjustments made in the financial
statements arising out of audit findings;(17) To look into the reasons for substantial defaults inthe payment to the depositors, debenture holders,shareholders (in case of non-payment of declared
dividends) and creditors;(e)Compliance with listing and other legal requirements
relating to financial statements;(18) To review the functioning of the whistle blower
mechanism;(f)Disclosure of any related party transactions;(g)Modified opinion(s) in the draft audit report;(19) Approval of appointment of Chief Financial Officer after
assessing the qualifications, experience and background,etc. of the candidate;(5)

Reviewing, with the management, the quarterly financial
statements before submission to the board for approval;(20) Carrying out any other function as is mentioned in theterms of reference of the Audit Committee.

(6)

Reviewing, with the management, the statement of uses
/ application of funds raised through an issue (public
issue, rights issue, preferential issue, etc.), the statementof funds utilized for purposes other than those stated in
the offer document / prospectus / notice and the reportsubmitted by the monitoring agency monitoring theutilisation of proceeds of a public or rights issue, andmaking appropriate recommendations to the board to
take up steps in this matter;(21) Reviewing the utilisation of the loans and / or advancesfrom / investments by the Holding Company in thesubsidiary exceeding ` 100 crore or 10% of the asset sizeof the subsidiary, whichever is lower including existingloans / advances/ investments existing as on April 01,
2019.

Reviewing and monitoring the auditor’s independence
and performance, and effectiveness of audit process;B.

The audit committee reviews the following information:(1)

Management Discussion and Analysis of financial
condition and results of operations;(2)Statement of significant related party transactions(as defined by the audit committee), submitted bymanagement;

(7)
(8)
(9)

Approval or any subsequent modification of transactionsof the listed entity with related parties;
Scrutiny of inter-corporate loans and investments;(10) Valuation of undertakings or assets of the listed entity,
wherever it is necessary;(11) Evaluation of internal financial controls and risk
management systems;(12) Reviewing, with the management, performance ofstatutory and internal auditors, adequacy of the internal
control systems;
252

HINDALCO INDUSTRIES LIMITED(22) consider and comment on rationale, cost-benefits
and impact of schemes involving merger, demerger,
amalgamation etc., on the listed entity and its shareholders.

(3)
(4)
(5)

Management letters / letters of internal control
weaknesses issued by the Statutory Auditors;
Internal audit reports relating to internal control
weaknesses; andThe appointment, removal and terms of remuneration of
the Chief Internal Auditor;(6)

Statement of deviations:(a)Quarterly statement of deviation(s) including report ofmonitoring agency, if applicable, submitted to Stock
Exchange(s) in terms of Regulation 32(1) of the Listing
Regulations.

(b)Annual statement of funds utilized for purposes other thanthose stated in the offer document/prospectus/notice interms of Regulation 32(7) of the Listing Regulations.

The Company’s shares are compulsorily traded anddelivered in the dematerialized form in all Stock
Exchanges. To expedite the transfer in the physicalsegment, necessary authority has been delegated tocertain officers, who are authorized to transfer up to
10,000 shares under one transfer deed.
Number of shareholders complaints received so far/number not solved to the satisfaction of shareholders/
number of pending complaints
Details of complaints received, disposed off and pending
during the year, number of shares transferred during theyear, time taken for affecting these transfers and thenumber of share transfers pending are furnished in the“Shareholder Information” section of this Annual Report.

Stakeholder’s Relationship Committee
The Company has a “Stakeholder’s Relationship Committee”
at the Board level to specifically look into various aspects ofinterests of shareholders, debenture holders and other security
holders.
The role of the committee is to specifically look into various
aspects of interest of shareholders, debenture holders andother security holders including:

Nomination and Remuneration Committee

1.

Mr. K. N. Bhandari– Chairman

Mr. Kumar Mangalam Birla– MemberMr. Y. P. Dandiwala– Member

Resolving the grievances of the security holder of theCompany including complaints related to transfer/transmission of shares, non-receipt of Annual Reports
non-receipts of declared dividends issue of new/
duplicate Certificate, General Meetings etc.

2.

Review of measures taken for effective exercise of voting
rights by shareholders.

3.

Review of various measures and initiatives taken by
the listed entity for reducing the quantum of unclaimed
dividends and ensuring timely receipt of dividend
warrants/ annual reports/ statutory notices by theshareholders of the Company.
The following are the members of the Committee:

The Board has formed a Nomination and Remuneration
Committee consisting of the following members:

Mr. Anil Malik, Company Secretary also acts as Secretary to
the Committee
As per Section 178 of Companies Act, 2013 and Regulation 19
of Listing Regulations, the terms of reference are as follows:•

Identify persons who are qualified to become directors
and who may be appointed in senior management inaccordance with the criteria laid down and recommend
to the board of directors their appointment and removal.

•

For every appointment of an independent director, toevaluate the balance of skills, knowledge and experienceon the Board and on the basis of such evaluation, preparea description of the role and capabilities required of an
independent director. The person recommended to theBoard for appointment as an independent director shallhave the capabilities identified in such description. For the
purpose of identifying suitable candidates, the Committee
may:

Mr. K. N. Bhandari – Chairman
Mr. A. K. Agarwala – Member
Mr. Satish Pai– MemberMr. Anil Malik, Company Secretary, is the Complianceofficer and acts as secretary to the Committee.
During the year under review, the Committee met fourtimes i.e on May 05, 2021, August 02, 2021, November
08, 2021 and February 07, 2022 to deliberate on various
matters referred above. Details of attendance by Directors
for the Committee meetings are as follows:
Name of the Director

No. of Meetings No. of Meetings
Attended

Mr. K. N. Bhandari

44

Mr. A. K. Agarwala

44

Mr. Satish Pai

4

4

a.

Use the services of an external agencies, if required;b.

Consider candidates from a wide range ofbackgrounds, having due regard to diversity;c.

Consider the time commitments of the candidates.

•

Formulation of criteria for evaluation of performance ofIndependent Directors and the Board.

•

Carry out evaluation of every Director’s performance.

•

Formulate the criteria for determining qualifications,
positive attributes and independence of a Director.

Integrated Annual Report 2021-22

253

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Corporate Governance Report•

Recommend to the Board a policy, relating to the
remuneration for the Directors, Key Managerial Personnel
and other employees.

•

Devise a policy on Board diversity.

•

Whether to extend or continue the term of appointment
of Independent Director on the basis of report ofperformance evaluation of Independent Director.

•

Recommend to the board, all remuneration, in whateverform, payable to senior management.

The Board of Directors are elected individually based on
the recommendation of the Nomination and Remuneration
Committee. Their appointment is approved by the Board andsubsequently confirmed by the shareholders at the Annual
General Meeting.
The scope and functions of the Committee is in accordancewith the provisions of the Companies Act, 2013 and Listing
Regulations.

Mr.D. Bhattacharya*– Member•Mr. Anil Arya

– MemberMr. Y. P. Dandiwala– Member•·Mr. Anil Mathew– Member*(Resigned w.e.f. 02 March, 2022)•·

Mr. Vikram Sondhi ***– MemberDr. Mrs. Pragnya Ram: Group Executive President: Corporate
Communications and CSR is a permanent invitee to theCommittee.

•

Mr. Unnikrishnan Prabhakaran****– MemberMr. Anil Malik, Company Secretary also acts as Secretary to
the Committee.

***Ceased to be a member w.e.f 12th November, 2021

The terms of reference of Corporate Social Responsibility
Committee broadly comprises of following:

Mr. Anil Malik, Company Secretary is Compliance Officer of
the Committee and also acts as Secretary to the Committee.

(a)During the year under review, the Committee met four times i.e.
on April 08, 2021, July 08, 2021, October 08, 2021 and January
10, 2022 to deliberate on various matters. Details of attendance
by Directors for the Committee meetings are as follows:nd

Formulate and Recommendation of CSR Policy to theBoard indicating the activities to be undertaken by theCompany as specified in Schedule VII of Companies Act,
2013.

(b)

Recommend the amount of expenditure to be incurredon the activities referred to in clause(a).

(c)

Provide guidance on various CSR activities to beundertaken by the Company and to monitor its progress.

During the year under review, the Committee met three times
i.e on May 21, 2021, August 06, 2021 and November 12, 2021 todeliberate on various matters referred above. The details of
attendance of the members is as below:

During the year under review, the Committee met once i.e. on
May 19, 2021 to deliberate on various matters referred above.
The details of attendance of the members is as below:

Name of the Director

No. of Meetings

No. of Meetings
Attended

Name of the Director

Mr. K. N. Bhandari

3

3

Smt. Rajashree Birla

1

1

Mr. K. M. Birla

3

3

Mr. Satish Pai

11

Mr. Y. P. Dandiwala

33

Mr. D. Bhattacharya

1

1

Mr. A K Agarwala

1

1

Mr. Y. P. Dandiwala

11

Performance Evaluation criteria for independent directors:
1.

The Director invests time in understanding the Company
and its unique requirements.

2.

The Director brings in external knowledge and perspective
to the table for discussion.

3.

The Director expresses her / his views on issues discussed
at the Board.

4.

The Director keeps himself / herself updated on areas andissues that are likely to be discussed at the Board level.

No. of Meetings

No. of Meetings
Attended

Risk Management & Environment Social andGovernance (ESG) Committee(5)

To keep the board of directors informed about the natureand content of its discussions, recommendations andactions to be taken;(6)

The appointment, removal and terms of remuneration of
the Chief Risk Officer (if any) shall be subject to review by
the Risk Management Committee.

**Inducted as a member w.e.f. 21st May, 2021****Inducted as a member w.e.f. 12th November, 2021

Name of the Director /Member

Non-Executive Director’s Compensation and Disclosure
All fees/compensation including sitting fee paid to the NonExecutive Directors of the Company are fixed by Board of
Directors within the limits approved by the shareholders.
Details of sitting fees/compensation paid including stock
options, if any, to them are given at the respective places in
the report.

No. ofMeetings

No. of Meetings
Attended

Mr. A. K. Agarwala

44

Mr. Satish Pai

44

Remuneration of Directors and Others

Mr. D. Bhattacharya

44

Mr. K N Bhandari

3

3

Mr. Praveen Kumar Maheshwari

44

Mr. Anil Arya

44Your Company has two Executive Directors, the Boardof Directors decides the remuneration of the Managing
Director and Whole-Time Director on the recommendation ofNomination and Remuneration Committee.

Mr. Anil Mathew

4

3

Mr. Vikram Sondhi

3

3

Mr. Unnikrishnan Prabhakaran

1

1

The role of the committee shall, inter alia, include the following:(1)

To formulate a detailed risk management policy whichshall include:(a)

The Risk Management Committee has been renamed to Risk
Management & Environment, Social and Governance (ESG)
Committee at the board meeting held on February 10, 2022.

A framework for identification of internal andexternal risks specifically faced by the listed entity,in particular including financial, operational, sectoral,sustainability (particularly, ESG related risks),
information, cyber security risks or any other risk as
may be determined by the Committee.

(b)

Corporate Social Responsibility Committee(CSR)

Your Company has comprehensive Risk Management Policy.
The following are the Members of the Committee:

Measures for risk mitigation including systems andprocesses for internal control of identified risks.

(c)

Business continuity plan.

The Corporate Social Responsibility Committee comprises ofthe following members:•

Mr. A.K. Agarwala– Chairman•

Mr. Satish Pai– MemberMrs. Rajashree Birla– Chairman•

Mr. D. Bhattacharya*– MemberMr. Satish Pai		

– Member•Mr. K N Bhandari**– MemberMr. A.K. Agarwala– Member•Mr. Praveen Kumar Maheshwari– Member

HINDALCO INDUSTRIES LIMITED

To periodically review the risk management policy, at least
once in two years, including by considering the changing
industry dynamics and evolving complexity;*Resigned as a member w.e.f. 02nd March, 2022

The Company has a robust risk management framework to
identify, monitor and minimize risk as also identify business
responsibilities.

254

(4)

(2)

(3)

To ensure that appropriate methodology, processes
and systems are in place to monitor and evaluate risks
associated with the business of the Company;
To monitor and oversee implementation of the risk
management policy, including evaluating the adequacyof risk management systems;

The Company has a system where all the Directors or Senior
Management of the Company are required to disclose all
pecuniary relationship or transactions with the Company. There
were no pecuniary relationships or transactions between yourCompany and Non-Executive Director during the year.
Besides sitting fees ` 50,000/- per meeting of the Board,` 25,000/- per meeting of the Audit Committee and ` 20,000/per meeting for any other Committee thereof, the Company
also pays Commission to the Non-Executive Directors.
For FY 2021-22, the Board has approved payment of ` 7.00
crore (previous year ` 6.00 crores) as Commission to the NonExecutive Directors of the Company pursuant to the authority
given by the shareholders at the Annual General Meeting held
on September 24, 2014 to pay Commission not exceeding
1% of the net profits of the Company to the Non-Executive
Directors of the Company. The amount of commission payable
is determined after assigning weightage to attendance and thetype of meeting and other responsibilities.
Executive Directors are paid remuneration within the limits
envisaged under Section 197, Schedule V of Companies Act,
2013. The said remuneration is approved by the Board as well
as shareholders of the Company.

Integrated Annual Report 2021-22

255

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Corporate Governance Reportat the end of 3 years from date of grant) and 11,312 RSUs
(vested at the end of 1 year from date of grant). No stock
options or RSUs exercised were exercised during FY
2021-22.

The details of Remuneration package, fees paid etc. to Directors for the year ended March 31, 2022:(a)

Non-Executive Directors:
Name of Director

Sitting Fees Paid(` In Lakhs)

Commission payable(` In Lakhs)

Total Payments Paid / Payable in 2021-22(` In Lakhs)

Mr. Kumar Mangalam Birla

4.10

-

4.10

Mrs. Rajashree Birla 2

2.70

348.01350.711, 2

Mr. A. K. Agarwala

6.10

37.97

44.07

Mr. D. Bhattacharya6

5.30

34.62

39.92

Mr. Anant Maheshwari

3.50

31.61

35.11

Mr. K. N. Bhandari

7.00

61.42

68.42

Mrs. Alka Bharucha

3.50

36.61

40.11

Mr. Y. P. Dandiwala

6.60

57.75

64.35

Dr. Vikas Balia

5.00

54.40

59.40

Mr. Sudhir Mital

3.50

37.61

41.11

Stock options and RSUs are exercisable within 5 years
from the date of vesting.
(e)Notes:
1.

Mr. Kumar Mangalam Birla assumed the role of Executive Chairman of Aditya Birla Management Corporation Private Limited w.e.f. January 01, 2019.
Accordingly, he would not like to receive any commission from your Company w.e.f. January 01, 2019.

2. No Director is related to any other Director on the Board, except Mr. Kumar Mangalam Birla and Mrs. Rajashree Birla, who are son and mother respectively.

All Directors have disclosed their shareholding in the Company.
None of the Directors are holding any debentures or any
other instruments of the Company. Details of shareholding of
Directors as on March 31, 2022 are as follows:
Name of the Directors

No. of shares held

Mr. Kumar Mangalam Birla*

901,635

4. The Company has obtained shareholders’ approval for payment of commission to its Non-Executive Directors & Independent Directors, not exceeding
1% of Net Profit of the Company.

Mrs. Rajashree Birla

612,470

5. Stock Options were not granted to any Non-Executive Directors.

Mr. A. K. Agarwala

108,648

6. Mr. D Bhattacharya has resigned as Non- Executive Director w.e.f March 02, 2022.In addition to above, the Board approved pension of Mr. D. Bhattacharyaof ` 0.335 crore per month and other post-employment benefits for his past service when he was the Managing Director of the Company. The present
value of the above pension liability determined based on the actuarial valuation is accounted by the Company in its financial statements. Amount charged
as expenses in the statement of profit and loss during the year towards such post-employment benefit amounting to ` 3 crore has been disclosed as apart of managerial remuneration above, and does not include the impact of actuarial (gains)/losses recognised in other comprehensive income.

Mr. K. N. Bhandari

5,071

Mr. Y. P. Dandiwala

267

Mrs. Alka Bharucha-

Mr. Satish Pai

Executive Director

Remuneration for the year 2021-22
Relationshipwith other
Directors

All elements ofremuneration packagei.e., salary, benefits,
bonuses, pension etc.
(` in Lakhs)

Fixed component &performance linked
incentives, along withperformance criteria(` in Lakhs)

Servicecontracts,
notice period,
severance fee

Stock option
details, if any

Mr. Satish Pai(Managing Director)
See Note (a), (e)None35,55,17,143

10,97,30,000

See Note (b)See Note (c)Mr. Praveen Kumar Maheshwari(Whole-Time Director)
See Note (e)None

4,13,06,084

2,26,60,897

See Note (b)See note (d)Mr. Satish Pai Managing Director was paid a sum of` 10,97,30,000 towards performance bonus linked toachievement of targets for FY 2020-2021.

(vested at the end of 1 year from date of grant). He has
exercised 722,186 stock options during FY 2021-22. No
RSUs were exercised during FY 2021-22.

(b)

The appointment is subject to termination by threemonths notice in writing on either side. No severance
fee is payable to the Managing Director or Whole-Time
Director.

During FY 2020-21, no Stock Options or RSUs were
granted. He has exercised 65,652 stock options during
FY 2020-21. No RSUs were exercised during FY 2020-21.

During FY 2021-22, the Company granted 986,841 Stock
Options (vested 33.33% each year over a period of 3 years
from the date of grant) along with 137,969 RSUs (vested at
the end of 3 years from date of grant) and 165,562 RSUsHINDALCO INDUSTRIES LIMITED

Stock options and RSUs are exercisable within 5 years
from the date of vesting.
(d)722,564

Mr. Praveen Kumar Maheshwari

(a)

256

Remuneration excludes amortisation of fair value of
employee share based payments under Ind AS 102 andliabilities for defined benefit plans provided on actuarial
basis.

3. Your Company has a policy of not advancing any loan to its Directors except to Executive Director in the course of normal employment.

(b) Paid to Executive Directors(c)During FY 2020-21, the Company granted 29,779 Stock
Options (vested at the end of 1 year from date of grant).
No stock options or RSUs were exercised by Mr. Praveen
Kumar Maheshwari in FY 2020-21.

During FY 2021-22, the Company granted 40,323 Stock
Options (vested 33.33% each year over a period of 3 years
from the date of grant) along with 5,655 RSUs (vested-

Dr. Vikas Balia

325

Mr. Sudhir Mital-

Mr. Anant Maheshwari-*Additionally he holds 648,632 equity shares as Karta of Aditya Vikram Kumar
Mangalam Birla HUF.

Code of Conduct
The Hindalco Code of Conduct, as adopted by the Board of
Directors, is applicable to all Directors, Senior Management of
the Company. The Code is available on the Company’s website
viz: http://www.hindalco.com/upload/pdf/hindalco-code-ofconduct-BODs-SMP.pdf
Declaration of compliance with Code of Conduct
I hereby confirm that the Board of Directors and Senior
Management have affirmed compliance with Code of Conductof the Company for the financial year ended 31st March, 2022.

Place: Mumbai
Date: 22nd July, 2022

SATISH PAIManaging Director
DIN: [06646758]

Code of Conduct for Prevention of Insider
Trading
In terms of the provisions of the Securities and Exchange
Board of India (Prohibition of Insider Trading) Regulations,2015, as amended, your Company has adopted a ‘Code of
Conduct to regulate, monitor and report trading by designatedpersons in listed or proposed to be listed securities’ of yourCompany (“the Code”). The Code aims at preserving andpreventing misuse of unpublished price sensitive information.
All Designated Persons (including Directors, Key Managerial
Personnel and Employees) of your Company are covered under
the Code, which provides inter alia for periodical disclosuresand obtaining pre-clearances for trading in securities of yourCompany.

Subsidiary Companies
The Company has adopted a policy for determining ‘material’
subsidiaries and the policy can be accessed on your Company’s
website viz: http://www.hindalco.com/upload/pdf/hil-policyon-material-subsidiary.pdf
The Company is in compliance with the requirements ofRegulation 24 of Listing Regulations with respective Corporate
Governance for its subsidiary companies.

Disclosures(A) Related Party Transactions
All the related party transactions are strictly done on
arm’s length basis. The Company places all the relevant
details of a related party transaction, entered in thenormal course of business, before the Audit Committee
from time to time. There was no material related party
transaction, which are not in the normal course of thebusiness, entered into by the Company during the year.
Attention of the Members is drawn to the disclosures oftransactions with the related parties set out in Notes to
Accounts forming part of the Financial Statements. The
Board of Directors have approved and adopted a policy
on Related Party Transactions and the same has been
uploaded on the website of the Company at http://www.
hindalco.com/investor-centre/policies(B) Non Compliances/Strictures/penalties Imposed
No Non Compliance/strictures/penalties have been
imposed on the Company by Stock Exchange(s) or SEBI or
any Statutory Authority on any matters related to capital
markets during the last three years.
(C) Disclosure of Accounting Treatment
Your Company has followed all relevant AccountingStandards while preparing the Financial Statements.
(D) Risk Management
Risk evaluation and management is an ongoing process
within the organisation. Your Company has comprehensive

Integrated Annual Report 2021-22

257

Corporate Overview

Strategic Overview

Our Capitals

Financial Statements

Statutory Reports

Corporate Governance Report
Risk Management Policy and it is periodically reviewed
by the Board of Directors.
(E)

(F)

Proceeds from public issues, right issues, preferential
issues , qualified institutions placement etc:
During the year under review, the Company has notraised any proceeds from public issues, right issues orpreferential issues, qualified institutions placement etc.
Remuneration of Directors
This is included separately in this Section.

(G) Management
Management Discussion and Analysis Report is preparedin accordance with the requirements laid out under Listing
Regulations forms part of Annual Report. No materialtransaction has been entered into by the Company
with the Promoters, Directors or the Management, theirsubsidiaries or relatives, etc., that may have a potential
conflict with interests of the Company.
(H) Shareholders(i) The Company has provided the details of Directors
seeking appointment/re-appointment in the Annual
General Meeting Notice attached with this Annual
Report.
(ii)

Quarterly Presentations on the Company results
are available on the website of the Company (www.
hindalco.com) and the Aditya Birla Group website(www.adityabirla.com).

(iii) Details of total fees paid to Statutory Auditor		

During the FY 2021-22, the total fees charged for audit,
audit related services and non-assurance services
provided by Price Waterhouse & Co Chartered
Accountants LLP (FRN 304026E/ E300009) and othermember firms of PricewaterhouseCoopers global
network of firms to the Company and its subsidiaries
on a consolidated basis is as follows:(` in crore)
Price
Waterhouse& Co
Chartered
Accountants
LLP*
Statutory audit andLimited Review

4.51

61.40

Audit of special purpose
financial statementsof certain foreignsubsidiaries

0.17

-

Audit related services –Certifications

0.19

0.52

Total

4.87

61.92

*Excludes Taxes and Out of pocket expenses.

258

Other member
firms of Pricewaterhouse
Coopers global
network offirms*HINDALCO INDUSTRIES LIMITED

Whistle Blower Policy

CEO/CFO Certification

The Company promotes ethical behaviour in all its businessactivities and has put in place a mechanism for reporting illegal
and unethical behaviour. The Company has a Vigil Mechanism
and Whistle Blower Policy under which employees are free toreport violations of applicable laws and regulations and Codeof Conduct. The whistle blower may send the complaint to the
independent reporting mechanism - Ethics Hotline or to therespective Values Standards Committee (VSC), depending on
the level at which the violation is perceived to be happening,or the seniority of the individual/s involved. Employees may
also report to the Chairman of the Audit Committee. During
the year under review, no employee was denied access to the
Audit Committee.

The Managing Director and CFO have certified to the Boardthat:

We have a Code of Conduct, Vigil Mechanism and WhistleBlower Policy, and Supplier Code of Conduct in place throughwhich we promote ethical behaviour in all our businessactivities. Our Code, policies and standards promote ethicalbehaviour which helps to prevent /detect any violation of ourCode of Conduct.

A.

1.

2.

The Company is committed to providing equal opportunities
without regard to their race, caste, sex, religion, colour,
nationality, disability etc. All women associates (permanent,
temporary, contractual and trainees) as well as any women
visiting the Company’s office premises or women service
providers are covered under this policy. All employees aretreated with dignity with a view to maintain a work environment
free of sexual harassment whether physical, verbal or
psychological.
The Details of complaints filed, disposed and pending during
the FY 2021-22 is as given below:
Number ofcomplaints filed
during the financialyear
6

Number ofcomplaints
disposed during
the financial year
8*

Number ofcomplaints
pending as at endof the financial
year
0*Includes two complaints pending last year and resolved this year

these statements do not contain any materially
untrue statement or omit any material fact or containstatements that might be misleading;these statements together present a true and fairview of the Company’s affairs and are in compliancewith existing Accounting Standards, applicable laws
and regulations.

B.

There are, to the best of their knowledge and belief, notransactions entered into by the Company during the year
which are fraudulent, illegal or violative of the Company’scode of conduct.

C.

They accept responsibility for establishing and maintaining
internal controls for financial reporting and that they haveevaluated the effectiveness of internal control systems of
the Company pertaining to financial reporting and they
have disclosed to the Auditors and the Audit Committee,
deficiencies in the design or operation of such internal
controls, if any, of which they are aware and the steps they
have taken or propose to take to rectify these deficiencies.

D.

They have indicated to the Auditors and the Audit
Committee:

Prevention of Sexual Harassment
Your Company has zero tolerance for sexual harassment at
workplace and has adopted a Policy on prevention, prohibition
and redressal of sexual harassment at workplace in linewith the provisions of the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013
and the Rules thereunder for prevention and redressal ofcomplaints of sexual harassment at workplace.

They have reviewed Financial Statements and the Cash
Flow Statement for the year and that to the best of theirknowledge and belief:1.

that there were no significant changes in internal
control over financial reporting during the year;2.

that there were no significant changes in accounting
policies during the year and that the same have been
disclosed in the notes to the Financial Statements;and3.

instances of significant fraud of which they havebecome aware and the involvement therein, if any, ofthe management or an employee having a significant
role in the Company’s internal control system overfinancial reporting.

Report on Corporate GovernanceYour Company has complied with Corporate Governancerequirements specified under Regulations 17 to 27 and clauses(b) to (i) of sub regulation (2) of Regulation 46 of the Listing
Regulations.
COMPLIANCE
I.

A certificate from the Statutory Auditors confirming
compliance with the conditions of Corporate Governanceas stipulated in Listing Regulations forms part of Annual
Report.

II.

A Certificate by Company Secretary in practice thatnone of the directors have been debarred or disqualified
from being appointed for continuing as directors in thecompanies by the Board/Ministry of Corporate Affairs or
any such statutory authority forms part of Annual Report
As below:-

CERTIFICATE
Pursuant to regulation 34(3) and Schedule V Para
C clause (10)(i) of the SEBI (Listing Obligations andDisclosure Requirements) Regulations, 2015 (“SEBI Listing
Regulations”)
To
The Members
Hindalco Industries Limited
Ahura Centre, 1st Floor,
B Wing Mahakali Caves Road,
Mumbai – 400093
We have examined the relevant books, papers, minutes books,
forms and returns filed, Notices received from the Directors
during the financial Year 2021-22, and other records maintainedby the Company and also the information provided by theCompany, its officers, agents and authorised representatives of
Hindalco Industries Limited CIN.: L27020MH1958PLC011238(hereinafter called the ‘Company’) having its Registered officeat Ahura Centre, 1st Floor, B Wing Mahakali Caves Road,
Mumbai – 400093 for the purpose of issue of a Certificate,in accordance with Regulation 34 (3) read with Schedule V
Para-C Sub clause 10 (i) of the Securities Exchange Board ofIndia (Listing Obligations and Disclosure Requirements) 2015
(LODR), as amended vide notification no [SEBI/LAD/NRO/
GN/2018/10 dated May 9, 2018 issued by SEBI.
In our opinion and to the best of our knowledge and basedon such examination as well as information and explanations
furnished to us, which to the best of our knowledge and belief
were necessary for the purpose of issue of this certificate andbased on such verification as considered necessary, we hereby
certify that None of the Directors stated below who are on
the Board of the Company as on 31st March 2022 have been
debarred or disqualified from being appointed or continuing
as Directors of the Companies by Securities Exchange Boardof India or The Ministry of Corporate Affairs or any such otherstatutory authority.
S.
Name of the Director
No.

DIN

Date ofAppointment in
the Company

1

Kumar Mangalam Birla

00012813

2

Rajashree Birla

00022995 15/03/1996

16/11/1992

3

Aksaran Agarwala

00023684 11/09/1998

4

Kailash Nath Bhandari

00026078 30/01/2006

5

Debnarayan Bhattacharya*

00033553 01/10/2008

6

Alka Marezban Bharucha

00114067

11/07/2018

Integrated Annual Report 2021-22

259

Corporate Overview

Strategic Overview

Our Capitals

Financial Statements

Statutory Reports

Corporate Governance ReportS.
Name of the Director
No.

DIN

Date ofAppointment in
the Company

7

Praveen Kumar Maheshwari

00174361

28/05/2016

8

Yazdi Piroj Dandiwala

01055000 14/08/2015

9

Vikas Balia

00424524 19/07/2019

10

Satish Pai

06646758 13/08/2013

11

Sudhir Mital

08314675

12

Anant Maheshwari

02963839 14/08/2020

11/11/2019*Resignation of Debnarayan Bhattacharya with effect from March 02, 2022.

Ensuring the eligibility for the appointment / continuity of every
Director on the Board is the responsibility of the managementof the Company. Our responsibility is to express an opinion
on these based on our verification. This certificate is neither
an assurance as to the future viability of the Company nor of
the efficiency or effectiveness with which the management has
conducted the affairs of the Company.

In the last three years special resolution as set out in therespective notices for AGM’s were passed by shareholders.

Auditor’s Certificate regarding compliance of conditions of Corporate Governance

Whether any special resolution passed
last year through postal ballot?

To the Members of Hindalco Industries Limited

Person who conducted the postal exercise: : Not Applicable
Whether any special resolution is
proposed to be conducted throughpostal ballot :Dated: 23rd May 2022
Place: Mumbai•

Business Standard (English)
Navshakti (Marathi)•

AGM

Location2020-21AGM

By Video
conferencing
Mumbai

August 23, 2021

3.00 p.m.

2019-20AGM

By Video
conferencing
Mumbai

September 10, 2020

3.00 p.m.

2018-19

AGM

Nehru Centre
Auditorium

August 30, 20193.00 p.m.

260

Date

HINDALCO INDUSTRIES LIMITEDTime

All editions
Mumbai Edition only

Any website, wheredisplayed:

The compliance of conditions of Corporate Governance is the responsibility of the Company’s management. Our examination
was carried out in accordance with the Guidance Note on Certification of Corporate Governance, issued by the Institute ofChartered Accountants of India and was limited to procedures and implementation thereof, adopted by the Company forensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on thefinancial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company
has complied with the conditions of Corporate Governance as stipulated in the SEBI Listing Regulations, 2015.
We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectivenesswith which the management has conducted the affairs of the Company.

www.adityabirla.com•

For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration No. 304026E/E-300009

Whether the Company
Website displaysØ All official news releases
Ø Presentation made to
Institutional
Investors/Analysts

General Body Meetings

Year

Cities of Publication

We have examined the compliance of conditions of Corporate Governance by Hindalco Industries Limited (“the Company”),
for the year ended March 31, 2022 as stipulated in Regulations 17, 17A, 18, 19, 20, 21, 22, 23, 24, 24A, 25, 26, 27 and clauses (b)to (i) and (t) of sub-regulation (2) of regulation 46 and para C , D and E of Schedule V of the Securities and Exchange Boardof India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) (collectively referred to as “SEBI
Listing Regulations, 2015”).

www.hindalco.com						

Location and time, where Annual General Meetings (AGMs) in
the last three years were held:-

Quarterly Results:
Newspaper

Avinash Bagul
Partner
FCS No: 5578 COP No.: 19862
UDIN: F005578D000363518

Details of Annual General Meetings

No

Means of Communication

For BNP & Associates
Company Secretaries[Firm Regn. No.
P2014MH037400]

					

: No

Yes

Yes

UDIN: 22045255ANKZDI4014
Place: Mumbai
Date: July 22, 2022

Sarah George
PartnerMembership No: 045255

General Shareholder Information
The same is provided in the ‘Shareholder Information’ section.
Status of compliance of Non mandatory requirement
1.

The Company maintains a separate office for the NonExecutive Chairman. All necessary infrastructure including
vehicles for business purpose and assistance are available
to enable him discharge his responsibilities effectively.

2.

During the period under review, there is no audit
qualification in the financial statement.

3.

The post of the Non-Executive Chairman of the Board isseparate from that of the Managing Director/CEO.

4.

The Company has engaged internal auditors for aluminumand copper business separately and their report isreviewed by the Audit Committee.

Integrated Annual Report 2021-22

261

Corporate Overview

Strategic Overview

Our Capitals

Financial Statements

Statutory Reports

Shareholder Information
1.

2.

Annual General Meeting- Date and Time: 23rd August, 2022 at 03:00 p.m.

- Mode: Video conferencing (VC) /Other audio visual means (OAVM)

Financial Year

: 1 April, 2021 to 31 March, 2022
st

7. ISIN: Fully paid up equity share: ISIN INE038A01020
			 GDR: ISIN US4330641022
			 CUSIP No. 433064300
8.

stInterest Payment Date

Interest

SeriesDate of allotment

TenureRecord Date

ISIN No.

25 April*

Annually

9.55% Series(2012) –I

25 April, 2012

10 Years

7 days prior to each interest
and/or redemption payment

INE038807258

27th June**

Annually

9.55% Series(2012) –II

27th June, 2012

10 Years

7 days prior to each interest
and/or redemption payment

INE038A07266: On or before 14th February, 2023

2nd August

Annually

9.60% Series(2012)-III

2nd August, 2012

10 Years

7 days prior to each interest
and/or redemption payment

INE038A07274: On or before 30th May, 2023

*Redeemed on 25th April, 2022

Financial calendarth

Board Meetings for approval of- Financial results for the quarter ending June 30, 2022
- Financial results for the half-year ending
September 30, 2022
- Financial results for the quarter ending
December 31, 2022
- Financial results for the year ending March 31, 2023
(Audited)- Annual General Meeting for the year ended
March 31, 2023

: Tentative Dates: On or before 14th August, 2022
: On or before 14th November,2022

3.

Date of Book Closure: 16 August, 2022 to 22 August, 2022
(Both days inclusive)

4.

Dividend Payment Date

: On or after 23rd August, 2022

5.

Registered Office: Ahura Centre, 1st Floor,
B Wing, Mahakali Caves Road
Andheri (East), Mumbai - 400 093.
Tel: (91-22) 66917000
Fax: (91-22) 66917001
E-Mail: hilinvestors@adityabirla.com
Website: www.hindalco.com
CIN No. L27020MH1958PLC011238

6.

a.

: On or before 31st August, 2023
th

Listing Details:
Equity Shares

Global Depository Receipts(GDRs)

Non-Convertible Debentures

BSE Limited
Phiroze Jeejeebhoy Towers
Dalal Street, Mumbai – 400 001.

Luxembourg Stock Exchange
35 A Boulevard Joseph II
L-1840 Luxembourg

National Stock Exchange of India Limited”Exchange Plaza”,
Bandra Kurla Complex Bandra (East),
Mumbai – 400 051.

c.

262

Overseas Depository for GDRs

Domestic Custodian of GDRs

HINDALCO INDUSTRIES LIMITED: J.P. Morgan Chase Bank N.A.
P.O. Box 64504
St. Paul, MN 55164-0504
jpmorgan.adr@eq-us.com: Citibank N.A.
Custody Services
FIFC, 11th Floor, C54 & 55, G Block, Bandra Kurla Complex,
Bandra (East), Mumbai – 400 098
Tel.: 91-22- 61756895
Fax: 91-22-26532205

th**Redeemed on 27th June 2022

9.

ndNational Stock Exchange of India
Limited”Exchange Plaza”,
Bandra Kurla Complex
Bandra (East), Mumbai – 400 051.
		Note: Listing fees has been paid to all the Stock Exchanges as per their Schedule.
b.

Details of Debenture issued

Stock Code
Stock Code:Scrip Code

BSE

500440NSE

HINDALCO

Stock Exchange

Reuters

Bloomberg

BSE

HALC.BO

HNDL IN

NSE

HALC.NSNHNDL IN

Luxembourg Stock Exchange (GDRs)

HALCg.LU

HDCD LI

10. Name and Address of Debenture Trustee: IDBI Trusteeship Services Limited
			 Asian Building, Ground Floor, 17 R. Kamani Marg
			 Ballard Estate, Mumbai: 400 001
11.

Stock Price Data
FY21

Bombay Stock ExchangeHigh(In `)

Low

Close

Volume(In Nos)

National Stock ExchangeHigh(In `)Low

Close

Luxembourg Stock Exchange

Volume(In Nos)High
In US$

Low

Close

Mar-22

636

556

570

1,14,56,711

636

556

570

30,74,53,768

8.35

7.25

7.50

Feb-22

580

488

574

68,08,232

580

488

574

21,08,69,448

7.60

6.65

7.60

Jan-22

516

472

489

49,95,283

516

472

489

14,26,12,734

6.85

5.00

6.55

Dec-21

477

419

476

54,33,420

477

416

476

18,02,98,872

6.40

5.55

6.40

Nov-21

485

407

412

87,88,385

482

407

413

20,22,35,880

6.45

5.50

5.50

Oct-21

552

454

460

1,17,62,709

552

453

460

21,14,21,877

7.30

6.15

6.15

Sep-21

504

439

488

1,56,99,756

504

439

488

22,90,22,037

6.65

6.05

6.60

Aug-21

471

400

468

89,45,151

471

400

468

27,71,50,969

6.40

5.41

6.40

Jul-21

461

373

444

1,24,82,674

474

372

445

24,67,25,196

6.11

2.88

5.96

Jun-21

405

360

372

1,21,73,865

406

360

372

26,16,40,840

5.46

3.08

4.96

May-21

428

358

394

2,08,11,470

428

358

394 48,94,48,369

5.76

3.48

5.41

Apr-21

377

329

364

1,42,03,903

377

328

364

4.96

4.27

4.89

37,23,59,454

Integrated Annual Report 2021-22

263

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Shareholder Information
12.

The total number of shares transferred in the physical form during the year was 1,40,019.

Stock Performance

TRANSFER SUMMARY FROM 01-04-2021 TO 31-03-2022
Transfer period in days

Stock Performance Vs Sensex

200

FROM

TO

Number of Transfer%

Number of Shares

180

0

10

122

99.18

1,62,646

160

11

15

1

0.82

103

140

16

20

-

-

-

123

100

1,62,749

120

Total

100
80

16.

60

Investor Servicesa.

40Complaints received during the year:
Nature of complaints

20

2021-2022

Hindalco

Received

2

y-2

20

Relating to Transfers, Transmissions Dividend, Interest,
Redemption, Demat – Remat, Rights Issue and Change of
Address etc.

20

-2

03

ar
ch

ar

ru

01

-

02

22

2

22

-

01

M

Fe
b

Ap01ri0l 3
-2-2
10

21
01
M 04
ay -2 20
1 2
1
01
-0
Jun 5e-2 20
1 21
01
-0
Jul 6-2
y-2 0
1 21
01
Au 07
gu -20
st- 2
21 1
01
Se -0
pt 8em 20
be 21
r-2
01
1
-0
Oc 92
to 0
be 21
01 r-21
-10
-2
02
No
1
ve
01 mb
-11 er
-2 -2
02 1
1
De01
c-e12
m-2b
0e2r
1-21
01
Jan -0
ua1-2
ry-0
2222

0

		

Sensex

Stock Performance over the past few years

17.

Absolute Returns (in %)

14.

3 YR

5 YR

1 YR

3 YR

5 YR

Hindalco

74.27

177.18192.03

Hindalco

74.27

40.47

23.90

SENSEX

18.30

51.45

97.73

SENSEX

18.30

14.84

14.61

NIFTY

18.88

50.25

90.38

NIFTY

18.88

14.53

13.74

9

Cleared
5

5

:

Nil

Distribution of Shareholding
DISTRIBUTION SCHEDULE AS ON MARCH 31, 2022
% of holder

No. of shares held

% of holding

1000

48,48996.18

44,605,512

1.98

1001

2000

8,434

1.67

12,264,552

0.55

3

2001

5000

5,911

1.17

18,720,953

0.83

Registrar and Transfer Agents

4

5001

10000

2,133

0.42

15,153,450

0.67

The Company has In-House Investors Service Department registered with SEBI as Category II Share Transfer Agent vide
Registration no. INR 000003910.

5

10001

50000

1,647

0.33

34,438,144

1.53

6

50001

100000265

0.05

18,708,084

0.83

7

100001 and above

850

0.17

2,103,282,029

93.60

503,729100

2,247,172,724

100

Share Transfer System
Share transfer in physical form are registered and returned within a period of 15 days of receipt, provided the documents
are clear in all respects. Officers of the Company have been authorized to approve transfers up to 10,000 Shares in physicalform under one transfer deed and one Director of the Company has been authorized to approve the transfers exceeding
10,000 shares under one transfer deed. As per directives issued by SEBI, it is compulsory to trade in the Company’s equity
shares in dematerialized form.

264

9

Received

Shareholders

Investors Service Department
Hindalco Industries Limited
Ahura Centre, 1st floor, B Wing
Mahakali Caves Road
Andheri (East), Mumbai - 400 093.
Tel: (91-22) 6691 7000
Fax: (91-22) 6691 7001
E-mail: hilinvestors@adityabirla.com
15.

Shares pending for transfer

Annualised Returns (in %)1 YR

Cleared

There are no complaints which are not resolved to the satisfaction of shareholder during the yearb.
13.

2020-2021

HINDALCO INDUSTRIES LIMITED

Sr. No. Shares From

Shares To

1

0

2

Total
18.

Dematerialization of Shares and Liquidity
Around 98% of outstanding shares have been dematerialized. Trading in Hindalco Shares is permitted only in thedematerialized form 5th April, 1999 as per notification issued by Securities and Exchange Board of India.

19.

Details on use of public funds obtained in 3 years
Not Applicable.

20. Outstanding GDR/Warrants/Convertible Bonds
9,82,70,986 GDRs are outstanding as on 31st March, 2022. Each GDR represents one underlying equity share.

Integrated Annual Report 2021-22

265Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Shareholder Information
21.

Commodity price risk or foreign exchange risk and hedging activities

		cYour Company hedges its foreign currency exposure in respect of its imports and exports as per its policies. Your Company
has constituted a Risk Management Committee consisting of Directors/Executives of your Company. Your Company has
commodity/foreign exchange hedging from time to time considering various factors as per the policy of the Company.
Foreign Exchange Risk
Exchange rate movements, particularly the United States Dollar (USD) and Euro (EUR) against Indian Rupee (INR), havean impact on our operating results. In addition to the foreign exchange inflow from exports, the commodity prices in thedomestic market are derived based on the landed cost of imports in India where LME prices and USD/INR exchange rate
are the main factors. In case of conversion business, the objective is to match the exchange rate of outflows and related
inflows through derivative financial instruments. With respect to Aluminium business where costs are predominantly in INR,
the strengthening of INR against USD adversely affects the profitability of the business and benefits when INR depreciates
against USD. The company enters into various foreign exchange contracts to protect profitability. The Company also enters
into various foreign exchange contracts to mitigate the risk arising out of foreign currency exchange rate movement inforeign currency contracts executed with foreign suppliers to procure capital items for its project activities.
The details as required under SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 is as below:
1

2

Risk management policy of the listed entity with respect to commodities including through hedging.The Company has
a Risk Management Policy for Managing its Commodity Price Risk. The Policy captures the Objectives of Commodity
Risk Management and the Treatment of Different Types of Exposures. The Policy lists down the Hedging Instrumentsthat can be used, the Hedge Coverage ratios for different tenors and also mentions the Risk Management Structure
at the Company.
Exposure of the listed entity to commodity and commodity risks faced by the entity throughout the year:

		aTotal Exposure of the listed entity to commodities mentioned in table below in INR in Millions : 995,672

		bExposure of the listed entity to various commodities:

Commodity Name

Natureof Risk(Physical)

UOM

Exposure in
INR towards
the particularcommodity(` in Million)

Exposure% of such exposure hedged through commodity
in Quantity
derivatives
terms towards
Domestic Market International Market Total
the particularcommodity
OTC
Exchange
OTC
Exchange

Aluminium

Sell

MT

302,420

1,308,246

-

-

29

4

33

Furnace Oil/LSHS/LDO

Buy

MT

7,932

175,006

-

-

23

-

23

CopperBuyMT

293,909414,864

-

-

26

9

35

CopperSell

MT

301,029405,185

-

-

17

22

39

Silver (Oz)

Buy

T/Oz

4,655

2,732,752

-

-

100

-

100

Silver (Oz)

Sell

T/Oz

5,414

3,403,274

-

-

100

-

100

Gold (KG)

Buy

KG

39,508

9,112

-

99

-

-

99

Gold (KG)

Sell

KG

40,805

8,538

-

100

-

-

100

22. Location of Plant and Mines
Aluminium & Power
Renukoot Plant*
P.O. Renukoot -231217
Dist Sonebhadra, Uttar Pradesh.
Tel : (05446) 252077-9
Fax: (05446) 252107/426

Renusagar Power Division
P. O. Renusagar, Dist. Sonebhadra,
Uttar Pradesh.
Tel:(05446)277161-3/ 278592-5
Fax: (05446) 277164/

Hirakud Smelter
Hirakud 768 016
Dist: Sambalpur, Orissa
Tel: (0663) 2481307/1452
Fax: (0663) 2481356

Hirakud Power
Post Box No.12, Hirakud 768 016
Dist: Sambalpur, Orissa
Tel: (0663) 2481307
Fax: (0663) 2481342/365
Fax: (0663) 2541642

Mahan Aluminum
Hindalco Industries Limited
NH-75 E, Singrauli, Sidhi Rd,
P.O Bargawan, Pin:486886
Dist : Singrauli MP
Tel : 0780-5281014

Aditya Aluminium
Hindalco Industries Limited
Lapanga, Dist Sambalpur-768212
OdishaPh: 0663-2114424
Fax: 0663-2590434

CopperBirla Copper Division
P.O. Dahej, Lakhigam
Dist. Bharuch – 392 130, Gujarat
Tel: (02641) 256004/06, 251009
Fax: (02641) 251002

Chemicals
Muri Alumina
Post Chotamuri-835 101
Dist: Ranchi, Jharkhand
Phone: (06522) 244253/334
Fax: (06522) 244342

Belagavi
Village Yamanapur
Belgaum 590 010, Karnataka
Tel: (0831) 2472716
Fax: (0831) 2472728

Sheet, Foil, Wheel, Packaging & Extrusions
Belur Sheet
39, Grand Trunk Road
Belurmath 711 202, Dist: Howrah
West Bengal
Tel: (033) 2654 7210/12
Fax: (033) 2654 9982/5740

Taloja Sheet
Plot 2, MIDC Industrial Area
Taloja A.V., Dist : Raigad
Navi Mumbai - 410 208, Maharashtra
Tel: (022) 2741 2261, 66292929
Fax: (022) 2741 2430/31

Mouda Unit
Village Dahali
Ramtek Road, Mouda
Nagpur – 441 1104
Tel: (07115) 660777/786

Hirakud FRP
Hindalco Industries Limited
Hirakud-768016
Dist- Sambhalpur, Odisha
Tel: (0663) 6625000
Fax No(0663) 2481344

Alupuram Extrusions
Alupuram, P.B. No.30
Kalamassery - 683 104
Dist: Ernakulam, Kerala
Tel: (0484) 2532441-48
Fax: (0484) 2532468

Mines
Durgmanwadi MinesAt Post Radhanagri, Dist: Kolhapur,
Maharashtra - 416 212
Tel: (02321) 2371008
Fax: (02321) 237478

Lohardaga Mines
Dist: Lohardaga 835 302
Jharkhand
Tel/ Fax: (06526) 224112

Samari Mines
P.O: Kusumi 497222
Dist : Sarguja, Chattisgarh
Tel/Fax(07778)274325

The Company has strategic view based exposure for Copper, Gold and Silver. However, the same is not included above as it is a small portionof the overall Copper, Gold & Silver volumes.

Gare Palma Mines (IV/4 & V/5)
Underground Coal Mines
Village & Post Milupura
Tehsil Tamnar
Dist: Raigarh
Chhattisgarh:496107

Kathautia Coal Mine
Kathautia Open Cast Coal Mine
(Koccm), Village Kathautia
P.O Naudiha, PS Pandwa,
Dist:Palamau
Jharkhand:822123

Dumri Coal Mine
103, Commerce Tower
Near Mahavir Tower,
Main Road, Ranchi-834001
Tel: (0651) 2330944/48
Fax: (0651)2330782

The Company procures part of its Alumina requirement from its 100% subsidiary, Utkal Alumina International Limited. The same is not includedin the above table.

*Renukoot works has also manufacturing facilities of Chemicals, Sheets and Extrusions.

		Note:		

1

Table above includes Exposure and % Hedges for FY 2021-22 only. Details of hedges done for future years has not been captured here.

		2

The table above includes commodities where a liquid derivative market exists.

		3

The Company has price risk on commodities where an active derivative market does not exist, like Caustic Soda, Aluminum Fluoride, CP Coke,
Alumina, Bauxite etc.These Commodities are not included in the table above.

		

4

The Company maintains offset hedge book to eliminate the “pricing” timing mismatch for buy and sell position of Copper, Silver and Gold.
Accordingly, exposure of Copper, Buy position and Sell position naturally hedged is 50 % and 59 %, respectively. Accordingly, exposure of Gold,buy position naturally hedged is 1% . In case of Copper Buy exposure, 15% is not hedged represents unpriced transactions as at March 31, 2022
as the same will be hedged as and when they are priced, as per Company’s policy. In case of copper sell exposure, 2% is unpriced transactionsas at March 31, 2022 as the same will be hedged as and when they are priced, as per Company’s policy.

		

5

		

6

266

The Company faces commodity price risk on purchase of its raw material as well as on sales of its products. The
Company categorizes its price risk in broadly 2 categories - Offset Hedge Exposure and Strategic View Based
Exposure. Under the Offset Hedge Program, we use derivative products to eliminate the price risk arising due
to timing mismatch whereas for Strategic View Based exposure, derivative instruments are used to manage theprice risk for future tenor. Hedging is done for commodities where an active derivative market exists.

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

267

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Shareholder Information
23. Investor Correspondence

26. List of Credit Ratings
CARE ratings have provided the following ratings for the financial year 2021-2022

The Company Secretary
Hindalco Industries Limited
Ahura Centre, 1st Floor, B Wing
Mahakali Caves Road, Andheri (E)Mumbai: 400093
Tel: (91-22) 66917000
Fax: (91-22) 66917001
Email: hilinvestors@adityabirla.com
24. Categories of Shareholding (as on 31st March)
Category of Shareholders

2022

2021

Care AA+/Stable

Reaffirmed

Long Term Bank facilities- Fund based WC Limits

Care AA+; Stable

Reaffirmed

Long Term / Short Term Bank Facilities- Non Fund
based Working Capital Limit

CARE AA+; Stable / CARE A1+

Reaffirmed

Non Convertible Debenture

CARE AA+; Stable

Reaffirmed

Commercial Paper

CARE A1+

Reaffirmed

0.00

7784,64,497

34.64

17

0.00

77,83,39,497

Mutual Funds & UTI

244

0.05

23,67,73,052

10.53

213

0.06

25,55,08,739

11.37

Banks/ Financial Institutions/
Ins/Govt

84

0.02

19,53,54,818

8.69

87

0.02

21,21,64,263

9.44

FIIs

969

0.19

64,82,92,331

28.85

711

0.20

56,17,59,112

25.01

2,644

0.53

11,71,86,478

5.21

1,776

0.51

12,34,13,264

5.49

Individuals/Shares In Transit/
Trust

4,88,882

97.05

14,08,19,886

6.27

3,38,181

97.05

13,39,25,040

5.97

NRIs/ OCBs/Foreign Nationals

10,887

2.16

3,94,87,988

1.76

7,484

2.16

3,92,80,733

1.75

GDRs

1

0.00

8,37,28,677

3.73

1

0.00

13,64,68,634

6.07

Shares held by Employee trust

1

0.00

70,64,997

0.31

1

0.00

58,24,965

0.26

Date of Declaration

Financial year of Dividend

Due date of transfer to the Government

5,03,729

100

2,24,71,72,724

100

3,48,471

100 2,24,66,84,247

100

September 16, 20152014-2015

October 23, 2022

55,73,225.49

September 14, 20162015-2016

October 21, 2023

55,36,865.00

September 13, 20172016-2017

October 20, 2024

63,92,367.50

September 21, 20182017-2018

October 27, 2025

68,17,914.00

August 30, 20192018-2019

October 7, 2026

64,83,313.80

September 10, 20202019-2020

October 21, 2027

50,85,182.00

August 23, 2021

2020-2021

October 1, 2028

1,29,03,167.00

34.64*Includes 1,45,42,309 GDRs held by Promoter Group Companies.

25. Per share data
Particulars

2021-2022

2020-2021

2019-20202018-20192017-2018

Net Earnings (` in Crore)

5,507

993

620

1,205

1,436

Cash Earnings # (` in Crore)

7,354

2,841

2,328

2,899

3,053

Basic EPS (`)

24.76

4.46

2.79

5.41

6.45

Cash EPS (`) **

33.07

12.77

10.47

13.01

13.70

Dividend per share (`)

4.00@

3.00

1.00

1.20

1.20

Dividend pay out (%)##

16.32@

67.88

36.23

26.92

22.58

Book Value per share (`)

242.21222.84202.54216.24220.28

Price to earning (x)*

23.00

73.28

34.33

37.99

33.28

Price to cash earning (x) *

17.22

25.59

9.14

15.80

15.66

Price to Book Value (x) *

2.35

1.47

0.47

0.95

0.97

# Net Earnings plus Depreciation and Amortisation and Impairment Loss on Non-current Assets.
@ proposed dividend* Stock price as on 31st March** Cash EPS – Cash Earnings divided by weighted average numbers of equity shares used in computing basic EPS## For calculation of dividend payout ratio of FY 2018-19, 2017-18 dividend includes Dividend Distribution Tax.

268

Long Term Bank facilities-Term Loan

17

Total

Number of % share
Shares held holding

Rating Action

% of
share
holders

Corporates

% of
share
holders

RatingNumberof Shareholders
Promoter and Promoter Group*

Number of % share Number
Shares held holding of ShareHolders

Instrument

HINDALCO INDUSTRIES LIMITED

Crisil reaffirmed the Rating as CRISIL AA and revised its outlook from ‘Stable’ to ‘Positive’ on the non-convertible debentures
on May 03, 2021.On July 29, 2021, Crisil upgraded rating on the non-convertible debentures to ‘CRISIL AA+/Stable’ from
‘CRISIL AA/Positive’. Further, Crisil reaffirmed the rating as CRISIL A1+ for commercial paper.
27. Other useful information for shareholders
Shareholders who have not yet encashed their dividend warrants for the years 2014-2015 to 2020-2021 may approach theCompany with a request letter quoting their Ledger Folio numbers / DP & Client ID along with dividend warrant(s) (if any)
and a cancelled cheque leaf for revalidation/claim.
The details of Dividend paid by the Company and the respective due dates of transfer of unclaimed/un-encashed dividend
to the designated fund of the Central Government is enumerated below:

Pursuant to the provisions of Investor Education andProtection Fund Authority (Accounting, Audit, Transfer
and Refund) Rules 2016 read with Investor Education
and Protection Fund Authority (Accounting, Audit,
Transfer and Refund) Amendment 2017, the Company is
mandated to transfer all such shares to Investor Education
and Protection Fund (IEPF) in respect of which dividend
has not been claimed for seven consecutive years
or more.

Amount in `to unclaimed dividend for the financial year havebeen credited to Investor Education and Protection Fund(IEPF). Shareholder can claim the unclaimed dividend
amount.
Shareholder can claim the unclaimed dividend amounts
and shares credited to IEPF with a separate application
made to the IEPF Authority, in Form IEPF-5, as prescribedunder the Rules and are available at IEPF website i.e
www.iepf.gov.in.

The unclaimed dividend amount for the financial
year 2013-2014 and 387767 Equity Shares related

Integrated Annual Report 2021-22

269

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Shareholder Information
Share Transfer System

Nomination

In terms of the provisions of Regulation 40(9) of theAs per the provisions of Section 72 of the Act, facility for making
nomination(s) is available to Individuals holding shares in the
Company. Shareholders holding shares in physical form may
obtain a nomination form (Form SH-13), from the Company’s
Registered Office or download the same from the Company’s
website Company’s website www.hindalco.com/investor-centre. Shareholders holding shares in demat mode should
file their nomination with their DPs for availing this facility.

Listing Regulations, the Company has obtained, on yearlybasis, a certificate, from a Company Secretary in Practice,certifying that all certificates have been issued within thirtydays of the date of lodgement of the transfer (for cases
lodged prior to 1st April, 2019), sub-division, consolidation
and renewal and also filed a copy of the said certificate
with the Stock Exchanges.
Request for rematerialisation are attended within the statutory

Permanent Account Number

period. The average time taken for processing and registration

pending with the Company and there were no major legal

Shareholders who hold shares in physical form are advised that
SEBI has vide Circular no. SEBI/HO/ MIRSD/MIRSD_RTAMB/P/
CIR/2021/655 dated 3rd November, 2021 made it mandatory for
all holders and claimants of physical securities to furnish PAN.

proceedings relating to transfer of shares.

Intimate / update contact details

Shareholders may please note that SEBI vide its Circular

Shareholders are requested to update / intimate changes, ifany, pertaining to their PAN, postal address, e-mail address,
telephone / mobile numbers, with necessary documentary
evidence, to the Registered Office of the Company, in Form
ISR-1, if shares are held in physical mode or to their Depository
Participant (“DP”), if the holding is in electronic mode. The
said form ISR-1 for change / update of details, form ISR-2 forbankers attestation of signature in case of major mismatchand form ISR-3 for declaration for opting out of nomination
are available for download from the weblink https://www.
hindalco.com/investor-centre.

of relodged share transfer requests is less than 15 days. As
on 31st March, 2022, there were no share transfer requests

No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/ CIR/2022/8 dated
25th January, 2022 has mandated the listed companies toissue securities in demat form only while processing service
requests viz. issue of duplicate securities certificate; claim from
Unclaimed Suspense Account; Renewal/ Exchange of securities
certificate; Endorsement; Sub-division/ Splitting of securities
certificate; Consolidation of securities certificates / folios;
Transmission and Transposition. Accordingly, shareholders arerequested to make service requests by submitting a duly filled
and signed Form ISR – 4 (Form for various service requests),
the format of which is available on the Company’s website
www.hindalco.com.
Shareholders holding equity shares of the Company in physicalform are requested to kindly get their equity shares converted
into demat/ electronic form to get inherent benefits ofdematerialisation and also considering that physical transfer
of equity shares/ issuance of equity shares in physical form
have been disallowed by SEBI.
Common and simplified norms for investor service
requestIn terms of the SEBI Circular No. SEBI/HO/ MIRSD/MIRSD_RTAMB/P/CIR/2021/655 dated 3rd November, 2021, theCompany had sent individual letters to all the shareholders
holding shares of the Company in physical form for furnishing
their PAN, KYC details and nomination. The shareholders arerequested to go through the communication available on the
Company’s website www.hindalco.com/investor-centre.
270

HINDALCO INDUSTRIES LIMITED

Freezing of Folios without PAN, KYC details and Nomination.
Folios wherein any one of the documents / details viz. PAN,
KYC details and nomination are not available on or after 1st
April, 2023, shall be frozen by the Company in terms of theaforementioned SEBI Circular. The frozen folios will be referredby the Company to the administering authority under the
Benami Transactions (Prohibitions) Act, 1988 and or Preventionof Money Laundering Act, 2002, if they continue to remainfrozen as on 31st December, 2025
In case of any query contact –Hindalco Industries limited
Ahura Centre, 1st floor, B Wing
Mahakali Caves Road
Andheri (East),
Mumbai- 400 093.
Tel: (91-22) 6691 7000
Fax: (91-22) 6691 7001
Email ID: hilinvestors@adityabirla.com

Green Initiative in Corporate Governance – Service ofDocuments in Electronic Form

Other Information(i)

As you are aware, Ministry of Corporate Affairs Government ofIndia (MCA) vide its Circular(s) Nos. 17 and 18 dated 21st April,2011 and 29th April, 2011 respectively has now allowed thecompanies to send Notices of General Meetings/other Notices,
Audited Financial Statements, Director’s Report, Auditor’sReport etc. henceforth to their shareholders electronically as
a part of its Green Initiative in Corporate Governance.
Keeping in view the aforesaid green initiative of MCA,
your Company shall send the Annual Report and otherdocuments to its shareholders in electronic form at the e-mailaddress provided by them and made available to us by the
Depository.
Further, in view of the outbreak of COVID-19 pandemic andowing to the difficulties involved in dispatching of physicalcopies of Annual Report, the Ministry of Corporate Affairs(“MCA”) has vide its circular no 20/2020 dated 5 May 2020 andfurther circular no. F NO. Policy- 17/57/2021-CL-MCA dated 05th
May, 2022 directed the Companies to send the Annual Report
only by e-mail to all the Members of the Company. Therefore,
the Annual Report for FY 2021-22 and notice of AGM is being
sent to the Members at their registered e-mail addresses inaccordance with MCA and SEBI Circulars
Unclaimed Shares in Physical Form
Regulation 39(4) of the Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements) Regulations,2015 provides the manner of dealing with shares issued in physicalform pursuant to public issue or any other issue which remains
unclaimed with the Company. In compliance with the provisionsof Listing Regulations, the Company has sent three reminders
to the shareholders whose share certificates are lying
unclaimed.
Disclosures pursuant to Regulation 39(4) of Listing Regulation
are as below:
â

Aggregate number of shareholders and outstanding
shares lying in Unclaimed Suspense Account as at
31st March, 2022
Nil shareholders holding Nil Equity Shares.
Nil Equity Shares in physical form for transmission/deletion.
Nil Equity Shares in physical form includes above
mentioned Nil Equity Shares.

Equity Shares of the Company are under compulsory
demat trading by all investors, with effect from April 05,
1999. Considering the advantages of scrip less trading,shareholders are requested to consider dematerializationof their shareholding so as to avoid inconvenience infuture.
BSE has vide circular dated July 05, 2018 informed about
amendment to Regulation 40 of Listing Regulations
mandating the transfer of securities would be carriedout in dematerialised form only. This restriction shallnot be applicable to the request received for Deletion,
Transmission or Transposition of physical shares.

(ii)

Shareholders/Beneficial Owners are requested toquote their Folio No./DP & Client ID Nos., as the casemay be, in all correspondence with the Company. All
correspondences regarding shares & debentures of
the Company should be addressed to the Investor
Service Department of the Company at Ahura Centre,
1st Floor, ‘B’ Wing, Mahakali Caves Road, Andheri(East), Mumbai - 400 093 and not to any other office(s)of the Company.

(iii) Shareholders holding shares in physical form arerequested to notify to the Company, change in theiraddress/Pin Code number and Bank Account details
promptly by written request under the signatures of sole
/ first joint holder. Beneficial Owners of shares in demat
form are requested to send their instructions regarding
change of name, change of address, bank details,
nomination, power of attorney, etc. directly to their DP.
(iv) To prevent fraudulent encashment of dividend warrants,
members are requested to provide their Bank Account
Details (if not provided earlier) to the Company (if sharesare held in physical form) or to DP (if shares are held indemat form), as the case may be, for printing of the sameon their dividend warrants.
(v)

Non-resident members are requested to immediately
notify:ochange in their residential status on return to India
for permanent settlement;oparticulars of their NRE Bank Account with a bank in
India, if not furnished earlier.

(vi) In case of loss/misplacement of share certificate, investors
should immediately lodge a FIR/Complaint with the police

Integrated Annual Report 2021-22

271

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Shareholder Informationand inform to Company along with original or certified
copy of FIR/acknowledged copy of the complaint.
(vii) Shareholders are requested to keep record of their
specimen signature before lodgment of shares with theCompany to obviate possibility of difference in signature
at a later date.
(viii) Shareholders(s) of the Company who have multiple
accounts in identical name(s) or holding more than one
Share Certificates in the same name under different

Ledger Folio(s) are requested to apply for consolidationof such Folio(s) and send the relevant Share Certificatesto the Company.
(ix) Shareholders are requested to give us their valuablesuggestions for improvement of our investor services.
(x)

Shareholders are requested to quote their E-mail Ids,
Telephone/Fax numbers for prompt reply to theircommunication.

Financial Statements
274

Independent Auditor’s Reporton the Consolidated Financial Statements

286

Consolidated Balance Sheet

288

Consolidated Statement of Profit and Loss

290

Consolidated Statement of Changes in Equity

292

Consolidated Statement of Cash Flows

294

Notes forming partof the Consolidated Financial Statements

443

Independent Auditor’s Report on theStandalone Financial Statements

458

Standalone Balance Sheet

460

Standalone Statement of Profit and Loss

462

Standalone Statement of Changes in Equity

464

Standalone Statement of Cash Flows

466

Notes forming part of the Standalone
Financial Statements

582

Independent Assurance Statement
on Integrated Report

272

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

273

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Independent Auditor’s Reporton the Consolidated Financial Statements

Key Audit MatterTo the Members of Hindalco Industries Limited

The Holding Company uses internal and external experts, as • Obtaining and inspecting inventory measurement andapplicable to perform volumetric surveys and assessments,
physical count results for such inventories, including
basis which the quantities of these inventories are estimated.
assessing and evaluating the results of analysis performedby management in respect of differences between bookand physical quantities.
Based on the above procedures performed, we did not
identify any material exceptions in the measurement of
inventory quantities of coal, bauxite, copper concentrate andwork in progress inventories consisting of precious metals.

Report on the Audit of the Consolidated Financial Statements
comprehensive income (comprising of profit and othercomprehensive loss), consolidated changes in equity andits consolidated cash flows for the year then ended.

Opinion1.

2.

We have audited the accompanying consolidated
financial statements of Hindalco Industries Limited(hereinafter referred to as the “Holding Company”)
which includes the financial statements/financial
information in respect of joint operations consolidated
on a proportionate basis, trusts and subsidiaries (Holding
Company, joint operations, trusts and subsidiaries
together referred to as “the Group”), its joint ventures
and associate companies (refer Note 48 to the attachedconsolidated financial statements), which comprise theConsolidated Balance Sheet as at March 31, 2022, andthe Consolidated Statement of Profit and Loss (including
Other Comprehensive Loss), the Consolidated Statementof Changes in Equity and the Consolidated Statementof Cash Flows for the year then ended, and notes to theconsolidated financial statements, including a summaryof significant accounting policies and other explanatory
information (hereinafter referred to as “the consolidated
financial statements”).
In our opinion and to the best of our information andaccording to the explanations given to us and basedon the consideration of reports of other auditors on
separate audited financial statements /consolidated
audited financial information of the joint operations,subsidiaries, joint venture and associate companies, andbased on the consideration of the separate unaudited
financial information of the trusts, subsidiaries and joint
venture, the aforesaid consolidated financial statements
give the information required by the Companies Act, 2013(“the Act”) in the manner so required and give a true andfair view in conformity with the accounting principles
generally accepted in India, of the consolidated stateof affairs of the Group, its joint ventures and associatecompanies as at March 31, 2022, of the consolidated total

Key Audit MatterA.

Measurement of inventory quantities of coal, bauxite,
copper concentrate and work in progress consisting of
precious metals
Refer Notes 1D (l) and 11 (d) to the consolidated financial
statements.
Of the Holding Company’s ` 20,948 crores of inventory as
at March 31, 2022, ` 4,302 crores of inventory comprisedof coal, bauxite, copper concentrate and work in progressconsisting of precious metals.
This was determined a key audit matter, as the measurementof these inventory quantities lying at the Holding
Company’s yards, smelters and refineries is complex andinvolves significant judgement and estimate resulting frommeasuring the surface area, dip measurement of materials
in tanks/silos and other parameters.

274

HINDALCO INDUSTRIES LIMITED

Basis for Opinion
3.

We conducted our audit in accordance with the Standards
on Auditing (SAs) specified under Section 143(10) of theAct. Our responsibilities under those Standards are further
described in the ‘Auditor’s Responsibilities for the Auditof the Consolidated Financial Statements’ section of
our report. We are independent of the Group, its joint
ventures, and associate companies in accordance withthe ethical requirements that are relevant to our audit of
the consolidated financial statements in India in termsof the Code of Ethics issued by the Institute of Chartered
Accountants of India and the relevant provisions of theAct, and we have fulfilled our other ethical responsibilities
in accordance with these requirements. We believe thatthe audit evidence we have obtained, and the audit
evidence obtained by the other auditors in terms of
their reports referred to in sub-paragraph 16 of the Other
Matters paragraph below, other than the unaudited
financial information as certified by the management
and referred to in sub-paragraph 17 of the Other Matterssection below, is sufficient and appropriate to provide abasis for our opinion.

Key Audit Matters
4.

Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of theconsolidated financial statements of the current period.
These matters were addressed in the context of our auditof the consolidated financial statements as a whole, andin forming our opinion thereon, and we do not provide aseparate opinion on these matters.

How our audit addressed the Key Audit Matter

Our audit procedures relating to the measurement of
inventory quantities of coal, bauxite, copper concentrate andwork in progress of precious metals included the following:• Understanding and evaluating the design and testing theoperating effectiveness of controls over the physical countprocess and measurement of such inventory;• Evaluation of the independence competency andcapabilities of the management’s experts;• Physically observing inventory measurement and countprocedures carried out by management using experts,
to assess its appropriateness and completeness andperforming roll forward procedures; andHow our audit addressed the Key Audit Matter

B.

Provisions recognised and contingencies disclosedwith regard to certain legal and tax matters including
uncertain tax positions.
Refer Notes 1D (k), 9C, 10, 22 and 43 to the consolidated Our audit procedures relating to provisions recognised andfinancial statements.
contingencies disclosed with regard to certain legal and tax
The Holding Company operate in a Complex tax jurisdiction matters included the following:with certain tax exemption/deduction that may be subject • Understanding and evaluating the design and testing theto challenge and audit by the tax authorities. There are open
operating effectiveness of controls over the recognition,
tax matters under litigation with tax authorities.
measurement, presentation and disclosures made in the
As at March 31, 2022, the Holding Company has, recognised
consolidated financial statements in respect of theseprovisions and disclosed contingent liabilities towards
matters;
various legal and tax matters. There are number of legal, • Obtaining details of legal and tax matters, inspecting
direct and indirect tax cases against the Holding Company,
the supporting documents to evaluate management’s
including environmental, mining, local and state levies,
assessment of probability of outcome and the magnitude
income tax holidays, availing of input tax credits and suchof potential loss, and testing related to provisions andother matters.
disclosures in the consolidated financial statements
This is a key audit matter, as evaluation of these mattersthrough inquiries with the management and legal counsel;
requires management judgement and estimation, related • Assessing on test basis on the underlying calculation
legal advice including those leading to interpretation of
supporting the contingent liability and other litigations
laws and regulations and application of relevant judicial
disclosures in the consolidated financial statements;
precedents to determine the probability of the outflow of
economic resources for recognising provisions, disclosing • Reviewing orders and other communication from tax
and regulatory authorities and management responses
contingent liabilities and making related disclosures in thethereto;consolidated financial statements.
• Assessing the management expert’s legal advice andopinion as applicable, obtained by the Holding Company’s
management to corroborate management assessmentand evaluating competence and capabilities of the experts;
and• Using auditor’s specialist for technical assessment
assistance in evaluating certain significant and judgemental
complex direct and indirect tax litigation and positions intax returns and their possible outcome.
Based on the above procedures performed, we did not
identify any material exceptions in the provisions recognisedand contingent liabilities disclosed in the consolidated
financial statements with regard to such legal and tax matters.

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Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Independent Auditor’s Reporton the Consolidated Financial Statements
Key Audit MatterC.

How our audit addressed the Key Audit Matter

Accounting of derivatives and hedging transactions
Refer Notes 1B(R) and 46 to the consolidated financial Our audit procedures related to accounting of derivatives
and hedging transactions included the following:statements.
Holding Company’s financial performance is significantly • Understanding and evaluating the design and testing theoperating effectiveness of controls over accounting of
impacted by fluctuations in prices of aluminium, copper,
derivatives and hedging transactions;
gold, silver, furnace oil and foreign exchange rates. The
Holding Company takes a structured approach to the • Testing qualifying criteria for hedge accounting in
identification, quantification and hedging of such risks byaccordance with Ind AS 109, including:using various derivatives (e.g. forwards, futures, options
3 Understanding the risk management objectives andand embedded derivatives) in commodities and/or foreign
strategies for different types of hedging programs;
currencies. These hedges are designated as either cash
3 Evaluating that the hedging relationship consists only
flow or fair value hedges, and in certain cases remainsof eligible hedging instruments and hedged items;
non-designated.
3 Using auditor’s expert for assistance in verifying hedge
As at March 31, 2022, the carrying value of the Holding
effectiveness requirements of Ind AS 109, Financial
Company’s derivatives included derivative assets amounting
Instruments, including the economic relationshipto ` 681 crores and derivative liabilities amounting to ` 3,763
between the hedged item and the hedging instrument.
crores.
• Testing appropriateness of hedge accounting to qualified
Derivative and hedge accounting is considered a key audit
hedge relationships i.e. cash flow and fair value hedges;
matter, because of its significance to the consolidated
andfinancial statements, the volume, nature and types of• Testing related presentation and disclosures in thehedging relationships, including complexity involved in the
consolidated financial statements.
application of hedge accounting principles in accordance
Basedon the above procedures performed, we did notwith Ind AS 109, Financial Instruments.
identify any material exceptions in the amounts, presentationand disclosures made in the consolidated financial
statements relating to accounting of derivatives and hedging
transactions.

5.

The following Key Audit Matter was included in the Memorandum of Work Performed issued by other auditor whose audit
report dated May 24, 2022, contained an unmodified audit opinion on the consolidated financial information of Novelis
Inc. (“Novelis”), a subsidiary of the Holding Company, which is reproduced by us as under:

Key Audit Matter

How the other auditor addressed the Key Audit Matter

Goodwill impairment assessment
The Company’s consolidated goodwill balance was` 23,915 crores as of March 31, 2022. Management
conducts an impairment test as of the last day of March ofeach year, or more frequently if events or circumstancesindicate that the carrying value of goodwill may be
impaired. As disclosed by management, potential
impairment is identified by comparing the recoverable
value of each cash generating unit to its carrying value.
The Company estimates the recoverable value basedon fair value less costs to sell approach. If the carrying
value exceeds the recoverable value, management
records an impairment charge in an amount equal tothat excess. The determination of recoverable value
using the market and income approaches requires theuse of management’s significant assumptions related
to selection of market multiples and control premiumfor the market approach and sales volumes, conversion
premium, capital spending, working capital changes andthe discount rate for the income approach.

276

HINDALCO INDUSTRIES LIMITED

Addressing the matter involved performing procedures andevaluating audit evidence in connection with forming our overall
opinion on the consolidated financial information. Our procedures
included, among others:(i)

Understanding and evaluating the design and testing theeffectiveness of controls relating to management’s goodwill
impairment assessment, including controls over the valuationof the Company’s cash generating units;(ii) Testing management’s process for developing the fair value
estimate of the cash generating units;(iii) Evaluating the appropriateness of the income and market
approaches and the weighting of the approaches;(iv) Testing the completeness and accuracy of underlying data usedin the approaches;(v) Evaluating the reasonableness of the significant assumptions
used by management in the income and market approaches;

Key Audit Matter

How the other auditor addressed the Key Audit Matter

The principal considerations for our determination (vi) Evaluating management’s assumptions related to sales volumes
that performing procedures relating to the goodwill
and prices, costs to produce, and capital spending involved
impairment assessment is a Key Audit Matter are (i) theevaluating whether the assumptions used by management weresignificant judgment by management when developing
reasonable considering (i) the current and past performancethe fair value measurement of the cash generatingof the cash generating units; (ii) the consistency with external
units; (ii) a high degree of auditor judgment, subjectivity,
market and industry data; and (iii) whether these assumptions
and effort in performing procedures and evaluatingwere consistent with evidence obtained in other areas of the
management’s significant assumptions related toaudit; andmarket multiples and control premium for the market (vii) Professionals with specialized skill and knowledge were usedapproach and sales volumes, conversion premium,to assist in evaluating the appropriateness of the income andcapital spending and the discount rate for the income
market approaches, the weighting of the approaches, andapproach; and (iii) the audit effort involved the use ofevaluating the reasonableness of the discount rate, control
professionals with specialized skill and knowledge.
premium and market multiples assumptions.
Refer Notes 14 and 42 in the consolidated financial As a result of our procedures performed, no misstatements were
information of Novelis.*
noted.
* These notes are included in Note 1(D) (b) and 4 of the consolidated financial statements
6.

The following Key Audit Matter was included in the Memorandum of Work Performed issued by an independent firm ofChartered Accountants along with their audit report dated May 17, 2022, which contained an unmodified audit opinion on
the financial statements of Utkal Alumina International Limited (“Utkal”), a subsidiary of the Holding Company, which has
been reproduced by us as under:

Key Audit Matter

How the other auditor addressed the Key Audit Matter

Valuation of deferred tax assets, including recognised
Minimum Alternate Tax (MAT) credit
The Company has significant amount of deferred tax Our audit procedures included:
assets, mainly resulting from carry forward unabsorbed • Evaluating the management’ determination of the estimateddepreciation and MAT credit as per Income Tax Act.
manner in which the deferred tax asset would be utilised by
The valuation of deferred tax assets including MAT iscomparing the management’s assessment to business planssignificant to our audit because the risk exists that futureand long term profit forecasts and the key assumptions used intaxable profits will not be sufficient to fully recover thethe projections based on our knowledge of the business and thedeferred tax assets including MAT credit. Management
industry in which the Company operates;
supports the recoverability of the deferred tax assets•
Criticallyassessing whether profit forecasts are reasonable inmainly with income projections which contain estimates
relationtohistorical trends, current year performance and futureof and tax strategies for future taxable income.
plans;
Refer Notes 9 & 36* of Utkal’s financial statements.
• We also reperformed the calculation of deferred taxes, checking
that the tax rate applied is proper. We compared the tax plans
with the Company’s budget on a sample basis in terms of therecoverability of deferred tax assets from temporary differences
and from carried forwards of unabsorbed depreciation and MAT
credit;• Using our own tax team to assist us in assessing the appropriatenessof the level of deferred taxes recognised in the balance sheet; and• We assessed the adequacy of the income tax disclosures to thefinancial statements, setting out the basis of the deferred tax
balance and the level of estimation involved.
Our audit procedures did not lead to any reservations regarding
the recognition, measurement and disclosure of deferred taxes.
* These notes are included in Note 9 of the consolidated financial statements.

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277

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Independent Auditor’s Reporton the Consolidated Financial Statementsof the consolidated financial statements by the Directorsof the Holding Company, as aforesaid.

Other Information
7.

The Holding Company’s Board of Directors is responsible
for the other information. The other information comprises
the information included in the annual report but does
not include the consolidated financial statements and ourand other auditor’s report thereon. The annual report is
expected to be made available to us after the date of thisauditor’s report.

9.

Our opinion on the consolidated financial statements does
not cover the other information and we will not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial
statements, our responsibility is to read the otherinformation identified above when it becomes available
and, in doing so, consider whether the other information
is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit, orotherwise appears to be materially misstated.
When we read the annual report, if we conclude that
there is a material misstatement therein, we are required
to communicate the matter to those charged withgovernance and take appropriate action as applicable
under the relevant laws and regulations

10.

278

The Holding Company’s Board of Directors is responsible
for the preparation and presentation of these consolidated
financial statements in term of the requirements of the
Act that give a true and fair view of the consolidated
financial position, consolidated financial performanceand consolidated cash flows, and changes in equity of theGroup including, joint ventures and associate companies
in accordance with the accounting principles generally
accepted in India, including the Accounting Standards
specified under Section 133 of the Act. The respective
Board of Directors of the companies included in theGroup and of its joint ventures and associate companies
are responsible for maintenance of adequate accounting
records in accordance with the provisions of the Act forsafeguarding the assets of the Group and of its joint
ventures and associate companies and for preventing
and detecting frauds and other irregularities; selection
and application of appropriate accounting policies;
making judgments and estimates that are reasonable
and prudent; and the design, implementation andmaintenance of adequate internal financial controls,that were operating effectively for ensuring accuracy
and completeness of the accounting records, relevantto the preparation and presentation of the consolidated
financial statements that give a true and fair view and arefree from material misstatement, whether due to fraud or
error, which have been used for the purpose of preparation

HINDALCO INDUSTRIES LIMITEDIn preparing the consolidated financial statements, therespective Board of Directors of the companies includedin the Group and of its joint ventures and associatecompanies are responsible for assessing the ability of theGroup and of its joint ventures and associate companies
to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis of accounting unless the respective Boardof Directors either intends to liquidate the Group andits joint ventures and associate companies or to cease
operations, or has no realistic alternative but to do so.

•

Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting
estimates and related disclosures made by the Boardof Directors.

•

Conclude on the appropriateness of the Boardof Directors use of the going concern basis ofaccounting and, based on the audit evidence
obtained, whether a material uncertainty exists
related to events or conditions that may castsignificant doubt on the ability of the Group and its
joint ventures and associate companies to continue
as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in
the consolidated financial statements or, if suchdisclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report.
However, future events or conditions may cause theGroup and its joint ventures and associate companies
to cease to continue as a going concern.

The respective Board of Directors of the companies
included in the Group and of its joint ventures andassociate companies are responsible for overseeing thefinancial reporting process of the Group and of its joint
ventures and associate companies.

Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements
11.

Responsibilities of Management and Those Charged with
Governance for the consolidated financial statements
8.

Company has adequate internal financial controls
with reference to consolidated financial statements
in place and the operating effectiveness of suchcontrols.

12.

Our objectives are to obtain reasonable assurance about
whether the consolidated financial statements as awhole are free from material misstatement, whether due
to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit
conducted in accordance with SAs will always detect amaterial misstatement when it exists. Misstatements canarise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably
be expected to influence the economic decisions ofusers taken on the basis of these consolidated financial
statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
scepticism throughout the audit. We also:•

Identify and assess the risks of material misstatementof the consolidated financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting fromfraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override ofinternal control.

•

Obtain an understanding of internal control relevantto the audit in order to design audit proceduresthat are appropriate in the circumstances. Under
Section 143(3)(i) of the Act, we are also responsible
for expressing our opinion on whether the Holding

13.

•

Evaluate the overall presentation, structure andcontent of the consolidated financial statements,
including the disclosures, and whether the
consolidated financial statements represent theunderlying transactions and events in a manner that
achieves fair presentation.

•

Obtain sufficient appropriate audit evidence
regarding the financial information of the entities
or business activities within the Group and its joint
ventures and associate companies to express an
opinion on the consolidated financial statements.
We are responsible for the direction, supervision andperformance of the audit of the financial statementsof such entities included in the consolidated financial
statements of which we are the independent
auditors. For the other entities included in the
consolidated financial statements, which havebeen audited by other auditors, such other auditors
remain responsible for the direction, supervision andperformance of the audits carried out by them. We
remain solely responsible for our audit opinion.

We communicate with those charged with governance ofthe Holding Company and such other entities included in
the consolidated financial statements of which we are theindependent auditors regarding, among other matters,
the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies ininternal control that we identify during our audit.
14.

We also provide those charged with governance witha statement that we have complied with relevant
ethical requirements regarding independence, and tocommunicate with them all relationships and othermatters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.

15.

From the matters communicated with those charged withgovernance, we determine those matters that were ofmost significance in the audit of the consolidated financial
statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’sreport unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicatedin our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public
interest benefits of such communication.

Other Matters
16.

We did not audit the financial statements of ten
subsidiaries, consolidated financial information of one
subsidiary and financial statements of two joint operations
included in the consolidated financial statements of theHolding Company, which constitute total assets of` 141,194 crores and net assets of ` 40,434 crores as
at March 31, 2022, total revenue from operations of` 130,751 crores, total comprehensive income (comprisingof profit after tax and other comprehensive loss) of` 7,851 crores and net cash inflows amounting to ` 561
crores for the year ended on that date. The consolidated
financial statements also include the Group’s share of total
comprehensive income (comprising of profit after tax andother comprehensive income) of ` 6 crores for the year
ended March 31, 2022 as considered in the consolidated
financial statements, in respect of one joint venture andfour associate companies, whose financial statements
have not been audited by us. These financial statements/
consolidated financial information have been audited
by other auditors whose reports have been furnished to
us by the Management/other auditors and our opinion
on the consolidated financial statements insofar as it
relates to the amounts and disclosures included in respectof these subsidiaries, joint operations, joint venture
and associate companies and our report in terms of
sub-section (3) of Section 143 of the Act including reporton Other Information insofar as it relates to the aforesaid
subsidiaries, joint operations, joint venture and associatecompanies, is based solely on the reports of the otherauditors. Material uncertainty related to going concern
has been reported by two joint operations and one
subsidiary during the year which are not material to theGroup.

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279

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Independent Auditor’s Reporton the Consolidated Financial Statements
17.

We did not audit the financial information of threesubsidiaries and two trusts included in the consolidated
financial statements of the Holding Company, whichconstitute total assets of ` 250 crores and net assetsof ` 32 crores as at March 31, 2022, total revenue fromoperations of ` 287 crores, total comprehensive loss
(comprising of loss after tax and other comprehensive
income) of ` 13 crores and net cash inflows amounting
to ` 175 crores for the year ended on that date. The
consolidated financial statements also include the Group’s
share of total comprehensive income (comprising of
profit after tax and other comprehensive income) of` Nil for the year ended March 31, 2022 as consideredin the consolidated financial statements, in respect of
one joint venture, whose financial information havenot been audited by us. These financial information
are unaudited and have been furnished to us by theManagement, and our opinion on the consolidated
financial statements insofar as it relates to the amounts
and disclosures included in respect of these subsidiaries,
trusts and joint venture and our report in terms of subsection (3) of Section 143 of the Act including report on
Other Information insofar as it relates to the aforesaid
subsidiaries, trusts and joint venture is based solely onsuch unaudited financial information. In our opinion andaccording to the information and explanations given to
us by the Management, these financial information are
not material to the Group.
Our opinion on the consolidated financial statements, andour report on Other Legal and Regulatory Requirements
below, is not modified in respect of the above matterswith respect to our reliance on the work done and thereports of the other auditors and the financial statements/
financial information certified by the Management.

Report on Other Legal and Regulatory Requirements
18.

19.

As required by the Companies (Auditor’s Report) Order,
2020 (“CARO 2020”), issued by the Central Government ofIndia in terms of sub-section (11) of Section 143 of the Act,
we give in the “Annexure A”, a statement on the matter
specified in paragraph 3(xxi) of CARO 2020.
As required by Section 143(3) of the Act, we report, to theextent applicable, that:(a)

We have sought and obtained all the information andexplanations which to the best of our knowledge andbelief were necessary for the purposes of our auditof the aforesaid consolidated financial statements.

(b)

In our opinion, proper books of account as requiredby law relating to preparation of the aforesaid
consolidated financial statements have been kept
so far as it appears from our examination of thosebooks and the reports of the other auditors.

(c)

280

The Consolidated Balance Sheet, the Consolidated
Statement of Profit and Loss (including otherHINDALCO INDUSTRIES LIMITED

comprehensive loss), the Consolidated Statement of
Changes in Equity and the Consolidated Statementof Cash Flows dealt with by this Report are inagreement with the relevant books of account andrecords maintained for the purpose of preparationof the consolidated financial statements.
(d)

In our opinion, the aforesaid consolidated financial
statements comply with the Accounting Standards
specified under Section 133 of the Act.

(e)

On the basis of the written representations received
from the directors of the Holding Company
as on March 31, 2022 taken on record by the
Board of Directors of the Holding Company andthe reports of the statutory auditors of its joint
operations, its subsidiary companies, joint venture
and associate companies incorporated in India,
none of the directors of the Holding Company, its
joint operations, its subsidiary companies, its joint
venture and associate companies incorporated inIndia is disqualified as on March 31, 2022 from being
appointed as a director in terms of Section 164(2) ofthe Act.

(f)

(g)

		

		

		

Protection Fund by the Holding Company, its
joint operations, subsidiary companies, joint
venture and associate companies incorporated
in India during the year.
		

iv.

(a)

With respect to the adequacy of internal financial
controls with reference to consolidated financial
statements of the Holding Company, joint operations,subsidiaries, joint venture and associate companies
incorporated in India and the operating effectivenessof such controls, refer to our separate report in“Annexure B”.
With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of
the Companies (Audit and Auditor’s) Rules, 2014, in
our opinion and to the best of our information andaccording to the explanations given to us:
i.

ii.

iii.

The consolidated financial statements disclose
the impact of pending litigations on the
consolidated financial position of the Group, its
joint ventures and associate companies– Refer
Note 22, 9C and 43 to the consolidated financial
statements.
Provision has been made in the consolidated
financial statements, as required under theapplicable law or accounting standards, formaterial foreseeable losses, if any, on long-term
contracts including derivative contracts as at
March 31, 2022– Refer Note 22 and 46 to theconsolidated financial statements in respectof such items as it relates to the Group, its joint
ventures and associate companies.
Except as referred to in Note 21B to theconsolidated financial statements, there has
been no delay in transferring amounts required
to be transferred to the Investor Education and

			

(b)

The respective Managements of the Holding
Company, joint operations, subsidiaries,
joint venture and associates companies
which are companies incorporated in India
whose financial statements have been
audited under the Act have represented
to us and the other auditors of such joint
operations, subsidiaries, joint venture andassociates companies respectively that,to the best of their knowledge and belief,other than as disclosed in the notes to theaccounts, no funds (which are material
either individually or in the aggregate)
have been advanced or loaned or invested(either from borrowed funds or sharepremium or any other sources or kind offunds) by the Holding Company or any ofsuch joint operations, subsidiaries, joint
venture and associates companies to orin any other persons or entities, including
foreign entities (“Intermediaries”), withthe understanding, whether recorded inwriting or otherwise, that the Intermediary
shall, directly or indirectly, lend or invest
in other persons or entities identified
in any manner whatsoever by or on
behalf of the Holding Company or anyof such joint operations, subsidiaries,
joint venture and associate companies(“Ultimate Beneficiaries”) or provide any
guarantee, security or the like on behalf of
the Ultimate Beneficiaries (Refer Note
53(C) to the consolidated financial
statements);
The respective Managements of the Holding
Company, joint operations, subsidiaries,
joint venture and associate companies
which are companies incorporated in India
whose financial statements have been
audited under the Act have represented
to us and the other auditors of such joint
operations, subsidiaries, joint venture andassociates companies respectively that,to the best of their knowledge and belief,other than as disclosed in the notes to theaccounts, no funds (which are material
either individually or in the aggregate) havebeen received by the Holding Company or
any of such joint operations, subsidiaries,
joint venture and associates companies
from any persons or entities, including

foreign entities (“Funding Parties”), withthe understanding, whether recorded inwriting or otherwise, that the Holding
Company or any of such joint operations,subsidiaries, joint venture and associatescompanies shall, directly or indirectly,
lend or invest in other persons or entities
identified in any manner whatsoever by oron behalf of the Funding Party (“Ultimate
Beneficiaries”) or provide any guarantee,
security or the like on behalf of the
Ultimate Beneficiaries (Refer Note 53(C)to the consolidated financial statements).
			

(c)

		

The dividend declared and paid during the yearby the Holding Company, and two associatecompanies is in compliance with Section 123
of the Act. The joint operations, subsidiarycompanies, three associate companies and joint
venture has not declared or paid any dividend
during the year.

v.

Based on the audit procedures, that has been
considered reasonable and appropriate in
the circumstances, performed by us andthose performed by the auditors of thejoint operations, subsidiaries, joint venture
and associate companies which arecompanies incorporated in India whose
financial statements have been audited
under the Act, nothing has come to our orother auditor’s notice that has caused usor the other auditors to believe that the
representations under sub-clause (i) and(ii) of Rule 11(e) of the Companies (Audit
and Auditors) Rules, 2014 contain any
material misstatement.

20. The Holding Company and its joint operations, subsidiarycompanies, joint venture and associate companies
incorporated as public companies in India have paid/
provided for managerial remuneration in accordancewith the requisite approvals mandated by the provisionsof Section 197 read with Schedule V to the Act.
For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/ E-300009
Sarah George
PartnerMembership Number: 045255
UDIN: 22045255AJPZYN4652
Mumbai
May 26, 2022

Integrated Annual Report 2021-22

281

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Annexure A to Independent Auditor’s Report

Referred to in paragraph 18 of the Independent Auditors’ Report of even date to the members of Hindalco Industries
Limited on the Consolidated Financial Statements as of and for the year ended March 31, 2022
As required by paragraph 3(xxi) of the CARO 2020, we report that the auditors of the following companies have given qualification
or adverse remarks in their CARO report on the standalone financial statements of the respective companies included in theConsolidated Financial Statements of the Holding Company:
S.
Name of the CIN
No. Company

1

2

Mahan Coal
Limited

Tubed
Coal Mines
LimitedRelationship
Date of thewith the Holding respective
Company
auditors’
report

U01010MP2006PLC018586 Joint Operation

U10100MH2007PLC174466 Joint Operation

May 17, 2022

May 23, 2022

Paragraph number and commentin the respective CARO report
reproduced below
xiv. The Company did not have aninternal audit system for the year under
Audit.
xvii. The Company has incurred cash
losses during the current financial year
as well as in the immediately preceding
financial year. The amount of cash loss
during the current year is ` 3,361.71 and `38,615.09 in the immediately preceding
financial year.
vii. (a). According to the informationand explanations given to us and on thebasis of our examination of the books ofaccounts, the Company does not haveany undisputed statutory dues related
to of Provident Fund, Employees’
State Insurance, Sales Tax, Customs
Duty, Excise Duty, VAT and GST as on
March 31, 2022. However, the Company
is regular in depositing Income tax withthe appropriate authorities and there
are no undisputed amounts payablefor the same were outstanding as at
March 31, 2022 for a period exceeding
six months from the date they became
payable. The Company is yet topay Professional Tax of ` 4,600 for
FY 18-19, ` 4,600/- for FY 19-20,` 4,600/- for FY 20-21 and ` 3,700/- for
FY 21-22.
xvii. According to the information andexplanations given to us and basedon our examination of the recordsof the Company, the Company has
incurred cash losses during the financial
year covered by our audit and theimmediately preceding financial year.

S.
Name of the CIN
No. Company

Relationship
Date of thewith the Holding respective
Company
auditors’
reportParagraph number and commentin the respective CARO report
reproduced below

3.

Renukeshwar U65910UP1994PLC017080
Investments& Finance
Limited

Subsidiary

May 11, 2022

xvi. (b) According to the information andexplanations given to us, the Company
has applied for registration under
section 45-IA of the Reserve Bank ofIndia Act, 1934 (2 of 1934) to carry on thebusiness of a NBFC, in the office of RBI,
Kanpur, but the registration number isstill awaited and has conducted NonBanking Financial activities as per theReserve Bank of India Act, 1934.

4.

East Coast
BauxiteMiningCompany

U13203OR2007PTC009597 Subsidiary

May 23, 2022

xvi. Cash Losses- In our opinion andon the basis of available Financial
Statements Subjected to audit, thecompany has incurred cash losses in
the current financial Year and in theimmediately preceding Financial Year.
The figures of Current Financial Yearand the Previous financial Year are` 47,305/- & ` 20,862/- respectively.

5.

MNH Shakti
Limited

U10100OR2008GOI010171

May 06, 2022

(xvii) The company has not commenced
any business/service during theyear. It has incurred cash loss during
the financial year covered by our
audit and also in the immediately
preceding financial year on account of
preoperative expenses incurred by thecompany.

6.

Aditya Birla
U40106MH2020PLC339323 Associate
Renewable
Solar Limited

April 27, 2022

(xvii) The Company has not incurred the
cash losses in the current year however
the Company has incurred cash lossesof ` 33.52 lakhs in the immediately
preceding financial year.

Joint Venture

For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/ E-300009
Sarah George
PartnerMembership Number: 045255
UDIN: 22045255AJPZYN4652
Mumbai
May 26, 2022

282

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

283

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Annexure B to Independent Auditor’s Report

Referred to in paragraph 19(f) of the Independent Auditor’s Report of even date to the members of
Hindalco Industries Limited on the consolidated financial statements for the year ended March 31, 2022
of internal financial controls, both applicable to an audit
of internal financial controls and both issued by the ICAI.
Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether
adequate internal financial controls with reference toconsolidated financial statements was established andmaintained and if such controls operated effectively inall material respects.

Report on the Internal Financial Controls with reference
to consolidated financial statements under clause (i) of
sub-section 3 of Section 143 of the Act
1.

In conjunction with our audit of the consolidated financial
statements of the Holding Company as of and for theyear ended March 31, 2022, we have audited the internalfinancial controls with reference to consolidated financial
statements of Hindalco Industries Limited [hereinafterreferred to as “the Holding Company (excluding two trusts
which are not companies incorporated in India)] and its
subsidiaries (excluding two subsidiaries which are notcompanies incorporated in India), its joint venture and its
associate companies, which are companies incorporated
in India, as of that date.

4.

Management’s Responsibility for Internal Financial
Controls
2.

The respective Board of Directors of the Holding Company,
its joint operations, its subsidiaries, its joint venture andits associate companies, to whom reporting under clause(i) of sub section 3 of Section 143 of the Act in respectof the adequacy of the internal financial controls withreference to financial statements is applicable, which
are companies incorporated in India, are responsible forestablishing and maintaining internal financial controls
based on, internal control over financial reporting criteria
established by the Holding Company considering theessential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting (“the Guidance Note”) issued
by the Institute of Chartered Accountants of India (“ICAI”).
These responsibilities include the design, implementationand maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderlyand efficient conduct of its business, including adherence
to the respective company’s policies, the safeguardingof its assets, the prevention and detection of frauds anderrors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial
information, as required under the Act.

Auditor’s Responsibility
3.

284

Our responsibility is to express an opinion on the Holding
Company’s internal financial controls with reference toconsolidated financial statements based on our audit.
We conducted our audit in accordance with the GuidanceNote issued by the ICAI and the Standards on Auditing
deemed to be prescribed under Section 143(10) of theCompanies Act, 2013, to the extent applicable to an audit

HINDALCO INDUSTRIES LIMITED5.

Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial
controls system with reference to consolidated financial
statements and their operating effectiveness. Our audit ofinternal financial controls with reference to consolidated
financial statements included obtaining an understandingof internal financial controls with reference to consolidated
financial statements, assessing the risk that a material
weakness exists, and testing and evaluating the designand operating effectiveness of internal control based on
the assessed risk. The procedures selected depend on theauditor’s judgement, including the assessment of the risks
of material misstatement of the consolidated financial
statements, whether due to fraud or error.
We believe that the audit evidence we have obtained, andthe audit evidence obtained by the other auditors in termsof their reports referred to in the Other Matters paragraphbelow is sufficient and appropriate to provide a basis
for our audit opinion on the Holding Company’s internalfinancial controls system with reference to consolidated
financial statements.

being made only in accordance with authorisations ofmanagement and directors of the company; and (3)provide reasonable assurance regarding prevention or
timely detection of unauthorised acquisition, use, or
disposition of the company’s assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls withreference to financial statements
7.

Because of the inherent limitations of internal financial
controls with reference to financial statements, including
the possibility of collusion or improper management
override of controls, material misstatements due to error
or fraud may occur and not be detected. Also, projectionsof any evaluation of the internal financial controls withreference to financial statements to future periods are
subject to the risk that the internal financial control
with reference to financial statements may become
inadequate because of changes in conditions, or that thedegree of compliance with the policies or procedures may
deteriorate.

Opinion8.

In our opinion, the Holding Company, its joint operations,
its subsidiary companies, its joint venture and its
associate companies, which are companies incorporated
in India, have, in all material respects, an adequate
internal financial controls system with reference tofinancial statements and such internal financial controls

with reference to financial statements were operating
effectively as at March 31, 2022, based on the internal
control over financial reporting criteria established by theHolding Company considering the essential components
of internal control stated in the Guidance Note issued by
the ICAI.
Other Matters9.

Our aforesaid reports under Section 143(3)(i) of the Act on
the adequacy and operating effectiveness of the internalfinancial controls with reference to financial statements
insofar as it relates to twelve subsidiary companies, twojoint operations, one joint venture and four associatecompanies, which are companies incorporated in India,
is based on the corresponding reports of the auditors ofsuch companies incorporated in India. Our opinion is not
modified in respect of this matter.

For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/ E-300009
Sarah George
PartnerMembership Number: 045255
UDIN: 22045255AJPZYN4652
Mumbai
May 26, 2022

Meaning of Internal Financial Controls with reference tofinancial statements
6.

A company’s internal financial control with reference tofinancial statements is a process designed to provide
reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements
for external purposes in accordance with generally
accepted accounting principles. A company’s internalfinancial control with reference to financial statements
includes those policies and procedures that (1) pertain
to the maintenance of records that, in reasonabledetail, accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements inaccordance with generally accepted accounting principles,
and that receipts and expenditures of the company are
Integrated Annual Report 2021-22285

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Consolidated Balance Sheetas at March 31, 2022(` in Crore)

Note
No.
ASSETS
Non-Current Assets
Property, Plant and Equipment (including Right of Use Assets)
Capital Work-in-Progress
Investment Property
Goodwill
Other Intangible Assets
Intangible Assets under Development
Equity Accounted Investments
Financial Assets
Investments
Trade Receivables
Loans
Derivatives
Other Financial Assets
Non-Current Tax Assets (Net)
Deferred Tax Assets (Net)
Other Non-Current Assets
Current Assets
Inventories
Financial Assets
Investments
Trade Receivables
Cash and Cash Equivalents
Bank Balances other than Cash and Cash Equivalents
Loans
Derivatives
Other Financial Assets
Current Tax Assets (Net)
Other Current Assets
Non-Current Assets or Disposal Group Classified as Held For Sale

EQUITY AND LIABILITIES
EquityEquity Share Capital
Other Equity
Non-Controlling Interest

As at
31/03/2022

76,4704,727
21
23,965
6,418
218
51

70,84910,01321
23,317
6,082
189
46

6A
12
7
46B
8A
9C
9B
10

8,616
50
305
786
8
1,207
1,677
124,519

7,670
53
12
256
1,147
4
924
1,525
122,10811

44,48330,668

6B
12
13
14
7
46B
8B
9C
10

5,452
21,076
11,639
5,753
7
3,366
2,131
186
4,362
98,45588
98,543223,062

9,417
12,959
8,339
470
47
1,495
1,211
207
2,673
67,486
152
67,638
189,746

As at

Note
No.

31/03/2021

2
2
3
4
5
5
48D, E

15A(` in Crore)

Liabilities
Non-Current Liabilities
Financial Liabilities
Borrowings
Lease Liabilities
Trade Payables(I) Outstanding Dues of Micro Enterprises and Small Enterprises(II) Outstanding Dues other than Micro Enterprises and Small Enterprises
Derivatives
Other Financial Liabilities
Provisions
Contract Liabilities
Deferred Tax Liabilities (Net)
Other Non-Current Liabilities
Current Liabilities
Financial Liabilities
Borrowings
Lease Liabilities
Supplier’s Credit
Trade Payables(I) Outstanding Dues of Micro Enterprises and Small Enterprises(II) Outstanding Dues other than Micro Enterprises and Small Enterprises
Derivatives
Other Financial Liabilities
Provisions
Current Tax Liabilities (Net)
Contract Liabilities
Other Current Liabilities
Liability Associated with Disposal Group Classified as Held For Sale

18A
2
20

46B
21A
22
24
9B
23

18B
2
19
20

46B
21B
22
9C
24
23
15B

31/03/2022

31/03/2021

51,635972

58,985
928

464
139
6,848
10
5,631
1,888
67,587

427
133
8,146
12
4,530
1,539
74,70011,600
279
2,456

6,993
300
255

105
41,277
10,657
3,607
2,841
2,120
365
1,873
77,18093
77,273
144,860
223,06258
28,177
3,601
2,531
2,610
2,126
347
1,386
48,384
119
48,503
123,203
189,746

1

Basis of Preparation and Significant Accounting Policies
The accompanying Notes are an integral part of the Consolidated Financial Statements
This is the Consolidated Balance Sheet referred in our report of even date

For and on behalf of the Board of Hindalco Industries Limited
16
17

222
77,96978,191
11
78,202

222
66,311
66,533
10
66,543

For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration No. 304026E/E-300009

Praveen Kumar Maheshwari
Whole-time Director andChief Financial Officer
DIN-00174361

Satish Pai
Managing Director
DIN-06646758

Sarah George
PartnerMembership No. 045255

Anil MalikCompany Secretary

K N Bhandari
Director
DIN-00026078

Place: Mumbai
Date: May 26, 2022

286

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22287

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Consolidated Statement of Profit and Lossfor the year ended March 31, 2022(` in Crore)

Note
No.

31/03/2022

31/03/2022

31/03/2021

(9)

(9)

(4,867)(1,769)

(75)

(168)

Foreign Currency Translation Reserve

525

959

Income Tax effect

1,432

563

Other Comprehensive Income/ (Loss) for the year

(1,148)

4,784

Total Comprehensive Income/ (Loss) for the year

12,582

8,267

Owners of the Company

13,7303,483

Non-Controlling Interests--

Owners of the Company(1,148)

4,784

Non-Controlling Interests--

Items that will be reclassified to Statement of Profit and Loss
Change in Fair Value of Debt Instruments Designated as FVTOCIINCOME
Other Income

Year ended

Note
No.

31/03/2021

CONTINUING OPERATIONS:
Revenue from Operations(` in Crore)

Year ended

25
26

Total Income

195,059

132,008

1,136

1,199

196,195

133,207

EXPENSES
Cost of Materials Consumed

27

125,335

77,484

Trade Purchases

28

1,958

1,098

Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade

29(9,753)(2,146)

Employee Benefits Expense30

11,936

10,782

Power and Fuel

31

11,146

8,667

Finance Cost

32

3,768

3,738

Depreciation and Amortization Expense

33

6,729

6,628

Impairment Loss/ (Reversal) on Non-Current Assets (Net)

34

155

138

Effective Portion of Cash Flow Hedges
Cost of Hedging Reserve

Profit/ (Loss) attributable to:

Other Comprehensive Income/ (Loss) attributable to:Total Comprehensive Income/ (Loss) attributable to:

Impairment Loss/ (Reversal) on Financial Assets (Net)

35

155

(26)

Owners of the Company

12,582

8,267

Other Expenses

36

25,78018,452

Non-Controlling Interests--

Total Expenses

177,209124,815

Profit/ (Loss) before Share in Profit/ (Loss) in Equity Accounted Investments,
Exceptional Items and Tax

18,986

8,392

6

5

18,992

8,397

582

(492)
7,905

Share in Profit/ (Loss) in Equity Accounted Investments (Net of Tax)

48D,E

Profit/ (Loss) before Exceptional Items and Tax
Exceptional Income/ (Expenses) (Net)37

Profit/ (Loss) before Tax
Tax Expense

19,5749A

Current Tax Expense

3,801

1,881

Deferred Tax Expense

1,572

842

14,201

5,182

Profit/ (Loss) for the year from Continuing Operations
DISCONTINUED OPERATIONS:

50

Profit/ (Loss) for the Year from Discontinued Operations(2,066)

7(367)

Profit/ (Loss) for the year from Discontinued Operations(471)(1,699)Profit/ (Loss) for the year

13,730

3,483

1,172

1,117

-

60

1,211

4,358

-

-

(537)

(327)

Other Comprehensive Income/ (Loss)

Continuing Operations

13,053

9,915

Discontinued Operations(471)(1,648)

Basic - Continuing Operations (`)

63.85

23.30

Diluted - Continuing Operations (`)

63.77

23.29

Basic - Discontinued Operations (`)(2.12)(7.64)

Diluted - Discontinued Operations (`)(2.12)(7.64)

Basic - Continuing and Discontinued Operations (`)

61.73

15.66

61.65

15.65

Diluted - Continuing and Discontinued Operations (`)

Remeasurement of Defined Benefit Obligation of Discontinued Operations
Change in Fair Value of Equity Instruments Designated as FVTOCI
Share in Equity Accounted Investments
Income Tax effect288

HINDALCO INDUSTRIES LIMITED

1

Basis of Preparation and Significant Accounting Policies

38

This is the Consolidated Statement of Profit and Loss referred in our report of even date
For and on behalf of the Board of Hindalco Industries Limited
For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration No. 304026E/E-300009

Praveen Kumar Maheshwari
Whole-time Director andChief Financial Officer
DIN-00174361

Satish Pai
Managing Director
DIN-06646758

Sarah George
PartnerMembership No. 045255

Anil MalikCompany Secretary

K N Bhandari
Director
DIN-00026078

Items that will not be reclassified to Statement of Profit and Loss
Remeasurement of Defined Benefit Obligation

39

Earnings Per Share:

The accompanying Notes are an integral part of the Consolidated Financial Statements(464)

Tax Expense/ (Benefit) of Discontinued Operations

Total Comprehensive Income/ (Loss) attributable to Owners of the Company from:

Place: Mumbai
Date: May 26, 2022

Integrated Annual Report 2021-22

289

290
EquityComponentof Other
Financial
Instruments

HINDALCO INDUSTRIES LIMITED-

Other Comprehensive Income/(Loss) for the year
Total Comprehensive Income/(Loss) for the year
Hedging (gain)/ loss and cost of hedging transferred
to non-financial assets
Transfer to Debenture Redemption Reserve
Transfer to Special Reserve
Other Changes-

Employee Share Options Lapsed/Forfeited
Dividend Paid-

Other Comprehensive Income/(Loss) for the year
Total Comprehensive Income/(Loss) for the year
Hedging (gain)/ loss and cost of hedging transferred
to non-financial assets
Realised Gain/(Loss) on Equity FVTOCI transferred to
Retained Earnings
Transfer to Debenture Redemption Reserve
Transfer to Special Reserve
Other Changes-

Dividend Paid

147

-

-

-

-

-

-

104

-

-

-

-

-

-

-

-

-

-

-

-

-

-

104

5,799

-

-

-

-

-

-

-

-

-

-

-

-

-

-

5,799

-

-

-

-

-

-

-

-

-

-

-

-

5,799

CapitalBusiness
Redemption ReconReserve
struction
Reserve

-

-

-

-

-

-

-

-

-

-

-

-

104

-

-

-

-

-

-

-

150

-

-

-

-

1,200

-

(1)

15

(4)

-

-

-

-

-

-

-

-

44

-

-

-

-

1

-

-

-

-

-

-

-

(130)

-

-

-

-

-

-

1

-

-

-

-

-

19

-

-

-

-

-

-

-

-

-

-

-

-

21,370

(222)

1

-

-

-

-

(1)

(150)

-

4,343

860

3,483

18,806

8,234

-

-

9

-

-

-

-

-

-

-

-

-

-

-

8,225

1,500

-

-

-

-

-

-

-

-

150

-

-

-

-

-

1,350

36,810

(667)

-

-

2

-

-

(67)

-

(150)

302

-

14,613883

13,73022,777

5,334

-

-

-

-

-

-

-

-

-

(302)

-

963

963

-

4,673

(5)

-

-

-

-

-

-

-

-

-

-

-

(6)

(6)

-

1

(4,894)

-

-

-

-

-

-

(33)

-

-

-

(151)

(3,464)(3,464)-(1,246)

(39)

-

-

-

-

-

-

-

-

-

-

-

(49)

(49)

-

10

3,709

-

-

-

-

-

-

32

-

-

-

-

525

525

-

3,152

Anil MalikCompany Secretary

Sarah George
PartnerMembership No. 045255

(222)

-

15

3

1

10

-

-

142

8,267

4,784

3,483

58,105(` in Crore)

-

-

-

-

-

-

-

-

-

-

-

-

10

77,969

(667)

35

6

15

(94)

-

(68)

-

-

-

(151)

12,582(1,148)13,73066,311K N Bhandari
Director
DIN-00026078

Satish Pai
Managing Director
DIN-06646758

(667)

35

6

15

(94)

-

(67)

-

-

-

(151)

12,582(1,148)13,73066,321

11 77,980

-

-

-

-

-

-

1

-

-

-

-

-

-

-

10

Attributable Attributable Total
to Owners of
to NonOther
the Company Controlling Equity
Interests

(222)

-

15

3

1

10

-

-

142

8,267

4,784

3,483

58,095

Statutory Reports

Place: Mumbai
Date: May 26, 2022

-

-

-

-

-

-

-

-

-

959

959

-

2,193

(` in Crore)
Attributable Attributable Total
to Owners of
to NonOther
the Company Controlling Equity
Interests

For and on behalf of the Board of Hindalco Industries Limited

21,370

-

-

-

-

-

-

-

-

-

-

-

-

-

-

21,370Praveen Kumar Maheshwari
Whole-time Director andChief Financial Officer
DIN-00174361

20

-

-

-

-

-

-

-

-

-

-

-

-

-

-

20

-

-

-

-

-

-

-

-

-

(109)

(109)

-

119

Effective Cost ofForeign
portion of Hedging Currency
Cash Flow Reserve Translation
Hedge
Reserve

For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration No. 304026E/E-300009

(199)

-

-

-

24

(94)

-

-

-

-

-

-

-

-

-

(129)

Gain/ (Loss)on Debt
Instruments
FVTOCI

-

-

-

-

-

10

-

-

142

(1,268)(1,268)-(130)

Effective Cost ofForeign
portion of Hedging Currency
Cash Flow Reserve Translation
Hedge
Reserve

Other Reserves

-

-

-

-

-

-

-

-

-

(6)

(6)

-

7

Gain/ (Loss)on Debt
Instruments
FVTOCI

Other Reserves

Our Capitals

This is the Consolidated Statement of Changes in Equity referred in our report of even date

75

-

35

(3)

(11)

-

-

-

-

-

-

-

-

-

-

54

-

-

-

-

-

-

-

-

-

4,348

4,348

-

325

SecuriDebenture Employees Treasury Special General Retained Gain/ (Loss)
ties
Redemption
Stock
Shares Reserve Reserve Earnon Equity
Premium
Reserve
Options
heldbyings
Instruments
ESOP
FVTOCI
Trust

Reserve and Surplus

-

-

-

7

-

-

-

-

-

-

-

-

8,218

SecuriDebenture Employees Treasury Special General Retained Gain/ (Loss)
ties
Redemption
Stock
Shares Reserve Reserve Earnon Equity
Premium
Reserve
Options
heldbyings
Instruments
ESOP
FVTOCITrust

The accompanying Notes are an integral part of the Consolidated Financial Statements

1-

Employee Share Options Expenses

Basis of Preparation and Significant Accounting
Policies-

Employee Share Based Transactions

4-

Shares Issued by the Trust

17-

Shares Acquired by the Trust

-

-

-

-

-

-

-

-

147

CapitalReserve

-

-

-

-

-

-

-

-

-

-

-

-

147

CapitalBusiness
Redemption ReconReserve
struction
Reserve

Reserve and Surplus

222

222

222

Amount(` in Crore)

Strategic Overview

Balance as at March 31, 2022-

Share in Equity Accounted Investments

Transactions with owners in their capacity as
owners-4
Profit/ (Loss) for the year

Balance as at March 31, 2021

17-

Employee Share Options Expenses

EquityComponentof Other
Financial
Instruments-

Employee Share Based Transactions

Particulars-

Shares Issued by the Trust

Note

-

Profit/ (Loss) for the year

Transactions with owners in their capacity as
owners4

Balance as at April 01, 2020

Particulars
CapitalReserve

16

Balance as at March 31, 2022

Note

16

B. Other Equity

16

Balance as at March 31, 2021

Note

Balance as at April 01, 2020

Particulars

A. Equity Share Capitalfor the year ended March 31, 2022

Consolidated Statement of Changes in Equity

Corporate Overview
Financial Statements

Integrated Annual Report 2021-22

291

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Consolidated Statement of Cash Flowsfor the year ended March 31, 2022(` in Crore)

Note
No.
A. CASH FLOW FROM OPERATING ACTIVITIESProfit/ (Loss)before Tax from Continuing Operations
Adjustment for :Finance Cost
Depreciation and Amortization Expense
Impairment Loss/ (Reversal) of Non-Current Assets (Net)Impairment Loss/ (Reversal) on Financial Assets (Net)
Non-Cash Employee Share-Based payments
Share in (Profit)/ Loss in Equity Accounted Investments (Net of Tax)
Unrealised Foreign Exchange (Gain)/ Loss (Net)
Unrealised (Gain)/ Loss on Derivative Transactions (Net)(Gain)/ Loss on Modification of Borrowings (Net)(Gain)/ Loss on Property, Plant and Equipment and Intangible Assets Sold/
Discarded (Net)Interest Income
Dividend Income(Gains)/ Losses on Investments measured at Fair Value through Profit and Loss(Net)
Exceptional (Income)/ Expenses (Net)
Changes in Cash Flow Hedges net of reclassification from OCI
Amortisation of government grants
Other Non-operating (Income)/ Expenses (Net)
Operating Profit before Working Capital Changes
Changes in Working Capital:(Increase)/ Decrease in Inventories(Increase)/ Decrease in Trade Receivables(Increase)/ Decrease in Other Financial Assets(Increase)/ Decrease in Non-Current Assets
Increase/ (Decrease) in Trade Payables
Increase/ (Decrease) in Other Financial Liabilities
Increase/ (Decrease) in Non-Current Liabilities (incl. contract liabilities)
Cash Generated from Operation before Tax
Refund/ (Payment) of Income Tax (Net)Net Cash Generated/ (Used) - Operating Activities - Continuing Operations
Net Cash Generated/ (Used) - Operating Activities - Discontinued Operations
Net Cash Generated/ (Used) - Operating Activities
B. CASH FLOW FROM INVESTMENT ACTIVITIESPayments to acquire Property, Plant and Equipment, Intangible Assets andInvestment Property
Proceeds from disposal of Property, Plant and Equipment, Intangible Assets andInvestment Property
Net cash inflow on disposal of Subsidiaries
Acquisition of business, net of cash acquired
Investment in equity accounted investees
Investment in Equity Shares at FVTOCI(Purchase)/ Sale of Other Investments (Net)
Loans and Deposits given
Receipt of Loans and Deposits given
Interest Received
Dividend Received
Lease payments received from finance lease
Net Cash Generated/ (Used) - Investing Activities - Continuing Operations
Net Cash Generated/ (Used) - Investing Activities - Discontinued Operations
Net Cash Generated/ (Used) - Investing Activities

292

HINDALCO INDUSTRIES LIMITED

31/03/2022
19,574

32
33
34
35
30
48D, E(` in Crore)

Year ended

Note
No.

31/03/2021
7,905

3,768
6,729
155
155
35
(6)
(113)
353
(183)

3,738
6,628
138
(26)
15
(5)
(37)
487
(117)

26

100

35

26
26

(225)
(32)

26

(359)

Year ended
31/03/2022

31/03/2021

6

3

C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of Equity Shares (Including Share Application Money)
Treasury Shares acquired by ESOP Trust
Proceeds from shares issued by ESOP Trust

(94)

-

15

2

Redemption of Debentures

(3)

(3)

Proceeds from Borrowings

14,197

14,105Pre-payment of Non-current Borrowings(17,321)(12,472)

Repayment of Borrowings(623)(4,053)

Increase/ (Decrease) in Supplier’s Credit (Net)

2,161

255

Principal Payments of Lease Liabilities

(337)

(331)

Proceeds from/ (Repayment) of Current Borrowings (Net)

(849)

1,528

Finance Cost Paid

(3,250)(3,678)

(181)
(25)

Dividend Paid (including Dividend Distribution Tax)Net Cash Generated/ (Used) - Financing Activities - Continuing Operations(667)(6,765)(222)(4,866)(543)

Net Cash Generated/ (Used) - Financing Activities - Discontinued Operations

-

(16)

(5)
(34)
(255)
69
29,726

(127)
(121)
(116)
17,648Net Cash Generated/ (Used) - Financing Activities(6,765)(4,882)Net Increase/ (Decrease) in Cash and Cash Equivalents

2,999(13,287)

Add : Opening Cash and Cash Equivalents

8,339

21,269(13,690)(7,886)(285)(1,434)
12,683983
497
20,594(3,773)
16,821
17
16,838(4,640)(2,001)
346
399
7,361
(289)
344
19,168(1,256)
17,912(680)
17,232(5,426)(5,565)

71

48

66
(412)
(1)
363
4,226
(6,214)5207
32
9(7,074)(7,074)(19,524)(43)(2,775)
(266)
5
203
25
10
(27,882)
2,245(25,637)

Add : Effect of exchange variation on Cash and Cash Equivalents

301

357

11,6398,339

11,6398,339

11,6398,339

Acquisition of Right of Use Assets

412

451

(ii) Capitalised interest paid included in Investing activities

118

151

Closing Cash and Cash Equivalents
Reconciliation of Closing Cash and Cash Equivalents with Balance Sheet:
Cash and Cash Equivalents as per Balance Sheet

13

Less: Temporary Overdraft Balance in Current Accounts
Cash and Cash Equivalents as per Cash Flow Statement
Supplemental Information(i) Non Cash Transactions from Investing and Financing Activities:

1

Basis of Preparation and Significant Accounting Policies
The accompanying Notes are an integral part of the Consolidated Financial Statements
This is the Consolidated Statement of Cash Flows referred in our report of even date

For and on behalf of the Board of Hindalco Industries Limited
For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration No. 304026E/E-300009

Praveen Kumar Maheshwari
Whole-time Director andChief Financial Officer
DIN-00174361

Satish Pai
Managing Director
DIN-06646758

Sarah George
PartnerMembership No. 045255

Anil MalikCompany Secretary

K N Bhandari
Director
DIN-00026078

Place: Mumbai
Date: May 26, 2022

Integrated Annual Report 2021-22

293

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
Company Overview
Hindalco Industries Limited (“the Company/ Parent”) was
incorporated in India in the year 1958 having its registeredoffice at Ahura Centre, 1st Floor, B Wing, Mahakali Caves Road,
Andheri (East), Mumbai - 400093.
The Company has two main stream of business Aluminium
and Copper.
In Aluminium, the Company caters to the entire value chain
starting from mining of bauxite and coal through productionof value added products for various application.
The Company along with its subsidiaries has manufacturing
operations in ten countries including India spread over fourcontinents North America, South America, Asia and Europe.
Apart from primary aluminium, the Company produces
aluminium sheet, extrusion and light gauge products for use
in packaging market which includes beverage and food, canand foil products as well as for use in automotive, electronic,architecture, transportation and industrial product markets.
The Company also has one of the largest single location Copper
smelting facility in India.
The equity shares of the Company are listed on National Stock
Exchange of India Limited (NSE) and BSE Limited (BSE) and
GDRs are listed on the Luxembourg Stock Exchange.
1.

Basis of Preparation and Significant Accounting Policies

1A. Basis of Preparation
The Consolidated Financial Statements (“the financial
statements”) relate to the Company and its subsidiaries(collectively “the Group”) and certain unstructured entities
consolidated by the Group and its interest in associates
and joint ventures.The consolidated financial statementscomply in all material aspects with Indian AccountingStandards (“Ind-AS”) as prescribed under section 133 of
the Companies Act 2013 (“the Act”), as notified under theCompanies (Indian Accounting Standards) Rules, 2015,(including subsequent amendments) and other accounting
principles generally accepted in India.
The Group’s consolidated financial statements for the year
ended March 31, 2022 have been approved for issue by
the Board of Directors of the Company in their meeting
held on May 26, 2022.
The financial statements have been prepared under thehistorical cost convention on accrual basis except forfollowing assets and liabilities which have been measured
at fair value:

294•

Certain financial instruments - measured at fair value;•

Assets held for sale - measured at fair value less costto sell;•Plan assets under defined benefit plans - measured
at fair value;•

Liabilities for Cash settled share-based payments;
andHINDALCO INDUSTRIES LIMITED•

Inventories those are designated in a Fair value hedge
relationship where both the derivative and inventory
are fair valued.

In addition, the carrying values of recognised assets andliabilities designated as hedged items in fair value hedges
that would otherwise be carried at cost are adjusted torecord changes in the fair values attributable to the risks
that are being hedged in effective hedge relationship.
Historical cost is generally based on the fair value of theconsideration given in exchange for goods and services.
Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date,regardless of whether that price is directly observableor estimated using another valuation technique. In
estimating the fair value of an asset or a liability, the Grouptake into account the characteristics of the asset or liability
if market participants would take those characteristics
into account when pricing the asset or liability at themeasurement date. Fair value for measurement and/or disclosure purposes in the financial statements isdetermined on such a basis, except for employee sharebased payment, leasing transactions and measurementsthat have some similarities to fair value but are not fairvalue, such as net realisable value in Inventories or value in
use in Impairment of Assets. The basis of fair valuation ofthese items are given as part of their respective accounting
policies.
The Group has determined current and non-current
classification of its assets and liabilities in the financial
statements as per the requirement of Ind AS 1 - ‘Presentationof Financial Statements’. Based on its assessment, theGroup has ascertained its normal operating cycle as
12 months for the purpose of current and non-current
classification of its assets and liabilities.
In addition, for financial reporting purposes, fair value
measurements are categorised into Level 1, 2 or 3 basedon the degree to which the inputs to the fair value
measurements are observable and the significance of the
inputs to the fair value measurement in its entirety, which
are described as follows:•

Level 1 inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities that theGroup can access at the measurement date;•

Level 2 inputs are inputs, other than quoted prices
included within Level 1, that are observable for theasset or liability, either directly or indirectly; and•Level 3 inputs are unobservable inputs for the asset
or liability.

The Consolidated Financial Statements are presented inIndian Rupees (INR/`) which is also the Parent’s Functional
Currency. All financial information presented in INR has
been rounded off to nearest crore Rupees (INR 1 crore =INR 10,000,000) without any decimal, unless otherwise
stated.
1B. Significant Accounting Policies:A.

Principles of Consolidation

Subsidiaries
Subsidiaries are the entities (including structured andunstructured entities) over which the Group has control.
The Group controls an entity when the group is exposed
to or has rights to, variable returns from its involvementwith the entity and has the ability to affect those returns
through its power to direct the relevant activities of theentity. Consolidation of subsidiary begins when the Groupobtains control over the subsidiary and ceases when theGroup loses control of the subsidiary. Assets, liabilities,
income and expenses of a subsidiary acquired or disposedof during the year are included in the consolidated
financial statements from the date the Group gains thecontrol until the date the Group ceases to control thesubsidiary.
The Group combines the financial statements of the parent
and its subsidiaries line by line adding together like items
of assets, liabilities, equity, income and expenses. Intragroup transactions, balances and unrealised profits ontransactions between group companies are eliminatedin full. Unrealised losses are also eliminated unless thetransaction provides evidence of an impairment of thetransferred assets. Appropriate adjustments for deferredtaxes are made for temporary differences that arise fromthe elimination of unrealised profits and losses from intragroup transactions or undistributed earnings of Group’s
entity included in consolidated profit and loss, if any.
The consolidated financial statements are preparedusing uniform accounting policies for like transactions
and other events in similar circumstances. If any entity
within the Group uses accounting policies other thanthose adopted in the consolidated financial statements
for like transactions and events in similar circumstances,appropriate adjustments are made to that group entity’s
financial statements to ensure conformity with the Group’s
accounting policies. The financial statements of all entities
used for the purpose of consolidation are drawn up to
the same reporting date as that of the parent company.
When the end of the reporting period of the parent isdifferent from that of a subsidiary, the subsidiary prepares
additional financial information as of the same date as thefinancial statements of the parent to enable the parent
to consolidate the financial information of the subsidiary,
unless it is impractical to do so.

Non-controlling interest in the profit / loss and equity ofthe subsidiaries are shown separately in the consolidated
statement of profit and loss and the consolidated balance
sheet, respectively.
A change in the ownership interest of a subsidiary,
without a loss of control, is accounted for as an equity
transaction. This results in an adjustment between the
carrying amounts of the controlling and non-controllinginterests to reflect their relative interests in the subsidiary.
Any difference between the amount of the adjustment
to non-controlling interests and any consideration paidor received is recognised within equity attributable toowners of the parent.
In case the Group ceases to consolidate a subsidiarybecause of a loss of control, any retained interest in
the entity is re-measured to its fair value. This fair value
becomes the initial carrying amount for the purpose of
subsequently accounting for the retained interest as an
associate, joint venture or financial assets. When theGroup loses control over a subsidiary, it derecognises theassets, including goodwill, and liabilities of the subsidiary,
carrying amount of any non-controlling interests,
cumulative translation differences recorded in equity
and recognise resulting difference between the fairvalue of the investment retained and the consideration
received and total of amount derecognised as gain orloss attributable to the Parent. In addition, amounts, if
any,previously recognised in other comprehensive income
in relation to that entity are reclassified to profit or loss
as would be required if the parent had directly disposedof the related assets or liabilities.

Interest in Associates and Joint Ventures
An associate is an entity over which the Group hassignificant influence. Significant influence is the power toparticipate in the financial and operating policy decisionsof the investee but is not control or joint control over thosepolicies, generally accompanying a shareholding between
20% and 50% of the voting rights.
A joint venture is a joint arrangement whereby theparties that have joint control of the arrangement haverights to the net assets of the joint arrangement. Joint
control is the contractually agreed sharing of control ofan arrangement, which exists only when decisions about
the relevant activities require unanimous consent of theparties sharing control.
The Group’s interest in its associates or joint ventures
are accounted for using the equity method from thedate on which the investee becomes an associate or a
joint venture. Under equity method, the investment in
an associate or a joint venture is initially recognised atcost and adjusted thereafter to recognise the changes in
the Group’s share of net assets of the associate or joint
venture since the acquisition date. Dividends received
Integrated Annual Report 2021-22295

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statementsor receivable from associates and joint ventures arerecognised as a reduction in the carrying amount of
the investment. On acquisition of the investment in an
associate or a joint venture, any excess of the cost of theinvestment over the Group’s share of the net fair valueof the identifiable assets and liabilities of the investee
is recognised as Goodwill, which is included within the
carrying amount of the investment. Any excess of theGroup’s share of the net fair value of the identifiable
assets and liabilities over the cost of the investment isrecognised in equity as Capital Reserve in the period inwhich the investment is acquired.

If ownership interest in an associate or a joint venture
is reduced but significant influence or joint control
is retained, the Group continues to use the equity
method, and only proportionate share of the amountpreviously recognised in other comprehensive income
are reclassified to consolidated statement of profit andloss where appropriate.
When the Group classified its investments, or a portion
thereof, in associate or joint venture as held for sale, it
discontinues the use of the equity method in relation to
the portion that is classified as held for sale. Any retained
portion of an investment in an associate or a joint venturethat has not been classified as held for sale continues tobe accounted for using the equity method. The Groupdiscontinues the use of the equity method at the time ofdisposal when the disposal results in the Group losing
significant influence over the associate or joint venture.

The consolidated statement of profit and loss reflects theGroup’s share of the results of operations of the associate
or joint venture. Any change in other comprehensive
income (OCI) is presented as part of the Group’s OCI.
In addition, when there has been a change recognised
directly in the equity of the associate or joint venture,
the Group recognises its share of that changes, whenapplicable, in the consolidated statement of changes
in equity. Unrealised gains or losses resulting fromtransactions between the Group and the associate or joint
venture are eliminated to the extent of the interest in theassociate or joint venture.
When the Group’s share of losses of an associate or a joint
venture equals or exceeds its interest in that associate or
joint venture (which includes any long-term interests that,in substance, form part of the Group’s net investment in
the associate or joint venture), the Group discontinues
recognising its share of further losses. Additional losses
are recognised only to the extent that the Group has
incurred legal or constructive obligations or madepayments on behalf of the associate or joint venture. If
the associate or joint venture subsequently reports profits,
the group resumes recognising its share of those profits
only after its share of the profit equals the share of losses
not recognised.
At each reporting date, the Group determines whether
there is objective evidence that the investment in
the associate or joint venture is impaired. If there issuch evidence, the Group calculates the amount of
impairment as the difference between the recoverable
amount of the associate or joint venture and its carrying
value, and then recognises the impairment loss in the
consolidated statement of profit and loss. Any reversalof that impairment loss is recognised to the extent thatthe recoverable amount of the investment subsequently
increases. Goodwill relating to associate or joint venture
is included in the carrying amount of the investment andis not separately tested for impairment.
The Group continues to use the equity method when an
investment in an associate becomes an investment in ajoint venture or an investment in a joint venture becomesan investment in an associate.
296

HINDALCO INDUSTRIES LIMITEDThe excess of the sum of the consideration transferred theamount of any non-controlling interests in the acquired
entity and the acquisition-date fair value of any previous
equity interest in the acquired entity over the acquisitiondate fair value of the net identifiable assets acquired isrecognised as goodwill. Any gain on a bargain purchaseis recognised is in other comprehensive income andaccumulated in equity as Capital Reserve if there exists
clear evidence of the underlying reasons for classifying thebusiness combination as resulting in a bargain purchase,otherwise the gain is recognised directly in equity as
Capital Reserve.
Where settlement of any part of cash consideration isdeferred, the amounts payable in future are discounted
to their present value as at the date of exchange. The
discount rate used is entity’s incremental borrowing
rate, being the rate at which similar borrowing could
be obtained from an independent financier undercomparable terms and conditions.

Upon loss of significant influence over the associate
or joint venture, the group measures and recognises
any retained investment at its fair value. Any difference
between the carrying amount of the associate or joint
venture and the fair value of retained investment andproceeds from disposal is recognised in the consolidated
statement of profit and loss.

Business Combination
Business combinations are accounted for using theacquisition method. The consideration transferred ina business combination comprises the fair values of
the assets transferred, liabilities incurred to the former
owners of the acquired business, equity interests issued
by the Group and fair value of any assets or liability
resulting from a contingent consideration arrangement.
Acquisition-related costs are expensed as incurred.
At the acquisition date, the identifiable assets acquired
and liabilities and contingent liabilities assumed in abusiness combination are measured at their acquisition
date fair values. However, certain assets and liabilities
i.e. deferred tax assets or liabilities, assets or liabilities
related to employee benefit arrangements, liabilities
or equity instruments related to share-based payment
arrangements, lease liabilities under Ind AS 116 andassets or disposal groups that are classified as held for
sale, acquired or assumed in a business combination aremeasuredas per the applicable Ind-AS.
The Group recognises any non-controlling interest in
the acquired entity on an acquisition-by-acquisitionbasis either at fair value or at the non-controllinginterest’s proportionate share of the acquired entity’s net
identifiable assets.

See Note 49 - Business Combination for further details.
C.

Interest in Joint Operations
A joint operation is a joint arrangement whereby the parties
that have joint control of the arrangement have rights tothe assets, and obligations for the liabilities, relating to
the arrangement. Joint control is the contractually agreed
sharing of control of an arrangement, which exists only
when decisions about the relevant activities require
unanimous consent of the parties sharing control.

its assets, including its share of any assets held
jointly;•

its liabilities, including its share of any liabilities
incurred jointly;•

its revenue from the sale of its share of the output
arising from the joint operation;•

its share of the revenue from the sale of the output
by the joint operation; and•its expenses, including its share of any expenses
incurred jointly.

When a Group entity transacts with a joint operation inwhich a group entity is a joint operator (such as a saleor contribution of assets), the Group is considered to be
conducting the transaction with the other parties to thejoint operation, and gains and losses resulting from thetransactions are recognised in the financial statements
only to the extent of other parties’ interests in the joint
operation.
When a group entity transacts with a joint operation inwhich a group entity is a joint operator (such as a purchaseof assets), the Group does not recognise its share of thegains and losses until it resells those assets to a third
party.

When a business combination is achieved in stages,
any previously held equity interest in the acquireeis re-measured at its acquisition-date fair value andthe resulting gain or loss, if any, is recognised in the
consolidated statement of profit and loss or othercomprehensive income, as appropriate.
Where it is not possible to complete the determinationof fair values by the end of the reporting period in which
the combination occurs, a provisional assessment of fairvalues is made and any adjustments required to those
provisional values, and the corresponding adjustments togoodwill, are finalised within 12 months of the acquisition
date.

•

The Group accounts for the assets, liabilities, revenues
and expenses relating to its interest in a joint operation inaccordance with the standard applicable to the particularassets, liabilities, revenues and expenses.

Any contingent consideration is measured at fairvalue at the date of acquisition. If an obligation to pay
contingent consideration that meets the definition of afinancial instrument is classified as equity, then it is not
re-measured subsequently and settlement is accounted
for within equity. Other contingent consideration isre-measured at fair value at each reporting date andchanges in the fair value of contingent consideration arerecognised in profit or loss.

See Note 48 - Interest in Other Entities for further details.
B.

When a Group entity undertakes its activities under joint
operations, the Group as a joint operator recognises inrelation to its interest in a joint operation:

See Note 48 - Interest in Other Entities for further details.
D.

Property, Plant and Equipment
Property, plant and equipment held for use in the
production or/and supply of goods or services, or foradministrative purposes, are stated in the consolidatedbalance sheet at cost, less any subsequent accumulated
depreciation and subsequent accumulated impairment
losses.
The initial cost at cash price equivalent of property, plantand equipment acquired comprises its purchase price,including import duties and non-refundable purchasetaxes, any directly attributable costs of bringing theassets to its working condition and location and present
value of any obligatory decommissioning costs for its
intended use. Cost may also include effective portion on
qualifying cash flow hedges of foreign currency purchasesof property, plant and equipment recycled from hedge
reserve as basis adjustment.

Integrated Annual Report 2021-22

297

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
In case of self-constructed assets, cost includes thecosts of all materials used in construction, direct labour,
allocation of overheads, directly attributable borrowing
costs and effective portion of cash flow hedges of foreign
currency transferred from the hedge reserve as basis
adjustment.
Subsequent expenditure on major maintenance or repairs
includes the cost of the replacement of parts of assets
and overhaul costs. Where an asset or part of an asset isreplaced and it is probable that future economic benefits
associated with the item will be available to the Group,
the expenditure is capitalised and the carrying amountof the item replaced is derecognised. Similarly, overhaul
costs associated with major maintenance which canbe measured reliably are capitalised and depreciatedover their useful lives where it is probable that future
economic benefits will be available and any remaining
carrying amounts of the cost of previous overhauls are
derecognised. All other costs are charged to profit andloss during the reporting period in which they are incurred.

Disposal of assets
An item of property, plant and equipment is derecognised
upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset.
Any gain or loss arising on the disposal or retirement of
an item of property, plant and equipment is determinedas the difference between net disposal proceeds andthe carrying amount of the asset and is recognised intheconsolidated statement of profit and loss.
See Note 2A - Property, Plant and Equipment and Capital
Work-in-Progress for further details.
See Note 33 - Depreciation and Amortization Expense forfurther details.
E.

Investment properties held to earn rentals or for capital
appreciation or both are stated in the consolidatedbalance sheet at cost, less any subsequent accumulated
depreciation and subsequent accumulated impairment
losses. Depreciation is charged on a straight line basis
over their estimated useful lives. Any gain or loss on
disposal of investment property is determined as thedifference between net disposal proceeds and thecarrying amount of the property and is recognised in the
consolidated statement of profit and loss.Transfer to, orfrom, investment property is at the carrying amount of
the property.

Capital work-in-progress
Capital work-in-progress comprise of tangible items in thecourse of construction for production or/and supply of
goods or services or administrative purposes are carriedat cost, less any accumulated impairment loss. At the point
when an asset is capable of operating at management’s
intended use, the cost of construction is transferred to theappropriate category of property, plant and equipment.
Costs associated with the commissioning of an asset arecapitalised.

See Note 3 - Investment Property for further details.
See Note 33 - Depreciation and Amortization Expense forfurther details.

Depreciation
Depreciation is charged so as to write off the cost or valueof assets, over their estimated useful lives. Depreciationis recorded using the straight line basis. The estimateduseful lives and residual values are reviewed at eachyear end, with the effect of any changes in estimate
accounted for on a prospective basis. Each componentof an item of property, plant and equipment with a costthat is significant in relation to the total cost of that item
is depreciated separately if its useful life differs from theothers components of the asset.
Depreciation commences when the assets are ready for
their intended use. Depreciated assets in property andaccumulated depreciation accounts are retained fully until
they are removed/retired from active use.
Leasehold improvements are depreciated over the shorterof their useful life or the lease term, unless the entity
expects to use the assets beyond the lease term.
The useful life of the items of Property, Plant andEquipment estimated by the management for the current
and comparative period are in line with the useful life as
per Schedule II of the Companies Act, 2013. (refer Note 2).
298

HINDALCO INDUSTRIES LIMITED

Investment Property

F.

Intangible Assets (Other than goodwill)

Intangible assets acquired separately
Intangible assets acquired are reported at cost lessaccumulated amortization and accumulated impairment
losses. Amortization is charged on a straight line basis
over their estimated useful lives other than ‘Mining Rights’and ‘Carbon Emission Rights’. The estimated useful life
and amortization method are reviewed at the end of eachannual reporting period, with the effect of any changes in
estimate being accounted for on a prospective basis.

Internally-generated intangible assets
Expenditure on research activities is recognized as an
expense in the period in which it is incurred.
An internally-generated intangible asset arising fromdevelopment (or from the development phase of aninternal project) is recognized if, and only if all of thefollowing have been demonstrated:•

the technical feasibility of completing the intangible
asset so that it will be available for use or sale;•management’s intention to complete the intangible
asset and use or sell it;•

the ability to use or sell the intangible asset;•

how the intangible asset will generate probablefuture economic benefits;•

the availability of adequate technical, financial andother resources to complete the development andto use or sell the intangible asset; and•the ability to measure reliably the expenditure
attributable to the intangible asset during its
development.

rights to explore a specific area but before technicalfeasibility and commercial viability of extracting mineral
resources are demonstrable are recognized as Explorationand Evaluation assets.
If a project does not prove viable, all irrecoverable
exploration and evaluation expenditure associated withthe project net of any related impairment allowances iswritten off to the consolidated statement of profit andloss.
The Group measure its Exploration and Evaluation assets
at cost and classifies it as Property, Plant and Equipment
or Intangible Assets according to the nature of assets
acquired and applies the classification consistently.

The amount initially recognized for internally-generated
intangible assets is the sum of the expenditure incurredfrom the date when the intangible asset is recognised.
Where no internally-generated intangible asset can berecognized, development expenditure is charged to theconsolidated statement of profit and loss in the period inwhich it is incurred.

As the assets are not available for use, it is not depreciatedbut are monitored for indication of impairment. An
exploration and evaluation asset is no longer classified
as such when the technical feasibility and commercial
viability of extracting minerals resources are demonstrable
and the development of the deposit is intended by the
management. The carrying value of such exploration andevaluation asset is reclassified as Mining Rights.

Subsequent to initial recognition, internally-generated
intangible assets are reported at cost less accumulated
amortization and accumulated impairment losses, on thesame basis as intangible assets acquired separately.

Derecognition of intangible assets
An intangible asset is derecognised on disposal, or when
no future economic benefits are expected from use ordisposal. Gains or losses arising from derecognition of
an intangible asset, measured as the difference between
the net disposal proceeds and the carrying amount of theasset are recognised in the consolidated statement of
profit and loss when the asset is derecognised.

Intangible assets acquired in a business combination
Identified intangible assets acquired in a businesscombination and recognised separately from goodwill are
initially recognised at their fair values at the acquisition
date.
Subsequent to initial recognition, intangible assets
acquired in a business combination are reported atcost less accumulated amortization and accumulated
impairment losses, on the same basis as intangible assets
acquired separately.

Intangible assets with indefinite useful lives and intangible
assets not yet available for use are tested for impairment
annually, and whenever there is an indication that theasset may be impaired.

Mining Reserves, Resources and Rights (Mining Rights)
Mineral reserves, resources and rights (together referred
to as ‘mining rights’) which can be reasonably valued,
are recognised in the assessment of fair values onacquisition. Exploitable mineral rights are amortisedusing the unit of production basis over the commercially
recoverable reserves. Mineral resources are included inamortisation calculations where there is a high degreeof confidence that they will be extracted in an economic
manner. Commercially recoverable reserves are proved
and probable reserves. Changes in the commercial
recoverable reserves affecting unit of production
calculations are dealt with prospectively over the revised
remaining reserves.

See Note 5 - Other Intangible Assets and Intangible Assets
under Development for further details.
See Note 33 - Depreciation and Amortization Expense forfurther details.
G.

Stripping cost

Exploration for and evaluation of mineral resources

Stripping costs incurred during the mining production
phase are allocated between cost of inventory produced
and the existing mine asset. The stripping ratio, as
approved by the regulatory authority, for the life of themine is obtained by dividing the estimated quantity ofoverburden by the estimated quantity of mineable coal /bauxite reserve to be extracted over the life of the mine.
This ratio is periodically reviewed and changes, if any, areaccounted for prospectively.

Expenditures associated with exploration for andevaluation of mineral resources after obtaining of legal

Stripping costs are allocated and included as a componentof the mine asset when they represent significantly

Integrated Annual Report 2021-22

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Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
improved access to ore, provided all the following
conditions are met:•

it is probable that the future economic benefit
associated with the stripping activity will be realised;•

the component of the ore body for which access has
been improved can be identified; andfor sale and that represents a separate line of businessor geographical area of operations, is part of single
coordinated plan to dispose of such a line of business orarea of operations, or is a subsidiary acquired exclusively
with a view to resale. The results of discontinued
operations are presented separately in the consolidated
statement of profit and loss.

•

the costs relating to the stripping activity associatedwith the improved access can be reliably measured.

See Note 15 - Non-Current Assets or Disposal GroupClassified as Held For Sale for further details.

The overburden removal costs are included in Mining
Rights under Intangible assets and amortised based on
stripping ratio on the quantity of coal / bauxite excavated.

See Note 50 - Discontinued Operations for further details.
I.

See Note 5 - Other Intangible Assets and Intangible Assets
under Development for further details.

Non-Current assets (or disposal groups) held for sale
Non-Current assets and disposal groups are classified asheld for sale if their carrying amount will be recovered
principally through a sale transaction rather than
through continuing use. This condition is regarded as
met only when the asset (or disposal group) is available
for immediate sale in its present condition subject only
to terms that are usual and customary for sales of such
asset (or disposal group) and its sale is highly probable.
Management must be committed to the sale, which should
be expected to qualify for recognition as a completed salewithin one year from the date of classification.

Cash-generating units to which goodwill has been
allocated are tested for impairment annually, or more
frequently when there is an indication that the unit may
be impaired. If the recoverable amount of the cashgenerating unit is less than the carrying amount of theunit, the impairment loss is allocated first to reduce thecarrying amount of any goodwill allocated to the unit
and then to the other assets of the unit pro-rata on thebasis of the carrying amount of each asset in the unit. An
impairment loss recognised for goodwill is not reversed
in a subsequent period.

Non-Current assets (and disposal groups) classified asheld for sale are measured at the lower of their carrying
amount and fair value less costs to sell except for thoseassets that are specifically exempt under relevant Ind AS.
Once the assets are classified as “Held for sale”, those are
not subjected to depreciation till disposal.

On disposal of a subsidiary the attributable amount of
goodwill is included in the determination of the profit orloss on disposal.

An impairment loss is recognised for any initial orsubsequent write-down of the asset (or disposal group)
to fair value less costs to sell. A gain is recognised forany subsequent increases in fair value less costs to sellof an asset (or disposal group), but not in excess of any
cumulative impairment loss previously recognised.
A gain or loss not previously recognised by the date of
the sale of the non-current asset (or disposal group) is
recognised at the date of derecognition.
Non-current assets classified as held for sale and theassets of a disposal group classified as held for saleare presented separately from the other assets in the
consolidated balance sheet.
Discontinued Operations
A discontinued operation is a component of an entitythat either has been disposed of, or is classified as held

300

Goodwill

For the purpose of impairment testing, goodwill isallocated to each of the Group’s cash-generating units
expected to benefit from the synergies of the combination.

HINDALCO INDUSTRIES LIMITED•

exchange differences on transactions entered into
in order to hedge certain foreign currency risks (seebelow for hedge accounting policies); and•If the recoverable amount of an asset (or cash-generating
unit) is estimated to be less than its carrying amount, thecarrying amount of the asset (or cash-generating unit) is
reduced to its recoverable amount. An impairment loss
is recognised immediately in the consolidated statementof profit and loss.

exchange differences on monetary items receivablefrom or payable to a foreign operation for which
settlement is neither planned nor likely to occur(therefore forming part of the net investment in theforeign operation), which are recognised initially inother comprehensive income and reclassified fromequity to the consolidated statement of profit andloss on repayment of the monetary items.

Non-current assets (other than Goodwill) that sufferedan impairment are reviewed for possible reversal of theimpairment at the end of each reporting period. Wherean impairment loss subsequently reverses, the carrying
amount of the asset (or cash-generating unit) is increased
to the revised estimate of its recoverable amount, sothat the increased carrying amount does not exceed
the carrying amount that would have been determined
had no impairment loss been recognised for the asset(or cash-generating unit) in prior years. A reversal of
an impairment loss is recognised immediately in the
consolidated statement of profit and loss.

Non-monetary items that are measured at historical costin a foreign currency are translated using the exchange
rates at the date of initial transactions. Non-monetary
items measures at fair value in a foreign currency aretranslated using the exchange rates at the date when
the fair value is determined. The gain or loss arising ontranslation of non-monetary items measured at fair value
is treated in line with the recognition of gain or loss onchange in fair value of the item (i.e. translation differenceson items whose fair value gain or loss is recognised in
OCI or profit or loss are also recognised in OCI or profit
or loss, respectively).

Refer Note 1B (I.) on accounting policy on Goodwill for
impairment of goodwill.

For the purposes of presenting consolidated financial
statements, the assets, liabilities and equity (except
retained earnings) of foreign operations are translated
into Indian Rupees at the rate of exchange prevailing at
the reporting date and their income and expenses aretranslated at the exchange rates prevailing at the dateof transactions. For practical reason, the Group uses anaverage rate to translate income and expense items, if
the average rate approximates the exchange rates atthe dates of the transactions. The exchange differences
arising on translation for consolidation are recognisedin other comprehensive income and accumulated inequity. Accumulated exchange differences arising fromtranslation and attributable to non-controlling interests
are allocated to, and recognised as part of, non-controllinginterests in the consolidated balance sheet.

See Note 3 - Investment Property for further details.

See Note 4 - Goodwill for further details.

See Note 5 - Other Intangible Assets and Intangible Assets
under Development for further details.

Impairment of Non-Current Assets (excluding
Goodwill)At the end of each reporting period, the Group reviews
the carrying amounts of its tangible, intangible and othernon-current assets to determine whether there is any
indication that those assets have suffered an impairment
loss. If any such indication exists, the recoverable amountof the asset/ cash-generating unit is estimated in orderto determine the extent of the impairment loss (if any).
Where it is not possible to estimate the recoverable
amount of an individual asset, the Group estimates therecoverable amount of the cash-generating unit to which
the asset belongs. Recoverable amount is the higherof fair value less cost to sell and Value in use. Wherea reasonable and consistent basis of allocation can be
identified, corporate assets are also allocated to individual

eligible exchange differences on foreign currency
borrowings relating to qualifying assets underconstruction are included in the cost of those assets
when they are regarded as an adjustment to interest
costs;

See Note 2 - Property, Plant and Equipment (including
ROU Assets) and Capital Work-in-Progress for further
details.

The Group’s policy for goodwill arising on the acquisitionof an associate is described above.

J.

•

Recoverable amount is the higher of fair value lesscosts to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to theirpresent value using a pre-tax discount rate that reflects
current market assessments of the time value of money
and the risks specific to the asset for which the estimatesof future cash flows have not been adjusted.

Goodwill arising on acquisition is carried at cost as
established at the date of acquisition of the business lessaccumulated impairment losses, if any.

See Note 33 - Depreciation and Amortization Expense forfurther details.
H.

cash-generating units, or otherwise they are allocated to
the group of cash-generating units for which a reasonable
and consistent allocation basis can be identified.

See Note 34 - Impairment Loss/ (Reversal) of Non-Current
Assets (Net) for further details.
K.

Foreign Currency Transactions and Translation
Transactions in foreign currencies are recorded by thegroup entities at their respective functional currency at theexchange rates prevailing at the date of the transaction
first qualifies for recognition. Monetary assets andliabilities denominated in foreign currency are translated
to the functional currency at the exchange rates prevailingat the reporting date.
Exchange differences arising on settlement or translationof monetary items are recognised in the consolidated
statement of profit and loss with the exception of thefollowing:

On the disposal of a foreign operation all of the exchange
differences accumulated in OCI relating to that particularforeign operation attributable to the owners of the Groupis reclassified in the consolidated statement of profit andloss.
In addition, in relation to a partial disposal of a subsidiarythat includes a foreign operation that does not resultin the Group losing control over the subsidiary, theproportionate share of accumulated exchange differences
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forming part of the Consolidated Financial Statements
are re-attributed to non-controlling interests and are notrecognised in the consolidated statement of profit andloss. For partial disposals of investment in associates orjoint arrangements that do not result in the Group losing
significant influence or joint control, the proportionate
share of the accumulated exchange differences isreclassified in the consolidated statement of profit andloss.
Any goodwill and fair value adjustments arising in businesscombinations or acquisition of a foreign operation aretreated as assets and liabilities of the foreign operationand translated at the exchange rates prevailing at thereporting date and resulting exchange differences arerecognised in other comprehensive income.
See Note 32 - Finance Cost for further details.
See Note 36 - Other Expenses for further details.
See Note 38 - Other Comprehensive Income/ (Loss) for
further details.
L.

Provisions and Contingencies
Provisions are recognized when there is a present
obligation (legal or constructive) as a result of a past
event and it is probable (“more likely than not”) that it isrequired to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.
The amount recognised as a provision is the best estimateof the consideration required to settle the present
obligation at the balance sheet date, taking into accountthe risks and uncertainties surrounding the obligation.
Where a provision is measured using the estimated cash
flows to settle the present obligation, its carrying amountis the present value of those cash flows. The discountrate used is a pre-tax rate that reflects current market
assessments of the time value of money in that jurisdiction
and the risks specific to the liability.

Onerous contracts
Present obligations arising under onerous contracts arerecognised and measured as provisions. An onerous
contract is considered to exist when a contract underwhich the unavoidable costs of meeting the obligations
exceed the economic benefits expected to be received
from it.

Restructurings
A restructuring provision is recognised when there is adetailed formal plan for the restructuring which has raised
a valid expectation in those affected that the Group will
carry out the restructuring by stating to implement theplan or announcing its main feature to those affected byit. The measurement of a restructuring provision includes
only the direct expenditures arising from the restructuring

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HINDALCO INDUSTRIES LIMITED

which are both necessarily entailed by the restructuring
and not associated with the ongoing activities of theGroup.

dependent on uncertain future events, or a present
obligation where no outflow is probable. Material
contingent liabilities are disclosed in the consolidated
financial statements unless the possibility of an outflow
of economic resources is remote. Contingent assets are
not recognized in the consolidated financial statements
unless it is virtually certain that the future event will
confirm the asset’s existence and the asset will be
realised.

Contingent liabilities acquired in a business combination
Contingent liabilities acquired in a business combination
are initially measured at fair value at the acquisition
date. At the end of subsequent reporting periods, suchcontingent liabilities are measured at the higher of theamount that would be recognised in accordance with IndAS 37 and the amount initially recognised less cumulative
amortisation recognised in accordance with Ind AS 115- Revenue from contracts with customers. This does not
apply to financial guarantee contracts or otherwise to
those contracts that are within the scope of Ind AS 109.

Enterprise Social Commitment
Enterprise Social Commitment is the amount to be spent
on social and economic development of the surroundingarea over a period of time where any new project is set
up. Such obligation arises out of conditions mentioned
in the Environment Clearance Certificate given by theGovernment for new projects and are generally defined
as a percentage of total project cost. Present value ofsuch future cash flows discounted at appropriate andapplicable discount rates are capitalised against the
obligation created. Actual cash flows that happen over theperiod are adjusted against the obligation. The obligation
is increased over a period of time and the differential isrecognized in the Statement of Profit and Loss as Interest
Expense.

Restoration (including Mine closure), rehabilitationand decommissioning
Close-down and restoration costs are provided for in theaccounting period when the obligation arising from therelated disturbance occurs, based on the net present valueof the estimated future costs of restoration to be incurred
during the life of the mining operation and post closure.
Provisions for close-down and restoration costs do notinclude any additional obligations which are expected toarise from future disturbance.

Renewable Power Obligation

The initial close-down and restoration provision iscapitalised. Subsequent movements in the close-down
and restoration provisions for ongoing operations,
including those resulting from new disturbance related to
expansions or other activities qualifying for capitalisation,
updated cost estimates, changes to the estimated livesof operations, changes to the timing of closure activities
and revisions to discount rates are also capitalised within“Property, plant and equipment”.

Provision towards Renewable Power obligation is createdto the extent any obligated unit is unable to source
renewable energy as a replacement to carbon energy as
per requirement of the applicable regulation during thereporting period and is carried in books till the obligation
is discharged by purchasing Renewable Energy Certificate
from any of the authorised exchanges.
See Note 22 - Provisions for further details.
See Note 43 - Contingent Liabilities and Commitments
for further details.

Environmental liabilities
Environment liabilities are recognised when the group
becomes obliged, legally or constructively to rectify
environmental damage or perform remediation work.

Litigation
Provision relating to legal, tax and other matters is
recognised once it has been established that the group
has a present obligation based on consideration of theinformation which becomes available up to the date on
which the consolidated financial statements of the Groupare approved and may in some cases entail seeking expert
advice in making the determination on whether there is apresent obligation.

Contingent Liabilities and Assets
A contingent liability is a possible obligation that arises
from a past event, with the resolution of the contingency

M.

LeasesThe Group as lessee
The Group assesses whether a contract is or contains alease, at inception of the contract. The Group recognises aright-of-use asset and a corresponding lease liability withrespect to all lease arrangements in which it is the lessee,
except for short-term leases (defined as leases with alease term of 12 months or less) and leases of low value
assets. For these leases, the Group recognises the lease
payments as an operating expense on a straight-line basis
over the lease term, unless another systematic basis is
more representative of the time pattern in which economic
benefits from the leased assets are consumed. Contingent
and variable rentals are recognized as expense in the
periods in which they are incurred.

Lease Liability
The lease payments that are not paid at the commencement
date are discounted using the interest rate implicit in thelease. If that rate cannot be readily determined, which is
generally the case for leases in the Group, the lessee’s
incremental borrowing rate is used, being the rate thatthe individual lessee would have to pay to borrow thefunds necessary to obtain an asset of similar value to theright-of-use asset in a similar economic environment withsimilar terms, security and conditions.
To determine the incremental borrowing rate, theGroup uses a build-up approach that starts with a riskfree interest rate adjusted for credit risk and makes
adjustments specific to the lease, e.g. term, security etc.
Lease payments included in the measurement of the leaseliability comprise:•

Fixed lease payments (including in-substance fixed
payments) payable during the lease term and underreasonably certain extension options, less any lease
incentives;•

Variable lease payments that depend on an index or
rate, initially measured using the index or rate at thecommencement date;•

The amount expected to be payable by the lessee
under residual value guarantees;•

The exercise price of purchase options, if the lessee
is reasonably certain to exercise the options; and•Payments of penalties for terminating the lease, if
the lease term reflects the exercise of an option toterminate the lease.

The lease liability is presented as a separate line in the
consolidated Balance Sheet.
The lease liability is subsequently measured by increasing
the carrying amount to reflect interest on the lease liability(using the effective interest method) and by reducing thecarrying amount to reflect the lease payments made.
The Group remeasures the lease liability (and makes acorresponding adjustment to the related right-of-use
asset) to reflect any reassessment, lease modification orrevised in-substance fixed lease payments.

Right of Use (ROU) Assets
The ROU assets comprise the initial measurement of thecorresponding lease liability, lease payments made at or
before the commencement day and any initial direct costs.
They are subsequently measured at cost less accumulated
depreciation and impairment losses.
Whenever the Group incurs an obligation for costs todismantle and remove a leased asset, restore the site on
which it is located or restore the underlying asset to theIntegrated Annual Report 2021-22

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forming part of the Consolidated Financial Statements
condition required by the terms and conditions of thelease, a provision is recognised and measured under Ind
AS 37- Provisions, Contingent Liabilities and Contingent
Assets. The costs are included in the related right-of-use
asset.

The Group as lessor

For the certain class of assets, the Group allocates lease or
non-lease components on the basis of their relative standalone prices while assessing a contract at its inception or
on reassessment.

Leases for which the Group is a lessor are classified as
finance or operating leases. Whenever the terms of thelease transfer substantially all the risks and rewardsof ownership to the lessee, the contract is classified as
finance lease. All other leases are classified as operatingleases.

The Group enters into lease arrangements as a lessor
with respect to some of its investment properties andbuildings.

The Group applies Ind AS 36 - Impairment of Assets todetermine whether a right-of-use asset is impaired andaccounts for any identified impairment loss as per its
accounting policy on ‘Property, Plant and Equipment’.

Rental income from operating leases is recognised ona straight-line basis over the term of the relevant lease.
Initial direct costs incurred in negotiating and arranging
an operating lease are added to the carrying amount of
the leased asset and recognised on a straight-line basis
over the lease term.

ROU assets are depreciated over the shorter period of
the lease term and useful life of the underlying asset. If
the Group is reasonably certain to exercise a purchase
option, the right-of-use asset is depreciated over theunderlying asset’s useful life. The depreciation starts atthe commencement date of the lease.

When Group (seller-lessee) sells an asset to anotherentity (the buyer-lessor) and leases it back from the buyer
lessor, the Group determines if the transaction qualifies
as a sale under Ind AS 115 or whether the transaction is acollateralised borrowing.

If the transfer does not qualify as a sale under Ind AS 115,
the Group does not derecognise the transferred asset, andit accounts for the cash received as a financial liability.
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HINDALCO INDUSTRIES LIMITED

Materials and other supplies held for use in the productionof inventories (finished goods, work-in-progress) are notwritten down below the cost if the finished products inwhich they will be used are expected to sell at or above
cost.
See Note 11 - Inventories for further details.
O.

Trade receivables are measured at their transaction priceon initial recognition, unless it contains a significant
financing component or pricing adjustments embedded in
the contract. Trade receivables are held with the objectiveof collecting the contractual cash flows and therefore
are subsequently measured at amortised cost less loss
allowance.

See Note 2 - Property, Plant and Equipment (including
ROU Assets) and Capital Work-in-Progress and Note 36- Other Expenses for further details.

Trade receivables which are subject to a factoringarrangement without recourse are de-recognized fromthe consolidated balance sheet. Under this arrangement,
the Group transfers relevant receivables to the factor in
exchange for cash and does not retain late payment andcredit risk.

See Note 2C - Lease Liabilities recognised against Rightof Use assets for further details.
N.

Inventories
Inventories are stated at the lower of cost and net
realizable value. The cost of finished goods and workin progress includes raw materials, direct labour, otherdirect costs and related production overheads. Costs ofinventories include the transfer from equity any gains/losses on qualifying cash flow hedges for purchases ofraw materials.
Cost of raw material and traded goods comprises of Costof purchases and also include all other costs incurred inbringing the inventories to their present location andcondition and are net of rebates and discounts.

Trade Receivable
Trade receivables are amounts due from customers forgoods sold or services performed in the ordinary course ofbusiness. If receivable is expected to be collected within aperiod of 12 months or less from the reporting date (or in
the normal operating cycle of the business if longer), they
are classified as Current Assets otherwise as Non-Current
Assets.

When a contract includes lease and non-lease components,
the Group applies Ind AS 115, Revenue from Contracts
with Customers to allocate the consideration under thecontract to each component.

Sale and Leaseback

Any difference between the sale consideration and thefair value of the asset is either a prepayment of lease
payments (if the purchase price is below market terms)
or an additional financing (if the purchase price is above
market terms), and this is applied if the lease payments
are not at market rates.

Net realizable value represents the estimated selling pricefor inventories less all estimated costs of completion andcosts necessary to make the sale.

Amounts due from lessees under finance leases arerecognised as receivables at the amount of the Group’s
net investment in the leases. Finance lease income isallocated to accounting periods so as to reflect a constantperiodic rate of return on the Group’s net investment
outstanding in respect of the leases.

Deferred tax on the deductible temporary difference
and taxable temporary differences in respect of carrying
value of right of use assets and lease liability and theirrespective tax bases are recognised separately.

financial year. The amounts are unsecured and usually paid
within time limits as contracted. Trade and other payables
are presented as current liabilities unless the payment is
not due within 12 months after the reporting period.

Cost is determined using the weighted average cost basis.
However, the same cost basis is applied to all inventories
of a particular class.Inventories of stores and spare parts
are valued at weighted average cost basis after providing
for cost of obsolescence and other anticipated losses,
wherever considered necessary.

When the Group is an intermediate lessor, it accounts forthe head lease and sublease as two separate contracts.
The sublease is classified as finance or operating lease byreference to the right-of-use asset arising from the headlease.

Extension and termination options are included in many ofthe leases. In determining the lease term the management
considers all facts and circumstances that create an
economic incentive to exercise an extension option, or
not exercise a termination option.

A sale and leaseback qualifies as a sale if the buyerlessor obtains control of the underlying asset. The Groupmeasures a right-of-use asset arising from the leaseback
as the proportion of the previous carrying amount of
the asset that relates to the right-of-use retained. The
gain/ (loss) that the Group recognises is limited to the
proportion of the total gain/ (loss) that relates to therights transferred to the buyer-lessor.

The Inventories are measured at Fair Value only in thosecases where the Inventories are designated into a fairvalue hedge relationship.

Trade receivables which arise from contracts where thesale price is provisional and revenue model have thecharacter of a commodity derivative are measured atfair value. The fair value is measured at forward rate andsubsequent changes are recognised as Other Operating
Revenue.
See Note 12 - Trade Receivables for further details.
P.

Trade and Other Payables
These amounts represent liabilities for goods and services
provided to the Group and are unpaid at the end of the

They are recognised initially at their transactional
value which represents the fair value and subsequently
measured at amortised cost using the effective interest
method wherever applicable.
See Note 20 - Trade Payables for further details.
Q.

Financial Instruments
All financial assets are recognised on trade date when thepurchase of a financial asset is under a contract whoseterm requires delivery of the financial asset within thetimeframe established by the market concerned.Financial
assets are initially measured at fair value, plus transaction
costs, except for those financial assets which are classified
as at fair value through profit or loss (FVTPL) at inception.
All recognised financial assets are subsequently measured
in their entirety at either amortised cost or fair value.

Classification of financial assets
Financial assets are classified as ‘equity instrument’ if it
is a non-derivative and meets the definition of ‘equity’for the issuer. All other non-derivative financial assets are‘debt instruments’.

Financial assets at amortised cost and the effective
interest method
Debt instruments are measured at amortised cost if bothof the following conditions are met:•

the asset is held within a business model whose
objective is to hold assets in order to collectcontractual cash flows; and•the contractual terms of the instrument give riseon specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.

Debt instruments meeting these criteria are subsequently
measured at amortised cost using the effective interest
method less any impairment, with interest recognised onan effective yield basis in investment income.
The effective interest method is a method of calculating
the amortised cost of a debt instrument and of allocatinginterest over the relevant period. The effective interest
rate is the rate that exactly discounts the estimatedfuture cash receipts (including all fees or points paid or
received that form an integral part of the effective interest
rate, transaction costs and other premiums or discounts)
through the expected life of the debt instrument, or (whereappropriate) a shorter period, to the net carrying amounton initial recognition.

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forming part of the Consolidated Financial Statements
The Group may irrevocably elect at initial recognition toclassify a debt instrument that meets the amortised costcriteria above as at FVTPL if that designation eliminatesor significantly reduces an accounting mismatch had thefinancial asset been measured at amortised cost.

Financial assets at fair value through othercomprehensive income (FVTOCI)
Debt instruments are measured at FVTOCI if both of thefollowing conditions are met:••

the asset is held within a business model whose
objective is to hold assets in order to collectcontractual cash flows and selling assets; andthe contractual terms of the instrument give riseon specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding

Debt instruments meeting these criteria are subsequently
measured at fair value with any gains or losses arisingon re-measurement recognised in other comprehensive
income, except for impairment gains or losses, interest
gain and foreign exchange gains or losses which arerecognised in the Consolidated statement of profit andloss. Interest calculated using the effective interest
method is recognised in the Consolidated statement of
profit and loss as investment income. When the debt
instrument is derecognised the cumulative gain or loss
previously recognised in other comprehensive income isreclassified to the Consolidated statement of profit andloss as a reclassification adjustment.
At initial recognition, an irrevocable election is made(on an instrument-by-instrument basis) to designate
investments in equity instruments (other than held for
trading purpose) at FVTOCI.
A financial asset is held for trading if:•

it has been acquired principally for the purpose of
selling it in the near term; or•on initial recognition it is part of a portfolio ofidentified financial instruments that the Groupmanages together and has evidence of a recent
actual pattern of short-term profit-taking; or•

it is a derivative that is not designated in an effective
hedge relationship as a hedging instrument or afinancial guarantee.

Investments in equity instruments at FVTOCI are
subsequently measured at fair value with gains and losses
arising from changes in fair value recognised in othercomprehensive income and accumulated in the ‘Gain/(Loss) on Equity Instruments FVTOCI’. Where the asset
is disposed of, the cumulative gain or loss previously
accumulated in the ‘Gain/ (Loss) on Equity Instruments
FVTOCI’ is directly reclassified to retained earnings.

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HINDALCO INDUSTRIES LIMITEDFor equity instruments measured at fair value throughother comprehensive income no impairments arerecognised in the Consolidated statement of profit andloss.
Dividends on these investments in equity instruments
are recognised in the Consolidated statement of profit
and loss in investment income when the Group’s right toreceive the dividends is established, it is probable thatthe economic benefits associated with the dividend willflow to the entity; and the amount of the dividend can bemeasured reliably.

Financial assets at fair value through profit and loss
(FVTPL)
Financial assets that do not meet the criteria ofclassifying as amortised cost or fair value through othercomprehensive income described above, or that meet thecriteria but the entity has chosen to designate as at FVTPL
at initial recognition, are measured at FVTPL.
Investments in equity instruments are classified as at
FVTPL, unless the Group designates an investment thatis not held for trading at FVTOCI at initial recognition.
Financial assets at FVTPL are subsequently measured
at fair value, with any gains or losses arising on remeasurement recognised in the Consolidated statementof profit and loss. Interest income from these financial
assets is included in other income.
Dividend income on investments in equity instruments
at FVTPL is recognised in the Consolidated statement of
profit and loss in investment income when the Group’s
right to receive the dividends is established, it is probablethat the economic benefits associated with the dividend
will flow to the entity, and the amount of the dividend canbe measured reliably.

Impairment of financial assets
On initial recognition of the financial assets, a loss
allowance for expected credit loss is recognised for
debt instruments at amortised cost and FVTOCI. For
debt instruments that are measured at FVTOCI, the loss
allowance is recognised in the Consolidated statementof profit and loss.
Expected credit losses of a financial instrument ismeasured in a way that reflects:•

an unbiased and probability-weighted amount thatis determined by evaluating a range of possible
outcomes;•

the time value of money; and•reasonable and supportable information thatis available without undue cost or effort at thereporting date about past events, current conditions
and forecasts of future economic conditions.

At each reporting date, the Group assesses whether
the credit risk on a financial instrument has increased
significantly since initial recognition.
When making the assessment, the Group compares therisk of a default occurring on the financial instrument as at
the reporting date with the risk of a default occurring on
the financial instrument as at the date of initial recognitionand consider reasonable and supportable information,that is available without undue cost or effort, that isindicative of significant increases in credit risk since initialrecognition.
If, at the reporting date, the credit risk on a financial
instrument has not increased significantly since initialrecognition, the Group measures the loss allowance forthat financial instrument at an amount equal to 12-month
expected credit losses. If, the credit risk on that financial
instrument has increased significantly since initialrecognition, the Group measures the loss allowance fora financial instrument at an amount equal to the lifetime
expected credit losses.
For Trade Receivables and Contract Assets, the Groupapplies the simplified approach required by Ind AS 109,
which requires expected life time losses to be recognizedfrom initial recognition of the receivables.
The amount of expected credit losses (or reversal) thatis required to adjust the loss allowance at the reporting
date is recognised as an impairment gain or loss in theConsolidated statement of profit and loss.

De-recognition of financial assets
The Group derecognises a financial asset on trade date
only when the contractual rights to the cash flows fromthe asset expire, or when it transfers the financial asset
and substantially all the risks and rewards of ownership of
the asset to another entity or when it retains contractual
rights to retain contractual cash flows from financial
assets, but assumes a contractual obligation to pay the
cash flows to one or more recipient. If the Group neithertransfers nor retains substantially all the risks and rewardsof ownership and continues to control the transferredasset, the Group recognises its retained interest in theasset and an associated liability for amounts it may haveto pay. If the Group retains substantially all the risks andrewards of ownership of a transferred financial asset, theGroup continues to recognise the financial asset and also
recognises a collateralised borrowing for the proceeds
received.
On de-recognition of a financial asset other than in
its entirety (e.g. when the Group retains an option
to repurchase part of a transferred asset), the Group
allocates the previous carrying amount of the financial
asset between the part it continues to recognise undercontinuing involvement, and the part it no longer

recognises on the basis of the relative fair values of thoseparts on the date of the transfer. The difference between
the carrying amount allocated to the part that is no longer
recognised and the sum of the consideration received forthe part no longer recognised and any cumulative gainor loss allocated to it that had been recognised in othercomprehensive income is recognised in the Consolidated
statement of profit and loss.A cumulative gain or loss
that had been recognised in other comprehensive
income is allocated between the part that continues tobe recognised and the part that is no longer recognisedon the basis of the relative fair values of those parts.

Financial liabilities and equity instruments issued by
the GroupClassification as debt or equity
Debt and equity instruments are classified as either
financial liabilities or as equity in accordance with thesubstance of the contractual arrangement.

Equity instruments
An equity instrument is any contract that evidences aresidual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by the Groupare recognised at the proceeds received, net of direct issue
costs.

Compound instruments
The component parts of compound instruments(convertible instruments) issued by the Group areclassified separately as financial liabilities and equity
in accordance with the substance of the contractual
arrangement. At the date of issue, the fair value of theliability component is estimated using the prevailingmarket interest rate for a similar non-convertible
instrument. This amount is recorded as a liability on anamortised cost basis using the effective interest method
until extinguished upon conversion or at the instrument’s
maturity date. The equity component is determined bydeducting the amount of the liability component fromthe fair value of the compound instrument as a whole.
This is recognised and included in equity, net of income
tax effects, and is not subsequently re-measured.

Financial guarantee contract liabilities
Financial guarantee contract liabilities are initiallymeasured at their fair values and, if not designated as at
FVTPL, are subsequently measured at the higher of:•

the amount of loss allowance is determined by using
expected credit loss model ; and•the amount initially recognised less, whereappropriate, cumulative amount of income recognisedin accordance with the revenue recognition policies.

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forming part of the Consolidated Financial Statements
amortised cost using the effective interest method, withinterest expense recognised on an effective yield basis.

Financial liabilities
Financial liabilities are classified as either financial
liabilities ‘at FVTPL’ or ‘other financial liabilities’.

The effective interest method is a method of calculating
the amortised cost of a financial liability and of allocatinginterest expense over the relevant period. The effective
interest rate is the rate that exactly discounts estimatedfuture cash payments through the expected life of thefinancial liability, or (where appropriate) a shorter period,to the net carrying amount on initial recognition.

Financial liabilities at FVTPL
Financial liabilities are classified as at FVTPL when
the financial liability is either held for trading or it isdesignated as at FVTPL.
A financial liability is classified as held for trading if:•

it has been acquired or incurred principally for the
purpose of repurchasing it in the near term; or•on initial recognition it is part of a portfolio ofidentified financial instruments that the Groupmanages together and for which there is evidenceof a recent actual pattern of short-term profit-taking;or•Offsetting financial instruments
Financial assets and liabilities are offset and the net
amount reported in the Consolidated balance sheet when
there is a legally enforceable right to offset the recognised
amounts and there is an intention to settle on a net basisor realise the asset and settle the liability simultaneously.
The legally enforceable right must not be contingent on
future events and must be enforceable in the normal
course of business and in the event of default, insolvency
or bankruptcy of the Group or the counterparty.

it is a derivative that is not designated and effective
as a hedging instrument.

A financial liability other than a financial liability held for
trading may also be designated as at FVTPL upon initialrecognition if:•

such designation eliminates or significantly reduces
a measurement or recognition inconsistency thatwould otherwise arise; or•the financial liability forms part of a group offinancial assets or financial liabilities or both, which
is managed and its performance is evaluated ona fair value basis, in accordance with the Group’s
documented risk management or investment
strategy, and information about the Group isprovided internally on that basis; or•

See Note 7 - Loans for further details.
See Note 8A & 8B - Other Financial Assets for further
details.
See Note 14 - Bank Balances other than Cash and Cash
Equivalents for further details.
See Note 18A & 18B - Borrowings for further details.
See Note 26 - Other Income for further details.
See Note 35 - Impairment Loss/ (Reversal) on Financial
Assets (Net) for further details.
See Note 45 - Financial Instruments for further details.

it forms part of a contract containing one or more
embedded derivatives, and Ind-AS 109 Financial
Instruments permits the entire combined contract
to be designated as at FVTPL.

Financial liabilities at FVTPL are stated at fair value, withany gains or losses arising on re-measurement recognisedin the Consolidated statement of profit and loss, except
for the amount of change in the fair value of the financial
liability that is attributable to changes in the credit risk ofthat liability which is recognised in other comprehensive
income.
The net gain or loss recognised in the Consolidated
statement of profit and loss incorporates any interest
paid on the financial liability.

Other financial liabilities
Other financial liabilities, including borrowings, areinitially measured at fair value, net of transaction costs.
Other financial liabilities are subsequently measured at
308

See Note 6A & 6B - Investments for further details.

HINDALCO INDUSTRIES LIMITED

See Note 46 - Financial Risk Management and Derivative
Financial Instruments for further details.
See Note 47 - Offsetting for further details.
R.

Derivatives and Hedge Accounting
Derivatives are initially recognised at fair value on the datea derivative contract is entered into and are subsequently
re-measured at their fair value at the end of each reporting
date. The method of recognising the resulting gain orloss depends on whether the derivative is designated asa hedging instrument, and if so, the nature of the item
being hedged.
The Group designates certain derivatives as either:•hedges of the fair value of recognised assets or
liabilities or a firm commitment (fair value hedge);•

hedges of a particular risk associated with the cash
flow of recognised assets or liabilities or a highly
probable forecast transaction (cash flow hedge); or

The Group documents at the inception of the transaction
the relationship between hedging instruments andhedged items, as well as its risk management objectives
and strategy for undertaking various hedging transactions.
The Group also documents the nature of the risk being
hedged and how the Group will assess whether thehedging relationship meets the hedge effectivenessrequirements (including its analysis of the sources ofhedge ineffectiveness and how it determines the hedge
ratio).

statement of profit and loss, and is included in the ‘(Gain)/ Loss in Fair Value of Derivatives’ line item.
Amounts previously recognised in other comprehensive
income and accumulated in equity are reclassified to theConsolidated statement of profit and loss in the periods
when the hedged item affects the Consolidated statementof profit and loss, in the same line as the recognised
hedged item. However, when the hedged forecast
transaction results in the recognition of a non-financial
asset or a non-financial liability, the gains and losses
previously recognised in other comprehensive income
and accumulated in equity are transferred from equity
and included in the initial measurement of the cost of
the non-financial asset or non-financial liability as a basis
adjustment.

Change in Fair value of derivatives that are not designatedin any hedge relationship as mentioned above areaccounted through the Consolidated Statement of Profit
and Loss at each reporting date.
The Group also identifies embedded derivatives in certaintransactions. These derivatives are generally segregatedfrom the host transactions and accounted for separately.
These derivatives are designated into a hedge relationshipif they meet hedge accounting criteria. Change in fairvalue of such embedded derivatives are accounted in
Other Comprehensive Income if they are designated ina cash flow hedge relationship. Fair Value change of allother embedded derivatives including those that are
not designated in any hedge relationship are accounted
through the Consolidated Statement of Profit and Loss.

If the hedge ratio for risk management purposes in
no longer optimal but the risk management objective
remains unchanged and the hedge continues to qualify
for hedge accounting, the hedge relationship will berebalanced by adjusting either the volume of the hedging
instrument or the volume of the hedged item so that thehedge ratio aligns with the ratio used for risk management
purposes. Any hedge ineffectiveness is calculated andaccounted for in the Consolidated statement of profit andloss at the time of the hedge relationship rebalancing.

The full fair value of a hedging derivative is classified
as a Non-Current asset or liability when the residual
maturity of the derivative is more than 12 months and as
a current asset or liability when the residual maturity ofthe derivative is less than 12 months.

Hedge accounting is discontinued when the hedging
instrument expires or is sold, terminated, or exercised, orwhen it no longer qualifies for hedge accounting. Any gainor loss recognised in other comprehensive income andaccumulated in equity at that time remains in equity andis recognised when the forecast transaction is ultimately
recognised in the Consolidated statement of profit andloss. When a forecast transaction is no longer expected tooccur, the gain or loss accumulated in equity is recognised
immediately in the Consolidated statement of profit andloss.

Fair value hedge
Changes in the fair value of derivatives that are designatedand qualify as fair value hedges are recorded in theConsolidated statement of profit and loss, together withany changes in the fair value of the hedged item that are
attributable to the hedged risk.
Hedge accounting is discontinued when the hedging
instrument expires or is sold, terminated, or exercised, orwhen it no longer qualifies for hedge accounting. The fairvalue adjustment to the carrying amount of the hedged
item arising from the hedged risk is amortised to theConsolidated Statement of Profit and Loss from that date
except for inventory that is charged to the Consolidated
Statement of Profit and Loss on sale of goods.

Cash flow hedges
The effective portion of changes in the fair value ofderivatives that are designated and qualify as cash flow
hedges is recognised in other comprehensive income andaccumulated under the heading cash flow hedging reserve
within equity. The gain or loss relating to the ineffective
portion is recognised immediately in the Consolidated

See Note 46 - Financial Risk Management and Derivative
Financial Instruments for further details.
S.

Cash and Cash Equivalents
Cash and cash equivalents comprise of cash at bank andin hand, short-term deposits and short term highly liquid
investments with an original maturity of three months orless that are readily convertible to known amounts of cash
and are subject to insignificant risk of changes in value.
For the purposes of the consolidated statement of cash
flow, cash and cash equivalents is as defined above, netof outstanding bank overdrafts which are integral part ofCash management activities. In the consolidated balance
sheet, bank overdrafts are shown within borrowings incurrent liabilities.
See Note 13 - Cash and Cash Equivalents for further details.

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forming part of the Consolidated Financial StatementsT.

statement of profit and loss depending upon the natureof the underlying grant, except for grants received in theform of rebate or exemptions related to expenditures,
which are deducted in reporting the related expense.

Borrowing cost
General and specific borrowing costs directly attributable
to the acquisition, construction or production of qualifying
assets are added to the cost of those assets, until such timeas the assets are substantially ready for their intended use
or sale. The Group considers a period of twelve months
or more as a substantial period of time. Qualifying assets
are assets that necessarily take a substantial period oftime to get ready for their intended use or sale.

The benefit of a government loan at a below-market rateof interest is treated as a government grant, measured
as the difference between proceeds received and the fairvalue of the loan based on prevailing market interest rates.
Emission allowances are initially recognised as anintangible asset measured at fair value when the Group
is granted the allowances and able to exercise control
with a corresponding recognition of a grant at the sameamount under deferred income. As carbon dioxide isemitted, the corresponding tons of emission allowances
initially recognised under deferred income is reclassified
and recognized in the Consolidated statement of profit
and loss on a systematic basis.

Transaction cost in respect of long-term borrowings
are amortised over the tenure of respective loans using
effective interest method. All other borrowing costs are
expensed in the period in which they are incurred.
Investment income earned on the temporary investmentof specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs
eligible for capitalization.

Emission allowances are not amortised as their carrying
value equals their residual value and therefore thedepreciable basis zero, as their value is constant untildelivery to the authorities. Emission allowances are
subject to impairment test.

See Note 2 - Property, Plant and Equipment (including
ROU Assets) and Capital Work-in-Progress for further
details.
See Note 5 - Other Intangible Assets and Intangible Assets
under Development for further details.

The provision for the liability to deliver allowances isrecognised based on actual emission. The provision ismeasured at the carrying amount of allowances to theextent that the provision will be settled using allowanceson hand with any excess emission being measured at themarket value of the allowances at the period end. The
group records the expense in the Consolidated statementof profit and loss under other expenses.

See Note 32 - Finance Cost for further details.
U.

Accounting for Government Grants
Government grants are recognized when there isreasonable assurance that the Group will comply withthe conditions attaching to them and that the grants will
be received.
Government grants are recognised in the consolidated
statement of profit and loss on a systematic basis overthe periods in which the Group recognises as expenses
the related costs for which the grants are intended
to compensate. Government grants whose primarycondition is that the Group should purchase, construct
or otherwise acquire Non-Current assets are recognizedin the consolidated balance sheet by setting up the grant
as deferred income and its amortization is recognised in‘Other Income’ on straight line basis over expected useful
lives of related assets.
Other government grants (grants related to income)are recognized as income over the periods necessary tomatch them with the costs for which they are intended tocompensate, on a systematic basis. Government grantsthat are receivable as compensation for expenses orlosses already incurred or for the purpose of providing
immediate financial support with no future related costs
are recognized in the Consolidated statement of profit
and loss in the period in which they become receivable.
Grants related to income are presented under Other
Income or Other Operating Revenue in the Consolidated

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HINDALCO INDUSTRIES LIMITED

When the emission allowances for the carbon dioxide
emitted are delivered to the authorities, the intangible
asset as well as the corresponding provision are derecognized from the Consolidated balance sheet without
any effect on the Consolidated statement of profit andloss.
See Note 25 - Revenue from Operations for further details.
See Note 26 - Other Income for further details.
V.

Employee Benefits

Retirement benefit, medical costs and termination
benefits
A defined contribution plan is a pension plan underwhich the group pays fixed contributions into a separate
entity. The Group has no legal or constructive obligations
to pay further contributions if the fund does not holdsufficient assets to pay all employees the benefits relating
to employee service in the current and prior periods.
Payments to defined contribution retirement benefit plans
are recognised as an expense when employees haverendered service entitling them to the contributions.

For defined benefit retirement and medical plans, the costof providing benefits is determined using the projected
unit credit method, with actuarial valuations being
carried out at the end of each annual reporting period.
The present value of the defined benefit obligation isdetermined by discounting the estimated future cash
outflows using market yields of government bonds having
terms approximating to the terms of related obligation.
In countries where there is a deep market in high-quality
corporate bonds, the market rate on those bonds that are
denominated in the currency in which the benefits will be
paid, and that have terms to maturity approximating to
the terms of the related pension obligation are used.
Re-measurement, comprising of actuarial gains and losses,
the effect of the changes to the asset ceiling (if applicable)
and the return on plan assets (excluding interest), isreflectedin the Consolidated balance sheet with a charge
or credit recognised in other comprehensive income in the
period in which they occur. Re-measurement recognisedin other comprehensive income is reflected immediately
in retained earnings and will not be reclassified to theConsolidated statement of profit and loss. Past service
cost is recognised in the Consolidated statement of profit
and loss in the period of a plan amendment. Net interest is
calculated by applying the discount rate at the beginningof the period to the net defined benefit liability or asset.
Defined benefit costs are categorised as follows:•

service cost (including current service cost, past
service cost, as well as gains and losses on
curtailments and settlements);•

net interest expense or income; and•re-measurement.

The Group presents the first two components of defined
benefit costs in the Consolidated statement of profit
and loss in the line item employee benefits expense.
Curtailment gains and losses are accounted for as past
service costs.
The retirement benefit obligation recognised in theConsolidated balance sheet represents the actual deficit
or surplus in the Group’s defined benefit plans. Any
surplus resulting from this calculation is limited to thepresent value of any economic benefits available in theform of refunds from the plans or reductions in futurecontributions to the plans.
A liability for a termination benefit is recognised at
the earlier of when the Group can no longer withdraw
the offer of the termination benefit or when the entity
recognises any related restructuring costs which involves
the payment of terminations benefits.
In the case of an offer made to encourage voluntary
redundancy, the termination benefits are measured basedon the number of employees expected to accept the offer.

Benefits falling due more than 12 months after the end of
the reporting period are discounted to their present value.

Short-term and other long-term employee benefits
A liability is recognised for benefits accruing to employees
in respect of wages and salaries in the period the related
service is rendered at the undiscounted amount of thebenefits expected to be paid in exchange for that service.
Liabilities recognised in respect of short-term employee
benefits are measured at the undiscounted amount of thebenefits expected to be paid in exchange for the related
service.
Liabilities recognised in respect of other long-term
employee benefits such as annual leave and sick leave aremeasured at the present value of the estimated future cash
outflows expected to be made by the Group in respect ofservices provided by employees up to the reporting date.
The expected costs of these benefits are accrued overthe period of employment using the same accounting
methodology as used for defined benefit retirement
plans. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions arecharged or credited to the Consolidated statement of
profit and loss in the period in which they arise. Theseobligations are valued annually by independent qualified
actuaries.
See Note 30 - Employee Benefits for further details.
W. Employee Share-based Payments
Equity-settled share-based payments to employees aremeasured at the fair value of options at the grant date.
The fair value of options at the grant is expensed over
the respective vesting period in which all of the specified
vesting conditions are to be satisfied with a corresponding
increase in equity as “Employee Stock Options Account”.
In case of forfeiture of unvested option, portion of amountalready expensed is reversed. In a situation where thevested options are forfeited or expires unexercised, therelated balance standing to the credit of the “Employee
Stock Options Account” are transferred to the “Retained
Earnings”.
When the options are exercised, the Company issues newequity shares of the Company of ` 1/- each fully paid-up.
The proceeds received and the related balance standing
to credit of the Employee Stock Options Account are
credited to share capital (nominal value) and Securities
Premium Account.
Share appreciation rights which are cash settled, arerecognised as employee benefit expense over the relevant
service period. The liability is fair valued at each reporting
date and are presented as employee benefit obligationsin the consolidated balance sheet.

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Notes

forming part of the Consolidated Financial Statements
See Note 41 - Employee Share-Based Payments for further
details.
X.

Income Taxes
Income tax expense represents the sum of the tax
currently payable and deferred tax.

Current tax
The tax currently payable is based on taxable profit for
the year. Taxable profit differs from ‘profit before tax’ asreported in the Consolidated statement of profit and loss
because of items of income or expense that are taxable ordeductible in other years and items that are never taxable
or deductible. The current income tax charge is calculatedon the basis of the tax laws enacted or substantively
enacted at the balance sheet date in the countries where
the Group’s entities operate and generate taxable income
using tax rates that have been enacted or substantively
enacted by the end of the reporting period.

Deferred tax
Deferred tax is recognised on differences between
the carrying amounts of assets and liabilities in the
consolidated balance sheet and the corresponding tax
bases used in the computation of taxable profit. Where
the local currency is not the functional currency, deferred
tax is recognised on temporary difference arising fromexchange rate changes between the closing rate andthe historical purchase price of non-monetary assets
translated at the exchange rate at the date of purchase if
those non-monetary assets have tax consequences.
Deferred tax liabilities are generally recognised for all
taxable temporary differences.
Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that it isprobable that taxable profits will be available against
which those deductible temporary differences can beutilised. Such assets and liabilities are not recognised if
the temporary difference arises from initial recognition of
goodwill or from the initial recognition (other than in abusiness combination) of other assets and liabilities in atransaction that affects neither the taxable profit nor theaccounting profit.
Deferred tax liabilities are recognised for taxable
temporary differences associated with investments
in subsidiaries and associates, and interests in joint
arrangements, except where the Group is able tocontrol the reversal of the temporary difference and it isprobable that the temporary difference will not reversein the foreseeable future. Deferred tax assets arisingfrom deductible temporary differences associated withsuch investments and interests are only recognised tothe extent that it is probable that there will be sufficient312

HINDALCO INDUSTRIES LIMITED

taxable profits against which to utilise the benefits of thetemporary differences and they are expected to reversein the foreseeable future. Generally, the group is unable
to control the reversal of the temporary difference for
associates.

the Group companies which provides better prediction of
the resolution of uncertainty. Uncertain tax positions aremonitored and updated as and when new information
becomes available, typically upon examination or action
by the taxing authorities or through statute expiration andjudicial president.

The carrying amount of deferred tax assets is reviewed ateach balance sheet date and reduced to the extent that it
is no longer probable that sufficient taxable profits will beavailable to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the period in which theliability is settled or the asset realised, based on tax rates(and tax laws) that have been enacted or substantively
enacted by the balance sheet date. The measurementof deferred tax liabilities and assets reflects the tax
consequences that would follow from the manner in which
the Group expects, at the reporting date, to recover orsettle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there
is a legally enforceable right to set off when they relate
to income taxes levied by the same taxation authority.
Current tax assets and current tax liabilities are offset
where the Group has legally enforceable right and intends
to settle on a net basis, or to realise the asset and settle
the liability simultaneously.
Minimum Alternative Tax (MAT) is recognized as an
asset only when and to the extent there is convincing
evidence that the Group will pay normal income tax
during the specified period. In the year in which the MAT
credit becomes eligible to be recognized as an asset, thesaid asset is created by way of credit to the consolidated
statement of profit and loss and included in deferred
tax assets. The Group reviews the same at each balance
sheet date and writes down the carrying amount of MAT
entitlement to the extent there is no longer convincing
evidence to the effect that Group will pay normal income
tax during the specified period.

Current and deferred tax for the period
Current and deferred tax are recognised in the Consolidated
statement of profit and loss, except when they relate toitems that are recognised in other comprehensive income
or directly in equity, in which case, the current anddeferred tax are also recognised in other comprehensive
income or directly in equity, respectively. Where current
tax or deferred tax arises from the initial accounting fora business combination, the tax effect is included in theaccounting for the business combination.
The Group applies significant judgement in identifying
uncertainties over income tax treatments. Uncertain tax
positions are reflected in the overall measurement of tax
expense of respective group entities and are based on themost likely amount or the expected value arrived at byof the amount that the Group expects to be entitled
to for the transferred goods and services. If historicalresults have limited predictive value or the Group has
limited experience with similar types of incentives, theestimate is made in such a manner, which ensures that it
is highly probable that a significant reversal in the amountof cumulative revenue recognised will not occur. The
actual amounts may differ from these estimates and areaccounted for prospectively. No element of significant
financing is deemed present as the sales are made with acredit term, which is consistent with market practice. The
Group’s obligation to repair or replace faulty products
under the standard warranty terms is recognised as acost with a corresponding provision.

The Group considers when a particular amount payablefor interest and penalties on income taxes is determined
to be within the scope of Ind AS 37, it is presented as partof financing cost or other expenses, respectively unlesswhen there is an overall settlement with tax authority andthe interest and penalties cannot be identified separately
in which case it is determined to be part of income taxes
and accounted under Ind AS 12 Income Taxes.
See Note 9 - Income Taxes for further details.
Y.

For certain customer contracts, final prices are determinedbased on the underlying market index of commodity
prices at a future date, for example prices on the London
Metal Exchange Limited (LME) or London Bullion Markets
Association (LBMA). In such contracts, the Group records
revenue on a provisional basis considering current
market price when control is transferred to the customer.
At the end of each period, prior to final settlement
date, adjustments are made to the provisional saleprice based on movements in the underlying market
index of commodity prices up to the date of final
price determination. Such variable price movement isaccounted as other operating revenue.

Revenue Recognition
The Group derives revenue principally from sale ofhydrate, speciality alumina, aluminium and aluminium
value added products, di-ammonium phosphate, copper,
precious metals (gold & silver) and other materials.
The Group recognizes revenue when it satisfies a
performance obligation in accordance with the contract
with the customer. This is achieved when control of the
product has been transferred to the customer, whichis generally determined when legal title, physicalpossession, risk of obsolescence, loss and rewards ofownership pass to the customer and the Group has thepresent right to payment, all of which occurs at a point
in time upon shipment or delivery of the product. The
Group considers shipping and handling activities as costs
to fulfil the promise to transfer the related products andthe customer payments for shipping and handling costs
are recorded as a component of revenue.

Revenue from irrevocable bill and hold/ holding certificate
contracts is recognised when it is probable that delivery
will be made, goods have been identified and kept
separately, are ready for delivery in the present condition
and usual payment terms for such contracts applies. Under
these arrangements, revenue is recognised once legal
title has passed and all significant risks and rewards ofownership of the asset sold are transferred to the customer.

In situations where revenue is recognized on shipmentof goods, shipping and handling services are treatedas a distinct separate performance obligation and theGroup recognises revenue for such services when theperformance obligation is completed.
The Group considers the terms of the contract indetermining the transaction price. The transaction priceis based upon the amount the Group expects to beentitled to in exchange for transferring of promised goods
and services to the customer after deducting incentive
programs, including but not limited to discounts, volume
rebates etc. Transaction price excludes taxes and duties
collected on behalf of the government.
For incentives offered to customers, the Group makes
estimates related to customer performance and sales
volume to determine the total amounts earned and to
be recorded as deductions from “Revenue from contracts
with customers”. In making these estimates, the Groupconsiders historical results that have a predictive value

Export incentives and subsidies are recognized when there
is reasonable assurance that the Group will comply withthe conditions and the incentive will be received.
Claim on insurance companies, railway authorities andothers are accounted for on acceptance basis.
Revenue excludes any taxes and duties collected onbehalf of the government.
See Note 25 - Revenue from Operations for further details.
Z.

Contract Liability
Contract liability is recognised when a payment forcustomer is already received before a related performanceobligation is satisfied. If a customer pays consideration
before the Group transfers goods or services to thecustomer, a contract liability is recognised when thepayment is received.

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Notes

forming part of the Consolidated Financial Statements
As these are contracts that the Group expects, and has
the ability, to fulfil through delivery of a non-financial
item, these are presented as advance from customers
and are recognised as revenue as and when controlof respective commodities is transferred or service isprovided to the customers under the agreements. The
portion of the advance where either the Group does nothave a unilateral right to defer settlement beyond twelve
months or expects settlement within twelve months fromthe balance sheet date is classified as a current liability.

See Note 40 - Segment Information for further details.
AC. Exceptional Items
Exceptional items include income or expense that areconsidered to be part of ordinary activities, however areof such significance and nature that separate disclosure
enables the user of the financial statements to understandthe impact in a more meaningful manner. Exceptional
items are identified by virtue of their size, nature andincidence.

See Note 24 - Contract Liabilities for further details.

See Note 37 - Exceptional Income/ (Expenses) (Net) for
further details.

AA. Dividend and Interest Income
Dividend income from investments is recognised when theGroup’s right to receive payment has been established.

1C.

Interest income from a financial asset is recognised when
it is probable that the economic benefits will flow to
the Group and the amount of income can be measured
reliably. Interest income is accrued on a time basis, byreference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly
discounts estimated future cash receipts through the
expected life of the financial asset to that asset’s net
carrying amount on initial recognition.

		The estimated fair value of the Group’s financial
instruments is based on market prices and valuation
techniques. Valuations are made with the objective
to include relevant factors that market participants
would consider in setting a price, and to apply
accepted economic and financial methodologies
for the pricing of financial instruments. References
for less active markets are carefully reviewed toestablish relevant and comparable data.

See Note 26 - Other Income for further details.
AB. Segment Reporting
An operating segment is a component of the Group thatengages in business activities from which it may earnrevenues and incur expenses, whose operating results
are regularly reviewed by the Group’s Chief Operating
Decision Maker (“CODM”) to make decisions for which
discrete financial information is available. The Groupprepares its segment information in conformity with theaccounting policies adopted for preparing and presenting
the financial statements of the Group as a whole. The
CODM assesses the financial performance and positionof the Group and makes strategic decisions. Operating
segments are reported in a Manner consistent with theinternal reporting provided to the CODM.
Allocation of common costs:
Common allocable costs are allocated to each segment
according to the relative contribution of each segment to
the total common costs.
Inter-segment transfers:
Inter-segment revenue has been accounted for based on
the transaction price agreed to between segments which
is based on current market prices.
Unallocated items:
Revenue, expenses, assets and liabilities which relate to
the Group as a whole and not allocable to segments on
reasonable basis have been included under ‘unallocatedrevenue / expenses / assets / liabilities’.
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HINDALCO INDUSTRIES LIMITED

Measurement of fair valuea.

b.

Financial Instruments

Marketable and non-marketable Equity Securities

		Fair value for listed shares is based on quoted
market prices as of the reporting date. Fair value forunlisted shares is calculated based on commonly
accepted valuation techniques utilizing significant
unobservable data, primarily cash flow basedmodels.
c.

Derivatives

		Fair value of financial derivatives is estimated as
the present value of future cash flows, calculated
by reference to quoted price curves and exchange
rates as of the balance sheet date. Options are valued
using appropriate option pricing models and credit
spreads are applied where deemed to be significant.
d.

Embedded Derivatives

		Embedded derivatives that are separated from thehost contract are valued by comparing the forward
curve at contract inception to the forward curve as of
the balance sheet date. Changes in the present valueof the cash flows related to the embedded derivative
are recognized in the Consolidated Balance Sheetand in the Consolidated Statement of Profit and Loss.
1D. Critical accounting judgment and key sources of
estimation uncertainty
In preparing the financial statements in conformity
with accounting principles generally accepted inIndia, management is required to make estimates andassumptions that affect reported amounts of assets andliabilities and the disclosure of contingent liabilities as at
the date of the financial statements and the amounts ofrevenue and expenses during the reported period. Actual
results could differ from those estimates. Any revision tosuch estimates is recognised in the period in which thesame is determined.

changes in the Group’s planned use of the assets ora significant adverse change in the expected prices,
sales volumes or raw material cost. The identificationof CGUs involves judgment, including assessmentof where active markets exist, and the level ofinterdependency of cash inflows. CGU is usually theindividual plant, unless the asset or asset group is an
integral part of a value chain where no independent
prices for the intermediate products exist, a group ofplants is combined and managed to serve a common
market, or where circumstances otherwise indicate
significant interdependencies.

The following paragraphs explains areas that areconsidered more critical, involving a higher degree of
judgment and complexity.
(a)

Joint Operation

		The Group invest in certain consortiums which areaccounted for as joint operation. A joint operation
is a joint arrangement whereby the parties that havejoint control of the arrangement have rights to theassets, and obligations for the liabilities, relating to
the arrangement. Joint control is the contractuallyagreed sharing of control of an arrangement,which
exists only when decisions about the relevant
activities require unanimous consent of the parties
sharing control. When a group entity undertakes
its activities under joint operations, the Group as a
joint operator recognizes assets, liabilities, income
and expenses in relation to its interest in a joint
operation. (refer Note 48 C)(b)

In accordance with Ind-AS 36, certain intangible
assets are reviewed at least annually for impairment.
If a loss in value is indicated, the recoverable amountis estimated as the higher of the CGU’s fair value lesscost to sell, or its value in use. Directly observable
market prices rarely exist for the Group’s assets,
however, fair value may be estimated based onrecent transactions on comparable assets, internal
models used by the Group for transactions involving
the same type of assets or other relevant information.
Calculation of value in use is a discounted cash
flow calculation based on continued use of theassets in its present condition, excluding potential
exploitation of improvement or expansion potential.

		

Determination of the recoverable amount involves
management estimates on highly uncertain matters,such as commodity prices and their impact on markets
and prices for upgraded products, development indemand, inflation, operating expenses and tax andlegal environment. The Group uses internal businessplans, quoted market prices and the Group’s best
estimate of commodity prices, currency rates,
discount rates and other relevant information. A
detailed forecast is developed for a period of three
to five years with projections thereafter.

Impairment of Goodwill

		Goodwill represents the excess of the purchaseprice over the fair value of the identifiable net
assets of acquired companies. Goodwill is notamortized; instead, it is tested for impairment at least
annually. The recoverable amount is determinedbased on value in use or fair value less cost to sell
calculations which require the use of assumptions
as directly observable market prices are generally
not exist for the Group’s assets. However, fair value
may be estimated based on recent transactions oncomparable assets, internal models used by theGroup for transactions involving the same type of
assets or other relevant information. Calculation ofvalue in use is a discounted cash flow calculation
based on continued use of the assets in its present
condition, excluding potential exploitation of
improvement or expansion potential. (refer Note 4)(c)		Impairment of Non-Current Assets

		Ind AS 36 requires that the Group assesses conditions
that could cause an asset or a Cash Generating Unit
(CGU) to become impaired and to test recoverabilityof potentially impaired assets. These conditions
include changes resulting from market and economic
environment, including internal and external factors
such as the Group’s market capitalization, significant(d)Employee retirement plans

		The Group provides both defined benefit employee
retirement plans and defined contribution plans.
Measurement of pension and other superannuation
costs and obligations under such plans require
numerous assumptions and estimates that can havea significant impact on the recognized costs andobligation, such as future salary level, discount rate,
attrition rate and mortality.
		

The Group provides defined benefit plans to
its employees. The discount rate is based on
Government bond yield. Assumptions for salary
increase in the remaining service period for active
plan participants are based on expected salary
increase in India. Changes in these assumptions caninfluence the net asset or liability for the plan as wellas the pension cost. (refer Note 30B)
Integrated Annual Report 2021-22

315Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(e)Environmental liabilities and Asset Retirement
Obligation (ARO)		Estimation of environmental liabilities and ARO
require interpretation of scientific and legal data, in
addition to assumptions about probability and future
costs. (refer Note 22)
(f)

Taxes

		The Group calculates income tax expense based onreported income. Deferred income tax expense iscalculated based on the differences between the
carrying value of assets and liabilities for financial
reporting purposes and their respective tax basisthat are considered temporary in nature. Valuation ofdeferred tax assets is dependent on management’s
assessment of future recoverability of the deferred
tax benefit. Expected recoverability may result fromexpected taxable income in the future, plannedtransactions or planned tax optimizing measures.
Economic conditions may change and lead to adifferent conclusion regarding recoverability. (refer
Note 9B and 9C). For judgements related to adoptionof lower tax rate as per Section 115BBA of the Income
tax Act, refer note 9B(iv).
(g)

Extension and termination option in a Lease

		Extension and termination options are included inmany of the leases. In determining the lease term theManagement considers all facts and circumstancesthat create an economic incentive to exercise an
extension option, or not exercise a termination
option. This assessment is reviewed if a significant
event or a significant change in circumstances occurs
which affects this assessment and that is within thecontrol of the Group.
(h)Useful lives of depreciable/ amortisable assets(tangible and intangible)

		Management reviews its estimate of the useful livesof depreciable/ amortisable assets at each reporting
date, based on the expected utility of the assets.
Uncertainties in these estimates relate to technicaland economic obsolescence that may change theutility of certain software, IT equipment and otherplant and equipment.
(i)

HINDALCO INDUSTRIES LIMITED

Fair Value Measurements

		The Group applies valuation techniques to determine
the fair value of financial instruments (where active
market quotes are not available) and non-financial
assets. This involves developing estimates andassumptions consistent with the market participants
to price the instrument. The Group’s assumptions
are based on observable data as far as possible,
otherwise on the best information available.
Estimated fair values may vary from the actual pricesthat would be achieved in an arm’s length transaction
at the reporting date. (refer Note 45)(k)Contingent Assets and Liabilities, Provisions andUncertain Tax Positions

		There are various legal, direct and indirect
tax matters and other obligations including
environmental, mining, local and state levies,
income tax holiday, availing input tax creditsetc., which may impact the Group. Evaluationof uncertain liabilities and contingent liabilities
and assets arising out of above matters require
management judgment and assumptions, regarding
the probability of outflow or realization of economic
resources and the timing and amount, or range ofamounts, that may ultimately be determined. Suchestimates may vary from the ultimate outcome as aresult of differing interpretations of laws and facts,
or application of relevant judicial precedents. (refer
Note 9C, 22 and 43)(l)Inventory Measurementa)

On March 24, 2021, the Ministry of Corporate Affairs(“MCA”) through a notification, amended Schedule IIIof the Companies Act, 2013. The amendments revise
Division I, II and III of Schedule III and are applicablefrom April 1, 2021. Key amendments relating toDivision II which relate to companies whose financial
statements are required to comply with Companies(Indian Accounting Standards) Rules 2015 are:		Consolidated Balance Sheet:		•

Lease liabilities should be separately disclosed
under the head ‘financial liabilities’, duly
distinguished as current or non-current.

		•Certain additional disclosures in the statementof changes in equity such as changes in equity
share capital due to prior period errors andrestated balances at the beginning of thecurrent reporting period.

		•Specified format for disclosure of shareholdingof promoters.

		•Specified format for ageing schedule oftrade receivables, trade payables, capital
work-in-progress and intangible asset underdevelopment.

		•

If a company has not used funds for the specificpurpose for which it was borrowed from banks
and financial institutions, then disclosure ofdetails of where it has been used.

		•		Measurement of bulk inventory quantities (such ascoal, bauxite, copper concentrates, etc.) lying at yards
and work in progress of precious metals at smelter
and refinery is material, complex and involves
significant judgement and estimate resulting frommeasuring the surface area, dip measurement ofmaterials in tanks/silos, etc.
		

Recoverability of advances/ receivables

		At each balance sheet date, based on discussions
with the respective counter-parties and internal
assessment of their credit worthiness, themanagement assesses the recoverability ofoutstanding receivables and advances. Suchassessment requires significant management
judgement based on financial position of the counterparties, market information and other relevant
factors.
316(j)

The Group performs physical counts of above
inventory on a periodic basis using internal /external experts to perform volumetric surveys andassessments, basis which the estimate of quantity
for these inventories is determined. The variations
noted between book records and physical quantities
of above inventories are evaluated and appropriately
accounted in the books of accounts. (refer Note 11)

1E.

Recent Accounting Pronouncements(i)

New and amended standards adopted by the GroupThe Group has applied the following amendments to
Ind AS for the first time for their annual reporting period
commencing April 1, 2021:

Specific disclosure under ‘additional regulatory
requirement’ such as compliance with approved
schemes of arrangements, compliance withnumber of layers of companies, title deeds
of immovable property not held in name ofcompany, loans and advances to promoters,
directors, key managerial personnel (KMP) andrelated parties, details of benami property held,
certain specified ratios etc.

		

(ii)

Amended applicable from next Financial year
Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards underCompanies (Indian Accounting Standards) Rules as issued
from time to time. On March 23, 2022, MCA amended theCompanies (Indian Accounting Standards) Amendment
Rules, 2022, as below.
••

Extension of COVID-19 related concessions –amendments to Ind AS 116

c)

Interest rate benchmark reform – amendments to Ind
AS 109, Financial Instruments, Ind AS 107, Financial
Instruments: Disclosures, Ind AS 104, Insurance
Contracts and Ind AS 116, Leases.

Ind AS 37 – Provisions, Contingent Liabilities andContingent Assets

		The amendment specifies that the ‘cost of fulfilling’a contract comprises the ‘costs that relate directly tothe contract’. Costs that relate directly to a contract
can either be incremental costs of fulfilling that
contract (examples would be direct labour, materials)
or an allocation of other costs that relate directly
to fulfilling contracts (an example would be theallocation of the depreciation charge for an item ofproperty, plant and equipment used in fulfilling thecontract).
		Onerous Contracts (Cost of Fulfilling a Contract) - An
entity shall apply those amendments to contracts
for which it has not yet fulfilled all its obligations
at the beginning of the annual reporting period inwhich it first applies the amendments. The entity
shall not restate comparative information. Instead,the entity shall recognise the cumulative effect of
initially applying the amendments as an adjustment
to the opening balance of retained earnings or othercomponent of equity, as appropriate, at the date ofinitial application.

		The effective date for adoption of this amendment
is annual periods beginning on or after April 1, 2022,
although early adoption is permitted.

		

The Group has evaluated the amendment and theimpact is not expected to be material.

Additional disclosures relating to Corporate
Social Responsibility (CSR), undisclosed income
and crypto or virtual currency specified under
the head ‘additional information’ in the notes
forming part of the consolidated financial
statements.

b)

Ind AS 16–Property Plant and equipment

		The amendment clarifies that excess of net saleproceed so items produced over the cost of testing,
if any, shall not be recognised in the profit or loss
but deducted from the directly attributable costs
considered as part of cost of an item of property,
plant, and equipment. The effective date for adoptionof this amendment is annual periods beginning on
or after April 1, 2022. The Company has evaluatedthe amendment and there is no impact on its
consolidated financial statements.

		Consolidated Statement of profit and loss:		•The amendments listed above did not have any
impact on the amounts recognised in prior periods
and are not expected to significantly affect thecurrent or future periods.

Integrated Annual Report 2021-22317

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
2.

Property, Plant and Equipment (including Right of Use Assets) and Capital Work-in-Progress
Refer Note 1B(D) for accounting policy on Property, Plant and Equipment(` in Crore)

Particulars

Refer Note 1B(J) for accounting policy on Impairment of Non-Current Assets (excluding Goodwill)
Refer Note 1B(M) for accounting policy on Leases
Summary of Property, Plant and Equipment (including Right of Use Assets) given below:(` in Crore)

As at
31/03/2021

Property, Plant and Equipment - Cost

128,752

118,169

Less: Accumulated Depreciation and Impairment(54,205)(49,235)

Net carrying amount of Property, Plant and Equipment - (A)74,547

68,934Right of Use Assets - Cost

2,767

2,524

Less: Accumulated Depreciation and Impairment

(844)

(609)

Net carrying amount of Right of Use Assets - (B)

1,923

1,915

76,47070,8494,727

10,013

Property, Plant and Equipment (including Right of Use Assets) - (A + B)
Capital Work-in-Progress (CWIP)

A.

Property, Plant and Equipment(` in Crore)

Particulars

ORIGINAL COST

ACCUMULATED DEPRECIATION AND IMPAIRMENTNET CARRYINGAMOUNTAs at Addi- Addi- Disposal/ Exchange As at
April 01, tions tions Adjust- differences March2021
due to ments
31,
acqui2022
sition*As at Depreci- Impair- Disposal/ Exchange As at
April 01, ation
ment/
Adjust- differences March
2021(Reversal) ments
31,
2022

As at
As at
March March
31, 2022 31, 2021

ACCUMULATED DEPRECIATION AND IMPAIRMENTNET CARRYINGAMOUNTAs at Addi- Addi- Disposal/ Exchange As at
As at Depre- Impair- Disposal/ Exchange As at
April 01, tions tions Adjust- differences March April 01, ci-ation
ment/
Adjust- differences March2020
due to ments
31, 2021 2020
(Reversal) ments
31, 2021
acquisition

Refer Note 1B(T) for accounting policy on Borrowing cost

31/03/2022

ORIGINAL COST

As at
As at
March March
31, 2021 31, 2020

Freehold Land

2,738

72

276

7

45

3,138

164

4

-

3

(4)

167

2,971

2,574

Leasehold Improvements

430

3

9

(1)

(9)

432

176

27

-

(1)

(2)

200

232

254

Buildings

20,241

459

1,758

11

(50)

22,419

7,023

902

23

(6)

(13)

7,929

14,49013,218Plant and Machinery

82,034 2,306

4,621(1,003)44 88,002

35,050

4,172

48

(831)

(11) 38,428

49,574

46,984

Vehicles and Aircraft

721

35

1

(30)

(3)

724

415

56

-

(25)

(1)

445

279

306

Railway Wagons

336

-

-

-

-

336

140

19

-

-

-

159

177

196

Railway Sidings

490

7

-

255

-

752

193

28

-

101

-

322

430

297

Furniture and Fixtures

1,221

162

4

(67)

25

1,345

883

88

-

(67)

23

927

418

338

Office Equipment

727

126

206

(57)

19

1,021

585

110

-

(47)

10

658

363

142

108,938

3,170

6,875

(885)

71 118,169

44,629

5,406

71

(873)

2 49,235

68,93464,309Total* Refer Note 49 - Business Combination(a)Group’s share in jointly owned assets has been grouped together with the relevant class of property, plant and equipment
and Capital Work-in-Progress. The cost and net carrying amounts included in relevant class of assets are given below:(` in Crore)

31/03/2022

31/03/2021

Original Cost

Net Carrying
AmountOriginal Cost

Net Carrying
AmountFreehold Land

52

52

52

52

14,490

Buildings

54

40

50

37

53,161

49,574

Plant and Machinery

6

1

41

2

465

297

279

Furniture and Fixtures

27

22

14

10

-

179

177

177

Office Equipment

9

2

9

2

-

-

365

408

430

Capital Work-in-Progress

101

101

104

104

-

(75)

(9)

932

457

418

(b)

For assets pledged and Hypothecated against borrowings, refer Note 18A.

104

-

(20)

12

754

395

363

(c)

For impairment charge/(reversal), refer Note 34.

5,515

77

(1,111)

489 54,205

74,547

68,934(d)

For capital expenditures contracted but not incurred, refer to Note 43 (B).

(e)

CWIP comprise of various routine, non-routine projects and expansion spread over across the Group.

Freehold Land

3,138

132

42

(64)

5

3,253

167

4

-

-

6

177

3,076

2,971

Leasehold Improvements

432

37

-

-

12

481

200

33

-

-

7

240

241

232

Buildings

22,419

2,401

116

(226)

371

25,081

7,929

875

14

(172)

100

8,746

16,335

Plant and Machinery

88,002

7,318

252

(953)

889 95,508

38,428

4,290

63

(802)

368 42,347

Vehicles and Aircraft

724

93

1

(64)

8

762

445

57

-

(42)

5

Railway Wagons

336

20

-

-

-

356

159

20

-

-

Railway Sidings

752

21

-

-

-

773

322

43

-

Furniture and Fixtures

1,345

128

2

(81)

(5)

1,389

927

89

Office Equipment

1,021

134

3

(22)

13

1,149

658

Total

118,169 10,284

416(1,410)1,293 128,752

49,235318

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22319

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(f)

CWIP ageing schedule as at 31/03/2022:(` in Crore)

Particulars

Amount in CWIP for a period of

Projects in progress
Projects temporarily suspended
Total

1-2 years

2-3 years

More than
3 years

2,133

1,845

430

118

4,526

1

2

21

177

201

1,847

451

295

CWIP ageing schedule as at 31/03/2021:

Projects

Amount in CWIP for a period of

Utkal - Brownfield Project *Projects in progress

2-3 years

More than
3 years

3,298

3,396

434

2,730

9,858

4

13

22

116

155

3,302

3,409

456

2,846

10,013

Projects temporarily suspended
Total

Total

1-2 years

More than
3 years

1,587

-

-

-

1,587

-

56

-

-

56

Suspended Particulate Matter (SPM) reduction at 6
units of Electro Static Precipitators at Aditya plant#

-

18

-

-

18

Degreasing and Circle Blanking Line at Renukoot
Rolled Plant#

-

82

-

-

82

New 6” Extrusion Press at Renukoot Extrusion Plant#

-

47

-

-

47

Electro Static Precipitators for boilers of Renusagar
Power Plant#

-

21

-

-

21

Tertiary Water Recycling Unit at Dahej plant#

-

50

-

-

50

20

-

-

-

20

25

78

-

-

103

-

-

68

-

68

-

-

-

73

73

1,632

352

68

73

2,125

#

Other projects$,#
Slow Cooled Converter Slag And Part Fsf Slag Of 500
TPD#(ii) Project temporarily suspended(` in Crore)

To be completed in

2-3 years

Track Hopper at Coal Handling at Aditya plant#

Aditya Birla Centre

CWIP completion schedule for projects, whose completion is overdue or has exceeded its cost compared to its originalplan as at 31/03/2022 are given below:

Projects

Total

1-2 years(i) Project in Progress

4,727

Less than
1 yearTo be completed inLess than
1 year(` in Crore)

Particulars(g)(` in Crore)

Total

Less than
1 year

2,134

CWIP completion schedule for projects, whose completion is overdue or has exceeded its cost compared to its originalplan as at 31/03/2021 are given below:

Construction of New Office Building, Mumbai#

Total

Total

Less than
1 year

1-2 years

2-3 years

More than
3 years

Brazil plant expansion#

1,115

-

-

-

1,115

China plate expansion#

93

-

-

-

93

-

-

163

-

163

Installation of Desulphurization System at Hirakud
Power plant#

22

-

-

-

22

Items of Property, Plant and Equipment

Electro Static Precipitators for boilers of Renusagar
Power plant#

18

-

-

-

18

Freehold Land

Infinite$

Leasehold Improvements

7 - 90

Other projects

76

Buildings

3 - 60

Plant and Machinery

2 - 40

Vehicles and Aircraft2 - 25It represents the projects having budgeted capital expenditure amount below ` 10 crore.
* represents project with cost overrun#
represents delayed project$(i) Project in Progress

China cast house#

$,#

-

-

-

(h)

The Group has tested the carrying value of CWIP for impairment as at reporting date and recorded an impairment chargeof ` 19 crore (31/03/2021 ` 5 crore). refer Note 34.

(i)

Useful life of items of Property, Plant and Equipment is given below:

76(ii) Project temporarily suspended
Slow cooled converter slag and part Flash
Smelting Furnace slag at Dahej plant#
Construction of New Office Building, Mumbai
Total

#

69

-

-

69

-

-

-

73

73

1,324

-

163

-

1,487

Useful life
(Years)Railway Wagons

15

Railway Sidings

15

Furniture and Fixtures

3 - 10

Office Equipment

2 - 25

Freehold land used for mining is depreciated over 8 - 30 years.

$

(j)

320

HINDALCO INDUSTRIES LIMITEDThe Property, Plant and Equipment residual values and useful lives are reviewed, and adjusted if appropriate, at the endof each reporting period.

Integrated Annual Report 2021-22

321Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
B.

Right of Use Assets

C.

Lease Liabilities recognised against Right of Use Assets are as follows:

The Group leases many assets including Land, Buildings, Stadium Suite, Plant and Machinery, Vehicles, Aircraft, Boats,
Railway wagons, Railway sidings and furniture. These right of use assets are presented as part of ‘Property, plant andequipment’ under non-current assets on the face of the consolidated balance sheet.

As at
31/03/2022(` in Crore)

Particulars

ORIGINAL COST

ACCUMULATED DEPRECIATION AND IMPAIRMENTNET CARRYINGAMOUNTAs at Addi- Addi- Disposal/ Exchange As at
April 01, tions tions Adjust- differences March2021
due to ments
31,
acqui2022
sitionAs at Depre- Impair- Disposal/ Exchange As at
April 01, ci-ation
ment/
Adjust- differences March
2021(Reversal) ments
31,
2022

As at
As at
March March
31, 2022 31, 2021

3.

1,146

57

-

(40)

18

1,181

74

46

-

(22)

2

100

1,081

1,072

Buildings

535

112

-

(22)

17

642

165

109

-

(20)

8

262

380

370

Stadium Suite

41

-

-

-

2

43

9

4

-

-

(1)

12

31

32

Plant and Machinery

208

63

-

(69)

2

204

115

37

-

(45)

7

114

90

93

Vehicles and Aircraft

279

174

-

(30)

(2)

421

107

95

-

(9)

(2)

191

230

172

Boats

59

-

-

-

-

59

22

12

-

-

-

34

25

37

Railway Wagons

176

1

-

(39)

(3)

135

74

24

-

(25)

-

73

62

102

Railway Sidings

2

-

-

-

-

2

-

-

-

-

-

-

2

2

Waterfront

1

-

-

-

-

1

-

-

-

-

-

-

1

1

Furniture and Fixtures

36

-

-

(3)

-

33

22

7

-

(3)

-

26

7

14

Office Equipment

41

5

-

(2)

2

46

21

11

-

(1)

1

32

14

20

2,524

412

-

(205)

36

2,767

609

345

-

(125)

15

844

1,923

1,915

Total

(` in Crore)

Particulars

ORIGINAL COST

ACCUMULATED DEPRECIATION AND IMPAIRMENTNET CARRYINGAMOUNTAs at Addi- Addi- Disposal/ Exchange As at
As at Depreci- Impair- Disposal/ Exchange As at
April 01, tions tions Adjust- differences March April 01, ation
ment/
Adjust- differences March2020
due to ments
31, 2021 2020
(Reversal) ments
31, 2021
acquisition

As at
As at
March March
31, 2021 31, 2020

972

279

928

300

(` in Crore)

31/03/2021

Cost

34

34

Less: Accumulated Depreciation and Impairment

(13)

(13)

Net Carrying amount21

21(` in Crore)
Particulars

ORIGINAL COST
As at April
01, 2021

Additions

ACCUMULATED DEPRECIATION AND IMPAIRMENT

Disposal/Exchange
Adjustments differences

As at March
31, 2022

NET CARRYING AMOUNTAs at April
01, 2021

Depreciation

Impairment/(Reversal)

Disposal/
Adjustments

Exchangedifferences

As at March
31, 2022

As at March As at March
31, 2022
31, 2021

Freehold Land

1

-

-

-

1

-

-

-

-

-

-

1

1

Buildings

33

-

1

-

34

13

1

-

-

-

14

20

20

Total

34

-

1

-

35

13

1

-

-

-

14

21

21

(` in Crore)
Particulars

ORIGINAL COST

6

6

1,146

28

39

-

6

1

74

1,072

1,003

Buildings

425

227

69

(174)

(12)

535

80

129

-

(42)

(2)

165

370

345

Stadium Suite

21

21

-

-

(1)

41

3

2

-

4

-

9

32

18

Plant and Machinery

132

37

43

(13)

9

208

90

30

-

(5)

-

115

93

42

Freehold Land

1

-

-

Vehicles and Aircraft

197

131

10

(62)

3

279

69

87

-

(50)

1

107

172

128

Buildings

33

-

Boats

59

-

-

-

-

59

10

12

-

-

-

22

37

49

Total

34

-

Railway Wagons

171

-

-

-

5

176

35

38

-

-

1

74

102

136

Railway Sidings

21

-

-

(19)

-

2

9

-

-

(9)

-

-

2

12

Waterfront

1

-

-

-

-

1

-

-

-

-

-

-

1

1

Furniture and Fixtures

42

-

-

(7)

1

36

22

7

-

(7)

-

22

14

20

9

30

7

(4)

(1)

41

5

18

-

(2)

-

21

20

4

2,109

451

227

(273)

10

2,524

351

362

-

(105)

1

609

1,915

1,758

Disposal/ Adjustments for the lease hold land includes ` 21 crore (31/03/2021: ` 35 crore) transferred from right of use
assets to mining rights under intangible assets, refer Note 5.

HINDALCO INDUSTRIES LIMITED300

31/03/2022

98

322

Current

928

As at

5

(a)

Non-Current

279

Investment Property

1,031

Total

Current

972

Refer Note 1B(E) for accounting policy on Investment Property
Refer Note 1B(J) for accounting policy on Impairment of Non-Current Assets (excluding Goodwill)

Leasehold Land

Office Equipment

31/03/2021

Non-Current
Lease Liabilities against Right of Use Assets

Leasehold Land(` in Crore)

As at April
01, 2020(a)

Additions

Disposal/
Adjustments

ACCUMULATED DEPRECIATION AND IMPAIRMENT
Exchangedifferences

As at March
31, 2021

As at April
01, 2020

Depreciation

Impairment/(Reversal)

Disposal/
Adjustments

-

1

-

-

-

-

-

-

33

12

1

-

-

-

34

12

1

-

NET CARRYING AMOUNT

Exchangedifferences

As at March
31, 2021

As at March
31, 2021

As at March
31, 2020

-

-

1

1

-

-

13

20

21

-

-

13

21

22

Amount recognised in profit and loss for Investment Properties are as under:(` in Crore)

Year ended
31/03/2022

31/03/2021

Rental Income

66Direct operating expenses (including repair and maintenance) on properties generating rental
income-(1)Integrated Annual Report 2021-22

323

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
(b)

(c)

(d)

The Group has no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenanceand enhancements. There are no restrictions on the realisability of investment properties or the remittance of income andproceeds of disposal on the Group.
The fair value of the Group’s investment properties as at 31/03/2022 and 31/03/2021 have been arrived on the basis ofvaluation carried out at the respective dates by an external, independent valuer. Independent valuer who arrived at fairvalue as at 31/03/2022 is registered under Rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017. Howevervalues as at 31/03/2021 were done by an independent valuer who was not registered as per the above mentioned rule.
The fair value measurement for all the investments properties has been categorised as Level 2 fair value based on the
inputs to the valuation technique used. Considering the type of the assets, market approach (sales comparable method)
to estimate the fair value of the subject properties is adopted.
Fair value of investment properties and their fair value hierarchy given below:(` in Crore)

As at

Buildings(e)31/03/2021

Level 2

Level 2

4

3

100

96

Useful life of items of Investment Property is given below:

Goodwill acquired in business combinations has been allocated to following cash generating units (CGU) of Novelis,
Aluminium and Copper segment.
(` in Crore)

As at
31/03/2022

31/03/2021

Novelis - North America

10,94910,549Novelis - Europe

8,281

8,237

Novelis - South America

2,778

2,677

Novelis - Asia

1,780

1,744

Utkal Alumina International Limited (Utkal)

110

110

Minerals and Minerals Limited (M&M)**

Kuppam - (refer Note 49)

4

-

63

-

23,96523,317Novelis segment

Copper segment
Birla Copper Asoj Private Limited - (refer Note 49)

Items of Investment Property(f)Impairment testing of Goodwill

Aluminium segment

31/03/2022
Freehold land(a)Useful life
(Years)Freehold Land

Infinite

Buildings

60 Years* it represents Goodwill on acquisition of M&M ` 0.12 crore.

Certain Investment Properties are given as security towards Non-Convertible debentures of ` 6,000 crore (gross) (31/03/2021:` 6,000 crore), refer Note 18A (a).

4. Goodwill

Refer Note 1B(I) for accounting policy on Goodwill(` in Crore)

Goodwill is not amortized, instead, it is tested for impairment annually or more frequently if indicators of impairment
exist. The recoverable amount of a cash generating unit (CGU) is determined based on value-in-use or fair value less costto sell calculations which require the use of certain assumptions. The calculations use cash flow projections based on
financial budgets approved by management covering three to five years period depending upon segment/ CGU’s financial
budgeting process. Cash flow beyond these financial budget period are extrapolated using the estimated growth rates.
The key assumptions used in the estimation of the recoverable amount of CGU’s are set out below. The values assigned
to the key assumptions represent management’s assessment of future trends in the relevant industries and economic
environment and have been based on historical data from both external and internal sources.

As at
Cost

31/03/2022

31/03/2021

23,96523,317--23,96523,317

Less: Accumulated Impairment
Net Carrying amount

Novelis segment

Cost

Accumulated
Impairment

Net carrying
amountBalance as at April 01, 2020

20,098-20,098Addition through business combination

3,562

-

3,562

Exchange differences

(343)

-

(343)

Balance as at March 31, 2021

23,317-23,31767-

67

Addition through business combination - (refer Note 49)
Exchange differences
Balance as at March 31, 2022

324

HINDALCO INDUSTRIES LIMITED

581

-

581

23,965-23,965

Copper segment

31/03/2022

31/03/2021

31/03/2022

31/03/2021

31/03/2022

31/03/2021

Discount rate (i)

8.93%

8.82%

13.20%

13.20%

12.00%

NA

Terminal growth rate (ii)

2.25%

2.25%

4.50%

4.50%

2.00%

NA

5.5 to 10.5

7 to 13.5

-

-

-

NA

EV/EBITDA multiple in times (in Novelis segment)(` in Crore)

Aluminium segmenti.

For Novelis segment, the estimate of fair value (Level 3) less cost to sell for each cash generating unit is based on
average of discounted cash flows (the income approach) and guideline public company method which considers
enterprise Value (“EV”)/EBITDA multiples of comparable companies adjusted with control premium (the market
approach).

		

Under the income approach, the fair value of each cash generating unit is based on the present value of estimatedfuture cash flows. The income approach is dependent on a number of significant management assumptions including
markets and market share, sales volumes and prices, costs to produce, capital spending, working capital changes
and the discount rate. These projected cash flows are discounted to the present value using a weighted average
cost of capital (discount rate). The discount rate is commensurate with the risk inherent in the projected cash flows
and reflects the rate of return required by an investor in the current economic conditions. The projections are based

Integrated Annual Report 2021-22

325

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
on both past performance and the expectations of future performance and assumptions used in Novelis’s current
operating plan.
				The Group assessed the impact of change in key assumption related to Aluminium and Copper segments and did
not notice any material change in its recoverable value and thereby has concluded that the change will not cause
recoverable value fall below its carrying value.

ii.

The Group use’s specific revenue growth assumptions for each cash generating unit based on history and economic
conditions.

		

As a result of goodwill impairment test for the year ended 31/03/2022 and year ended 31/03/2021, no goodwill
impairment was identified as the recoverable value of the CGUs to whom goodwill was allocated exceeded theirrespective carrying amounts at all the periods reported above.

Cost

14,392

13,008Less: Accumulated Amortisation and Impairment(7,974)(6,926)Net Carrying amount

6,418

6,082

218

189

Intangible Assets under Development (IAUD)(` in Crore)

Particulars

ORIGINAL COST

ACCUMULATED AMORTISATION AND IMPAIRMENTNET CARRYINGAMOUNTAs at Addi- Addi- Disposal/ Exchange As at
April 01, tions tions Adjust- differences March2021
due to ments
31,
acqui2022
sition*As at AmorImpair- Disposal/ Exchange As at
April 01, ti-sation ment/
Adjust- differences March
2021(Reversal) ments
31,
2022

As at
As at
March March
31, 2022 31, 2021

803

87

-

(27)

1

864

406

89

-

(37)

1

459

405

397

Trade Name

1,138

-

-

-

42

1,180

777

82

-

-

30

889

291

361

Technology and Software

4,295

300

9

(4)

103

4,703

3,332

406

-

(4)

110

3,844

859

963

Customer related Intangible
Assets

6,275

4

15

-

205

6,499

2,411

295

-

-

76

2,782

3,717

3,864

-

-

6

-

-

6

-

-

-

-

-

-

6

-

Favourable Contracts

31/03/2021
To

From

To

Long-term growth rate (%)

Carbon Emission Rights
Total

Novelis - North America

2.25%

**

2.25%

**

Novelis - Europe

2.25%

**

2.25%

**

Novelis - South America

2.25%

**

2.25%

**

Novelis - Asia

2.25%

**

2.25%

**

Novelis - North America

8.93%

**

8.82%

**

Novelis - Europe

8.93%

**

8.82%

**

Novelis - South America

8.93%

**

8.82%

**

Novelis - Asia

8.93%

**

8.82%

**

Novelis - North America

5.5 - 7.5**

7 - 10.5**

Novelis - Europe

7.5 - 10.5**

8.5 - 13.5**

Novelis - South America

7.5 - 10.5**

7 - 10.5**

Novelis - Asia

5.5 - 7.5**

8.5 - 13.5**

EV/EBITDA multiple (in times)

HINDALCO INDUSTRIES LIMITED

497

833

-

(220)

30

1,140

-

-

-

-

-

-

1,140

497

13,008

1,224

30

(251)

381

14,392

6,926

872

-

(41)

217

7,974

6,418

6,082

(` in Crore)

Particulars

ORIGINAL COST
As at AddiApril 01, tions
2020

Post-tax discount rate (%)** Management believes that no reasonably possible change in any of the above key assumptions would cause the recoverable amount to fall
below the carrying value of any of the CGU having allocated goodwill.

326

31/03/2021

Mining Rights

From

iii.

As at
31/03/2022

Goodwill in the Consolidated Financial Statements primarily consists of goodwill in Novelis segment, wherein goodwill
has been allocated in four CGUs. The recoverable amount of each of these four CGUs would equal its carrying amount if
the key assumptions were to change as follows:

31/03/2022

ii.

(` in Crore)

Impact of possible changes in key assumptions

As at

i.

Refer Note 1B(F) for accounting policy on Intangible Assets (Other than goodwill)
Refer Note 1B(G) for accounting policy on Stripping cost
Refer Note 1B(J) for accounting policy on Impairment of Non-Current Assets (excluding Goodwill)
Refer Note 1B(T) for accounting policy on Borrowing cost

The Group uses the trailing and forward EV/EBITDA multiples. EV is defined as the total of equity capital plus debt
capital. The trailing multiples have been based on the EBITDA of the trailing twelve months preceding the valuation
date and the forward multiples have been based on the one-year and two-year forward consensus analyst EBITDA
estimates as on the valuation date and has been adjusted for control premium.

		For Aluminium and Copper segment, the recoverable amount is determined based on value in use and the projectedcash flows are discounted to the present value using pre-tax weighted average cost of capital (discount rate). The
discount rate commensurate with the risk inherent in the projected cash flows and reflects the rate of return requiredby an investor in the current economic conditions.

(b)

5. Other Intangible Assets and Intangible Assets under Development

ACCUMULATED AMORTISATION AND IMPAIRMENTNET CARRYINGAMOUNT

Addi- Disposal/ Exchange As at
As at AmorImpair- Disposal/ Exchange As attions Adjust- differences March April 01, ti-sation ment/(Re- Adjust- differences March
due
ments
31, 2021 2020
versal)ments
31, 2021
toacquisition

As at
As at
March March
31, 2021 31, 2020

Mining Rights

715

59

-

31

(2)

803

321

45

44

-

(4)

406

397

394

Trade Name

1,100

-

73

-

(35)

1,138

717

81

-

-

(21)

777

361

383

Technology and Software

3,747

123

401

-

24

4,295

2,953

449

-

-

(70)

3,332

963

794

Customer related Intangible
Assets

3,358

-

3,066

-

(149)

6,275

2,156

291

-

-

(36)

2,411

3,864

1,202

Carbon Emission Rights

235

268

18

(13)

(11)

497

-

-

-

-

-

-

497

235

Total

9,155

450

3,558

18

(173) 13,008

6,147

866

44

-

(131)

6,926

6,082

3,008

Integrated Annual Report 2021-22

327* Refer Note 49 - Business Combination

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(a)Addition in Mining Rights includes ` 57 crore (31/03/2021: ` 44 crore) and amortization expense includes ` 76 crore(31/03/2021: ` 20 crore) towards stripping activity assets.

(b)

The Carrying Amount of Intangible Asset under Development includes ` 8 crore (31/03/2021: ` 116 crore) pertaining toEnterprise Resource Planning System implementation in India. During the current year, the Company has capitalised its
Enterprise Resource Planning System.

(c)

Carbon emission credits are recognised at fair value upon receipt of government grants for operations in Europe and Asia,
which becomes their cost basis.

(d)Intangible asset under development (IAUD) ageing schedule as at 31/03/2022:

Particulars(` in Crore)

Amount in IAUD for a period of

Total

Less than
1 year

1-2 years

191

25

2

-

218

-

-

-

-

-

191

25

2

-

218

Projects in progress
Projects temporarily suspended
Total

2-3 years

More than
3 years

Total

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

QuotedFace value
per Unit(` in Crore)

Numbers as at
31/03/2022

Value as at

31/03/2021

31/03/2022

31/03/2021

National Aluminium Company Limited`5-

29,233,228-

158

Grasim Industries Limited`2

28,464,653

28,464,653

4,736

4,129

Ultra Tech Cement Limited` 10

1,258,515

1,258,515

831

848

Vodafone Idea Limited` 10

751,119,164

751,119,164

725

695

Aditya Birla Fashion and Retail Limited` 10

50,239,794

44,982,142

1,518

905

5,257,652

-

89

100

-

-

189

Gujarat State Fertilizers & Chemicals Limited

`2

500

500

-

-

-

Southern Petrochemical Industries Limited

` 10

100

100

-

-

Madras Fertilizer Limited

` 10

100

100

-

-

Rashtriya Chemicals and Fertilizers Limited

` 10

100

100

-

-

Aditya Birla Capital Limited` 10

39,850,514

39,850,514

429

475

8,239

7,299

50

36

-

-

-

-

-

103

50

36

-

189

(` in Crore)

To be completed in

Unquoted
Sai Wardha Power Generation Limited

Less than
1 year

1-2 years

2-3 years

More than
3 years

116

-

-

-

116

-

-

-

Total

(Fully paid-up unless otherwise stated)

-

103

No

6A. Investments, Non-Current

100Completion schedule for projects, whose completion is overdue or has exceeded its cost compared to its original plan as
at 31/03/2021 are given below:

Enterprise Resource Planning System (Project Ekayaan) *All Computer Software items in Intangible Assets (except of Mahan Aluminium, Aditya Aluminium, Kalwa Plant of theCompany) are also given as security towards Non-convertible debentures of ` 6,000 crore (as at 31/03/2021: ` 6,000
crore). Refer note - 18A (a).

` 10More than
3 years

Suspended
Project Details(Yes/No)(k)` 7.502-3 years

There are no projects, whose completion is overdue or has exceeded its cost compared to its original plan as at 31/03/2022.

Project name

The useful life of intangible assets are reviewed, and adjusted if appropriate, at the end of each reporting period.

Gujarat Narmada Valley Fertilizers & Chemicals Limited

1-2 years

Total

(j)

Aditya Birla Fashion and Retail Limited (Partly paid up) - (b)Less than
1 yearProjects temporarily suspended(e)(` in Crore)

Amount in IAUD for a period of

Projects in progress

For Guarantee, assets pledged and Hypothecated against borrowings, refer Note 18A.

Equity Instruments at FVTOCI- (a)Intangible asset under development (IAUD) ageing schedule as at 31/03/2021:
Particulars

(i)

` 10

2,830,352

2,830,352--

CHF 100

2,500

2,500

5

5

Bharuch-Dahej Railway Company Limited` 10

13,530,000

13,530,000

1015Birla Management Centre Services Limited

` 10

9,500

9,500

11

10

Birla International Limited* Project is presented due to time overrun. There is no cost overrun in above project.

Saras Micro Devices Inc. - (f)USD 13.33

100,000

-

10

-

(f)

The Group has tested the carrying value of Intangible Asset under Development for impairment as at reporting dates andno impairment charge has been identified on the same.

Addionics Limited

USD 9.25

162,246

-

12

-

48

30

(g)

For impairment charges or reversal on above Intangible assets, refer Note 34.

Debt Instruments at FVTOCI- (a)(h)

Useful life of items of Intangible Assets and their remaining useful lives are given below:

QuotedItems of Intangible Assets
Trade Name
Technology and Software
Customer related Intangible Assets
Mining Rights
Favourable Contracts

328

HINDALCO INDUSTRIES LIMITED

Useful life
(Years)Remaining
useful life (Years)

3 - 20Government Securities- (c)6.83% Government of India Bond, 2039

2,000,000

2,000,000

20

20

0 - 17

6.57% Government of India Bond, 2033

5,000,000

5,000,000

48

50

3 - 100-8

6.45% Government of India Bond, 2029

5,000,000

5,000,000

49

50

20 - 22.3

20

5.79% Government of India Bond, 2030

10,000,000

10,000,000

94

96

8 - 41

4 - 34

6.19% Government of India Bond, 2034

10,000,000

10,000,000

92

96

3

3

303

312

Integrated Annual Report 2021-22

329

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements

Debt Instruments at FVTPL- (a)Face value

Unquoted

Numbers as at

Value as at(a)per Unit

31/03/2022

31/03/2021

31/03/2022

31/03/2021

Aditya Birla Health Services Limited - 7% Redeemable, Non
Cumulative - (d)` 100

2,500,000

2,500,000

24

25

Birla Management Centre Services Limited - 9% Redeemable
Cumulative - (e)

` 10

-

300

-

-

24

25

Aggregate amount of Quoted and Unquoted Investments, Market value of Quoted investmentsare given below:

Preference Shares

Investments in Debt Schemes of Mutual Funds

(a)

4

2

4

377

371

8,616

7,670
3,014

Aggregate Market value of Quoted Investments

8,542

7,611

75

53

Aggregate Carrying value of Quoted and Unquoted Investments

3

3

8,616

7,670

During the previous year, the Group had subscribed to the Rights issue of Aditya Birla Fashion & Retail Limited at ` 110 per
share (Face value of ` 10 and Premium of ` 100). The Group had invested ` 43 crore (52,57,652 shares at ` 82.50 per share)in previous year and Final call of ` 14 crore (52,57,652 shares at ` 27.50 per share) has been paid during the current year.

(c)Includes ` 25 crore (31/03/2021: ` 242 crore) being placed as margin money with counter parties for derivative transactions.

(d)These are Non Cumulative, Non Convertible Preference Shares and Redeemable within 15 years from the allotment datei.e. March 29, 2019.

(e)

These preference shares are redeemed during current year.

(f)During the year ended March 31, 2022, Novelis sold 90% of equity ownership in Saras Micro Devices Inc. (‘Saras’). The
Group currently owns 100,000 shares amounting to ` 10 crore (USD 1.33 million) (Refer Note 51).

Face value

31/03/2022

31/03/2021

31/03/2022

31/03/2021`5-18,385,327-

99

Investment in Government Securities at FVTOCI - (b), (c)7273Investment in Debentures and Bonds at FVTPL - (b), (c)

152

164

5,228

9,081

5,452

9,417

Investments in Equity Instruments at FVTOCI330

HINDALCO INDUSTRIES LIMITED

-

5,452

9,417

Details of each of the category of investment mentioned above are available in separate financial statements of respective
Group entities.

7.

Loans

(Unsecured, Considered Good unless otherwise stated)(` in Crore)

As at
31/03/2022

31/03/2021

Non-Current

Current

Non-Current

Current

Loan to Related Parties - (a) - (refer Note 42)

36

-

-

41

Loan to Employees

13

7

10

6

Loan to Others

1

-

2

-

50

7

12

47

(a)

Disclosure on Loans or Advances in the nature of loans granted to promoters, directors, Key Managerial Personnel (KMPs)
and the related parties, that are repayable on demand are as follows:
Type of Borrower#

Amount of loan or advance in thenature of loan outstanding% to the total Loans andAdvances in the nature of loans

31/03/2022

31/03/2021

31/03/2022

31/03/2021

Promoters

-

-

-

-

Directors

-

-

-

-

KMPs

-

-

-

-

-

41

-

69%

Related Parties:
Aditya Birla Science & Technology Company Private
Limited *Quoted- (a)Investment in Debt Schemes of Mutual Funds at FVTPL - (b)-(c)

Value as at

per Unit

National Aluminium Company Limited (Fully paid-up)

9,417

Investment in Debt Schemes of Mutual Funds includes ` 320 crore (31/03/2021: Investment in Government Securities ` 25
crore) being placed as margin money with counter parties for derivative transactions.

(` in Crore)

Numbers as at

5,452

(b)

6B. Investments, Current

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

Aggregate Market value of Quoted Investments

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

2,990

Aggregate amount of impairment in value of investments

9,232

Aggregate Carrying value of Quoted and Unquoted Investments

Aggregate amount of Quoted and Unquoted Investments, Market value of Quoted Investmentsare given below:
Aggregate Cost of Quoted Investments
Aggregate Cost of Unquoted Investments

(b)

2

5,302

Aggregate Cost of Unquoted Investments

Unquoted
Mutual Funds

Aggregate cost of Quoted Investments* There is no outstanding loan as at 31/03/2022 which is repayable on demand.
During the current and previous year there are no Loans or Advances in the nature of loans granted to promoters, directors, KMPs andthe related parties, that are without specifying any terms or period of repayment.
#

Integrated Annual Report 2021-22

331

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
8A. Other Financial Assets, Non-Current

9.

(Unsecured, Considered Good unless otherwise stated)

Refer Note 1B(Q) for accounting policy on Financial InstrumentsA.
(` in Crore)

As at
31/03/2022

The Group’s income tax expenses and effective tax rate reconciliation given below:
(a)

381

819

Security Deposits - (a), (b)

132

152

Earmarked balances with Banks - (c)

148

142

Deposit with Others - (a)27

11

Deposit with Non-Banking Financial Company with initial maturity more than 12 months

60

-

(a)

Current Tax and Deferred Tax Expense
Amount recognised in Statement of Profit and Loss(` in Crore)

31/03/2021

Contingent Consideration (measured at fair value through profit and loss) - (refer Note 50)

Other Receivables - (d)Income Taxes

Refer Note 1B(X) for accounting policy on Income Taxes

38

23

786

1,147

Year ended

Current Tax Expenses for the year
Adjustments for current tax of prior periods (Net)

Deferred Income Tax Expenses - (ii)
MAT Credit Entitlement(b)Includes Security Deposit pledged of ` 4 crore (31/03/2021: ` 4 crore).

Income Tax Expenses related to Continuing operations(c)Earmarked balances includes balance in escrow accounts/ under lien with various authorities for the Company and deposits
for employee benefits related to Novelis.

Total Income Tax Expenses(d)Include ` 23 crore ($ 3 million) of promissory note entered into upon sale of Saras (refer Note 51).

(Unsecured, Considered Good unless otherwise stated)

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

31/03/2021

3,802

1,868

(1)

13

3,801

1,881

Deferred Tax

Refer Note 42 for balances with related parties.

8B. Other Financial Assets, Current

31/03/2022
Current Tax

Income Tax Expenses related to Discontinued Operations

1,473

1,291

99

(449)

1,572

842

5,373

2,723

7

(367)

5,380

2,356

		

i.

Applicable Indian Statutory Income Tax rate for the year ended March 31, 2022 and March 31, 2021 is 34.944%
and 34.944%, respectively.

		

ii.

MAT Credit entitlement includes ` 298 crore (31/03/2021: ` 165 crore) pertaining to Utkal Alumina International
Limited.

(b) Reconciliation of Effective Tax Rate(` in Crore)(` in Crore)

Year ended

As at

31/03/2022

31/03/2021

34.944%34.944%

6,678

2,040

Tax credits and other concessions

(341)

(173)

Income exempt from tax

(152)

(152)

Expenses not deductible in determining taxable profit

290

199

Tax on income (domestic and foreign) at rates different from statutory income tax rate

(404)

76

Adjustments pertaining to prior years

(26)

31

Previously unrecognised tax loss, tax credit or temporary difference of a prior period

(403)

-

49

32

31/03/2022

31/03/2021

Derivative matured pending realisation

622

306

Security Deposits - (a)5324Tax effect of adjustments to reconcile reported income tax expense:

Deposits with Non Banking Financial Company with initial maturity more than 3 months

915

150

Accrued Interest

57

34

Other Receivables - (a), (b)Unsecured, Considered Good
Unsecured, Considered Doubtful
Less : Allowance for Doubtful amount(a)

Refer Note 42 for balances with related parties.

(b)

Include ` 23 crore ($ 3 million) of consideration receivable on sale of Saras (Refer Note 51)

332

HINDALCO INDUSTRIES LIMITED

484

697

2

12

(2)

(12)

2,131

1,211

Indian Statutory Income Tax Rate (%)
Tax expenses using the Company’s domestic tax rate

Uncertain tax positions
Tax on Undistributed Earnings

(5)

(1)

Deferred tax not recognised on carry forward losses and benefits

(90)

169

Foreign exchange translation & remeasurement

(264)

72

OthersTotal Tax expenses recognised in the Consolidated Statement of Profit and Loss

48

63

5,380

2,356

Integrated Annual Report 2021-22333Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
B.

Deferred Tax Assets and Liabilities

i.

Deferred Tax Assets (Net)(` in Crore)

As at April
01, 2020

Additionsdue toAcquisition

1,276

2

(492)

(35)

2

(31)

722

PP&E Depreciation and Intangible Amortisation

77

-

27

-

-

(24)

80

Tax (losses)/benefits carry forwards, net #

235

3

131

-

-

(58)

311

Inventory valuation reserves

18

-

34

-

-

-

52

(` in Crore)

Cash Flow Hedges

3

-

(3)

-

-

-

-

As at
March 31,2022

Fair value measurements of financial instruments

16

-

-

(10)

-

-

6

Trade name

109

-

8

-

-

(3)

114

Others

38

-

(38)

-

-

-

-

1,772

5

(333)

(45)

2

(116)

1,285

(` in Crore)

As at
31/03/2022

31/03/2021

Deferred Tax Assets

1,691

1,285

Deferred Tax Liabilities

(484)

(361)

1,207

924

RecognisedinStatementof Profit andLoss

Recognisedin OCI

Recognised
directly in
EquityExchange
Differences

Reclass(DTL/DTA)

Recognised Exchange
directly in Differences
EquityAs atMarch 31,2021

Deferred Tax Assets
Provisions deductible for tax purposes in future period

Major components of Deferred Tax Assets (Net) arising on account of temporary timing differences and movement thereof
are given below:
As at April
01, 2021

Recognised Recognisedinin OCIStatementof Profit and
LossDeferred Tax Assets
Deferred Tax Liabilities

Provisions deductible for tax purposes in future
period

722

9

(131)

-

51

-

651

PP&E Depreciation and Intangible Amortisation

613

-

(288)

-

-

(17)

308

PP&E Depreciation and Intangible Amortisation

80

(23)

-

-

13

-

70

Inventory valuation reserves

146

-

(144)

-

-

(2)

-

Tax (losses)/benefits carry forwards, net #

311

365

-

-

36

-

712

Cash Flow Hedges

-

-

4

-

-

-

4

Inventory valuation reserves

52

57

-

-

-

-

109

Others

163

-

(104)

-

-

(10)

49

Fair value measurements of financial instruments

6

-

-

-

(1)

(5)

-

922

-

(532)

-

-

(29)

361

Trade name

114

30

-

-

5

-

149

850

5

199

(45)

2

(87)

924

-

-

-

-

-

-

-

1,285

438

(131)

-

104

(5)

1,691

308

100

-

-

12

-

420

Inventory valuation reserves

-

-

-

-

-

-

-

Cash Flow Hedges

4

-

7

-

-

-

11

Others

49

(4)

-

-

8

-

53

361

96

7

-

20

-

484

924

342

(138)

-

84

(5)

1,207

OthersDeferred Tax Liabilities
PP&E Depreciation and Intangible Amortisation

Net Deferred Tax Assets

334

HINDALCO INDUSTRIES LIMITEDNet Deferred Tax Assets# Tax Losses/Benefits carry forwards represents deferred income tax asset on unabsorbed depreciation carried forward undertax laws for which there is no expiry period.
ii.

Deferred Tax Liabilities (Net)(` in Crore)

As at
31/03/2022

31/03/2021

Deferred Tax Liabilities

15,59014,039Deferred Tax Assets(9,959)(9,509)

5,631

4,530

Integrated Annual Report 2021-22335

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
Major components of Deferred Tax Liabilities (Net) arising on account of temporary timing differences and movement therein
are given below:(` in Crore)

As atApril 01,2020(` in Crore)

As atApril 01,
2021

Additions Recognised
due toin Statement
Acquisition of Profit andLoss

Recognisedin OCI

Recognised
directly in
EquityExchange
Reclass
As at
Differences (DTL/DTA) March 31,
2022

Inventory Valuation Reserves
Exchange Differences on Foreign Operations

Tax (losses)/benefits carry forwards, net #

-

-

(44)

-

2,707

Retirement Benefits and Compensated Absences

104

-

(11)

(19)

-

-

-

74

218

-

12,321

Cash Flow Hedges

229

-

-

453

17

(8)

-

691

443

-

1,066

-

-

35

-

1,544

Provisions deductible for tax purposes in future period

1,600

920

459

(262)

-

(64)

-

2,653

MAT Credit entitlement

2,644

-

449

-

-

-

-

3,093

42

-

947

Fair value measurements of financial instruments

45

-

3

240

-

-

(5)

283

Deferred tax on Undistributed earnings

23

-

(5)

-

-

-

-

18

Cash Flow Hedges

3

-

-

-

-

(2)

-

1

406

(3)

46

-

-

27

-

476

14,039

20

976

240

-

320

(5)

15,590

2,707

-

(943)

-

-

62

-

1,826

Retirement Benefits and Compensated Absences

74

-

(13)

3

-

(1)

-

63

Cash Flow Hedges

691

-

-

1,436

(73)

11

-

2,065

Provisions deductible for tax purposes in future period

2,653

-

94

(161)

-

120

-

2,706

MAT Credit entitlement

3,093

-

(99)

-

-

-

-

2,994

-

-

2

-

-

-

-

2

291

-

14

(5)

-

3

-

303

9,509

-

(945)

1,273

(73)

195

-

9,959

4,530

20

1,921

(1,033)

73

125

(5)

5,631

Deferred Tax Assets

PP&E Depreciation and Intangible Amortisation(` in Crore)

As atApril 01,
2020

Additions Recognised
due toin Statement
Acquisition of Profit andLoss

Recognisedin OCI

Recognised
directly in
EquityExchange
Reclass
As at
Differences (DTL/DTA) March 31,
2021

PP&E Depreciation and Intangible Amortisation
OthersNet Deferred Tax Liabilities

-

-

-

-

-

-

-

-

266

-

22

-

-

3

-

291

7,353

2,074

6

172

17

(113)

-

9,509

4,613

(379)

702

(289)

(17)

(100)

-

4,530

# Tax Losses/Benefits carry forwards represents deferred income tax asset on unabsorbed depreciation carried forward undertax laws for which there is no expiry period.
Net deferred tax liability incudes ` 544 crore (31/03/2021: ` 239 crore) pertaining to Utkal Alumina International Limited including
MAT Credit entitlement of ` 954 crore (31/03/2021: ` 656 crore).
iii.

Unrecognised Deferred Taxes(` in Crore)

As at

(a)

Cumulative earnings in respect of certain Group entities for which the Group has not provided
deferred tax liability. The Group believe that the reversal of such temporary difference is notprobable in the foreseeable future.

(b)

The following Deferred Tax Assets have not been recognised at the reporting date as it is notprobable of recovery.

31/03/2022

31/03/2021

34,352

31,544Un-expiringi.

Unabsorbed Depreciation and other expenses not deductible for tax

780

797

ii.

Tax losses carry forwards

181

127

iii.

Unused tax credits

582

547

13,671

14,454

FY 2023-43

FY 2022-41

355

413

FY 2023-33

FY 2022-33

964

995

FY 2023-25

FY 2022-25

Unabsorbed Depreciation and other expenses not deductible for tax-

8

Period of expiry-

FY 2029

Expiring

Deferred Tax Liabilities
PP&E Depreciation and Intangible Amortisation

9,812

1,709

511

-

-

(172)

-

11,860Inventory Valuation Reserves

434

(44)

58

-

-

(5)

-

443

Exchange Differences on Foreign Operations

1,283

-

14

-

-

(38)

-

1,259

Fair value measurements of financial instruments

140

-

(92)

(3)

-

-

-

45

Deferred tax on Undistributed earnings

23

-

-

-

-

-

-

23

Cash Flow Hedges

117

-

-

(114)

-

-

-

3

Others

157

30

217

-

-

2

-

406

11,966

1,695

708

(117)

-

(213)

-

14,039HINDALCO INDUSTRIES LIMITED

(913)

-

-

336

1,154

-

-

Net Deferred Tax Liabilities

2,510

220

(354)

OthersExchange
Reclass
As at
Differences (DTL/DTA) March 31,
2021

23

-

Tax (losses)/benefits carry forwards, net #Recognised
directly in
Equity11,860

1,259

OthersRecognisedin OCI

Deferred Tax Assets

Deferred Tax Liabilities
PP&E Depreciation and Intangible Amortisation

Additions Recognised
due toin Statement
Acquisition of Profit and
Loss

i.

Carried forward Tax losses
Period of expiryii.

Unused tax credits
Period of expiry

iii.

Long term capital loss carry forward
Period of expiry

iv.

Integrated Annual Report 2021-22

337

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
The Group has not recognised deferred tax asset in respect of deductible temporary differences related to its equity
investments measured at FVTOCI as presently it is not probable that future taxable long term capital gain will be available
in the foreseeable future to recover such deferred tax assets.
Deferred tax assets and deferred tax liabilities have been offset wherever the Group has a legally enforceable right to
set-off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate
to income tax levied by the same taxation authority. The Group has not recognised deferred tax on temporary differences
relating to depreciation which originate andreverse during the tax holiday period.
iv.

v.

During current year, after considering all available evidence, the Group recognised deferred tax assets in Novelis Inc.,
Canada, resulting in a total benefit of ` 554 crore ($ 73 million). Out of this, ` 403 crore ($ 54 million) is related to forecasted
net operating losses utilization in future periods and is broken out separately in the reconciliation of effective tax rate.
Positive evidence for Novelis Inc. included a recent history of its three-year cumulative earnings as at March 31, 2022 andits forecasted taxable earnings, as a result of a decrease in its external interest expense, an increase in its interest income
from intercompany indebtedness, and patent fees through 2031. Negative evidence included its overall size and historyof recurring losses. After weighing the available evidence, the Group determined it is probable that taxable profits will beavailable in Novelis Inc. to utilize a portion of the Canadian net operating losses.

C.

i.

vi.

The Taxation Law (Amendments) Ordinance 2019 (‘the Ordinance’), in India provides an option to domestic companies
to pay income-tax at a lower rate of 22% (plus applicable surcharge and cess) instead of the normal rate of 30% (plusapplicable surcharge and cess) depending on the conditions specified in this behalf under section 115BBA of the Income
Tax Act, 1961. A domestic company can avail of the lower tax rate only if it opts for not availing of certain exemptions or
incentives specified in this behalf in the Ordinance. There is no time limit prescribed under the above to choose the optionof lower tax rate under section 115BAA, however, once chosen it is irreversible.
The Group has accumulated MAT credit and tax incentives to be availed/adjusted against future taxable profits. Based on
the projections prepared by the management, including its plan for future capital expenditure for capacity enhancement,
the Group has determined that exercising the option of lower rate will be beneficial only in the long term. Accordingly,
certain domestic companies in the Group have not exercised this option during the period and continue to recognize thetaxes on income for year ended March 31, 2022 as per the existing normal tax rate of 30% (plus applicable surcharge andcess).
The Parent Company and some of its Indian subsidiaries have assessed that its net deferred tax liability as at March 31,
2022 would get reversed within the period for which company is expected to continue to be in the existing tax regime.
The Group will review the above position at each year end.

338

HINDALCO INDUSTRIES LIMITED

31/03/2022

31/03/2021

8

4

186

207

194

211

2,120

2,126

2,120

2,126

Income Tax Assets (Net)
Non-Current Tax Assets (Net)
Current Tax Assets (Net)ii.

Income Tax Liabilities (Net)
Current Tax Liabilities

The Group is subject to tax assessments and ongoing proceedings, which are pending before various Tax Authorities.
Management periodically evaluates the positions taken in tax returns with respect to above matters, including unresolved
tax disputes, which involves interpretation of applicable tax regulations and judicial precedents. Current tax liability andtax asset balances are presented, after recognising as appropriate, provision for taxes payable and contingencies basis
Management’s assessment of outcome of such ongoing proceedings and amounts that may become payable to the tax
authorities. Considering the nature of such estimates and uncertainties involved, the amount of such provisions may change
upon final resolution of the matters with tax authorities. Also refer Note 1D.

As of March 31, 2022 and March 31, 2021 the total amount of unrecognized benefits in Novelis that, if recognized, would
affect the effective income tax rate in future periods based on anticipated settlement dates is ` 541 crore (USD 71 million)and ` 501 crore (USD 69 million), respectively.

As of March 31, 2022 and March 31, 2021, Novelis had ` 73 crore ($ 10 million) and ` 81 crore ($ 11 million) accrued,
respectively, for interest and penalties. For the years ended March 31, 2022 and 2021 Novelis recognized interest andpenalties expense(benefit) of ` (12) crore ($ -2 million) and interest and penalties expense of ` 16 crore (approximately$ 2 million).

(` in Crore)

As at

Tax Uncertainties:

Tax authorities continue to examine certain other tax filings of Novelis for financial years 2005 through 2019. As a result offurther settlement of audits, judicial decisions, the filing of amended tax returns or the expiration of statutes of limitations,
Novelis’ reserves for unrecognized tax benefits, as well as its reserves for interest and penalties, are not expected todecrease in the next 12 months. With few exceptions, tax returns for all jurisdictions for all tax years before 2005 are nolonger subject to examination by taxing authorities.

Income Tax Assets and Liabilities with Tax Authorities

10. Other Non-Current and Current Assets(Unsecured, Considered Good unless otherwise stated)(` in Crore)

As at
31/03/2022
Non-Current
Capital Advance

31/03/2021
Current

Non-Current

Current

547

-

302

-

Trade Advances and Deposits - (a)

10

1,256

120

653

Deposits with Government and Other Authorities

17

30

216

37

Prepaid Expenses

103

714

48

583

1,000

2362

839

1,400

22

108

12

108

OthersUnsecured, Considered Good - (b), (c)Unsecured, Considered Doubtful
Advance to Supplier for Goods and Services
OthersLess : Allowance for Doubtful amount

-

11

-

12

(22)

(119)

(12)

(120)

1,677

4,362

1,525

2,673

(a)

Refer Note 42 for balances with related parties.

(b)

It mainly includes unutilised tax credits and claims receivable from Indirect Tax Authorities.

(c)

It also includes ` 192 crore (Garepalma ` 74 crore and Kathautia ` 118 crore) [31/03/2021: ` 192 crore (Garepalma ` 74 crore
and Kathautia ` 118 crore)] towards appropriation of Performance Bank Guarantee by Nominated Authority. Refer note - 52
for further details.

Integrated Annual Report 2021-22

339

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(a)11. Inventories

Trade Receivables ageing schedule as at 31/03/2022:

Refer Note 1B(N) for accounting policy on Inventories(` in Crore)(` in Crore)

Particulars

Unbilled

Not Due

As at
31/03/2022

31/03/2021

In Hand

In Transit

Total

In Hand

In Transit

Total

Raw Materials

7,293

5,852

13,145

4,587

5335

9,922

Work-in-Progress

20,185249

20,434

13,318121

13,439Finished Goods

6,900

280

7,180

4,670

199

4,869

Stock-in-Trade

884

-

884

4

-

4

Stores and Spares

2,329

18

2,347

1,969

55

2,024

474

19

493

396

14

410

38,065

6,418

44,48324,944

5,724

30,668

Coal and Fuel(a)

For Inventories hypothecated against secured short-term borrowings, refer Note 18B.

(b)

The Group has extended fair value hedge accounting on its inventory which forms part of Work-in-Progress and Finished
Goods. Fair value hedges are mainly used to hedge the exposure to change in fair value of commodity price risks. The fairvalue adjustment remains part of the carrying value of inventory and is taken to profit and loss when the inventory is soldor consumed. Refer Note 46(B)(a)

(c)

(d)

Write down of inventories (net of reversal) to net realizable value amounted to ` 612 crore (31/03/2021: ` 377 crore). These
were recognized as expense and included in ‘Cost of Material Consumed’ and ‘Changes in Inventories of Finished Goods,
Work-in-Progress and Stock-in-Trade’ in the Consolidated Statement of Profit and Loss.
Inventories in hand include bulk material of coal, bauxite and copper concentrate lying at yards, mines, plants, precious
metals of gold and silver lying at smelter and refinery aggregating to ` 4,302 crore (31/03/2021: ` 3,179 crore).

(` in Crore)

As at
31/03/2022(i)

Secured, Considered Good

Non-Current

Current

Non-Current

Current

Secured, Considered Good

-

2,083

-

1,767

Secured, Credit Impaired

-

6

-

9

Unsecured, Considered Good-

19,011

53

11,202

Unsecured, Credit Impaired

-

60

-

58

-

21,16053

13,036

-

(84)

-

(77)

-

21,07653

12,959Trade Receivables:

Less: Loss Allowances - (c)340

HINDALCO INDUSTRIES LIMITED

Less than
6 months

6 months- 1 year1 - 2 years

2 - 3 years

More
than
3 years

-

2,023

53

5

-

-

-

2,081

-

-

-

2

2

1

1

6

34

18,685

170

26

24

2

6

18,947(ii) Undisputed – significant increase in credit risk

-

-

-

-

-

-

1

1

(iii) Undisputed – credit impaired

-

-

-

3

4

2

11

20

(iv) Disputed – considered good

5

-

31

-

29

3

-

68

(v) Disputed – significant increase in credit risk

-

-

-

-

-

-

21

21

(vi) Disputed – credit impaired

-

-

-

-

-

-

15

15

39

20,708

254

36

59

8

55

21,159(ii) Secured, Credit Impaired
Unsecured(i)

Undisputed – considered good

Less: Loss Allowances

(83)

Total

21,076

Trade Receivables ageing schedule as at 31/03/2021:(` in Crore)

Particulars

Unbilled

Not Due

Outstanding for following periods from due date of receipt

Total

Less than
6 months

6 months- 1 year1 - 2 years

2 - 3 years

More
than
3 years

Secured(i)

Secured, Considered Good

-

1,790

26

-

-

-

-

1,816

-

-

-

2

3

2

2

9

52

10,756

307

38

6

2

10

11,171(ii) Undisputed – significant increase in credit risk

-

-

-

-

-

-

-

-

(iii) Undisputed – credit impaired

-

-

-

3

4

2

11

20

(iv) Disputed – considered good

5

1

-

-

28

-

-

34

(v) Disputed – significant increase in credit risk

-

-

-

-

-

-

-

-

(vi) Disputed – credit impaired

-

-

-

-

-

1

33

34

57

12,547

333

43

41

7

56

13,084(ii) Secured, Credit Impaired

31/03/2021

Total

Secured12. Trade Receivables

Refer Note 1B(O) for accounting policy on Trade Receivable

Outstanding for following periods from due date of receipt

Unsecured(i)

Undisputed – considered good

Less: Loss Allowances

(72)

Total

13,012Integrated Annual Report 2021-22

341

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(b)

No trade or other receivable are due from directors or other officers of the Company either severally or jointly with anyother person. Further, no trade or other receivable are due from firms or private companies respectively in which any
director is a partner, or director or member.

(c)

For trade receivables hypothecated against borrowings, refer Note 18B.

(d)

Loss allowances includes provision of ` 24 crore (31/03/2021: ` 19 crore) made on account of expected credit loss on Trade
Receivables. Refer Note 46(A)(c)(e)

Refer Note 42 for balances with related parties.

15. Non-Current Assets or Disposal Group Classified as Held for Sale

Refer Note 1B(H) for accounting policy on Non-Current assets (or Disposal Groups) Held for Sale
As at

A.

13. Cash and Cash Equivalents

Refer Note 1B(S) for accounting policy on Cash and Cash Equivalents(` in Crore)

As at
31/03/2022

31/03/2021

Cash on Hand--

Cheques and Drafts on Hand - (a)148Current Accounts

6,630

5,514

Deposits with Initial Maturity of less than three months

4,333

2,048

662

769

11,6398,339(a)Includes ` Nil crore (31/03/2021: ` 3 crore) remittance in transit.

(b)There is no restriction with regard to cash and cash equivalents as the end of reporting year and prior years.

(` in Crore)

As at
31/03/2021

16

116

5,737

354

5,753

470

(a)

Includes unclaimed dividend of ` 5 crore (31/03/2021: ` 4 crore).

(b)

It also includes an amount of ` Nil (31/03/2021: ` 102 crore) deposited in an account restricted for repayment of an unsecured
term loan.

HINDALCO INDUSTRIES LIMITED

42

45

Assets of Disposal Group classified as held for sale - (c)

46

107

88

152

(b)

Details of Assets classified as held for sale by the Parent Company(c)Land and Building

1

1

Plant and Equipment

2

3

3

4

46

107

46

107

Details of Assets of Disposal Group classified as held for sale
Other Assets - (i)(i)

Represents assets of discontinued operation classified as held for sale. - (refer Note 50)(ii)

During the year the Group has recognised impairment loss of ` Nil crore (31/03/2021: ` 25 crore) on Assets which areheld for disposal. - (refer Note 34)

B.

Liability Associated with Disposal Group Classified as Held for Sale
Liabilities associated with Disposal Group classified as held for Sale - (a)31/03/2022
Balances with Banks

342

Non-Current Assets classified as held for sale - (a), (b)Assets or Disposal Group Classified as Held for Sale(iii) The fair value of the assets held for sale approximates the carrying value.

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

Deposits with Initial Maturity more than three months

31/03/2021

As at March 31, 2022 assets held for sale of ` 39 crore (March 31, 2021: ` 41 crore) relate to one of the hydroelectric power
generation facilities in South America, Brecha, land and building of Binh Duong plant in Vietnam. (refer Note 34 for reversalof impairment)

14. Bank Balances other than Cash and Cash Equivalents

Earmarked balances - (a), (b)31/03/2022(a)Balance with Banks

Short term Liquid Investments in Mutual Funds(` in Crore)

(a)

93

119

93

119

Represents liabilities of discontinued operation classified as held for sale. - (refer Note 50)

Integrated Annual Report 2021-22

343

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(e)

16. Equity Share Capital(` in Crore)

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. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in theensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders
are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion totheir shareholding.

As at31/03/2022

31/03/2021

250

250

5

5

255

255

225

225

225

225

225

225

-

Authorized
2,500,000,000 (as at 31/03/2021 : 2,500,000,000) Equity Shares of ` 1/- each
25,000,000 (31/03/2021: 25,000,000) Redeemable Cumulative Preference Shares of ` 2/- eachRights, preferences and restrictions attached to Equity Shares:(f)

Details of shareholders holding more than 5% Equity Shares in the Company on reporting date:
As at

Issued2,247,726,370 (as at 31/03/2021: 2,247,237,893) Equity Shares of ` 1/- each - (a)31/03/2022
Numbers of
Shares held

Subscribed and Paid-up
2,247,718,973 (as at 31/03/2021: 2,247,230,496 ) Equity Shares of ` 1/- each fully paid-up
Less: Face value of 546,249 (31/03/2021: 546,249) Equity Shares forfeited
Add: Forfeited Shares (Amount originally Paid-up)

7,064,997 (31/03/2021: 5,824,965) Equity Shares held as Treasury Shares by ESOP Trust - (c)349,963,487

15.58%-

Birla Group Holdings Private Limited

228,292,308

10.16%

228,292,308

10.16%

Life Insurance Corporation of India and its Associates

189,588,459

8.44%

203,135,624

9.04%

Morgan Guaranty Trust Company of New York98,270,986

4.37%

151,010,943

6.72%

-

-

225

225

(2)

(2)

(1)

(1)

222

222

(b)

Treasury shares include shares held by Trident Trust which represents 16,316,130 equity shares (31/03/2021: 16,316,130 Equity
Shares) of ` 1/- each fully paid-up of the Company issued, pursuant to a Scheme of Arrangements approved by the Hon’ble
High Courts of Mumbai and of Allahabad, vide their Orders dated October 31, 2002, and November 18, 2002, respectively,
to the Trident Trust, created wholly for the benefit of the Company and is being managed by trustees appointed by it. The
tenure of the Trust is up to January 23, 2024.
Treasury shares include shares held by Hindalco Employee Welfare Trust (ESOP Trust) which represents 7,064,997 equity
shares (31/03/2021: 5,824,965 Equity Shares) of ` 1/- each fully paid up of the Company. The Trust buys shares of theCompany from the market, for giving shares to employees pursuant to the Employees Stock Option Scheme, 2018. - (refer
Note 17(A)(ix))*Percentage have been calculated on the basis of total number of shares outstanding before adjusting shares held byTrident Trust and ESOP Trust. Refer footnote (b) and (c) above.
(g)

344

Percentage of
Holding *on 31/03/2022

No. of Sharesas at 31/03/2021

Percentage of
Holding *on 31/03/2021% Changeduring the Year901,635

0.04%

901,635

0.04%-

Birla Group Holdings Private Limited

228,292,308

10.16%

228,292,308

10.16%-

Total

229,193,943$

229,193,943

Promoter here means promoter as defined in Section 2(69) of the Companies Act, 2013.

*Percentage have been calculated on the basis of total number of shares outstanding before adjusting shares held byTrident Trust and ESOP Trust. Refer footnote (b) and (c) above.
(h)

Shares reserved for issue under options:
The Company has reserved equity shares for issue under the Employee Stock Option Schemes. (Refer Note 41 for detailsof Employee Stock Option Scheme).

(i)31/03/2021

Numbers` in Crore

Numbers` in Crore

Equity Shares outstanding at the beginning of the year

2,224,543,152

222

2,224,020,885

222

Equity Shares allotted pursuant to exercise of Employee
Stock Option Scheme (ESOS)

488,477-

461,560-

Equity shares purchased by Hindalco Employee Welfare Trustfrom market pursuant to ESOS

(2,119,000)

-

-

-

Equity shares allotted pursuant to exercise of ESOS throughHindalco Employee Welfare Trust

878,968-

60,707-2,223,791,597

222

2,224,543,152

222

HINDALCO INDUSTRIES LIMITED

No. ofShares as at
31/03/2022

Kumar Mangalam Birla

As atEquity Shares outstanding at the end of the year

Shares held by promoters at the end of the year and Movement:
Promoter’s Name$

Reconciliation of shares outstanding at the beginning and at the end of the reporting period:
31/03/2022

Percentage of
Holding *15.58%

Issued Equity Share Capital as at 31/03/2022 includes 7,397 Equity Shares (31/03/2021: 7,397) of ` 1/- each issued on Rights
basis kept in abeyance due to legal case pending.

(d)Numbers of
Shares held

350,088,487

(a)

(c)

Percentage of
Holding *IGH Holdings Private Limited

Less: Treasury Shares
16,316,130 (31/03/2021: 16,316,130) Equity Shares held as Treasury Shares - (b)31/03/2021(j)

The Company during the preceding 5 years:i.

Has not allotted shares pursuant to contracts without payment received in cash.

ii.

Has not issued shares by way of bonus shares.

iii.

Has not bought back any shares.

The Board of Directors of the Company has recommended dividend of ` 4 per share aggregating to ` 899 crore for theyear ended March 31, 2022 which has not been recognised in the Consolidated Financial Statements.

Integrated Annual Report 2021-22345

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
17. Other Equity

Bombay to deal with various costs associated with its organic and inorganic growth plan. Pursuant to this, a separate
reserve account titled as Business Reconstruction Reserve (“BRR”) was created during the year 2008-09 by transferringbalance standing to the credit of Securities Premium Account of the Company for adjustment of certain expenses asprescribed in the Scheme.

(` in Crore)

As at
31/03/2022

31/03/2021

Share Application Money pending Allotment--

Equity Component of Other Financial Instruments

4

4

Reserve and Surplus
Capital Reserve

147

147

Capital Redemption Reserve

104

104

Business Reconstruction Reserve

5,799

5,799

Securities Premium

8,234

8,225

Debenture Redemption Reserve

1,500

1,350

Employees Stock Options

75

54

(199)

(129)

Special Reserve

20

20

General Reserve

21,37021,370Retained Earnings

36,81022,77773,86059,717

5,334

4,673

Treasury Shares held by ESOP Trust

Other Reserves
Gain/ (Loss) on Equity Instruments FVTOCI
Gain/ (Loss) on Debt Instruments FVTOCI
Effective portion of Cash Flow Hedge
Cost of Hedging Reserve
Foreign Currency Translation Reserve(5)

1(4,894)(1,246)

(39)

10

3,709

3,152

4,105

6,590

77,96966,311(A) Brief description of items of Other Equity are given below:(i)Share Application Money Pending Allotment:

		Share application money pending allotment represents amount received from employees who has exercised Employee
Stock Option Scheme (ESOS) for which shares are pending allotment as on balance sheet date.
(ii)

Equity Component of Other Financial Instruments:

		It represents fair valuation gain of inter-corporate deposits taken in earlier years by Associate entities on transition
to Ind AS.
(iii) Capital Reserve:
		The Group has created capital reserve pursuant to past mergers and acquisitions.
(iv) Capital Redemption Reserve:
		The Group has created capital redemption reserve as per the requirement of the Companies Act.
(v)

Business Reconstruction Reserve

		The Company had formulated a scheme of financial restructuring under sections 391 to 394 of the Companies Act
1956 (“the Scheme”) between the Company and its equity shareholders approved by the High Court of judicature of346

HINDALCO INDUSTRIES LIMITED(vi) Securities Premium:
		Securities premium reserve is used to record the premium on issue of shares. The reserve is utilized in accordancewith the provision of the Act.
(vii) Debenture Redemption Reserve:
		The Group is required to create a debenture redemption reserve out of the profits which is available for payment ofdividend, for the purpose of redemption of debentures.
(viii) Employees Stock Options:
		The employee stock option account is used to recognize the grant date fair value of options issued to employees
under stock option schemes.
(ix) Treasury Shares held by ESOP Trust
		The Company has created a trust, namely “Hindalco Employee Welfare Trust”(ESOP Trust) for providing share-based
payments to its employees (including its Subsidiaries’ employees). The Company uses this Trust as a vehicle for
distributing shares to employees covered under Scheme. The Trust buys shares of the Company from the market, forgiving shares to employees under the Employees Stock Option Scheme, 2018.
		(x)

Shares held by the Trust are treated as Treasury shares. Equity instruments that are reacquired (treasury shares) arerecognised at cost and deducted from equity. No gain or loss is recognised in the Consolidated Statement of Profit
and Loss on purchase, sale, issue or cancellation of Equity instruments. Share options whenever exercised, would be
utilised from these treasury shares. Refer Note 41
Special Reserve

		Certain subsidiaries of the Group are registered as non-banking financial company and as per requirement of Section
45-IC of the Reserve Bank of India Act, 1934 every non-banking financial company shall create a reserve fund andtransfer therein a sum not less than twenty per cent of its net profit every year as disclosed in the profit and loss
account and before any dividend is declared.
(xi) General Reserve
		The Group has created this reserve by transferring certain amount out of the profit at the time of distribution ofdividend in the past.
(xii) Retained Earnings
		Amount of retained earnings represents accumulated profit and losses of the Group as on reporting date. Suchprofits and losses are after adjustment of payment of dividend, transfer to any reserves as statutorily required andadjustment for realised gain/loss on derecognition of equity instruments measured at FVTOCI. Actuarial Gain/ Lossarising out of Actuarial valuation is immediately transferred to Retained Earnings.
(xiii) Other Reserve		a)Gain/(Loss) on equity and debt instruments accounted as FVTOCI

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

Integrated Annual Report 2021-22347

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
		b)Effective portion of Cash Flow Hedge(a)Debentures comprise of following:(` in Crore)

			The Group uses hedging instruments as part of its risk management policy for commodity and foreign currency
risk as described in Note 46. The Cash Flow hedging reserve is used to recognise the effective portion of gainor loss on designated hedging relationship. (Refer Note 46 (E) and 46 (F) (i)).
		c)Cost of Hedging Reserve			The Group designates the spot component of cross currency interest rate swap as hedging instruments in fairvalue hedge relationship and cash flow hedge relationship. The Group defers changes in the forward element ofcross currency interest rate swap in the cost of hedging reserve. For fair value hedge forward points at inception
is amortized on a straight line basis from OCI based on the remaining life of trade. For cash flow hedge thedeferred cost of hedging are included in the initial cost of the related hedged items when it is recognized orreclassified to the Consolidated Statement of Profit and Loss when the hedged item effects the Consolidated
Statement of Profit and Loss. The Group also designates the intrinsic value of the option contracts whereas thetime value of option contracts is included in the cost of hedging reserve. (Refer Note 46 (E) and 46 (F) (ii)).
		d)

As at
31/03/2022
Gross Amount

Carrying Value

Gross Amount

Carrying Value

RedemptionDate

30,0009.55% Redeemable Non
Convertible Debentures of` 10 lakhs each

3,000

3,000

3,000

2,999

25/04/2022

15,0009.55% Redeemable Non
Convertible Debentures of` 10 lakhs each

1,500

1,500

1,500

1,499

27/06/2022

15,0009.60% Redeemable Non
Convertible Debentures of` 10 lakhs each

1,500

1,499

1,500

1,499

02/08/2022

6,000

5,999

6,000

5,997

Foreign Currency Translation Reserve

			Foreign Currency Translation reserve includes all resulting exchange differences arising from (a) translating theassets and liabilities of the Group’s foreign operations into Indian Rupees using exchange rates prevailing at
the end of each reporting period and (b) translating income and expense items of the foreign operations at the
average exchange rates for the period.

31/03/2021

All the above Debentures are secured by all the movable items of Property, Plant and Equipment, both present and future(except movable assets of Mahan Aluminium plant, Aditya Aluminium plant, Kalwa plant and Current Assets) and certain
immovable properties of the Parent. - (refer Note 2A)(b) Secured Rupee Term Loans from Banks comprise of following:(B) Movement of each item of other equity is presented in Consolidated Statement of Changes in Equity (SOCE).

(` in Crore)

As at

18A. Borrowings, Non-Current

31/03/2022

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

Particulars

Footnote

As at
31/03/2022
Non-Current
Portion31/03/2021

Current
Maturities

Total

Non-Current
PortionCurrent
Maturities

Total

31/03/2021

Gross
AmountCarrying
Value

Gross
AmountCarrying
Value

Redemption
Date

Axis Bank - (Repo Rate + 275 bps )

(i)

619

602

619

610

31-03-2030

State Bank of India - (MCLR 3 Month + 10 bps)

(i)

2,239

2,216

2,239

2,227

31-03-2030

ICICI Bank - (Repo Rate + 275 bps *)

(i)

76

75

84

84

31-03-2030

SecuredState Bank of India - (MCLR 3 Month + 10 bps)

(ii)

4,672

4,665

4,672

4,657

01-09-2030

DebenturesPNB Bank - (MCLR 1 Month + 5 bps )

(ii)

256

255

256

254

01-09-2030

Axis Bank - (Repo Rate + 275 bps )

(ii)

1,371

1,363

1,371

1,352

01-09-2030

State Bank of India - (MCLR 3 Month + 15 bps)

(i)

2,500

2,500

-

-

31-12-2031

Non Convertible Debentures-(a)

-

5,999

5,999

5,997

-

5,997

Term Loans:
From Banks
Rupee Term Loans - (b)14,227

14

14,241

11,731

8

11,739Axis Bank - (Policy Repo Rate+275 bps/ SBI 3M
MCLR+10 bps/ Axis Bank 1M MCLR)

(iii)

635

631

635

626

30-09-2030

Foreign Currency Term Loans - (c )

9,274

98

9,372

14,111916

15,027

State Bank of India - (MCLR 3 Month + 10 bps)

(iii)

1,789

1,784

1,789

1,779

30-09-2030

23,501

6,111

29,612

31,839924

32,763

State Bank of India - (MCLR 3 Month + 15 bps)

(iii)

150

150

150

150

30-09-2030

14,307

14,241

11,815

11,73927,222-

27,222

26,581-

26,581

Unsecured
Senior Notes - (d)Term Loans:

Definition of abbreviation used

From Banks

348*Benchmark changed w.e.f. February 2022. Previous benchmark was T-bill.

Foreign Currency Term Loans - (e)

905

48

953

541

22

563

(i)

100 basis points (bps) is equal to 1%

Deferred Payment Liabilities - (f)

7

18

25

24

18

42

(ii)

Repo rate is the rate at which RBI lends funds to commercial banks

28,13466

28,20027,14640

27,186(iii) Marginal Cost of funds based Lending Rate (MCLR) is a tenor-linked internal benchmark rate of respective bank

51,635

6,177

57,81258,985964

59,949(iv) Treasury Bill (T-bill) means the rate of interest published by the Financial Benchmarks India Pvt. Ltd. (“FBIL”).

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22349

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
(i)

		

(ii)

Rupee Term Loans of Mahan Unit: The term loans from banks of ` 2,934 crore (carrying amount: ` 2,893 crore) aresecured by a first ranking charge/ mortgage/ security interest in respect of all the moveable Property, Plant andEquipment andand all the immoveable properties of Mahan Aluminium plant, both present and future. ` 2,858 crore(carrying value: ` 2,818 crore) is to be repaid in 16 quarterly instalments commencing from June 2026. ` 76 crore(carrying value: ` 75 crore) is to be repaid in 32 quarterly instalments as per original repayment schedule effective
June 2020.
The term loan of ` 2,500 crore (carrying amount: ` 2,500 crore) is secured by a first ranking charge/ mortgage/security
interest in respect of all the moveable and immovable items of Property, Plant and Equipment of Mahan Aluminium
plant, both present and future. ` 2,500 crore (carrying amount: ` 2,500 crore) is to be repaid in 34 quarterly instalmentscommencing from September 2023.
Rupee Term Loans of Aditya Unit: The term loans from banks of ` 6,299 crore (carrying value: ` 6,283 crore) is secured
by a first ranking charge/ mortgage/security interest in respect of its all the moveable and immovable Property, Plant
and Equipment of Aditya Aluminium Project both present and future. ` 6,299 crore is to be repaid in 26 quarterly
instalments commencing from May 2024.

(iii) The term loan from banks in Group’s subsidiary Utkal Alumina International Limited (Utkal) of ` 2,574 crore (carrying
value ` 2,565 crore), is secured by (a) first ranking pari-passu mortgage/ Security Interest in respect of all of its
immovable properties (excluding the forest land and land surrendered for rehabilitation and resettlement colony)(b) first ranking charge on movable assets (including movable machinery, machinery spares, tools and accessories)
both present and future, pertaining to the project (c) second charge on the current assets of Utkal (excluding cash
and cash equivalents and investments) both present and future.
		

		
(c)

This includes term loans of ` 2,424 crore (carrying value ` 2,415 crore), are repayable in 60 quarterly instalments
as per the agreed repayment schedule commenced from December 31, 2015. During the year ended March 31, 2018,
Utkal has prepaid all instalments of the loan due up to June & September 30, 2025 to respective banks. The balance
principal would be paid as per remaining schedule in quarterly instalments up to September 30, 2030.
The term loans of ` 150 crore (carrying value ` 150 crore), is repayable in 34 structured quarterly instalments startingfrom 18th month from the date of first drawdown.

Secured Foreign Currency Term Loans from Banks comprise of following:i.

Foreign currency term loan from Bank of Tokyo Mitsubishi (BTMU)		Foreign currency term loan pertained to loan from Bank of Tokyo Mitsubishi (BTMU) of $ 40 million (gross ` 293 crore,
carrying value ` 291 crore) and $ 22.79 million (gross ` 167 crore, carrying value ` 166 crore). BTMU loan was secured
by a pari-passu first charge on all movable Property, Plant and Equipment of Mahan Aluminium plant, both present
and future. The loans were to be repaid in a single instalment at the end of the tenure. The Group has prepaid boththe loans in April 2021.
ii.
		

Floating rate Term Loan facility
2017 Term Loans:

		In January 2017, Novelis borrowed ` 13,167 crore ($ 1.8 billion) of term loans (the “2017 Term Loans”) under its Term
Loan Facility. The 2017 Term Loans mature on June 2, 2022 and are subject to 0.25% quarterly amortization payments.
The existing loans under the Term Loan Facility accrue interest at LIBOR plus 1.85%
		During previous year Novelis made ` 8,974 crore ($ 1.1 billion) in principal payments beyond its scheduled quarterly
amortization payments on its 2017 Term Loans using the proceeds from the issuance of the 2021 Term Loans and the2029 Senior Notes, as defined below.

		

During current year, Novelis has made ` 4,668 crore ($ 615 million) in principal payments beyond its scheduled quarterly
amortization payments on its 2017 Term Loans, a portion of which was paid using cash on hand, the proceeds of ourshort-term loan due November 30, 2022 Novelis entered into in January 2022, and the April 2021 proceeds from its

350

HINDALCO INDUSTRIES LIMITED2021 Term Loans, as defined below. As a result of such payments, the Group has recorded a loss on extinguishmentof debt of ` 18 crore ($ 2.3 million) during current year. As of March 31, 2022, the 2017 Term Loans have been fully
repaid.
		2020 Term Loans:
		In April 2020, Novelis Acquisitions LLC borrowed ` 5,892 crore ($ 775 million) under the Novelis’ existing secured
termloan credit agreement (“Term Loan Facility”) prior to its merger into Aleris Corporation. The proceeds of theincremental term loans were used to pay a portion of the consideration payable in the acquisition of Aleris (including
the repayment of Aleris’ outstanding indebtedness) as well as fees and expenses related to the acquisition, andthe incremental term loans. The incremental term loans will mature on January 21, 2025, subject to 0.25% quarterly
amortization payments. The incremental term loans accrue interest at LIBOR (as defined in the Term Loan Facility)
plus 1.75%.
		

As of March 31, 2022, the outstanding amount on 2020 Term Loan Facility is ` 5,673 crore ($ 748 million) net of debt
issuance cost of ` 82 crore ($ 11 million).

		2021 Term Loans:
		In March 2021, Novelis borrowed ` 3,649 crore ($ 480 million) of term loans (the “2021 Term Loans”) under its Term
Loan Facility with an additional ` 149 crore ($ 20 million) being borrowed under the 2021 Term Loans in April 2021.
The 2021 Term Loans mature on March 31, 2028 and are subject to 0.25% quarterly amortization payments. The
existing loans under the Term Loan Facility accrue interest at LIBOR plus 2%. The proceeds of the 2021 Term Loans
were applied to refinance a portion of the 2017 Term Loans.
		

As of March 31, 2022 the outstanding amount on 2021 Term Loan Facility is ` 3,699 crore ($ 487 million) net of debt
issuance cost of ` 58 crore ($ 8million).

		Zhenjiang Loans		Through the acquisition of Aleris on April 14, 2020, Novelis assumed ` 1,078 crore ($ 142 million) in debt borrowed by
Aleris Aluminum (Zhenjiang) Co., Ltd. (“Aleris Zhenjiang”) under a loan agreement comprised of non-recourse multicurrency secured term loan facilities and a revolving facility (collectively the “Zhenjiang Loans”), which consistedof a ` 221 crore ($ 29 million) U.S. dollar term loan facility, a ` 852 crore ($ 112 million) Renminbi term loan facility(collectively, the “Zhenjiang Term Loans”) and a revolving facility (the “Zhenjiang Revolver”). The Zhenjiang Revolver
has certain restrictions that have limited Novelis’s ability to borrow funds on the Zhenjiang Revolver and will continue
to limit Novelis’ ability to borrow funds in the future. All borrowings under the Zhenjiang Revolver matured on May
18, 2021.
		In May 2021, the Zhenjiang term loans amounting to ` 959 crore ($ 129 million) were prepaid in full. As a result of
repayment of term loan the Group recognised gain on extinguishment of debt of ` 16 crore ($ 2 million). As of March
31, 2022, there is no amounts outstanding under the Zhenjiang Revolver.

		All the above term loans of Novelis are part of its senior secured credit facilities, which are guaranteed by its direct
parent, AV Metals Inc., and certain its direct and indirect subsidiaries and are secured by a pledge of substantially allof the assets, including Intangible Assets but excluding Right-of-Use Assets, of the Novelis and the guarantors.

(d) Unsecured Senior Notes comprise of following:
5.875% Senior Notes due September 2026
In September, 2016, Novelis Corporation, an indirect wholly owned subsidiary of Novelis Inc., issued $ ` 10,972 crore(1.5 billion) in aggregate principal amount of 5.875% Senior Notes Due 2026 (the “2026 Senior Notes”). The proceeds fromthe August 2021 issuance of the 2026 Senior Notes and the 2031 Senior Notes, as defined below, were used to fully fundthe redemption of the 5.875% Senior Notes due September 2026.
As of March 31, 2022, the 2026 Senior Notes were no longer outstanding.

Integrated Annual Report 2021-22351

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
2026 Senior Notes & 2031 Senior Notes

Brazil Loans

In August 2021, Novelis Corporation, an indirect wholly owned subsidiary of Novelis Inc., issued ` 5,563 crore ($ 750
million) in aggregate principal amount of 3.250% Senior Notes due November 2026 (the “2026 Senior Notes”). The 2026
Senior Notes mature on November 15, 2026 and are subject to semi-annual interest payments that will accrue at a rate of
3.250% per year. The net proceeds of the offering, together with cash on hand, were used to (i) fund the redemption of a
portion of the 5.875% Senior Notes due September 2026, plus the redemption premium and accrued and unpaid interest
thereon and (ii) pay certain fees and expenses in connection with the foregoing and the offering of the notes.

In the third quarter of fiscal 2022, Novelis borrowed ` 223 crore ($ 30 million) of bank loans. These bank loans are due June
16, 2023 and are subject to 1.8% interest due in full at the maturity date. As of March 31, 2022 the outstanding balance on
this loan is ` 228 crore ($ 30 million).

In August 2021, Novelis Corporation, a wholly owned subsidiary of Novelis Inc., issued ` 5,563 crore ($ 750 million) inaggregate principal amount of 3.875% Senior Notes due August 2031 (the “2031 Senior Notes”). The 2031 Senior Notes
mature on August 15, 2031 and are subject to semi-annual interest payments that will accrue at a rate of 3.875% per year.
The net proceeds of the offering, together with cash on hand, were used to (i) fund the redemption a portion of the 5.875%
Senior Notes due September 2026, plus the redemption premium and accrued and unpaid interest thereon and (ii) pay
certain fees and expenses in connection with the foregoing and the offering of the notes.
The Group has incurred debt issuance costs of ` 81 crore ($ 11 million) for the 2026 Senior Notes and 2031 Senior notes,
which will be amortized as an increase to interest expense and amortization of debt issuance costs over the term of thenote.

In the third quarter of fiscal 2022, Novelis also borrowed ` 149 crore ($ 20 million) of bank loans due December 15, 2023.
These bank loans are subject to 1.8% interest due in full at the maturity date. As of March 31, 2022 the outstanding balanceon this loan is ` 152 crore ($ 20 million).
(f)

Deferred Payment Liabilities
On July 23, 2018, Novelis Switzerland, an indirectly wholly owned subsidiary of Novelis Inc. acquired real and personal
property from Constellium Valais SA for ` 1,855 crore ($ 249 million). Out of total purchase price, ` 25 crore ($ 3.9 million)
is to be paid over a period through July 2023. This facility carries interest rates of 7.5%.

(g) Changes in Liabilities arising from Financing Activities:
Particulars

Balance as at April 01, 2020#

Cash Flows (Net)
Additions

As of March 31, 2022 outstanding amount on 2026 Senior Notes and 2031 Senior Notes is ` 5,561 crore ($ 732 million)
respectively.

In March 2021, Novelis Sheet Ingot GmbH, an indirect wholly owned subsidiary of Novelis Inc., organized under the lawsof Ireland, issued ` 4,299 crore (€ 500 million) in aggregate principal amount 3.375% Senior Notes due 2029 (the “2029
Senior Notes” and together with the 2026 Senior Notes and the 2030 Senior Notes, the “Senior Notes”). The 2029 SeniorNotes are subject to semi-annual interest payments and mature on April 15, 2029. The proceeds were used to pay down aportion of the 2017 Term Loans, plus accrued and unpaid interest. In addition, Novelis intend to allocate an amount equal
to the net proceeds received from this issuance to finance and/or refinance new and/or existing eligible green projects,
which are currently contemplated to consist of renewable energy or pollution prevention and control type projects.

Lease
Obligations

Supplier’s
CreditTotal

59,4598,762(2,915)

2,020

1,142

-

69,363

(331)

255

(971)

-

-

385

-

385

(126)

38

-

(1,342)

Fair Value Changes - (refer Note 26 (c))

(87)

(30)

-

-

(117)

Debt Issuance Costs and Amortisation (Net)

68

-

-

-

68

Interest Expense **

3,569

252

56

-

3,877

Interest Paid **(3,581)

(278)

(51)

-

(3,910)

-

-

(135)

-

(135)

Disposal/Modification/Reassessment

As of March 31, 2022 outstanding amount on 2029 Senior Notes is ` 4,143 crore ($ 546 million) net of debt issuance costof ` 78 crore ($ 10 million).

Current
Borrowings(1,254)Foreign Exchange Adjustments

2029 Senior Notes

352

Liabilities from financing activities
Non Current
Borrowings

As a result of this transaction, the Group has recorded a loss on extinguishment of debt of ` 453 crore ($ 60.9 million) andgain on modification of ` 103 crore ($ 13.9 million) in the second quarter of fiscal 2022, ` 378 crore ($ 51 million) of which
related to redemption premium and was paid with cash on hand.

(e)(` in Crore)

Changes in Liabilities Assumed on Acquisition

1,078

-

124

-

1,202

Reclassification

4,484(4,484)---

Other Changes/Reclassification

3

(68)

-

-

(65)

Balance as at March 31, 2021 #

60,824

6,048

1,228

255

68,355

Cash Flows (Net)(3,747)

(849)

(337)

2,161

(2,772)

-

-

412

-

412

Additions2030 Senior Notes

Foreign Exchange Adjustments

1,198

135

14

40

1,387

In January 2020, Novelis Corporation, an indirect wholly owned subsidiary of Novelis Inc., issued ` 11,704 crore ($ 1.6 billion)
in aggregate principal amount of 4.750% Senior Notes due January 2030 (the “2030 Senior Notes”). The 2030 Senior Notes
are subject to semi-annual interest payments and mature on January 30, 2030.

Fair Value Changes - (refer Note 26 (c))

(64)

-

-

-

(64)

79

-

-

-

79

Interest Expense **

3,381

202

56

8

3,647

As of March 31, 2022 outstanding amount on 2030 Senior Notes is ` 11,957 crore ($ 1.6 billion) net of debt issuance cost of` 188 crore ($ 25 million).

Interest Paid **(3,127)

(75)

(50)

(8)

(3,260)

-

(4)

(72)

-

(76)

-

139

-

-

139

(6)

(21)

-

-

(27)

Debt Issuance Costs and Amortisation (Net)

Disposal/Modification/Reassessment
Changes in Liabilities Assumed on Acquisition

Unsecured Foreign Currency Term Loan from Banks comprise of following:

Liabilities on Disposal of a Subsidiary

Bank of China Term Loan

Other Changes

In September 2019, Novelis entered into a credit agreement with the Bank of China to provide up to CNY 500 million in
unsecured loans to support previously announced capital expansion projects in China. As of March 31, 2022 the outstanding
amount of this loan is ` 573 crore ($ 76 million). This loan carries interest rates of 4.90%.

Balance as at March 31, 2022 #HINDALCO INDUSTRIES LIMITED

#

(6)

6

-

-

-

58,532

5,581

1,251

2,456

67,820Borrowing include Interest accrued on borrowings and current maturities of related borrowings.

** Interest expenses and interest paid relates to borrowings and lease liabilities before interest capitalisation.

Integrated Annual Report 2021-22353

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
unsecured nature of the short-term loan. As at March 31, 2022, the outstanding balance on this borrowing is ` 2,374 crore($ 313 million).

18B. Borrowings, Current

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

Particulars(` in Crore)

As at

(g)

Foreign Currency Loans represents amount of ABL Revolver credit facility in Novelis. The loan carry interest rate of
3.75% p.a.

31/03/2022

31/03/2021

As of March 31, 2022, the revolver had an outstanding balance of ` 114 crore ($ 15 million); and ` 1,197 crore ($ 158 million)
was utilized for letters of credit. There was ` 10,074 crore ($ 1.3 billion) in remaining availability, including ` 131 crore($ 17 million) of remaining availability that can be utilized for letters of credit.

Rupee Loans - (a), (b) & (d)57Foreign Currency Loans - (g)

114

651

Above credit facility in Novelis is part of its senior secured credit facilities, which are guaranteed by its direct parent, AV
Metals Inc., and certain its direct and indirect subsidiaries and are secured by a pledge of substantially all of the assets,
including Intangible Assets but excluding Right-of-Use Assets, of the Novelis and the guarantors.

SecuredLoans from Banks

Loans from Others
Foreign Currency Loans - (c)

4

2

123

660

19. Supplier’s Credit(` in Crore)

Unsecured

As atLoans from Banks
Rupee Loans - (d)Foreign Currency Loans - (e), (f)Current Maturities of Long-term Borrowings

(a)

(b)

-

40

5,300

5,329

5,300

5,369

6,177

964

11,6006,993

Working Capital loan for Aluminium business, granted under the Consortium Lending Arrangement, are secured by a firstpari-passu charge on entire stocks of raw materials, work-in-process, finished goods, consumable stores and spares andalso book debts pertaining to the Company’s Aluminium business, both present and future. Working Capital loan for the
Copper business is secured by a first pari passu charge on stocks of raw materials, work-in-process, finished goods andconsumable stores and spares and also book debts and other movable assets of Copper business, both present and future.
(Refer Note 11(a))
Cash Credit facilities for Utkal Alumina International Limited (Utkal) with banks are availed under the consortium lending
arrangement and are secured by (a) first pari-passu charge by hypothecation of investments classified as “held for trading”,
entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares, investments classified as“available for sale”, stock-in trade and book debts pertaining to Utkal’s business, both present and future and (b) second
charge on Utkal’s fixed assets. The borrowings carry floating interest rate at MCLR (ranging from 3 months to one year) +Spread (ranging from 25 bps to 55 bps).

(c)

Payable under trade financing arrangements in Novelis Inc.

(d)

Represents loan taken to meet the Company’s working capital requirements. The loan carry interest rate of 3.31% p.a.

(e)Includes ` 1,401 crore (31/03/2021: ` 4,245 crore) unsecured Foreign currency loans from Indian Banks and Foreign banks,
mainly in nature of Buyers credit which has been availed for Copper business to meet its working capital requirement,
mostly to settle the import payments of copper concentrate and certain other raw materials. The loan carry interest rateof 6M SOFR. - Refer Note 46B (c) on non-derivative financial instruments used as hedging instruments.

(f)

354

In January 2022, Novelis entered into a ` 2,390 crore ($ 315 million) short-term loan with Axis Bank Limited, IFSC Banking
Unit, Gift City, as administrative agent and lender. The proceeds of the short-term loan were applied to voluntarily prepay
the 2017 Term Loans, as defined in Note 18A, Non-current borrowings. The short-term loan matures on November 30,
2022, is subject to 0.25% quarterly amortization payments, and accrues interest at Secured Overnight Financing Rate
(SOFR) plus 0.90%. The short-term loan is unsecured and guaranteed by certain of the Group’s direct and indirect U.S. andCanadian subsidiaries, and the agreement contains voluntary prepayment provisions, affirmative and negative covenants,
and events of default substantially similar to those under Novelis’ Term Loan Facility, other than changes to reflect the

HINDALCO INDUSTRIES LIMITED

31/03/2022
Non-Current

Current

Non-Current

Current

-

2,456

-

255

-

2,456

-

255

Supplier’s Credit(a)31/03/2021

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

20. Trade Payables

Refer Note 1B(P) for accounting policy on Trade and Other Payables(` in Crore)

As at
31/03/2022

31/03/2021

Non-Current

Current

Non-Current

Current

Micro and Small Enterprises

-

105

-

58

Other than Micro and Small Enterprises - (b) & (c)-41,277-28,177-41,382-

28,235(a)Trade Payables ageing schedule as at 31/03/2022:(` in Crore)

Particulars

Unbilled

Not Due

Outstanding for following periods from due
date of payment
Less than
1 year(i)

Total

1 - 2 years 2 - 3 years More than
3 years

MSME

14

33

44

10

3

1

105

(ii) Others

4,074

29,622

7,261

157

22

54

41,190(iii) Disputed - MSME

-

-

-

-

-

-

-

(iv) Disputed - Others

-

-

21

22

44

-

87

4,088

29,655

7,326

189

69

55

41,382

Total

Trade Payables ageing schedule as at 31/03/2021:

Integrated Annual Report 2021-22355

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(` in Crore)

Particulars

Unbilled

Not Due

Outstanding for following periods from due
date of payment
Less than
1 year(i)

Total

1 - 2 years 2 - 3 years More than
3 years

MSME

3

12

31

5

-

1

52

(ii) Others

2,797

17,380

7,566

30

10

71

27,854(iii) Disputed - MSME

-

114

63

5

6

6

194

(iv) Disputed - Others

2

-

22

53

12

46

135

2,802

17,506

7,682

93

28

124

28,235Total(b)

Refer Note 42 for balances with related parties.

(c)Refer Note 46-B(c) on non-derivative financial instruments used as hedging instruments.

22. Provisions

Refer Note 1B(L) for accounting policy on Provisions and Contingencies andRefer Note 1B(V) for accounting policy on Employee Benefits(` in Crore)

31/03/2022

31/03/2021

Liability for Capital Expenditure

8

4

Security and Other Deposits

2

2

129

127

139

133

Other Financial Liabilities, Current(` in Crore)

31/03/2022

31/03/2021

Derivative Matured, pending settlement

1,444

546

Interest Accrued but not due

878

894

Liability for Capital Expenditure

1,080

953

42

33

Investor Education and Protection Fund

Debentures - (b)Others356

HINDALCO INDUSTRIES LIMITED

31/03/2021

Non-Current

Current

Total

Non-Current

Current

Total

6,187

1,115

7,302

7,472

1,138

8,610

288

5

293

302

78

380

Environmental Liability

89

410

499

14

191

205

Enterprise Social Commitment

139

100

239

200

48

248

Renewable Power Obligation

-

148

148

-

172

172
525

Legal Cases
Other Miscellaneous Provisions

5

5

3

3

155

97

3,607

2,531

-

744

744

-

525

145

319

464

158

458

616

661

1,726

2,387

674

1,472

2,146

6,848

2,841

9,689

8,146

2,610

10,756(a)

The Group have made provisions towards environmental, asset retirement, social responsibility, renewable power,
restructuring, rehabilitation, carbon emission, legal and other obligations at various locations involving considerable
uncertainties towards amount and timing of outflow of economic resources. The provisions are discounted over the
management expected timing of related cash flows.

(b)

Movements in each class of Other Provisions are set out below:(` in Crore)

As at

Unclaimed Dividends - (a)As atAssets Retirement Obligations

Mainly includes employee liabilities of ` 127 crore (31/03/2021: ` 120 crore)

Security and other Deposits(` in Crore)

Other Provisions:

As at

B.

In terms of Debenture Subscription Agreement between Utkal Alumina International Limited (‘UAIL’), a wholly owned
subsidiary of the Group, and Orissa Mining Corporation Limited (‘OMCL’), UAIL issued during the year, a Zero Coupon
Unsecured Redeemable Non-Convertible Debentures of ` 3 crore to OMCL towards its obligation to pay OMCL an
amount equivalent to 15% per annum on ` 20 crore as return up to March 31, 2022 which is due for redemption at par
on September 30, 2022.

Employee Benefit Provisions - (refer note 30)

Other Financial Liabilities, Non-Current

(a)

(b)

31/03/2022

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

Others - (a)These amounts do not include any amount, due and outstanding, to be credited to ‘Investor Education and Protection
Fund’ except ` 0.09 crore (31/03/2021: ` 0.09 crore) which is held in abeyance due to legal cases pending.

Particulars

21. Other Financial Liabilities
A.

(a)

AssetsRetirement
Obligations

Environmental
Liability

EnterpriseSocialCommitment

Renewable
Power Obligation

Legal
Cases

Other Miscellaneous
Provisions
*

Total

Balance as at April 01, 2020

377

66

243

186

612

513

1,997

Recognised

41

54

5

75

75

337

587

Reclassified

-

-

-

-

1

-

1

Used/Paid

(32)

(12)

(13)

(31)

(68)

(192)

(348)

Reversed

(1)

-

(1)

(58)

(79)

(112)

(251)

Unwinding of discounts

3

1

14

-

-

-

18

Exchange adjustment

(8)

(6)

-

-

(16)

(34)

(64)

-

102

-

-

-

104

206

Additions due to acquisition
Other
Balance as at March 31, 2021

-

-

-

-

-

-

-

380

205

248

172

525

616

2,146

Integrated Annual Report 2021-22357

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(` in Crore)

AssetsRetirement
Obligations

Environmental
Liability

EnterpriseSocialCommitment

Renewable
Power Obligation

Legal
Cases

Other Miscellaneous
Provisions
*

Total

Recognised

7

317

-

112

200

372

1,008

Reclassified

16

-

-

-

-

(16)

-

Used/Paid

(40)

(4)

(23)

(107)

(10)

(493)

(677)

Reversed - (d)

-

(26)

-

(29)

(23)

(49)

(127)

Unwinding of discounts

16

1

14

-

-

-

31

Exchange adjustment

9

7

-

-

52

34

102

Reversed on disposal of a subsidiary

(95)

(1)

-

-

-

-

(96)

Balance as at March 31, 2022

293

499

239

148

744

464

2,387

* Other Provisions primarily includes provisions towards restructuring, rehabilitation, carbon emission, statutory provisions related toindirect taxes, coal cess, etc.

(c)

vi)
		

Restructuring charges include employee severance and benefit costs and other costs associated with exit activities.
Severance costs are recognized when management with the proper level of authority has committed to a restructuring
plan and communicated those actions to employees. Other exit costs include environmental remediation costs andcontract termination costs, primarily related to equipment and facility lease obligations. At each reporting date, we
evaluate the provisions for restructuring costs to ensure the provisions are still appropriate.

		Provision for carbon emission represents estimated liabilities towards emissions for operations in Europe and Asia.
The provision is measured at the carrying amount of allowances to the extent that the provision will be settled using
allowances on hand, with any excess emission being measured at the market value of the allowances at the period
end.

		

We believe we have made reasonable estimates for the costs that are reasonably possible for these provisions.

		

Based on the estimates of the timing of the cash outflows related to provisions, discounting will not have a material
impact.

(d)Reversal of Provisions:

Brief Description of Provisions:

Reversal of RPO Provisioni)

Pursuant to the issuance of notification by Madhya Pradesh Electricity Regulatory Commission (MPERC) in India, the Grouphas reversed the excess RPO provision of ` 13 crore related to FY 2021 in current year and during previous year pursuant
to the issuance of notification by MPERC, dated April 05, 2021, the Group has reversed the excess RPO provision of ` 21
crore related to FY 2020. Additionally ` 36 crore has been reversed on account of reduction in Solar certificate rate from` 2,400/REC to ` 1,000/REC.

Assets Retirement Obligations:

		Asset Retirement Obligation (ARO) is a legal or constructive obligation associated with the ash ponds, red mud ponds,
ash pipeline and coal transportation system in refineries and mining land where the land needs to be restored back to
usable condition after closing of activities. This is a statutory requirement in which the timing or method of settlement
may be conditional on one or multiple future events, the occurrence of which may not be within the control of theentity. The outflow of economic resources is expected during FY 2023 to FY 2054. The same has been appropriately
discounted.
ii)

iii)

Reversal of Legal Cases ProvisionDuring previous year reversal of ` 39 crore includes reversal of ` 37 crore on account of UP Transit Fees and ` 2 crore on
account of Energy Compensation Charges.

Environmental Liability:

		Environmental Liability is associated with Wild Life Conservation Plan (WLCP) and disposal of hazardous material
generated during the course of manufacturing or mining operation e.g. disposal of spent pot lining, Gypsum, Slag etc.
This disposal generally takes place as per the guidelines set by various regulatory authorities of States and Central
Government. The outflow of economic resources is generally expected in following financial year during FY 23 to FY 31.

23. Other Non-Current and Current Liabilitiesiv)

31/03/2022v)

Legal Cases:

		There are certain legal cases (including revenue matters) against which provision has been made since these eventsare probable to happen i.e. more likely than not but timing of occurrence of such events is uncertain as it depends
on when the matter will be settled at the highest Court of law.

HINDALCO INDUSTRIES LIMITED

31/03/2021

Non-Current

Current

Non-Current

Current

-

205

-

128

Statutory Dues Payables

88

1,418

156

1,154

Deferred Income - (b) & (c)

1,769

229

1,349

83

31

21

34

21

1,888

1,873

1,539

1,386

Customer Refund Liability - (a)Renewable Power Obligation (RPO):

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

(` in Crore)

As atEnterprise Social Commitment:

		Enterprise Social Commitment is the amount to be spent on social and economic development of the surroundingarea where new project is being setup. This is generally defined as a certain percentage of the total cost of the project.
The outflow of economic resources is expected during FY 2023 to FY 2056. This has been appropriately discounted
wherever necessary.

358

Other Miscellaneous Provisions:

Other Payables(a)Customer refund liability are recognised mainly for discount payable to customers.

(b)Includes deferred income in respect of grant related to Export Promotion Capital Goods (EPCG) ` 600 crore (31/03/2021:` 609 crore) in non- current portion and ` 20 crore (31/03/2021: ` 20 crore) in current portion.

(c)Includes deferred government grant income of ` 1,169 crore (31/03/2021: ` 740 crore) in non-current portion and ` 209
crore (31/03/2021: ` 58 crore) in current portion.

Integrated Annual Report 2021-22359

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
24. Contract Liabilities(a)

Sales of Copper products and precious metals are accounted for provisionally, pending finalization of price and quantity.
Variations are accounted for in the period of settlement. Final price receivable on sale of above products for which
provisional price was not finalized are realigned at year end forward LME/LMBA rate and is being presented as part ofother operating revenue. Revenue from subsequent variation in price movement is loss of ` 24 crore (31/03/2021: loss of` 31 crore).

(b)

Includes nutrient based subsidy of Phosphorus (P) & Potassium (K) arising from sale of Di ammonium phosphate (DAP)` 441 crore (31/03/2021: ` 402 crore).

Refer Note 1B(Z) for accounting policy on Contract Liability(` in Crore)

Particulars

As at31/03/2022
Current

Total

Non-Current

10

365

375

10

365

375

Advance from Customers(a)31/03/2021

Non-Current

Current

Total

12

347

359

12

347

359

(c)

Sale of Services predominantly includes freight and insurance on certain export contracts, which are identified as separate
performance obligation under Ind AS 115.

(` in Crore)(d)Includes Government grant in the nature of sales related export incentives and other benefits of` 414 crore (31/03/2021:` 211 crore).

(e)Group’s revenue from external customers as analysed by the country, in which customers are located is given below:

Reconciliation of contract liabilities for the periods presented:
As at31/03/2022

31/03/2021

Balance at beginning of the year

359

202

Amount received during the year against which revenue has not been recognized

193

304

-

8

(182)

(152)

5

(3)

375

359

Additions due to Aleris Acquisition(` in Crore)

Year ended

Revenue recognized during the year
Less: Contract liabilities at the beginning of the year
Foreign exchange gains and losses
Balance at end of the year

Refer Note 1B(U) for accounting policy on Accounting for Government Grants(` in Crore)

Year ended

191,314

128,619

Trade Sales - (b)

1,177

1,414

Sale of Services - (c)

1,265

976

193,756

131,009

1,303

999

195,059

132,008

202,622

133,248

Refund Liabilities and Discounts(1,527)(1,266)

Hedging Gain/ (Loss)

Revenue from Contract with Customers
Sale of Products - (a)Other Operating Revenues - (a) & (d)46,13928,686

United States

46,62331,083

Brazil18,347

13,206

Korea

12,4189,009

United Kingdom

7,305

6,161

Germany

6,060

5,317

China

10,631

5,815

Others47,12232,520

194,645

131,797414

211

195,059

132,008

Outside India

Refer Note 1B(Y) for accounting policy on Revenue Recognition

31/03/2021

31/03/2021

India

25. Revenue from Operations

31/03/2022

31/03/2022

Add: Export Incentive and other benefits
Total Revenue from Operations(f)

Applying the practical expedient as given in Ind AS 115, the Group has not disclosed the remaining performance obligations
related disclosures for contracts where revenue recognized corresponds directly with value to the customer of the Group’s
performance completed to date.

Reconciliation of revenue recognised with contract price:
Contract Price
Adjustments for:(7,219)(881)

Others - Provisionally priced contracts

(120)

(92)

Revenue from Contracts with Customers

193,756

131,009360

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22361

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
26. Other Income

27. Cost of Materials Consumed

Refer Note 1B(AA) for accounting policy on Dividend and Interest Income(` in Crore)

Year ended

Refer Note 1B(U) for accounting policy on Accounting for Government Grants
Refer Note 1B(Q) for accounting policy on Financial Instruments(` in Crore)

Raw Materials - (a)Year ended
31/03/2022

31/03/2021

On Non-Current Investments

20

13

On Current Investments

35

24

On Others

170

144

Interest Income

Dividend Income
On Non-Current Investments - (a)Rent Income
Gains/ (Loss) on Property, Plant and Equipment and Intangibles Assets sold/ discarded (Net)

32

25

20

16

(100)

(35)

Gains/(Loss) on Financial Investments Measured at FVTPL (Net)On sale of Financial Assets

349

809

10

(266)

Income from Government Grants - (b)

275

141

Other Non-Operating Income (Net) - (c), (d)

325

328

1,136

1,199

On change of Fair Value of Financial Assets(a)All dividends from equity investments designated at FVTOCI relate to investments held at the end of the reporting period.
Dividend income of ` 1 crore (31/03/2021: ` Nil) relating to investments derecognised during the reporting period.

(b)Grant income mainly includes carbon emission credit allotments of ` 255 crore (31/03/2021: ` 116 crore) for certain operations
in Europe, UK and Asia and grant income associated with fixed assets investments in North America, South America, Europe
and Asia of Group’s subsidiary, Novelis Inc. There are no unfulfilled conditions or other contingencies attached to thesegrants.

(c)

(d)

362

Includes gain on repayment and modification of borrowings ` 183 crore (31/03/2021: ` 113 crore) resulting from change inrate and timing of expected cash flows payments on term loans. It also includes gain recognised on account of change inloan amortisation schedule ` Nil (31/03/2021: ` 4 crore) due to change in benchmark rate.
Includes royalty income of ` 7 crore (31/03/2021: ` 58 crore).

HINDALCO INDUSTRIES LIMITED(a)31/03/2022

31/03/2021

125,335

77,484125,335

77,484Purchase of copper concentrate is accounted for provisionally pending finalization of contents in the concentrate andprice. Variations are accounted for in the period of settlement. Final price payable on purchase of copper concentrate forwhich provisional price and quantity were not finalized during the year are realigned based on forward LME and LBMA
rate. Impact on cost from subsequent variation in price movement was loss of ` 922 crore (31/03/2021: gain of ` 160 crore).

28. Trade Purchases(` in Crore)

Year ended
31/03/2022

31/03/2021

Aluminum Rolled Product

256

126

Fertilizer - (a)

1,530

928

172

44

1,958

1,098

Others(a)During the previous year, the Fertilizer plant at Dahej, Gujarat was shut for regular maintenance and during the current year,
The Group has discontinued and impaired the Fertilizer plant. Thus, for both years, to cater to the domestic demand, theGroup has imported the fertilizer products i.e. Di Ammonium Phosphate (DAP) and Nitrogen, Phosphorus and Potassium(NPK).

29. Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade(` in Crore)

Opening Inventories

Closing Inventories

Net Change

As at

As at

Year ended

01/04/2021

01/04/2020

31/03/2022

31/03/2021

31/03/2022

31/03/2021

Work-in-Progress

13,43910,102

20,434

13,439(6,995)(3,337)

Finished Goods

4,869

4,500

7,180

4,869

(2,311)(369)

Stock-in-Trade

4

127

884

4

(880)

123

18,312

14,72928,49818,312(10,186)(3,583)Inventories acquired in businesscombination - (refer Note 49)

-

-

-

-

9

1,755

Inventories on disposal of a subsidiary

-

-

-

-

(77)

-

Currency Translation Adjustment (Net)

-

-

-

-

501

(318)

18,312

14,72928,49818,312(9,753)(2,146)Integrated Annual Report 2021-22363

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
Defined benefit plans expose the Group to actuarial risks such as Interest Rate Risk, Salary Risk and Demographic Risk.

30. Employee Benefits(A) Employee Benefits Expensei.

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

ii.

Salary Risk: Higher than expected increases in salary will increase the defined benefit obligation.

iii.

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

(I)

Gratuity Plans

Refer Note 1B(V) for accounting policy on Employee Benefits
Refer Note 1B(W) for accounting policy on Employee Share-based Payments(` in Crore)

Year ended
31/03/2022

31/03/2021

9,073

8,274

Contribution to Provident Fund and Other Defined Contribution Funds

417

421

Gratuity and Other Defined Benefit Plans

410

356

Equity Settled Share-Based Payment

35

15

Cash-Settled Share-Based Payment

307

286

Employee Welfare Expenses

1,754

1,567

11,996

10,919

(60)

(137)

11,936

10,782

Salaries and Wages
Post Employment Benefits:

Employee Share-Based Payment (refer Note 41)

Less: Transferred to Capital Work-in-Progress/ Intangible Assets under development

(a)

(b)

		The Group has various schemes (funded/unfunded) for payment of gratuity to all eligible employees calculated at
specified number of days (ranging from 15 days to 1 month) of last drawn salary depending upon the tenure of service
for each year of completed service subject to minimum service of five years payable at the time of separation uponsuperannuation or on exit otherwise. These defined benefit gratuity plans are governed by Payment of Gratuity
Act, 1972.

(` in Crore)

Year ended(a)Change in Defined Benefit Obligation (DBO)
Defined Benefit Obligation at beginning of the year

1,131

1,107

Current Service cost

48

52

Interest Cost on theDBO

68

73

The Hon’ble Supreme Court of India by their order dated February 28, 2019, in the case of Surya Roshani Limited v/s EPFO,
set out the principles based on which allowances paid to the employees should be identified for inclusion in basic wages forthe purposes of computation of Provident Fund contribution. The Group has given effect of the above judgement effective
March 1, 2019. This does not have any material impact on the Consolidated Financial Statements.

Settlement cost/ (credit)-

4

Acquisitions (credit)/ cost - (refer note 49)

2-

Actuarial (gain)/ loss experience

24

(52)

Actuarial (gain)/ loss financial assumption

(69)

23

Benefits paid directly by the Group

(47)

(44)

Benefits paid from plan assets

(27)

(32)

Defined Benefit Obligation at the end of the year

1,130

1,131

Defined Benefit Plans
Major Post retiral defined benefit plans of the Group include Gratuity, Pension, Post retirement medical benefit andProvident Fund (to the extent of the Group’s obligation to fund any shortfall on the yield of the trust’s investments over
the administered interest rates on an annual basis by Central Provident Fund Organisation of Government of India). The
Group does Actuarial valuation for its identified long term and short term defined benefit plans.

(b)

Change in Fair Value of Plan Assets

Methodology for actuarial valuation of Defined Benefit Obligations:

Fair value of assets at the beginning of the year

998

894

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

Interest Income on plan assets

63

59

Employer’s contributions

56

55

Return on plan assets greater/(lesser) than discount rate42

22

Benefits Paid

(27)

(32)

Fair value of assets at the end of the year

1,132

998

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

364

31/03/2021

The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post employment benefits
received Presidential assent inSeptember 2020. The Code has been published in the Gazette of India. However, the dateon which the Code will come into effect has not been notified. The Group will assess the impact of the Code when it comes
into effect and will record any related impact in the period the Code becomes effective.

(B) Post Employment Benefits
1.

31/03/2022

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

365Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(` in Crore)(` in Crore)

Year ended
31/03/2022

(c)

(g)

48

56

Defined Benefit Cost

(1,131)Service Cost

Fair Value of Plan Assets

1,132

998

Net Interest on net defined benefit liability/(asset)

5

14

2

(133)

Actuarial (gain)/loss recognised in OCI

(87)

(51)

(105)

-

Defined Benefit Cost

(34)

19

Defined Benefit Obligation, Unfunded--

Net defined benefit asset/(liability)

(103)

(133)

Discount rate (based on the market yields available on Government bonds at theaccounting date with a term that matches that of the liabilities)

7.00%

6.25%

Net Defined benefit asset/(Liability)at beginning of the year

(133)

(213)

Salary escalation rate

7.50%

7.50%

Weighted average duration of the defined benefit obligation

8 Years

9 Years

Service cost

(48)

(52)

-

(4)

Net Interest on net defined benefit liability/(asset)

(5)

(14)

Amount recognised in OCI

87

51

(105)

-

Employer’s contributions

56

55

Benefit paid directly by Company

47

44

Acquisitions (credit)/ cost

(2)

-

(103)

(133)

(h)

Reconciliation of Net Balance Sheet Position

Funded surplus not recognised - (refer note - n)

Net Defined benefit asset/(Liability)at the end of the year

48

52

Settlement cost/ (credit)$-

4

Net Interest on net defined benefit liability/(asset)

5

14

Net Gratuity Cost

53

70

Principal Actuarial Assumptions

Mortality Rate(i)

Indian Assured Lives
Mortality 2006-08

Non-Current and Current portion of Defined Benefit Obligation/(Asset)(` in Crore)

As at

(j)

Expense recognised during the year
Current Service cost

31/03/2022

31/03/2021

Current portion

5

3

Non-Current portion

98

130

103

133

Sensitivity Analysis

		Sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice,
this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivityof the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined
benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied
as when calculating the defined benefit liability recognised in the balance sheet.
(` in Crore)

Year ended

Settlement cost/(credit) during the year has been accounted under Exceptional Expenses as it pertains to Voluntary Retirement Scheme(VRS) granted at our Mines, Gare Palma (refer note - 37)$366

31/03/2021(1,130)

Settlement cost/ (credit)$(f)

31/03/2022

Defined Benefit Obligation, Funded

Funded surplus not recognised - (refer note - n)(e)

31/03/2021

Development of Net Balance Sheet Position

Funded Status (surplus/(deficit))(d)Year ended

31/03/2022

31/03/2021

7.00%

6.25%

Effect on Defined Benefit Obligation due to 1% Increase in Discount Rate

(82)

(87)

Effect on Defined Benefit Obligation due to 1% Decrease in Discount Rate

94

100

7.50%

7.50%

Discount Rate

Other Comprehensive Income (OCI)

Discount rate as at end of the year

Actuarial (gain)/loss due to DBO experience

24

(52)

Actuarial (gain)/loss due to DBO assumption changes

(69)

23

Actuarial (gain)/loss arising during the year

(45)

(29)

Salary Escalation Rate

Return on Plan Assets(greater)/less than discount rate

(42)

(22)

Salary Escalation Rate as at end of the year

Funded surplus not recognised - (refer note - n)

105-

Effect on Defined Benefit Obligation due to 1% Increase in Salary Escalation Rate

92

98

Actuarial (gain)/loss recognised in OCI

18

(51)

Effect on Defined Benefit Obligation due to 1% Decrease in Salary Escalation Rate

(82)

(87)

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22367

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
in Crore)(` in Crore)

Year ended

As at
31/03/2022

(k)

(l)

31/03/2021

The Expected Maturity Analysis of Undiscounted Gratuity is as follows:(a)Present Value of defined benefit obligations at the beginning of the year

from 1 year to 2 Year

101

89

Exchange (gain)/loss on translation

279

212

from 2 year to 3 Year

104

98

Current Service Cost

338

439

from 3 year to 4 Year

108

96

from 4 year to 5 Year

113

105

Interest Cost

406

414

from 5 year to 10 Year

628

587

Curtailment cost/ (credit)

(31)

(312)

(354)

-

Plans assets on acquisitions

-

1,650

Plan Participants Contribution

38

37

Plan Amendments

(76)

8

(1,328)

(146)

28

34

Benefits Paid

(783)

(777)

Present Value of defined obligations at the end of the year

16,287

17,77010,732

9,027

346

107

-

244

Plan Settlements

(354)

-

Remeasurement - return on plan assets excluding amount included in interest income

(217)

1,114

Interest Income

287

258

Employers’ Contributions

633

722

Plan participants contribution

38

37

Benefits Paid

(783)

(777)

Fair value of assets at the end of the year

10,682

10,732Present value of defined benefit obligations at the end of the year

16,287

17,770Fair Value of Plan assets at the end of the year

10,682

10,732

Amount recognized in the consolidated balance sheet

5,605

7,038

Recognized prepaid pension

208

81

Recognized pension liability

5,813

7,119

Plan Settlements

Plan Assets Information

31/03/2022

31/03/2021

Cash and Bank Balances

8.96%

8.96%

Scheme of insurance - conventional product

1.19%

1.19%

89.85%

89.85%

100.00%100.00%Scheme of insurance - ULIP Product* Investment in Plan assets are unquoted.

Net actuarial (gain)/ loss
Remeasurement changes in Asset ceilingb.

Change in plan Assets (Reconciliation of opening and closing Balance)(m) Expected Contributions to post employment benefit plan of Gratuity for the year ended March 31, 2023: ` 70 crore.

Fair Value of plan Assets at the beginning of the year(n)

Exchange gain/ (loss) on translation

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

Plans assumed on acquisitions(II) Pension and Post Employment Medical Benefits of Novelis Inc, the Group’s overseas subsidiary		Obligations related to the Group’s overseas operations, relate to: (1) funded defined benefit pension plans in the
U.S., Canada, Switzerland, and the U.K.; (2) unfunded defined benefit pension plans in Germany; (3) unfunded lumpsum indemnities payable upon retirement to employees in France, Malaysia and Italy; and (4) partially funded lumpsum indemnities in South Korea. These defined benefit plans provide a benefit to eligible employees based on plan
provisions, including but not limited to, years of service, compensation, or other vesting criteria. Each of the fundedpension plans is governed by an Investment Fiduciary. Other post retirement obligations include unfunded healthcare and life insurance benefits provided to eligible retired employees in the U.S., Canada, and Brazil. In addition, it
provide post employment benefits, including disability, early retirement and continuation of benefits (medical, dental,
and life insurance) to eligible former employees.

368

16,21158

Major categories ofPlan Assets are as under: *		17,770Change in obligation over the year

67

As at

		

31/03/2021

Within 1 year(` in Crore)		

31/03/2022

In connection with the acquisition of Aleris Corporation, the Group acquired postretirement benefit plans coveringcertain employees in Europe and the United States. Upon acquisition, the Group recognized the funded status of thedefined benefit plans as an asset or a liability within other non-current assets or other non-current liabilities in the
consolidated balance sheet. The plan assets are recognized at fair value. The group uses various assumptions when
computing amounts relating to its defined benefit pension plan obligations and their associated expenses (including
the discount rate and the expected rate of return on plan assets).
Compensated absence is presented as current, since the Group does not have an unconditional right to defer settlement
for any of these obligations.

HINDALCO INDUSTRIES LIMITEDc.

Reconciliation of fair value of assets & obligations

Integrated Annual Report 2021-22369

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(` in Crore)(` in Crore)

Year ended
31/03/2022d.

Year ended
31/03/2021

f.

Expenses recognized during the year

31/03/2022

31/03/2021

Equity

2,803

3,520

Composition of Plan Assets

Current service cost

338

439

Fixed Income

6,365

5,792

Past service cost/ Curtailment (credit)/ Settlement (gain)

(107)

(305)

Real Estate

382

265

119

156

Cash and cash equivalent

930

816

350

290

Other

202

339

10,682

10,732

Interest cost (net)		Details of special events during the year:		Pension Plan Freeze:g.

Sensitivity analysis for each significant actuarial assumption		During current year, Novelis announced the freeze of future benefit accruals under the Canada Pension Plan, effective
for union participants as of December 31, 2021 and non-union participants as of December 31, 2023. The Groupremeasured the plan’s assets and obligations as of April 30, 2021, which was the nearest calendar month-end to theannouncement of this freeze. A curtailment gain of ` 24 crore (USD 3 million) was recorded in the statement of profit
and loss for the year ended March 31, 2022.

(` in Crore)

31/03/2022

31/03/2021

Approximate (increase)/ decrease

Approximate (increase)/ decrease

Defined Benefits
obligation

Post
Employment
Medical Benefits

Defined Benefits
obligation

Post
Employment
Medical Benefits

Increase of 1 percentage

1,997

71

2,331

85

Decrease of 1 percentage(2,397)(84)(2,834)(101)

Increase of 1 percentage

(279)

-

(349)

-

Decrease of 1 percentage

254

-

308

-

Increase of 1 percentage

(679)

-

(831)

-

Decrease of 1 percentage

604

-

714

-

Participants assumed to have the mortality rates of individuals who
are one year older

(325)

(8)

(363)

(4)

Participants assumed to have the mortality rates of individuals who
are one year younger

331

8

376

4

Increase of 1 percentage

-

(105)

-

(105)

Decrease of 1 percentage

-

82

-

105

		Others:
Discount Rate

		During current year, Novelis entered into an agreement to transfer the liabilities associated with a portion of theretirees and beneficiaries of the Canada Novelis Pension Plan to an insurer through a purchase of buy-out annuities.
The premium payment was made to the insurer on August 10, 2021. The Group remeasured the plan’s assets andobligations as of July 31, 2021, which was the nearest calendar month-end to the premium payment for this settlement.
As a result of this transaction, a settlement gain of ` 7 crore (USD 1 million) was recorded for the year ended March
31, 2022.
		e.

Salary Growth Rate

The Group recognised past service credit comprising plan amendment mentioned in the table above amounting to `49 crore (USD 7 million) with respect to plans in North America and ` 27 crore (USD 4 million) with respect to plansin Europe during the year ended March 31, 2022 within Employee benefits expense in the profit and loss statement.
Remeasurement of net defined benefit liability/(asset) (OCI)

Pension Growth Rate(` in Crore)

Year ended
31/03/2022

31/03/2021

(8)

(77)

(1,449)

74

129

(143)

(1,328)(146)

Remeasurement return on plan assets excluding amount included in interest income

217(1,114)

Impact of asset ceiling

28

34

Exchange Gain/ (Loss)

(93)

103

(1,176)(1,123)

Actuarial (gains)/ losses arising from changes in demographic assumptions
Actuarial (gains)/ losses arising from changes in financial assumptions
Actuarial (gains)/ losses arising from changes in experience adjustments
Remeasurement of net defined benefit liability

370

Expected future lifetimes(in years) for employees

HINDALCO INDUSTRIES LIMITED

Medical cost trend rates

		

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant.
In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating
the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present valueof the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period)has been applied as when calculating the defined benefit liability recognised in the balance sheet.

Integrated Annual Report 2021-22371

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
		

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to theprior year.

h.

The principal actuarial assumptions at the reporting dates(expressed as weighted averages) for defined benefit plans
Major categories ofPlan Assets are as under: *As at31/03/2022

31/03/2021

Discount Rate

1.42% - 4.01%

0.77% - 3.39%

Salary growth Rate

2.65% - 3.50%

2.60% - 3.50%

Expected future lifetimes (in years) for employees
Pensioners
Current employees

i.

23

17

6 - 11

8 - 11The principal actuarial assumptions at the reporting dates (expressed as weighted averages) for post employment
medical benefits
As atLong term increase in health costs
Discount ratej.

31/03/2022

31/03/2021

4.29% - 5%

4.29% - 4.88%

2.70% - 8.90%

2.20% - 8.30%

Weighted average duration of the defined benefit obligation in years
As at
31/03/2022

31/03/2021

8 - 158 - 15Weighted average duration of the defined benefit obligation in yearsk.

Expected maturity analysis of undiscounted defined befit plan and post-employment medical benefit plans(` in Crore)

31/03/2022

l.
2.

31/03/2021

Between
1-2 years

Between
2-5 years

5 to 10years

Within1 year

Between
1-2 years

Between
2-5 years

5 to 10years

Defined benefit plan

743

1,642

2,485

4,532

714

1,547

2,339

4,255

Post employment medical benefit plant

33

83

141

277

36

87

149

298

Expected contributions to the defined benefit plans for the year ended March 31, 2023: ` 137 crore.

(A) Other Defined Benefit Plans
Post Retirement Medical Benefit

		The Group provides post retirement medical benefit to its certain retired employees in India. The scheme involves
reimbursement of expenses towards medical treatment of self and dependents. The amount charged to theConsolidated Statement of Profit and Loss during the year is ` 0.32 crore (31/03/2021: ` 0.34 crore) and amount of
actuarial (gain)/ loss recognised in Other Comprehensive Income during the year is` (4) crore (previous year: ` (1)crore). The obligation with respect to said scheme as at 31/03/2022 is ` 5 crore (year ended 31/03/2021: ` 5 crore).

372

HINDALCO INDUSTRIES LIMITED

Other Pension Plan

		It is a pension benefit provided to erstwhile Managing Director. The amount charged to statement of Profit and Lossduring the year is ` 3 crore (31/03/2021: ` 3 crore). Amount of actuarial (gain)/ loss recognised in Other Comprehensive
Income during the year is` Nil (31/03/2021: ` 1 crore).
		The obligation with respect to these schemes as at 31/03/2022: ` 47 crore (31/03/2021: ` 46 crore).

(B) Defined Contribution Plans(a)

Pension		The Group contributes a certain percentage of salary for all eligible employees in India in the managerial cadre
towards Superannuation Funds with option to put certain portion in National Pension Scheme (NPS) and/or in funds
managed by Birla Sunlife Insurance Company to be converted to annuity of Life Insurance Corporation of India. JuniorPension Plan provided to certain employees is in the nature of defined benefit plan which provides an annuity in theform of pension amount at retirement. The amount charged to the Consolidated Statement of Profit and Loss during
the year is ` 16 crore (31/03/2021: ` 15 crore) and amount of actuarial gain/ (loss) recognised in Other Comprehensive
Income during the year is` Nil (31/03/2021: ` 1 crore).
(b)

Provident Fund

		The Company’s and certain Indian subsidiaries contribution towards Provident Fund managed either by approved trusts
or by the Central Government is debited to the Consolidated Statement of Profit and Loss. In respect of provident
fund management by the approved trust, these entities have an obligation to fund any shortfall on the yield of thetrust’s investments over the administered interest rates on an annual basis. These entities also contributes to Coal
Mines Provident Fund (CMPF) in respect of employees working in coal mines.
		The amount debited to the Consolidated Statement of Profit and Loss during the year was ` 104 crore (31/03/2021:` 103 crore).

		Based on actuarial valuation considering this to be in the nature of a defined benefit plan, the Group has recognised
obligation as at 31/03/2022 of ` Nil (31/03/2021: ` 2 crore) towards shortfall on the yield of the trust’s investments
over the administered interest rates. Amount of actuarial (gain)/ loss recognised in Other Comprehensive Income
during the year is ` (4) crore (31/03/2021: ` (9) crore).

		Sensitivity Analysis:

Within1 yearOther Defined Benefit and contribution Plans

(a)

(b)

(` in Crore)

As at
31/03/2022

31/03/2021

Effect on DBO due to 1% increase in discount rate

(3)

(3)

Effect on DBO due to 1% decrease in discount rate

44Effect on DBO due to 1% increase in discount rate

(0.01)(0.1)

Effect on DBO due to 1% decrease in discount rate

0.1

0.1

Provident Fund
Discount ratePensionDiscount rate

Integrated Annual Report 2021-22

373

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
		Assumption use in determining the present value obligation of the interest rate guarantee under the Deterministic
Approach:(a)(` in Crore)

As at

3.

31/03/2022

31/03/2021

Discount rate

7.00%

6.25%

Expected EPFO (Employees’ Provident Fund Organisation) Return

8.10%

8.50%

Other Employee Benefit Plans(a)		

Includes difference between effective interest rate and contracted interest rate of ` 76 crore (31/03/2021: ` 68 crore) mainly
from amortisation of debt issuance cost.
It also includes ` 11 crore (31/03/2021: ` 6 crore) paid to Income Tax Department.

(b)Loss on modification and extinguishment of debt for the year ended 31/03/2022 is primarily related to refinancing ofSenior notes 2026 in August 2021 and prepayment of 2017 Term loan (Refer Note 18A: Borrowings, Non-Current). For theyear ended 31/03/2021, it is related to amendment in Short term Credit Agreement and 2017 term loan.

(c)Includes unwinding of discount on Enterprise Social Commitment and Asset Retirement Obligations - (refer Note 22).

(d)

The capitalisation rate used to determine the amount of borrowing costs capitalised across the Group ranges between
2.77% to 6.32% (31/03/2021: 3.54% to 6.78%.).

Leave Obligation
The leave obligation cover the Group’s liability for earned leave and sick leave. The entire amount of the provisionof ` 531 crore (31/03/2021: ` 520 crore) is presented as current, since the Group does not have an unconditional rightto defer settlement for these obligations. Expected amount towards settlementof Leave for the next 12 months are` 41 crore (31/03/2021: ` 36 crore).

33. Depreciation and Amortisation Expenses

Refer Note 1B(D) -to- (G) for accounting policy on depreciation and amortisation on Property, Plant and Equipment,
Investment Property, Intangible Assets (Other than goodwill), and Stripping cost
Refer Note 1B(M) for accounting policy on Leases(` in Crore)

31. Power and FuelYear ended(` in Crore)

31/03/2022

31/03/2021

Depreciation of Property, Plant and Equipment

5,515

5,406

Depreciation of Right of Use Assets

345

362

Depreciation of Investment Properties

1

1

872

866

6,733

6,635

(4)

(7)

6,729

6,628

Year ended

Power and Fuel Expenses
Less: Transferred to Capital Work-in-Progress/Intangible Assets under development

31/03/2022

31/03/2021

11,148

8,668

(2)

(1)

11,146

8,667

Amortisation of Intangible Assets

Less: Transferred to Capital Work-in-Progress

32. Finance Cost

Refer Note 1B(T) for accounting policy on Borrowing cost(` in Crore)

34. Impairment Loss/ (Reversal) of Non-Current Assets (Net)

Year ended

Refer Note 1B(J) for accounting policy on Impairment of Non-Current Assets (excluding Goodwill)

31/03/2022

31/03/2021

3,352

3,760

Interest expense for lease arrangements

56

56(Gain)/ Loss on Foreign Currency Borrowings (Net)

5

(14)

Impairment Loss

Loss on Modification and Extinguishment of Debt - (b)

477

125

Impairment Reversal

Other Borrowing Costs - (c)

65

67

3,955

3,994

(187)

(256)

3,768

3,738

Interest Expenses on Financial Liabilities not at FVTPL - (a)Less: Transferred to Capital Work-in-Progress/ Intangible Assets under development - (d)(` in Crore)

Year ended
31/03/2022

31/03/2021

155

145

-

(7)

155

138

The Group assess the recoverability of property, plant and equipment and intangible assets whenever events or changes incircumstances indicate that the Group may not be able to recover the asset’s carrying amount. Such events or circumstances
include, but are not limited to, a significant decrease in the fair value of the underlying business, change in utilization ofproperty and equipment and intangible assets, or market factors such as metal price and input costs.
If any indication exists and an impairment testing for an asset is required, the Group estimates the asset’s recoverable
amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs ofdisposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate

374

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22375

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount ofan asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable
amount and it will be its new cost basis. For a depreciable asset, the new cost basis will be depreciated over the remaining
useful life of that asset. For an amortizable intangible asset, the new cost basis will be amortized over the remaining usefullife of the asset.
Impairment loss calculations require management to apply judgments in estimating future cash flows to determine asset
fair values, including forecasting useful lives of the assets and selecting the discount rate that represents the risk inherent
in future cash flows. Impairment charges are recorded in “Impairment Loss/ (Reversal) of Non-Current Assets (Net)” in theConsolidated statement of profit and loss.

35. Impairment Loss/ (Reversal) on Financial Assets (Net)
Refer Note 1B(Q) for accounting policy on Financial Instruments(` in Crore)

Year ended
31/03/2022

31/03/2021

Provision for Doubtful Debts, Loans and Other Financial Assets / (written back) (Net)

10

(31)

Bad Debts Loans and Other Financial Assets/ (written back) (Net)

145

5

155

(26)

For the year ended March 31, 2022, the Group has identified and recognised impairment on its certain non-current assets
and the same is summarised in below table:(` in Crore)

Footnote

Note
No.

36. Other Expenses

31/03/2022

Year ended

31/03/2021

31/03/2022

31/03/2021

4,467

3,552

Repairs to Buildings

352

238

Repairs to Machinery

2,884

2,364

Rates and Taxes

228

165

Leases Expenses - (a)

307

229

Insurance Charges

392

350

Payments to Auditors

68

90

Research and Development

716

638

6,564

4,541

Donation - (c)15

10

Directors’ Fees and Commission

17

16

In December 2021, the Group decided to sell its entire equity interest in its wholly owned Brazilian subsidiary, Hindalco
Do Brasil Industria e Comercio de Alumina Ltda (‘Hindalco Do Brazil’) and assets and liabilities of the same were classified
as ‘Disposal Group Held for Sale’. Accordingly the Group recognized an impairment loss of ` 59 crore ($8 million) on the
net assets of Hindalco Do Brazil. - (refer Note 51 for further details)(Gain)/ Loss on assets held for sale

-

3

1,796

450

21

(44)

During the previous year, the Group recognized impairment in respect of certain mining assets in India amounting to ` 115
crore on account of operation of these mining assets become unviable due to high cost of production and other operational
issues.

Miscellaneous Expenses - (d)

7,984

5,878

25,811

18,480(31)(28)

25,78018,452

Short Term Leases

161

111

Variable Lease Payments

129

102

Leases of Low Value Assets

17

16

307

229

Break up of Impairment Loss/ (Reversal) recognised during the year:(i) Impairment Loss on items of Property, Plant and Equipment(a), (d)

2

77

71

(ii) Impairment Loss/ (Reversal) on Capital Work-in-Progress (CWIP)

(b)

2 (f)

19

5

(iii) Impairment Loss on Intangible Assets(d)

5 (d), (e)-44(c), (e)15, 51

59

18

155

138

(iv) Impairment Loss on Assets/ Disposal Group Held for Sale

(a)

(b)

(c)

(d)

(e)

376

(` in Crore)

Year ended

During the year, the Group has evaluated operational performance along with current environmental norms of its Di
Ammonium Phosphate (DAP) Plant and decided to decommission the same. As a result, the Group has recognized impairment
in respect of existing DAP plant amounting to ` 77 crore.
During the year, the Group has impaired certain mining assets of ` 19 crore which was underutilized due to various reasons
such as environmental clearances etc.
Further, during previous year impairment loss has been recognised on CWIP of ` 5 crore - refer Note 2 (f)During the previous year, the Group recognised impairment of ` 25 crore on certain assets classified as “Disposal Group
Held for Sale” based on their future utilisation plan.
Further, there was an impairment reversal in Assets Held for Sale in Vietnam to the extent of ` 3 crore (USD 0.3 million)
and land relating to Ludensheid Germany of ` 4 crore (USD 0.5 million) during the previous year.

HINDALCO INDUSTRIES LIMITED

Consumption of Stores and Spares

Freight and Forwarding Expenses (Net) - (b)(Gain)/ Loss on Change in Fair Value of Derivatives (Net)(Gain) /Loss on Foreign Currency Transactions and Translation (Net)

Less: Transferred to Capital Work-in-Progress/ Intangible Assets under development(a)

Details of lease expenses not included in the measurement of lease liabilities:

Integrated Annual Report 2021-22377

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(b)Freight and forwarding expenses are net of freight subsidy of ` 10 crore (31/03/2021: ` 54 crore) on sale of DAP.

(c)

Donation includes ` 10 crore (31/03/2021: ` 10 crore) paid to AB General Electoral Trust towards political donation, out of
which ` Nil (31/03/2021: of ` 10 crore) paid through Electoral Bonds.

(d)Miscellaneous expenses include ` 0.10 crore (31/03/2021: ` 0.04 crore) paid to a firm of solicitors in which one of the
Director of the Company is a partner.

(` in Crore)

37. Exceptional Income/ (Expenses) (Net)

Refer Note 1B(AC) for accounting policy on Exceptional Items(` in Crore)

Year ended

31/03/2021

Exceptional Income

841

127

Exceptional Expenses

(259)

(619)

582

(492)

Charitable Donation to support COVID 19 pandemic relief measures

-

(395)

(i)

Employee severance cost pursuant to restructuring program in a manufacturing unit in Novelis
Germany and in a mining operation in India

-

(131)

(j)

Exgratia amount paid to the employees for their contribution during COVID 19 pandemic

-

(54)

(k)

Provision related to Additional Surcharge (ASC) and Cross Subsidy Surcharge (CSS) levied on the
Company due to failure of the captive power producer (from whom the Company sourced powerin earlier years) to comply with the captive status criteria under Central Electricity Act, 2003

-

(39)

(259)

(619)

38. Other Comprehensive Income/ (Loss)

The disaggregation of changes to other comprehensive income (OCI) by each class is given below:(` in Crore)

Details of Exceptional Income/ (Expenses) are given below:(` in Crore)

Year ended

Year ended
31/03/2022

31/03/2021

Recognition of benefit received as a result of multiple favourable rulings from the Brazilian
Supreme Court that recognized the right to exclude certain taxes related to Program for Social
Integration (PIS) And Contribution for the Financing of Social Security (COFINS) on grossmethodology for the years 2009 to 2017, net of litigation cost. (Principal ` 367 crore ($ 50 million);Interest ` 241 crore ($ 33 million); Litigation cost ` (9) crore ($ 1 million)).

599-

Gain of sale of controlling interest (90% equity ownership) in Saras Micro Devices, Inc. by
Novel-is. As part of this transaction the Group has received total consideration of ` 112 crore($ 15 million). (refer Note 51 B)

112

(c)

Recognition of benefit received as a result of favourable rulings regarding tax rebates for sales
to Manaus, Brazilian Free Trade Zone (Reintegra). (Principal ` 60 crore ($ 8 million); Interest `25 crore ($ 4 million)).

85

-

(d)

Reversal of Employee severance cost pursuant to restructuring program in a manufacturing
unit in Novelis, Germany.

45

-

(e)

Renewable Energy Certificates (REC) recognised subsequent to approval received from Odisha
Electricity Regulatory Commission (OERC) permitting adjustment of excess REC purchased during
earlier years against future Renewable Power Obligation (RPO) and reversal of excess Renewal
Power Obligation (RPO) provision related to FY20 subsequent to Madhya Pradesh Electricity
Regulatory Commission (MPERC) order.

-

127

31/03/2022

(b)

Tax

Net

Gross

Tax

Net

Remeasurement of Defined Benefit Obligation

1,172

(289)

883

1,117

(308)

809

-

Remeasurement of Defined Benefit Obligationof Discontinued Operations

-

-

-

60

(9)

51

Change in Fair Value of Equity Instruments
designated as FVTOCI

1,211

(248)

963

4,358

(10)

4,348

-

-

-

-

-

-

2,383

(537)

1,846

5,535

(327)

5,208

(9)

3

(6)

(9)

3

(6)

(4,867)

1,403(3,464)(1,769)501(1,268)

Cost of Hedging Reserve

(75)

26

(49)

(168)

59

(109)

Foreign Currency Translation Reserve

525

-

525

959

-

959

(4,426)

1,432(2,994)

(987)

563

(424)

(2,043)895(1,148)

4,548

236

4,784

127

Exceptional Expenses(f)Loss on sale of a wholly owned subsidiary, ‘Hindalco do Brasil’ - (refer note 51)

(152)

-

(g)

Pursuant to the notification by Ministry of Environment, Forest and Climate Change (MoEFCC),
the Group has recognised a provision for expected cost of disposal of legacy ash lying in ash
dykes/ponds as at December 31, 2021. The above provision is estimated based on the plan for
disposal of ash and stabilisation of ash dykes/ponds (subject to approval of Pollution Control
Board) considering feasibility of extraction of ash from ash dykes/ponds.

(107)

-

HINDALCO INDUSTRIES LIMITED

Items that will not be reclassified toStatement of Profit and Loss (Net)

Share in Equity Accounted Investments(ii)

Items that will be reclassified to Statementof Profit and Loss (Net)
Change in Fair Value of Debt Instruments
Designated as FVTOCI
Effective portion of Cash Flow Hedges

841

378

(i)

31/03/2021

Gross

Exceptional Income(a)31/03/2021(h)Year ended
31/03/2022

31/03/2022

Total Other Comprehensive Income/ (loss)

Integrated Annual Report 2021-22379

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
39. Earnings Per Share (EPS)(` in Crore)

40. Segment Information:

Refer Note 1B(AB) for accounting policy on Segment Reporting

Description of each of the reporting segments is as under:Year ended
31/03/2022

31/03/2021

i.

Aluminium Segment: This segment represents Aluminium business of the Company and subsidiaries of the Company
namely, Utkal Alumina International Limited, Hindalco Almex Aluminium Limited, Suvas Holdings Limited and Minerals
and Minerals Limited.

14,201

5,182

ii.

-

-

Copper Segment: This segment represents Copper Business of the Company and subsidiaries of the Company namely,
Birla Copper Asoj Private Limited and Dahej Harbour and Infrastructure Limited.

14,201

5,182

iii.

Novelis Segment: This segment represents Novelis Inc, a wholly owned foreign subsidiary, engaged in producing and selling
aluminium sheet and light gauge products and operating in all four continents viz. North America, South America, Europe
and Asia. This is identified as a separate reportable segment based on its geographical area and regulatory environment.

(471)(1,699)iv.

All Other Segment: This segment represents remaining subsidiaries of the Group which are not part of the above segments.

--

Profit/ (Loss) from Discontinued Operations attributable to Owners of the Company(471)(1,699)Profit/ (Loss) attributable to Owners of the Company from Continuing and Discontinued
Operations

13,7303,483

2,224,071,351

2,224,224,042

2,968,669

1,172,360

2,227,040,020

2,225,396,402

1.00

1.00

Basic - Continuing Operations (`)

63.85

23.30

Diluted - Continuing Operations (`)

63.77

23.29

Basic - Discontinued Operations (`)(2.12)(7.64)

Diluted - Discontinued Operations (`)(2.12)(7.64)

Basic - Continuing and Discontinued Operations (`)

61.73

15.66

For Novelis segment:

Diluted - Continuing and Discontinued Operations (`)

61.65

15.65

For Novelis segment the Group uses “adjusted EBITDA” as its Segment income measurement. Adjusted EBITDA is earnings
before (a) depreciation and amortization; (b) finance cost - net; (c) interest income; (d) unrealized gains or losses on change
in fair value of derivative instruments, net, except for foreign currency remeasurement hedging activities, which are included
in segment income; (e) impairment loss or reversal on non financial assets, net; (f) gain or loss on extinguishment of debt;(g) restructuring costs; (h) profit or loss on plant property and equipment and intangibles sold or discarded, net; (h) othercosts/income, net; (j) litigation settlement, net of insurance recoveries; (k) sale transaction fees; (l) cumulative effect ofaccounting change, net of tax; (m) metal price lag; (n) exceptional income or cost; (o) business acquisition and otherintegration related costs; (p) purchase price accounting adjustments; and (q) gains or losses from discontinued operations,net of tax which is in line with the segment information for Novelis that has been reported in accordance with its US GAAP
financial information filed with the Securities Exchange Commission of the United States of America. Recognition andmeasurement differences between US GAAP and Ind AS accounting policies have been separately identified as part ofreconciliation in the segment information. Gains and losses on metal derivative contracts are not recognized in “Segment
income” until realized.

Profit/ (Loss) for the year from Continuing Operations
As per Consolidated Statement of Profit and Loss
Less: Non-Controlling Interests in Profit/ (Loss)
Profit/ (Loss) from Continuing Operations attributable to Owners of the Company
Profit/ (Loss) for the year from Discontinued Operations
As per Consolidated Statement of Profit and Loss
Less: Non-Controlling Interests in Profit/ (Loss)

Weighted average number of equity shares for calculation of EPS:
Weighted average number of equity shares for Basic EPS
Dilutive impact of Employee Stock Options Scheme
Weighted average number of equity shares for Diluted EPS
Face value of per Equity Share (`)
Earnings Per Share

Treasury shares are excluded from weighted-average numbers of equity shares used as a denominator in the calculation of EPS.
Stock options granted to the employees under various ESOP schemes are considered to be potential equity shares. They
have been included in the determination of diluted earnings per share to the extent to which they are dilutive. 538,978 shares(31/03/2021: 4,295,432 shares) options granted under Employee Stock option scheme but were not included in the calculationof diluted earnings per share because they are antidilutive for the period. Options can potentially dilute basic earnings per sharein the future depending on future share price of the Company. The stock options have not been included in the determinationof basic earnings per share. The details relating to stock options are under Note 41.

380

HINDALCO INDUSTRIES LIMITEDThe chief operating decision maker (CODM) primarily uses earnings before interest, tax, depreciation and amortisation (EBITDA)
as performance measure to assess the performance of the operating segments. However, the CODM also receives information
about the segment’s revenues, segment assets and segment liabilities on regular basis.
During the year, in line with the changes in the internal structure for reporting financial information to the entity’s chief operating
decision maker (CODM), the Group has changed its segment disclosure related to segment performance for Aluminium andCopper segments in the consolidated financial statements as per Ind AS 108 “Operating Segments”. Corporate expenses andcertain other items of income/expenses like (gain)/loss on disposals of property, plant and equipment (PPE), re-structuring
expenses, etc., which were previously included as a part of segment performance of Aluminium and Copper segments are now
excluded from segment performance of these segments as these are not considered to be directly related to operations of
Aluminium and Copper segments. There is no change in the measure of performance with respect to ‘Novelis Segment’ and‘All Other Segments’. The corresponding segment information of previous year has been restated accordingly.
A.

Segment Profit or Loss:
Segment’s performance are measured based on Segment EBITDA. Segment EBITDA is defined as under:
For Aluminium segment and Copper segment:
Segment EBITDA is “Earnings before Finance Costs, Exceptional Income / (Expenses), Tax Expenses, Depreciation andAmortization, Impairment of Non-Current Assets, Investment Income, Fair value gains/ (losses) on financial assets, share in
profit/ (loss) in equity accounted investments, Corporate Income/ (Expenses) and certain Unallocable Income/ (Expenses)
which are not related to the performance of the segment”.

Integrated Annual Report 2021-22

381

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
For All Other segments:

Following amount are either included in the measure of segment profit or loss reviewed by the CODM or are regularly
provided to the CODM:This segment represents remaining subsidiaries of the Group which are the separate legal entities. For this Segment
EBITDA is “Earnings before Finance Costs, Exceptional Income / (Expenses), Tax Expenses, Depreciation, Amortization
and Impairment of Non-Current Assets and certain expenditure not directly related to operations”.

(` in Crore)

Year ended

Segment EBITDA are as follows:

31/03/2022(` in Crore)

Year ended

Aluminium

CopperAll Others

TotalInterest Income - (a)

-

24

55

-

79

Gains/ (losses) on Financial Assets Measured at FVTPL (Net)

-

-

-

-

-

4,581

1,913

178

16

6,688

-

19

76

-

95

31/03/2022

31/03/2021

Novelis15,22912,727

Depreciation and Amortization - (b)Aluminium

13,0255,441

Impairment Loss/ (Reversal) of Non-Current Assets (Net) - (b)Copper

1,390

869

26

26

29,67019,063All Other Segments
Total Segment EBIDTA

Year ended 31/03/2021

Segment EBITDA reconciles to Profit/ (Loss) before Tax from Continuing and Discontinued Operations as follows:(` in Crore)

Novelis

Aluminium

CopperAll Others

TotalInterest Income - (a)

-

18

45

-

63

Gains/ (losses) on Financial Assets Measured at FVTPL (Net)

-

-

-

1

1

4,570

1,836

167

19

6,592

(2)

140

-

-

138

Depreciation and Amortization - (b)Year ended

Impairment Loss/ (Reversal) of Non-Current Assets (Net) - (b)31/03/2022

31/03/2021

Total Segment EBIDTA

29,67019,063Finance Cost

(3,768)(3,738)Depreciation and Amortization(6,729)(6,628)

(155)

(138)

6

5

164

(492)

Interest Income

146

118

Dividend Income

32

25

Gains/ (losses) on Financial Investments Measured at FVTPL (Net)

359

542

Adjustment on account of different accounting policies for Novelis Segment

323

585

Unallocable Income/ (Expense) (Net)

Other Unallocated Income/ (Expenses) (Net)(474)(1,437)

Profit/ (Loss) before Tax from Continuing Operations

19,574

7,905

Profit/ (Loss) before Tax from Discontinued Operations(464)(2,066)

Profit/ (Loss) before Tax from Continuing and Discontinued Operations

19,1105,839

Impairment Loss/ (Reversal) of Non-current Assets (Net)
Share in Profit/ (Loss) in Equity Accounted Investments (Net of Tax)
Exceptional Income / (Expenses) (Net)*

Exceptional Income / (Expenses) for the year ended March 31, 2022, exclude ` 418 crore which represents the principal portion of (a) PIS/COFINS related
tax credit income in Brazil ` 358 crore (net of litigation cost of ` 9 crore) and (b) tax rebates for sales to Manaus, Brazilian Free Trade Zone ` 60 crore, as
it is included in the results of Novelis segment.
*

382

NovelisHINDALCO INDUSTRIES LIMITED(a)

Represents interest income from customers/ security deposits etc. which are included in the measure of segment
profit or loss.

(b)

Not included in the measure of segment profit or loss but provided to the CODM.

Due to change in measurement of segments performance, segment EBITDA for “Aluminium Segment” and “Copper
Segment” have increased with corresponding change in “Unallocable Income/ (Expense) (Net)” as under:(` in Crore)

Year ended

B.

31/03/2022

31/03/2021

Aluminium Segment

793

586

Copper Segment

196

153

(989)

(739)

Segment Revenue:
For all reportable segments except Novelis, the segment revenue is measured in the same way as measured in theStatement of Profit and Loss.
In case of Novelis segment, CODM reviews its financial performance as those are reported under US GAAP, accordingly
Novelis segment revenue is measured as the revenue reported under US GAAP financial reporting. The difference between‘Segment Revenue’ reported under USGAAP and ‘Revenue’ reported under Ind AS together with any adjustment item
identified between US GAAP and Ind AS is shown as “Adjustment on account of different accounting policies for Novelis
Segment”.

Integrated Annual Report 2021-22

383

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
Sales between operating segments are eliminated on consolidation. Segment Revenue and reconciliation of the samewith total revenue as follows:(` in Crore)

Year ended

Segment assets and reconciliation of the same with total assets as follows:

31/03/2022

31/03/2021

Segment
Revenue

Intersegment
Revenue

Revenuefromexternalcustomers

Segment
Revenue

Intersegment
Revenue

Revenuefromexternalcustomers

Novelis127,747-

127,747

91,130-91,130

Aluminium

32,16929

32,14020,51815

20,503Copper

36,72326

36,69722,44614

22,432

279

-

279

230

-

230

Adjustment on account of different
accounting policies for Novelis Segment(1,804)-(1,804)(2,287)-(2,287)

Total

195,11455

195,059

132,037

29

132,008

All Other Segments

During the year ended March 31, 2022, there are two customers having more than 10% of the Group’s total revenue ormore than 10% of either of the reportable segments revenue.
Novelis’s ten largest customers accounted for approximately 54% and 55% of its segment’s total “Revenue from operations”
for the year ended March 31, 2022 and 2021, respectively, out of which one major customer contributes to 17% (` 22,037
crore) (31/03/2021: 16%, ` 13,781 crore) of the Novelis segment’s total “Revenue from Operations”.
Similarly in Copper segment also, one of the customer contributes more than 10% (` 4,282 crore) (31/03/2021: ` 2,250
crore) of the Copper segment’s total “Revenue from Operations”.
The Group’s operations are located in India and outside India. The amount of its revenue from external customers analysedby the country in which customers are located irrespective of origin of the goods or services are given below:(` in Crore)

Year ended

C.

31/03/2022

31/03/2021

India

46,55328,898Outside India

148,506

103,110

195,059

132,008

Segment Assets:
For Aluminium segment and Copper segment, segment assets are allocated based on the operations of the segment andthe physical location of the asset. However, certain assets like investments, equity accounted investments, loans, assets
classified as held for sale, current and deferred tax assets are not considered to be segment assets as they are managed
at corporate level. Further, corporate administrative assets of an entity having operation which are part of more than one
reporting segments are not allocated to individual segments as they also managed at corporate levels and does not
linked to any specific segment.
For Novelis segment, segment assets of are measured at the amount of total assets of Novelis Inc. as reported under US
GAAP financial reporting. The difference between ‘Segment Assets’ reported under USGAAP and ‘Total Assets’ reported
under Ind AS together with any adjustment items identified between US GAAP and Ind AS is shown as “Adjustment on
account of different accounting policies for Novelis Segment”.

384

HINDALCO INDUSTRIES LIMITEDIn case of All Other segments, Segment assets are measured in the same way as in the financial statements and all theassets are part of this segment as this segments represents the aggregation of subsidiaries which are the separate legal
entities and not part of any of above reportable segments.

Novelis
Aluminium
CopperAll Other Segments
Total Segment Assets
Investment Property
Investments (Non-Current and Current)
Equity Accounted Entities
Adjustment on account of different accounting policies for Novelis Segment
Assets of Discontinued Operations
Other Corporate Assets
Total Assets(` in Crore)

As at
31/03/2022
114,539
51,28019,407
415
185,6418
13,86351
12,74346
10,710223,062

31/03/2021
94,141
48,43014,982486
158,0397
16,85746
12,602107
2,088
189,746

Following amount are either included in the measure of segment assets reviewed by the CODM or are regularly provided
to the CODM:(` in Crore)

Investment Property
Investments (Non-Current and Current)

As at
31/03/2022
13
205

31/03/2021
14
230

During the year ended 31/03/2022, capital expenditure relating to Novelis, Aluminium, Copper and All Other Segmentsare ` 3321 crore, ` 1784 crore, ` 225 crore and ` 79 crore, respectively (31/03/2021: ` 3903 crore, ` 1405 crore, ` 193 croreand ` 12 crore, respectively).
Investment in associates and joint ventures accounted for by the equity method are not allocated to any of the reportablesegment.
The total of Non-Current assets excluding goodwill, financial assets, equity accounted investments and deferred tax assets
analysed by the country in which assets are located are given below.
(` in Crore)

As at
31/03/2022

31/03/2021

India

43,54043,463

Outside India - (a)45,99945,22089,53988,683

United States

22,342

21,495Asia and Other Pacific

7,342

6,968

Brazil

6,714

6,686

(a) Major geography wise break up of non-current asset located outside India:

Canada363

365

Germany

4,294

4,583

Rest of Europe

4,944

5,123

45,99945,220Integrated Annual Report 2021-22385

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
D.

Segment Liabilities:
For Aluminium segment and Copper segment, Segment liabilities are allocated based on the operations of the segment.
In measurement of Aluminium and Copper segment’s liabilities, items like borrowings, current and deferred tax liabilities,
liabilities associated with assets classified as held for sale etc. are not considered to be segment liabilities as they are
managed at corporate level. Further, corporate administrative liabilities of an entity having operation which are part ofmore than one reporting segments are not allocated to individual segments as they also managed at corporate levels
and does not linked to any specific segment.
In case of Novelis segment, segment liabilities are measured at the amount of all the liabilities of Novelis Inc., except
borrowings, as reported under US GAAP financial reporting. The difference between ‘Segment Liabilities’ reported under
USGAAP and ‘Total Liabilities’ reported under Ind AS together with any adjustment items identified between US GAAP
and Ind AS is shown as “Adjustment on account of different accounting policies for Novelis Segment”.
In case of All Other segments, Segment liabilities are measured in the same way as in the financial statements and all theliabilities except borrowings are part of this segment.
Segment liabilities and reconciliation of the same with total liabilities as follows:of the Company (“the Committee”). Each stock option when exercised would be converted into one fully paid-up equity
share of ` 1/- each of the Company. The stock options will vest in 4 equal annual instalments after completion of one
year of service from the date of grant. The exercise price shall be average price of the equity shares of the Company inthe immediate preceding seven day period on the date prior to the date on which the ESOS compensation committee
finalises the specific numbers of Options to be granted to the employees discounted by such percentage not exceeding
30 % (thirty percent) to be determined by ESOS Compensation Committee in the best interest of the various stake holders
in the prevailing market conditions. The maximum period of exercise is 5 years from the date of vesting and these stock
options do not carry rights to dividends or voting rights till the date of exercise. Further, forfeited/ expired stock options
are also available for grant. Further, on 23/09/2011 the ESOS 2006 has been partially modified and by which the Company
may grant 6,475,000 stock options to its eligible employees.
Under the ESOS 2006, till 31/03/2022 the Committee has granted 4,328,159 stock options (31/03/2021: 4,328,159 stock
options) to its eligible employees out of which 1,819,941 stock options (31/03/2021: 1,819,941 stock options) has been
forfeited/ expired and are available for grant as per term of the Scheme. A summary of movement of the stock options andweighted average exercise price (WAEP) is given below:
Year ended(` in Crore)

31/03/2022

As at
31/03/2022

31/03/2021

Novelis53,45836,733

Outstanding at beginning of the year

Aluminium

9,763

6,565

Copper11,541

8,091

6

156

74,76851,545

1,454

1,553

Liabilities of Discontinued Operations

93

119

Borrowings (Non-Current and Current)

63,23565,978

5,310

4,008

144,860

123,203All Other Segments
Total Segment Liabilities
Adjustment on account of different accounting policies for Novelis Segment

Other Corporate Liabilities
Total Liabilities

41. Employee Share-Based Payments

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

The Group has formulated employee share-based payment schemes with objective to attract and retain talent and alignthe interest of employees with the Group as well as to motivate them to contribute to its growth and profitability. The
Group views employee stock options as instruments that would enable the employees to share the value they create for
the Group in the years to come. At present four employee share-based payment schemes are in operation at Hindalco
Industries Limited, the Parent, whereas three employee share-based payment schemes are in operation at Novelis Inc., asubsidiary of the Company. Details of these employee share-based schemes are given below:
A.

Employee share-based payments at Parent(a)

Employee Stock Option Scheme 2006 (“ESOS 2006”):
The shareholders of the Company has approved on 23/01/2007 an Employee Stock Option Scheme 2006 (“ESOS 2006”)
under which the Company may grant 3,475,000 stock options to its permanent employees in the management cadre,whether working in India or out of India, including Managing and the Whole Time Directors of the Company, in one ormore tranches. The ESOS 2006 is administrated by the Nomination and Remuneration Committee of the Board of Directors

386

HINDALCO INDUSTRIES LIMITED

31/03/2021

Number

WAEP (` )Number

WAEP (` )391,304

118.73456,956

118.73Granted during the year

-

-

-

-

Forfeited during the year

-

-

-

-

Exercised during the year

(391,304)

118.73(65,652)118.73

Expired during the year

-

-

-

-

Outstanding at year end--

391,304

118.73

Vested and Exercisable at year end--

391,304

118.73

Under ESOS 2006, as at 31/03/2022 the range of exercise prices for stock options outstanding was ` Nil (31/03/2021:` 118.73) whereas the weighted average remaining contractual life for the stock options outstanding was Nil (31/03/2021:
1.02 years).
The weighted average share price at the date of exercise of ESOS 2006 was ` 428.07 per share (31/03/2021: ` 173.25
per share).
(b) Employee Stock Option Scheme 2013 (“ESOS 2013”):The shareholders of the Company has approved on 10/09/2013 an Employee Stock Option Scheme 2013 (“ESOS 2013”),under which the Company may grant up to 5,462,000 Options (comprising of Stock Options and/ or Restricted Stock Units(RSU)) to the permanent employees in the management cadre and Managing and Whole time Directors of the Company andits subsidiary companies in India and abroad, in one or more tranches. The ESOS 2013 is administered by the Nomination
and Remuneration Committee of the Board of Directors of the Company (“the Committee”). The stock options exercise
price would be determined by the Committee, whereas the RSUs exercise price shall be the face value of the equity sharesof the Company as at the date of grant of RSUs. Each stock option and each RSU entitles the holders to apply for and beallotted one fully paid-up equity share of ` 1/- each of the Company upon payment of exercise price during exercise period.
The stock options will vest in 4 equal annual instalments after completion of one year of the services from the date of
grant, whereas RSU will vest upon completion of three years of services from the date of grant. The maximum period of
exercise is 5 years from the date of vesting and these stock option/ RSU do not carry rights to dividends or voting rights
till the date of exercise. Further, forfeited/ expired stock options and RSUs are also available for grant.

Integrated Annual Report 2021-22387

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
In terms of ESOS 2013, till 31/03/2022 the Committee has granted 2,250,754 stock options and 2,252,254 RSUs (31/03/2021:
2,250,754 stock options and 2,252,254 RSUs) to the eligible employees of the Company and some of its subsidiarycompanies. Further, 301,381 stock options and 213,095 RSUs (31/03/2021: 296,996 stock options and 202,063 RSUs) havebeen forfeited/ expired and are available for grant as per term of the Scheme.
A summary of movement of stock options and RSUs and weighted average exercise price (WAEP) is given below:
Year ended
31/03/2022
Stock Options

31/03/2021
RSUs

Stock Options

RSUs

31/03/2022
Stock Options

31/03/2021
RSUs

Stock Options

RSUs

Number

WAEP (` )Number

WAEP (` )Number

WAEP (` )Number

WAEP (` )Outstanding at beginning of the year

4,277,702

226.06

1,279,318

1.00

4,448,494

217.95

1,297,506

1.00

Granted during the year

1,872,984

448.89612,560

1.00

582,240278.05

20,4871.00

Forfeited during the year

17,719278.05--(692,325)

218.31(38,675)

1.00

Re-instated during the year

(155,816)

306.39(59,936)

1.00

-

-

-

-

Exercised during the year

(687,701)

224.10(191,267)

1.00(60,707)218.80--

Number

WAEP (` )Number

WAEP (` )Number

WAEP (` )Number

WAEP (` )110,700

132.6855,691

1.00

415,944124.82

235,718

1.00

Expired during the year

-

-

-

-

-

-

-

-

Granted during the year

-

-

-

-

-

-

-

-

Outstanding at year end

5,324,888

302.51

1,640,675

1.00

4,277,702

226.06

1,279,318

1.00

Forfeited during the year

-

-

-

-

(37,086)

144.19(8,776)1.00

Vested and Exercisable at year end

2,370,953

228.84

966,695

1.00

1,565,967

218.6046,0581.00

Re-instated during the year

-

-

-

-

-

-

-

-

Exercised during the year

(80,067)132.52(17,106)

1.00(224,657)

119.02(171,251)

1.00

Expired during the year

(4,385)

119.45(11,032)

1.00(43,501)

119.45--

Outstanding at year end

26,248135.3927,553

1.00

110,700

132.6855,6911.00

Vested and Exercisable at year end

26,248135.3927,553

1.00

110,700

132.6855,691

1.00

Outstanding at beginning of the year

Under ESOS 2013, the range of exercise prices for stock options outstanding as at 31/03/2022 was ` 119.45 to ` 167.15(31/03/2021: ` 119.45 to ` 167.15) whereas exercise price in case of RSUs was ` 1 (31/03/2021: ` 1). The weighted averageremaining contractual life for the stock options and RSUs outstanding as at 31/03/2022 was 1.09 years and 2.73 years,
respectively (31/03/2021: 1.51 years and 2.54 years, respectively).

(c)Year ended

Under ESOS 2018, the range of exercise prices for stock options outstanding as at 31/03/2022 was ` 159.30 to ` 453.95(31/03/2021: ` 159.30 to ` 278.05) whereas exercise price in case of RSUs was ` 1 (31/03/2021: ` 1). The weighted averageremaining contractual life for the stock options and RSUs outstanding as at 31/03/2022 was 5.29 years and 5.50 years(31/03/2021: 5.43 years and 5.84 years) respectively.
The weighted average share price at the date of exercise of ESOS 2018 was ` 509.37 per share (31/03/2021: ` 332.87 pershare).

The weighted average share price at the date of exercise of ESOS 2013 was ` 460.52 per share (Number: ` 220.69 per share).

The fair values at grant date of stock options granted during the year ended 31/03/2022 was ` 176.04 to ` 220.36 (31/03/2021:` 144.57 to ` 181.09) and fair values in case of RSUs was ` 419.15 to ` 435.62 (31/03/2021: ` 269.56) respectively. The fairvaluation has been carried out by an independent valuer by applying Black and Scholes Model. The inputs to the model
include the exercise price, the term of option, the share price at grant date and the expected volatility, expected dividends
and the risk free rate of interest for terms of options.

Employee Stock Option Scheme 2018 (“ESOS 2018”):

The details of options granted, the key assumptions for Fair Value on the date of grant are as under:

The shareholders of the company has approved on 21/09/2018 an Employee Stock Option Scheme 2018 (“ESOS 2018”),
formulated by the company, under which the Company may grant not more than 13,957,302 (Stock Options and Restricted
Stock Units) to its permanent employees of the company in management cadre including Managing and the Wholetime Director of the company and its subsidiary companies in India and abroad, in one or more tranches. The ESOS
2018 is administered by the Nomination and Remuneration Committee of the Board of Directors of the Company (“theCommittee”) and the Hindalco Employees Welfare Trust (“Trust”). The Stock options exercise price would be determinedby the Committee whereas the RSU exercise price shall be the face value of the equity shares of the Company as at thedate of grant of RSUs. Each stock option and each RSU entitles the holders to apply for and be allotted one fully paid-up
equity share of Re. 1/- each of the Company upon payment of exercise price during the exercise period. The stock options
will vest in 4 equal annual instalments after completion of one year of the services from the date of grant, whereas RSU
will vest upon completion of three years of services from the date of grant. The maximum period of exercise is 5 years
from the date of vesting and these stock options/RSUs do not carry rights to dividends or voting rights till the date of
exercise. Further, forfeited/expired stock options and RSUs are also available for grant.
In terms of ESOS 2018, till 31/03/2022 the Committee has granted 7,062,503 stock options and 1,981,539 RSUs (31/03/2021:
5,189,519 stock options and 1,368,979 RSUs) to the eligible employees of the Company and some of its subsidiary companies.
A summary of movement of stock options and RSUs and weighted average exercise price (WAEP) is given below:(` in Crore)

Year ended
31/03/2022
Tranche VII

31/03/2021
Tranche VIII

Tranche V

Tranche VI

Stock Option

RSU

Stock Option

RSU

Stock Option

RSU

Stock Option

06/08/2021

06/08/2021

12/11/2021

12/11/2021

10/2/2021

10/2/2021

10/2/2021

443.251.00

453.951.00

278.051.00

278.05

Expected terms of options
granted (years)

4.43-6.43 yrs

6-8 years

4.43-6.43 yrs

6-8 years

4.43-7.43 yrs

8 years

4.43 yrs

Share price on grant date (` )443.10443.10453.95453.95279.40279.40279.40

Expected volatility (%)

41.10%

41.10%

41.45%

41.45%

59.50%

59.50%

59.50%

Expected dividend (%)

0.68%

0.68%

0.66%

0.66%

0.36%

0.36%

0.36%

5.64% - 6.22%

6.12% - 6.54%

5.54% - 6.12%

6.01% - 6.44%

5.46% - 6.17%

6.27%

5.46%

Grant date
Exercise price (` )Risk free interest rate (%)

The expected volatility was determined based on the historical share price volatility over the past period depending onlife of the options granted which is indicative of future periods and which may not necessarily be the actual outcome.
388

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22389

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(d) Stock Appreciation Rights 2018 (‘SAR 2018’):

Year ended

The Company till 31/03/2022 had granted 156,694 Option SAR and 50,665 RSU SAR (31/03/2021: 95,815 Option SAR
and 20,514 RSU SAR) under the Share Appreciation Rights Scheme 2018 (“SAR 2018”) to its eligible employees. Option
SAR to be vested in 4 equal annual instalments after completion of one year of the service from the date of grant and
RSU SAR will vest upon completion of three years of services from the date of grant. The SAR 2018 is administered by
the Nomination and Remuneration Committee of the Board of Directors of the Company (“the Committee”). The SAR
2018 have performance linked vesting conditions which are decided by the committee and are cash settled. The options
shall lapse in case of performance linked vesting conditions are not met. The range of exercise price of the Option SAR is` 159.30 to ` 443.25 and RSU SAR is ` 1 (31/03/2021: Option SAR is ` 159.30 to ` 278.05 and RSU SAR is ` 1).

31/03/2022

A Summary of movement of SAR 2018 and weighted average exercise price (WAEP) is given below:

Grant date

06/08/2021

06/08/2021

12/11/2021

12/11/2021

12/11/2021

12/11/2021

Valuation Date

31/03/2022

31/03/2022

31/03/2022

31/03/2022

31/03/2022

31/03/2022

Exercise price (` )278.051.00

218.80278.05443.25

1.00

Expected volatility (%)

40.05%

40.05%

40.05%

40.05%

40.05%

40.05%

Expected dividend (%)

0.53%

0.53%

0.53%

0.53%

0.53%

0.53%

Risk free interest rate (%)

5.34%

5.40% - 5.57%

5.26% - 5.72%

5.34%

5.57% - 6.30%

5.26% - 6.30%

As at

Year ended

31/03/2022
Option SAR
NumberRSU SAR

WAEP (` )31/03/2021

31/03/2021

NumberOption SAR

WAEP (` )NumberRSU SAR

WAEP (` )Number

WAEP (` )26/03/2019

09/08/2019

09/08/2019

12/06/2020

12/06/2020

10/02/2021

Valuation Date

31/03/2021

31/03/2021

31/03/2021

31/03/2021

31/03/2021

31/03/2021

1.00

218.801.00

159.301.00

278.05

Expected volatility (%)

50.90%

50.90%

50.90%

50.90%

50.90%

50.90%

Expected dividend (%)

0.31%

0.31%

0.31%

0.31%

0.31%

0.31%

Risk free interest rate (%)

5.45%

4.27%- 5.70%

5.34%

5.43%- 6.05%

5.45%-5.78%

5.41%

Exercise price (` )Outstanding at beginning of the year

76,652215.0020,514

1.00

44,668218.8011,333

1.00

Granted during the year

60,879255.5030,151

1.00

51,147203.79

9,181

1.00

Forfeited during the year

-

-

-

-

(19,163)

193.97--

Re-instated during the year

-

-

-

-

-

-

-

-

(39,604)223.29(20,669)

1.00

-

-

-

-

Expired during the year

-

-

-

-

-

-

-

-

The weighted average remaining contractual life as at 31/03/2022 for the Option SAR is 2.70 to 5.35 years (31/03/2021:
1.69 to 5.92 years) and for RSU SAR is 2.70 to 5.35 years (31/03/2021: 3.70 to 4.92 years).

Outstanding at year end

97,927236.82

29,996

1.00

76,652215.0020,514

1.00

The total intrinsic value at the end of the year of the vested Option SAR and RSU SAR is ` 2.42 crore (31/03/2021 ` 0.12 crore).

Vested and Exercisable at year end

47,115218.8013,565-

11,167218.80--Exercised during the year

The fair values per Option SAR as at 31/03/2022 was ` 248.38 to ` 440.84 (31/03/2021: ` 144.97 to ` 232.47) and for RSU
SAR as at 31/03/2022 was ` 552.96 to ` 560.60 (31/03/2021: ` 321.21 to ` 322.35). The fair value has been carried out by
an independent valuer by applying Black and Scholes Model. The inputs to the model include the exercise price, the termof option, the share price at grant date and the expected volatility, expected dividends and the risk free rate of interest.
The assumptions used for fair valuation are given below:
Year ended
31/03/2022
Grant date

26/03/2019

09/08/2019

12/06/2020

12/06/2020

10/02/2021

06/08/2021

Valuation Date

31/03/2022

31/03/2022

31/03/2022

31/03/2022

31/03/2022

31/03/2022

1.00

218.80159.301.00

278.05218.80

Expected volatility (%)

40.05%

40.05%

40.05%

40.05%

40.05%

40.05%

Expected dividend (%)

0.53%

0.53%

0.53%

0.53%

0.53%

0.53%

Risk free interest rate (%)

5.40%

5.72%

5.37% - 6.18%

5.40% - 5.82%

5.34%

5.72%

Exercise price (` )390

Grant date

HINDALCO INDUSTRIES LIMITED

B.

Employee share-based payments schemes at Novelis Inc (“Novelis”), a subsidiary of the Group:
The Novelis’s Board of Directors has authorized long term incentive plans (LTIPs), under which Hindalco stock appreciationrights (Hindalco SARs), Novelis stock appreciation rights (Novelis SARs), phantom restricted stock units (Phantom RSUs),
and Novelis Performance Units (Novelis PUs) are granted to certain executive officers and key employees.
The Hindalco and Novelis SARs vest at the rate of 33% per year, subject to the achievement of an annual performancetarget, and expire seven years from their original grant date. The performance criterion for vesting of the Hindalco andNovelis SARs is based on the actual overall Novelis operating EBITDA compared to the target established and approved
each fiscal year. The minimum threshold for vesting each year is 75% of each annual target operating EBITDA. Each Hindalco
SAR is to be settled in cash based on the difference between the market value of one Hindalco share on the date of grant
and the market value on the date of exercise. Each Novelis SAR is to be settled in cash based on the difference between
the fair value of one Novelis phantom share on the original date of grant and the fair value of a phantom share on the dateof exercise. The amount of cash paid to settle Hindalco and Novelis SARs are limited to three times the target pay out,
depending on the plan year. The Hindalco and Novelis SARs do not transfer any shareholder rights of Hindalco or Novelis
to a participant. The Hindalco and Novelis SARs are classified as liability awards and are re-measured at each reporting
period until the SARs are settled or cancelled. Novelis expenses each fiscal year’s SAR tranche(s) over the employee
requisite service period, which results in the expense being recorded on an accelerated basis.
The Phantom RSUs are based on Hindalco’s stock price. The Phantom RSUs vest either in full three years from the grant
date or 33% per year over three years, subject to continued employment with Novelis, but are not subject to performance
criteria. Each Phantom RSU is to be settled in cash equal to the market value of one Hindalco share. The pay out on the
Phantom RSUs is limited to three times the market value of one Hindalco share measured on the original date of grant. The
Phantom RSUs are classified as liability awards and expensed over the employee requisite service period (three years)
based on the Hindalco stock price as of each balance sheet date.

Integrated Annual Report 2021-22

391

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
In May 2016, the Novelis’s board of directors approved the issuance of Novelis PUs which have a fixed USD 100 value perunit and will vest in full three years from the grant date, subject to specific performance criteria compared to the establishedtarget. The Novelis PUs awards are not based on the Hindalco or Novelis stock prices and therefore are accounted for inaccordance with Ind AS 19 - Employee Benefits.
(a)(d) Particulars of share based paymenti.

Carrying amount and intrinsic value of liabilities given below:

Hindalco Stock Appreciation Rights (Hindalco SARs)

31/03/2022
Year ended
31/03/2022

31/03/2021

Total intrinsic value
at the end of theyear of liabilities(vested portion)

Total carrying
amount at the endof the year for
liabilities

Total intrinsic value
at the end of theyear of liabilities(vested portion)

113

18

118

60

WAEP (`)

Number

WAEP (`)

Hindalco SAR

13,038,526

158

12,441,966

177

Novelis SAR

1

1

3

4

Granted during the year

2,411,503

388

6,934,923

118

Phantom RSU

176

-

145

-

Forfeited during the year

(187,780)

177(465,886)

180

290

19

266

64

Exercised during the year

(6,976,625)

177(5,872,477)

151

Expired during the year

-

-

-

-

Outstanding at year end

8,285,624

208

13,038,526

158

Vested and Exercisable at year end

393,803164

3,220,946

ii.

31/03/2022
Number of options
exercised

197

Year ended
31/03/2022
WAEP (`)

Number

WAEP (`)

10,165

6,025

33,393

6,532

Granted during the year

-

-

-

-

Forfeited during the year

(4,933)

7,032(3,349)5,366

Exercised during the year

(1,660)6,200(19,879)

6,781

Expired during the year

-

-

-

-

Outstanding at year end

3,572

4,868

10,165

6,025

Vested and Exercisable at year end

3,572

4,868

10,1656,025(e)Weighted average
exercise price

6,976,625

177

5,872,477

151

Novelis SAR (price in ` )

1,660

6,200

19,8796,781

3,343,896-

2,403,369-

Unrecognised compensation expense
31/03/2022

31/03/2021(` in Crore)

Period over which
expense will berecognised (inyears)(` in Crore)

Period over which
expense will berecognised (inyears)

Hindalco SAR

41

2

37

2

Novelis SAR

-

-

-

-

Phantom RSU

73

2

78

2

Inputs to the model used to determine fair value are as under:Year ended

Year ended
31/03/2022

31/03/2021

31/03/2022

31/03/2021

Number

WAEP (`)

Number

WAEP (`)

Outstanding at beginning of the year

7,236,419-

4,747,316-

Granted during the year

1,787,910-

5,016,919-

Forfeited during the year

(266,713)-(124,447)-

Exercised during the year

(3,343,896)-(2,403,369)-

Expired during the year

-

-

-

-

Outstanding at year end

5,413,720-

7,236,419-

HINDALCO INDUSTRIES LIMITED

Number of options
exercisedYear ended(f)Phantom Restricted Stock Units (Phantom RSUs)

31/03/2021

Weighted average
exercise priceHindalco SAR (price in ` )Phantom RSU (price in ` )31/03/2021

NumberOutstanding at beginning of the year

Number of options exercised and the weighted average exercise price given below:
Year ended(b) Novelis Stock Appreciation Rights (Novelis SARs)

392

31/03/2021

Total carrying
amount at the endof the year for
liabilities

NumberOutstanding at beginning of the year(c)(` in Crore)

Year ended

31/03/2022

31/03/2021

Hindalco SAR

Novelis SAR

Hindalco SAR

Novelis SAR

Risk free interest rate (%)

3.59% - 6.58%

0.23% -0.23%

3.32% - 6.18%

0.03% - 0.08%

Dividend yield (%)

0.48%

0.00%

0.32%

-

Volatility (%)

39.49% - 49.69%

28.96% - 28.96%

40.4% - 57.1%

28.2% - 45.1%

Source of historical volatility

Hindalco historicalvolatility

Comparable
companies

Hindalco historicalvolatility

Comparable
companies

Model used

Monte Carlo
Simulation Model

Monte Carlo
Simulation Model

Monte Carlo
Simulation Model

Monte Carlo
Simulation Model

The weighted average remaining contractual life as at 31/03/2022 for the Hindalco SAR is 5 years (31/03/2021: 5 years)
and Novelis SAR is less than one year (31/03/2021: 1 year).
Integrated Annual Report 2021-22

393

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
C.

Effect of employee share-based payment transactions on profit or loss for the year and on financial position:(C)

Other Related Parties with whom there were transactions during the year:

For the year ended 31/03/2022, the Group recognised expenses of ` 35 crore (31/03/2021: expenses of ` 15 crore) related
to equity-settled share based transactions, whereas ` 307 crore as expenses (31/03/2021: expenses ` 286 crore) towards
cash-settled share based transactions accounted for as part of Employee Benefits Expenses. (refer Note 30)
During the year ended 31/03/2022, the Company has allotted 488477 fully paid-up equity share of ` 1/- each of the Company(31/03/2021: 461560) on exercise of equity settled options for which the Group has realised ` 6 crore (31/03/2021: ` 3 crore)
as exercise prices.

42. Related party transactions

(b)

(B)

394

2

Hindalco Employee’s Gratuity Fund, Renukoot

Post-Employment Benefit Plan

3

Hindalco Employee’s Provident Fund Institution, Renukoot

Post-Employment Benefit Plan

4

Hindalco Superannuation Scheme, Renukoot

Post-Employment Benefit Plan

5

Hindalco Industries Limited Employees’ Provident Fund II

Post-Employment Benefit Plan

6

Hindalco Industries Limited Senior Management Staff Pension Fund II

Post-Employment Benefit Plan

7

Aditya Birla Management Corporation Private Limited @Other related party in which Director is Interested(D) The following transactions were carried out with the related parties in the ordinary course of business
Nature of Transaction/Relationship1.

MNH Shakti Limited

India

2.

Hydromine Global Minerals (GMBH) Limited

British Virgin Islands

Aditya Birla Science & Technology Company Pvt. Limited

India

2.

Aditya Birla Renewable Subsidiary Limited

India

3.

Aditya Birla Renewable Utkal Limited

India

Aditya Birla Renewable Solar Limited

India

5.

France Aluminum Recyclage SPA.

France6.

Deutsche Aluminum Verpachung Recycling GMBH

Germany

Services renderedii.

Interest and dividend received
Interest received

Associates:

4.

i.

Other related party in which Director is interested

Principal Place of Business

Joint Ventures:

1.

Post-Employment Benefit Plan

The Company and its subsidiary, Utkal Alumina International Limited, are members of Aditya Birla Management Corporation Private Limited (ABMCPL), a
company limited by guarantee formed for the purpose of its members to mutually avail and share common facilities, expertise and other support charged
on cost basis.

(A) List of Related Parties with joint control and significant influence:(a)Relationship

Hindalco Employee’s Gratuity Fund, Kolkata@

The Group’s related parties principally consist of its associates, joint ventures, other related parties and its key managerial
personnel. The Group routinely enters into transactions for sale and purchase of products and rendering and receiving services
with these related parties. Transactions and balances between the Parent, subsidiaries and fellow subsidiaries and trusts,
which are related parties of the Company, have been eliminated on consolidation. List of all the related parties to be included
in consolidated related parties disclosures and details of transactions and balances between the Group and other relatedparties are disclosed below:

Name of the Related Party

Name of the Related Party
1

Name of the Related Party

RelationshipMr. Satish Pai - Managing Director

Executive Directors

2

Mr. Praveen Maheshwari -Whole time Director & Chief Financial Officer

Executive Directors

3

Mr. Kumar Mangalam Birla

Non Executive Directors

4Smt. Rajashree Birla

Non Executive Directors

5

Mr. D Bhattacharya (Resigned w.e.f. 2nd March, 2022)

Non Executive Directors

10

15

10

2

2
2

iii.

Purchase of Materials, Capital Equipment and Others

25

20

Associates

25

20

iv.

Contribution to

213

208

213

208

v.

Services received

615

433

Associates

17

16

598

417

8

-

Other related party in which Director is interested
vi.

Investments, Deposits and Loans
Investments made during the year

8

-

12

5

  Associates

45   Joint Ventures

8-

Investments, Deposits and Loans, returned back during the year(E)

31/03/2021

15

2  Associates

1

31/03/2022  Associates

Post-Employment Benefit Plan

Key Managerial Personnel:(` in Crore)

Year ended

Outstanding Balances(` in Crore)

Nature of Transaction/RelationshipYear ended
31/03/2022

31/03/2021

106

102

6

Mr. A.K.Agarwala

Non Executive Directors

Receivables and Advances

7

Mr. K.N. Bhandari

Non Executive Directors

Other related party in which Director is interested

106

102

8

Mr. Y.P. Dandiwala

Non Executive Directors

Payables

81

38

9

Mr. Anant Maheshwari

Non Executive Directors

Associates

2

2

10

Ms. Alka Bharucha

Non Executive Directors

Other related party in which Director is interested

79

36

Loans and Deposits (Given)

36

41

11

Dr. Vikas Balia

Non Executive Directors

Associates

36

41

12

Mr. Sudhir Mital

Non Executive Directors

All outstanding balances are unsecured and are payable in cash.

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22395

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(F)

The amount for which the Group is contingently liable are given below:

Compensation of Key Managerial Personnel of the Company(` in Crore)

Year ended

(a)

(b)

(c)

As at

31/03/2022

31/03/2021

Remuneration of Executive Directors - (i) and (ii)54

30

Short term employment benefit

52

28

Post employment benefits22

Remuneration to erstwhile Managing Director - (iii)44

Post-employment benefits

44Remuneration of Non Executive Directors

98Commission and Sitting Fees

9

8

(i)

Excludes amortisation of fair value of employee share-based payments under Ind AS 102.

(ii)

As the liabilities for defined benefit plans and leave entitlements are provided on actuarial basis for the Company as
a whole, the amounts pertaining to Key Management Personnel are not included.

(iii) The Board approved pension of Mr. D. Bhattacharya of ` 0.335 crore per month and other post-employment benefits forhis past service when he was the Managing Director of the Company. The present value of the above pension liability
determined based on the actuarial valuation is accounted by the Group in the consolidated financial statements. Amountcharged as expenses in the consolidated statement of profit and loss during the year towards such post-employment
benefit amounting to ` 3 crore (31/03/2021: ` 3 crore) has been disclosed as a part of managerial remuneration above,and does not include the impact of actuarial (gains)/losses recognised in other comprehensive income.

(a)

		

31/03/2022

31/03/2021

Tax matters - Direct Taxes - (i)52Tax matters - Indirect Taxes - (ii)

693

640

Legal and Other matters - (iii)

224

300

Claims against the Group not acknowledged as debt

(i)

		

(ii)

		

(iii) Legal and Other matters:
In addition to above matters certain Group companies are involved in several other legal claims including
revenue matters, environmental matters, civil and Labour matters.
(b) Other money for which the Group is contingently liable:

Refer Note 1B(L) for accounting policy on Provisions and Contingencies

The Group is party to, and may in the future be involved in, or subject to, disputes, claims and proceedings arising in
the ordinary course of our business, including some we assert against others, such as environmental, health and safety,
product liability, employee, tax, personal injury and other matters. The Group has established a liability with respect tocontingencies for which a loss is probable and estimable. While the ultimate resolution of and liability and costs related
to these matters cannot be determined with certainty, the Management does not believe any of these pending actions,individually or in the aggregate, will materially impact our operations or materially affect our financial condition or liquidity.
The Group’s estimates involve significant judgment, and therefore, the estimate will change from time to time and actual
losses may differ from the current estimate. Management review the status of, and estimated liability related to, pending
claims and civil actions on a quarterly basis. The evaluation model includes all asserted and unasserted claims that canbe reasonably identified including claims relating to our responsibility for compliance with environmental, health andsafety laws and regulations in the jurisdictions in which the Group operate or formerly operated. The estimated costs in
respect of such reported liabilities are not offset by amounts related to insurance or indemnification arrangements unlessotherwise noted.

396

HINDALCO INDUSTRIES LIMITEDTax matters - Indirect Taxes:
There are pending litigations for various matters relating to customs, excise duty and service tax, VAT acrossvarious entities in the Group involving demands, including interest and penalties.

43. Contingent Liabilities and Commitments
Contingent Liabilities

Tax matters - Direct Taxes:
The Group has ongoing disputes with direct tax authorities in various tax jurisdictions relating to tax treatment ofcertain items in the Company and some of its subsidiaries. These mainly include claims disallowed, tax treatmentof certain items of income/expense, use of certain tax incentives or allowances, etc. in their tax computation.

(i)

A.

(` in Crore)(c)
B.

Customs Duty on Raw Materials imported under Advance License, against
which export obligation is to be fulfilled.

24-

For contingent liabilities relating to associates and joint ventures, if any, are given in Note 48 D and 48 E.

Commitments(` in Crore)
As at
31/03/2022

31/03/2021(a) Estimated amount of contracts remaining to be executed on capital accountand not provided for

1,122

818

(b) Purchase commitments in relation to Materials and Services (net of advances)

95,94673,924The Group’s commitments with regard to various items in respect of:(c) The Company has given the following undertaking in connection with the loanof Utkal Aluminium International Limited (UAIL), a wholly owned subsidiary:- To hold minimum 51% equity shares in UAIL.

Integrated Annual Report 2021-22397

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(` in Crore)

44. Capital Management
The Group’s objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns
to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of capital is reviewed
periodically with reference to operating and business plans that take into account capital expenditure and strategic investments.
Apart from internal accrual, sourcing of capital is done through judicious combination of equity and borrowing, both shortterm and long term. Net debt (total borrowings + lease liabilities) to equity ratio is used to monitor capital. No changes weremade to the objectives, policies or processes for managing capital during the years ended March 31, 2022 and March 31, 2021.

Note No.

31/03/2022

31/03/2021

0.82

1.01

31/03/2021

Amortised
Cost

Fair value
through
OCI

Fair value
through
P&L

Amortised
Cost

Fair value
through
OCI

Fair value
through
P&L

Borrowings, Non-Current

51,635--58,985--

Borrowings, Current

11,600

-

-

6,993

-

-

Financial Liabilities
Borrowings

As at

Debt Equity ratio

As at
31/03/2022

18A & 18B

Lease Liabilities

2

1,251

-

-

1,228

-

-

Supplier’s Credit

19

2,456

-

-

255

-

-

45. Financial Instruments

Trade Payables

20

36,309-5,073

23,464-

4,771

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

Derivatives

46

-

-

11,121

-

-

4,028

A

Fair Value Measurements

Other financial Liabilities

3,746

-

-

2,664

-

-

106,997-

16,194

93,589-8,799

As at March 31, 2022 and March 31, 2021, the Group was in compliance with all of its debt covenants for borrowings.

(a)

The following table shows the carrying amount of financial assets and financial liabilities by category.
(` in Crore)

As atAmortised
Cost

Fair value
through
OCI

31/03/2021
Fair value
through
P&L

Amortised
Cost

Fair value
through
OCI

Loans and Deposits

Quoted Equity Instruments

-

8,239

-

-

7,398

-

Unquoted Equity Instruments

-

48

-

-

30

-

-

-

24

-

-

25

Mutual Funds

-

-

5,230

-

-

9,085

Bonds & Debentures

-

-

152

-

-

164

Government Securities

-

375

-

-

385

-

10,977

-

-

7,570

-

-

-

-

662

-

-

769

14

5,753

-

-

470

-

-

Trade receivables

12

20,340-736

12,725

-

287

Loans

7

57

-

-

59

-

-

Derivatives

46

-

-

3,671

-

-

1,751

Investment in Equity Instrument- Quoted

2,537

-

380

1,539

-

819

National Aluminium Company Limited

39,664

8,662

10,85522,363

7,813

12,900

6A & 6B

Investments in Debt Instruments

6A & 6B

Cash & Cash Equivalents

13

Cash & Bank
Liquid Mutual Funds
Bank Balances other than cash & cash
equivalents

Other financial assets
Total Financial Assets

398

31/03/2022

HINDALCO INDUSTRIES LIMITED

8A & 8B

31/03/2021

Note No.

Carrying Value

Fair Value

Carrying Value

Fair Value

7 & 8A

428

428

340

340

18A

57,814

57,66759,907

62,130Financial Assets (Non-Current)

6A & 6B

Investments in Preference Shares(` in Crore)

As atFair value
through
P&L

Financial Assets
Investments in Equity Instruments

Total Financial Liabilities(b) The following table shows fair value for financial assets and financial liabilities measured at amortised cost.

31/03/2022
Note No.

21A & 21B

Financial Liabilities (Non-Current)
Borrowings, Non-Current #Fair values for current financial assets and financial liabilities have not been disclosed because their carrying amount are a reasonableapproximation of their fair values.
#
Carrying amount includes current portion of debt shown under short term borrowing and excludes deferred payment liabilities.
Fair Value of borrowings does not include interest accrued but not due.
The Company had acquired certain equity instruments for purpose of holding for a longer duration and not for the purpose of selling innear term for short term profit. Such instruments have been categorized as FVTOCI.

(C) Derecognition of Investments in Equity Instruments designated at FVTOCI(` in Crore)

Year ended
31/03/2022

Total

31/03/2021

Fair value on
the date ofderecognition

Cumulative gain orloss on disposal

Fair value on
the date ofderecognition

Cumulative gain orloss on disposal

388

303

-

-

388

303

-

-

Integrated Annual Report 2021-22399

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
B

Fair Value Hierarchy
The following table shows the details of financial assets and financial liabilities, including their levels in the fair value
hierarchy.
(a)Financial assets and liabilities measured at fair value - Recurring fair value(` in Crore)

As at
31/03/2022
Note No.

Level 1

Level 231/03/2021
Level 3

Level 1

Level 2

Level 3Financial Assets
Investments in Equity Instruments

6A & 6B

Investments in Debt Instruments

6A & 6B(` in Crore)

-

-

7,398

-

-

-

-

48

-

-

30

-

24

-

-

25

-

As at April 01, 2020

Unquoted Equity
Instruments

Unquoted Debt
Instruments

Derivatives

Contingent
Consideration

Total

35

224

(48)

-

211

-

-

-

-

-

-

Sale

-

(49)

(13)

-

(62)

5,228

2

-

9,081

4

-

Sale of Business

-

-

-

802

802

Bonds & Debentures

-

-

152

-

77

87

Gain/(losses) recognised in Profit or loss

-

2

42

20

64

Government Securities

235

140

-

262

123

-

(5)

-

2

-

(3)

Exchange difference

-

-

1

(3)

(2)

662

-

-

769

-

-

Transfer from Level 1 & 2

-

6

-

-

6

Transfer to Level 1 & 2

-

(96)

-

-

(96)

As at March 31, 2021

30

87

(16)

819

920

Acquisitions

22

-

-

-

22

Sale

-

(10)

(44)

-

(54)

Sale of Business

-

-

-

-

-

Gain/(losses) recognised in Profit or loss

-

8

47

-

55

(4)

-

13

-

9

Mark down to fair value

-

-

-

(454)

(454)

Exchange difference

-

-

-

15

15

Transfer from Level 1 & 2

-

67

-

-

67

Transfer to Level 1 & 2

-

-

-

-

-

As at March 31, 2022

48

152

-

380

580

As at March 31, 2022

-

-

9

-

9

As at March 31, 2021

-

-

5

-

5

Mutual Funds

Cash & Cash Equivalents

13

Liquid Mutual Funds
Trade Receivables

12

-

736

-

-

287

-

Derivatives

46

-

3,671

-

-

1,751

-

8A & 8B

-

-

380

-

-

819

14,364

4,573

580

17,5102,267

936

Other Financial Assets
Total Financial Assets
Financial Liabilities
Derivatives

46-

11,121

-

-

4,012

16

Trade Payables

20

-

5,073

-

-

4,771

-

-

16,194

-

-

8,783

16

Total Financial Liabilities(b) Financial assets and liabilities measured at amortised cost for which fair value disclosure is given(` in Crore)

As at
31/03/2022

31/03/2021

Note No.

Level 1

Level 2

Level 3

Level 1

Level 2

Level 37 & 8A

-

-

428

-

-

340

Financial Assets
Loans and Deposits
Financial Liabilities
Borrowings, Non-Current

18A-

57,667--

62,130-Level 1: Hierarchy includes financial instruments valued using quoted market prices. Listed equity instruments and tradeddebt instruments which are traded in the stock exchanges are valued using the closing price at the reporting date. Mutual
funds are valued using the closing NAV.
400

Disclosure of changes in level 3 items for the period ended 31/03/2022 and 31/03/2021 respectively

8,239

Unquoted Equity Instruments
Investments in Preference Shares

Level 3: If one or more significant inputs is not based on observable market data, the instrument is included in level 3. Thisis the case for unlisted equity instruments and certain debt instruments which are valued using assumptions from market
participants. Valuations for certain derivatives for which forward prices are not observable, have been valued using forward
prices for a nearby geographical market and adjusted for historical spreads between cash prices of the two markets.
(c)

6A & 6B

Quoted Equity Instruments

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

HINDALCO INDUSTRIES LIMITED

Gain/(losses) recognised in OCI

Gain/(losses) recognised in OCI

Unrealised Gain/ (loss) recognised in profit
and loss relating to assets and liabilities heldat the end of reporting period:

Transfers from level 1 and 2 to level 3 and out of level 3 for unquoted debt instruments is based on unavailability/availabilityof market observable inputs as on the reporting date. The Company’s policy is to recognise transfers into and transfers
out of fair value hierarchy levels as at the end of the reporting period.

Integrated Annual Report 2021-22

401

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
Gas, Diesel Fuel) are the major price risks that adversely impact the business. Hedging decisions are based on avariety of factors, including risk appetite of the business and price View. Such Hedge decisions are usually done forthe next 1-15 quarters.

Valuation Process
Some of the Group’s assets and liabilities are measured at fair value for financial reporting purposes. The Managementof the Group has set up a team in the finance department which performs the valuation of financial assets and liabilities.

Embedded Derivatives

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

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

Valuation techniques used for valuation of instruments categorised as level 3.

Novelis business model is conducted under a conversion model which allows us to pass through increases or decreases
in the price of aluminium to our customers . Derivative instruments are used to preserve conversion margins andmanage timing differences associated with metal price lag related to base aluminium price. Novelis also uses several
sources of energy such as natural gas, electricity, fuel oil and transport oil in manufacturing and delivery of its products.

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

The table below summarises the gain/(loss) impact on account of increase in the commodity prices on the Group’s
equity and profit for the period.

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

(` in Crore)

Price Index

Forward prices are not observable for Oswego, New York facility and electricity swaps which is derived based on forward
prices of a geographically nearby market with adjustments for historical spreads of cash prices between the two markets.
Valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit considerations.

Increase in
Rate/PriceContingent Consideration is recognised based on discounted value of amount estimated to be receivable. Discount rateused for determination are based on credit risk of the purchaser. Refer Note 50 on Discontinued Operations.

46. Financial Risk Management and Derivative Financial InstrumentsA

31/03/2021

Change inStatement ofProfit & Loss

Changein OtherComponentsof Equity

Change inStatement ofProfit & Loss

Changein OtherComponentsof Equity

Aluminium

LME

10%

(34)

(2,528)(45)(1,325)

Copper

LME

10%

(847)

-

(686)

(24)

Refer Note 1B(R) for accounting policy on Derivatives and Hedge AccountingGold

LBMA/ MCX

10%

(136)

-

(104)

-

Financial Risk Management

Silver

LBMA

10%

(10)

-

(19)

-

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

Zinc

LME

10%

2

-

4

-

Local Market
Premium

Midwest Premium/
European Duty Paid

10%

-

-

(2)

-

Coal

API IV

10%

-

-

-

-

Furnace Oil

AG Platts

10%

-

-

-

6

Electricity

National Grid/
NYMEX

10%

-

-

-

4

Natural Gas

ICE Brent/ Henry
NYMEX

10%

1

29

1

18

Diesel FuelEIA Flat Tax OnHighway

10%

-

12

-

8

(a)

Market Riski

Commodity Price Risk
Hindalco’s India Operations consist of two businesses – Copper Business and Aluminium Business. The Copper
Business works under a “Custom Smelting” model wherein the focus is to improve the processing margin. The timing
mis-match risk between the input and output price, which is linked to the same international pricing benchmark, iseliminated through use of derivatives. This off-set hedge model (through use of derivatives) is used to manage thetiming mis-match risk for both Commodity (Copper and Precious Metals) and Currency Risk (primarily, USD/INR). The
Copper Business also has a portion of View Based exposure for both Commodity and Currency, beyond the abovetiming mis-match risk. Lower Copper Prices, Stronger USD/INR exchange rate and Higher “Other Input” Prices (eg.
Coal, furnace oil, natural gas etc) are the major price risks that adversely impact the business. Here, the Company
may use derivative instruments, wherever available, to manage these pricing risks. A variety of factors, including therisk appetite of the business and price view, are considered while taking Hedging Decisions. Such View based hedges
are usually done for the next 1-8 quarters.
The Aluminium Business is a vertically integrated business model wherein the input and output pricing risks are
independent of each other, i.e. – are on different pricing benchmarks, if any. Here, the Group may use derivative
instruments, wherever available, to manage its pricing risks for both input and output products. Lower Aluminium
Prices, Stronger USD/INR exchange rate and Higher Input Prices (e.g. Alumina, Furnace Oil, Coal, Electricity, Natural

402

Year ended
31/03/2022

HINDALCO INDUSTRIES LIMITED

Decrease in prices by 10% will have equal and opposite impact in financial statements. Sensitivity analysis has been
computed by stress testing the market price of the underlying price index on the outstanding derivative position as
on the reporting date by assuming all other factors constant.
ii

Foreign Currency Risk
Exchange rate movements, particularly the United States Dollar (USD) and Euro (EUR) against Indian Rupee (INR)
and Euro, the Swiss franc, the Brazilian real and the Ko e portion of revenues are denominated in the Euro, the Groupbenefits as the franc weakens but is adversely affected as the franc strengthens. In South Korea, for local currency

Integrated Annual Report 2021-22403

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
operating costs and U.S. dollar denominated selling prices for exports, the Group benefits as the won weakens but are
adversely affected as the won strengthens. In Brazil, where the Group has predominately U.S. dollar selling prices andlocal currency manufacturing costs, it benefits as the real weakens, but is adversely affected as the real strengthens.
		iiiInterest Rate Riska

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

		

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

		

The table below summarises the (gain)/loss impact on account of increase in the benchmark interest rates on theGroup’s equity and profit for the period.

The Group’s exposure to foreign currency risk at the end of the reporting period expressed in INR, is as follows:
Unhedged Foreign Currency Payable / (Receivable)(` in Crore)

Currency Pair

As at
31/03/2022

31/03/2021

USD

-

29

GBP

281

(2)

NOK

1

1

CAD

19

12

AUD

-

-

CHF

348

11

BRL

-

(14)

JPY

(3)

(4)

646

33

Assets and liabilities that are naturally hedged against future transactions are excluded for the purpose of above
disclosure.

(` in Crore)

Increase in
Rate/Price

Interest rate on floating rateborrowingsbYear ended
31/03/2022

31/03/2021

Change inStatement ofProfit & Loss

Change in Other
Components ofEquityChange inStatement ofProfit & Loss

Change in Other
Components ofEquity(13)(1,158)32(1,110)

USD_INR

10%

EUR_INR

10%

-

-

4

1

EUR_USD

10%

121

89

291

146

BRL_USD

10%

80

117

34

68

KRW_USD

10%

138

322

91

244

CAD_USD

10%

9

15

9

18

GBP_USD

10%

304

-

13

-

CHF_USD

10%

(27)

25

24

4

CNY_USD

10%

12

-

35

-

GBP_CHF

10%

6

-

6

-

EUR_CHF

10%

244

45

190

37

EUR_GBP

10%

170

-

137

-

EUR_CNY

10%

1

-

9

3

EUR_KRW

10%

1

1

1

2

Decrease in prices by 10% will have equal and opposite impact in financial statements.Sensitivity analysis has been
computed by stress testing the market price of the underlying currency index on the outstanding derivative position
and unhedged exposure as on the reporting date by assuming all other factors constant.

404

HINDALCO INDUSTRIES LIMITED

Change in Other
Components ofEquityChange inStatement ofProfit & Loss

Change in Other
Components ofEquity

(193)

-

(210)

-

Interbank Offered Rates (IBOR) Reform
The following table contains details of all financial instruments that are referenced to IBOR which have not yet
transitioned to an alternative interest rate benchmark (ARR):(` in Crore)

Increase in Rate/Price

31/03/2021

Change inStatement ofProfit & Loss

Decrease in rates by 100 bps will have equal and opposite impact in financial statements.

The table below summarises the gain/(loss) impact on account of increase/decrease in the exchange rates on theGroup’s equity and profit for the period.
Currency Pair

100 bpsYear ended
31/03/2022

Non-derivative assets and liabilities

IBOR Exposure

Carrying Value(` in Crore)

Alternative Interest
Rate Benchmark

Long Term Foreign Currency Borrowings

USD 1M-6M LIBOR

9,371

Short Term Foreign Currency Borrowings

USD 1M LIBOR

114

Secured Overnight
funding Rate (SOFR)

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

Equity Price Risk
The Group’s exposure to equity securities price risk arises from movement in market price of related securities
classified either as fair value through OCI or as fair value through profit and loss. The Group manages the price risk
through diversified portfolio.
The table below summarises the gain/(loss) impact on account of increase in the equity share prices on the Group’s
equity and profit for the period.

(` in Crore)

Increase in
Rate/Price

Investment in Equity securities

10%

Year ended
31/03/2022

31/03/2021

Change inStatement ofProfit & Loss

Change in Other
Components ofEquityChange inStatement ofProfit & Loss

Change in Other
Components ofEquity

-

728

-

656

Decrease in prices by 10% will have equal and opposite impact in financial statements.Sensitivity analysis has been
computed by stress testing the market price of the underlying price index on the investment portfolio as on thereporting date.

Integrated Annual Report 2021-22405

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(b) Liquidity Risk(` in Crore)

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

The Group had access to the following undrawn borrowing facilities at the end of the reporting period:#(` in Crore)

15,197

10,734

Bank Overdraft and other facilities(ii)

Carrying
Value

Borrowings #9,235

15,625

13,50544,402

82,76765,978

Lease liabilities

357

244

433

725

1,759

1,228

Supplier’s credit

255

-

-

-

255

255

Trade payables

28,235---28,23528,235

2,531

10

-

123

2,664

2,664

Total Non Derivative liabilities

40,613

15,87913,93845,250115,680

98,360Derivatives

3,603

400

28

4,031

4,028

Total Derivative liabilities

3,603

400

28

-

4,031

4,028

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

(c)Credit Risk

Undrawn limit has been calculated based on the available drawing power and sanctioned amount at each reportingdate.

Credit risks is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails tomeet its contractual obligation, and arises principally from the Group’s receivables from customers.

Maturity Analysis

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

The table below shows the Group’s financial liabilities into relevant maturity groupings based on their contractual
maturities for all non-derivative financial liabilities and net settled derivative financial instruments. The amounts
disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying
balances as the impact of discounting is not significant.
(` in Crore)

Less than
1 Year

Between1 and 2 Years

Between2 and 5 YearsOver
5 Years

Total

Carrying
Value

Contractual maturities of financial
liabilities as at March 31, 2022
Non Derivatives

406

Total

Total cash outflow for leases for year ended 31/03/2022 is ` 720 crore (31/03/2021: is ` 631 crore), includes ROU Lease
payment, Short term lease and Low value lease - (refer note 18A(g) and 36).

As at
31/03/2021

Over
5 Years

Other financial liabilities

Financing Arrangement

As at 31/03/2022

Between2 and 5 Years

Non Derivatives

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

Between1 and 2 Years

Contractual maturities of financial
liabilities as at March 31, 2021

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

(i)Less than
1 YearBorrowings #14,132

3,099

23,001

39,516

79,74863,235

Lease liabilities

348

360

461

1,042

2,211

1,251

Supplier’s credit

2,459

-

-

-

2,459

2,456

Trade payables

41,382---

41,382

41,382Other financial liabilities

3,607

13

-

126

3,746

3,746

Total Non Derivative liabilities

61,9283,472

23,462

40,684

129,546

112,070

Derivatives

10,649464

10-

11,123

11,121

Total Derivative liabilities

10,649464

10-

11,123

11,121HINDALCO INDUSTRIES LIMITED

Credit risk is managed on an group basis. The Group has adopted a policy of dealing only with creditworthy
counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating risk of financial loss
from defaults. The Group invests only in those instruments issued by high rated banks/ institutions and government
agencies. The Group assesses the credit quality of the customer, taking into account its financial position, pastexperience and other factors. The Group’s investments in debt instruments and certain loans are considered as low
risk investments. The credit ratings of the investments are monitored for credit deterioration.
For some trade receivables the Group obtains security in the form of guarantees, deed of undertaking or letters ofcredit which can be called upon if the counterparty is in default under the terms of the agreement.
For other financial assets, the Group assesses and manages credit risk based on the credit rating. The Group
has assessed its other financial assets as high quality, negligible credit risk. The Group periodically monitors therecoverability and credit risks of its other financials assets including security deposits and other receivables. The
Group evaluates 12 month expected credit losses for all the financial assets for which credit risk has not increased.
In case credit risk has increased significantly, the Group considers life time expected credit losses for the purpose of
impairment provisioning.
The Group has used a practical expedient by computing the expected credit loss allowance for trade receivables
based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted
for forward-looking information.

Integrated Annual Report 2021-22407

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
Movement in the allowance for doubtful debts :(` in Crore)

As at
31/03/2022

31/03/2021

Balance at beginning of the year

(77)

(109)

Impairment losses (recognised)/ reversed on receivables

(10)

32

Amounts written off during the period as uncollectible

3-

Foreign exchange translation gains and losses
Balance at end of the year

B

-

-

(84)

(77)

Derivative Financial Instruments
The Group uses derivative financial instruments such as forwards, futures, swaps, options etc. to hedge its risks associatedwith foreign exchange fluctuation. Risks associated with fluctuation in the price of the products (copper, aluminium, coal,
furnace oil, natural gas, electricity, diesel and precious metals) are minimized by undertaking appropriate derivative
instruments. Derivatives embedded in other contracts are treated as separate derivatives when their risks and characteristics
are not closely related to their host contracts. In some cases, the embedded derivatives may be designated in a hedge
relationship. The fair values of all such derivative financial instruments are recognized as assets or liabilities at the balance
sheet date.
The Group also applies hedge accounting using certain foreign currency non-derivative monetary items which are usedas hedging instruments for hedging foreign exchange risk.
(a)Nature of Risk being Hedged

Price Risk

Foreign currency contracts

Exchange rate movement risk

Fair value Hedges

Liability

Asset

Liability

Asset(6,829)257(1,730)

72

(220)

441

(147)

179

-

-

-

-

Price Risk

(175)

59

(99)

285

Foreign currency contracts

Exchange rate movement risk

(12)

1

(10)

-

Embedded derivatives (i)Price Risk

(489)

5

(411)

120

-

-

-

-

(3,226)2,435(1,405)797

Commodity contracts

Price Risk

Foreign currency contracts

Exchange rate movement risk

Total

(195)

172

(210)

162

(11,146)

3,370(4,012)

1,615

Non - current
Cash flow hedges
Commodity contracts

Price Risk

Foreign currency contracts

Exchange rate movement risk

Non-designated hedges

408

31/03/2021

Averageexchange
rate

Notional
Value(in Million)

Fair Value
Gain/ (Loss)( (` Crore))

Averageexchange
rate

Notional
Value(in Million)

Fair Value
Gain/ (Loss)( (` Crore))(13)

Foreign Currency Forwards
Cash flow hedges
Buy

CHF_EUR

0.94

93

30

0.93

68

Buy

USD_CHF

0.91

27

-

0.89

3

(1)

Buy

BRL_USD

0.17

275

245

0.18

223

(91)

Buy

EUR_USD

1.18

219

(72)

1.21

116

(19)

Buy

USD_CAD

1.25

24

-

1.28

28

4

Buy

USD_KRW

1,176.23

657

(131)

1,129.30

490

(12)

Buy

EUR_CNY

-

-

-

7.91

4

-

Buy

EUR_INR

-

-

-

90.82

1

-

Buy

EUR_KRW

-

1

-

-

4

-

Sell

USD_INR

81.22

1,196

380

81.45

1,069

357

Buy

31/03/2021

Commodity contracts

Non-designated hedges

As at31/03/2022

452

225

Fair value hedges

Cash flow hedges
Commodity contracts

Currency
Pair(` in Crore)

As at
31/03/2022

Fair Value net Loss of Embedded Derivatives of ` (484) crore (31/03/2021: net Loss ` 291 crore) accounted for as partof Trade Payables.
(b) Outstanding position and fair value of various foreign exchange derivative financial instruments:

Total

The Asset and Liability position of various outstanding derivative financial instruments is given below:
Current

(i)

-

-

-

-

(442)

51

(391)

10

(5)

235

(31)

224

-

-

-

-

USD_INR

76.85

189

Total

(11)

74.45

159

(11)

(10)
(10)

Non-Designated
Buy

EUR_INR

98.96

0

-

88.57

8

(1)

Buy

GBP_INR

-

-

-

98.46

0

-

Buy

USD_INR

77.04

0

-

72.98

28

1

Buy

GBP_EUR

1.19

269

(12)

1.14

214

39

Buy

USD_KRW

1,198.22

282

(21)

1,108.75

184

(29)

Buy

EUR_USD

1.19

290

(65)

1.33

232

(49)

Buy

GBP_USD

1.35

33

6

1.35

19

(3)

Buy

USD_CHF

0.92

9

-

0.89

17

(6)

Buy

CAD_USD

0.80

16

1

0.72

16

11

Buy

USD_BRL

4.89

187

27

5.88

107

9

Buy

EUR_KRW

-

2

-

-

2

-

Buy

CHF_GBP

0.82

9

(1)

0.78

9

1

Buy

CHF_EUR

0.98

503

32

0.95

345

(17)

Buy

USD_CNY

6.32

77

3

6.84

99

(1)

Buy

EUR_CNY

7.33

2

-

8.04

12

(1)

Buy

SGD_INR

-

-

-

55.85

1

-

Sell

USD_INR

76.35

182

7

73.07

51

Commodity contracts

Price Risk

(16)

18

(5)

22

Foreign currency contracts

Exchange rate movement risk

(1)

1

-

-

Total

(464)

305

(427)

256

Total

(23)

(48)

Grand Total(11,610)

3,675(4,439)1,871

Grand Total

418

167

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

(2)

409

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(c)

Outstanding position and fair value of various foreign exchange non-derivative financial instruments used as hedging
instruments:
Note
No.

Currency
Pair

Currency

As at31/03/2022
Averageexchange
rate

Notional
Value(in Million)

Silver31/03/2021
Fair Value
Gain/ (Loss)(` in Crore)

Averageexchange
rate

Notional
Value(in Million)

Fair Value
Gain/ (Loss)(` in Crore)

Foreign currency monetary
items
Cash flow hedges
Debt

18B

USD_INR

74.55

185

(25)

73.13

580

11

Liability for Copper
Concentrate
Host Liability
Supplier Credit

19

USD_INR

75.51

695

USD_INR

74.77

324

Total

(19)

72.84

680

(19)

Average
Price/
Unit

Quantity

Notional
value(in Million)

Fair Value
Gain/ (Loss)(` in Crore)

6

(1)

Sell

USD

24

244,244

TOZ

Furnace Oil

Buy

USD

240

3,335

MT

1

10

Furnace Oil

Sell

USD

636

3,335

MT

2

-

Local Market Premiums

Sell

USD

-

-

MT

-

-

Local Market Premiums

Buy

USD

-

-

MT

-

-

Zinc

Buy

USD

4,135

950

Diesel Fuel

Buy

USD

-

-

Diesel Fuel

Buy

USD

5

Natural Gas

Buy

USD

6

MT

4

13

Gallons

-

-

3,600

MT

0

9

581,486

MMBtu

3

11
(789)

Commodity Options
Cash Flow Hedge

Unit

Notional
value(in Million)

Aluminium

Fair Value
Gain/ (Loss)(` in Crore)

Sell

USD

-

-

MT

-

-

Total

-

Embedded derivatives

Commodity Futures/Forwards/Swaps
Cash Flow Hedge

Fair Value Hedge

Aluminium

Sell

USD

3,165

1,366,316

MT

4,234

(7,199)

Aluminium

Buy

USD

3,481

6,074

MT

21

20

Copper

Sell

USD

-

-

MT

-

-

Furnace Oil

Buy

USD

-

-

MT

-

-

Diesel Fuel

Buy

USD

5

4,014,924

Gallons

21

26

Natural gas

Buy

USD

6

10,596,346

MMBtu

59

190

Electricity

Buy

USD

-

-

Mwh

-

Total

(6,963)ii

Copper

Sell

USD

9,838

120,552

MT

1,186

(487)

Gold

Sell

USD

1,949

29,697TOZ

58

2

Silver

Sell

USD

25

371,143

TOZ

9

-

Total

(485)

Grand Total(8,353)

Outstanding position and fair value of various commodity derivative financial instruments as at March 31, 2021:
Currency

Fair Value Hedge
Gold

Sell

INR

4,972,320

7,543

KGS

37,506(159)

Silver

Sell

USD

23

485,904

TOZ

11

(7)

CopperSell

USD

10,55237,600

MT

397

50

Total

(116)

Non-Designated

410

Unit

(8)

Outstanding position and fair value of various commodity derivative financial instruments as at March 31, 2022:
Currency

Quantity

Total

(39)
(83)

(d) Outstanding position and fair value of various commodity derivative financial instrumentsi

Average
Price/
Unit

Average
Price/ Unit

Quantity

Unit

Notional
value(in Million)

Fair Value
Gain/ (Loss)(` in Crore)

Commodity Futures/Forwards/Swaps
Cash Flow Hedge
Aluminium

Sell

USD

2,051

1,140,878

MT

2,340

(2,058)

Aluminium

Buy

USD

2,188

9,564

MT

21

20

Copper

Sell

USD

8,332

5,875

MT

49

(19)

Aluminium

Buy

USD

3,502

98,034

MT

343

186

Furnace Oil

Buy

USD

223

40,000MT

933

Aluminium

Sell

USD

3,041

115,141

MT

350(1,235)

CopperBuy

USD

10,16027,875

MT

283

62

Diesel Fuel

Buy

USD

3

4,788,000

Gallons

15

5Copper

Sell

USD

10,76335,500

MT

382

105

Natural gas

Buy

USD

3

12,900,000

MMBtu

34

3

Gold

Buy

INR

5,041,209

4,352

KGS

21,93951

Electricity

Buy

USD

28

226,420Mwh

6

Silver

Buy

USD

25

244,244TOZ

6-HINDALCO INDUSTRIES LIMITED

Total

(16)
(2,032)Integrated Annual Report 2021-22

411

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements

Currency

Average
Price/ Unit

Quantity

Unit

Notional
value(in Million)

Fair Value
Gain/ (Loss)(` in Crore)

Fair Value Hedge(e)

The following table presents details of amount held in Effective portion of Cash Flow Hedge and Cost of Hedging
Reserve and the period during which these are going to be released and affecting Statement of Profit and Loss.
(` in Crore)

Cash Flow Hedge

Gold

Sell

INR

4,841,222

7,109

KGS

34,416260

Silver

Sell

USD

25

1,032,196

TOZ

26

2

Copper

Sell

USD

8,564

46,325

MT

397

(76)

Total

As at
31/03/2022
Closing
Value
Cash Flow
HedgesWithin12 Months

Gain/(Loss)

31/03/2021

After
12 Months

Closing
Value
Cash Flow
HedgesWithin12 Months

After
12 Months

Gain/(Loss)

Gain/(Loss)

Gain/(Loss)

Gain/(Loss)

Gain/(Loss)(7,500)(7,315)(185)(2,154)(1,847)(307)

Copper

-

-

-

(19)

(19)

-

186

Release

ReleaseHedge Instrument Type

Non-Designated

Commodity Forwards

Aluminium

Aluminium

Buy

USD

2,181

160,664

MT

350

162

Aluminium

Sell

USD

1,994

197,499

MT

394

(616)

Copper

Buy

USD

8,899

34,450

MT

307

18

Furnace Oil

-

-

-

33

33

-

Copper

Sell

USD

8,544

38,725

MT

331

(71)

Diesel Fuel

23

23

-

2

2

-

Gold

Buy

INR

4,633,701

4,608

KGS

21,352(78)

Electricity

(1)

(1)

-

(30)

(30)

-

Silver

Buy

USD

26

1,037,171

TOZ

27

(12)

Natural Gas
Total

199

140

59

-

(5)

5

(7,279)(7,153)(126)(2,168)(1,866)

(302)

(25)

(25)

-

11

11

-

-

5

5

-

Silver

Sell

USD

24

1,162,387

TOZ

28

(5)

Furnace Oil

Buy

USD

271

7,446

MT

2

5

Furnace Oil

Sell

USD

373

7,446

MT

3

-

Local Market Premiums

Sell

USD

225

11,250MT

3(2)Liability for Copper

Local Market Premiums

Buy

USD

468

75

MT

-

-

Host Liability

USD_INR

(29)

(29)

Zinc

Buy

USD

2,795

2,550

MT

7

9

Supplier credit

USD_INR

(39)

(39)

Diesel Fuel

Buy

USD

3

252,000

Gallons

-

-

Total

(93)

(93)

-

16

16

-

Natural Gas

Buy

USD

3

420,000

MMBtu

1

(1)

Hedge Instrument Type

(591)

Currency Forwards

USD_INR

379

207

172

357

134

223

EUR_INR

-

-

-

-

-

-

Commodity Options

USD_EUR

(74)

(74)

-

(12)

(12)

-

Cash Flow Hedge

USD_BRL

242

169

73

(103)

(55)

(48)

(7)

USD_CAD

-

-

-

4

4

-

(7)

USD_KRW

(132)

(133)

1

(12)

-

(12)

USD_CHF

(1)

(1)

-

(1)

(1)

-

EUR_CHF

33

31

2

(15)

(15)

-

EUR_CNY

-

-

-

-

-

-

USD_INR

-

-

-

-

-

-

Total

447

199

248

218

55

163

Total

(6,925)(7,047)122(1,934)(1,795)

(139)

2,031

2,070

(39)

688

545

143

(4,894)(4,977)83(1,246)(1,250)4

Total

Aluminium

Sell

USD

2,200

45,000

MT

99

Total

Non derivative financial
instruments
Debt

USD_INR

Embedded derivatives
Fair Value Hedge
Copper

Sell

USD

8,434

113,831

MT

960

(302)

Gold

Sell

USD

1,724

38,284TOZ

66

5Silver

Sell

USD

26

498,103

TOZ

13

6

Total
Grand Total

412

Products/
Currency
Pair

HINDALCO INDUSTRIES LIMITED(291)(2,735)Currency Swaps

Deferred Tax on above

Integrated Annual Report 2021-22

413

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(` in Crore)

As at
Products/
Currency
Pair

31/03/2022
Closing
Value Costof Hedge
Reserve

Within12 Months

Gain/(Loss)

Silver(` in Crore)

31/03/2021

ReleaseOpening
BalanceReleaseNet Amountrecognised

Net Amountto P&L

After
12 Months

Closing
Value Costof Hedge
Reserve

Within12 Months

After
12 Months

Gain/(Loss)

Gain/(Loss)

Gain/(Loss)

Gain/(Loss)

Gain/(Loss)

-

-

-

-

-

-

Copper

(60)

(60)

-

22

22

-

Commodity Options

Aluminium

-

-

-

(7)

(7)

-

Cost of Hedging Reserve

Currency Swaps

USD_INR

-

-

-

-

-

-

Commodity

Currency Options

USD_INR

-

-

-

-

-

-

Forex

(60)

(60)

-

15

15

-

Total

183
(64)
119

36

Cost of Hedging Reserve

Commodity Forwards

Total
Deferred Tax on above

11(1,158)10(2,168)

(442)

(137)

(579)

9

234

Total

(310)

(3,380)(1,611)(126)(1,737)19(1,934)

Deferred Tax on above

180

978

477

(16)

461

(9)

688

Total

(130)

(2,402)(1,134)(142)(1,276)

10(1,246)

1

48

34

-

34

-

15

182

7

189

-

189

-

-

55

223

-

223

-

15

(19)

(78)

-

(78)

-

(5)

145

-

145

-

10

-

(39)

(39)

-

10

10

-

Total

Total
Amountrecycled

CTA

80(6,662)(47)(g) The following table presents the amount of gain/ (loss) recycled from Effective portion of Cash Flow Hedge andCost of Hedging Reserve and reference of the line item in the Statement of Profit and Loss where those amounts areincluded:(` in Crore)

Closing
BalanceYear ended
31/03/2022

31/03/2021(7,219)(882)

Cost of Materials Consumed

206

(509)

Other Expenses

(155)

3

(7,168)(1,388)

Revenue from Operations(2,168)(11,726)(6,742)(7,279)

234

(23)

(141)

(1)

(142)

2

354

Total

(1,934)(11,749)(6,883)79(6,804)(45)(6,925)

688

3,397

1,995

72

2,067

12

2,030

(1,246)(8,352)(4,888)151(4,737)(33)(4,894)

Total(1,169)

989

(5)

Forex

Deferred Tax on above(4,369)(5)

Cash Flow Hedges
Commodity

1,033

-

Amount added
to Non-Financial
AssetsClosing
Balance(1,343)21

Net Amountto P&L

CTA

Forex

21

(` in Crore)

Net Amountrecognised

Total
Amountrecycled

Commodity

Deferred Tax on above

The following tables presents the amount of gain/(loss) recognized in Effective portion of Cash Flow Hedge and Costof Hedging Reserve and recycled during the financial year 2021-22:
Opening
BalanceAmount added
to Non-Financial
AssetsCash Flow Hedges

Hedge Instrument Type(f)

The following tables presents the amount of gain/(loss) recognized in Effective portion of Cash Flow Hedge andrecycled during the financial year 2020-21:(h) The adjustment as part of the carrying value of inventories arising on account of fair value hedges is as follows:(` in Crore)

As atCost of Hedging Reserve
Commodity

15

(360)

(285)

-

(285)

-

(60)

Forex

-

-

-

-

-

-

-

Total

15

(360)

(285)

-

(285)

-

(60)

Deferred Tax on above

(5)

124

98

-

98

-

21

Total

10

(236)

(187)

-

(187)

-

(39)

Increase/ (Decrease) in
Inventory Value

31/03/2022

31/03/2021

Raw
Material

WIP andFinished Goods

Total

Raw
Material

WIP andFinished Goods

Total

Copper

487

(48)

439

302

93

395

Gold

(2)

69

67

(5)

(54)

(59)

Silver

-

6

6

(6)

(5)

(11)

Total

485

27

512

291

34

325

The Group’s hedging policy only allows for effective hedge relationships to be established. The effective portion ofhedge is recognised in OCI, while ineffective portion of hedge is recognised immediately in the Statement of Profit
and Loss. For Cash flow hedges, the Group uses hypothetical derivative method to assess effectiveness based on“lower off” assessment.

414

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22415

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
		

Sources of Hedge ineffectiveness summarised by risk category are as follows :48. Interest in Other Entities

Risk Category

Sources of Hedge IneffectivenessType of Hedge

A.

Price Risk

Critical terms Mismatch

Cash Flow and Fair Value Hedge

Basis Risk

Fair Value Hedge

Credit Risk Adjustment

Cash Flow and Fair Value Hedge

Exchange Risk

Credit Risk Adjustment

The Group’s wholly-owned subsidiaries along with country of incorporation, place of operation and principal activities forthe year ended March 31, 2022 and March 31, 2021 are set out below.

Cash Flow Hedge

The amount of gain/ (loss) recognised in the Statement of Profit and Loss on account of hedge ineffectiveness is asfollows:(` in Crore)

(i)

Note
No.

Note Description

Particulars

Type of Hedge

36

Other Expenses

Gain/(Loss) on Derivatives

36

Other Expenses

Gain/(Loss) on Derivatives

Year ended

HINDALCO INDUSTRIES LIMITED

Investment

India

India

Lucknow Finance Company Limited

Investment

India

India

Dahej Harbour and Infrastructure Limited

Cargo services

India

India

Utkal Alumina International Limited

Manufacturing

India

India

Utkal Alumina Social Welfare Foundation

Welfare

India

India

Welfare

India

India

Manufacturing

India

India

(1,131)(349)

AV Minerals (Netherlands) N.V.

Investment

Netherland

Netherland

Hindalco Do Brasil Industria Comercia de Alumina Ltda. - (f)Subsidiary

BrazilBrazilAV Metals Inc.

Investment

CanadaCanadaNovelis Inc.

Manufacturing

CanadaCanadaNovelis do Brasil Ltda.

Manufacturing

BrazilBrazilBrecha Energetica Ltda.

Distribution Services

BrazilBrazil4260848 Canada Inc.

Management Company

CanadaCanada4260856 Canada Inc.

Management Company

CanadaCanada8018227 Canada Inc.

Management Company

CanadaCanadaNovelis (China) Aluminum Products Co., Ltd.

Manufacturing

China

China

Novelis (Shanghai) Aluminum Trading Co., Ltd.

Import and export aluminum

China

China

Novelis PAE SAS

Engineering

FranceFranceNovelis Aluminium Beteiligungs GmbH

Dormant

Germany

Germany

Novelis Deutschland GmbH (formerly known as “Aleris
Deutschland Holding GmbH”)

Manufacturing

Germany

Germany

Novelis Sheet Ingot GmbH

Manufacturing

Germany

Germany

Novelis (India) Infotech Ltd.

Dormant

India

India

Novelis Aluminum Holding Unlimited Company

Intermediate subsidiary

Ireland

IrelandNovelis Italia SpA

Manufacturing

Italy

Italy

Novelis de Mexico S.A. de C.V.

Dormant

MexicoMexicoNovelis Korea Limited

Manufacturing

South Korea

South Korea

Novelis AG

Management Company

Switzerland

Switzerland

Novelis Switzerland S.A.

Manufacturing

Switzerland

Switzerland

Novelis MEA Ltd.

Import and export aluminum

UAE

UAE

Novelis Europe Holdings Limited

Intermediate subsidiary

UK

UK

Novelis UK Ltd.

Manufacturing

UK

UK

Novelis Services Limited

Management Company

UK

UK

Novelis Corporation

Manufacturing

USA

USA

Novelis South America Holdings LLC

Intermediate subsidiary

USA

USA

Novelis Holdings Inc.

Intermediate subsidiary

USA

USA

(` in Crore)

Related amounts not offset

Net amountin the balance
sheet

Amountssubject tomaster netting

Financial
Instrument
collateral

Net Amount

(24)

3,671

(1,792)-

1,879

11,145(24)

11,121(1,792)

(345)

8,984

Effects on Balance sheet

Related amounts not offset

Net amountin the balance
sheet

Amountssubject tomaster netting

Financial
Instrument
collateral

Net Amount

1,832

(81)

1,751

(593)

-

1,158

4,108

(80)

4,028

(593)

(267)

3,168

Financial Liabilities

416

Renuka Investments & Finance Limited

Birla Copper Asoj Private Limited (formerly known as “Ryker BasePrivate Limited”) - (g)Financial Assets

Derivatives

India

Kosala Livelihood And Social Foundation(` in Crore)

Derivatives

India

India

(33)

3,695

Gross amountset off in thebalance sheet

India

Investment(130)

Effects on Balance sheet

GrossamountMiningRenukeshwar Investments & Finance Limited

Fair Value Hedge

Financial Liabilities

As at March 31, 2021:

Minerals & Minerals Limited(316)

Financial Assets

Derivatives

Place of
Operation(1,001)

Financial instruments subject to offsetting , enforceable master netting arrangement and similar arrangement.

Derivatives

Country ofIncorporation

Cash Flow Hedge

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

Gross amountset off in thebalance sheet

Principal Activity

31/03/2021

47. OffsettingGrossamountName of Entity

31/03/2022

Certain hedges of forecast sale transaction for hedging currency risk were discontinued during the year since thehedged forecast transaction was not expected to occur.

As at March 31, 2022:

Subsidiaries:

Integrated Annual Report 2021-22417

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements

Name of Entity

Principal Activity

Country ofIncorporation

Place of
Operation

Novelis Services (North America) Inc.

Cash management service provider

USA

USA

Novelis Global Employment Organization, Inc.

Management Company

USA

USA

Novelis Services (Europe) Inc.

Management Company

USA

USA

Novelis Vietnam Company Limited

Manufacturing

VietnamVietnam

Aleris Asia Pacific International (Barbados) Ltd.

Holding Company

Barbados

Barbados

Aleris Aluminum (Zhenjiang) Co., Ltd.

Manufacturing

China

China

Aleris (Shanghai) Trading Co., Ltd.

Management Company

China

China

Aleris Asia Pacific Limited

Holding Company

Hong Kong

Hong Kong

Aleris Aluminum Japan, Ltd.

Sales Office

Japan

Japan

Novelis Casthouse Germany GmbH (formerly known as “Aleris
Casthouse Germany GmbH”)

Manufacturing

Germany

Germany

Novelis Deutschland Holding GmbH

Holding Company

Germany

Germany

Novelis Koblenz GmbH (formerly known as “Aleris Rolled
Products Germany GmbH”)

Manufacturing

Germany

Germany

Novelis Netherlands B.V. (formerly known as “Novelis Aluminum
Netherlands B.V.”)

Management Company

Netherlands

Netherlands

Aleris Switzerland GmbHManagement Company

Switzerland

Switzerland

Aleris Aluminum UK Limited

Sales Office

UK

UK

Aleris Holding Canada ULC

Holding Company

CanadaCanadaNovelis ALR Aluminum Holdings Corporation (formerly known as“Aleris Corporation”)

Manufacturing

USA

USA

Novelis ALR International, Inc. (formerly known as “Aleris
International, Inc.”)

Manufacturing

USA

USA

Novelis ALR Rolled Products, LLC (formerly known as “Aleris
Rolled Products, LLC”)

Management Company

USA

USA

Novelis ALR Rolled Products, Inc. (formerly known as “Aleris
Rolled Products, Inc.”)Management Company

USA

USA

Novelis ALR Aluminum, LLC (formerly known as “Nichols
Aluminum LLC”)

Management Company

USA

USA

Novelis ALR Rolled Products Sales Corporation (formerly known
as “Aleris Rolled Products Sales Corporation”)

Management Company

USA

USA

Novelis ALR Recycling of Ohio, LLC (formerly known as “IMCO
Recycling of Ohio, LLC”)

Manufacturing

USA

Novelis ALR Aluminum-Alabama, LLC (formerly known as “Nichols
Aluminum-Alabama LLC”)

Dormant

Novelis ALR Asset Management Corporation (formerly known as“UWA Acquisition Co.”)

Holding Company

B.

Non-Controlling Interests (NCI)
The Group has following non-wholly owned subsidiaries:
Name of Entity

Ownership interest held by the Group
31/03/2022

31/03/2021

Power GenerationIndia

74.00%

74.00%

Hindalco-Almex Aerospace Limited

Manufacturing

India

97.18%

97.18%

East Coast Bauxite Mining Company Private
LimitedMiningIndia

74.00%

74.00%

None of above non-wholly owned subsidiary is material to the Group, therefore financial information about these nonwholly owned subsidiary are not disclosed separately.
C.

Joint Operations
The Group is engaged in various arrangements on a joint basis with other companies. In assessing whether joint control
exists for these arrangements, management evaluates the structure and legal framework and contracts governing thearrangement combined with an assessment of which decisions that significantly influence the return from the arrangement.
The Group assesses whether joint arrangements are joint operations where the Group has rights to the assets and obligations
for the liabilities related to the arrangement, or a joint venture where the group have an interest in the net assets of thejoint arrangement. Accordingly, the Group has identified the following joint arrangements as joint operations:
Name of the joint operations

Principal Activity

Country ofIncorporation

Group’s proportion of ownershipinterest and voting power
31/03/2022

31/03/2021

Mahan Coal Limited - (a)MiningIndia

50.00%

50.00%

Tubed Coal Mines Limited - (a)MiningIndia

60.00%

60.00%

Aluminium Norf GmbH - (b)(i)Rolling and recycling

Germany

50.00%

50.00%

Logan Aluminium Inc. - (b)(ii)

Rolling and finishingUSA

40.00%

40.00%

Ulsan Aluminium Limited - (b)(iii)

Rolling and recycling

South Korea

50.00%

50.00%USA

AluInfra Services SA - (b)(iv)

Service Company

Switzerland

50.00%

50.00%

USA

USA

(a)

USA

USA

The proportionate share of total assets and total comprehensive income in the above joint operations are included
in standalone financial statements of the Parent.

(b)Novelis Inc, a subsidiary of the Group, is engaged in the following arrangements that are concluded to be joint
operations.

i.

Aluminium Norf GmbH (“Alunorf”), a large rolling mill in Germany, is a joint operation between Novelis and Hydro
Aluminium Deutschland GmbH (“Hydro”). Both Novelis and Hydro hold a 50% interest in equity, profits and losses,
shareholder voting and management control. Novelis shares control of the management of Alunorf with Hydro througha jointly-controlled shareholders’ committee and supervisory board. Management of Alunorf is led jointly by two
managing executives, one nominated by Novelis and one nominated by Hydro. The primary objective of Alunorf is toprovide tolling services (output) exclusively to Novelis and Hydro as the total output capacity is allocated between
Novelis and Hydro. This indicates that both Novelis and Hydro get substantially all of the economic benefits from theassets of the joint arrangement. The major or sole sources of cash inflows for Alunorf are Novelis and Hydro, who arelegally obliged to cover production costs.

a.

Saras Micro Device Inc., an entity incorporated in the state of Delaware and engaged in manufacturing activities, was formed on April 21,
2021. Subsequently, 90% stake in Saras Micro Devices, Inc. was sold on November 22, 2021.

b.

Aleris RM, Inc. and Name Acquisition Co. - Merged into Aleris International, Inc. on July 21, 2021c.

Aleris Aluminum France SAS merged into Novelis PAE SAS on March 29, 2022d.

Novelis Laminés France SAS merged into Novelis PAE SAS on March 29, 2022e.

Aleris Aluminum Poland Sp. z.o.o. dissolved by operation of law into Aleris Switzerland GmbH on April 15, 2021f.

100% stake in Hindalco Do Brasil Industria Comercia de Alumina Ltda. was sold on March 7, 2022g.

100% equity stake in “Birla Copper Asoj Private Limited (formerly known as “Ryker Base Private Limited”)” was acquired on November
18, 2021 through wholly owned subsidiary, Renuka Investments & Finance Limited.

HINDALCO INDUSTRIES LIMITEDCountry ofIncorporation

Suvas Holdings Limited

During the year ended March 31, 2022:

418

Principal Activity

Integrated Annual Report 2021-22419

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
ii.

iii.

iv.

D.

Logan Aluminium Inc (“Logan”), an aluminum rolling mill in Kentucky, is a joint operation between Novelis and
Tri-Arrows Aluminium Inc. (“Tri-Arrows”). Logan processes metal exclusively received from Novelis and Tri-Arrows
and charges the respective partner a fee to cover expenses. This indicates that both Novelis and Tri-Arrows get
substantially all of the economic benefits from the assets of the joint arrangement. Logan is thinly capitalized andrelies on the regular reimbursement of costs and expenses by Novelis and Tri-Arrows to fund its operations, indicatingthat Novelis and Tri-Arrows have an obligation for the liabilities of the arrangement. Other than these contractuallyrequired reimbursements, Novelis does not provide other material support to Logan. Logan’s creditors do not haverecourse to Novelis’ general credit. Novelis has a 40% voting interest; however, its participating interest in operations
ranges from greater that 50% to approximately 55% depending on output. Novelis has joint ability to make decisions
regarding Logan’s production operations and take its share of production and associated costs.
In May 2017, Novelis Korea Ltd., a subsidiary of Novelis Inc., entered into definitive agreements with Kobe SteelLtd. (“Kobe”), an unrelated party, under which Novelis Korea and Kobe Steel Ltd. will jointly own and operate Ulsan
Aluminum, Ltd. (UAL), the joint arrangement. UAL is controlled by an equally represented Board of Directors inwhich neither entity has sole decision making ability regarding production operations or other significant decisions.
Furthermore, neither entity has the ability to take the majority share of production or associated costs over the life of
the joint venture. UAL currently produces flat rolled aluminum products exclusively for Novelis and Kobe. Each of theparties to the joint arrangement hold a 50% interest in the equity, profits and losses, shareholder voting, management
control and rights to use the production capacity of the facility.
In July 2018, Novelis Switzerland SA (Novelis Switzerland), a subsidiary of Novelis, entered into definitive agreementswith Constellium Valais SA (Constellium), an unrelated party, under which Novelis Switzerland and Constellium
will jointly own and operate AluInfra Services SA (AluInfra), the joint arrangement. Each of the parties to the joint
arrangement hold a 50% interest in the equity, profits and losses, shareholder voting, management control and rights
to use the production capacity of the facility.

Investments in Associates:
Details of Associates of the Group are set out below. The country of incorporation is also their principal place of businessand the proportion of ownership interest is the same as the proportion of voting rights held. The Group’s interests in these
entities are accounted for using equity method in the Consolidated Financial statements.
Name of Entity

Country ofIncorporation

Aditya Birla Science & Technology Company Pvt.
Limited (ABSTCPL)

India

Proportion of Ownership
Interests (%)

Carrying Amount(` Crore)

31/03/2022

31/03/2021

31/03/2022

31/03/2021

49.00%

49.00%

27

23

Summarised financial information in respect of the Group’s associates are set out below. These information is basedon their Ind-AS financial statements after alignment of Group’s accounting policies.

(` in Crore)

As at
31/03/2022

31/03/2021

ABSTCPL

ABRSL

ABRUL

ABRSolar

ABSTCPL

ABRSL

ABRUL

ABRSolarNon-current Assets

110

111

20

156

100

119

21

4

Current Assets

43

7

1

5

52

8

1

-

Non-current Liabilities

(84)

(86)

(14)

(120)

(8)

(89)

(15)

-

Current Liabilities

(13)

(4)

(1)

(7)

(97)

(9)

(1)

(3)

Net Assets

56

28

6

34

47

29

6

1

Group’s share of Net Assetsof Associates

27

7

2

9

23

8

1

-

Summarised Balance Sheet

Dividend Received

-

1

-

-

-

-

-

-

Carrying Amount

27

6

2

9

23

8

1

-

6

-

-

-

6

-

-

-

Contingent Liabilities
Share of Contingent
Liabilities of the associate(` in Crore)

Year ended
31/03/2022
ABSTCL

31/03/2021

ABRSL

ABRUL

ABRSolar

ABSTCL

ABRSL

ABRUL

ABRSolar

Summarised Statement ofProfit and Loss
Total Revenues

64

15

3

8

59

16

3

-

Total Profit/ (Loss) for the year

9

2

1

2

9

5

1

-

Other comprehensive income
for the year

-

-

-

-

-

-

-

-

Group’s share of Profit/ (Loss)of Associates

4

1

-

1

4

1

-

-

Group’s share of Other
comprehensive income of
Associates

-

-

-

-

-

-

-

-

Reconciliation to carrying
amounts
Opening net assets

47

29

6

1

38

24

5

-

Increase on account ofacquisition/issue

-

-

1

31

-

-

-

1

Aditya Birla Renewable Subsidiary Limited (ABRSL)

India

26.00%

26.00%

6

8

Aditya Birla Renewable Utkal Limited (ABRUL)

India

26.00%

26.00%

2

1

Profit/(Loss) for the year

9

2

1

2

9

5

1

-

India

26.00%

26.00%

9-

Other comprehensive income

-

-

-

-

-

-

-

-

Aditya Birla Renewable Solar Limited (ABRSolar)*

Deutsche Aluminum Verpachung Recycling GMBH
France Aluminum Recyclage SPA. ##Germany

30.00%

30.00%--

Amounts directly recognisedin equity:

France20.00%

20.00%--

Dividend Paid

44
Incorporated during the financial year 2021#
Immaterial associates with no existing operations.
*

420

(a)

HINDALCO INDUSTRIES LIMITED

32

-

(3)

(2)

-

-

-

-

-

Closing net assets

56

28

6

34

47

29

6

1

Group’s share (%)

49.00%

26.00%

26.00%

26.00%

49.00%

26.00%

26.00%

26.00%

27

7

2

9

23

8

1

-

Dividend Received

-

(1)

-

-

-

-

-

-

Carrying amount

27

6

2

9

23

8

1

-

Group’s share (Amount)Integrated Annual Report 2021-22421

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
E.

Interests in Joint Ventures:

The assets and liabilities recognized as a result of the acquisition as at November 18, 2021 are as follows:

Details of Joint Ventures of the Group are set out below. The joint ventures listed below have share capital consisting solely
equity shares, which are directly held by the Group. The country of incorporation is also their principal place of businessand the proportion of ownership interest is the same as the proportion of voting rights held. No entity listed below islisted on any public stock exchange. The Group’s interests in these entities are accounted for using equity method in theConsolidated Financial statements.
Country ofIncorporation

F.

Proportion of Ownership
Interests

Carrying Amount (` Crore)

31/03/2022

31/03/2021

31/03/2022

31/03/2021

Assets Acquired
Property, Plant and Equipment (incl. ROU assets)

31/03/2022

241

43

284

Capital Work-in-Progress

3

-

3

Intangible Assets

1

6

7

Trade Receivables

72

-

72

Current Tax Assets

3

-

3

15.00%

15.00%

7

14

Inventories

9

-

9

Hydromine Global Minerals (GMBH)
Limited (Hydromine)

British Virgin Islands

45.00%

45.00%--Cash and Cash Equivalents

31

-

31

7

14

Other Current and Non-Current Assets

1

-

1

361

49

410

Borrowings

139

-

139

Trade and Other Payables

112

-

112

Deferred Tax Liabilities (net)

8

12

20

Total Assets
Liabilities Assumed

Name of the Trust

Principal Activity

Country of Incorporation

Place of Operation

Hindalco Jan Seva Trust

Welfare

India

India

Copper Jan Seva Trust

Welfare

India

India

Utkal Alumina Jan Seva Trust

Welfare

India

India

Other Current and Non-Current Liabilities

24

-

24

Total Liabilities

283

12

295

Net Identifiable Assets Acquired

78

37

115

Interest in Trusts controlled by the Parent accounted as Treasury Shares:(` in Crore)

Name of the Trust% of HoldingCountry of Incorporation

Place of Operation

Trident Trust

#

India

India

Hindalco Employee Welfare Trust

#

India

India

Calculation of goodwill

Treasury Shares are held in Trusts whose sole beneficiary is Hindalco Industries Limited, refer note 16 for further details.

Provisional amounts
as at 18/11/2021

Measurement period
adjustments*

As at
31/03/2022

Purchase Consideration

178

-

178

Less: Net identifiable assets acquired

(78)

(37)

(115)

Goodwill

100

(37)

63

The Group has allocated the goodwill associated with the acquisition of Birla Asoj to the Copper segment.

49. Business Combination* Measurement period adjustment related to pending valuation of tangible and intangible assets and deferred tax impact thereon.

Refer Note 1B(B) for accounting policy on Business Combination

After completion of the acquisition, name of the acquired company changed to “Birla Copper Asoj Private Limited” (‘Birla
Asoj’).

The above fair values of assets acquired and liabilities assumed are final as of March 31, 2022. The fair values of theassets acquired and liabilities assumed were determined using the income, cost and market approaches. In many cases,
the determination of the fair values required estimates about discount rates, future expected cash flows and other future
events that are judgmental and subject to change. The fair value measurements are primarily based on significant inputs
that are not observable in the market and thus represent a Level 3 measurement of the fair value hierarchy as defined in
Ind AS 113, Fair Value Measurements (“Ind AS 113”). Intangible assets consisting of Order Backlog is valued using the Multi
Period Excess Earnings Method (“MPEEM”) which is a form of the income approach. A cost and market approach has been
applied, as appropriate, for Property and Equipment, including Land.

Details of purchase consideration, the net assets acquired and goodwill are as follows:•

Acquisition of Birla Copper Asoj Private Limited (formerly known as ‘Ryker Base Private Limited’):
On November 18, 2021, the Group, through its wholly owned subsidiary Renuka Investments & Finance Limited, hascompleted its acquisition of 100% of the issued and outstanding shares of Ryker Base Private Limited which is in thebusiness of manufacturing Copper Rods on job work basis, pursuant to a Share Purchase Agreement (the ‘SPA’), dated asof November 3, 2021 . The acquisition is in line with the Groups intention to expand in the downstream portfolio.

Purchase consideration

422

As at

India

Interest in Trusts Consolidated as Subsidiaries :#A.

Measurement period
adjustments*

MNH Shakti Limited (MNH Shakti)

The Group has following Trust which are consolidated in these financial statements.

G.

Provisional amounts
as at 18/11/2021(` in Crore)(` in Crore)

AmountTotal amount paid

178

Total Purchase Consideration

178

HINDALCO INDUSTRIES LIMITED

Order Backlog intangible assets are valued using the MPEEM method. The significant assumptions used include theestimated annual net cash flows (including appropriate revenue and profit attributable to the asset, retention rate,applicable tax rate, and contributory asset charges, among other factors), the discount rate, reflecting the risks inherent
in the future cash flow stream, an assessment of the asset’s life cycle, and the tax amortization benefit, among otherfactors. Order Backlog is presented under “Favourable Contracts” in the Consolidated Financial Statements - (refer
note 5).

Integrated Annual Report 2021-22423

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements•

Property, Plant and Equipment, including Land, are valued using the cost and market approach, as appropriate.
For assets valued using the cost approach, the cost to replace a given asset reflects the estimated reproduction or
replacement cost for the property, less an allowance for loss in value due to depreciation. The market approach, which
estimates value by leveraging comparable land sale data/listings and qualitatively comparing them to the in-scope
properties, has been used to value the Land.

The amounts allocated to intangible assets and its useful life is as follows:B.

(` in Crore)

Gross carrying amountUseful life

Favourable Contracts (Order backlog)

6

3 years

Total

6

The assets and liabilities recognized as a result of the acquisition as at February 1, 2022 are as follows:(` in Crore)

As at
31/03/2022
Assets acquired
Property, plant and equipment (including CWIP)

133

Intangible assets

23

Inventories

60

Trade Receivables

43

Other Assets

39

Revenue and profit contribution

Total assets

298

Since the acquisition date, the results of operations for Birla Asoj included in the Consolidated Financial Statements forthe year ended March 31, 2022 comprises of Revenue of ` 87 crore and Net Loss of ` 4 crore.

Liabilities assumed
Trade payables

29

Purchase consideration - cash flow

Provisions

4

Other liabilities

4

Year ended

Total liabilities

37

31/03/2022

Net identifiable assets acquired261(` in Crore)

Outflow of cash required to acquire a subsidiary178

Less: Cash and cash equivalents acquired(31)

Net outflow of cash - investing activities

147

Acquisition of Kuppam unit of SAPA Extrusions India Private Limited:
On February 1, 2022, Hindalco has completed the acquisition of the Extrusion business of SAPA Extrusion India Private
Limited, manufacturer of high end extrusion products, pursuant to a Business Transfer Agreement dated December 17,
2021. The acquisition increases the Group’s footprint in high end extrusion products by expanding the portfolio of services
provided to its customers. During the year ended March 31, 2022, the Group has recognised acquisition related cost of ` 6
crore, which are included in Other Expenses in the Consolidated Statement of Profit and Loss and in operating cash flows
in the Consolidated Statement of Cash Flows.
Details of purchase consideration, the net assets acquired and goodwill are as follows:(` in Crore)

AmountTotal amount paid

265

Total Purchase Consideration

265

The Purchase Price Allocations were made to the assets acquired and liabilities assumed based on the estimated fair values
at the date of acquisition. The excess of the purchase price over the fair value of the net assets acquired was allocatedto goodwill, none of which is expected to be deductible for tax purposes. Goodwill is primarily attributed to synergies
from future expected economic benefits, including enhanced revenue growth from expanded capabilities and geographic
presence as well as cost savings from duplicative overhead, streamlined operations, and enhanced operational efficiency.

(` in Crore)

Calculation of goodwill

As at
31/03/2022

Consideration transferred

265

Less: Net identifiable assets acquired(261)

Goodwill

4

The above fair values of assets acquired and liabilities assumed are final as of March 31, 2022. The fair values of the assets
acquired and liabilities assumed were determined using the income and cost approach. In many cases, the determinationof the fair values required estimates about discount rates, future expected cash flows and other future events that are
judgmental and subject to change. The fair value measurements are primarily based on significant inputs that are notobservable in the market and thus represent a Level 3 measurement of the fair value hierarchy as defined in Ind AS 113, Fair
Value Measurements (“Ind AS 113”). Intangible assets consists of Customer Relationships valued using ‘With and Without/incremental Cash flow method’ and Technical Know How are valued using the ‘Relief From Royalty method’. A cost andmarket approach has been applied, as appropriate, for Property, Plant and Equipment.
The Group has allocated the goodwill associated with the acquisition of Kuppam unit to the Aluminium segment.
Revenue and profit contribution
Since the acquisition date, the results of operations for Kuppam included in the Consolidated Financial Statements for theyear ended March 31, 2022 comprises of Revenue of ` 66 crore and Net Profit of ` 5 crore.
Purchase consideration - cash flow(` in Crore)

Year ended
31/03/2022

424

HINDALCO INDUSTRIES LIMITED

Outflow of cash required to acquire Extrusion Business265

Net outflow of cash - investing activities

265

Integrated Annual Report 2021-22425

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
C.

The following supplemental pro forma financial information presents the Group’s results of operations as of March 31,
2022 as if the acquisitions of Birla Asoj and Kuppam had occurred at the beginning of the financial year of acquisition:(` in Crore)(a)

The Financial Performance of the Discontinued Operations for the the year ended March 31, 2022 is as follows:(` in Crore)

Particulars

Year ended

Year ended
31/03/2022

31/03/2022

31/03/2021

-

7,948

464

8,421

-

1,661

(464)

(2,134)

(7)

354

(471)

(1,780)Gain on sale of Discontinued Operations (net)-

68

Income tax benefit on sale of Discontinued Operations

-

13

-

81

(471)

(1,699)Total Income

Consolidated Revenue from Operations

195,839

Total Expenses

Consolidated Profit After Tax for the year from Continuing and Discontinued Operations

13,766

Impairment loss recognised as a result of remeasurement of fair value less costto sell

50. Discontinued Operations
Refer Note 1B(H) for accounting policy on Non-Current assets (or Disposal Groups) Held for Sale

On April 14, 2020, the Group closed the acquisition of Aleris. As a result of the European Union (EU) and United States (US)antitrust review processes required for approval of the acquisition, the Group is obligated to divest Aleris’ European andNorth American automotive assets, including its plants in Duffel, Belgium (Duffel) and Lewisport, Kentucky (Lewisport).
DuffelOn September 30, 2020, the Group has completed the sale of its assets at Duffel, Belgium to ALVANCE, the international
aluminum business of the GFG Alliance at a consideration of € 310 million as of September 30, 2020. Divestiture of Duffel
was a precondition to the acquisition of Aleris as determined by the European Commission and Chinese State Administration
for Market Regulation (SAMR). At the transaction date the Group has received € 210 million in cash. Both the parties haveagreed to a post-closing arbitration process on the remaining € 100 million as of September 30, 2020. The arbitration
does not relate to future events and relates solely to the period prior to consummation of the sale and the amount € 100
million as of September 30, 2020 has been recorded as contingent consideration, which is measured at fair value at eachreporting date. Accordingly, the Group marked this contingent consideration to carrying value of € 96 million.
The Group has presented contingent consideration in “Other non current financial assets” and changes to the estimatedfair value resulting from subsequent measurement will be recorded to “Loss from discontinued operations”. During theyear ended March 31, 2022, the Group marked all outstanding receivables related to the sale of Duffel to an estimated fairvalue of € 45 million (` 381 crore ($ 51 million)), which resulted in a loss of € 51 million (` 454 crore ($ 61 million)) recorded
in “Loss from discontinued operations”.
As of March 31, 2022, certain assets and liabilities of Duffel will remain within current assets of discontinued operations
and current liabilities of discontinued operations in the consolidated balance sheets until ALVANCE is able to satisfy
necessary regulatory requirements.
The results of operations of Duffel has been presented as discontinued operations in the Consolidated Statement of Profit
and Loss for the year ended March 31, 2022.
Lewisport
On November 8, 2020, the Group entered into a definitive agreement with American Industrial Partners (AIP) for the sale ofLewisport and the sale was completed on November 30, 2020 (“transaction date for Lewisport business”). Upon closing,the Group has received ` 1,335 crore ($ 180 million) in cash proceeds. In addition, the Group has recorded a ` 123 crore($ 17 million) receivable for net working capital adjustments, which was received during current year.

Loss before income tax
Income tax benefit
Loss after income tax from discontinued operations

Gain after income tax on sale of discontinued operations
Loss from Discontinued Operations

(a)

(b)
(a + b)Foreign Currency Translation Reserve of Discontinued Operations--

Remeasurement of Defined Benefit Obligation of Discontinued Operations(Net of tax ` 9 crore)-51

Other Comprehensive Income/(Loss) for the year from discontinued operations-

51

Total Comprehensive Income/(Loss) for the year from discontinued operations(471)(1,648)(b) The following assets and liabilities were classified as held for sale in relation to the discontinued operation:(` in Crore)

As at
31/03/2022

31/03/2021

-

73

46

34

46

107

Trade payables

93

114

Contract liabilities

-

5

93

119

Assets of disposal group classified as held for sale (refer Note 15A)
Inventory
Trade receivables

Liabilities of disposal group classified as held for sale (refer Note 15B)

The Group has incurred additional cost to sell amounting to ` 10 crore ($ 1.3 million) primarily related to legal expenses
recorded in “Loss from discontinued operations” for the year ended March 31, 2022.
The results of operations of Lewisport have been presented as discontinued operations in the Consolidated Statement ofProfit and Loss for the year ended March 31, 2022.

426

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22427

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements
51. Disposal of Subsidiaries
A.

53. Additional regulatory information required by Schedule III to be disclosed in the consolidated
financial statements:

Disposal of Hindalco Do Brasil Industria e Comercio de Alumina Ltda.
In December 2021 the Group decided to sell its entire equity interest in its wholly owned Brazilian subsidiary, Hindalco Do
Brasil Industria e Comercio de Alumina Ltda. (‘Hindalco Do Brazil’) and accordingly assets and liabilities of the same wereclassified as ‘Disposal Group Held for Sale’ and the Group recognized an impairment loss of ` 59 crore (USD 8 million) on
the net assets of Hindalco Do Brazil in the Consolidated Financial Statements.

A.

Disclosure related to relationship of the Company with a company which is Struck off under Section 248 of the Companies
Act, 2013 or Section 530 of Companies Act, 1956:
Name of struck off Company

On March 7, 2022 the sale of Hindalco Do Brasil was completed and it ceased to be a subsidiary of the Group. As a result of
this, the Group has recognised a loss on sale of subsidiary of ` 152 crore (USD 22 million), mainly on account of additional
equity infusion of ` 164 crore (USD 22 million), which is presented as exceptional expenses in the Consolidated Financial
Statements. (refer Note 37)(` in Crore)

Details of sale of Hindalco Do Brasil as on transaction date

Relationship with struck off companies

As at

(164)

Add: Currency Translation adjustment

12

Loss on sale of subsidiaryB.

-

Less: Net Assets sold (USD 22 million)

On November 22, 2021, Novelis sold 90% of its equity ownership in Saras Micro Devices Inc., an early-stage businessfounded by Novelis on April 21, 2021, related to the development, design, manufacturing, and sale of aluminum-integrated
passive devices for use in semiconductor and electronic systems. As a result of this, the Group has recognised a gain onsale of subsidiary of ` 112 crore (USD 15 million), which is presented as exceptional income in the Consolidated Financial
Statements. (refer Note 37)
As part of this transaction, the Group received ` 66 crore (USD 9 million) in cash upon close and approximately ` 46
crore (USD 6 million) in deferred cash receipts, which comprise of promissory note due in November 2023 amounting to` 23 crore (USD 3 million) and consideration receivable due in November 2022 amounting to ` 23 crore (USD 3 million).

Sale of Goods andServices1

1

Not a related party

2. Gapscib Trading Private Limited

Sale of Goods andServices22

Not a related party

1. KNOP Trading Company Pvt. Ltd.

Purchase Goods andServices--

Not a related party

2. Saturn Mining & Exploration Pvt. Ltd.

Purchase Goods andServices--

Not a related party

3. Agngreen Pest Control Services Pvt. Ltd.

Purchase Goods andServices--

Not a related party

4. Black Bird E-Solutions Pvt. Ltd.

Purchase Goods andServices--

Not a related party

5. Singhal Bricks Pvt. Ltd.

Purchase Goods andServices--

Not a related party

6. Sonebhadra Automobiles Pvt. Ltd.

Purchase Goods andServices--

Not a related party

1. Apple Insulated Wires Pvt. Ltd.

Contract liability--

Not a related party

2. Payal Synthetics Pvt. Ltd.

Contract liability--

Not a related party

3. Tecon Surface Coating & Engineering Pvt. Ltd.

Contract liability--

Not a related party

Other Outstanding balances

52. Gare Palma IV/4 (GP-4), Gare Palma IV/5 (GP-5) and Kathautia coal mines were acquired by the Company through auction

conducted by the Nominated Authority (NA constituted under the Ministry of Coal, Government of India. The Company was
required to achieve certain efficiency parameters and reach their Peak Rated Capacity (PRC) during FY 2015-16. Performance
security in the form of Performance Bank Guarantees (PBG) of ` 318 crore (for GP-4), ` 369 crore (for GP-5) and ` 267 crore(for Kathautia) were provided by the Company to NA in this regard.

428

HINDALCO INDUSTRIES LIMITED

Relationship withRelationship with
the Struck off
company, if any,
to be disclosed

PayablesDisposal of Saras Micro Devices Inc.

The above actions were contested by the Company. The Hon’ble Chhattisgarh High Court at Bilaspur has already given
its judgment in favour of the Company in the matter related to GP-5. As per the judgment, Hon’ble High Court has asked
NA to refund the amount appropriated by them and return the PBG to the Company. The NA has filed an appeal before
the Hon’ble Supreme Court which has not been taken up for hearing yet. The Company’s appeal to quash the demandraised by NA in case of GP-4 and Kathautia is yet to be decided and is pending before the Mines Tribunal at Bilaspur andRanchi respectively.

Balanceoutstandingas at
31/03/2021

1. Daga Nylomet Private Limited(152)

Due to the various delays on the part of Government Authorities, PRC was achieved by the Company for GP-4 and GP-5
during FY 2016-17 and for Kathautia during FY 2017-18. Having satisfied itself about achievement of efficiency parameters/
PRC, NA returned the PBG in respect of GP-4 on June 19, 2017. However, in a volte face action, vide a letter dated 25th April,
2018, NA imposed a penalty equal to 20% of PBG amounting to ` 64 crore for GP-4, ` 74 crore for GP-5 and ` 118 crore for
Kathautia (refer note 10). As the PBG for GP-5 and Kathautia was still with NA, it also appropriated an amount equal to thepenalty from the PBG of the respective mines.

Balanceoutstandingas at
31/03/2022

Receivables

March 7, 2022
Total Sale Consideration (USD 1)

Nature of transactions
with struck-off Company

B.

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

Loans and Financial Guarantees given below:(` in Crore)

Name of the Company

Aditya Birla Science and Technology Company Private Limited

Relationship

Associate

Nature ofTransaction
Loan

As at
31/03/2022

31/03/2021

36

41

Integrated Annual Report 2021-22429

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(ii)

Disclosure relating to amount outstanding at year end and maximum outstanding during the year of loans andadvances, in nature of loan, required under SEBI (Listing Obligations and Disclosure Requirements) Regulations,2015, are given below:(` in Crore)

Name of the Company

Aditya Birla Science and Technology Company
Private LimitedC.

Relationship

Associate

55. During the financial year ended March 31, 2022, the Group has reclassified following comparatives which are primarily toconform to the current years classification. This reclassifications do not have material impact on the Consolidated Financial
Statements.
(` in Crore)

Outstanding balance as at

Maximum outstanding
during the year ended on

Note
No.

31/03/2022

31/03/2021

31/03/2022

31/03/2021

A. Consolidated Balance Sheet

36

41

41

46

Note Description

Previously
Reported Amount

Revised Amount

ChangeAssets8B

Other Financial Assets, Current

1,089

1,211

122

Other disclosures required under Schedule III amendments

10

Other Current Assets

2,785

2,673

(112)

i)

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

9B

Deferred Tax Assets (Net)

887

924

37

ii)

None of the entities in the Group have been declared wilful defaulter by any bank or financial institution or government
or any government authority.

21B

Other Financial Liabilities, Current

3,495

2,531

(964)

iii)

The Group has complied with the number of layers prescribed under the Companies Act, 2013.

18B

Borrowings, Current

6,029

6,993

964

iv)

There is no undisclosed income under the tax assessments under the Income Tax Act, 1961 for the year ending March
31, 2022 and March 31, 2021 which needs to be recorded in the books of account of any of the entities consolidated
in the Group.

20

Trade Payables

28,222

28,177(45)

9B

Deferred Tax Liabilities (Net)

4,493

4,530

(37)

9C

Current Tax Liabilities (Net)

2,116

2,126

(10)

23

Other Current Liabilities

1,341

1,386

45

v)

The Group has not traded or invested in crypto currency or virtual currency during the current or previous year.

vi)

Utilisation of borrowed funds and share premium

Liabilities-

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

B. Consolidated Statement of Profit and Loss

			

a.

25

Revenue from Operations

26

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

		

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

		

A)

B)

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

			

a.

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

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

Income131,985132,008

23

1,222

1,199

(23)

Expenses
27

Cost of Materials Consumed

77,63077,484(146)

31

Power and Fuel

8,646

8,667

21

36

Other Expenses

18,32718,452

125-vii) Borrowings obtained by the Group from banks and financial institutions have been applied for the purposes for whichsuch loans were was taken.

54. Subsequent EventsIn April 2022, Novelis amended its ABL Revolver facility to increase the limit on committed letters of credit under the facility
to ` 2,087 crore (USD 275 million).

430

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

431

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(` in Crore)

56. Additional information required under Schedule III of the Companies Act, 2013
A.

Net Assets i.e. total Assets
minus total Liabilities

Share in Profit/ (Loss)

As % ofConsolidated
Net Assets

Amount

As % ofConsolidated
Profit/ (Loss)

Amount

As % of Other
Comprehensive
IncomeAmount

As % of Total
Comprehensive
IncomeAmountAditya Birla Renewable
Subsidiary Limited

0.01%

7

0.00%

-

0.00%

-

0.00%

-

Aditya Birla Renewable Utkal
Limited

0.00%

1

0.00%

-

0.00%

-

0.00%

-

Aditya Birla Renewable Solar
Limited

0.01%

9

0.01%

1

0.00%

-

0.01%

1

Aditya Birla Science andTechnology Co. Pvt. Ltd.

0.03%

27

0.03%

4

0.00%

-

0.03%

4

0.01%

6

0.01%

1

0.00%

-

0.01%

1

0.00%

-

0.00%

-

0.00%

-

0.00%

-

Information regarding subsidiaries, associates and joint ventures included in the consolidated financial statements
for the year ended March 31, 2022:(` in Crore)
Net Assets i.e. total Assets
minus total Liabilities

Share in Profit/ (Loss)

Share in Other
Comprehensive Income

As % ofConsolidated
Net Assets

Amount

As % ofConsolidated
Profit/ (Loss)

Amount69.60%

54,42840.11%

5,507

Share in Total
Comprehensive Income

As % of Other
Comprehensive
IncomeAmount34.58%(397)

As % of Total
Comprehensive
IncomeAmount40.61%

5,110

Indian:Subsidiaries:
Indian:Minerals & Minerals Limited

0.02%

14

0.02%

3

0.00%

-

0.02%

3

Utkal Alumina International
Limited11.64%

9,099

8.00%

1,099

-0.78%

9

8.81%

1,108

Utkal Alumina Social Welfare
Foundation

0.00%

-

0.00%

-

0.00%

-

0.00%

-

Suvas Holdings Limited

0.04%

30

0.00%

-

0.00%

-

0.00%

-

Renuka Investments & Finance
Limited

0.30%

235

0.01%

1

-4.62%

53

0.43%

54

Hydromine Global Minerals(GMBH) Limited

Renukeshwar Investments &Finance Limited

0.18%

137

-0.01%(1)-5.05%

58

0.45%

57

Trusts (Consolidated as
Subsidiaries)

Dahej Harbour andInfrastructure Limited

0.12%

95

0.09%

13

0.00%

-

0.10%

13

Lucknow Finance Company
Limited

0.02%

19

0.01%

2

0.00%

-

0.02%

2

Hindalco-Almex Aerospace
Limited

0.14%

106

0.06%

8

0.00%

-

0.06%

8

East Coast Bauxite Mining
Company Private Ltd

0.00%

-

0.00%

-

0.00%

-

0.00%

-

Kosala Livelihood and Social
Foundation

0.00%

1

0.00%

-

0.00%

-

0.00%

-

Birla Copper Asoj Private
Limited0.10%

75-0.03%

(4)

0.00%

-

-0.03%(4)

Joint Ventures
Indian:MNH Shakti Limited
Foreign:

Indian:Hindalco Jana Seva Trust

0.00%

2

0.00%

-

0.00%

-

0.00%

-

Copper Jann Seva Trust-0.01%(6)-0.03%

(4)

0.00%

-

-0.03%(4)

Utkal Alumina Jana Seva Trust

0.00%

1

0.00%

-

0.00%

-

0.00%

-

149.99%117,298

101.19%13,89331.45%(361)

107.55%

13,532-49.99%(39,096)-1.19%(163)

68.55%(787)-7.55%(950)

100.00%78,202100.00%13,730100.00%(1,148)100.00%12,582

Consolidation Adjustments

B.

Information regarding subsidiaries, associates and joint ventures included in the consolidated financial statements
for the year ended March 31, 2021:(` in Crore)

Foreign:

432

Share in Total
Comprehensive Income

Associates

Parent:Hindalco Industries Limited

Share in Other
Comprehensive Income

AV Minerals (Netherlands) N.V.

14.27%

11,157-1.82%(250)-32.32%

371

0.96%

121

AV Metals Inc.

14.21%

11,1100.00%--35.80%

411

3.27%

411

Novelis Inc. (Consolidated)

39.30%

30,73454.84%

7,529

78.66%(903)

52.66%

6,626

Hindalco Do Brasil Industria
Comercia de Alumina Ltda.

0.00%

-

-0.12%(16)-3.22%

37

0.17%

21

Non-controlling Interest

0.01%

Net Assets i.e. total Assets
minus total Liabilities

Share in Profit/ (Loss)

Share in Other
Comprehensive Income

Share in Total
Comprehensive Income

As % ofConsolidated
Net Assets

Amount

As % ofConsolidated
Profit/ (Loss)

Amount

As % of Other
Comprehensive
IncomeAmount

As % of Total
Comprehensive
IncomeAmount75.24%

50,06428.51%

993

79.01%

3,780

57.74%

4,773

0.02%

11

0.00%

-

0.00%

-

0.00%

-

Parent:Hindalco Industries Limited
Subsidiaries:
Indian:HINDALCO INDUSTRIES LIMITED

11

0.00%

-

0.00%

-

0.00%

-

Minerals & Minerals Limited

Integrated Annual Report 2021-22

433

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Consolidated Financial Statements(` in Crore)

Share in Other
Comprehensive Income(` in Crore)

Net Assets i.e. total Assets
minus total Liabilities

Share in Profit/ (Loss)

Share in Total
Comprehensive Income

Net Assets i.e. total Assets
minus total Liabilities

Share in Profit/ (Loss)

As % ofConsolidated
Net Assets

Amount

As % ofConsolidated
Profit/ (Loss)

Amount

As % of Other
Comprehensive
IncomeAmount

As % of Total
Comprehensive
IncomeAmountUtkal Alumina International
Limited12.01%

7,991

17.40%

606-0.02%

(1)

7.32%

605

Utkal Alumina Social Welfare
Foundation

0

-

0.00%

-

0.00%

-

0.00%

-

Suvas Holdings Limited

0.04%

29

0.00%

-

0.00%

-

0.00%

-

Renuka Investments & Finance
Limited

0.23%

156

0.11%

4

1.30%

62

0.80%

66

Hydromine Global Minerals(GMBH) Limited

Renukeshwar Investments &Finance Limited

0.12%

80

0.09%

3

0.61%

29

0.39%

32

Trusts (Consolidated as
Subsidiaries)

Dahej Harbour andInfrastructure Limited

0.12%

82

-0.20%

(7)

0.00%

-

-0.08%(7)

Lucknow Finance Company
Limited

0.03%

18

0.06%

2

0.00%

-

0.02%

2

Hindalco-Almex Aerospace
Limited

0.15%

97

0.14%

5

0.00%

-

0.06%

5

East Coast Bauxite Mining
Company Private Ltd

0.00%

-

0.00%

-

0.00%

-

0.00%

-

Kosala Livelihood and Social
Foundation

0.00%

-

0.00%

-

0.00%

-

0.00%

-

Share in Other
Comprehensive Income

Share in Total
Comprehensive Income

As % ofConsolidated
Net Assets

Amount

As % ofConsolidated
Profit/ (Loss)

Amount

As % of Other
Comprehensive
IncomeAmount

As % of Total
Comprehensive
IncomeAmount

0.02%

14

0.03%

1

0.00%

-

0.01%

1

0.00%

-

-0.03%

(1)

0.00%

-

-0.01%(1)

Hindalco Jana Seva Trust

0.00%

2

0.00%

-

0.00%

-

0.00%

-

Copper Jann Seva Trust

0.00%

(3)

-0.14%

(5)

0.00%

-

-0.06%(5)

Utkal Alumina Jana Seva Trust

0.00%

(1)

-0.03%

(1)

0.00%

-

-0.01%(1)

160.34%

106,692

101.44%

3,533

88.25%

4,222

93.81%

7,755-60.34%(40,149)-1.44%(50)

11.75%

562

6.19%

512

100.00%66,543100.00%3,483

100.00%4,784

100.00%

8,267

Joint Ventures
Indian:MNH Shakti Limited
Foreign:

Indian:Consolidation Adjustments

For and on behalf of the Board of Hindalco Industries Limited

Foreign:
AV Minerals (Netherlands) N.V.

17.50%

11,6480.03%

1-7.30%(349)-4.21%(348)

AV Metals Inc.

17.19%

11,4380.00%--7.17%(343)-4.15%(343)

Novelis Inc. (Consolidated)

37.51%

24,95855.61%

1,937

21.36%

1,022

35.79%

2,959

Hindalco Do Brasil Industria
Comercia de Alumina Ltda.

0.10%

66

-0.29%

(10)

0.46%

22

0.15%

12

Non-controlling Interest

0.02%

10

0.00%

-

0.00%

-

0.00%

-

Aditya Birla Renewable
Subsidiary Limited

0.01%

8

0.03%

1

0.00%

-

0.01%

1

Aditya Birla Renewable Utkal
Limited

0.00%

1

0.00%

-

0.00%

-

0.00%

-

Aditya Birla Renewable Solar
Limited

0.00%

-

0.00%

-

0.00%

-

0.00%

-

Aditya Birla Science andTechnology Co. Pvt. Ltd.

0.03%

23

0.11%

4

0.00%

-

0.05%

4

Associates

As per our report annexed
For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration No. 304026E/E-300009

Praveen Kumar Maheshwari
Whole-time Director andChief Financial Officer
DIN-00174361

Satish Pai
Managing Director
DIN-06646758

Sarah George
PartnerMembership No. 045255

Anil MalikCompany Secretary

K N Bhandari
Director
DIN-00026078

Place: Mumbai
Date: May 26, 2022

Indian:434

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

435

436
HINDALCO INDUSTRIES LIMITED
Novelis South America Holdings LLC*

18

Germany

26 Novelis Aluminium Beteiligungs GmbH*

Novelis Europe Holdings Limited*

UnitedKingdom

France30 Novelis PAE SAS*

372.70
49.10

USD

4.04

EUR
INR

33.96

217.10EUR
INR

1,824.91

53.86

EUR
INR

452.71

INR

5.00

CHF

9,559.71

6,000.59

9,582.94--

6,396.00

48,552.04

Total
Liabilities

-

-

1.04

7.90

0.70

5.29

1,429.88

10,854.23

-

-

-

-

201.92

0.17

0.12

0.04

38.05

1.14

6.22

3,951.25

6.33

0.76

3.67

18.80

Total
Liabilities

210.701,599.39

18.04

151.61(3.99)(33.55)23.87

200.63443.41

3,647.96

0.02

0.18

4.47

37.58

371.202,817.79

128.26

1,279.67

755.12

5,732.09

38.66

324.96

1,047.83

8,808.09

187.32

1,574.62

690.16

5,677.95

0.05

0.39

1,604.65

13,488.72

572.35

4,344.74

416.72

4,157.63

495.323,760.00

16.58

139.40834.73

7,016.73

109.60921.28241.75

1,988.86--

1,259.39

10,586.40

0.14

1.08

142.361,420.36

Investments

Investments

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Shares, Debenture,
Bonds & Others

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

90.04

11.63

41.93

651.940.05

137.87233.42-

Shares, Debenture,
Bonds & Others

-

-

11.70

101.26--315.22

2,728.83

829.77

6,728.53--

3,446.03

29,831.71

44.59

332.15466.044,742.62

3,173,731.00

19,822.81

13,967.20

19,528.52--

6,167.00

45,940.47

Turnover/
Revenues

-

-

-

-

-

-

682.24

5,082.27

-

-

-

-

87.38

0.41

-

-

57.58

2.65

126.65

4,741.65

3.51

3.61

3.65

46.36

Turnover/
Revenues

-

-

2.31

17.19

1.55

11.52

(51.11)(380.74)

-

-

-

-

(1.53)

-

-

-

7.72

0.34

0.47

602.18

0.05

4.44

2.43

1.38

117.54647.38905.14--(2.00)(14.90)(20.55)(153.09)

0.23

2.00

(135.59)(1,173.75)

11.14

96.42

2.80

22.66

-

-

(113.18)(979.78)50.09

373.1329.77

302.95--(0.02)(0.15)(51.05)(441.89)

0.86

7.40

0.03

0.21

-

-

0.00

0.02

4.21

31.33

4.68

47.57

64,714.00 18,818.00

404.202,534.15

3,543.18

-

-

32.00

238.38

Profit/(Loss) Provision
before Tax
for Tax

-

-

41.98

312.7628.14

209.63617.65

4,601.12--(33.57)(250.04)(5.99)(0.39)

0.03(0.00)

20.97

2.24

8.32

1,701.34

0.22

3.60

3.08

4.21

Profit/(Loss) Provision
before Tax
for Tax

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

100

100

100

100

100

100

100

100

100

74

100

100

97

100

74

100

100

100

Figures INR in Crore & FC in Million

-

-

39.68

295.57

26.59

198.11

663.62

4,943.54--(33.57)(250.04)(4.46)(0.39)

0.03(0.00)

13.25

1.90

7.85

1,099.16

0.17(0.84)

0.65

2.84

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(20.55)(153.09)

0.25

2.15

(84.54)(731.86)

10.28

89.02

2.77

22.46

-

-

(113.18)(979.79)45.88

341.7925.10

255.3845,896.00

286.66

1,886.78

2,638.03

-

-

34.00

253.28

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

100

100

100

100

100

100

100

100

100

100

100

100

100

Gain/Loss Profit/(Loss) Proposed
% of
from
after Tax. Dividend
Share
Discontinued
Holding
Operations

-

-

-

-

-

-

(5.14)(38.33)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Gain/Loss Profit/(Loss) Proposed
% of
from
after Tax. Dividend
Share
Discontinued
Holding
Operations

Statutory Reports

31

Ireland

29 Novelis Aluminium Holding Unlimited
Company*

Italy

41.14

0.03

EUR
INR

0.21

340.80EUR
INR

2,864.73

201.01USD
INR

1,525.87

INR

146.10GBP

12,931.85

9,751.96

15,573.88--

5,735.00

43,534.39

Total Assets

-

-

58.88

446.9540.24

305.503,079.32

23,375.15

1,463.66

11,109.92

1,469.84

11,156.83

276.68

1.38

0.24

0.01

133.06

20.56

112.4913,050.72

35.98

137.93238.6432.45

Total Assets

123,119.00 2,070,454.00 1,530,558.00

768.992,792.85

4,460.18(0.01)(0.05)(661.04)(5,017.95)

Reserves(0.00)(0.01)(126.13)(957.46)(83.10)(630.78)

169.44

1,286.26

1,463.66

11,109.92(188.89)(1,433.80)

22.74(0.39)

0.01(0.05)

45.01

9.51

17.71

2,847.99(2.83)

132.37200.72

13.60

Reserves

Our Capitals

28 Novelis Italia SPA*Switzerland

Germany

25 Novelis Deutschland GmbH*

Novelis Switzerland SA*

UnitedKingdom

24 Novelis Services Limited*

1,457.60

416,777.00

KRW
INR

2,603.15

958.53

BRL
INR

1,530.77

0.01

USD
INR

0.05

0.04

USD
INR

0.30

INR

Capital0.00

USD

Reportingcurrency

0.01

183.97USD
INR

1,396.52

122.64USD
INR

930.981,480.00

USD
INR

11,234.67

-

USD
INR

-

1,658.74

USD
INR

12,590.63

52.02

1.6

0.10

0.01

50.00

9.90

88.56

6,251.48

29.93

4.80

34.25

0.05

Capital

INR

INR

INR

INR

INR

INR

INR

INR

INR

INR

INR

INR

INR

Reportingcurrency

Strategic Overview

27

UnitedKingdom

23 Novelis UK Ltd*

22 Novelis Korea Limited*

South Korea

BrazilNovelis do Brasil Ltda.*

21

USA

MexicoNovelis Corporation*

Country

USA

CanadaCanadaCanadaCanadaNetherlands

India

India

India

India

India

India

India

India

20 Novelis de Mexico SA de CV*

19

Sr. Name of the Subsidiary Company

4260856 Canada Inc.*

12 Birla Copper ASOJ Private Limited (Erstwhile
Ryker Base Pvt Ltd)

17

Kosala Livelihood and Social Foundation

11

4260848 Canada Inc.*

Utkal Alumina Social Welfare Foundation

10

16

East Coast Bauxite Mining Co.Pvt.Ltd.

9

Novelis Inc.*

Dahej Harbour and Infrastructure Limited

8

15

Lucknow Finance Company Limited

7

A V Metals Inc. #*Hindalco-Almex Aerospace Limited

6

14

Utkal Alumina International Limited

5

A V Minerals ( Netherlands) N.V. *India

Suvas Holding Limited

4

13

India

Renukeshwar Investment and Finance
Limited

3

India

Renuka Investment and Finance Limited

2

India

Minerals and Minerals Limited

Country

1

Sr. Name of the Subsidiary Company

Figures INR in Crore & FC in Million

FINANCIAL INFORMATION RELATING TO SUBSIDIARY COMPANIES FOR THE YEAR ENDED 31ST MARCH 2022 Sec.129(3)Annexure VII

Corporate Overview
Financial Statements

Integrated Annual Report 2021-22

437

438
HINDALCO INDUSTRIES LIMITED
UAE, Dubai

36 Novelis MEA Ltd*

USA

USA

40 Novelis Services (North America) Inc.*

41

USA

USA

50 Novelis ALR Rolled Products, Inc.*

51

USA

USA

USA

54 Novelis ALR Recycling of Ohio, LLC*

55 Novelis ALR Aluminum LLC*

56 Novelis ALR Aluminum-Alabama LLC*

-

USD

0.32

USD
INR

2.44

214.04USD
INR

1,624.81

24.22

USD
INR

183.88

0.00

USD
INR

0.02

INR

307.41

USD

0.00

0.03

(0.63)(4.75)

134.39

1,020.13

1.29

9.76

(2.11)(15.99)(58.47)(443.83)

1.56

0.00

0.03

5.11

38.81

406.003,081.93

112.18851.5414.38

109.17710.295,391.81

3.05

23.11

1,750.87

13,290.83

3,000.89

22,779.76

2,104.87

15,978.07

113.08950.58498.14

4,187.33

516.43

4,341.14

Total Assets

-

5.52

41.90

0.00

0.00

0.29

2.22

0.01

0.10

130,403.02

41.31

4,388.30

5,252.79

49.06

58.72

269.36

2,044.75

590.64

4,964.89

253.66

1,925.56

1,550.52

11,769.97

1,289.95

10,612.43

Total Assets

-

-

5.42

41.12

57.57

436.9986.67

657.9016.49

125.15461.353,502.09

0.38

2.90

412.91

3,134.42

617.21

4,685.26

787.94

5,981.28

68.97

579.77356.82

2,999.39

104.15875.48

Total
Liabilities

-

5.64

42.80

-

-

0.29

2.22

0.01

0.10

50,894.05

16.12

2,579.48

3,087.64

15.85

18.97

207.75

1,577.01

570.64

4,796.77

337.442,561.51

1,443.76

10,959.54

1,076.67

8,857.79

Total
Liabilities

Investments

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Shares, Debenture,
Bonds & Others

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Shares, Debenture,
Bonds & Others

Investments

-

-

-

-

532.093,963.76

32.48

241.94--706.505,263.00--

669.63

4,988.34

-

-

-

-

300.972,605.47

652.595,649.35

0.02

0.17

Turnover/
Revenues

-

-

-

-

-

-

-

-

-

73.41

0.02

3,438.01

3,990.80

8.38

9.73

743.585,539.20

99.09

857.83----

1,206.50

9,783.46

Turnover/
Revenues-(0.05)(0.36)

-

-

-

-

-

-

-

-

127.07147.50

0.13

0.15

-

-

-

-

1.81

13.48

(8.43)(62.77)

0.08

0.61

-

-

(0.29)(2.16)

89.66

667.940.09

0.66(0.25)(1.88)(17.16)(127.84)

0.78

5.84

(31.38)(233.78)

1.91

14.22

(18.56)(138.24)(2.45)(21.19)(50.31)(435.48)

0.04

0.34

-

-

-

-

-

-

-

-

(0.61)(4.57)--(0.96)(7.12)(34.02)(253.46)(1.32)(9.86)(45.38)(338.05)

0.06

0.51

1.29

11.15

0.04

0.34

Profit/(Loss) Provision
before Tax
for Tax-(0.40)(3.02)

0.00

0.00

-

-

-

-

(5,690.22)(1.80)

600.72

697.31(0.32)(0.37)

56.88

423.71

9.29

80.39

14.58

108.64(43.76)(325.98)

10.39

84.28

Profit/(Loss) Provision
before Tax
for Tax

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

100

100

100

100

100

100

100

100

100

100

100

100

100

Figures INR in Crore & FC in Million-(0.36)(2.66)

0.00

0.00

-

-

-

-

(5,690.22)(1.80)

473.65549.81(0.45)(0.52)

56.88

423.71

9.29

80.39

12.78

95.17

(35.33)(263.21)

10.32

83.67

-

-

-

-

-

-

-

-

-

-

0.01

0.06

-

-

3.86

28.76

-

-

-

-

-

-

-

-

-

-

-

-

(0.29)(2.16)

89.66

667.94

0.09

0.66

0.36

2.69

(17.15)(127.78)

1.74

12.96

6.50

48.44

3.23

24.08

26.82

199.82(2.51)(21.69)(51.59)(446.63)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

100

100

100

100

100

100

100

100

100

100

100

100

100

Gain/Loss Profit/(Loss) Proposed
% of
from
after Tax. Dividend
Share
Discontinued
Holding
Operations

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Gain/Loss Profit/(Loss) Proposed
% of
from
after Tax. Dividend
Share
Discontinued
Holding
Operations

Statutory Reports

Canada,Nova Scotia

USA

53 Novelis ALR Rolled Products Sales
Corporation*

2,333.56

INR

1.10

USD

11.84

(255.65)(1,940.66)(0.32)(2.44)

7.15

54.30

0.00

0.01

43.77

367.95(158.06)(1,328.69)

Reserves-(0.44)(3.37)

0.00

0.00

-

-

-

-

58,688.96

18.59

961.501,150.92

11.07

13.25

60.70

460.81--(83.78)(635.96)106.76810.43212.28

1,746.40

Reserves

Our Capitals

57 Aleris Holding Canada ULC*

USA

8.37

1,593.61

USD
INR

12,097.07

2,384.00

USD
INR

18,096.94

1,309.77

USD
INR

9,942.49

44.11

EUR
INR

370.80

97.55

EUR
INR

819.98570.35EUR
INR

4,794.35

Capital

INR

Reportingcurrency

INR

-

0.33

USD
INR

2.47

0.00

BRL
INR

0.00

-

USD
INR

-

-

USD
INR

-

20,820.00

VND
INR

6.60

847.31CNY
INR

1,014.23

22.14

CNY
INR

26.51

0.91

USD
INR

6.93

20.00

EUR
INR

168.12

-

USD
INR

-

0.00

USD
INR

0.00

1.00

CHF
INR

8.23

Capital

INR

Reportingcurrency

Figures INR in Crore & FC in Million

Strategic Overview

52 Novelis ALR Rolled Products, LLC*

Novelis ALR Asset Management
Corporation*

USA

49 Novelis ALR International, Inc.*

Germany

47 Novelis Casthouse Germany GmbH*USA

Germany

46 Novelis Koblenz GmbH*

48 Novelis ALR Aluminum Holdings
Corporation*

Germany

45 Novelis Deutschland Holding GmbH*India

44 Novelis (India) Infotech Ltd.*CountryUSA

43 Novelis Global Employment Organization,
Inc.*

Sr. Name of the Subsidiary Company

Brazil42 Brecha Energetica Ltda*

Novelis Services (Europe) Inc.*

VietnamChina

39 Novelis Vietnam Company Limited*

38 Novelis (China) Aluminum Products Co., Ltd.*

China

Germany

35 Novelis Sheet Ingot GmbH*

Novelis (Shanghai) Aluminum Trading
Company*

Canada34 8018227 Canada Inc.*

37

USA

Switzerland

Country

33 Novelis Holdings Inc.*

32 Novelis AG*

Sr. Name of the Subsidiary Company

Annexure VII

Corporate Overview
Financial Statements

Integrated Annual Report 2021-22

439

440
HINDALCO INDUSTRIES LIMITED
Aleris Aluminum Japan, Ltd.*

Reais

INR

CNY

INR

USD

INR

CNY

INR

EUR

INR

JPY

INR

GBP

INR

CHF

INR

-

-

1,384.37

1,657.09

1.84

13.97

96.87

115.95

0.08

0.64

6.00

0.37

0.04

0.37

11.25

92.55

Investments

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Shares, Debenture,
Bonds & Others

-

-

-

-

2,807.45

828.49961.70

2.42

17.99

301.72350.23

-

-

29.74

1.97

0.03

0.35

Turnover/
Revenues

200.45--3,015.47

3,609.52

315.782,397.11

129.15154.59

2.58

21.72

34.41

2.13

0.07

0.72

14.84

122.0856.88

478.14

Total
Liabilities

INR
55.0692
56.8946

BRL
INR
13.981615.9659---(1,588.27)

3,219.38-(1,901.16)(242.83)556.77
3,853.60(1,843.29)(11.46)(13.72)(2.52)(21.19)

16.41

1.02

0.03

0.34

3.57

4,226.43

43.74

52.36

5.03

42.28

12.00

0.74

0.00

0.00

0.02

29.36

(322.17)765.820.16

4,207.42(2,708.19)

6,437.46
500.53

Total Assets

Reserves

Capital

AUD

CAD
INR
59.4266
60.8311

CHF
INR
81.089482.2729CNY
INR
11.6078
11.9724

EUR
INR
86.569084.0610GBP
INR
101.7635
99.7657

JPY
INR
0.66340.6243NOK
INR
8.58518.6410SEK
INR
8.46168.0905

SGD
INR
55.232956.0329

USD
INR
74.492775.9050* Balance sheet items are translated at closing exchange rate and Profit/(Loss) items are translated at average exchange rate.

## Subsidiary of AV Metals Inc.

BrazilChina

Hong Kong

China

BarbadosJapan

UnitedKingdom

Switzerland

INR

Netherlands
EUR

Reportingcurrency

Country# Subsidiary of AV Minerals (Netherlands) N.V.

66 Hindalco Do Brazil Industria Comercia de
Alumina LTDS*

65 Novelis Aluminum (Zhenjiang) Co., Ltd.*

64 Aleris Asia Pacific Limited*

63 Aleris (Shanghai) Trading Co., Ltd.*

62 Aleris Asia Pacific International (Barbados)
Ltd.*

61

60 Aleris Aluminum UK Limited*

59 Aleris Switzerland GmbH*58 Novelis Netherlands B.V.*

Sr. Name of the Subsidiary Company

Annexure VII(11.58)(160.68)(25.43)(29.52)(4.06)(30.22)

2.63

3.06

(0.01)(0.09)

1.88

0.12(0.03)(0.27)(0.56)(4.52)

2.85

24.66

-

-

-

-

0.18

1.31

0.75

0.88

-

-

1.24

0.08

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(0.08)

0.64-(0.66)(11.58)(161.95)(25.43)(29.52)(4.23)(31.52)

1.88

2.18

(0.01)(0.09)

0.64

0.04(0.03)(0.27)(0.56)(4.52)

2.13

18.43

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

100

100

100

100

100

100

100

100

Gain/Loss Profit/(Loss) Proposed
% of
from
after Tax. Dividend
Share
Discontinued
Holding
Operations

5.57

Profit/(Loss) Provision
before Tax
for Tax

Figures INR in Crore & FC in Million

Corporate Overview

From Ccy
To CcyStrategic Overview
Our Capitals
Statutory Reports
Financial Statements

List of Subsidiaries merged during FY 21-22
Aleris Aluminum France S.à.r.l. Merged into Novelis PAE S.A.S.

Novelis Lamines France S.A.S. Merged into Novelis PAE S.A.S.

Aleris RM, Inc. Merged into Novelis ALR International, Inc. (formerly Aleris International, Inc.)

Name Acquisition Co. Merged into Novelis ALR International, Inc. (formerly Aleris International, Inc.)

List of Subsidiaries Dissolved during FY 21-22

Aleris Aluminum Denmark ApS Dissolved into Aleris Switzerland GmbH

Aleris Aluminum Poland Sp. z.o.o. Dissolved into Aleris Switzerland GmbH

List of Subsidiaries sold during FY 21-22

Saras Micro Devices, Inc. (Novelis sold 90% ownership of entity. Legal entity still exists but investment is not held as a venture/associate. )Avg spot rate for the year
Closing rate for 31st March 2022

From Ccy
To CcyAvg spot rate for the year
Closing rate for 31st March 2022

BRL
USD
0.18770.2103CHF
USD
1.08861.0839CNY
USD
0.15580.1577EUR
USD
1.1624
1.1075GBP
USD
1.36641.3144JPY
USD
0.00890.0082

SEK
USD
0.11360.1066

SGD
USD
0.74150.7382Integrated Annual Report 2021-22

441

Corporate Overview

Annexure VII
Shares of Associate/Joint Ventures held by thecompany on the year end
LatestAuditedBalance
Sheet
Date

NumberProfit/Loss for the year

Amount ofExtent of
Networth to Considered in
Not
Description Base on why
investment
Holding %Shareholding consolidation considered in of how there the associate /(Carrying Value) attributable as per latest(Rs. in Crore) consolidation is significant joint venture isin Associates /audited balance
influence not considered
Joint Venture
sheet(Rs. in crore)(Rs. in Crore)

1

Aditya Birla Scienceand Technology
Company Private
Limited31-Mar-22

9,800,000

9.80

49.00

55.76

27.32

Note A

2

Aditya Birla
31-Mar-22
Renewables Subsidiary
Limited6,895,200

6.90

26.00

27.70

7.20

Note A

3

Aditya Birla Renewable 31-Mar-22
Utkal Limited (ABRUL)

1,274,000

1.27

26.00

5.26

1.37

Note A

4

Aditya Birla Renewable 31-Mar-22
Solar Limited

8,307,000

8.31

26.00

33.97

8.83

Note A

5

Associates of Novelis
Inc. @

3,001

2.12

-

(1.48)

0.10

Joint Ventures
1

Hydromine Global
Minerals (GMBH)
Limited31-Mar-22

66,562

1.37

45.00

0.01

0.00

Note A2MNH Shakti Limited

31-Mar-22

5,265,000

5.27

15.00

41.55

6.23

Note A

Joint Operations
1

Mahan Coal Limited

31-Mar-22

32,250,000

10.25

50.00

22.73

11.36

Note A

2

Tubed Coal Mines
Limited31-Mar-22

15,296,700

0.00

60.00

2.76

1.66

Note A

3

Joint Operations ofNovelis Inc. @10,0412,119.55

341.19118.59Deutsche Aluminium 31-Dec-21
Verpackung Recycling
GmbH

1

1.74

30%

(1.53)(0.00)

Equity

3,000

0.38

20%

0.05

0.10

EquityEquity@ - Joint Operations of Novelis Inc.
Aluminium Norf GmbH 31-Dec-21

1258.0650%

187.55

45.12

Logan Aluminum Inc.

31-Mar-22

40

0.00

40%

13.90

1.13 Consolidated

AluInfra Services SA

31-Dec-20

5,000

24.06

50%

0.52

0.20

EquityUlsan Aluminum Ltd.

31-Mar-21

5,000

1,837.4250%

139.2272.15

EquityNote A - There is significant influence due to percentage holding of share capital

For and on behalf of the Board of Hindalco Industries Limited

Place: Mumbai
Date: May 26, 2022

442

Financial Statements

To the Members of Hindalco Industries Limited
Report on the Audit of the Standalone Financial Statements
OpinionBasis for Opinion
1.

We have audited the accompanying standalone financial
statements of Hindalco Industries Limited (“the Company”),
which comprise the Standalone Balance Sheet as at March
31, 2022, and the Standalone Statement of Profit and Loss(including Other Comprehensive loss), the Standalone
Statement of Changes in Equity and the Standalone
Statement of Cash Flows for the year then ended, and notes
to the standalone financial statements, including a summaryof significant accounting policies and other explanatory
information in which are included the financial statement/
financial information as at March 31, 2022 and for the year
then ended in respect of two Joint Operations consolidated
on a proportionate basis and two Trusts (Refer note 55 to
the standalone financial statements) (hereinafter referred toas “standalone financial statements”).

2.

In our opinion and to the best of our information andaccording to the explanations given to us and based on
the consideration of reports of other auditors on audited
financial statements of the joint operations and based on theconsideration of the separate unaudited financial informationof the trusts, the aforesaid standalone financial statements
give the information required by the Companies Act, 2013(“the Act”) in the manner so required and give a true and fairview in conformity with the accounting principles generally
accepted in India, of the state of affairs of the Company,
its joint operations and its trusts as at March 31, 2022, andtotal comprehensive income (comprising of profit and othercomprehensive loss), changes in equity and its cash flows
for the year then ended.

Key audit matter@ - Associates of Novelis Inc.

31-Dec-21

Statutory Reportson the Standalone Financial Statements

Associates

France Aluminum
Recyclage SA

Our Capitals

Independent Auditor’s Report

Part “B” - Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures
Sr. Name of Associates /no.
Joint Ventures

Strategic Overview

HINDALCO INDUSTRIES LIMITED

Praveen Kumar Maheshwari
Whole-time Director and Chief Financial Officer
DIN-00174361

Satish Pai
Managing Director
DIN-06646758

Anil MalikCompany Secretary

K N Bhandari
Director
DIN-00026078

3.

We conducted our audit in accordance with the Standards
on Auditing (SAs) specified under Section 143(10) of theAct. Our responsibilities under those Standards are further
described in the “Auditor’s responsibilities for the audit of thestandalone financial statements” section of our report. We
are independent of the Company in accordance with the Codeof Ethics issued by the Institute of Chartered Accountantsof India together with the ethical requirements that are
relevant to our audit of the standalone financial statements
under the provisions of the Act and the Rules thereunder,
and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics.
We believe that the audit evidence we have obtained andthe audit evidence obtained by the other auditors in termsof their reports referred to in sub-paragraph 13 of the Other
Matters paragraph below, other than the unaudited financial
information as certified by the management and referred toin sub-paragraph 14 of the Other Matters section below, issufficient and appropriate to provide a basis for our opinion.

Key audit matters
4.

Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of thestandalone financial statements of the current period. These
matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters.

How our audit addressed the key audit matter

A. Measurement of inventory quantities ofcoal, bauxite, copper concentrate and workin progress consisting of precious metals
Refer Notes 1D (j) and 11 (d) to the standalone Our audit procedures relating to the measurement of inventory quantities
financial statements.
of coal, bauxite, copper concentrate and work in progress of precious
Of the Company’s ` 20,948 crores of inventory metals included the following:as at March 31, 2022, ` 4,302 crores of inventory • Understanding and evaluating the design and testing the operating
effectiveness of controls over the physical count process andcomprised of coal, bauxite, copper concentratemeasurement of such inventory;
and work in progress consisting of precious
metals.
• Evaluation of the independence competency and capabilities of the
management’s experts;
This was determined a key audit matter, as themeasurement of these inventory quantities • Physically observing inventory measurement and count procedures
lying at the Company’s yards, smelters andcarried out by management using experts, to assess its appropriatenessrefineries is complex and involves significant
and completeness and performing roll forward procedures; andjudgement and estimate resulting from• Obtaining and inspecting inventory measurement and physical countmeasuring the surface area, dip measurement
results for such inventories, including assessing and evaluating theof materials in tanks/silos and such otherresults of analysis performed by management in respect of differences
parameters.
between book and physical quantities.
The Company uses internal and external
Based on the above procedures performed, we did not identify any
experts, as applicable, to perform volumetricmaterial exceptions in the measurement of inventory quantities of coal,surveys and assessments basis which thebauxite, copper concentrate and work in progress inventories consisting
quantities of these inventories are estimated.
of precious metals.
Integrated Annual Report 2021-22

443

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Independent Auditor’s Reporton the Standalone Financial Statements
Key audit matter
B.

C.

Provisions recognised and contingencies
disclosed with regard to certain legal
and tax matters including uncertain tax
positions.
Refer Notes 1D (i), 10, 22, 23 and 44 to thestandalone financial statements.
The Company operate in a complex tax
jurisdiction with certain tax exemption/
deduction that may be subject to challenge
and audit by the tax authorities. There areopen tax matters under litigation with tax
authorities. As at March 31, 2022, the Company
has, recognised provisions and disclosed
contingent liabilities towards various legal andtax matters. There are number of legal, direct
and indirect tax cases against the Company,
including environmental, mining, local andstate levies, income tax holidays, availing of
input tax credits and such other matters.
This is a key audit matter, as evaluation of thesematters requires management judgement
and estimation, related legal advice including
those leading to interpretation of laws andregulations and application of relevant judicial
precedents to determine the probability of theoutflow of economic resources for recognisingprovisions, disclosing contingent liabilities andmaking related disclosures in the standalone
financial statements.

How our audit addressed the key audit matter

Our audit procedures relating to provisions recognised and contingencies
disclosed with regard to certain legal and tax matters included thefollowing:• Understanding and evaluating the design and testing the operating
effectiveness of controls over the recognition, measurement,
presentation and disclosures made in the standalone financial
statements in respect of these matters;• Obtaining details of legal and tax matters, inspecting the supporting
documents to evaluate management’s assessment of probability ofoutcome and the magnitude of potential loss, and testing related toprovisions and disclosures in the standalone financial statements
through inquiries with the management and legal counsel;• Assessing on test basis on the underlying calculation supporting thecontingent liability and other litigations disclosures in the standalone
financial statements;• Reviewing orders and other communication from tax and regulatory
authorities and management responses thereto;• Assessing the management expert’s legal advice and opinion, as
applicable, obtained by the Company’s management to corroborate
management assessment and evaluating competence and capabilitiesof the experts; and• Using auditor’s specialist for technical assistance in evaluating certain
significant and judgemental complex direct and indirect tax litigationand positions in tax returns and their possible outcome.
Based on the above procedures performed, we did not identify any
material exceptions in the provisions recognised and contingent liabilities
disclosed in the standalone financial statements with regard to such legal
and tax matters.

Accounting of derivatives and hedging
transactions
Refer Notes 1B (Q) and 49 to the standalone Our audit procedures related to accounting of derivatives and hedging
financial statements.
transactions included the following:
Company’s financial performance is •significantly impacted by fluctuations inprices of aluminium, copper, gold, silver,
furnace oil and foreign exchange rates. The •Company takes a structured approach to theidentification, quantification and hedging ofsuch risks by using various derivatives (e.g.
forwards, futures, options and embedded
derivatives) in commodities and/or foreign
currencies. These hedges are designated aseither cash flow or fair value hedges, and incertain cases remains non-designated.
As at March 31, 2022, the carrying value of theCompany’s derivatives included derivative
assets amounting to Rs. 681 crores and •derivative liabilities amounting to Rs. 3,763
crores.

444

HINDALCO INDUSTRIES LIMITED

Understanding and evaluating the design and testing the operating
effectiveness of controls over accounting of derivatives and hedging
transactions;
Testing qualifying criteria for hedge accounting in accordance with
Ind AS 109, including:
3 Understanding the risk management objectives and strategies fordifferent types of hedging programs;
3 Evaluating that the hedging relationship consists only of eligible
hedging instruments and hedged items;
3 Using auditor’s expert for assistance in verifying hedge
effectiveness requirements of Ind AS 109, Financial Instruments,
including the economic relationship between the hedged item andthe hedging instrument.
Testing appropriateness of hedge accounting to qualified hedge
relationships i.e. cash flow and fair value hedges; andKey audit matter
Derivative and hedge accounting is considereda key audit matter because of its significanceto the standalone financial statements,
the volume, nature and types of hedging
relationships, including complexity involved in
the application of hedge accounting principles
in accordance with Ind AS 109, Financial
Instruments.

How our audit addressed the key audit matter•

Testing related presentation and disclosures in the standalone
financial statements.

Based on the above procedures performed, we did not identify any
material exceptions in the amounts, presentation and disclosures made in
the standalone financial statements relating to accounting of derivatives
and hedging transactions.

and completeness of the accounting records, relevantto the preparation and presentation of the standalone
financial statements that give a true and fair view and arefree from material misstatement, whether due to fraud or
error.

Other Information
5.

The Company’s Board of Directors is responsible forthe other information. The other information comprises
the information included in the annual report, but does
not include the financial statements and our auditor’sreport thereon. The annual report is expected to be madeavailable to us after the date of this auditor’s report.

7.

Our opinion on the standalone financial statements does
not cover the other information and we will not express
any form of assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the otherinformation identified above when it becomes available
and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial
statements or our knowledge obtained in the audit, orotherwise appears to be materially misstated.
When we read the annual report, if we conclude that
there is a material misstatement therein, we are required
to communicate the matter to those charged withgovernance and take appropriate action as applicable
under the relevant laws and regulations.

Auditor’s responsibilities for the audit of the standalone
financial statements
8.

Our objectives are to obtain reasonable assurance
about whether the standalone financial statements as awhole are free from material misstatement, whether due
to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit
conducted in accordance with SAs will always detect amaterial misstatement when it exists. Misstatements canarise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably
be expected to influence the economic decisions ofusers taken on the basis of these standalone financial
statements.

9.

As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
scepticism throughout the audit. We also:

Responsibilities of management and those charged withgovernance for the standalone financial statements
6.

The Company’s Board of Directors is responsible for thematters stated in Section 134(5) of the Act with respect tothe preparation of these standalone financial statementsthat give a true and fair view of the financial position,
financial performance, changes in equity and cash flows of
the Company in accordance with the accounting principles
generally accepted in India, including the AccountingStandards specified under Section 133 of the Act. This
responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company,and for preventing and detecting frauds and otherirregularities; selection and application of appropriate
accounting policies; making judgments and estimates thatare reasonable and prudent; and design, implementationand maintenance of adequate internal financial controls,that were operating effectively for ensuring the accuracy

In preparing the financial statements, management
is responsible for assessing the Company’s ability tocontinue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis of accounting unless management either
intends to liquidate the Company or to cease operations,or has no realistic alternative but to do so. Those Boardof Directors are also responsible for overseeing theCompany’s financial reporting process.

•

Identify and assess the risks of material misstatementof the standalone financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting fromfraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional

Integrated Annual Report 2021-22445

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Independent Auditor’s Reporton the Standalone Financial Statements

omissions, misrepresentations, or the override ofinternal control.

••

Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimatesand related disclosures made by management.

•

Conclude on the appropriateness of management’s
use of the going concern basis of accounting and,based on the audit evidence obtained, whether
a material uncertainty exists related to events orconditions that may cast significant doubt on the
Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’sreport to the related disclosures in the standalone
financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to thedate of our auditor’s report. However, future events
or conditions may cause the Company to cease tocontinue as a going concern.

•

•

10.

446

Obtain an understanding of internal control relevantto the audit in order to design audit procedures thatare appropriate in the circumstances. Under Section
143(3)(i) of the Act, we are also responsible forexpressing our opinion on whether the Company has
adequate internal financial controls with reference
to standalone financial statements in place and theoperating effectiveness of such controls.

any significant deficiencies in internal control that we
identify during our audit.
11.

12.

We communicate with those charged with governanceregarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including

HINDALCO INDUSTRIES LIMITEDWe also provide those charged with governance witha statement that we have complied with relevant
ethical requirements regarding independence, andto communicate with them all relationships andother matters that may reasonably be thought to bearon our independence, and where applicable, related
safeguards.
From the matters communicated with those charged withgovernance, we determine those matters that were ofmost significance in the audit of the standalone financial
statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’sreport unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicatedin our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public
interest benefits of such communication.

Our opinion on the standalone financial statements, andour report on Other Legal and Regulatory Requirements
below, is not modified in respect of the above matterswith respect to our reliance on the work done and thereports of the other auditors and the financial information
certified by the Management.

13.

We did not audit the financial statements of two
joint operations included in the standalone financial
statements of the Company, which constitute total
assets of ` 26 crores and net assets of ` 25 crores as at
March 31, 2022, total revenue from operations of ` Nil,
total comprehensive loss (comprising of loss after tax
and other comprehensive income) of ` * crore and net
cash inflows amounting to ` * crore for the year ended onthat date. These financial statements and other financial
information have been audited by other auditors whose
reports have been furnished to us by the Management,
and our opinion on the standalone financial statements
insofar as it relates to the amounts and disclosures
included in respect of these joint operations and ourreport in terms of sub-section (3) of Section 143 of the
Act including report on Other Information insofar as it
relates to the aforesaid joint operations, is based solely
on the reports of the other auditors. Material uncertainty
related to going concern has been reported by two joint
operations during the year which are not material to theCompany.
* represent figures below the rounding convention used in thefinancial statements

14.

We did not audit the financial information of two Trusts
included in the standalone financial statements of theCompany, which constitute total assets of ` 245 crores andnet assets of ` 37 crores as at March 31, 2022, total revenue
from operations of ` Nil, total comprehensive income(comprising of profit after tax and other comprehensive
income) of ` 1 crore and net cash inflows amounting todirectors is disqualified as on March 31, 2022 frombeing appointed as a director in terms of Section
164(2) of the Act.
(f)

With respect to the adequacy of the internal financial
controls with reference to standalone financial
statements of the Company and, its joint operations
incorporated in India and the operating effectivenessof such controls, refer to our separate Report in“Annexure B”.

(g)With respect to the other matters to be includedin the Auditor’s Report in accordance with Rule 11of the Companies (Audit and Auditors) Rules, 2014(as amended), in our opinion and to the best of our
information and according to the explanations given
to us:

		i.

The standalone financial statements disclose
the impact of pending litigations on thestandalone financial position of the Company
and its joint operations–Refer Notes 22, 23 and
44 to the standalone financial statements;

		

ii.

Provision has been made in the standalone
financial statements, as required under theapplicable law or accounting standards, formaterial foreseeable losses, if any, on longterm contracts including derivative contracts
as at March 31, 2022–Refer Notes 22 and 49 to
the standalone financial statements in respectof such items as it relates to the Company andits joint operations;

		

iii.

Except as referred to in Note 21B to thestandalone financial statements, there has been
no delay in transferring amounts, required to
be transferred, to the Investor Education andProtection Fund by the Company.

		

iv.

(a)

Report on other legal and regulatory requirements
15.

Other Matters

Evaluate the overall presentation, structure andcontent of the standalone financial statements,
including the disclosures, and whether the standalone
financial statements represent the underlying
transactions and events in a manner that achieves
fair presentation.
Obtain sufficient appropriate audit evidence
regarding the financial information of the entities
or business activities within the Company toexpress an opinion on the standalone financial
statements. We are responsible for the direction,
supervision and performance of the audit of thefinancial statements of such entities included in thestandalone financial statements of which we are theindependent auditors. For the other entities includedin the standalone financial statements, which havebeen audited by other auditors, such other auditors
remain responsible for the direction, supervision andperformance of the audits carried out by them. We
remain solely responsible for our audit opinion.

` 11 crores for the year then ended. The unaudited financial
information in respect of these Trusts have been furnished
to us by the management, and our opinion on thestandalone financial statements in so far as it relates tothe amounts and disclosures included in respect of these
Trusts, and our report in terms of sub-section (3) of Section
143 of the Act to the extent applicable, is based solely onsuch unaudited financial information. In our opinion andaccording to the information and explanations given to
us by the Management, these financial information are
not material to the Company.

16.

As required by the Companies (Auditor’s Report) Order,
2020 (“the Order”), issued by the Central Government ofIndia in terms of sub-section (11) of Section 143 of the Act,
we give in the “Annexure A” a statement on the mattersspecified in paragraphs 3 and 4 of the Order, to the extent
applicable.
As required by Section 143(3) of the Act, we report that:(a)

We have sought and obtained all the informationand explanations which to the best of our knowledge
and belief were necessary for the purposes of ouraudit.

(b)

In our opinion, proper books of account as requiredby law have been kept by the Company so far as
it appears from our examination of those books
and the reports of the other auditors of two joint
operations.

(c)

The Standalone Balance Sheet, the Standalone
Statement of Profit and Loss (including othercomprehensive loss), the Standalone Statement of
Changes in Equity and the Standalone Statementof Cash Flows dealt with by this Report are inagreement with the relevant books of account.

(d)In our opinion, the aforesaid standalone financial
statements comply with the Accounting Standards
specified under Section 133 of the Act.

(e)

On the basis of the written representations received
from the directors as on March 31, 2022 taken on
record by the Board of Directors of the Company
and the reports of the statutory auditors of its
joint operations incorporated in India, none of the

The respective management of theCompany and its joint operations which
are companies incorporated in India
whose financial statements have been
audited under the Act, have represented
to us and the other auditors of such joint
operations, respectively, that, to the bestof its knowledge and belief, as disclosed
in the notes to the accounts, no funds
have been advanced or loaned or invested(either from borrowed funds or sharepremium or any other sources or kind offunds) by the Company or any of suchjoint operations to or in any other persons
or entities, including foreign entities(“Intermediaries”), with the understanding,Integrated Annual Report 2021-22447

Corporate Overview

Independent Auditor’s Reporton the Standalone Financial Statements

whether recorded in writing or otherwise,that the Intermediary shall, whether,
directly or indirectly, lend or invest inother persons or entities identified in any
manner whatsoever by or on behalf of theCompany or any of such Joint Operations(“Ultimate Beneficiaries”) or provide any
guarantee, security or the like on behalfof the Ultimate Beneficiaries (Refer
Note 56(C) to the standalone financial
statements);

			

448

(b)

The respective management of theCompany and its joint operations which
are companies incorporated in India
whose financial statements have been
audited under the Act, have represented
to us and the other auditors of such joint
operations respectively that, to the bestof its knowledge and belief, as disclosed
in the notes to the accounts, no funds
have been received by the Company or
any of such joint operations from any
persons or entities, including foreign
entities (“Funding Parties”), with theunderstanding, whether recorded inwriting or otherwise, that the Company or
any of such Joint Operations shall, whether,
directly or indirectly, lend or invest inother persons or entities identified in any
manner whatsoever by or on behalf of theFunding Party (“Ultimate Beneficiaries”)
or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries(Refer Note 56(C) to the standalone
financial statements); andHINDALCO INDUSTRIES LIMITED

Our Capitals

Statutory Reports

Financial Statements

Annexure A to Independent Auditor’s Report

			

		

17.

Strategic Overview

v.

(c)

Based on such audit procedures thathas been we considered reasonable
and appropriate in the circumstances,
performed by us and those performedby the auditors of the joint operations
which are companies incorporated in India
whose financial statements have been
audited under the Act nothing has cometo our or other auditor’s notice that hascaused us or the other auditors to believethat the representations under subclauses (a) and (b) contain any material
misstatement.

The dividend declared and paid during theyear by the Company is in compliance with
Section 123 of the Act. The joint operations
have not declared or paid any dividend during
the year.

The Company and its joint operations incorporated inIndia has paid/ provided for managerial remunerationin accordance with the requisite approvals mandated
by the provisions of Section 197 read with Schedule V to
the Act.

For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/ E-300009

Sarah George
PartnerMembership Number: 045255
UDIN: 22045255AJPZYN4652
Mumbai
May 26, 2022

Referred to in paragraph 15 of the Independent Auditor’s Report of even date to the members of Hindalco Industries
Limited on the standalone financial statements as of and for the year ended March 31, 2022
i.

(a)

		

(A) The Company is maintaining proper records showing full particulars, including quantitative details and situation,of Property, Plant and Equipment.
(B) The Company is maintaining proper records showing full particulars of Intangible Assets.

(b)

The Property, Plant and Equipment are physically verified by the Management according to a phased programme
designed to cover all the items over a period of 3 years which, in our opinion, is reasonable having regard to thesize of the Company and the nature of its assets. Pursuant to the programme, a portion of the Property, Plant andEquipment has been physically verified by the Management during the year and no material discrepancies have been
noticed on such verification.

(c)

The title deeds of all the immovable properties (other than properties where the Company is the lessee and the leaseagreements are duly executed in favour of the lessee), as disclosed in Note 2 on Property, Plant and Equipment, Note
3 on Investment Properties and Note 15 on ‘Non-Current Assets classified as Held for Sale’ to the standalone financial
statements, are held in the name of the Company, except for the following:

Description of property

Gross
Held in the
carrying
name ofvalue(` in crores)

Whetherpromoter,director or
their relative
or employee

Period Held
Reason for not being held in the name- indicateof the Company
range, whereappropriate(Financial year
-FY)

Freehold Land (Property, 8plant and equipment
and Investment
Property) at Bharuch
and Nashik/ Building(Investment Property) at
Mumbai

IndogulfNo
Fertilizer andChemicals
Corporation
LimitedSince
The title deeds are held in the name
FY 2002-2003 of Indogulf Fertilizer and Chemicals
Corporation Limited which has
subsequently been amalgamated with
the Company

Freehold Land (Property, 10plant and equipment
and Rights of Use assets)/ Building (Property,
plant and equipment) atvarious locations

IndianAluminium
Company
LimitedNo

Since
The title deeds are held in the name
FY 2004-2005 o f I n d i a n A l u m i n i u m C o m pa n y
Limited which has subsequently been
amalgamated with the Company

Freehold Land (Property, 1
plant and equipment)at
KuppamSAPA
Extrusion
India Private
LimitedNo

Since
FY 2021-2022

The title deeds are held in the nameof the SAPA Extrusion India Private
Limited which has subsequently
been acquired by the company. The
company is in process of registering
the title deed of this land in its name.

Freehold Land (Property, 4plant and equipment) at
Mahan unit

Variousindividual
landowners

No

Since
FY 2013 -2014

Certain original land-related
documents held in the name of original
landowners were submitted to thebank that had provided borrowing
for the Mahan project. These originald o c u m e n t s a re re q u i re d to b e
submitted to the land department inorder to get the title deed registeredin the name of the Company. The
Company is awaiting receipt of these
original land-related documents fromthe bank to initiate the process oftransfer of the title of the land in favourof the Company.

Integrated Annual Report 2021-22449

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Annexure A to Independent Auditor’s Report
Description of property

Gross
Held in the
carrying
name ofvalue(` in crores)

Freehold Land (Property, 27plant and equipment) at
Kathautia mine

(d)

(e)

ii.

(a)

(b)

450

Variousindividual
landowners

Whetherpromoter,director or
their relative
or employee

Period Held
Reason for not being held in the name- indicateof the Company
range, whereappropriate(Financial year
-FY)

No

Since
FY 2018 -2019

The Company has not revalued its Property, Plant
and Equipment (including Right of Use assets)
or intangible assets or both during the year.
Consequently, the question of our commenting onwhether the revaluation is based on the valuation
by a Registered Valuer, or specifying the amount ofchange, if the change is 10% or more in the aggregateof the net carrying value of each class of Property,
Plant and Equipment (including Right of Use assets)
or intangible assets does not arise.
Based on the information and explanations furnished
to us, no proceedings have been initiated on or are
pending against the Company for holding benami
property under the Prohibition of Benami Property
Transactions Act, 1988 (as amended in 2016)(formerly the Benami Transactions (Prohibition)
Act, 1988 (45 of 1988)) and Rules made thereunder,
and therefore the question of our commenting onwhether the Company has appropriately disclosed
the details in its standalone financial statements
does not arise.
The physical verification of inventory excluding
stocks with third parties has been conducted atreasonable intervals by the Management during theyear and, in our opinion, the coverage and procedureof such verification by Management is appropriate.
In respect of inventory lying with third parties, thesehave substantially been confirmed by them. The
discrepancies noticed on physical verification of
inventory as compared to book records were not
10% or more in aggregate for each class of inventory.
During the year, the Company has been sanctioned
working capital limits in excess of ` 5 crores, inaggregate, from banks on the basis of security ofcurrent assets. In our opinion, the quarterly returns
or statements filed by the Company including revised
returns or statements filed with such banks are in

HINDALCO INDUSTRIES LIMITED

Approval of the District collector isawaited which is a prerequisite as per
the Chota Nagpur Tenancy Act, 1908
to transfer the title deed in the nameof the company. The company is in theprocess of obtaining these approvals.

agreement with the unaudited books of account of
the Company.
		

The Company has filed provisional statement withthe bank for the quarter ended March 31, 2022, withrespect to Company’s Aluminium division and thefinal statement will be submitted to the bank upon
finalization of the audited financial statements.

		(Also refer Note 56C to the standalone financial
statements).

iii.

The Company has made investments in four
companies and granted unsecured loans to two
companies and 225 other parties representing loan
to employees. The aggregate amount during theyear, and balance outstanding at the balance sheet
date with respect to such loans to subsidiaries andto parties other than subsidiaries are as per the tablegiven below:(a)(` in crores)

Particulars

Aggregate amount Balance outstandingo f l o a n g r a n t e d / as a balance sheet
provided during the date in respect ofyear *
these cases*

Subsidiaries 200

169

Others3

3

principal amounts, as stipulated, and are also regularin payment of interest as applicable.

*excludes loan provided to Hindalco Employee Welfare Trust forproviding share based payments to employees of the Company.

(d)

In respect of the aforesaid loans, there is no amountwhich is overdue for more than ninety days.

(e)

There were no loans which fell due during the year
and were renewed/extended. Further, no fresh loans
were granted to same parties to settle the existing
overdue loans.

(f)

The loans granted during the year, including torelated parties had stipulated the scheduled
repayment of principal and payment of interest andthe same were not repayable on demand.

iv.

In our opinion, and according to the information andexplanations given to us, the Company has complied withthe provisions of Sections 185 and 186 of the Companies
Act, 2013 (‘the Act’) in respect of the loans and investments
made, and guarantees and security provided by it.

v.

The Company has not accepted any deposits or amounts
which are deemed to be deposits from the public within
the meaning of Sections 73, 74, 75 and 76 of the Act andthe Rules framed there under to the extent notified.

vi.

Pursuant to the rules made by the Central Government ofIndia, the Company is required to maintain cost records
as specified under Section 148(1) of the Act in respect of
its products. We have broadly reviewed the same, and are

Name of the statute

Nature of dues

Central Sales Tax Act
and Local Sales Tax(including VAT) Act

Sales TaxThe Central Excise Act, Excise Duty
1944

(Also refer Note 8 and Note 43 to the standalone financial
statements)
(b)

(c)

In respect of the aforesaid investments/loans, theterms and conditions under which such loans were
granted/investments were made are not prejudicial
to the Company’s interest.
In respect of the aforesaid loans, the schedule ofrepayment of principal and payment of interest has
been stipulated, and the parties are repaying the

Clean
environment
cessof the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. We havenot, however, made a detailed examination of the records
with a view to determine whether they are accurate orcomplete.
vii. (a)According to the information and explanations given
to us and the records of the Company examined byus, in our opinion, the Company is generally regular indepositing the undisputed statutory dues in respectof goods and services tax and income tax, though
there has been a slight delay in a few cases, and isregular in depositing undisputed statutory dues,
including provident fund, employees state insurance,
sales tax, service tax, duty of customs, duty of excise,value added tax, cess, and other material statutory
dues, as applicable, with the appropriate authorities.
Also, refer note 31 to the standalone financial
statements regarding management’s assessment
on certain matters relating to provident fund.

(b)According to the information and explanations given
to us and the records of the Company examined byus, there are no statutory dues of provident fund as
referred to in sub-clause (a) which have not been
deposited on account of any dispute. The particularsof other statutory dues referred to in sub-clause (a)as at March 31, 2022 which have not been depositedon account of a dispute, are as follows:

AmountPeriod to which the(` in crore) # amount relates

Forum where the disputes are
pending34

1995-2010, 2014-2016

Assistant Commissioner/Deputy
Commissioner /Commissioner/
Revisionary Authorities/ Joint
Commissioner (A) /Additional
Commissioner (A)5

2002-2007, 2009-2011

Tribunal

33

1999-2007, 2012-2013

High Court

20

2000-2003, 2008-2009,2012-2018

Assistant Commissioner/
Commissioner/ Revisionary
Authorities/ Commissioner (A)1,098

2001-2018

Customs, Excise and Service Tax
Appellate Tribunal (CESTAT)

10

2001-2008

High Court

3

2014-2016

Supreme Court

17

2017-2018

Customs, Excise and Service Tax
Appellate Tribunal (CESTAT)

Integrated Annual Report 2021-22451

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Annexure A to Independent Auditor’s Report
Name of the statute

Nature of dues

The Customs Act, 1962 Custom Duty

The Service Tax under
the Finance Act, 1994

Service Tax

AmountPeriod to which the(` in crore) # amount relates

Forum where the disputes are
pending3

2004-2005, 2017-2021

Commissioner (Appeal)

12004-2005, 2016-2017

Customs, Excise and Service Tax
Appellate Tribunal (CESTAT)

9

2008-2013, 2016-2018

Assistant Commissioner/
Commissioner/ Revisionary
Authorities/ Commissioner (A)402

2004-2018

Customs, Excise and Service Tax
Appellate Tribunal (CESTAT)

16

2013-2016

High Court

59

2016-2019, 2021-2022

Assistant Commissioner/Commissioner(A)/ Joint Commissioner

27

2016-2021

High Court

The Central Goods
and Service Tax Act,
2017

Goods andServices Tax

Income Tax Act, 1961

Income Tax

19

2015-2017

Commissioner of Income Tax Appeals

Building and Other
BOCW Cess
Construction Workers
Welfare Cess Act, 1996

191

2008-2018

State Labour Commissioner

Mines and Minerals(Development andRegulation) Act, 1957

Royalty28

1991-2011

Certificate Officer

Orissa Entry Tax, 1999

Entry Tax76

2003-2018

High Court

Uttar Pradesh Tax on
Entry of Goods into
Local Areas Act, 2007

Entry Tax

20

2006-2008

High Court

87

2000-2012

Supreme Court

Uttar Pradesh Stamp
Act

Stamp Duty

253

2006-2007

High Court

Indian Stamp Act, 1899 Stamp Duty*

2003-2004

High Court

The Employees State
Insurance Act, 1948

Employees
State Insurance*

2004-2005

Employees State Insurance Court

Transit Permit Pass
Regulation, 1973

Transit Permit
Pass1

2006-07

High Court

Uttar Pradesh Kshetra
Panchayat and Zila
Panchayat Adhiniyam,
1961

Toll Tax54

2003-2004, 2016-2017

High Court#

above amounts are net of payments made under protest.

*

Represents figures below the rounding off convention used in this report.

viii. According to the information and explanations given to
us and the records of the Company examined by us, there
are no transactions in the books of account that has beensurrendered or disclosed as income during the year in the
tax assessments under the Income Tax Act, 1961, that has
not been recorded in the books of account.
ix.

(x)

(a)

According to the records of the Company examinedby us and the information and explanation given tous, the Company has not defaulted in repaymentof loans or other borrowings or in the payment ofinterest to any lender during the year.

(b)

According to the information and explanations given
to us and on the basis of our audit procedures, wereport that the Company has not been declared
willful defaulter by any bank or financial institution
or government or any government authority.

(c)

In our opinion, and according to the informationand explanations given to us, the term loans havebeen applied for the purposes for which they wereobtained. (Also refer Note 56C to the standalone
financial statements)(d)According to the information and explanations given
to us, and the procedures performed by us, and onan overall examination of the standalone financial
statements of the company, we report that no funds
raised on short-term basis have been used for longterm purposes by the company.

(e)

According to the information and explanations
given to us and on an overall examination of thestandalone financial statements of the Company,
we report that the Company has not taken any funds
from any entity or person on account of or to meetthe obligations of its subsidiaries, associates or joint
ventures.

(f)

According to the information and explanations given
to us and procedures performed by us, we report that
the Company has not raised loans during the year
on the pledge of securities held in its subsidiaries,
joint ventures or associate companies.

(a)

The Company has not raised any money by way of
initial public offer or further public offer (including
debt instruments) during the year. Accordingly, thereporting under Clause 3(x)(a) of the Order are notapplicable to the Company.

(b)

452

HINDALCO INDUSTRIES LIMITEDThe Company has not made any preferential
allotment or private placement of shares or fully or
partially or optionally convertible debentures during

the year. Accordingly, the reporting under Clause 3(x)(b) of the Order are not applicable to the Company.
(xi) (a)During the course of our examination of thebooks and records of the Company, carried out inaccordance with the generally accepted auditing
practices in India, and according to the informationand explanations given to us, we have neither
come across any instance of material fraud by theCompany or on the Company, noticed or reported
during the year, nor have we been informed of any
such case by the Management.

(b)During the course of our examination of thebooks and records of the Company, carried out inaccordance with the generally accepted auditing
practices in India, and according to the informationand explanations given to us, a report under Section
143(12) of the Act, in Form ADT-4, as prescribed underrule 13 of Companies (Audit and Auditors) Rules,
2014 was not required to be filed with the Central
Government. Accordingly, the reporting under clause3(xi)(b) of the Order is not applicable to the Company.

(c)

During the course of our examination of thebooks and records of the Company, carried out inaccordance with the generally accepted auditing
practices in India, and according to the Informationand explanations given to us, the Company hasreceived whistle- blower complaints during the year
which have been considered by us for any bearing
on our audit and reporting.

(xii) As the Company is not a Nidhi Company and the Nidhi
Rules, 2014 are not applicable to it, the reporting under
Clause 3(xii) of the Order are not applicable to theCompany.
(xiii) The Company has entered into transactions with relatedparties in compliance with the provisions of Sections
177 and 188 of the Act. The details of such related party
transactions have been disclosed in the standalone
financial statements as required under Indian AccountingStandard 24 “Related Party Disclosures” specified under
Section 133 of the Act.
(xiv) (a)In our opinion and according to the information andexplanation given to us, the Company has an internal
audit system commensurate with the size and natureof its business.

(b)

The reports of the Internal Auditor for the period
under audit have been considered by us.

Integrated Annual Report 2021-22453

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Annexure A to Independent Auditor’s Report(xv) The Company has not entered into any non-cash
transactions with its directors or persons connected withthem. Accordingly, the reporting on compliance with theprovisions of Section 192 of the Act under clause 3(xv) of
the Order is not applicable to the Company.
(xvi) (a)The Company is not required to be registered under
Section 45-IA of the Reserve Bank of India Act, 1934.
Accordingly, the reporting under Clause 3(xvi)(a) of
the Order is not applicable to the Company.

(b)

The Company has not conducted non-banking
financial / housing finance activities during the year.
Accordingly, the reporting under Clause 3(xvi)(b) of
the Order is not applicable to the Company.

(c)

The Company is not a Core Investment Company(CIC) as defined in the regulations made by the
Reserve Bank of India. Accordingly, the reporting
under Clause 3(xvi)(c) of the Order is not applicableto the Company.

(d)Based on the information and explanations provided
by the management of the Company, the Group has
five CICs as part of the Group. We have not, however,separately evaluated whether the information
provided by the management is accurate andcomplete.

(xvii) The Company has not incurred any cash losses in thefinancial year or in the immediately preceding financial
year.
(xviii) There has been no resignation of the statutory auditors
during the year and accordingly the reporting under
Clause (xviii) is not applicable.
Sr. Name of the
No. Company

1454

Mahan Coal
Limited

CIN

U01010MP2006PLC018586

HINDALCO INDUSTRIES LIMITED(xix) According to the information and explanations given
to us and on the basis of the financial ratios (Also refer
Note 54 to the standalone financial statements), ageing
and expected dates of realisation of financial assets
and payment of financial liabilities, other informationaccompanying the standalone financial statements, ourknowledge of the Board of Directors and management
plans and based on our examination of the evidence
supporting the assumptions, nothing has come to ourattention, which causes us to believe that any material
uncertainty exists as on the date of the audit report that
Company is not capable of meeting its liabilities existingat the date of balance sheet as and when they fall due
within a period of one year from the balance sheet date.
We, however, state that this is not an assurance as tothe future viability of the company. We further state that
our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of
one year from the balance sheet date, will get discharged
by the company as and when they fall due.

Sr. Name of the
No. Company

CIN

Relationshipwith the Holding
Company

Date of therespective
auditors’
reportParagraph number andcomment in the respective
CARO report reproduced
below:

2

U10100MH2007PLC174466

Joint Operation

May 23, 2022

vii. (a). According to theinformation and explanations
given to us and based on our
examination of the books ofaccounts, the Company does nothave any undisputed statutory
dues related to of Provident Fund,
Employees’ State Insurance, Sales
Tax, Customs Duty, Excise Duty,
VAT and GST as on 31st March
2022. However, the Company isregular in depositing Income tax
with the appropriate authorities
and there are no undisputed
amounts payable for the same
were outstanding as at March
31, 2022 for a period exceeding
six months from the date they
became payable. The Company is
yet to pay Professional Tax of Rs
4,600 for FY 18-19, Rs 4,600/- for
FY 19-20, Rs 4,600/- for FY 20-21
and Rs 3700/- for FY 21-22.xvii.
According to the informationand explanations given to us
and based on our examination of
the records of the Company, theCompany has incurred cash losses
during the financial year coveredby our audit and the immediately
preceding financial year.

Tubed Coal
Mines Limited(xx) As at balance sheet date, the Company does not haveany amount remaining unspent under Section 135(5) of
the Act. Accordingly, reporting under clause 3(xx) of theOrder is not applicable.
(xxi) As required by paragraph 3(xxi) of the CARO 2020,
we report that the auditors of the following joint
operations, which are companies incorporated in India,
have given qualification or adverse remarks in their
CARO report on the standalone financial statementsof the respective joint operation companies which areconsolidated in standalone financial statements of theCompany:

Relationshipwith the Holding
Company

Date of therespective
auditors’
reportParagraph number andcomment in the respective
CARO report reproduced
below:

Joint Operation

May 17, 2022

xiv. The Company did not have aninternal audit system for the year
under Audit.xvii. The Company
has incurred cash losses during
the current financial year as wellas in the immediately preceding
financial year. The amount of cash
loss during the current year is` 3,361.71 and ` 38,615.09 in theimmediately preceding financial
year.

For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/ E-300009
Sarah George
PartnerMembership Number: 045255
UDIN: 22045255AJPZYN4652
Mumbai
May 26, 2022

Integrated Annual Report 2021-22455

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Annexure B to Independent Auditor’s Report

Referred to in paragraph 16(f) of the Independent Auditor’s Report of even date to the members of
Hindalco Industries Limited on the standalone financial statements as of and for the year ended March 31, 2022
Report on the Internal Financial Controls with reference
to Standalone Financial Statements under clause (i) of
sub-section 3 of Section 143 of the Act
1.

4.

We have audited the internal financial controls withreference to standalone financial statements of Hindalco
Industries Limited (“the Company”) as of March 31, 2022
in conjunction with our audit of the standalone financial
statements of the Company for the year ended on thatdate which includes the internal financial controls overfinancial reporting of the Company’s two joint operations
which are companies incorporated in India, as of that date.

Management’s Responsibility for Internal Financial
Controls
2.

The Company’s management is responsible forestablishing and maintaining internal financial controls
based on the internal control over financial reporting
criteria established by the Company considering theessential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting (“the Guidance Note”) issued
by the Institute of Chartered Accountants of India (“ICAI”).
These responsibilities include the design, implementationand maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderlyand efficient conduct of its business, including adherence
to company’s policies, the safeguarding of its assets,
the prevention and detection of frauds and errors, theaccuracy and completeness of the accounting records, andthe timely preparation of reliable financial information,
as required under the Act.

Auditor’s Responsibility
3.

456

Our responsibility is to express an opinion on the
Company’s internal financial controls with reference tostandalone financial statements based on our audit. We
conducted our audit in accordance with the Guidance Noteand the Standards on Auditing deemed to be prescribedunder Section 143(10) of the Act to the extent applicable
to an audit of internal financial controls, both applicable
to an audit of internal financial controls and both issued
by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance
about whether adequate internal financial controls
with reference to standalone financial statements wasestablished and maintained and if such controls operated
effectively in all material respects.

HINDALCO INDUSTRIES LIMITED5.

Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial
controls system with reference to standalone financial
statements and their operating effectiveness. Our audit
of internal financial controls with reference to financial
statements included obtaining an understanding ofinternal financial controls with reference to standalone
financial statements, assessing the risk that a material
weakness exists, and testing and evaluating thedesign and operating effectiveness of internal
control based on the assessed risk. The procedures
selected depend on the auditor’s judgement,
including the assessment of the risks of material
misstatement of the financial statements, whether due
to fraud or error.
We believe that the audit evidence we have obtained
and the audit evidence obtained by the other auditors
in terms of their reports referred to in the Other Mattersparagraph below is sufficient and appropriate to provide
a basis for our audit opinion on the Company’s internalfinancial controls system with reference to standalone
financial statements.

the Company considering the essential components ofinternal control stated in the Guidance Note issued by
the Institute of Chartered Accountants of India.

Inherent Limitations of Internal Financial Controls withreference to financial statements
7.

Because of the inherent limitations of internal financial
controls with reference to financial statements, including
the possibility of collusion or improper management
override of controls, material misstatements due to error
or fraud may occur and not be detected. Also, projectionsof any evaluation of the internal financial controls withreference to financial statements to future periods are
subject to the risk that the internal financial control
controls with reference to financial statements may
become inadequate because of changes in conditions,or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion8.

In our opinion, the Company and its joint operations,which are companies incorporated in India, has in allmaterial respects, an adequate internal financial controls
system with reference to standalone financial statements
and such internal financial controls with reference
to standalone financial statements were operating
effectively as at March 31, 2022, based on the internal
control over financial reporting criteria established by

Other Matters9.

Our aforesaid report under Section 143(3)(i) of the Act
on the adequacy and operating effectiveness of theinternal financial controls with reference to financial
statements insofar as it relates to two joint operations,which are companies incorporated in India, is based on
the corresponding reports of the auditors of such joint
operation. Our opinion is not modified in respect of thismatter.

For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/ E-300009
Sarah George
PartnerMembership Number: 045255
UDIN: 22045255AJPZYN4652
Mumbai
May 26, 2022

Meaning of Internal Financial Controls with reference tofinancial statements
6.

A company’s internal financial controls with reference
to financial statements is a process designed to provide
reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements
for external purposes in accordance with generally
accepted accounting principles. A company’s internalfinancial controls with reference to financial statements
includes those policies and procedures that (1) pertain
to the maintenance of records that, in reasonabledetail, accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements inaccordance with generally accepted accounting principles,
and that receipts and expenditures of the company arebeing made only in accordance with authorisationsof management and directors of the company; and(3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition,use, or disposition of the company’s assets that
could have a material effect on the financial
statements.

Integrated Annual Report 2021-22457

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Standalone Balance Sheetas at March 31, 2022(` in Crore)Note

31/03/2022
Non-Current Assets
Property, Plant and Equipment (including Right of Use Assets)

2

31,75932,061

Capital Work-in-Progress

2

1,573

1,587

Investment Properties

3

8

8

Goodwill

4A

4-Intangible Assets

4B

529

321

Intangible Assets Under Development

4B

8

122

Investment in Subsidiaries

5

16,423

16,794

Investment in Associates and Joint Ventures

6

160

142

Other Investments

7A

8,515

7,437

Financial Assets

Loans

8

45

11

Derivatives

49

174

225

Other Financial Assets

9A

232

188

Non-Current Tax Assets (Net)

23

-

-

Other Non-Current Assets

10

760

843

60,19059,73911

20,94815,989Investments

7B

4,557

7,358

Trade Receivables

12

2,671

1,602

Cash and Cash Equivalents

13

3,405

1,003

Bank Balances other than Cash and Cash Equivalents

14

3,015

16

Loans

8

172

49

Current Assets
Financial Assets

Derivatives

49

507

495

Other Financial Assets

9B

1,156

254

Other Current Assets
Non-Current Assets Held For Sale

10
15

As at

31/03/2021

ASSETS

Inventories(` in Crore)
Note

As at

2,433

1,438

38,86428,2043

438,86728,20899,057

87,94731/03/2022

31/03/2021

16
17

222
54,20654,428222
49,84250,06418A
2
20

11,668277

15,174
236

-

-

49
21A
22
23
25

387
13
474
2,948
585
16,352

390
10
421
1,966
609
18,806

18B
2
19
20

7,411
65
2,456

4,755
75
255

96
10,919

52
8,748

3,376
1,000
1,006
1,121
180
647
28,27744,62999,057

1,555
937
831
1,168
136
565
19,07737,88387,947

EQUITY AND LIABILITIES
EquityEquity Share Capital
Other Equity
Liabilities
Non-Current Liabilities
Financial Liabilities
Borrowings
Lease Liabilities
Trade Payables(I) Outstanding dues of micro enterprises and small enterprises;(II) Outstanding dues of creditors other than micro enterprises andsmall enterprises
Derivatives
Other Financial Liabilities
Provisions
Deferred Tax Liabilities (Net)
Other Non-Current Liabilities
Current liabilities
Financial Liabilities
Borrowings
Lease Liabilities
Supplier’s Credit
Trade Payables(I) Outstanding dues of micro enterprises and small enterprises;(II) Outstanding dues of creditors other than micro enterprises andsmall enterprises
Derivatives
Other Financial Liabilities
Provisions
Current Tax Liabilities (Net)
Contract Liabilities
Other Current Liabilities

49
21B
22
23
24
25

Basis of Preparation and Significant Accounting Policies

1

The accompanying Notes are an integral part of the Standalone Financial Statements
This is the Standalone Balance Sheet referred in our report of even date
For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/ E-300009

Praveen Kumar Maheshwari
Whole-time Director &Chief Financial Officer
DIN-00174361

Satish Pai
Managing Director
DIN-06646758

Sarah George
PartnerMembership No. 045255

Anil MalikCompany Secretary

K N Bhandari
Director
DIN No.: 00026078

Place : Mumbai
Dated : May 26, 2022

458

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22459

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Standalone Statement of Profit and Lossfor the Year ended March 31, 2022(` in Crore)

Note(` in Crore)

Year ended
31/03/2022

Note

Year ended

31/03/2021

INCOME

31/03/2022

31/03/2021

(9)

(9)

(1,867)(757)

Cost of Hedging Reserve

(75)

(168)

Income Tax effect

682

326

Items that will be reclassified to Statement of Profit and Loss

Revenue from Operations

26

67,65342,701Other Income

27

535

650

68,18843,351

Total Income

Change in Fair Value of Debt Instruments Designated as FVTOCI
Effective Portion of Cash flow Hedges

EXPENSES
Cost of Materials Consumed

28

41,97927,178Other Comprehensive Income/ (Loss) for the year

(397)

3,780

Trade Purchases

29

1,922

1,098

Total Comprehensive Income/ (Loss) for the year

5,110

4,773

Changes in inventories of Finished Goods, Work-in-Progress and Stock-inTrade30(3,344)(1,821)

Earnings Per Share

Employee Benefits Expense

31

2,058

1,844

Basic (` )

24.76

4.46

Power and Fuel

32

6,781

5,668

Diluted (` )

24.73

4.46

Finance Cost

33

1,417

1,469

Depreciation and Amortization Expense

34

1,752

1,708

Impairment Loss on Non-Current Assets

35

95

140

Impairment Loss/ (Reversal) on Financial Assets (Net)

36

2

(7)

Other Expenses

37

6,962

4,507

59,624

41,784

8,564

1,567

(107)

7

8,457

1,574

Current Tax Expense

1,496

283

Deferred Tax Expense

1,454

298

5,507

993

(5)

57

Change in Fair Value of Equity Instruments Designated as FVTOCI

1,108

4,351

Income Tax effect

(231)

(20)

Total Expenses
Profit/(Loss) before Exceptional Items and Tax
Exceptional Income/ (Expenses) (Net)38

Profit/(Loss) before Tax
Tax Expenses

1

Basis of Preparation and Significant Accounting Policies
The accompanying Notes are an integral part of the Standalone Financial Statements
This is the Standalone Statement of Profit and Loss referred in our report of even date
For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/ E-300009

Sarah George
PartnerMembership No. 045255

Praveen Kumar Maheshwari
Whole-time Director &Chief Financial Officer
DIN-00174361

Satish Pai
Managing Director
DIN-06646758

Anil MalikCompany Secretary

K N Bhandari
Director
DIN No.: 00026078

Place : Mumbai
Dated : May 26, 2022

23

Profit/(Loss) for the year
Other Comprehensive Income/ (Loss)

40

39

Items that will not be reclassified to Statement of Profit and Loss
Remeasurement of Defined Benefit Obligation

460

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

461

462
HINDALCO INDUSTRIES LIMITED-

Other Comprehensive Income/ (Loss) for the year
Total Comprehensive Income/ (Loss) for the year
Hedging (Gain)/ Loss and cost of hedging transferred to
non-financial assets
Transfer to Debenture Redemption Reserve-

Employee Share Options Lapsed/Forfeited
Dividends Paid
Balance as at March 31, 2021-

Total Comprehensive Income/ (Loss) for the year
Hedging (Gain)/ Loss and cost of hedging transferred to
non-financial assets
Realised Gain/ (Loss) on Equity FVTOCI transferred to
Retained Earnings
Transfer to Debenture Redemption Reserve

-

17
1

Shares Acquired by the Trust
Shares Issued by the Trust
Employee Share Based Transactions
Employee Share Options Expenses
Dividends Paid
Balance as at March 31, 2022
Basis of Preparation and Significant Accounting Policies

Transactions with owners in their capacity as owners-

Other Comprehensive Income/ (Loss) for the year

Profit/ (Loss) for the year

222

222

222

Amount

145

-

-

-

-

-

-

-

-

-

-

145

102

-

-

-

-

-

-

-

-

-

-

102

7,715

-

-

-

-

-

-

-

-

-

-

7,715

8,224

-

-

-

7

-

-

-

-

-

-

8,217

1,350

-

-

-

-

-

150

-

-

-

-

1,200

55

-

(1)

15

(4)

-

-

-

-

-

-

45

145

-

-

-

-

-

-

-

-

-

-

102

-

-

-

-

-

-

-

-

-

-

7,715

-

-

-

-

-

-

-

-

-

-

Anil MalikCompany Secretary

(199)

5,494

(222)

1

-

-

1

(150)

-

1,030

37

993

4,834

21,354

-

-

-

-

-

-

-

-

-

-

10,252

(667)

-

-

2

-

(150)

68

-

5,505

(2)

Other Reserves

Other Reserves

1

-

-

-

-

-

-

-

(6)

(6)

7

(596)

-

-

-

-

-

-

(1)

(493)

(493)

(102)

6,923

-

-

-

-

-

-

(68)

-

874

874

5,507

(1,851)

-

-

-

-

-

-

-

(41)

(1,214)(1,214)

(39)

-

-

-

-

-

-

-

-

(49)

(49)

Cost of
Hedging
Reserve

10

-

-

-

-

-

-

-

(109)

(109)

119

Cost of
Hedging
Reserve

49,842

(222)

-

15

3

2

-

(1)

4,773

3,780

993

45,272Total

K N Bhandari
Director
DIN No.: 00026078

54,206

(667)

35

6

15

(94)

-

-

(41)

5,110

(397)

5,507

Total

(` in Crore)

Satish Pai
Managing Director
DIN-06646758

(5)

-

-

-

-

-

-

-

-

(6)

(6)

Gain/ Gain/ (Loss) Effective(Loss) onon Debt portion of
Equity Instruments Cash FlowFVTOCI
Hedge

6,117

-

-

-

-

-

-

-

4,351

4,351

1,766

Gain/ Gain/ (Loss) Effective(Loss) onon Debt portion of
Equity Instruments Cash FlowFVTOCI
Hedge

Statutory Reports

Place : Mumbai
Dated : May 26, 2022

-

-

-

24

Sarah George
PartnerMembership No. 045255

Firm Registration Number: 304026E/ E-300009

-

-

-

-

-

(94)

Praveen Kumar Maheshwari
Whole-time Director &Chief Financial Officer
DIN-00174361

76

-

35

(3)

(11)

-

-

-

-

-

-

For Price Waterhouse & Co Chartered Accountants LLP

1,500

-

-

-

-

-

150

-

-

-

-

21,354

-

-

-

-

-

-

-

-

-

-

21,354

Treasury General Retained
Shares Reserve Earnings
held by
ESOP Trust

(129)

-

-

-

-

1

-

-

-

-

-

(130)

Treasury General Retained
Shares Reserve Earnings
held by
ESOP Trust(` in Crore)

Our Capitals

This is the Standalone Statement of Changes in Equity referred in our report of even date

8,233

-

-

9

-

-

-

-

-

-

-

Share
Reserves and Surplus
Application
CapitalBusiness Securities Debenture Employee
Money Pending Capital
Stock
Allotment Reserve Redemption Reconstruction Premium Redemption
Reserve
Reserve
Reserve
Options-

Employee Share Options Expenses

Note

-

Employee Share Based Transactions

Particulars-

Shares Issued by the Trust

17-

Profit/ (Loss) for the year

Transactions with owners in their capacity as owners

16

-

16

-

16

Note

(` in Crore)

Share
Reserves and Surplus
Application
CapitalCapitalBusiness
Securities
Debenture Employee
Money Pending
Stock
Allotment Reserve Redemption Reconstruction Premium Redemption
Reserve
Reserve
Reserve
Options-

Note

Balance as at April 01, 2020

Particulars

Other Equity

Balance as at March 31, 2022

Changes in Equity Share Capital

Balance as at March 31, 2021

Changes in Equity Share Capital

Balance as at April 01, 2020

Particulars

Equity Share Capital

Strategic Overview

The accompanying Notes are an integral part of the Standalone Financial Statements

BA

for the Year ended March 31, 2022

Standalone Statement of Changes in Equity

Corporate Overview
Financial Statements

Integrated Annual Report 2021-22

463

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Standalone Statement of Cash Flowsfor the year ended March 31, 2022(` in Crore)Note

31/03/2022
A. CASH FLOW FROM OPERATING ACTIVITIESProfit/ (Loss) before tax
Adjustment for :Finance Costs
Depreciation and Amortization Expense
Non-Cash Employee Share-Based payments
Impairment Loss/ (Reversal) on Financial Assets (Net)Impairment Loss on Non-Current Assets
Other Non-Operating Income
Unrealised Foreign Exchange (Gain)/ Loss (Net)
Unrealised (Gain)/ Loss on Derivative Transactions (Net)
Fair Value (Gain)/ Loss on modification of Borrowings (Net)(Gain)/ Loss on Assets held for Sale (Net)(Gain)/ Loss on Property, Plant and Equipment and Intangible Assets Sold/
Discarded (Net)Interest Income
Dividend Income
Exceptional (Income)/ Expense
Changes in Cash Flow Hedges net of reclassification from OCI(Gain)/ Loss on Investments measured at FVTPL (Net)
Operating profit before Working Capital Changes
Changes in Working Capital:(Increase)/ Decrease in Inventories (Net)(Increase)/ Decrease in Trade Receivables(Increase)/ Decrease in Financial Assets(Increase)/ Decrease in Non-Financial Assets
Increase/ (Decrease) in Trade Payables
Increase/ (Decrease) in Financial Liabilities
Increase/ (Decrease) in Non-Financial Liabilities (including Contract
Liabilities)
Cash Generated from Operation before Tax
Refund/ (Payment) of Income Tax (Net)Net Cash Generated/ (Used) - Operating Activities
B. CASH FLOW FROM INVESTING ACTIVITIESPayments to acquire Property Plant and Equipment, Intangible Assets andInvestment Property
Proceeds from disposal of Property Plant and Equipment, Intangible Assets andInvestment Property
Acquisition of business
Investment in Subsidiaries
Return of Capital from Subsidiary
Investment in Associates and Joint Ventures
Investment in Equity Shares at FVTOCI(Purchase)/ Sale of Other Investments (Net)
Loans and Deposits given
Receipt of Loans and Deposits given
Interest Received
Dividend Received
Net Cash Generated/ (Used) - Investing Activities

464

HINDALCO INDUSTRIES LIMITED

8,457
33
34
31
36
35

27
27
27
38
27

(` in Crore)

Year ended

Note

Year ended

31/03/2021
1,574

1,417
1,752
35
2
95
(117)
29
53
(53)
31

1,469
1,708
15
(7)
140
(6)
(1)
434
(56)
20

(144)
(31)
107
(34)
(263)
11,336

(105)
(18)
(127)
(121)
(421)
4,498

(4,797)(1,030)
(91)
(767)
1,898
32
179

(3,927)
493
(35)
268
4,022
(9)
48

6,760
(1,552)
5,208

5,358
206
5,564

(1,506)(1,137)

67

14

(265)
(26)
557
(1)
102
2,966
(4,029)44123
31(1,937)(1)(43)(2,278)
(167)
8
100
18
(3,486)31/03/2022

31/03/2021

C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of Equity Shares (Including Share Application Money)
Treasury Shares acquired by ESOP Trust
Proceeds from Shares issued by ESOP Trust

6

3

(94)

-

15

2

Proceeds from Long-Term Borrowings

18A

2,500

-

Pre-payment of Long-Term Borrowings

18A

(460)

-

Repayment of Long-Term Borrowings

18A

(8)

(6)

Principal Payments of Leases Liabilities

18A

(71)

(69)

Proceeds from/ (Repayment of) Current Borrowings (Net)18A(2,923)(2,829)Proceeds from Current Borrowings from Subsidiary

1,000

-

Repayment of Current Borrowings from Subsidiary(1,000)

-

2,161

255

Finance Cost Paid

(1,328)(1,440)

Dividend Paid

(667)

(222)

Net Cash Generated/ (Used) - Financing Activities(869)(4,306)Net Increase/(Decrease) in Cash and Cash Equivalents

2,402(2,228)Add: Opening Cash and Cash Equivalents

1,003

3,231

Closing Cash and Cash Equivalents

3,405

1,003
1,003

Increase/ (Decrease) in Supplier’s Credit

18A

Reconciliation of Closing Cash and Cash Equivalents with Balance Sheet:
Cash and Cash Equivalents as per Balance Sheet

13

3,405

Less: Temporary Overdraft Balance in Current Accounts

21B

-

-

3,405

1,003

131

17

Cash and Cash Equivalents as per Cash Flow Statement
Supplemental Information
Non Cash Transactions from Investing and Financing Activities:
Acquisition of Right of Use Assets

2B
1

Basis of Preparation and Significant Accounting Policies
The accompanying Notes are an integral part of the Standalone Financial Statements
This is the Standalone Statement of Cash Flows referred in our report of even date
For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/ E-300009

Sarah George
PartnerMembership No. 045255

Praveen Kumar Maheshwari
Whole-time Director &Chief Financial Officer
DIN-00174361

Satish Pai
Managing Director
DIN-06646758

Anil MalikCompany Secretary

K N Bhandari
Director
DIN No.: 00026078

Place : Mumbai
Dated : May 26, 2022

Integrated Annual Report 2021-22465

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
Company Overview
Hindalco Industries Limited (“the Company”) was incorporated
in India in the year 1958 having its registered office at Ahura
Centre, 1st Floor, B Wing, Mahakali Caves Road, Andheri (East),
Mumbai - 400093.
The Company has two main streams of business Aluminium
and Copper. In Aluminium, the Company caters to theentire value chain starting from mining of bauxite and coalthrough production of value added products for various
applications.
The Company along with its subsidiaries has manufacturing
operations in ten countries including India spread over fourcontinents North America, South America, Asia and Europe.
Apart from primary aluminium, the Company produces
aluminium sheet, extrusion and light gauge products for use
in packaging market which includes beverage and food, canand foil products as well as for use in automotive, electronic,architecture, transportation and industrial product markets.
The Company also has one of the largest single location Copper
smelting facility in India.
The equity shares of the Company are listed on National Stock
Exchange of India Limited (NSE) and BSE Limited (BSE). GDRs
are listed on the Luxembourg Stock Exchange.

1.

Basis of Preparation and Significant
Accounting Policies

1A. Basis of preparation
The separate financial statements of Hindalco Industries
Limited (“the Company”) comply in all material aspects
with Indian Accounting Standards (“Ind-AS”) asprescribed under section 133 of the Companies Act,
2013 (“the Act”), as notified under the Companies (Indian
Accounting Standards) Rules, 2015 (including subsequent
amendments) and other accounting principles generally
accepted in India.

The financial statements for the year ended March 31, 2022
have been approved for issue by the Board of Directorsof the Company in their meeting held on May 26, 2022.
The financial statements have been prepared on historicalcost convention on accrual basis except for following
assets and liabilities which have been measured at fairvalue:
466

HINDALCO INDUSTRIES LIMITED•

Certain financial instruments - measured at fairvalue;In addition, for financial reporting purposes, fair value
measurements are categorised into Level 1, 2 or 3 basedon the degree to which the inputs to the fair value
measurements are observable and the significance of the
inputs to the fair value measurement in its entirety, which
are described as follows:•

Assets held for sale - measured at fair value less costto sell;•Plan assets under defined benefit plans - measured
at fair value;•

Liabilities for Cash settled share-based payments;
and•Inventories those are designated in a Fair value hedge
relationship where both the derivative and inventory
are fair valued.

•

Level 2 inputs are inputs, other than quoted prices
included within Level 1, that are observable for theasset or liability, either directly or indirectly; andIn addition, the carrying values of recognised assets andliabilities designated as hedged items in fair value hedges
that would otherwise be carried at cost are adjusted torecord changes in the fair values attributable to the risks
that are being hedged in effective hedge relationship.

•

Level 3 inputs are unobservable inputs for the asset
or liability.

•

The Financial Statements have been presented in Indian
Rupees (INR), which is the Company’s functional currency.
All financial information presented in INR has beenrounded off to the nearest Crore Rupees (INR 1 Crore =INR 10,000,000) without any decimal unless otherwise
stated.

Historical cost is generally based on the fair value of theconsideration given in exchange for goods and services.
Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date,regardless of whether that price is directly observable orestimated using another valuation technique. In estimating
the fair value of an asset or a liability, the Company take
into account the characteristics of the asset or liability
if market participants would take those characteristics
into account when pricing the asset or liability at themeasurement date. Fair value for measurement and/or disclosure purposes in these financial statements isdetermined on such a basis, except for employee sharebased payment, leasing transactions, and measurementsthat have some similarities to fair value but are not fairvalue, such as net realisable value in Inventories or value in
use in Impairment of Assets. The basis of fair valuation ofthese items are given as part of their respective accounting
policies.
Company has determined current and non-current
classification of its assets and liabilities in the financial
statements as per the requirement of Ind AS 1 - ‘Presentationof Financial Statements’. Based on its assessment, theCompany has ascertained its normal operating cycle as
12 months for the purpose of current and non-current
classification of its assets and liabilities.

Level 1 inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities that theCompany can access at the measurement date;

1B. Significant Accounting Policies
A summary of the significant accounting policies appliedin the preparation of the financial statements are as given
below. These accounting policies have been appliedconsistently to all the periods presented in the financial
statements.
A.

Investment in Subsidiaries and joint ventures
The investments in subsidiaries and joint ventures arecarried in the financial statements at historical cost except
when the investment, or a portion thereof, is classified
as held for sale, in which case measured at lower ofcarrying amount and fair value less costs to sell. When the
Company is committed to a sale plan involving disposalof an investment, or a portion of an investment, in any
subsidiary or joint venture, the investment or the portionof the investment that will be disposed of is classified asheld for sale when the criteria described above are met.
Any retained portion of an investment in a subsidiary or a
joint venture that has not been classified as held for salecontinues to be accounted for at historical cost.
Investments in subsidiaries and joint ventures carried atcost are tested for impairment in accordance with Ind
AS 36 Impairment of Assets. The carrying amount of theinvestment is tested for impairment as a single asset

by comparing its recoverable amount with its carrying
amount, any impairment loss recognised reduces the
carrying amount of the investment.
B.

Investment in Associates
The investments in associates are carried in these financial
statements at fair Value through Other Comprehensive
Income (OCI).

C.

Investment in joint operations
A joint operation is a joint arrangement whereby the parties
that have joint control of the arrangement have rights tothe assets, and obligations for the liabilities, relating to
the arrangement. Joint control is the contractually agreed
sharing of control of an arrangement, which exists only
when decisions about the relevant activities require
unanimous consent of the parties sharing control.
When the Company undertakes its activities under joint
operations, the Company as a joint operator recognises
in relation to its interest in a joint operation:•

its assets, including its share of any assets held
jointly;•

its liabilities, including its share of any liabilities
incurred jointly;•

its revenue from the sale of its share of the output
arising from the joint operation;•

its share of the revenue from the sale of the output
by the joint operation; and•its expenses, including its share of any expenses
incurred jointly

The Company accounts for the assets, liabilities, revenues
and expenses relating to its interest in a joint operation inaccordance with the standard applicable to the particularassets, liabilities, revenues and expenses.
When the Company transacts with a joint operation inwhich the Company is a joint operator (such as a sale orcontribution of assets), the Company is considered to be
conducting the transaction with the other parties to thejoint operation, and gains and losses resulting from thetransactions are recognised in the financial statements
only to the extent of other parties’ interests in the joint
operation.

Integrated Annual Report 2021-22467

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
When the Company transacts with a joint operation inwhich the Company is a joint operator (such as a purchaseof assets), the Company does not recognise its share of
the gains and losses until it resells those assets to a third
party.
See Note 5 - Investment in Subsidiaries and Note 6 Investment in Associates and Joint Ventures for further
details.
D.

Property, Plant and Equipment
Property, plant and equipment held for use in the
production or/and supply of goods or services, or foradministrative purposes, are stated in the balance sheet
at cost, less any subsequent accumulated depreciationand subsequent accumulated impairment losses.
The initial cost at cash price equivalent of property, plantand equipment acquired comprises its purchase price,including import duties and non-refundable purchasetaxes, any directly attributable costs of bringing theassets to its working condition and location and present
value of any obligatory decommissioning costs for its
intended use. Cost may also include effective portion on
qualifying cash flow hedges of foreign currency purchasesof property, plant and equipment transferred from hedge
reserve as basis adjustment.
In case of self-constructed assets, cost includes thecosts of all materials used in construction, direct labour,
allocation of overheads, directly attributable borrowing
costs and effective portion of cash flow hedges of foreign
currency transferred from the hedge reserve as basis
adjustment.
Subsequent expenditure on major maintenance or repairs
includes the cost of the replacement of parts of assets
and overhaul costs. Where an asset or part of an asset isreplaced and it is probable that future economic benefits
associated with the item will be available to the Company,
the expenditure is capitalised and the carrying amount of
the item replaced is derecognised.
Similarly, overhaul costs associated with major
maintenance which can be measured reliably arecapitalised and depreciated over their useful lives where
it is probable that future economic benefits will beavailable and any remaining carrying amounts of the costof previous overhauls are derecognised. All other costs
are charged to profit and loss during the reporting period
in which they are incurred.

468

HINDALCO INDUSTRIES LIMITED

Capital work-in-progress
Capital work-in-progress comprises of tangible items in
the course of construction for production or/and supply of
goods or services or administrative purposes are carriedat cost, less any accumulated impairment loss. At the point
when an asset is capable of operating at management’s
intended use, the cost of construction is transferred to theappropriate category of property, plant and equipment.
Costs associated with the commissioning of an asset arecapitalised.
Depreciation
Depreciation is charged so as to write off the cost or valueof assets, over their estimated useful lives. Depreciation isrecorded using the straight line basis. The estimated useful
lives and residual values are reviewed at each year end, withthe effect of any changes in estimate accounted for on aprospective basis. Each component of an item of property,
plant and equipment with a cost that is significant inrelation to the total cost of that item is depreciatedseparately if its useful life differs from the others
components of the asset.
Depreciation commences when the assets are ready for
their intended use. Depreciated assets in Property, Plant& Equipment and accumulated depreciation amounts are
retained fully until they are removed/retired from activeuse.
Leasehold improvements are depreciated over the shorterof their useful life or the lease term, unless the entity
expects to use the assets beyond the lease term.
The useful life of the items of Property, Plant andEquipment estimated by the management for the current
and comparative period are in line with the useful life as
per Schedule II of the Companies Act, 2013, refer note 2.
Disposal of assets
An item of property, plant and equipment is derecognised
upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset.
Any gain or loss arising on the disposal or retirement of
an item of property, plant and equipment is determinedas the difference between net disposal proceeds andthe carrying amount of the asset and is recognised in thestatement of profit and loss.
See Note 2 - Property, Plant and Equipment (including
ROU Assets) and Capital Work-in-Progress for further
details.

E.

F.

Investment properties
Investment properties held to earn rentals or for capital
appreciation or both are stated in the balance sheet atcost, less any subsequent accumulated depreciation andsubsequent accumulated impairment losses. Depreciationis charged on a straight line basis over their estimateduseful lives. Any gain or loss on disposal of investment
property is determined as the difference between net
disposal proceeds and the carrying amount of theproperty and is recognized in the statement of profit
and loss. Transfer to, or from, investment property isdone at the carrying amount of the property. See Note
3 - Investment Properties for further details.

development (or from the development phase of aninternal project) is recognized if, and only if all of thefollowing can be demonstrated:

Intangible Assets
Goodwill
Goodwill arising on acquisition is carried at cost as
established at the date of acquisition of the business lessaccumulated impairment losses, if any. For the purposeof impairment testing, goodwill is allocated to each of
the cash-generating units expected to benefit from thesynergies of the combination.
Cash-generating units to which goodwill has been
allocated are tested for impairment annually, or more
frequently when there is an indication that the unit
may be impaired. If the recoverable amount of the cash
generating unit is less than the carrying amount of theunit, the impairment loss is allocated first to reduce thecarrying amount of any goodwill allocated to the unit
and then to the other assets of the unit pro-rata on thebasis of the carrying amount of each asset in the unit. An
impairment loss recognised for goodwill is not reversed
in a subsequent period.
Intangible assets acquired separately
Intangible assets acquired are reported at cost lessaccumulated amortization and accumulated impairment
losses. Amortization is charged on a straight line basis
over their estimated useful lives other than Mining rights.
The estimated useful life and amortization method arereviewed at the end of each annual reporting period, withthe effect of any changes in estimate being accounted foron a prospective basis.
Internally-generated intangible assets
Expenditure on research activities is recognized as an
expense in the period in which it is incurred.
An internally-generated intangible asset arising from•the technical feasibility of completing the intangible
asset so that it will be available for use or sale;•management’s intention to complete the intangible
asset and use or sell it;•

the ability to use or sell the intangible asset;•

how the intangible asset will generate probablefuture economic benefits;•

the availability of adequate technical, financial andother resources to complete the development andto use or sell the intangible asset; and•the ability to measure reliably the expenditure
attributable to the intangible asset during its
development.

The amount initially recognized for internally-generated
intangible assets is the sum of the expenditure incurredfrom the date when the intangible asset is recognised.
Where no internally-generated intangible asset can berecognized, development expenditure is charged to thestatement of profit and loss in the period in which it isincurred.
Subsequent to initial recognition, internally-generated
intangible assets are reported at cost less accumulated
amortization and accumulated impairment losses, on thesame basis as intangible assets acquired separately.
Mineral Reserves, Resources and Rights (Mining
Rights)Mineral reserves, resources and rights (together referred
to as ‘mining rights’) which can be reasonably valued,
are recognised in the assessment of fair values onacquisition. Exploitable mineral rights are amortisedusing the unit of production basis over the commercially
recoverable reserves. Mineral resources are included inamortisation calculations where there is a high degreeof confidence that they will be extracted in an economic
manner. Commercially recoverable reserves are proved
and probable reserves. Changes in the commercial
recoverable reserves affecting unit of production
calculations are dealt with prospectively over the revised
remaining reserves.

Integrated Annual Report 2021-22469

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
approved by the regulatory authority, for the life of themine is obtained by dividing the estimated quantity ofoverburden by the estimated quantity of mineable coal /bauxite reserve to be extracted over the life of the mine.
This ratio is periodically reviewed and changes, if any, areaccounted for prospectively.

Exploration for and evaluation of mineral resources
Expenditures associated with exploration for andevaluation of mineral resources after obtaining of legal
rights to explore a specific area but before technicalfeasibility and commercial viability of extracting mineral
resources are demonstrable are recognized as Explorationand Evaluation assets.

The Company measure its Exploration and Evaluation
assets at cost and classifies it as Property, Plant andEquipment or Intangible Assets according to the nature ofassets acquired and applies the classification consistently.

De-recognition of intangible assets
An intangible asset is derecognised on disposal, or when
no future economic benefits are expected from use ordisposal. Gains or losses arising from derecognition of
an intangible asset, measured as the difference between
the net disposal proceeds and the carrying amount of theasset are recognised in the statement of profit and loss
when the asset is derecognised.
Intangible assets with indefinite useful lives and intangible
assets not yet available for use are tested for impairment
annually, and whenever there is an indication that theasset may be impaired.

470

it is probable that the future economic benefit
associated with the stripping activity will be realised;•

the component of the ore body for which access has
been improved can be identified; and•the costs relating to the stripping activity associatedwith the improved access can be reliably measured.

See Note 4B - Intangible Assets and Intangible Assets
under Development for further details.
H.

Non-current assets (or disposal group) held for saleNon-current assets and disposal group are classified asheld for sale if their carrying amount will be recovered
principally through a sale transaction rather than
through continuing use. This condition is regarded as
met only when the asset (or disposal Group) is available
for immediate sale in its present condition subject only
to terms that are usual and customary for sales of such
asset (or disposal Group) and its sale is highly probable.
Management must be committed to the sale, which should
be expected to qualify for recognition as a completed salewithin one year from the date of classification.

See Note 4B - Intangible Assets and Intangible Assets
under Development for further details.
Stripping cost
Stripping costs incurred during the mining production
phase are allocated between cost of inventory produced
and the existing mine asset. The stripping ratio, as

An impairment loss is recognised for any initial orsubsequent write-down of the asset (or disposal group)
to fair value less costs to sell. A gain is recognised forany subsequent increases in fair value less costs to sell

HINDALCO INDUSTRIES LIMITED

Non-current assets classified as held for sale and theassets of a disposal group classified as held for sale arepresented separately from the other assets in the balance
sheet.

Non-current assets (other than Goodwill) that sufferedan impairment are reviewed for possible reversal of theimpairment at the end of each reporting period. Wherean impairment loss subsequently reverses, the carrying
amount of the asset (or cash-generating unit) is increased
to the revised estimate of its recoverable amount, but sothat the increased carrying amount does not exceed thecarrying amount that would have been determined had no
impairment loss been recognised for the asset (or cashgenerating unit) in prior years. A reversal of an impairment
loss is recognised immediately in the statement of profit
and loss.

Discontinued Operations
A discontinued operation is a component of the entitythat has been disposed off or is classified as held for saleand that represents a separate major line of business orgeographical area of operations, is part of a single coordinated plan to dispose of such a line of business or areaof operations, or is a subsidiary acquired exclusively witha view to resale. The results of discontinued operations
are presented separately in the statement of profit andloss.

The overburden removal costs are included in Mining
Rights under Intangible assets and amortised based on
stripping ratio on the quantity of coal / bauxite excavated.

Non-current assets (and disposal group) classified as held
for sale are measured at the lower of their carrying amountand fair value less costs to sell except for those assetsthat are specifically exempt under relevant Ind AS. Oncethe assets are classified as “Held for sale”, those are notsubjected to depreciation till disposal.

See Note 4A - Goodwill for further details

G.

•

If the recoverable amount of an asset (or cash-generating
unit) is estimated to be less than its carrying amount, thecarrying amount of the asset (or cash-generating unit) is
reduced to its recoverable amount. An impairment loss
is recognised immediately in the statement of profit andloss.

A gain or loss not previously recognised by the date of
the sale of the non-current asset (or disposal group) is
recognised at the date of derecognition.

Stripping costs are allocated and included as a componentof the mine asset when they represent significantly
improved access to ore, provided all the following
conditions are met:

If a project does not prove viable, all irrecoverable
exploration and evaluation expenditure associated withthe project net of any related impairment allowances iswritten off to the statement of profit and loss.

As the assets is not available for use, it is not depreciatedbut are monitored for indication of impairment. An
exploration and evaluation asset is no longer classified
as such when the technical feasibility and commercial
viability of extracting minerals resources are demonstrable
and the development of the deposit is intended by the
management. The carrying value of such exploration andevaluation asset is reclassified as Mining Rights.

of an asset (or disposal group), but not in excess of any
cumulative impairment loss previously recognised.

See Note 2 - Property, Plant and Equipment (including
ROU Assets) and Capital Work-in-Progress for further
details.

See Note 15 - Non-Current Assets Held For Sale for further
details.
I.

Impairment of Non-Current Assets
At the end of each reporting period, the Company reviews
the carrying amounts of its tangible, intangible and othernon-current assets to determine whether there is any
indication that those assets have suffered an impairment
loss. If any such indication exists, the recoverable amountof the asset/cash generating unit is estimated in orderto determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costto sell and Value in use. Where it is not possible toestimate the recoverable amount of an individual asset,
the Company estimates the recoverable amount of the
cash-generating unit to which the asset belongs. Wherea reasonable and consistent basis of allocation can be
identified, corporate assets are also allocated to individual
cash-generating units, or otherwise they are allocated to
the group of cash-generating units for which a reasonable
and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value lesscosts to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to theirpresent value using a pre-tax discount rate that reflects
current market assessments of the time value of money
and the risks specific to the asset for which the estimatesof future cash flows have not been adjusted.

See Note 3 - Investment Properties for further details.
See Note 4B - Intangible Assets and Intangible Assets
under Development for further details.
See Note 35 - Impairment Loss on Non-Current Assets forfurther details.
J.

Foreign currency Transactions
In preparing the financial statements, transactions incurrencies other than the Company’s functional currency(foreign currencies) are recognised at the rates of
exchange prevailing at the dates of the transactions.
At the end of each reporting period, monetary items
denominated in foreign currencies are translated at therates prevailing at that date. Non-monetary items aremeasured at historical cost.
Exchange differences on monetary items are recognisedin the statement of profit and loss in the period in which
they arise, except for:•eligible exchange differences on foreign currency
borrowings relating to qualifying assets underconstruction are included in the cost of those assets
when they are regarded as an adjustment to interest;
andIntegrated Annual Report 2021-22

471

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements•

exchange differences on transactions entered into
in order to hedge certain foreign currency risks (seebelow for hedge accounting policies).

Changes in the fair value of non-monetary equity
instruments irrevocably classified as fair value throughother comprehensive income includes gain or loss on
account of exchange differences.
The fair value of financial liabilities and financial assets
denominated in a foreign currency are translated at the
spot rate at the end of the reporting period. The foreignexchange component forms part of its fair value gain or
loss. Non-monetary items that are measured at fair value
in a foreign currency are translated using the exchange
rates at the date when the fair value was measured.
See Note 33 – Finance Cost for further details.
See Note 37 – Other Expenses for further details.
K.

Provisions and contingencies
Provisions are recognized when there is a present
obligation (legal or constructive) as a result of a past
event and it is probable (“more likely than not”) that it isrequired to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.
The amount recognised as a provision is the best
estimate of the consideration required to settle thepresent obligation at the balance sheet date, taking
into account the risks and uncertainties surrounding
the obligation. Where a provision is measured using theestimated cash flows to settle the present obligation,
its carrying amount is the present value of those cash
flows. The discount rate used is a pre-tax rate thatreflects current market assessments of the time valueof money in that jurisdiction and the risks specific to theliability.
Onerous contracts
Present obligations arising under onerous contracts arerecognised and measured as provisions. An onerous
contract is considered to exist when a contract underwhich the unavoidable costs of meeting the obligations
exceed the economic benefits expected to be received
from it.
Restructurings
A restructuring provision is recognised when there is a472

HINDALCO INDUSTRIES LIMITED

Material contingent liabilities are disclosed in thefinancial statements unless the possibility of an outflow
of economic resources is remote. Contingent assets are
not recognized in the financial statements unless it isvirtually certain that the future event will confirm theasset’s existence and the asset will be realised.

detailed formal plan for the restructuring which has raised
a valid expectation in those affected that the Company
will carry out the restructuring by stating to implement theplan or announcing its main feature to those affected byit. The measurement of a restructuring provision includes
only the direct expenditures arising from the restructuring
which are both necessarily entailed by the restructuring
and not associated with the ongoing activities of theCompany.

Enterprise Social Commitment
Enterprise Social Commitment is the amount to be spent
on social and economic development of the surroundingarea over a period of time where any new project is set
up. Such obligation arises out of conditions mentioned
in the Environment Clearance Certificate given by theGovernment for new projects and are generally defined
as a percentage of total project cost. Present value ofsuch future cash flows discounted at appropriate andapplicable discount rates are capitalised against the
obligation created. Actual cash flows that happen over theperiod are adjusted against the obligation. The obligation
is increased over a period of time and the differential isrecognized in the Statement of Profit and Loss as Interest
Expense.

Restoration (including Mine closure), rehabilitationand decommissioning
Close-down and restoration costs are provided for in theaccounting period when the obligation arising from therelated disturbance occurs, based on the net present valueof the estimated future costs of restoration to be incurred
during the life of the mining operation and post closure.
Provisions for close-down and restoration costs do notinclude any additional obligations which are expected toarise from future disturbance.
The initial close-down and restoration provision iscapitalised. Subsequent movements in the close-down
and restoration provisions for ongoing operations,
including those resulting from new disturbance related to
expansions or other activities qualifying for capitalisation,
updated cost estimates, changes to the estimated livesof operations, changes to the timing of closure activities
and revisions to discount rates are also capitalised within“Property, plant and equipment”.

Litigation
Provision relating to legal, tax and other matters is
recognised once it has been established that the Company
has a present obligation based on consideration of theinformation which becomes available up to the date on
which the Company’s financial statements are approved
and may in some cases entail seeking expert advice inmaking the determination on whether there is a present
obligation.
Contingent Liabilities and Assets
A contingent liability is a possible obligation thatarises from a past event, with the resolution of thecontingency dependent on uncertain future events,
or a present obligation where no outflow is probable.

L.

Lease Liability
The lease payments that are not paid at the commencement
date are discounted using the interest rate implicit in thelease. If that rate cannot be readily determined, which is
generally the case for leases in the Company, the lessee’s
incremental borrowing rate is used, being the rate thatthe individual lessee would have to pay to borrow thefunds necessary to obtain an asset of similar value to theright-of-use asset in a similar economic environment withsimilar terms, security and conditions.
To determine the incremental borrowing rate, theCompany uses a build-up approach that starts with arisk-free interest rate adjusted for credit risk and makes
adjustments specific to the lease, e.g. term, security etc.
Lease payments included in the measurement of the leaseliability comprise:•

Fixed lease payments (including in-substance fixed
payments) payable during the lease term and underreasonably certain extension options, less any lease
incentives;•

Variable lease payments that depend on an index or
rate, initially measured using the index or rate at thecommencement date;•

The amount expected to be payable by the lessee
under residual value guarantees;

See Note 22 – Provisions for further details.

•

See Note 44 – Contingent Liabilities and Commitments
for further details.

The exercise price of purchase options, if the lessee
is reasonably certain to exercise the options; and•Payments of penalties for terminating the lease, if
the lease term reflects the exercise of an option toterminate the lease.

Renewable Power Obligation
Provision towards Renewable Power obligation is createdto the extent any obligated unit is unable to source
renewable energy as a replacement to carbon energy as
per requirement of the applicable regulation during thereporting period and is carried in books till the obligation
is discharged by purchasing Renewable Energy Certificate
from any of the authorised exchanges.

Environmental liabilities
Environment liabilities are recognised when the Company
becomes obliged, legally or constructively, to rectify
environmental damage or perform remediation work.

Contingent and variable rentals are recognized as
expense in the periods in which they are incurred.

LeasesCompany as lessee
The Company assesses whether a contract is or contains
a lease, at inception of the contract. The Company
recognises a right-of-use asset and a corresponding leaseliability with respect to all lease arrangements in which it is
the lessee, except for short-term leases (defined as leases
with a lease term of 12 months or less) and leases of low
value assets. For these leases, the Company recognises
the lease payments as an operating expense on a straightline basis over the lease term, unless another systematic
basis is more representative of the time pattern in which
economic benefits from the leased assets are consumed.

The lease liability is presented as a separate line in theStandalone Balance Sheet.
The lease liability is subsequently measured by increasing
the carrying amount to reflect interest on the lease liability(using the effective interest method) and by reducing thecarrying amount to reflect the lease payments made.
The Company remeasures the lease liability (and makesa corresponding adjustment to the related right-of-use
asset) to reflect any re-assessment, lease modification,or revised in-substance fixed lease payments.

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forming part of the Standalone Financial Statements
the lease transfer substantially all the risks and rewardsof ownership to the lessee, the contract is classified as
finance lease. All other leases are classified as operatingleases.

Right of Use (ROU) Assets
The ROU assets comprise the initial measurement of thecorresponding lease liability, lease payments made at or
before the commencement day and any initial direct costs.
They are subsequently measured at cost less accumulated
depreciation and impairment losses.

When the Company is an intermediate lessor, it accounts
for the head lease and sublease as two separate contracts.
The sublease is classified as finance or operating lease byreference to the right-of-use asset arising from the headlease.

Whenever the Company incurs an obligation for costs todismantle and remove a leased asset, restore the site on
which it is located or restore the underlying asset to thecondition required by the terms and conditions of thelease, a provision is recognised and measured under Ind
AS 37 Provisions, Contingent Liabilities and Contingent
Assets. The costs are included in the related right-of-use
asset.

Rental income from operating leases is recognised ona straight-line basis over the term of the relevant lease.
Initial direct costs incurred in negotiating and arranging
an operating lease are added to the carrying amount of
the leased asset and recognised on a straight-line basis
over the lease term.

For the certain class of assets, the Company allocateslease or non-lease components on the basis of theirrelative stand-alone prices while assessing a contract at
its inception or on reassessment.

Amounts due from lessees under finance leases arerecognised as receivables at the amount of the Company’s
net investment in the leases. Finance lease income isallocated to accounting periods so as to reflect a constantperiodic rate of return on the Company’s net investment
outstanding in respect of the leases.

The Company applies Ind AS 36- Impairment of Assets todetermine whether a right-of-use asset is impaired andaccounts for any identified impairment loss as per its
accounting policy on ‘property, plant and equipment’.

When a contract includes lease and non-lease components,
the Company applies Ind AS 115, Revenue from Contracts
with Customers to allocate the consideration under thecontract to each component.

Extension and termination options are included in many ofthe leases. In determining the lease term the management
considers all facts and circumstances that create an
economic incentive to exercise an extension option, or
not exercise a termination option.
ROU assets are depreciated over the shorter period of
the lease term and useful life of the underlying asset. If
the Company is reasonably certain to exercise a purchase
option, the right-of-use asset is depreciated over theunderlying asset’s useful life. The depreciation starts atthe commencement date of the lease.
Deferred tax on the deductible temporary difference
and taxable temporary differences in respect of carrying
value of right of use assets and lease liability and theirrespective tax bases are recognised separately.
The Company as Lessor
The Company enters into lease arrangements as a lessor
with respect to some of its investment properties andbuildings.
Leases for which the Company is a lessor are classified
as finance or operating leases. Whenever the terms of474

HINDALCO INDUSTRIES LIMITED

See Note 2B – Right of Use Assets for further details.
See Note 2C – Lease liabilities recognised against Rightof Use assets for further details.
See Note 37 – Other Expenses for further details.
M.

Inventories
Inventories are stated at the lower of cost and net
realizable value. The cost of finished goods and workin progress includes raw materials, direct labour, otherdirect costs and related production overheads. Costs ofinventories include the transfer from equity any gains/losses on qualifying cash flow hedges for purchases ofraw materials.
Cost of raw material and Traded Goods comprises of Costof purchases and also include all other costs incurred inbringing the inventories to their present location andcondition and are net of rebates and discounts.

The Inventories are measured at Fair Value only in thosecases where the Inventories are designated into a fairvalue hedge relationship.

fair value. The fair value is measured at forward rate andsubsequent changes are recognised as Other Operating
Revenue.

Cost is determined using the weighted average cost basis.
However, the same cost basis is applied to all inventories
of a particular class. Inventories of stores and spare parts
are valued at weighted average cost basis after providing
for cost of obsolescence and other anticipated losses,
wherever considered necessary.

See Note 12 – Trade Receivables for further detailsO.

Net realizable value represents the estimated selling pricefor inventories less all estimated costs of completion andcosts necessary to make the sale.

They are recognised initially at their transactional
value which represents the fair value and subsequently
measured at amortised cost using the effective interest
method wherever applicable.

Materials and other supplies held for use in the productionof inventories (finished goods, work-in-progress) are notwritten down below the cost if the finished products inwhich they will be used are expected to sell at or above
the cost.
See Note 11 – Inventories for further details.
N.

Trade receivables
Trade receivables are amounts due from customers forgoods sold or services performed in the ordinary courseof business. If the receivable is expected to be collected
within a period of 12 months or less from the reporting
date (or in the normal operating cycle of the business, if
longer), they are classified as Current Assets otherwise
as Non-Current Assets.
Trade receivables are measured at their transaction priceon initial recognition, unless it contains a significant
financing component or pricing adjustments embeddedin the contract in which cases, it is recognised at fair value.
Trade receivables are held with the objective of collecting
the contractual cash flows and therefore are subsequently
measured at amortised cost less loss allowance.
Trade receivables which are subject to a factoringarrangement without recourse are de-recognized fromthe Balance Sheet in its entirety. Under this arrangement,
the Company transfers relevant receivables to the factor
in exchange for cash and does not retain late payment
and credit risk.
Trade receivables which arise from contracts where thesale price is provisional and revenue model have thecharacter of a commodity derivative are measured at

Trade and other payables
These amounts represent liabilities for goods and services
provided to the Company and are unpaid at the end of thefinancial year. The amounts are unsecured and usually paid
within time limits as contracted. Trade and other payables
are presented as current liabilities unless the payment is
not due within 12 months after the reporting period.

See Note 20 – Trade Payables for further details.
P.

Financial Instruments
All financial assets are recognised on trade date when thepurchase of a financial asset is under a contract whoseterm requires delivery of the financial asset within thetimeframe established by the market concerned. Financial
assets are initially measured at fair value, plus transaction
costs, except for those financial assets which are classified
as at fair value through profit or loss (FVTPL) at inception.
All recognised financial assets are subsequently measured
in their entirety at either amortised cost or fair value.
Classification of financial assets
Financial assets are classified as ‘equity instrument’ if it
is a non-derivative and meets the definition of ‘equity’for the issuer. All other non-derivative financial assets are‘debt instruments’.
Financial assets at amortised cost and the effective
interest method
Debt instruments are measured at amortised cost if bothof the following conditions are met:•

the asset is held within a business model whose
objective is to hold assets in order to collectcontractual cash flows; and•the contractual terms of the instrument give riseon specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.

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forming part of the Standalone Financial Statements
Debt instruments meeting these criteria are subsequently
measured at amortised cost using the effective interest
method less any impairment, with interest recognised onan effective yield basis in investment income.

At initial recognition, an irrevocable election is made(on an instrument-by-instrument basis) to designate
investments in equity instruments (other than held for
trading purpose) at FVTOCI.

The effective interest method is a method of
calculating the amortised cost of a debt instrument
and of allocating interest over the relevant period.
The effective interest rate is the rate that exactly
discounts the estimated future cash receipts (including
all fees or and points paid or received that form an
integral part of the effective interest rate, transaction
costs and other premiums or discounts) through the
expected life of the debt instrument, or (where appropriate)a shorter period, to the net carrying amount on initialrecognition.

A financial asset is held for trading if:

The Company may irrevocably elect at initial recognition
to classify a debt instrument that meets the amortised costcriteria above as at FVTPL if that designation eliminatesor significantly reduces an accounting mismatch had thefinancial asset been measured at amortised cost.
Financial assets at fair value through othercomprehensive income (FVTOCI)
Debt instruments are measured at FVTOCI if both of thefollowing conditions are met:•

the asset is held within a business model whose
objective is to hold assets in order to collectcontractual cash flows and selling assets; and•the contractual terms of the instrument give riseon specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding

Debt instruments meeting these criteria are subsequently
measured at fair value with any gains or losses arisingon re-measurement recognised in other comprehensive
income, except for impairment gains or losses, interest
income and foreign exchange gains or losses which arerecognised in profit and loss. Interest calculated using theeffective interest method is recognised in the statementof profit and loss in investment income. When the debt
instrument is derecognised the cumulative gain or loss
previously recognised in other comprehensive income isreclassified to the statement of profit and loss account as
a reclassification adjustment.
476

HINDALCO INDUSTRIES LIMITED•

it has been acquired principally for the purpose of
selling it in the near term; or•on initial recognition it is part of a portfolio ofidentified financial instruments that the Company
manages together and has evidence of a recent
actual pattern of short-term profit-taking; or•

it is a derivative that is not designated in an effective
hedge relationship as a hedging instrument or not afinancial guarantee.

Investments in equity instruments at FVTOCI are
subsequently measured at fair value with gains and losses
arising from changes in fair value recognised in othercomprehensive income and accumulated in the ‘Gain/(Loss) on Equity Instruments FVTOCI’. Where the asset
is disposed of, the cumulative gain or loss previously
accumulated in the ‘Gain/ (Loss) on Equity Instruments
FVTOCI’ is directly reclassified to retained earnings.

as at FVTPL, unless the Company designates aninvestment that is not held for trading at FVTOCI at initialrecognition.
Financial assets at FVTPL are subsequently measured
at fair value, with any gains or losses arising on remeasurement recognised in statement of profit and loss.
Interest income from these financial assets is included inother income.
Dividend income on investments in equity instruments
at FVTPL is recognised in the statement of profit andloss in investment income when the Company’s right toreceive the dividends is established, it is probable thatthe economic benefits associated with the dividend willflow to the entity; and the amount of the dividend can bemeasured reliably.
Impairment of financial assets
On initial recognition of the financial assets, a loss
allowance for expected credit loss is recognised for debt
instruments carried at amortised cost and FVTOCI. For
debt instruments that are measured at FVTOCI, the loss
allowance is recognised in the statement of profit andloss.
Expected credit losses of a financial instrument ismeasured in a way that reflects:

For equity instruments measured at fair value throughother comprehensive income, no impairments arerecognised in the statement of profit and loss.

•

an unbiased and probability-weighted amount thatis determined by evaluating a range of possible
outcomes;

Dividends on these investments in equity instruments
are recognised in the statement of profit and loss ininvestment income when the Company’s right to receive
the dividends is established, it is probable that theeconomic benefits associated with the dividend willflow to the entity; and the amount of the dividend can bemeasured reliably.

•

the time value of money; and•reasonable and supportable information thatis available without undue cost or effort at thereporting date about past events, current conditions
and forecasts of future economic conditions.

Financial assets at Fair Value through Profit and Loss
(FVTPL)
Financial assets that do not meet the criteria ofclassifying as amortised cost or fair value through othercomprehensive income described above, or that meet thecriteria but the entity has chosen to designate as at FVTPL
at initial recognition, are measured at FVTPL.
Investments in equity instruments are classified

At each reporting date, the Company assesses whether
the credit risk on a financial instrument has increased
significantly since initial recognition.
When making the assessment, the Company compares therisk of a default occurring on the financial instrument as at
the reporting date with the risk of a default occurring on
the financial instrument as at the date of initial recognitionand consider reasonable and supportable information,that is available without undue cost or effort, that isindicative of significant increases in credit risk since initialrecognition.
If, at the reporting date, the credit risk on a financial
instrument has not increased significantly since initialrecognition, the Company measures the loss allowance forthat financial instrument at an amount equal to 12-month
expected credit losses. If, the credit risk on that financial
instrument has increased significantly since initialrecognition, the Company measures the loss allowance fora financial instrument at an amount equal to the lifetime
expected credit losses.
For Trade Receivables and Contract Assets, the Company
applies the simplified approach required by Ind AS 109,
which requires expected life time losses to be recognizedfrom initial recognition of the receivables.
The amount of expected credit losses (or reversal) thatis required to adjust the loss allowance at the reporting
date is recognised as an impairment gain or loss in thestatement of profit and loss.
De-recognition of financial assets
The Company derecognises a financial asset on trade date
only when the contractual rights to the cash flows from theasset expire, or when it transfers the financial asset andsubstantially all the risks and rewards of ownership of theasset to another entity or when it retains contractual rights
to retain contractual cash flows from financial assets,
but assumes a contractual obligation to pay the cash
flows to one or more recipient. If the Company neithertransfers nor retains substantially all the risks and rewardsof ownership and continues to control the transferredasset, the Company recognises its retained interest in
the asset and an associated liability for amounts it may
have to pay. If the Company retains substantially all therisks and rewards of ownership of a transferred financial
asset, the Company continues to recognise the financial
asset and also recognises a collateralised borrowing forthe proceeds received.
On de-recognition of a financial asset other than in its
entirety (e.g. when the Company retains an option to
repurchase part of a transferred asset), the Company
allocates the previous carrying amount of the financial
asset between the part it continues to recognise undercontinuing involvement, and the part it no longer
recognises on the basis of the relative fair values of thoseparts on the date of the transfer. The difference between

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Notes

forming part of the Standalone Financial Statements

the carrying amount allocated to the part that is no longer
recognised and the sum of the consideration received forthe part no longer recognised and any cumulative gainor loss allocated to it that had been recognised in othercomprehensive income is recognised in the statementof profit and loss. Cumulative gain or loss that had beenrecognised in other comprehensive income is allocatedbetween the part that continues to be recognised andthe part that is no longer recognised on the basis of therelative fair values of those parts.
Financial liabilities and equity instruments issued by
the Company
Classification as debt or equity
Debt and equity instruments are classified as either
financial liabilities or as equity in accordance with thesubstance of the contractual arrangement.
Equity instruments
An equity instrument is any contract that evidences aresidual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by theCompany are recognised at the proceeds received, netof direct issue costs.
Compound instruments
The component parts of compound instruments(convertible instruments) issued by the Company areclassified separately as financial liabilities and equity
in accordance with the substance of the contractual
arrangement. At the date of issue, the fair value of theliability component is estimated using the prevailingmarket interest rate for a similar non-convertible
instrument. This amount is recorded as a liability on anamortised cost basis using the effective interest method
until extinguished upon conversion or at the instrument’s
maturity date. The equity component is determined bydeducting the amount of the liability component fromthe fair value of the compound instrument as a whole.
This is recognised and included in equity, net of income
tax effects, and is not subsequently re-measured.
Financial guarantee contract liabilities
Financial guarantee contract liabilities are initiallymeasured at their fair values and, if not designated as at
FVTPL, are subsequently measured at the higher of:•478

the amount of loss allowance is determined by using
expected credit loss model as per Ind AS 109; andHINDALCO INDUSTRIES LIMITED•

the amount initially recognised less, whereappropriate, cumulative amount of income recognisedin accordance with the revenue recognition policies.

Financial liabilities
Financial liabilities are classified as either financial
liabilities ‘at FVTPL’ or ‘other financial liabilities’.
Financial liabilities at FVTPL
Financial liabilities are classified as at FVTPL when
the financial liability is either held for trading or it isdesignated as at FVTPL.
A financial liability is classified as held for trading if:•

it has been acquired or incurred principally for the
purpose of repurchasing it in the near term; or•on initial recognition it is part of a portfolio ofidentified financial instruments that the Company
manages together and for which there is evidenceof a recent actual pattern of short-term profit-taking;or•

it is a derivative that is not designated and effective
as a hedging instrument.

A financial liability other than a financial liability held for
trading may also be designated as at FVTPL upon initialrecognition if:•

such designation eliminates or significantly reduces
a measurement or recognition inconsistency thatwould otherwise arise; or•the financial liability forms part of a group offinancial assets or financial liabilities or both, which
is managed and its performance is evaluated on afair value basis, in accordance with the Company’s
documented risk management or investment
strategy, and information about the Company isprovided internally on that basis; or•it forms part of a contract containing one or more
embedded derivatives, and Ind-AS 109 Financial
Instruments permits the entire combined contract
to be designated as at FVTPL.

Financial liabilities at FVTPL are stated at fair value, withany gains or losses arising on re-measurement recognisedin the statement of profit and loss, except for the amountof change in the fair value of the financial liability that is

attributable to changes in the credit risk of that liability
which is recognised in other comprehensive income.

See Note 46 – Offsetting Financial Liabilities and Financial
Assets for further details.

The net gain or loss recognised in the statement of profit
and loss incorporates any interest paid on the financial
liability.

See Note 47 – Financial Instruments for further details.
See Note 48 – Financial Risk Management for further
details.

Other financial liabilities
Other financial liabilities, including borrowings, areinitially measured at fair value, net of transaction costs.
Other financial liabilities are subsequently measured atamortised cost using the effective interest method, withinterest expense recognised on an effective yield basis.

See Note 49 – Derivative Financial Instruments for further
details.
Q.

The effective interest method is a method of calculating
the amortised cost of a financial liability and of allocatinginterest expense over the relevant period. The effective
interest rate is the rate that exactly discounts estimatedfuture cash payments through the expected life of thefinancial liability, or (where appropriate) a shorter period,to the net carrying amount on initial recognition.
Offsetting financial instruments
Financial assets and liabilities are offset and the net
amount is reported in the balance sheet when there is alegally enforceable right to offset the recognised amounts
and there is an intention to settle on a net basis or realise
the asset and settle the liability simultaneously. The legally
enforceable right must not be contingent on future eventsand must be enforceable in the normal course of businessand in the event of default, insolvency or bankruptcy of
the Company or the counterparty.
See Note 7A and 7B – Other Investments for further
details.
See Note 8 – Loans for further details.
See Note 9A and 9B – Other Financial assets for further
details.
See Note 14 – Bank Balance other than Cash and Cash
Equivalents for further details.
See Note 18A and 18B – Borrowings for further details.
See Note 27 – Other Income for further details.
See Note 36 – Impairment Loss/ (Reversal) on Financial
Assets (Net) for further details.

Derivatives and hedge accounting
Derivatives are initially recognised at fair value on the datea derivative contract is entered into and are subsequently
re-measured at their fair value at the end of each reporting
date. The method of recognising the resulting gain orloss depends on whether the derivative is designated asa hedging instrument, and if so, the nature of the item
being hedged.
The Company has a policy to designate certain derivatives
as either:(a)hedges of the fair value of recognised assets or liabilities
or a firm commitment (fair value hedge);(b)hedges of a particular risk associated with the cash flowof recognised assets or liabilities or a highly probable
forecast transaction (cash flow hedge); or
The Company documents at the inception of thetransaction the relationship between hedging instruments
and hedged items, as well as its risk management
objectives and strategy for undertaking various hedging
transactions. The Company also documents the natureof the risk being hedged and how the Company willassess whether the hedging relationship meets the hedge
effectiveness requirements (including its analysis of thesources of hedge ineffectiveness and how it determines
the hedge ratio).
Change in Fair value of derivatives that are not designatedin any hedge relationship as mentioned above areaccounted through the Statement of Profit and Loss ateach reporting date.
The Company also identifies embedded derivatives incertain transactions. These derivatives are generally
segregated from the host transactions and accounted
for separately. These derivatives are designated into a

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Notes

forming part of the Standalone Financial Statements
hedge relationship if they meet hedge accounting criteria.
Change in Fair Value of such embedded derivatives areaccounted in Other Comprehensive Income if they aredesignated in a cash flow hedge relationship. Fair Valuechange of all other embedded derivatives including thosethat are not designated in any hedge relationship areaccounted through the Statement of Profit and Loss.

measurement of the cost of the non-financial asset or
non-financial liability as a basis adjustment.
If the hedge ratio for risk management purposes in
no longer optimal but the risk management objective
remains unchanged and the hedge continues to qualify
for hedge accounting, the hedge relationship will berebalanced by adjusting either the volume of the hedging
instrument or the volume of the hedged item so that thehedge ratio aligns with the ratio used for risk management
purposes. Any hedge ineffectiveness is calculated andaccounted for in the statement of profit and loss at thetime of the hedge relationship rebalancing.

The full fair value of a hedging derivative is classified
as a non-current asset or liability when the residual
maturity of the derivative is more than 12 months and as
a current asset or liability when the residual maturity ofthe derivative is less than 12 months.

Hedge accounting is discontinued when the hedging
instrument expires or is sold, terminated, or exercised, orwhen it no longer qualifies for hedge accounting. Any gainor loss recognised in other comprehensive income andaccumulated in equity at that time remains in equity andis recognised when the forecast transaction is ultimately
recognised in the statement of profit and loss. Whena forecast transaction is no longer expected to occur,
the gain or loss accumulated in equity is recognised
immediately in the statement of profit and loss.

Fair value hedge
Changes in the fair value of derivatives that are designatedand qualify as fair value hedges are recorded in thestatement of profit and loss, together with any changes
in the fair value of the hedged item that are attributable
to the hedged risk.
Hedge accounting is discontinued when the hedging
instrument expires or is sold, terminated, or exercised,or when it no longer qualifies for hedge accounting.
The fair value adjustment to the carrying amount of thehedged item arising from the hedged risk is amortised tothe statement of profit and loss from that date except for
inventory that is charged to statement of profit and loss
on sale of goods.

See Note 49 – Derivatives Financial Instruments forfurther details.
R.

Cash flow hedges
The effective portion of changes in the fair value ofderivatives that are designated and qualify as cash flow
hedges is recognised in other comprehensive income andaccumulated under the heading cash flow hedging reserve
within equity. The gain or loss relating to the ineffective
portion is recognised immediately in the statement of
profit and loss, and is included in the ‘(Gain) / Loss in Fair
Value of Derivatives’ line item.
Amounts previously recognised in other comprehensive
income and accumulated in equity are reclassified tothe statement of profit and loss in the periods when thehedged item affects the statement of profit and loss, inthe same line as the recognised hedged item. However,when the hedged forecast transaction results in therecognition of a non-financial asset or a non-financial
liability, the gains and losses previously recognised inother comprehensive income and accumulated in equity
are transferred from equity and included in the initial
480

HINDALCO INDUSTRIES LIMITED

intended use or sale. The Company considers a periodof twelve months or more as a substantial period oftime. Qualifying assets are assets that necessarily take a
substantial period of time to get ready for their intended
use or sale.

Cash and cash equivalents
Cash and cash equivalents comprise of cash at bank andin hand, short-term deposits and short term highly liquid
investments with an original maturity of three months orless that are readily convertible to known amounts of cash
and are subject to insignificant risk of changes in value
For the purposes of the Cash Flow Statement, cash
and cash equivalents is as defined above, net ofoutstanding bank overdrafts which are integral partof Cash management activities. In the balance sheet,bank overdrafts are shown within borrowings in current
liabilities.
See Note 13 – Cash and Cash Equivalents for further
details.

S.

Borrowing cost
General and specific borrowing costs directly attributable
to the acquisition, construction or production of qualifying
assets are added to the cost of those assets, until suchtime as the assets are substantially ready for their

Grants related to income are presented under ‘Other
Income’ or ‘Other Operating Revenue’ in the statementof profit and loss depending upon the nature of theunderlying grant, except for grants received in the formof rebate or exemptions related to expenditures, which
are deducted in reporting the related expense.

Transaction costs in respect of long-term borrowings
are amortised over the tenor of respective loans using
effective interest method. All other borrowing costs are
expensed in the period in which they are incurred.

The benefit of a government loan at a below-market rateof interest is treated as a government grant, measured
as the difference between proceeds received and the fairvalue of the loan based on prevailing market interest rates.

Investment income earned on the temporary investmentof specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs
eligible for capitalization.
See Note 2 – Property, Plant and Equipment (including
ROU Assets) and Capital Work-in-Progress for further
details.
See Note 4B - Intangible Assets and Intangible Assets
under Development for further details.
See Note 33 – Finance Costs for further details.
T.

Accounting for government grants
Government grants are recognized when there isreasonable assurance that we will comply with theconditions attached to them and that the grants will bereceived.
Government grants are recognised in the statement of
profit and loss on a systematic basis over the periods inwhich the Company recognises as expenses the related
costs for which the grants are intended to compensate.
Government grants whose primary condition is that
the Company should purchase, construct or otherwise
acquire non-current assets are recognized in the balance
sheet by setting up the grant as deferred income and its
amortization is recognized in ‘Other Income’ on straightline basis over expected useful lives of related assets.
Other government grants (grants related to income)are recognized as income over the periods necessary tomatch them with the costs for which they are intended tocompensate, on a systematic basis. Government grantsthat are receivable as compensation for expenses orlosses already incurred or for the purpose of providing
immediate financial support with no future related costs
are recognized in the statement of profit and loss in the
period in which they become receivable.

See Note 26 – Revenue from Operations for further
details.
See Note 27 – Other Income for further details.
U.

Employee Benefits
Retirement benefit and termination benefits
A defined contribution plan is a pension plan underwhich the Company pays fixed contributions into aseparate entity. The Company has no legal or constructive
obligations to pay further contributions if the fund does
not hold sufficient assets to pay all employees the benefits
relating to employee service in the current and priorperiods. Payments to defined contribution retirement
benefit plans are recognised as an expense whenemployees have rendered service entitling them to thecontributions.
For defined benefit retirement and medical plans, the costof providing benefits is determined using the projected
unit credit method, with actuarial valuations being
carried out at the end of each annual reporting period.
The present value of the defined benefit obligation isdetermined by discounting the estimated future cash
outflows using market yields of government bonds having
terms approximating to the terms of related obligation.
Re-measurement, comprising of actuarial gains andlosses, the effect of the changes to the asset ceiling (ifapplicable) and the return on plan assets (excludinginterest), is reflected in the balance sheet with a charge or
credit recognised in other comprehensive income in the
period in which they occur. Re-measurement recognisedin other comprehensive income is reflected immediately
in retained earnings and will not be reclassified tothe statement of profit and loss. Past service cost isrecognised in the statement of profit and loss in the
period of a plan amendment. Net interest is calculated byIntegrated Annual Report 2021-22481

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Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
applying the discount rate at the beginning of the period
to the net defined benefit liability or asset. Defined benefit
costs are categorised as follows:•

service cost (including current service cost, past
service cost, as well as gains and losses on
curtailments and settlements);•

net interest expense or income; and•re-measurements

The Company presents the first two components ofdefined benefit costs in the statement of profit and loss
in the line item employee benefits expense. Curtailment
gains and losses are accounted for as past service costs.
The retirement benefit obligation recognised in thebalance sheet represents the actual deficit or surplus in the
Company’s defined benefit plans. Any surplus resulting
from this calculation is limited to the present value of any
economic benefits available in the form of refunds fromthe plans or reductions in future contributions to the plans.
A liability for a termination benefit is recognised at
the earlier of when the entity can no longer withdraw
the offer of the termination benefit or when the entity
recognises any related restructuring costs which involves
the payment of terminations benefits.
In the case of an offer made to encourage voluntary
redundancy, the termination benefits are measured basedon the number of employees expected to accept the offer.
Benefits falling due more than 12 months after the end of
the reporting period are discounted to their present value.
Short-term and other long-term employee benefits
A liability is recognised for benefits accruing to employees
in respect of wages and salaries in the period the related
service is rendered at the undiscounted amount of thebenefits expected to be paid in exchange for that service.
Liabilities recognised in respect of short-term employee
benefits are measured at the undiscounted amount of thebenefits expected to be paid in exchange for the related
service.
Liabilities recognised in respect of other long-term
employee benefits such as annual leave and sick leave aremeasured at the present value of the estimated future cash

482

HINDALCO INDUSTRIES LIMITED

outflows expected to be made by the Company in respectof services provided by employees up to the reporting
date. The expected costs of these benefits are accrued
over the period of employment using the same accounting
methodology as used for defined benefit retirement
plans. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions arecharged or credited to the statement of profit and loss
in the period in which they arise. These obligations arevalued annually by independent qualified actuaries.
See Note 31 – Employee Benefits for further details
V.

Employee Share-based Payments
Equity-settled share-based payments to employees aremeasured at the fair value of the options at the grant date.

the year. Taxable profit differs from ‘profit before tax’ asreported in the statement of profit and loss because of
items of income or expense that are taxable or deductible
in other years and items that are never taxable ordeductible. The current income tax charge is calculated on
the basis of the tax laws enacted or substantively enacted
at the balance sheet date.
Deferred tax
Deferred tax is recognised on differences between the
carrying amounts of assets and liabilities in the balance
sheet and the corresponding tax bases used in thecomputation of taxable profit.
Deferred tax liabilities are generally recognised for all
taxable temporary differences.

The fair value of option at the grant date is expensed over
the respective vesting period in which all of the specified
vesting conditions are to be satisfied with a corresponding
increase in equity as “Employee Stock Options Account”.
In case of forfeiture of unvested option, portion of amountalready expensed is reversed. In a situation where thevested option forfeited or expires unexercised, therelated balance standing to the credit of the “Employee
Stock Options Account” are transferred to the “Retained
Earnings”.

Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that it isprobable that taxable profits will be available against
which those deductible temporary differences can beutilised. Such assets and liabilities are not recognised if
the temporary difference arises from initial recognition of
goodwill or from the initial recognition (other than in abusiness combination) of other assets and liabilities in atransaction that at the time of transaction affects neither
the taxable profit nor the accounting profit.

When the options are exercised, the Company issues newequity shares of the Company of ` 1/- each fully paid-up.
The proceeds received and the related balance standing
to credit of the Employee Stock Options Account, arecredited to share capital (nominal value) and Securities
Premium Account.

The carrying amount of deferred tax assets is reviewed ateach balance sheet date and reduced to the extent that it
is no longer probable that sufficient taxable profits will beavailable to allow all or part of the asset to be recovered.

Share appreciation rights which are cash settled, arerecognised as employee benefit expense over the relevant
service period. The liability is fair valued at each reporting
date and are presented as employee benefit obligationsin the balance sheet.
See Note 42 – Employee Share-based Payments forfurther details
W. Income Taxes
Income tax expense represents the sum of the tax
currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for

Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the period in which theliability is settled or the asset realised, based on tax rates(and tax laws) that have been enacted or substantively
enacted by the balance sheet date. The measurementof deferred tax liabilities and assets reflects the tax
consequences that would follow from the manner in which
the Company expects, at the reporting date, to recover orsettle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there
is a legally enforceable right to set off when they relate
to income taxes levied by the same taxation authority.
Current tax assets and tax liabilities are offset where theCompany has a legally enforceable right to offset andintends either to settle on a net basis, or to realise theasset and settle the liability simultaneously.

Minimum Alternative Tax (MAT) is recognized as an
asset only when and to the extent there is convincing
evidence that the Company will pay normal income tax
during the specified period. In the year in which the MAT
credit becomes eligible to be recognized as an asset, thesaid asset is created by way of credit to the statement of
profit and loss and included in deferred tax assets. The
Company reviews the same at each balance sheet date
and writes down the carrying amount of MAT entitlement
to the extent there is no longer convincing evidence to theeffect that Company will pay normal income tax during
the specified period.
Current and deferred tax for the period
Current and deferred tax are recognised in the statementof profit and loss, except when they relate to items thatare recognised in other comprehensive income or directlyin equity, in which case, the current and deferred tax arealso recognised in other comprehensive income or directlyin equity, respectively. Where current tax or deferred
tax arises from the initial accounting for a businesscombination, the tax effect is included in the accounting
for the business combination.
Management periodically evaluates positions taken intax returns with respect to situations in which applicabletax regulation is subject to interpretation and considers
whether it is probable that the taxation authority will
accept tax position taken by the Company. Uncertain
tax positions are reflected in the overall measurementof the Company’s tax expense and are based on themost likely amount or the expected value arrived at by
the Company which provides a better prediction of theresolution of uncertainty. Uncertain tax positions aremonitored and updated as and when new information
becomes available, typically upon examination or action
by the taxing authorities or through statute expiration andjudicial precedent.
The Company considers when a particular amount payablefor interest and penalties on income taxes is determined
to be within the scope of Ind AS 37, it is presented as partof financing cost or other expenses, respectively unlesswhen there is an overall settlement with tax authority andthe interest and penalties cannot be identified separately
in which case it is determined to be part of income taxes
and accounted under Ind AS 12.
See Note 23 - Income Taxes for further details

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Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
X.

Revenue recognition
The Company derives revenue principally from sale ofhydrate, speciality alumina, aluminium and aluminium
value added products, di-ammonium phosphate, copper,
precious metals (gold and silver) and other materials.

financing is deemed present as the sales are made with acredit term, which is consistent with market practice. The
Company’s obligation to repair or replace faulty products
under the standard warranty terms is recognised as a costwith a corresponding provision.

The Company recognizes revenue when it satisfies a
performance obligation in accordance with the contract
with the customer. This is achieved when control of the
product has been transferred to the customer, whichis generally determined when legal title, physicalpossession, risk of obsolescence, loss and rewards ofownership pass to the customer and the Company has thepresent right to payment, all of which occurs at a point
in time upon shipment or delivery of the product. The
Company considers shipping and handling activities ascosts to fulfil the promise to transfer the related products
and the customer payments for shipping and handlingcosts are recorded as a component of revenue.

For certain customer contracts, final prices are determinedbased on the underlying market index of commodity
prices at a future date, for example prices on the London
Metal Exchange Limited (LME) or London Bullion Markets
Association (LBMA). In such contracts, the Company
records revenue on a provisional basis considering
current market price when control is transferred tothe customer. At the end of each period, prior to final
settlement date, adjustments are made to the provisional
sale price based on movements in the underlying
market index of commodity prices up to the date of final
price determination. Such variable price movement isaccounted as ‘Other Operating Revenue’.

In situations where revenue is recognized on shipmentof goods, shipping and handling services are treatedas a distinct separate performance obligation and theCompany recognises revenue for such services when theperformance obligation is completed.
The Company considers the terms of the contract indetermining the transaction price. The transaction priceis based upon the amount the Company expects to beentitled to in exchange for transferring of promised goods
and services to the customer after deducting incentive
programs, including but not limited to discounts, volume
rebates etc. Transaction price excludes taxes and duties
collected on behalf of the government.
For incentives offered to customers, the Company makes
estimates related to customer performance and sales
volume to determine the total amounts earned and to
be recorded as deductions from “Revenue from contracts
with customers”. In making these estimates, the Company
considers historical results that have a predictive valueof the amount that the Company expects to be entitled
to for the transferred goods and services. If historicalresults have limited predictive value or the Company
has limited experience with similar types of incentives,
the estimate is made in such a manner, which ensuresthat it is highly probable that a significant reversal in theamount of cumulative revenue recognised will not occur.
The actual amounts may differ from these estimates andare accounted for prospectively. No element of significant

484

HINDALCO INDUSTRIES LIMITED

the ability, to fulfil through delivery of a non-financial item,
these are presented as advance from customers and arerecognised as revenue as and when control of respective
commodities is transferred or service is provided to thecustomers under the agreements. The portion of theadvance where either the Company does not have a
unilateral right to defer settlement beyond twelve months
or expects settlement within twelve months from thebalance sheet date is classified as a current liability.
See Note 24 – Contract Liabilities for further details
See Note 26 – Revenue from Operations for further details
Y.

Interest income from a financial asset is recognised when
it is probable that the economic benefits will flow to theCompany and the amount of income can be measured
reliably. Interest income is accrued on a time basis, byreference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly
discounts estimated future cash receipts through the
expected life of the financial asset to that asset’s net
carrying amount on initial recognition.

Revenue from irrevocable bill and hold/ holding certificate
contracts is recognised when it is probable that delivery
will be made, goods have been identified and kept
separately, are ready for delivery in the present condition
and the Company does not have the ability to use theproduct or to direct it to another customer. Under thesearrangements, revenue is recognised once legal title has
passed and control of the asset sold is transferred to thecustomer.
Export incentives and subsidies are recognized when there
is reasonable assurance that the Company will comply
with the conditions and the incentive will be received.
Claim on insurance companies, railway authorities andothers are accounted for on acceptance basis.
Revenue excludes any taxes and duties collected onbehalf of the government.
Contract liability
Contract liability is recognised when a payment forcustomer is already received before a related performanceobligation is satisfied. If a customer pays consideration
before the Company transfers goods or services to thecustomer, a contract liability is recognised when thepayment is received.
As these are contracts that the Company expects, and has

Dividend and Interest Income
Dividend income from investments is recognised when
the shareholder’s right to receive payment has been
established.

See Note 27 – Other Income for further details
Z.

Exceptional items
Exceptional items include income or expense that areconsidered to be part of ordinary activities, however areof such significance and nature that separate disclosure
enables the user of the financial statements to understandthe impact in a more meaningful manner. Exceptional
items are identified by virtue of their size, nature andincidence.
See Note 38 – Exceptional Income/ (Expenses) (Net) for
further details

AA. Business Combination
Business combinations are accounted for using theacquisition method. The consideration transferred ina business combination comprises the fair values of
the assets transferred, liabilities incurred to the former
owners of the acquired business, equity interests issued
by the Company and fair value of any assets or liability

resulting from a contingent consideration arrangement.
Acquisition-related costs are expensed as incurred.
At the acquisition date, the identifiable assets acquired
and liabilities and contingent liabilities assumed in abusiness combination are measured at their acquisition
date fair values. However, certain assets and liabilities
i.e. deferred tax assets or liabilities, assets or liabilities
related to employee benefit arrangements, liabilities
or equity instruments related to share-based payment
arrangements, lease liabilities under Ind AS 116 andassets or disposal groups that are classified as held for
sale, acquired or assumed in a business combination aremeasured as per the applicable Ind-AS.
The excess of the consideration transferred over the fairvalue of the net identifiable assets acquired is recorded
as goodwill.
Any gain on a bargain purchase is recognised in othercomprehensive income and accumulated in equity
as Capital Reserve if there exists clear evidence of
the underlying reasons for classifying the businesscombination as resulting in a bargain purchase, otherwise
the gain is recognised directly in equity as Capital Reserve.
Where settlement of any part of cash consideration isdeferred, the amounts payable in future are discounted totheir present value as at the date of exchange. The discountrate used is entity’s incremental borrowing rate, being therate at which similar borrowing could be obtained froman independent financier under comparable terms andconditions. Any contingent consideration is measured
at fair value at the date of acquisition. If an obligation to
pay contingent consideration that meets the definition ofa financial instrument is classified as equity, then it is not
re-measured subsequently and settlement is accounted
for within equity. Other contingent consideration isre-measured at fair value at each reporting date andchanges in the fair value of contingent consideration arerecognised in profit or loss.
When a business combination is achieved in stages,
any previously held equity interest in the acquiree isre-measured at its acquisition-date fair value and theresulting gain or loss, if any, is recognised in the statementof profit and loss or other comprehensive income, as
appropriate.
Where it is not possible to complete the determination

Integrated Annual Report 2021-22

485

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
of fair values by the end of the reporting period in which
the combination occurs, a provisional assessment of fairvalues is made and any adjustments required to those
provisional values, and the corresponding adjustments togoodwill, are finalised within 12 months of the acquisition
date.
See Note 53 – for further details
1C.

Measurement of fair value
a. Financial instruments
		The estimated fair value of the Company’s financial
instruments is based on market prices and valuation
techniques. Valuations are made with the objective
to include relevant factors that market participants
would consider in setting a price, and to apply
accepted economic and financial methodologies
for the pricing of financial instruments. References
for less active markets are carefully reviewed toestablish relevant and comparable data.
b.

M a r ke t a b le a n d n o n - m a r ke t a b le e q u i t ysecurities		

Fair value for listed shares is based on quoted
market prices as of the reporting date. Fair value forunlisted shares is calculated based on commonly
accepted valuation techniques utilizing significant
unobservable data, primarily cash flow basedmodels.

c.
		

d.
		

486

Derivatives
Fair value of financial derivatives is estimated as
the present value of future cash flows, calculated
by reference to quoted price curves and exchange
rates as of the balance sheet date. Options arevalued using appropriate option pricing models andcredit spreads are applied where deemed to besignificant.
Embedded derivatives
Embedded derivatives that are separated from thehost contract are valued by comparing the forward
curve at contract inception to the forward curve asof the balance sheet date. Changes in the present
value of the cash flows related to the embedded
derivative are recognized in the balance sheet andin the income statement.

HINDALCO INDUSTRIES LIMITED

1D. Critical accounting judgment and key sources of
estimation uncertainty
In preparing the financial statements in conformity
with accounting principles generally accepted inIndia, management is required to make estimates andassumptions that affect reported amounts of assets andliabilities and the disclosure of contingent liabilities as at
the date of the financial statements and the amounts ofrevenue and expenses during the reported period. Actual
results could differ from those estimates. Any revision tosuch estimates is recognised in the period in which thesame is determined.

information. Calculation of value in use is a
discounted cash flow calculation based on continued
use of the assets in its present condition, excluding
potential exploitation of improvement or expansion
potential.
		The following paragraphs explains areas that areconsidered more critical, involving a higher degree of
judgment and complexity.
a.
		

		

Impairment of non-current assets
Ind AS 36 requires that the Company assesses
conditions that could cause an asset or a Cash
Generating Unit (CGU) to become impaired and totest recoverability of potentially impaired assets.
These conditions include changes resulting frommarket and economic environment, including internaland external factors such as the Company’s market
capitalization, significant changes in the Company’splanned use of the assets or a significant adversechange in the expected prices, sales volumes or raw
material cost. The identification of CGUs involves
judgment, including assessment of where active
markets exist, and the level of interdependency of
cash inflows. CGU is usually the individual plant,
unless the asset or asset Company is an integral
part of a value chain where no independent prices
for the intermediate products exist, a Company ofplants is combined and managed to serve a common
market, or where circumstances otherwise indicate
significant interdependencies.
In accordance with Ind-AS 36, certain intangible
assets are reviewed at least annually for impairment.
If a loss in value is indicated, the recoverable amountis estimated as the higher of the CGU’s fair value lesscost to sell, or its value in use. Directly observable
market prices rarely exist for the Company’s assets,
however, fair value may be estimated based onrecent transactions on comparable assets, internal
models used by the Company for transactions
involving the same type of assets or other relevant

b.
		

		

c.
		

d.
		

Determination of the recoverable amount involves
management estimates on highly uncertain matters,such as commodity prices and their impact on markets
and prices for upgraded products, development indemand, inflation, currency rate movements, input
cost prices, operating expenses and tax and legal
environment. The Company uses internal businessplans, quoted market prices and the Company’s
best estimate of commodity prices, currency rates,
discount rates and other relevant information. A
detailed forecast is developed for a period of three
to five years with projections thereafter.
Employee retirement plans
The Company provides both defined benefit employee
retirement plans and defined contribution plans.
Measurement of pension and other superannuation
costs and obligations under such plans require
numerous assumptions and estimates that can havea significant impact on the recognized costs andobligation, such as future salary level, discount rate,
attrition rate and mortality.
The Company provides defined benefit plans
to its employees. The discount rate is basedon Government bond yield. Assumptions forsalary increase in the remaining service period
for active plan participants are based on
expected salary increase in India. Changes inthese assumptions can influence the net asset or
liability for the plan as well as the pension cost,refer note 31.

carrying value of assets and liabilities for financial
reporting purposes and their respective tax basisthat are considered temporary in nature. Valuation ofdeferred tax assets is dependent on management’s
assessment of future recoverability of the deferred
tax benefit. Expected recoverability may result fromexpected taxable income in the future, plannedtransactions or planned tax optimizing measures.
Economic conditions may change and lead to adifferent conclusion regarding recoverability, refer
notes 25. For judgements related to adoption oflower tax rate as per Section 115BBA of the Income
tax Act, refer note 23.
e.
		Extension and termination option in a Lease
Extension and termination options are included inmany of the leases. In determining the lease term, theManagement considers all facts and circumstancesthat create an economic incentive to exercise an
extension option, or not exercise a termination
option. This assessment is reviewed if a significant
event or a significant change in circumstances occurs
which affects this assessment and that is within thecontrol of the Company.

f.

Useful lives of depreciable/ amortisable assets(tangible and intangible)
Management reviews its estimate of the useful livesof depreciable/ amortisable assets at each reporting
date, based on the expected utility of the assets.
Uncertainties in these estimates relate to technicaland economic obsolescence that may change theutility of certain software, IT equipment and otherplant and equipment.

		

g.
		

Recoverability of advances/ receivables
At each balance sheet date, based on discussions
with the respective counter-parties and internal
assessment of their credit worthiness, themanagement assesses the recoverability ofoutstanding receivables and advances. Suchassessment requires significant management
judgement based on financial position of the counterparties, market information and other relevant
factors.

h.
		Fair value measurements
The Company applies valuation techniques todetermine the fair value of financial instruments(where active market quotes are not available)

Environmental liabilities and Asset Retirement
Obligation (ARO)
Estimation of environmental liabilities and ARO
require interpretation of scientific and legal data, in
addition to assumptions about probability and future
costs, refer note 22.
Taxes
The Company calculates income tax expense basedon reported income. Deferred income tax expense
is calculated based on the differences between the

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Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
and non-financial assets. This involves developing
estimates and assumptions consistent with themarket participants to price the instrument. The
Company’s assumptions are based on observabledata as far as possible, otherwise on the best
information available. Estimated fair values may varyfrom the actual prices that would be achieved in anarm’s length transaction at the reporting date, refer
note 47.
i.
		

j)
		

		

488

Contingent assets and liabilities, provisions anduncertain tax positions
There are various legal, direct and indirect tax mattersand other obligations including environmental,
mining, local and state levies, income tax holiday,
availing input tax credits etc., which may impact
the Company. Evaluation of uncertain liabilities
and contingent liabilities and assets arising out ofabove matters require management judgment andassumptions, regarding the probability outflow
or realization of economic resources and thetiming and amount, or range of amounts, that may
ultimately be determined. Such estimates may varyfrom the ultimate outcome as a result of differinginterpretations of laws and facts, or applicationof relevant judicial precedents, refer notes 22, 23
and 44.
Inventory Measurement
Measurement of bulk inventory quantities (such ascoal, bauxite, copper concentrates, etc.) lying at yards
and work in progress of precious metals at smelter
and refinery is material, complex and involves
significant judgement and estimate resulting frommeasuring the surface area, dip measurement ofmaterials in tanks/silos, etc., refer note 11.
The Company performs physical counts of above
inventory on a periodic basis using internal /external experts to perform volumetric surveys andassessments, basis which the estimate of quantity
for these inventories is determined. The variations
noted between book records and physical quantities
of above inventories are evaluated and appropriately
accounted in the books of accounts.

HINDALCO INDUSTRIES LIMITED

1E.
i)

Recent Accounting Pronouncements
New and amended standards adopted by theCompany
The Company has adopted the following amendments
for the first time for their annual reporting period
commencing 1 April 2021:
a)

On March 24, 2021, the Ministry of Corporate Affairs(“MCA”) through a notification, amended Schedule IIIof the Companies Act, 2013. The amendments revise
Division I, II and III of Schedule III and are applicablefrom April 1, 2021. Key amendments relating toDivision II which relate to companies whose financial
statements are required to comply with Companies(Indian Accounting Standards) Rules 2015 are:				Statement of profit and loss:•
Additional disclosures relating to Corporate
Social Responsibility (CSR), undisclosed
income and crypto or virtual currency specified
under the head ‘additional information’ in thenotes forming part of the standalone financial
statements.

		

Refer note 57 (a) for Schedule III reclassification entry.

b)Extension of COVID-19 related concessions –amendments to Ind AS 116

c)

Interest rate benchmark reform – amendments to Ind
AS 109, Financial Instruments, Ind AS 107, Financial
Instruments: Disclosures, Ind AS 104, Insurance
Contracts and Ind AS 116, Leases.

		Balance Sheet:		•
Lease liabilities should be separately disclosed
under the head ‘financial liabilities’, duly
distinguished as current or non-current.
		•Certain additional disclosures in the statementof changes in equity such as changes in equity
share capital due to prior period errors andrestated balances at the beginning of thecurrent reporting period.

		•Specified format for disclosure of shareholdingof promoters.

		•Specified format for ageing schedule oftrade receivables, trade payables, capital
work-in-progress and intangible asset underdevelopment.

		•

If a company has not used funds for the specificpurpose for which it was borrowed from banks
and financial institutions, then disclosure ofdetails of where it has been used.

		•Specific disclosure under ‘additional regulatory
requirement’ such as compliance with approved
schemes of arrangements, compliance withnumber of layers of companies, title deeds
of immovable property not held in name ofcompany, loans and advances to promoters,
directors, key managerial personnel (KMP) andrelated parties, details of benami property held,
certain specified ratios etc.

The amendments listed above did not have any impact
on the amounts recognised in prior periods and are notexpected to significantly affect the current or future
periods.
i)

Amended applicable from next financial year
Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards underCompanies (Indian Accounting Standards) Rules as issued
from time to time. On March 23, 2022, MCA amended theCompanies (Indian Accounting Standards) Amendment
Rules, 2022, as below.
Ind AS16–Property Plant and equipment - The
amendment clarifies that excess of net sale proceed ofitems produced over the cost of testing, if any, shall not
be recognised in the profit or loss but deducted from thedirectly attributable costs considered as part of cost of
an item of property, plant, and equipment. The effective
date for adoption of this amendment is annual periods
beginning on or after April 1, 2022. The Company has
evaluated the amendment and there is no impact on its
financial statements.
Ind AS37 – Provisions, Contingent Liabilities andContingent Assets –The amendment specifies thatthe ‘cost of fulfilling’ a contract comprises the ‘costs
that relate directly to the contract’. Costs that relate
directly to a contract can either be incremental costsof fulfilling that contract (examples would be direct
labour, materials) or an allocation of other costs that
relate directly to fulfilling contracts (an example would
be the allocation of the depreciation charge for an itemof property, plant and equipment used in fulfilling thecontract).
Onerous Contracts (Cost of Fulfilling a Contract) - An entity
shall apply those amendments to contracts for which it
has not yet fulfilled all its obligations at the beginning of
the annual reporting period in which it first applies theamendments. The entity shall not restate comparative
information. Instead, the entity shall recognise thecumulative effect of initially applying the amendments as
an adjustment to the opening balance of retained earnings
or other component of equity, as appropriate, at the dateof initial application.
The effective date for adoption of this amendment
is annual periods beginning on or after April 1,2022,
although early adoption is permitted. The Company has
evaluated the amendment and the impact is not expected
to be material.

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Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
2.

Property, Plant and Equipment (including Right of Use Assets) and Capital Work-in-Progress
Refer Note 1B (D) for accounting policy on Property, Plant and Equipment(` in Crore)
Particulars

ORIGINAL COST

Refer Note 1B (I) for accounting policy on Impairment of Non-Current Assets

As at
April 01,
2020

Refer Note 1B (L) for accounting policy on Leases
Refer Note 1B (S) for accounting policy on Borrowing cost(` in Crore)

As at
31/03/2022

31/03/2021

Summary of Property, Plant and Equipment (including Right of Use Assets) given below:
Property, Plant and Equipment - Cost

50,394

Additions

ACCUMULATED DEPRECIATION

Addition Disposal/
As at
due toAdjust- March 31,
acquisition ments
2021

ACCUMULATED IMPAIRMENTAs at Additions Disposal/
As at
April 01,
Adjust- March 31,
2020
ments
2021

As at
April 01,
2020

NET CARRYINGAMOUNT

Recognised/ Disposal/
As at(Reversal)
Adjust- March 31,
ments
2021

As at
March 31,
2021

As at
March 31,2020

Freehold Land

598

5

-

8

611

8

4

2

14

-

-

1

1

596

590

Buildings

8,036

110

-

32

8,178

1,919

275

16

2,210

59

23

4

86

5,882

6,058

Plant and Machinery

38,526

559

-

(84)

39,001

13,072

1,222

(65)

14,229

638

48

3

689

24,08324,816

Vehicles and Aircraft

440

16

-

(9)

447

220

26

(4)

242

-

-

-

-

205

220

49,291

Railway Wagons

189

-

-

-

189

93

10

-

103

-

-

-

-

86

96

Railway Sidings

489

7

-

-

496

176

28

-

204

17

-

-

17

275

296

Less: Accumulated Depreciation and Impairment

19,46818,056Net Carrying amount of Property, Plant and Equipment (A)30,926

31,235

Furniture and
Fixtures

136

19

-

(3)

152

97

6

(2)

101

1

-

-

1

50

38

1,020

999

Office Equipment

200

24

-

(7)

217

146

19

(7)

158

1

-

-

1

58

53

Less: Accumulated Depreciation and Impairment

187

173

Total

48,614

740

-

(63)

49,291

15,731

1,590

(60)

17,261

716

71

8

795

31,23532,167

Net Carrying amount of Right of Use Assets (B)

833

826

(a)

Property, Plant and Equipment (including Right of Use Assets) (A+B)

31,75932,061

Capital Work-in-Progress (CWIP)

1,573

1,587

Right of Use Assets

A

For the details of assets for which registration/ transfer is pending, refer note 50.

(b) The Company’s share in Jointly owned assets has been grouped together with the relevant class of Property, Plant andEquipment and Capital Work-in-Progress. The proportion of the Original Cost and Carrying amount included in relevant
class of assets are given below:(` in Crore)

Property, Plant and Equipment(` in Crore)

Particulars

ORIGINAL COST
As at Additions
April 01,
2021

Freehold Land
Buildings

Addition
Disposal/
As at
due toAdjust- March 31,
acquisition * ments
2022

ACCUMULATED DEPRECIATIONACCUMULATED IMPAIRMENTAs at Additions Disposal/
As at
April 01,
Adjust- March 31,
2021
ments
2022

As at Recognised/ Disposal/
As at
April 01, (Reversed) Adjust- March 31,
2021
ments
2022

31/03/2022

NET CARRYINGAMOUNT
As atMarch 31,
2022

As at
March 31,2021

31/03/2021

Original Cost

Net Carrying
AmountOriginal Cost

Net Carrying
AmountFreehold Land

52

52

52

52

Buildings

54

40

50

37

611

5

22

-

638

14

4

-

18

1

-

-

1

619

596

Plant and Machinery

6

1

6

2

8,178

176

53

(18)

8,389

2,210

263

(6)

2,467

86

14

-

100

5,822

5,882

Furniture & Fixtures

27

22

14

10

-

-

-

-

Plant and Machinery

39,001

1,022

56

(262)

39,817

14,229

1,213

(187)

15,255

689

62

(5)

746

23,81624,083

Vehicles and Aircraft

Vehicles and Aircraft

447

38

-

(41)

444

242

28

(31)

239

-

-

-

-

205

205

Office Equipment

9

2

9

2

Railway Wagons

189

-

-

-

189

103

10

-

113

-

-

-

-

76

86

Capital Work-in-Progress

101

101

104

104

Railway Sidings

496

10

-

-

506

204

28

-

232

17

-

-

17

257

275

Furniture and
Fixtures

152

24

-

(2)

174

101

9

(2)

108

1

-

-

1

65

50

Office Equipment

217

29

1

(10)

237

158

21

(9)

170

1

-

-

1

66

58

49,291

1,304

132

(333)

50,394

17,261

1,576

(235)

18,602

795

76

(5)

866

30,926

31,235Total(c)

Assets pledged and Hypothecated against borrowings:i

All the movable and immovable items of Property, Plant and Equipment of Mahan Aluminium unit, both present
and future, carrying value ` 11,238 crore (as at 31/03/2021 ` 11,609 crore) are given as security towards first ranking
pari passu charge against the rupee term loans from banks of ` 2,934 crore (gross) (as at 31/03/2021 ` 2,942 crore).
All the movable items of Property, Plant and Equipment and immovable properties of Mahan Aluminium unit, both* refer note 53 Business Combination

present and future are given as first ranking pari passu charge against the rupee term loan of ` 2,500 crore, refer
note - 18A (b).
ii

All the movable and immovable items of Property, Plant and Equipment of Aditya Aluminium unit both present andfuture, carrying value of ` 11,693 crore (as at 31/03/2021 ` 12,029 crore) are given as security towards first ranking paripassu charge against the rupee term loan from bank of ` 6,299 crore (gross) (as at 31/03/2021 ` 6,299 crore), refer
note - 18A (b).

490

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22491

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statementsiii

All movable items of Property, Plant and Equipment both present and future (except movable items of Mahan
Aluminium, Aditya Aluminium, Kalwa Plant and current assets of the Company) and certain immovable properties of
the Company are given as security towards Non-Convertible Debentures of ` 6,000 crore (gross) (as at 31/03/2021` 6,000 crore), refer note - 18A (a).

(h) CWIP completion schedule for projects, whose completion is overdue or has exceeded its cost compared to its
original plan as at 31/03/2022 are given below:(` in Crore)

Project name

Capital Work-in-Progress comprise of various projects and expansions spread over all units. Many of these projects will becapitalized during the year ending March 31, 2023. The Company has tested the carrying value of Capital Work-in-Progressfor impairment as at reporting date. During the current year, the Company has impaired certain mining assets which were
under CWIP amounting to ` 19 crore, refer note 35 for further details.
Major Capital Work-in-Progress are related to following divisions:(` in Crore)

Divisions

31/03/2022

31/03/2021

Aluminium

1,352

1,189

Copper119

293

Corporate

102

105

1,573

1,587

Total

(f)

During the current year, interest capitalised on qualifying assets is ` 18 crore (year ended 31/03/2021 ` 9 crore), refer note
33 for further details.

(g) Capital Work-in-Progress (CWIP) ageing schedule as at 31/03/2022
Particulars

Projects in progress
Projects temporarily suspended
Total(` in Crore)

Amount in CWIP for a period of

Total

Less than
1 year

1-2 years

2-3 years

More than
3 years

835

354

96

87

1,372

1

2

21

177

201

836

356

117

264

1,573

Capital Work-in-Progress (CWIP) ageing schedule as at 31/03/2021
Particulars

Projects in progress
Projects temporarily suspended
Total

Amount in CWIP for a period of

Total

Less than
1 year

1-2 years

2-3 years

More than
3 years

791

412

141

93

1,437

2

10

22

116

150

793

422

163

209

1,587

(i)

Total

Less than
1 year

1-2 years

2-3 years

More than
3 years

Installation of Transformer Rectfier at
Electrostatic Precipitator at Muri plant

7

-

-

-

7

Construction of RCC retaining wall &drainage system at Red Mud Pond at Muri
plant

3

-

-

-

3

Powder Coating facility for Extruded Profilesat Alupuram plant

3

-

-

-

3

Electronic Governing System for one Black
Start DG at Mahan plant

4

-

-

-

4

Installation of Desulphurization System at
Hirakud Power plant

22

-

-

-

22

Bare Fin Stock Manufacturing at Mouda plant

9

-

-

-

9

Zero Liquid Discharge Plant at Taloja plant

1

-

-

-

1

Bag filter at Captive Power Plant Dahej unit

2

-

-

-

2

Construction of permanent sheds at Dahej
plant

3

-

-

-

3

Installation of Tail Gas Scrubber System in
Sulphuric Acid Plant at Dahej plant

3

-

-

-

3

Wind screen for open coal & rack storageyard at Dahej plant

1

-

-

-

1

Degreasing and Circle Blanking Line at
Renukoot Rolled plant

7

-

-

-

7

Extrusion Press at Renukoot Extrusion plant

2

-

-

-

2

Electro Static Precipitators for boilers ofRenusagar Power plant

18

-

-

-

18

Others*

31

-

-

-

31

Slow cooled converter slag and part Flash
Smelting Furnace slag at Dahej plant

-

69

-

-

69

Construction of New Office Building, Mumbai

-

-

-

73

73

116

69

-

73

258

(d) For capital expenditures contracted but not incurred, refer note 44B.
(e)

To be completed in

Project in Progress(ii) Project temporarily suspended

Total
No Projects in above table are presented due to Cost overrun.

* It represents the projects having budgeted capital expenditure amount below ` 5 crore.

492

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22493

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
CWIP completion schedule for projects, whose completion is overdue or has exceeded its cost compared to its
original plan as at 31/03/2021 are given below:(i)(` in Crore)

Project name

(i)

ii)

To be completed in

Total

Less than
1 year

1-2 years

2-3 years

More than
3 years

Capacity Augmentation of Red mud Pond at
Muri plant

2

-

-

-

2

Installation of Transformer Rectifier at
Electrostatic Precipitator at Muri plant

-

7

-

-

7

Track Hopper at Coal Handling at Aditya plant

-

56

-

-

56

Nickle Cadmium station battery charger at
Aditya plant

-

4

-

-

4

Suspended Particulate Matter (SPM) reduction
at 6 units of Electro Static Precipitators at
Aditya plant

-

18

-

-

18

Sectionalizer at 220 KV bus of Aditya plant

-

5

-

-

5

Procurement and Installation of 100 MVA
Power Transformer at Hirakud Smelter plant

5

-

-

-

5

Installation of Desulphurization System at
Hirakud Power plant

-

5

-

-

5

Degreasing and Circle Blanking Line at
Renukoot Rolled Plant

-

82

-

-

82

New 6” Extrusion Press at Renukoot Extrusion
Plant

-

47

-

-

47

Electro Static Precipitators for boilers ofRenusagar Power Plant

-

21

-

-

21

Annealing Furnace for Flat Rolled Products
at Mouda plant

6

-

-

-

6

Ambient Air Quality Monitoring System at
Dahej plant

-

2

-

-

2

Bag filter at Captive Power Plant Dahej plant

-

6

-

-

6

Heat Exchanger at Dahej plant

-

8

-

-

8

Wind screen for open coal & rack storage yard
at Dahej plant

-

7

-

-

7

Tertiary water recycling unit at Dahej plant

-

50

-

-

Slow cooled converter slag and part Flash
Smelting Furnace slag at Dahej plant

-

-

68

-

Powder Coating facility for Extruded Profilesat Alupuram plant

-

2

-

-

2

Zero Liquid Discharge Plant at Taloja plant

-

1

-

-

1

Aditya Birla Centre, Mumbai

20

-

-

-

20

Others*

12

30

-

-

42

Project in Progress^(j)Items of Property, Plant and Equipment

Useful Life
(Years)Freehold land

Infinite ^Buildings

30-60

Plant and Machinery

15-40

Vehicles and Aircraft

8-20

Railway Wagons

15

Railway Sidings

15

Furniture and Fixtures

8-10

Office Equipment

3-6

Freehold land used for mining is depreciated over 8 - 30 years.

Residual values and useful live of Property, Plant and Equipment are reviewed, and adjusted if appropriate, at the end ofeach reporting period. The Company has not revalued its property, plant and equipment (including right-of-use assets) orintangible assets or both during the current or previous year.

(k) During the current year, the Company has impaired certain assets related to Di Ammonium Phosphate (DAP) plant amounting
to ` 76 crore, refer note 35 for further details.
B

Right of Use Assets
The Company leases many assets including Land, Buildings, Plant and Machinery, Vehicles, Railway Wagons, Railway
Sidings, Furniture etc. These right of use assets are presented as part of ‘Property, Plant and Equipment’ under Non-Current
assets on the face of the Balance Sheet.
(` in Crore)

Particulars

ORIGINAL COST

ACCUMULATED DEPRECIATIONAs at Additions Disposal/
As at
April 01,
Adjust- March 31,
2021
ments
2022

As at Additions
April 01,
2021

Disposal/
Adjustments

ACCUMULATED IMPAIRMENTAs atMarch 31,
2022

As at
April 01,
2021

Recognised/ Deduction/(Reversed)
Adjustments

NET CARRYINGAMOUNT
As atMarch 31,
2022

As at
March 31,
2022

As at
March 31,2021

Leasehold Land

760

57

(34)

783

54

32

(21)

65

-

-

-

-

718

706

Buildings

84

15

(10)

89

44

26

(10)

60

-

-

-

-

29

40

Plant and Machinery

83

30

(60)

53

50

14

(37)

27

-

-

-

-

26

33

50

Vehicles and Aircraft

19

29

(6)

42

10

10

(6)

14

-

-

-

-

28

9

68

Railway Wagons

41

-

-

41

8

4

-

12

-

-

-

-

29

33

Railway Sidings

2

-

-

2

-

-

-

-

-

-

-

-

2

2

Furniture and Fixtures

10

-

-

10

7

2

-

9

-

-

-

-

1

3

Total

999

131

(110)

1,020

173

88

(74)

187

-

-

-

-

833

826

Integrated Annual Report 2021-22

495

Project temporarily suspended
Construction of New Office Building, Mumbai
Total

-

-

-

73

73

45

351

68

73

537

No Projects in above table are presented due to Cost overrun.
* It represents the projects having budgeted capital expenditure amount below ` 5 crore.

494

HINDALCO INDUSTRIES LIMITEDCorporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(` in Crore)(` in Crore)
Particulars

ORIGINAL COST

ACCUMULATED DEPRECIATIONACCUMULATED IMPAIRMENTAs at Additions Disposal/
As at
April 01,
Adjust- March 31,
2020
ments
2021

As at Additions Disposal/
As at
April 01,
Adjust- March 31,
2020
ments
2021

As at
April 01,
2020

Particulars

NET CARRYINGAMOUNT

Recognised/ Deduction/
As at(Reversed)
AdjustMarch 31,
ments
2021

As at
March 31,
2021

As at
March 31,
2020

ORIGINAL COSTAs at
April 01,
2020

Addition

ACCUMULATED DEPRECIATION

Disposal/
As at
Adjustments March 31,
2021

As at
April 01,
2020

Addition

ACCUMULATED IMPAIRMENT

Disposal/
As at
Adjustments March 31,
2021

As at
April 01,
2020

NET CARRYINGAMOUNT

Recognised/ Disposal/
As at(Reversed) Adjustments March 31,
2021

As at
March 31,
2021

As at
March 31,
2020

Leasehold Land

750

4

6

760

19

28

7

54

-

-

-

-

706

731

Freehold Land

1

-

-

1

-

-

-

-

-

-

-

-

1

1

Buildings

84

9

(9)

84

25

27

(8)

44

-

-

-

-

40

59

Buildings

12

-

-

12

4

1

-

5

-

-

-

-

7

8

Plant and Machinery

61

4

18

83

43

12

(5)

50

-

-

-

-

33

18

Total

13

-

-

13

4

1

-

5

-

-

-

-

8

9

Vehicles and Aircraft

22

-

(3)

19

6

7

(3)

10

-

-

-

-

9

16

Railway Wagons

41

-

-

41

4

4

-

8

-

-

-

-

33

37

Railway Sidings

21

-

(19)

2

9

-

(9)

-

-

-

-

-

2

12

Furniture and Fixtures

10

-

-

10

5

2

-

7

-

-

-

-

3

5

Total

989

17

(7)

999

111

80

(18)

173

-

-

-

-

826

878

(a)

Disposal/ Adjustments for the lease hold land includes ` 16 crore (31/03/2021 ` 35 crore) transferred from right of use
assets to mining rights under intangible assets in note 4B.

C

Lease liabilities recognised against Right of Use Assets are as follows:

31/03/2022

3.

Year ended

Current

Non-Current

Current

277

65

236

75

277

65

236

75

(c)

Investment Properties

Refer Note 1B (E) for accounting policy on Investment properties
Refer Note 1B (I) for accounting policy on Impairment of Non-Current Assets(` in Crore)

Rental income

33

Direct operating expenses (including repairs and maintenance) on properties generating
rental income-(1)

Direct operating expenses (including repairs and maintenance) on properties not
generating rental income--

The fair value of the Company’s investment properties as at March 31, 2022 and March 31, 2021 have been arrived at on thebasis of valuation carried out at the respective dates by an external, independent valuers. Independent valuer who arrived
at fair value as at March 31, 2022 is registered under Rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.
However values as presented in March 31, 2021 were done by independent valuer who was not registered under above
mentioned rule.

(d) The fair value measurement for all the investments properties has been categorised as Level 2 based on the inputs to thevaluation technique used. Considering the type of the assets, market approach (sales comparable method) to estimate
the fair value of the subject properties is adopted.
Fair Value of Investment Properties:

As at
31/03/2022

31/03/2021(b) The Company has no contractual obligations to purchase, construct or develop investment properties or for repairs,
maintenance and enhancements. There is no restrictions on the realisability of investment properties or the remittanceof income and proceeds of disposal on the Company.

31/03/2021

Non-Current

31/03/2022(a) Amount recognised in profit and Loss for Investment Properties are as under:(` in Crore)

As at

Lease liabilities against Right of Use Assets(` in Crore)(` in Crore)

As at

31/03/2021

Cost

13

13

31/03/2022

Less: Accumulated Depreciation and Impairment

5

5

Level 2

Level 2Net Carrying amount

8

8

1

1

Freehold Land
Buildings(` in Crore)
Particulars

ORIGINAL COSTAs at
April 01,
2021

Addition

ACCUMULATED DEPRECIATION

Disposal/
Adjustments

As at
March 31,
2022

As at
April 01,2021

ACCUMULATED IMPAIRMENT

Addition

Disposal/
Adjustments

As at
March 31,
2022

As at
April 01,
2021

Recognised/ Disposal/(Reversed) Adjustments

NET CARRYINGAMOUNT
As atMarch 31,
2022

As at
March 31,
2022

(e)

As at
March 31,2021

Freehold Land

Freehold Land

1

-

-

1

-

-

-

-

-

-

-

-

1

1

Buildings

12

-

-

12

5

-

-

5

-

-

-

-

7

7

Total

13

-

-

13

5

-

-

5

-

-

-

-

8

8

496

HINDALCO INDUSTRIES LIMITED

Items of Investment Properties

Buildings(f)

31/03/2021

50

48

51

49
UsefulLife (Years)
Infinite60

Certain Investment Properties are given as security towards Non-Convertible debentures of ` 6,000 crore (gross) (as at
31/03/2021 ` 6,000 crore), refer note - 18A (a).
Integrated Annual Report 2021-22497

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(` in Crore)

4A Goodwill
Refer Note 1B (F) for accounting policy on Intangible Assets

Particulars

ORIGINAL COST

ACCUMULATED AMORTIZATIONACCUMULATED IMPAIRMENTNET CARRYINGAMOUNTAs at Addition Addition Disposal/
As at
April 01,
due toAdjust- March 31,
2020
acquisition ments
2021

As at Addition Disposal/
As at
April 01,
Adjust- March 31,
2020
ments
2021

As at Recognised/ Disposal/
As at
April 01, (Reversed)
Adjust- March 31,
2020
ments
2021

As at
As at
March 31, March 31,
2021
2020

(` in Crore)

As at
31/03/2022

31/03/2021

Cost

4

-

Mining rights

568

58

-

35

661

261

41

2

304

-

44

-

44

313

307

Less: Accumulated Impairment--

Technology and Software

112

4

-

-

116

105

3

-

108

-

-

-

-

8

7

Net Carrying amount of Goodwill

4

-

Total

680

62

-

35

777

366

44

2

412

-

44

-

44

321

314

(i)

(ii)

Goodwill generated during acquisition of extrusion business of Kuppam unit. As a result of goodwill impairment test for
the year ended 31/03/2022, no goodwill impairment was identified as the recoverable value of the CGUs to whom goodwill
was allocated exceeded their respective carrying amount.
Refer note 53 Business Combination for further details.

4B Intangible Assets and Intangible Assets under Development(a)(b) The Carrying amount of Intangible Asset under Development as at 31/03/2022 is ` 8 crore (as at 31/03/2021 was ` 122
crore). During the current year, the Company has capitalised its Enterprise Resource Planning System. The Company has
tested the carrying value of Intangible Asset under Development for impairment as at reporting date.
(c)Refer Note 1B (F) for accounting policy on Intangible Assets
Refer Note 1B (G) for accounting policy on Stripping cost
Refer Note 1B (I) for accounting policy on Impairment of Non-Current Assets
Refer Note 1B (S) for accounting policy on Borrowing cost(` in Crore)

As at
31/03/2022

31/03/2021

Cost

1,076

777

Less: Accumulated Amortization and Impairment

547

456

Net Carrying amount of Intangible Assets

529

321

8

122

Intangible Assets under Development (IAUD) - (b)ORIGINAL COST

ACCUMULATED AMORTIZATIONAs at
April 01,
2021

Addition

Mining rights

661

86

-

13

Technology and Software

116

179

8

Customer related Intangible
Assets

-

-

777

265

Total

Addition
Disposal/ As at
due toAdjust- March 31,
acquisition * ments
2022

HINDALCO INDUSTRIES LIMITED

Useful Life
(Years)Mining rights

8-41

Technology and Software

3-10

Customer related Intangible assets(e)5Intangible asset under development (IAUD) ageing schedule as at 31/03/2022
Particulars

ACCUMULATED IMPAIRMENTNET CARRYINGAMOUNTAs at Recognised/ Disposal/ As at
April 01, (Reversed) Adjust- March 31,
2021
ments
2022

As at
As at
March 31, March 31,
2022
2021

As at
April 01,
2021

Addition

760

304

85

1

390

44

-

-

44

326

313

(2)

301

108

7

(2)

113

-

-

-

-

188

8

15

-

15

-

-

-

-

-

-

-

-

15

-

23

11

1,076

412

92

(1)

503

44

-

-

44

529

321

(` in Crore)

Amount in IAUD for a period of

Total

Less than
1 year

1-2 years

2-3 years

More than
3 years

Projects in progress

2

4

2

-

8

Projects temporarily suspended

-

-

-

-

-

Total

2

4

2

-

8

Intangible asset under development (IAUD) ageing schedule as at 31/03/2021
Particulars

Projects in progress* refer note 53 Business Combination

498

Disposal/
As at
Adjust- March 31,
ments
2022

Items of Intangible Assets(d) Remaining amortisation period of mining rights ranges between 4 -34 years.

(` in Crore)
Particulars

Addition in Mining Rights includes ` 57 crores (as at 31/03/2021, ` 44 crore) and amortization expense includes ` 76 crore(as at 31/03/2021, ` 20 crore) towards stripping activity assets.

Projects temporarily suspended
Total(` in Crore)

Amount in IAUD for a period of

Total

Less than
1 year

1-2 years

2-3 years

More than
3 years

50

29

38

5

122

-

-

-

-

-

50

29

38

5

122

Integrated Annual Report 2021-22499

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(f)During the current year no IAUD projects completion is overdue or has exceeded its cost compared to its originalplan as at 31/03/2022.
IAUD completion schedule for projects, whose completion is overdue or has exceeded its cost compared to its
original plan as at 31/03/2021 are given below.
(` in Crore)

Project nameSuspended
Project Details(Yes/No)Enterprise Resource Planning
System (Project Ekayaan)*No

To be completed in

Total

Less than
1 year

1-2 years

2-3 years

More than
3 years

116

-

-

-

(a)

(b) During the year, A V Minerals (Netherlands) N.V., a wholly owned subsidiary has remitted US$ 75 Million (` 557 crore)to the Company towards return of capital by reducing nominal value of its shares (from € 567.83 to € 541.05 per share).
The Company has accounted for the same as reduction in Company’s carrying value of investment in the said subsidiary.
Foreign exchange gain of ` 160 crore arising out of this transaction has been recognised under the (Gain)/ Loss on Foreign
Currency Transactions (Net), refer note 37.
(c)

116

Financial guarantees given to subsidiaries were initially recognised at fair value will continue to be accounted as Other
Equity Investment until the investment in subsidiaries are derecognised or impaired.

(d) Refer Note - 43 Related Party Disclosure for information on principal place of business of the above Subsidiaries.

* Project is presented due to time overrun. There is no cost overrun in above project.

(g) All Computer Software items in Intangible Assets (except of Mahan Aluminium, Aditya Aluminium, Kalwa Plants of theCompany) are given as security towards Non-convertible debentures of ` 6,000 crore (gross) (as at 31/03/2021 ` 6,000
crore), refer note - 18A (a).
(h) The useful life of Intangible assets are reviewed, and adjusted if appropriate, at the end of each reporting period.
(i)During the current year, interest capitalised was ` 8 crore (31 March 2021: ` 6 crore), refer note 33 for further details.

5.

Investment in Subsidiaries

6. Investment in Associates and Joint Ventures(Fully paid-up unless otherwise stated)
Refer Note 1B (B) for accounting policy on Investment in Associates
Refer Note 1B (A) for accounting policy on Investment in Joint Ventures

A

Investments in Associates

Face Value(` in Crore)

Numbers as at

Value as at

Unquoted

Per Unit

31/03/2022

31/03/2021

31/03/2022

31/03/2021

A V Minerals (Netherlands) N.V. - (b)€ 541.05

2,376,838

2,376,838

9,778

10,175

Dahej Harbour & Infrastructure Limited` 10

50,000,000

50,000,0005050East Coast Bauxite Mining Company Pvt Limited

` 10

7,400

7,400

-

-

31/03/2022

31/03/2021

31/03/2022

31/03/2021

Aditya Birla Science and Technology Company Private
Limited` 10

9,800,000

9,800,000

5974

Aditya Birla Renewables Subsidiary Limited` 10

6,895,200

6,895,200

4754

Aditya Birla Renewables Solar Limited` 10

8,307,000

130,000

48

-

154

128

Unquoted

Total (A)Hindalco Almex Aerospace Limited` 10

172,115,744

172,115,744

83

83

` 10

9,902,500

9,902,500

1010Minerals & Minerals Limited` 10

50,00050,000--Renuka Investments & Finance Limited` 10

34,250,000

9,250,000

349

MNH Shakti Limited - (b)Renukeshwar Investments & Finance Limited` 10

4,795,000

4,795,000

55Hydromine Global Minerals GMBH Limited

Suvas Holdings Limited` 10

22,149,714

22,149,714

22

22

Total (B)Utkal Alumina International Limited` 10

6,251,482,818

6,251,482,818

6,362

6,362

Kosala Livelihood and Social Foundation` 10

1,600,000

100,000

1-

16,345

16,716B

Investment in Equity Shares at Cost - (a) and (c)Unquoted

(a)

NA

75

75

Suvas Holdings Limited

NA

NA

NA

-

-

A V Minerals (Netherlands) N.V.

NA

NA

NA

3

3

78

78

16,423

16,794` 10

5,265,000

12,765,000

5

13

$ 100

66,562

66,562

1

1

6

14

160

142

Aggregate amount of investments is given below:(` in Crore)

Aggregate cost of unquoted investments in Associates
NA

HINDALCO INDUSTRIES LIMITED

Investments in Joint Ventures

Investment in Associates and Joint Ventures (A+B)

Other Equity Investment - (c)(Fair Value of Financial Guarantee given for)NA

Value as at

Investment in Equity Shares at FVTOCI - (a) and (c)Lucknow Finance Company Limited

Utkal Alumina International Limited

Numbers as at

Per Unit(Fully paid-up unless otherwise stated)

Investment in Equity Shares at Cost - (a) and (d)(` in Crore)

Face Value

Refer Note 1B (A) for accounting policy on Investment in subsidiaries

500

Aggregate carrying value of Investments in subsidiaries is ` 16,423 crore (as at 31/03/2021 ` 16,794). None of the subsidiaries
are listed on any stock exchange in India or outside India and these investments are carried at cost. There is no accumulated
impairment as at current or previous year end.

25

17

Aggregate cost of unquoted investments in Joint Ventures

38

46

Impairment on unquoted investments in a Joint Venture

(32)

(32)

(b) Pursuant to order received by MNH Shakti Limited from Hon’ble NCLT related its capital reduction, the Company hasreceived amount of ` 8 crore during the year.
(c)

Refer Note - 43 Related Party Disclosure for information on principal place of business of the above Associates and Joint
Ventures.

Integrated Annual Report 2021-22

501

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
7A. Other Investments, Non-Current

Refer Note 1B (P) for accounting policy on Financial Instruments
Equity instruments at FVTOCI - (a)(Fully paid-up unless otherwise stated)(` in Crore)

Face Value

Numbers as at

Value as at

Per Unit

31/03/2022

31/03/2021

31/03/2022

31/03/2021

Grasim Industries Limited`2

28,222,468

28,222,468

4,696

4,093

Ultra Tech Cement Limited` 10

1,258,515

1,258,515

831

848

Aditya Birla Fashion & Retail Limited` 10

50,239,794

44,982,142

1,518

905

` 7.50-5,257,652-

89

Vodafone Idea Limited` 10

751,119,164

751,119,164

725

695

Aditya Birla Capital Limited` 10

39,511,455

39,511,455

QuotedAditya Birla Fashion & Retail Limited (Partly paid up) - (b)

425

471

8,195

7,101

-

-

Unquoted
Sai Wardha Power Generation Limited
Birla International Limited
Bharuch Dahej Railway Company Limited` 10

2,830,352

2,830,352

CHF 100

2,500

2,500

5

5

` 10

13,530,000

13,530,000

10

15

15

20

Debt Instruments at FVTOCI - (a)QuotedGovernment Securities - (c)6.83% Government of India Bond, 2039

2,000,000

2,000,000

20

20

6.57% Government of India Bond, 2033

5,000,000

5,000,000

48

50

6.45% Government of India Bond, 2029

5,000,000

5,000,000

49

50

5.79% Government of India Bond, 2030

10,000,000

10,000,000

94

96

6.19% Government of India Bond, 2034

10,000,000

10,000,000

92

96

303

312

2

4

Debt Instruments at FVTPL - (a)Unquoted
Mutual Funds
Investments in Debt Schemes of Mutual Funds

(a)

2

4

8,515

7,437

Aggregate Cost of Quoted Investments

1,484

1,470

Aggregate Market value of Quoted Investments

8,498

7,413

Aggregate Cost of Unquoted Investments

25

25

Aggregate amount of impairment in value ofinvestments

3

3

8,515

7,437

Aggregate amount of Quoted and Unquoted Investments, Market value of Quoted
Investments are given below:

Aggregate Carrying value of Quoted and Unquoted
Investments

502

HINDALCO INDUSTRIES LIMITED(b) During the previous year, the Company had subscribed to the Rights issue of Aditya Birla Fashion & Retail Limited at ` 110
per share (Face value of ` 10 and Premium of ` 100). The Company had invested ` 43 crore (52,57,652 shares at ` 82.50 per
share) in previous year and Final call of ` 14 crore (52,57,652 shares at ` 27.50 per share) has been paid during the current
year.
(c) Investments in Government Securities include ` 25 crore (as at 31/03/2021 ` 242 crore) being deposit as margin moneywith counter parties for derivative transactions.

7B. Investments, Current

Refer Note 1B (P) for accounting policy on Financial Instruments(` in Crore)

Face ValuePer Unit
Equity instruments at FVTOCI - (b)(Fully paid-up unless otherwise stated)
QuotedNational Aluminium Company Limited
Investments in Government securities at FVTOCI - (b)Quoted
7.95% GOI FCI Special Bonds, 2026
6.65% GOI FCI Special Bonds, 2023
7.00% GOI FCI Special Bonds, 2022
6.20% GOI FCI Special Bonds, 2022
Investments in Debentures and Bonds at FVTPL
Investment in Other Entities - (b) and (c)Quoted
7.18% NCD of IRFC
8.10% NCD of IRFC
7.19% NCD NHB
8.12% NCD of REC Limited
7.93% NCD of REC Limited
7.22% NCD of REC Limited
7.38% NCD of REC Limited
8.11% NCD of REC Limited
8.27% NCD of REC Limited
7.18% NCD of PFC
7.19% NCD of PFC
7.36% NCD of PFC
8.20% NCD of PFC
8.30% NCD of PFC
7.07% HUDCO Bonds
7.34% HUDCO Bonds
7.51% HUDCO Bonds
7.28% NHAI Bonds
Investments in Mutual Funds at FVTPL - (a) and (b)QuotedInvestments in Debt Schemes of Mutual Funds

Numbers as at
31/03/2022
31/03/2021

Value as at
31/03/2022
31/03/2021`5-18,385,327

-

99
99

` 100
` 100
` 100
` 100

513,000
2,096,600
3,039,500
1,432,100

513,000
2,096,600
3,039,500
1,432,100

5
21
31
15
72

5
22
31
15
73

` 1,000` 1,000` 1,000,000` 1,000` 1,000` 1,000` 1,000` 1,000,000` 1,000,000` 1,000,000` 1,000` 1,000` 1,000` 1,000` 1,000,000` 1,000` 1,000` 1,000,000

1,192
30,45350
43,5235,130
10,321
250
250
500
9,565
25,187
10,16350
100,000
50,00050

1,192
30,45350
43,52356,6155,130
10,321
250
250
500
9,565
25,18736,862
10,16350
100,000
50,000
50

3
5
5
1
1
26
26
52
1
3
1
6
10
6
6
152

4
5
5
6
1
1
27
27
51
1
3
4
1
5
11
6
6
164

4,333
4,557

7,022
7,358

Integrated Annual Report 2021-22503

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(a)Investments in Debt Schemes of Mutual Funds include ` 320 crore (as at 31/03/2021 ` 25 crore) being deposit as margin
money with counter parties for derivative transactions.

9A. Other Financial Assets, Non-Current

Refer Note 1B (P) for accounting policy on Financial Instruments(Unsecured, Considered Good unless otherwise stated)(b) Aggregate amount of Quoted and Unquoted Investments, Market value of Quoted Investments are given below:(` in Crore)(` in Crore)

Aggregate Cost of Quoted Investments

4,425

7,193

Aggregate Market value of Quoted Investments

4,557

7,358

Aggregate Cost of Unquoted Investments--

Aggregate amount of impairment in value of investments

-

-

4,557

7,358

Aggregate Carrying value of Quoted and Unquoted Investments

(c)

8.

31/03/2022

31/03/2021

Security Deposits - (a)

122

141

Earmarked balances with Banks - (b)4336

Deposit with Non-Banking Financial Company with initial maturity more than 12 months

60-

Deposit with Others - (a)

7

11

232

188

NCD stands for Non Convertible Debentures

Loans

Refer Note 1B (P) for accounting policy on Financial Instruments(Unsecured, Considered Good unless otherwise stated)(` in Crore)

As at
31/03/2022
Current

Non-Current

Current

Loan to Related Parties - (a)

38

167

4

45

Loan to Employees

7

5

7

4

Loan to Others

-

-

-

-

45

172

11

49

Refer note - 43 for balances with related parties.

Type of Borrower

Refer note - 43 for balances with related parties.

(b)

Earmarked balances mainly includes balance in escrow accounts/ under lien with various authorities.

Refer Note 1B (P) for accounting policy on Financial Instruments(Unsecured, Considered Good unless otherwise stated)(` in Crore)

As at
31/03/2022

31/03/2021

Security Deposits

53

24

Deposits with Non-Banking Financial Company with initial maturity more than 3 months

915

150

Accrued Interest

44

22

144

58

2

12

Other Receivables(b) Disclosure on Loans or Advances in the nature of loans granted to promoters, directors, KMPs and the related parties,
that are repayable on demand are as follows:#(a)9B. Other Financial Assets, Current
31/03/2021

Non-Current

(a)

As at

Amount of loan or advance in thenature of loan outstanding

Unsecured, Considered Good
Unsecured, Considered Doubtful
Less: Allowance for Doubtful Receivables% to the total Loans andAdvances in the nature of loans

31/03/2022

31/03/2021

31/03/2022

31/03/2021

Promoters

-

-

-

-

Directors

-

-

-

-

KMPs

-

-

-

-

(Unsecured, Considered Good unless otherwise stated)(` in Crore)

As at
31/03/2022

-

41

-

Non-Current

68%
Capital AdvanceDuring the current and previous year there are no Loans or Advances in the nature of loans granted to promoters, directors, KMPs and the related parties,
that are without specifying any terms or period of repayment.

Advance to Employees#

Current

221

-

115

-

-

6

-

11

-

30

-

37

Advance to Supplier for Goods and Services - (a)

2

1,158

89

604

Others - (c) and (d)HINDALCO INDUSTRIES LIMITED

Non-Current

Deposit with Government and Other Authorities
Prepaid Expenses - (b)504

31/03/2021
Current

Considered Good

There is no outstanding loan as at March 31, 2022 which is repayable on demand.

*

(12)
254

10. Other Non Current and Current Assets

Related Parties:i) Aditya Birla Science & Technology Company Private
Limited *

(2)
1,156

6

72

5

55

531

1,167

634

731

760

2,433

843

1,438

Integrated Annual Report 2021-22505

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(` in Crore)

31/03/2022
Non-Current

12. Trade Receivables

Refer Note 1B (N) for accounting policy on Trade receivable

As at(` in Crore)

31/03/2021
Current

Non-Current

As at

Current

Considered Doubtful

31/03/2022

Advance to Supplier for Goods and Services
OthersLess: Allowance for Doubtful amount
Unsecured, Considered Doubtful

22

108

12

109

-

11

-

11

(22)

(119)

(12)

(120)

-

-

-

-

760

2,433

843

1,438

Trade Receivables:
Secured, Considered Good
Unsecured, Considered Good

Refer note - 43 for balances with related parties.

(b)

Prepaid Expenses include ` 24 crore (as at 31/03/2021 ` 12 crore) excess CSR spent carried forward to subsequent years.
Refer note 56A for further details.

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

(d)Includes ` 192 crore (Garepalma ` 74 crore and Kathautia ` 118 crore) [as at 31/03/2021 ` 192 crore (Garepalma ` 74 crore
and Kathautia ` 118 crore)] towards appropriation of Performance Bank Guarantee by Nominated Authority (NA). Refernote - 52 for further details.

11. Inventories

Refer Note 1B (M) for accounting policy on Inventories(` in Crore)

As at 31/03/2022

As at 31/03/2021

3

4

2,671

1,600

Unsecured, Credit Impaired
Less: Loss Allowances - (d)(a)

31/03/2021

(a)

34

30

2,708

1,634

(37)

(32)

2,671

1,602

Trade Receivable ageing schedule as at 31 March 2022
Particulars

Unbilled

Not due

Outstanding for following periods from due date of receipt

Total

Less than
6 months

6 months 1 year

1-2 years

2-3 yrs.

More than
3 yrs.

(i) Undisputed – considered
good

-

2,439

219

9

1

-

6

2,674

(ii) Undisputed – which havesignificant increase in credit
risk

-

-

-

-

-

-

1

1

(iii) Undisputed – credit impaired

-

-

-

-

-

-

9

9

In Hand

In Transit

Total

In Hand

In Transit

Total(iv) Disputed – considered good

-

-

-

-

-

-

-

-

Raw Materials

3,061

5,529

8,590

2,010

5,120

7,130

-

-

-

-

-

3

-

3

Work-in-Progress

8,211

57

8,268

6,395

33

6,428

(v) D i s p u t e d – w h i c h h a v esignificant increase in credit
risk

Finished Goods

1,832

248

2,080

1,288

160

1,448

(vi) Disputed – credit impaired

-

-

-

-

-

-

21

21

Stock-in-Trade

884

-

884

4

-

4

Total

-

2,439

219

9

1

3

37

2,708

Stores and Spares

699

16

715

578

53

631

Coal and Fuel

402

9

411

339

9

348

15,0895,859

20,948

10,614

5,375

15,989(a)

The Company has extended fair value hedge accounting on its inventory which forms part of Work-in-Progress and Finished
Goods, Fair value hedges are mainly used to hedge the exposure to change in fair value of commodity price risks. The
fair value adjustment remains part of the carrying value of inventory and is taken to profit and loss when the inventory iseither sold or consumed, refer note - 49A and 49H.

(b) For Inventories hypothecated against secure short-term borrowings, refer note - 18B (a).
(c)

Write downs of inventories (net of reversal) to net realizable value related to raw materials, work-in-progress and finishedgoods amounted to ` 586 crore (as at 31/03/2021 ` 349 crore). These were recognized as expense during the year andincluded in ‘cost of raw material consumed’ and ‘change in value of inventories of work-in-progress and finished goods’
in statement of Profit and Loss.

(d) Inventories in hand include bulk materials of Coal, Bauxite and Copper Concentrate lying at yards, mines, plants andprecious metals of Gold and Silver lying at Copper smelter and refinery aggregating to ` 4,302 crore (as at 31/03/2021` 3,179 crore).

506

HINDALCO INDUSTRIES LIMITED

Less: Loss Allowances(37)

Net Trade Receivables

2,671

Trade Receivable ageing schedule as at 31 March 2021
Particulars

UnbilledNot
due

Outstanding for following periods from due date of receipt

Total

Less than
6 months

6 months 1 year

1-2 years

2-3 yrs.

More than
3 yrs.

(i) Undisputed – considered good

-

1,268

324

4

2

-

6

1,604

(ii) U n d i s p u t e d – w h i c h h a v esignificant increase in credit risk

-

-

-

-

-

-

-

-

(iii) Undisputed – credit impaired

-

-

-

-

0

-

9

9

(iv) Disputed – considered good

-

-

-

-

-

-

-

-

(v) Disputed – which have significant
increase in credit risk

-

-

-

-

-

-

-

-

(vi) Disputed – credit impaired

-

-

-

-

-

-

21

21

Total

-

1,268

324

4

2

-

36

1,634

Less: Loss Allowances(32)

Net Trade Receivables

1,602

Integrated Annual Report 2021-22507

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(b) For trade receivables hypothecated against borrowings, refer note - 18B (a)(c)

15. Non-Current Assets classified as Held For Sale

Refer Note 1B (H) for accounting policy on Non-current assets (or disposal groups) held for saleNo trade or other receivable are due from directors or other officers of the Company either severally or jointly with anyother person. Further, no trade or other receivable are due from firms or private companies respectively in which any
director is a partner, or director or member.

(` in Crore)As at(d) Loss allowances includes provision of ` 3 crore (31/03/2021: ` 2 crore) made on account of expected credit loss on Trade
Receivables, refer note - 48 (C)(e)

31/03/2021

3

4

3

4

Land and Building

1

1

Plant and Machinery

2

3

Total

3

4

Non-Current assets classified as Held for Sale

Refer note - 43 for balances with related parties.
(a)13. Cash and Cash Equivalents

Refer Note 1B (R) for accounting policy on Cash and cash equivalents(` in Crore)

As at
31/03/2022

31/03/2021

Cash in Hand--

Cheques and Drafts in Hand - (a)

14

8

281

254

2,500

-

610

741

Balances with Banks
Current Accounts
Deposit with Initial maturity of less than three months
Short term liquid Investments in Mutual Funds

3,405

(a)

31/03/2022

1,003

Includes Nil (as at 31/03/2021 ` 3 crore) remittance in transit.

Assets held for sale(b)

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

(c)

The Company is in the process of disposing the remaining assets.

16. Equity Share Capital(` in Crore)

As at
31/03/2022

31/03/2021

250

250

5

5

255

255

225

225

225

225

225

225

-

-

Authorised
2,500,000,000 (as at 31/03/2021: 2,500,000,000) Equity Shares of ` 1/- each
25,000,000 (as at 31/03/2021: 25,000,000) Redeemable Cumulative Preference Shares of ` 2/- each(b) There is no restriction with regard to cash and cash equivalents at the end of reporting period and prior periods.
Issued2,247,726,370 (as at 31/03/2021: 2,247,237,893) Equity Shares of ` 1/- each - (a)14. Bank Balances other than Cash and Cash Equivalents
Refer Note 1B (P) for accounting policy on Financial Instruments(` in Crore)

As at
31/03/2022

2,247,718,973 (as at 31/03/2021: 2,247,230,496) Equity Shares of ` 1/- each fully paid-up
31/03/2021

Deposits with Initial Maturity more than three months(a)Less: Face Value of 546,249 (as at 31/03/2021: 546,249) Equity Shares forfeited
Add: Forfeited Shares (Amount originally Paid up)

Balances with Banks
Earmarked Balances - (a)Subscribed and Paid-up

14

13

3,001

3

3,015

16

-

-

225

225

(2)

(2)

Less: Treasury Shares
16,316,130 (as at 31/03/2021: 16,316,130) Equity Shares. - (b)7,064,997 (as at 31/03/2021: 5,824,965) Equity Shares - (c)Includes unclaimed dividend of ` 5 crore( as at 31/03/2021 ` 4 crore)
(a)

(1)

(1)

222

222

Issued Equity Capital as at 31/03/2022 includes 7,397 Equity Shares (as at 31/03/2021 7,397 Equity Shares) of ` 1/- eachissued on Rights basis kept in abeyance due to legal case pending.

(b) Treasury shares include shares held by Trident Trust which represents 16,316,130 (as at 31/03/2021: 16,316,130) equity sharesof ` 1/- each fully paid-up of the Company issued, pursuant to a Scheme of Arrangements approved by the Hon’ble High
Courts of Mumbai and of Allahabad, vide their Orders dated 31st October, 2002, and 18th November, 2002, respectively,
to the Trident Trust, created wholly for the benefit of the Company and is being managed by trustees appointed by it. The
tenure of the Trust is up to January 23, 2024.
508

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22509

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(c)Treasury shares include shares held by Hindalco Employee Welfare Trust (ESOP Trust)which represents 7,064,997 equity
shares (as at 31/03/2021 5,824,965 Equity Shares) of ` 1/- each fully paid-up of the Company. The Trust buys shares of theCompany from the market, for giving shares to employees pursuant to the Employees Stock Option Scheme, 2018. Refernote 17 (A) (viii) for further details.

(d) Reconciliation of shares outstanding at the beginning and at the end of the reporting period:(h) Shares reserved for issue under options:
The Company has reserved equity shares for issue under the Employee Stock Option Schemes, refer note 42 - Employee
Share-based Payments for details of Employee Stock Option Schemes.
(i)

As at
31/03/2022
Numbers` in Crore

Numbers` in Crore

2,224,543,152

222

2,224,020,885

222

Equity shares allotted pursuant to exercise of Employee
Stock Option Scheme (ESOS)

488,477-

461,560-

Equity shares purchased by Hindalco Employee Welfare
Trust from market pursuant to ESOS

(2,119,000)

-

-

-

Equity shares allotted pursuant to exercise of ESOS throughHindalco Employee Welfare Trust

878,968-

60,707-2,223,791,597

222

2,224,543,152

222

Equity shares outstanding at the beginning of the year

Equity shares outstanding at the end of the year

(e)

(f)

31/03/2021(j)

The Company during the preceding 5 years:i.

Has not allotted shares pursuant to contracts without payment received in cash.

ii.

Has not issued shares by way of bonus shares.

iii.

Has not bought back any shares.

The Board of Directors of the Company has recommended final dividend of ` 4 per share aggregating to ` 899 crore forthe year ended 31/03/2022 which has not been recognised in the financial statement.

17. Other Equity(` in Crore)

As atShare Application Money pending Allotment

31/03/2021--

Reserves and Surplus

Rights, preferences and restrictions attached to Equity Shares:

Capital Reserve

145

145

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. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in theensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders
are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion totheir shareholding.

Capital Redemption Reserve

102

102

Details of shareholders holding more than 5% Equity Shares in the Company on reporting date:
31/03/2022

Business Reconstruction Reserve

7,715

7,715

Securities Premium

8,233

8,224

Debenture Redemption Reserve

1,500

1,350

76

55

Employee Stock Options
Treasury Shares held by ESOP Trust

As at
31/03/2021

Number of
Shares Held

Percentage of
Holding *Number of
Shares Held

Percentage of
Holding *IGH Holdings Private Limited

350,088,487

15.58

349,963,487

15.58%

Birla Group Holdings Private Limited

228,292,308

10.16

228,292,308

10.16%

Life Insurance Corporation of India and its Associates

189,588,459

8.44

203,135,624

9.04%

Morgan Guaranty Trust Company of New York98,270,986

4.37

151,010,943

6.72%* Percentage have been calculated on the basis of total number of shares outstanding (before adjusting shares held by Trident Trust and ESOP Trust, referfootnote (b) and (c) above.

(199)

(129)

General Reserve

21,354

21,354Retained Earning

10,252

5,494

49,17844,310Gain/ (Loss) on Equity Instruments FVTOCI

6,923

6,117

Gain/ (Loss) on Debt Instruments FVTOCI(5)

1(1,851)(596)

Other Reserves

Effective portion of Cash Flow Hedge
Cost of Hedging Reserve(g) Shares held by promoters at the end of the year and Movement
Promoter’s Name $No. of Sharesas
at 31/03/2022

Percentage of
total shares *No. of Sharesas
at 31/03/2022

Percentage of
total shares *% Changeduring the Year901,635

0.04

901,635

0.04-

Birla Group Holdings Private
Limited228,292,308

10.16

228,292,308

10.16

-

Total

229,193,943

Kumar Mangalam Birla$

Promoter here means promoter as defined in Section 2(69) of the Companies Act, 2013.

HINDALCO INDUSTRIES LIMITED

(39)

10

5,028

5,532

54,206

49,842(A) Brief Descriptions of items of Other Equity are given below:(i)		229,193,943

Percentage have been calculated on the basis of total number of shares outstanding (before adjusting shares held by Trident Trust and ESOP Trust, referfootnote (b) and (c) above.
*510

31/03/2022

(ii)
		

Share Application Money pending Allotment:
Share application money pending allotment represents amount received from employees who has exercised employee
stock options for which shares are pending allotment as on balance sheet date.
Capital Reserve:
The Company has created capital reserve pursuant to past mergers and acquisitions.

Integrated Annual Report 2021-22

511

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(iii) Capital Redemption Reserve:
		

		

b)

The Company uses hedging instruments as part of its risk management policy for commodity and foreign currency
risk as described in note 49. The Cash Flow hedging reserve is used to recognise the effective portion of gain orloss on designated hedging relationship, refer note 49 (E) and 49 (F).

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

(iv) Business Reconstruction Reserve:
		

(v)
		

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

(vi) Debenture Redemption Reserve:				

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

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

18A.Borrowings, Non-Current

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

Particulars

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

(viii) Treasury Shares held by ESOP Trust				(ix) General Reserve:
		
(x)
		

Non-Current
Portion31/03/2022
Current
Maturities #Total

Non-Current
Portion31/03/2021
Current
Maturities #

Total

-

5,999

5,999

5,997

-

5,997

11,668
11,668

8
6,007

11,676
17,675

9,177
15,174

8
457
465

9,185
457
15,639Current maturities of non-current borrowings have been disclosed under “Borrowings, Current”, refer note 18B.

(a)

Debentures comprise of following:

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

a)Gain/ (Loss) on equity and debt instruments accounted as FVTOCIThe Company has elected to recognize changes in the fair value of certain investments in other comprehensive
income. These changes are accumulated within the FVTOCI equity investments reserve and FVTOCI debt
investment reserve within equity.

512#

HINDALCO INDUSTRIES LIMITED(` in Crore)

As at

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

(xi) Other Reserves		SecuredDebentures
Secured Non-Convertible Debentures- (a)Term Loans
From Banks
Rupee Term Loans - (b)Foreign Currency Term Loans - (c)The Company has created a trust, namely “Hindalco Employee Welfare Trust”(ESOP Trust) for providing share-based
payments to its employees (including its Subsidiaries’ employees). The Company uses this Trust as a vehicle for
distributing shares to employees covered under Scheme. The Trust buys shares of the Company from the market, forgiving shares to employees under the Employees Stock Option Scheme, 2018.
Shares held by Trust are treated as Treasury shares. Equity instruments that are reacquired (Treasury shares) arerecognised at cost and deducted from equity. No gain or loss is recognised in Statement of Profit and Loss on purchase,sale, issue or cancellation of Equity instruments. Share options whenever exercised, would be utilised from suchtreasury shares, refer note 42.

Cost of Hedging Reserve:
The Company designates the spot component of some of its derivative instruments in fair value hedge relationshipand cash flow hedge relationship. The Company defers changes in the forward element of such instrumentsin the cost of hedging reserve. For fair value hedge forward points at inception is amortized on a straight line
basis from the OCI based on the remaining life of trade. For cash flow hedge the deferred cost of hedging are
included in the initial cost of the related hedged items when it is recognized or reclassified to the statementof profit and loss when the hedged item effects the statement of profit and loss. The Company designates theintrinsic value of option contracts whereas the time value of option contracts is included in the cost of hedging
reserve, refer note 49 (E) and 49 (F).

(vii) Employee Stock Options:		c)Securities Premium:
Securities premium reserve is used to record the premium on issue of shares. The reserve is utilized in accordancewith the provision of the Act.

Effective portion of Cash Flow Hedge:

30,000 9.55% Redeemable Non-Convertible Debenturesof ` 10 lakhs each
15,000 9.55% Redeemable Non-Convertible Debenturesof ` 10 lakhs each
15,000 9.60% Redeemable Non-Convertible Debenturesof ` 10 lakhs each(` in Crore)

31/03/2022
Gross
Carrying
Amount
Value
3,000
3,000

As at
31/03/2021
Gross
Carrying
Amount
Value
3,000
2,999

Redemption Date

25/04/2022

1,500

1,500

1,500

1,499

27/06/2022

1,500

1,499

1,500

1,499

02/08/2022

6,000

5,999

6,000

5,997

All the above Debentures are secured by movable items of Property, Plant and Equipment, both present and future (except
movable assets of Mahan Aluminium plant, Aditya Aluminium plant, Kalwa plant, Current Assets of the Company) andcertain immovable properties of the Company, refer note - 2A (c) (iii).

Integrated Annual Report 2021-22

513

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(b) Rupee term loan from banks comprise of following:(` in Crore)(c)Foreign currency term loans from bank comprise of following:(` in Crore)

As at
Note

Rate ofInterest^

As at

31/03/2022

31/03/2021

Gross
AmountCarrying
Value

Gross
AmountCarrying
Value

End oftenureAxis Bank

Repo Rate + 275
bps

619

602

619

610

31/03/2030

State Bank of India

MCLR 3 Month +10 bps

2,239

2,216

2,239

2,227

31/03/2030

Repo Rate + 275
bps *

76

75

84

84

2,934

2,893

2,942

2,921

ICICI Bank
Rupee Term Loans : (A)

(I)

4,672

4,665

4,672

4,657

01/09/2030

PNB Bank

MCLR 1 Month +
5 bps

256

255

256

255

01/09/2030

Axis Bank

Repo Rate + 275
bps

1,371

1,363

1,371

1,352

01/09/2030

SBI Bank
Rupee Term Loans : (C)MCLR 3 Month +15 bps
(III)

6,299

6,283

6,299

6,264

2,500

2,500

-

-

2,500

-

-

11,733

11,676

9,241

9,185

Gross
AmountCarrying
Value

Gross
AmountCarrying
Value

-

-

293

291

31/03/2022

Bank of Tokyo Mitsubishi (BTMU)

USD

LIBOR 3M +135 bps

-

-

167

166

30/06/2022

-

-

460

457

Foreign currency term loan pertained to loan from Bank of Tokyo Mitsubishi (BTMU) of USD 40 Millions and USD 22.79
Millions. BTMU loan was secured by a pari-passu first charge on all movable Property, Plant and Equipment of Mahan
Aluminium plant, both present and future, refer note - 2A (c) (i). The Company has prepaid both the loans in April 2021.
(d) Changes in liabilities arising from financing activities
Particulars

31/12/2031
Additions
Cash Flows (Net)

Other Assets(` in Crore)

Liabilities from Financing Activities

Total

Cash and Cash
Equivalents

Non Current
Borrowings

Current
Borrowings

Lease
Liabilities

Supplier’s
Credit3,231

16,199

7,419

317

-

27,166

-

-

-

17

-

17

(2,228)(6)(2,829)(69)

255(4,877)

-

(14)

(265)

-

-

(279)

* Benchmark changed w.e.f. February 2022. Previous benchmark was T-bill.

Fair Value Changes, refer note 27 (b)

-

(56)

-

-

-

(56)

^ Definition of abbreviation used

Debt Issuance Costs and Amortisation

-

49

-

-

-

49

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

Interest Expense **

-

1,232

140

25

-

1,397

Interest Paid **-(1,242)

(171)

(22)

-

(1,435)

Other Changes/ Reclassification Modification/ Reassessment

-

-

-

43

-

43

1,003

16,162

4,294

311

255

22,025(ii) Repo rate is the rate at which RBI lends funds to commercial banks.
(iii) Marginal Cost of funds based Lending Rate (MCLR) is a tenor-linked internal benchmark rate of respective bank(iv) Treasury Bill (T-bill) means the rate of interest published by the Financial Benchmarks India Pvt. Ltd. (“FBIL”).

The term loans from banks of ` 2,934 crore (gross) (31/03/2021: ` 2,942 crore) are secured by a first ranking charge/
mortgage/ security interest in respect of all the movable and immovable items of Property, Plant and Equipment of Mahan
Aluminium plant, both present and future. ` 2,858 crore (gross) (31/03/2021: ` 2,858 crore) is to be repaid in 16 quarterly
instalments commencing from June 2026. Balance ` 76 crore (gross) (31/03/2021: ` 84 crore) is to be repaid in 32 quarterly
instalments (31/03/2021: 36 quarterly instalments) as per original repayment schedule effective June 2020, refer note 2A(c) (i).

Balance as at March 31, 2021 #Additions
Cash Flows (Net)(II) The term loan of ` 6,299 crore (gross) (31/03/2021: ` 6,299 crore) is secured by a first ranking charge/ mortgage/security
interest in respect of all the movable and immovable items of Property, Plant and Equipment of Aditya Aluminium plantboth present and future. ` 6,299 crore (gross) (31/03/2021: ` 6,299 crore) is to be repaid in 26 quarterly instalmentscommencing from May 2024, refer note - 2A(c) (ii).
(III) The term loan of ` 2,500 crore (gross) is secured by a first ranking charge/ mortgage/security interest in respect of all
the movable and immovable items of Property, Plant and Equipment of Mahan Aluminium plant both present and future.
` 2,500 crore (gross) is to be repaid in 34 quarterly instalments commencing from September 2023, refer note - 2A(c) (i).

514

End oftenureForeign Exchange Adjustments

Total Rupee Term Loans(A)+(B)+(C )(I)

31/03/2021

LIBOR 3M +135 bps

Balance as at April 01, 2020 #2,500

31/03/2022

USD

Foreign Currency Term Loans :Mahan Unit

MCLR 3 Month +10 bps(II)

Rate ofInterest

Bank of Tokyo Mitsubishi (BTMU)

31/03/2030

State Bank of India

Rupee Term Loans : (B)Currency

HINDALCO INDUSTRIES LIMITED

-

-

-

131

-

131

2,402

2,032

(2,923)

(71)

2,161

3,601

Foreign Exchange Adjustments

-

1

36

-

40

77

Fair Value Changes, refer note 27 (b)

-

(53)

-

-

-

(53)

Debt Issuance Costs and Amortisation

-

57

-

-

-

57

Interest Expense **

-

1,201

63

26

8

1,298

Interest Paid **-(1,198)

(61)

(23)

(8)

(1,290)

Other Changes/ Reclassification Modification/ Reassessment

-

-

-

(32)

-

(32)

3,405

18,202

1,409

342

2,456

25,814

Balance as at March 31, 2022 ##Borrowings include Interest accrued on borrowings and current maturities of related borrowings.

**

Interest expense and interest paid relates to borrowings and lease liabilities before interest capitalisation.

Integrated Annual Report 2021-22515

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
18B.Borrowings, Current

19. Supplier’s Credit

Refer Note 1B (P) for accounting policy on Financial Instruments(` in Crore)(` in Crore)

As at

As at
31/03/2022

31/03/2021

3

5

3

5

-

40

Foreign currency Loans from Indian Banks - (b)

1,401

2,607

Foreign currency Loans from Foreign Banks - (b)

-

1,638

Other Borrowings

-

-

1,401

4,285

6,007

465

7,411

4,755

SecuredRupee Loans from Banks - (a)Unsecured

Current maturities of Long-Term Borrowings

Working Capital loan for Aluminium business, granted under the Consortium Lending Arrangement, are secured by a firstpari-passu charge on entire stocks of raw materials, work-in-process, finished goods, consumable stores and spares andalso book debts pertaining to the Company’s Aluminium business, both present and future. Working Capital loan for the
Copper business is secured by a first pari passu charge on stocks of raw materials, work-in-process, finished goods andconsumable stores and spares and also book debts and other movable assets of Copper business, both present and future,refer note 11 (b) and 12 (b).

(b) Foreign currency loans from Indian Banks and Offshore branch of Foreign banks are mainly in nature of Buyers credit
which has been availed for Copper business to meet its working capital requirement mostly to settle import paymentsof copper concentrate and certain other raw materials. Refer note 49C on non-derivative financial instruments used as
hedging instruments.
(c)Currency

Rate ofInterest #Terms of Repayment #As atCarrying amount
31/03/2022

31/03/2021

INR-

Payable on demand

3

5

Rupee Loans from Banks

INR

-

-

-

40

Foreign currency Loans from Indian Banks

USD

6M SOFR*

Payable from Apr 22- May 22

1,401

2,607

Foreign currency Loans from Foreign
Banks

USD

-

-

-

1,638

1,404

516

4,290

-

2,456

-

255

-

2,456

-

255

(` in Crore)

As at
31/03/2022

31/03/2021

Non-Current

Current

Non-Current

Current

Micro and Small Enterprises - (b)

-

96

-

52

Other than Micro and Small Enterprises - (c) and (d)-10,919

-

8,748

-

11,015

-

8,800

(a)

Trade Payables ageing schedule as at 31 March 2022
S.
Particulars
No.

Unbilled

Not due

Outstanding for following periods from due date of payment
Less than
1 year

1-2 years

2-3 years

More than
3 years

Total

MSME

14

31

44

3

3

1

96

(ii) Others

865

2,351

7,516

26

22

52

10,832(iii) Disputed dues- MSME

-

-

-

-

-

-

-

(iv) Disputed dues- Others

-

-

21

22

44

-

87

879

2,382

7,581

51

69

53

11,015

Total

Unsecured

Current

Refer Note 1B (O) for accounting policy on Trade and other payables

SecuredRupee Loans from Banks @Non-Current

20. Trade Payables(i)(` in Crore)

Current

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

Rupee Loans from Banks represents loan taken to meet the Company’s working capital requirements.

(d) Loan Details are as follows:

31/03/2021

Non-Current
Supplier’s Credit (a)(a)

Rupee Loans from Banks - (c)(a)

31/03/2022

Trade Payables ageing schedule as at 31 March 2021
S. Particulars
No.

Unbilled

Not due

Outstanding for following periods from due date of payment
Less than
1 year

1-2 years

2-3 years

Total

More than
3 years

MSME

3

12

31

5

-

1

52

(ii) Others

548

1,659

6,302

24

10

70

8,613

(i)

#

Rate of Interest and Terms of repayment pertains to borrowing outstanding as at 31/03/2022.

(iii) Disputed dues- MSME

-

-

-

-

-

-

-

@

This consist of Cash Credit (CC) balance.

(iv) Disputed dues- Others

-

-

24

53

12

46

135

*

SOFR stands for Secured Overnight Financing Rate.

551

1,671

6,357

82

22

117

8,800

HINDALCO INDUSTRIES LIMITED

Total

Integrated Annual Report 2021-22

517

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(b) Information related to Micro and Small Enterprises, as per the Micro, Small and Medium Enterprises Development Act,
2006 (MSME Development Act), are given below. The information given below have been determined to the extent suchenterprises have been identified on the basis of information available with the Company:

22. Provisions

Refer Note 1B (K) for accounting policy on Provisions and contingencies
Refer Note 1B (U) for accounting policy on Employee Benefits(` in Crore)(` in Crore)

As at

As at
31/03/2022

31/03/2021

94

51

-

-

(iii) Interest and Principal amount paid beyond appointment day

50

46(iv) The amount of interest due and payable for the period of delay in making payment (which havebeen paid but beyond the appointed date during the year) but without adding the amount ofinterest specified under MSME Development Act.

21(v) The amount of interest accrued and remaining unpaid at the end of the year.

21(vi) The amount of further interest remaining due and payable even in the succeeding years, until suchdate when the interest dues as above are actually paid to the Small enterprise, for the purposeof disallowance as a deductible expenditure under Section 23 of MSME Development Act.

2

1

(i)

Principal amount outstanding(ii) Interest on Principal amount due thereon(c)Refer note - 43 for balances with related parties.

(d) Refer note 49 (A) on non-derivative financial instruments used as hedging instruments.

31/03/2022
NonCurrent

Current

Total

NonCurrent

Current

Total

142

275

417

174

268

442

Asset Retirement Obligations

110

-

110

99

-

99

Environmental Liability

83

179

262

9

54

63

Enterprise Social Commitment

138

10

148

139

9

148

Legal Cases

-

383

383

-

331

331

Renewable Power Obligation

-

148

148

-

156

156

Miscellaneous Provisions

1

11

12

-

13

13

332

731

1,063

247

563

810

474

1,006

1,480

421

831

1,252

Employee Benefits Provisions, (refer note 31) - A
Other Provisions - B

Total (A+B)

21A. Other Financial Liabilities, Non-Current

Refer Note 1B (P) for accounting policy on Financial Instruments(` in Crore)

31/03/2021(a)

The details of provisions movement are as under:(` in Crore)

As at
31/03/2022

31/03/2021

Liability for Capital Expenditure

8

4

Retention Amount Payable

2

6

Security and Other deposits

3

-

13

10

21B. Other Financial Liabilities, Current

Refer Note 1B (P) for accounting policy on Financial Instruments(` in Crore)

As atParticulars

AssetsRetirement
Obligations

Environmental
Liability

EnterpriseSocialCommitment

Legal
Cases

Renewable
Power
Obligation

Miscellaneous
Provisions

Total

Balance as at April 01, 2020

95

53

144

425

171

13

901

Provision made during the year

-

16

-

12

75

-

103

Reclassified

-

-

-

-

-

-

-

Provision utilised during the year

-

(7)

(5)

(67)

(33)

-

(112)

Provision reversed during the year (c) and (d)

-

-

-

(39)

(57)

-

(96)

Unwinding of discount

4

1

9

-

-

-

14

Balance as at March 31, 2021

99

63

148

331

156

13

810

31/03/2022

31/03/2021

Interest Accrued but not due

532

527

Provision made during the year

6

200

-

53

112

-

371

Liability for Capital Expenditure

304

281

Reclassified

-

-

-

-

-

-

-

Retention Amount Payable

118

94

Security and Other deposits

41

31

Provision utilised during the year

(1)

(2)

(10)

(1)

(107)

(1)

(122)

Provision reversed during the year (c)

-

-

-

-

(13)

-

(13)

5

4

Unwinding of discount

6

1

10

-

-

-

17

-

-

110

262

148

383

148

12

1,063

1,000

937

Integrated Annual Report 2021-22

519

Investor Education and Protection Fund
Unclaimed Dividends - (a)Temporary Book Overdraft

(a)

518

Balance as at March 31, 2022

This amount do not include any amount due and outstanding, to be credited to Investor Education and Protection Fund
except ` 0.09 crore (as at 31/03/2021 ` 0.09 crore) which is held in abeyance due to legal cases pending.

HINDALCO INDUSTRIES LIMITEDCorporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(b) Brief Description of Provisions
i)
		

ii)
		

iii)
		

iv)
		

v)
		

vi)
		
(c)

Assets Retirement Obligations
Asset Retirement Obligation (ARO) is a legal or constructive obligation associated with the ash ponds, ash pipeline
and coal transportation system at captive power plants, red mud ponds at refineries and mining area where theselands need to be restored back to usable condition after closing of activities. This is a statutory requirement in which
the timing or method of settlement may be conditional on one or multiple future events, the occurrence of which
may not be within the control of the entity. The outflow of economic resources is expected during FY 23 to FY 47. The
same has been appropriately discounted.

23 Income Taxes

Refer Note 1B (W) for accounting policy on Income TaxesA(` in Crore)

Year ended(a)31/03/2021

1,496

283

Income tax expenses recognised in Statement of Profit and Loss
Current income tax Expenses for the year
Tax Adjustment for earlier years

Environmental Liability associated with Wild Life Conservation Plan (WLCP) and disposal of hazardous material
generated during the course of manufacturing or mining operation e.g. disposal of spent pot lining, Gypsum, Slag,
Ash etc. This disposal generally takes place as per the guidelines set by various regulatory authorities of States andCentral Government. The outflow of economic resources is generally expected during FY 23 to FY 31.

-

-

1,496

283

Deferred Tax

Enterprise Social Commitment

Deferred Income Tax (benefits)/expenses for the year

1,057

581

MAT Credit Entitlement

397

(283)

1,454

298

2,950

581

Total Income Tax Expenses recognised in Statement of Profit and Loss for the year(b)

Reconciliation of estimated Income Tax Expenses at Indian Statutory Income Tax Rate to
Income Tax Expenses reported in Statement of the Comprehensive Income
Profit before Income Taxes

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

8,457

1,574

Indian Statutory Income Tax Rate *34.94%

34.94%

Estimated Income Tax Expenses

2,955

550

Tax effect of adjustments to reconcile expected Income Tax expenses to reported Income
Tax Expenses:

Renewable Power Obligation (RPO)

Income Exempt from Tax

(1)

(1)

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

Long-Term Capital (Gains)/Loss

(3)

(3)

Expenses not deductible in determining Taxable Profit

51

28

Deduction on Power Plant net of Reversal of depreciation on 80IA Assets during tax holiday period

(13)

-

Exchange gain on Return of Capital

(56)

-

Deferred Tax Adjustment for earlier years

17

7

Current Tax Adjustment for earlier years--

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

(5)

31

2,950

581

Remeasurement of Defined Benefit Obligations

(3)

20

Change in Fair Value of Debt and Equity Instruments designated at FVTOCI

231

(3)

Income Tax Expenses recognised in the Statement of Profit and Loss

Reversal of RPO Provision
Pursuant to the issuance of notification by Madhya Pradesh Electricity Regulatory Commission (MPERC), the Company has
reversed the excess RPO provision of ` 13 crore related to FY 21 in current year and during previous year pursuant to theissuance of notification by Madhya Pradesh Electricity Regulatory Commission (MPERC) dated April 05, 2021, the Company
has reversed the excess RPO provision of ` 21 crore related to FY 20. Additionally ` 36 crore has been reversed on accountof reduction in Solar certificate rate from ` 2,400/REC to ` 1,000/REC.
.

*Applicable Indian statutory tax rate for the years ended 31/03/2022 and 31/03/2021 is 34.94%.
(c)

Income Tax expenses recognised in OCI

Cash Flow Hedges and Others(d) Reversal of Legal cases ProvisionDuring previous year reversal of ` 39 crore includes reversal of ` 37 crore on account of UP Transit Fees and ` 2 crore on
account of Energy Compensation Charges.

520

31/03/2022
Current Tax

Environmental Liability

Enterprise Social Commitment is the amount to be spent on social and economic development of the surrounding area
where new project is being setup. This is generally defined as a certain percentage of the total cost of the project. The
outflow of economic resources is expected during FY 23 to FY 56. This has been appropriately discounted wherevernecessary.

Current Tax and Deferred Tax Expense

HINDALCO INDUSTRIES LIMITED

(d)

(679)

(323)

(451)

(306)

(21)

(1)

(21)

(1)

Income Tax expense recognised directly in Equity
Basis adjustment on Cash flow hedges & others

Integrated Annual Report 2021-22521

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
B(` in Crore)

Deferred Tax Assets and Liabilities(` in Crore)

As at
01/04/2020

Recognised in
the Statementof Profit andLoss

Recognised in
Other

Deferredtax on basis
adjustment

As at31/03/2021

Provisions deductible for tax purposes in future period

465

16

-

-

481

Tax Losses/Benefits carry forwards, Net #

1,735

(720)

-

-

1,015

Retirement Benefits and Compensated Absences

102

(11)

(20)

-

71

Deferred Income

216

(9)

-

-

207

Cash Flow Hedges

-

-

315

1

316

2,153

283

-

-

2,436

-

15

-

-

15

4,671

(426)

295

1

4,541

(6,424)

(46)

-

-

(6,470)Cash Flow Hedges

(8)

-

8

-

-

Fair Value Measurements of Financial Instruments

(116)

76

3

-

(37)

Others

(98)

98

-

-

-

(6,646)

128

11

-

(6,507)(1,975)

(298)

306

1

(1,966)

Year ended
31/03/2022

31/03/2021

Deferred Tax Assets

1,845

2,105

MAT Credit Entitlement

2,040

2,436

3,885

4,541

(6,833)(6,507)(6,833)(6,507)(2,948)(1,966)

Deferred Tax Assets

Deferred Income Tax Assets

Deferred Tax Liabilities
Deferred Tax Liabilities

Net Deferred Tax Assets/ (Liabilities)a)

Movement in Deferred Tax Assets and (Liabilities) as of and during the year ended.

MAT Credit Entitlement
Others(` in Crore)

Opening
Balance
01/04/2021

Recognised in
the Statementof Profit andLoss

Recognisedin Other
Comprehensive
IncomeDeferredtax on basis
adjustment

As at31/03/2022

Provisions deductible for tax purposes in future period

481

44

-

-

525

Tax Losses/Benefits carry forwards, Net #1,015(1,015)

-

-

-

71

(15)

3

-

59

Deferred Income

207

(7)

-

-

200

Cash flow hedges

316

-

679

21

1,016

2,436

(396)

-

-

2,040

15

30

-

-

45

4,541

(1,359)

682

21

3,885

Deferred Income Tax Liabilities
PP&E Depreciation and Intangible Amortisation

Deferred Income Tax Assets

Retirement Benefits and Compensated Absences

MAT Credit Entitlement
OthersDeferred Income Tax Liabilities
PP&E Depreciation and Intangible Amortisation
Cash Flow Hedges
Fair Value Measurements of Financial Instruments
OthersNet Deferred Tax Assets/(Liabilities)

Net Deferred Tax Assets/(Liabilities)

Tax Losses/Benefits carry forwards represents deferred income tax asset on unabsorbed depreciation carried forward under the Income Tax Act, for which
there is no expiry period.
#(b) Deferred tax assets and deferred tax liabilities have been offset wherever the Company has a legally enforceable rightto set-off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities
relates to income tax levied by the same taxation authorities.
(c)(6,470)

(88)

-

-

(6,558)

-

-

-

-

-

(37)

(7)

(231)

-

(275)

-

-

-

-

-

(6,507)

(95)

(231)

-

(6,833)(1,966)(1,454)451

21(2,948)The Company has not recognised deferred tax assets on following long term capital losses as presently it is not probableof recovery.
(` in Crore)

Description

AY@

AmountTax impact

Year of Expiry

Long Term Capital Loss2015-1629

7

AY 2023-24

Long Term Capital Loss

2016-1734

8

AY 2024-25

Long Term Capital Loss2017-18

901

210

AY 2025-26@

Assessment Year (AY).

(d) The Company has not recognised deferred tax asset in respect of deductible temporary differences related to its subsidiaries
and associates as presently it is not probable that future taxable long term capital gain will be available in the foreseeable
future to recover such deferred tax assets.

522

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22523

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(e)

C

The Taxation Law (Amendments) Ordinance 2019 (‘the Ordinance’), provides an option to domestic companies to pay
income-tax at a lower rate of 22% (plus applicable surcharge and cess) instead of the normal rate of 30% (plus applicablesurcharge and cess) depending on the conditions specified in this behalf under section 115BAA of the Income Tax Act,
1961. A domestic company can avail of the lower tax rate only if it opts for not availing of certain exemptions or incentives
specified in this behalf in the Ordinance. There is no time limit prescribed under the above to choose the option of lower
tax rate under section 115BAA, however, once chosen it is irreversible. The Company is having accumulated MAT credit andtax incentives to be availed/adjusted against future taxable profits. Based on the projections prepared by the management,
including its plan for future capital expenditure for capacity enhancement, the company has determined that exercising
the option of lower rate will be beneficial only in long term. Accordingly, the Company has not exercised this option during
the period and continues to recognize the taxes on income for period ended March 31, 2022 as per the existing normal
tax rate of 30% (plus applicable surcharge and cess). The Company has assessed that the net deferred tax liability as at
March 31, 2022 would get reversed within the period for which Company is expected to continue to be in the existing tax
regime. The Company will review the above position at each period end.

25. Other Non Current and Current Liabilities

Income Tax Assets and Liabilities with Tax Authorities(a)(` in Crore)

As at
31/03/2022

31/03/2021

-

-

-

-

Income Tax Assets
Non-Current Tax Assets (Net)(` in Crore)

As at
31/03/2022

31/03/2021

Non-Current

Current

Non-Current

Current

Customer Refund Liability - [(a) & (refer note - 26)]

-

119

-

83

Statutory Dues Payable

-

487

-

441

554

20

573

21

31

21

36

20

585

647

609

565

Deferred Income - (b)Other Payable

Customer refund liability are recognised mainly for discount payable to customers.

(b) Represents deferred income in respect of grant related to Export Promotion Capital Goods (EPCG) at Aditya, Mahan andMouda.

26. Revenue from Operations

Refer Note 1B (X) for accounting policy on Revenue recognition
Refer Note 1B (T) for accounting policy on Accounting for government grants(` in Crore)

Income Tax Liabilities (Net)
Current Tax Liabilities (Net)

1,121

1,168

1,121

1,168

The Company is subject to tax assessments and ongoing proceedings, which are pending before various Tax Appellate
Authorities. Management periodically evaluates the positions taken in tax returns with respect to above matters, including
unresolved tax disputes, which involves interpretation of applicable tax regulations and judicial precedents. Current tax
liability and tax asset balances are presented, after recognising as appropriate, provision for taxes payable and contingencies
basis management’s assessment of outcome of such ongoing proceedings and amounts that may become payable to thetax authorities. Considering the nature of such estimates and uncertainties involved, the amount of such provisions maychange upon final resolution of the matters with tax authorities, refer note 1D.

24. Contract Liabilities

Refer Note 1B (X) for accounting policy on Contract Liability

Year ended
31/03/2022

31/03/2021

Domestic Sales - (b)44,274

26,885

Export Sales

21,31813,88965,592

40,774

Trade Sales - (b)

1,140

1,414

Sale of Services - (c)

233

119

66,96542,307688

394

67,65342,70170,47843,502

Revenue from Contracts with Customers
Sale of Products - (a)(` in Crore)

As at

Other Operating Revenues - (a) and (d)31/03/2022

31/03/2021

180

136

180

136

Balance at beginning of the year

136

158

Refund Liabilities and discounts

(779)

(497)

Amount received during the year against which revenue has not been recognized

165

128

Hedging Gain/ (Loss)(2,614)

(607)

(121)

(150)

Others - Provisionally priced contracts

(120)

(91)

-

-

Revenue from Contracts with Customers

66,96542,307180

136

Advance from Customers, (refer note - 26)

Reconciliation of contract liabilities for the periods presented:b) Performance obligations satisfied in previous years
Balance at end of the year

524

HINDALCO INDUSTRIES LIMITED

Contract Price
Adjustments for:

Revenue recognized during the yeara) Contract liabilities at the beginning of the year

Reconciliation of revenue recognised with contract price:

Integrated Annual Report 2021-22525

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(a)Sales of Copper products and precious metals are accounted for provisionally, pending finalization of price and quantity.
Variations are accounted for in the period of settlement. Final price receivable on sale of above products for which provisional
price was not finalized are realigned at year end forward LME/LMBA rate and is being presented as part of other operating
revenue. Revenue from subsequent variation in price movement is loss of ` 24 crore (year ended 31/03/2021, loss of ` 31
crore).

(` in Crore)

Year ended
31/03/2022

31/03/2021

31

18

Dividend Income, (refer note - 47(A)(c))
On Non-Current Investments - (a)(b)

Includes nutrient based subsidy of Phosphorus (P) & Potassium (K) arising from sale of Di ammonium phosphate (DAP)` 441 crore (year ended 31/03/2021 ` 402 crore).

Rent Income (a)

18

13

(c)

Sale of services predominantly include freight and insurance on exports which are identified as separate performanceobligation under Ind AS 115.

Income from Government Grants

20

21

(d)

Includes Government Grant in the nature of sales related export Incentives and other benefits of ` 408 crore (year ended
31/03/2021 ` 211 crore).

Gain/ (Loss) on Property, Plant and Equipment and Intangible Assets sold/ discarded (Net)

(31)

(20)

Gain/ (Loss) on Financial Investments Measured at FVTPL (Net)(e)

The amount of its revenue from external customers analysed by the country, in which customers are located, are given
below:

245

643

On change of Fair Value of Financial Assets

18

(222)

Other Non-Operating Income - (b)

90

92

535

650

(` in Crore)

On sale of Financial Assets

Year ended

India

31/03/2022

31/03/2021

45,59728,508Outside India
China

5,976

3,026

Korea

6,352

4,266

Others

9,320

6,690

67,24542,490408

211

67,65342,701

Total Revenue from customers
Add: Export Incentive and other benefits
Total Revenue from Operations(f)Refer note - 43, for related party transactions.

(g)Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performanceobligations related disclosures for contracts where revenue recognized corresponds directly with value to the customerof the entity’s performance completed to date.

27. Other Income

Refer Note 1B (Y) for accounting policy on Dividend and Interest Income
Refer Note 1B (T) for accounting policy on Accounting for government grants
Refer Note 1B (P) for accounting policy on Accounting for Financial Instruments(` in Crore)(a)Refer note - 43, for related party transactions.

(b)

Includes gain on modification of borrowings of ` 53 crore (year ended 31/03/2021 ` 56 crore) resulting from change inbenchmark interest rate and timing of expected cash flows on term loans.

28. Cost of Materials Consumed(` in Crore)

Year ended
31/03/2022

31/03/2021

Copper Concentrate - (a)26,67715,451

Alumina

3,265

2,840

Bauxite

668

540

Caustic Soda

456

300

Calcined Petroleum Coke

2,081

1,112

Copper Anode

2,741

1,904

Copper Cathodes

3,940

3,911

Pitch

703

355

Others

1,448

765

41,97927,178Year ended
31/03/2022

31/03/2021

On Non-Current Investments

20

13

On Current Investments

35

24

On Others - (a)

89

68

(a)

Purchase of copper concentrate is accounted for provisionally pending finalization of contents in the concentrate andprice. Variations are accounted for in the period of settlement. Final price payable on purchase of copper concentrate forwhich provisional price and quantity were not finalized during the year are realigned based on forward LME and LBMA
rate. Impact on cost from subsequent variation in price movement for year ended 31/03/2022 was loss of ` 922 crore (yearended 31/03/2021 was loss of ` 160 crore).

(b)Refer note 37, for details of freight expenses included in cost of material consumed.

Interest Income, (refer note - 47(A)(c))

526

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22527

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
29. Trade Purchases(` in Crore)

Year ended
31/03/2022

31/03/2021

Aluminum Rolled Product

256

126

Fertilizer - (a)

1,530

928

Others

(a)

136

44

1,922

1,098

A

Total employee benefit expenses incurred by the Company during the year as below

Opening Inventories

Closing Inventories

Net Change

as at

as at

Year ended

31/03/2022

31/03/2021

31/03/2022

31/03/2021

Work-in-Progress

6,428

4,595

8,268

6,428

(1,840)(1,833)Finished Goods

1,448

1,337

2,080

1,448

(632)

(111)

Stock-in-Trade

4

127

884

4

(880)

123

7,880

6,059

11,2327,880(3,352)(1,821)

8-(3,344)(1,821)Inventories acquired in businesscombination (refer note - 53)
7,880

6,059

11,232

7,880

Details of inventories under broad heads are given below:

31/03/2022

31/03/2021

1,689

1,507

Gratuity and Other Defined Benefit Plans

55

64

Contribution to Provident Fund and Other Defined Contribution Funds

116

115

Equity-settled share-based payment

35

15

Cash-settled share-based payment

5

1

Salaries and Wages
Post-Employment Benefits:

Employee Share-Based Payments, (refer note - 42)

Employee Welfare Expenses
Less: Transferred to Capital Work-in-Progress/ Intangible Assets under development

1/04/2020(` in Crore)(` in Crore)

Year ended(` in Crore)

1/04/2021

B

181

156

2,081

1,858

23

14

2,058

1,844

(i)

The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However,the date on which the Code will come into effect has not been notified. The Company will assess the impact of theCode when it comes into effect and will record any related impact in the period the Code becomes effective.

(ii)

The Hon’ble Supreme Court of India (“SC”) by their order dated February 28, 2019, in the case of Surya Roshani Limitedv/s EPFO, set out the principles based on which allowances paid to the employees should be identifi ed for inclusion
in basic wages for the purposes of computation of Provident Fund contribution. The Company has given effect of theabove judgement effective March 1, 2019. This does not have any material impact onthe Financial Statements.

Post-Employment Benefits

Work-in-Progress

Finished Goods

Stock-in-Trade

Total

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

As at

As at

As at

As at

I

31/03/2022

31/03/2021

31/03/2022

31/03/2021

31/03/2022

31/03/2021

31/03/2022

31/03/2021

Alumina

393

299

93

59

-

-

486

358

Aluminium and Aluminium
Products

1,108

792

461

388

17

2

1,586

1,182

Copper and Copper Products

4,287

3,507

1,327

987

-

-

5,614

4,494

Precious Metals

1,393

1,079

186

5

-

-

1,579

1,084

Others - (a)

1,087

751

13

9

867

2

1,967

762

8,268

6,428

2,080

1,448

884

4

11,232

7,880

528

Refer Note 1B (U) for accounting policy on Employee Benefits
Refer Note 1B (V) for accounting policy on Employee Share-based Payments

During the previous year, the Fertilizer plant was shut for regular maintence and during the current year, Company has
discontinued and impaired the Fertilizer plant. Thus, for both years, to cater to the domestic demand, the Company has
imported the fertilizer products i.e. Di Ammonium Phosphate (DAP) and Nitrogen, Phosphorus and Potassium (NPK).

30. Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade(a)

31. Employee Benefits

Others include mainly inventories of own mined coal, anode, soda in process, Di Ammonium Phosphate (DAP), Nitrogen,
Phosphorus and Potassium (NPK) and other materials.

HINDALCO INDUSTRIES LIMITED

Defined Benefit Plans:
Major Post retiral defined benefit plans of the Company include Gratuity, Post retirement medical benefit and Provident
Fund (to the extent of Company’s obligation to fund any shortfall on the yield of the trust’s investments over theadministered interest rates on an annual basis by Central Provident Fund Organisation of Govt of India). The Company
does Actuarial valuation for its identified long term and short term defined benefit plans.
Methodology for actuarial valuation of Defined Benefit Obligations:
The Projected Unit Credit (PUC) actuarial method has been used to assess the plan’s liabilities, including those related
to death-in-service and incapacity benefits.
Under PUC method a projected accrued benefit is calculated at the beginning of the year and again at the end of
the year for each benefit that will accrue for all active members of the plan. The projected accrued benefit is basedon the plan’s accrual formula and upon service as of the beginning or end of the year, but using a member’s final
compensation, projected to the age at which the employee is assumed to leave active service. The plan liability is theactuarial present value of the projected accrued benefits for active members.

Integrated Annual Report 2021-22529

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
Defined benefit plans expose the Company to actuarial risks such as: Interest Rate Risk, Salary Risk and Demographic Risk.
i.

A(` in Crore)

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

Year ended
31/03/2022

31/03/2021(1,009)(1,018)Fair Value of Plan Assets

1,114

984

Funded Status {surplus/(deficit)}

105

(34)

Funded surplus not recognised - (n)

(105)

-

Gratuity Plans

DBO, unfunded

(101)

(95)

The Company has various schemes (funded/unfunded) for payment of gratuity to all eligible employees calculated at
specified number of days (ranging from 15 days to 1 month) of last drawn salary depending upon the tenure of service
for each year of completed service subject to minimum service of five years payable at the time of separation uponsuperannuation or on exit otherwise. These defined benefit gratuity plans are governed by Payment of Gratuity Act, 1972.

Net defined benefit asset/(liability) recognised in the Balance Sheet

(101)

(129)

ii.

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

iii.

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

(c)Development of Net Balance Sheet Position
DBO, funded(` in Crore)

Year ended(` in Crore)
Year ended

(a)

(d)

31/03/2022

31/03/2021

Net Defined benefit asset/(Liability)at beginning of the year

(129)

(210)

Service cost

(46)

(49)

-

(4)

Reconciliation of Net Balance Sheet Position

31/03/2022

31/03/2021

DBO at the beginning of the year

1,113

1,094

Current service cost

46

49

Net Interest on net defined benefit liability/(asset)

(6)

(12)

Interest Cost on the DBO

68

70

Amount recognised in OCI

88

49

Settlement cost/(credit)-

4

Funded surplus not recognised - (n)

(105)

-

Acquisitions cost

2-

Employer’s contributions

52

53

Actuarial (gain)/ loss - experience

21

(50)

Benefit paid directly by Company

47

44

Actuarial (gain)/ loss - financial assumption

(67)

22

Acquisition credit/(cost)(2)-

Benefits paid directly by Company

(47)

(44)

Net Defined benefit asset/(Liability)at the end of the year

(101)

(129)

Benefits paid from plan assets

(26)

(32)

DBO at the end of the year

1,110

1,113

Change in Defined Benefit Obligations (DBO)

Settlement cost/(credit)(` in Crore)

Year ended(` in Crore)

Year ended
31/03/2022
(b)

530

31/03/2021

(e)

984

884

Interest Income on plan assets

62

58

Employer’s contributions

52

53

Return on plan assets greater/(lesser) than discount rate

42

21

Benefits Paid

(26)

(32)

Fair Value of Plan Assets at the end of the year

1,114

984

HINDALCO INDUSTRIES LIMITED

31/03/2021

46

49

-

4

Total Service Cost

46

53

Net Interest on net defined benefit liability/(asset)

6

12

Net Gratuity Cost

52

65

Expense recognised during the year
Current Service cost

Change in Fair Value of Plan Assets
Fair Value of Plan Assets at the beginning of the year

31/03/2022

Settlement cost/ (credit) -$Settlement cost/ (credit) during the year has been accounted under Exceptional Expenses as it pertains to Voluntary Retirement Scheme (VRS) granted at
our Mines, Gare Palma (refer note - 38)$

Integrated Annual Report 2021-22531

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(` in Crore)(j)Year ended(f)

31/03/2022

31/03/2021

21

(50)

Sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice,
this is unlikely to occur, and changes in some of the assumptions may be co-related. When calculating the sensitivityof the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined
benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied
as when calculating the defined benefit liability recognised in the balance sheet.

Actuarial (Gain)/ Loss due to DBO assumption changes

(67)

22

(` in Crore)

Actuarial (Gain)/ Loss arising during the period

(46)

(28)

Return on Plan Assets (greater)/less than discount rate

(42)

(21)

Funded surplus not recognised - (n)105-Actuarial (Gain)/ Loss recognised in OCI

17

(49)

Other Comprehensive Income(OCI)
Actuarial (Gain)/ Loss due to DBO experience

Year ended

31/03/2021

46

53

Defined Benefit Costs
Service Cost
Net Interest on net defined benefit liability/(asset)

6

12Actuarial (gain)/loss recognised in OCI

(88)

(49)

Funded surplus not recognised - (n)105-Defined Benefit Cost

69

16

(h)

(i)

532

Principal Actuarial Assumptions
7.00%

6.25%

Salary escalation rate

7.50%

7.50%

Weighted average duration of the defined benefit obligation

8 years

9 years

Mortality Rate

Indian Assured Lives
Mortality (2006-08)
Ultimate

Non-Current and Current portion of Defined Benefit Obligations (Refer Note - 22)(` in Crore)

Current portion

(5)

(3)

Non-current portion

(96)

(126)

(101)

(129)

HINDALCO INDUSTRIES LIMITED

(80)

(85)

Effect on DBO due to 1% decrease in discount rate

9298

Effect on DBO due to 1% increase in salary escalation rate

9096

Effect on DBO due to 1% decrease in salary escalation rate

(81)

(85)
(` in Crore)

Year ended

31/03/2021

Discount rate (based on the market yields available on Government bonds at theaccounting date with a term that matches that of the liabilities)

Effect on DBO due to 1% increase in discount rate(k) The Expected Maturity Analysis of Undiscounted Gratuity is as follows:Year ended
31/03/2022

31/03/2021

Salary Escalation Rate

Year ended
31/03/2022

31/03/2022
Discount Rate(` in Crore)(g)Sensitivity analysis(l)		

31/03/2022

31/03/2021

Within 1 year

66

57

From 1 year to 2 Year

99

88

From 2 year to 3 Year

102

97

From 3 year to 4 Year

106

95

From 4 year to 5 Year

110

104

From 5 year to 10 Year

618

577

Cash & Bank Balances

1.37%

1.57%

Scheme of insurance - Conventional product

0.20%

0.21%

Scheme of insurance - ULIP product98.43%

98.23%

100.00%100.00%Composition of Plan Assets
Major categories of Plan Assets are as under: ** Investment in Plan assets are unquoted.

(m) Expected Contributions to post employment benefit plan of Gratuity for the year ending 31st March, 2023 are` 61 crore.
(n) The Company has not recognised the surplus in its plan assets of gratuity fund since no future economic benefits are
expected in the form of reduction in future contributions to the gratuity plan or refund from the gratuity plan.

Integrated Annual Report 2021-22

533

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
B

Post Retirement Medical Benefit

Assumption use in determining the present value obligation of the interest rate guarantee under the Deterministic
Approach:This is a defined benefit plan where the Company provides post retirement medical benefit to its certain retired employees.
The scheme involves reimbursement of expenses towards medical treatment of self and dependents. The amount charged
to the statement Profit and Loss during the year is ` 0.32 crore (year ended 31/03/2021 ` 0.34 crore) and amount of actuarial(gain)/ loss recognised in Other Comprehensive Income during the year is ` (4) crore (year ended 31/03/2021 ` (1) crore). The
obligation with respect to said scheme as at 31/03/2022 ` 5 crore ( year ended 31/03/2021 ` 5 crore) .
C

Other Pension Plan
It is a pension benefit provided to erstwhile Managing Director. The amount charged to statement of Profit and Loss during
the year is ` 3 crore (year ended 31/03/2021 ` 3 crore). Amount of actuarial (gain)/ loss recognised in Other Comprehensive
Income during the year is ` 0 crore (year ended 31/03/2021 ` 1 crore). The obligation with respect to these schemes as at
31/03/2022 ` 47 crore ( year ended 31/03/2021 ` 46 crore).

II

Defined Contribution PlansA

Pension
It is a contributory benefit plan where the Company contributes a certain percentage of salary for all eligible employees in
the managerial cadre towards Superannuation Funds with option to put certain portion in National Pension Scheme (NPS)
and/or in funds managed by Birla Sunlife Insurance Company to be converted to annuity of Life Insurance Corporation ofIndia at retirement. Junior Pension Plan provided to certain employees is in the nature of defined benefit plan which provides
an annuity in the form of pension amount at retirement. The amount charged to statement of Profit and Loss during theyear is ` 16 crore (year ended 31/03/2021 ` 15 crore). Amount of actuarial (gain)/ loss recognised in Other Comprehensive
Income during the year is ` 0 crore (year ended 31/03/2021 ` 0 crore).

B

Year ended

Provident Fund
The Company’s contribution towards Provident Fund managed either by approved trusts or by the Central Government isdebited to the Statement of Profit and Loss. In respect of provident fund management by the approved trust, the Company
has an obligation to fund any shortfall on the yield of the trust’s investments over the administered interest rates on anannual basis. The Company also contributes to Coal Mines Provident Fund (CMPF) in respect of employees working incoal mines. The amount debited to Statement of Profit and Loss during the year was ` 100 crore (year ended 31/03/2021` 100 crore). Based on actuarial valuation, the Company has recognised obligation of ` 0 crore as at 31/03/2022 (yearended 31/03/2021 ` 2 crore) towards shortfall on the yield of the trust’s investments over the administered interest rates.
Amount of actuarial (gain)/ loss recognised in Other Comprehensive Income during the year is ` (4) crore (year ended
31/03/2021 ` (9) crore).
(` in Crore)

Year ended
Sensitivity Analysis :-31/03/2022

31/03/2021

Discount rate

7.00%

6.25%

Expected EPFO (Employees’ Provident Fund Organisation) Return

8.10%

8.50%

III

Other Employee Benefit plansA

Leave Obligation
The leave obligation cover the Company’s liability for earned and sick leave. The entire amount of the provision of` 261 crore (year ended 31/03/2021 ` 257 crore) is presented as current, since the company does not have an unconditionalright to defer settlement for these obligations. Expected amount towards settlement of Leave for the next 12 months are` 41 crore (31/03/2021 ` 36 crore).

32. Power and Fuel(` in Crore)

Year ended
Power and Fuel Expenses - (a)Less: Transferred to Capital Work-in-Progress/ Intangible Assets under development(a)31/03/2022

31/03/2021

6,782

5,668

(1)

-

6,781

5,668

Refer note 37, for details of freight expenses included in Power and Fuel.

33. Finance Costs

Refer Note 1B (S) for accounting policy on Borrowing cost(` in Crore)

Year ended
31/03/2022

31/03/2021

1,388

1,451

-

(14)

Interest Expenses for Leasing arrangements

26

25

Other Borrowing Costs - (c)

29

22

1,443

1,484

26

15

1,417

1,469

Interest Expenses on Financial Liabilities not at FVTPL - (a) and (b)(Gain)/ Loss on Foreign Currency Borrowings (Net)31/03/2021
Less: Transferred to Capital Work-in-Progress/ Intangible Assets under development (d)Provident Fund
Discount Rate
Effect on DBO due to 1% increase in discount rate

(3)

(3)

(a)

Interest expenses include ` 9 crore (year ended 31/03/2021 ` 6 crore) paid to Income Tax Department.

Effect on DBO due to 1% decrease in discount rate

4

4

(b)

Includes difference between effective interest rate and contracted interest rate of ` 57 crore (year ended 31/03/2021` 49 crore) mainly from amortisation of debt issuance cost.

(c)Mainly includes unwinding of discount on Enterprise Social Commitment and Asset Retirement Obligations.

(d)

The Capitalisation rate used to determine the amount of borrowing costs to be capitalised is the weighted average interest
rate applicable to general borrowings. Capitalisation rate for year ended 31/03/2022 is 6.32% p.a. (year ended 31/03/2021- 6.58% p.a.).

PensionDiscount Rate

534

31/03/2022

Effect on DBO due to 1% increase in discount rate

(0.0)

(0.1)

Effect on DBO due to 1% decrease in discount rate

0.1

0.1

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22535

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
34. Depreciation and Amortisation Expenses

36. Impairment Loss on Financial Assets (Net)

Refer Note 1B (D) for accounting policy on Property, Plant and Equipment
Refer Note 1B (E) for accounting policy on Investment properties
Refer Note 1B (F) for accounting policy on Intangible Assets
Refer Note 1B (G) for accounting policy on Stripping cost
Refer Note 1B (L) for accounting policy on Leases

Refer Note 1B (P) for accounting policy on Accounting for Financial Instruments
Year ended(` in Crore)

Year ended
31/03/2022

31/03/2021

1,576

1,590

Depreciation on Right of Use Assets

88

80

Depreciation on Investment Properties

-

1

92

44

1,756

1,715

4

7

1,752

1,708

Depreciation on Property, Plant and Equipment

Amortisation of Intangible Assets

Less: Transferred to Capital Work-in-Progress/ Intangible Assets under development(` in Crore)

35. Impairment Loss on Non-Current Assets

Refer Note 1B (I) for accounting policy on Impairment of Non-Current Assets(` in Crore)

Year ended

31/03/2022

31/03/2021

Provision for Doubtful Debts, Loans and other financial assets/ (written back) (Net)1(7)

Bad Debts Loans and other financial assets/ (written back) (Net)

1

-

2

(7)

37. Other Expenses(` in Crore)

Year ended
31/03/2022

31/03/2021

1,269

977

Repairs to Buildings

154

87

Repairs to Machinery

977

780

Consumption of Stores and Spares

Rates and Taxes

57

13

Equipment and Material Handling Expenses

340

265

Lease Expenses - (c)

130

90

Insurance Charges

125

101

Payment to Auditors - (a)55Research and Development

31

23

1,012

767

10

6

31/03/2022

31/03/2021

Impairment Loss on Property, Plant and Equipment and Intangible assets (a) and (c)

76

115

Impairment Loss on Capital Work in Progress (b)19-Impairment Loss - Asset Held for Sale (d)-25Directors’ Fees and Commission

7

6

95

140

(Gain)/Loss on Foreign Currency Transactions (Net)

(145)

(54)

During the current year, the Company has evaluated operational performance along with current environmental norms of
its Di Ammonium Phosphate (DAP) Plant and decided to decommission the same. As a result, the Company has recognizedimpairment in respect of existing DAP plant amounting to ` 76 crore.

(Gain)/Loss in Change in Fair Value of Derivatives (Net)

862

44

Miscellaneous Expenses - (f)

2,158

1,425

6,992

4,535

The Company has impaired certain mining assets which was underutilized due to various reasons such as environmental
clearances etc. amounting to ` 19 crore during the current year.

Less: Transferred to Capital Work-in-Progress/ Intangible Assets under development

During the previous year, operation of certain mining assets of the Company have become unviable due to high cost of
production and other operational issues. As a result the Company has recognized impairment in respect of these mining
assets amounting to ` 115 crores (Property, Plant and Equipement ` 71 crore and Intangible assets ` 44 crore).

(a)	  Details to Payment to Auditors are given below:

(a)

(b)
(c)

(d)

During the previous year, the Company has recognized impairment of ` 25 crores on certain other assets classified as “NonCurrent Asset Held for Sale” based on their future utilisation plan.

Freight and Forwarding Expenses (Net) - (b) and (d)Donation - (e)

30

28

6,962

4,507

Statutory Auditors:
		

4

4

		Other Services

Statutory Audit Fees^

1

1

		

-

-

Reimbursement of Out-of-Pocket Expenses

Cost Auditors:
Cost Audit Fee and Expenses

-

-

5

5

^ Statutory audit fees for year ended 31/03/2022 includes ` 1 crore towards additional fees for increase in scope. Statutory audit fees for year ended 31/03/2021
includes ` 1 crore towards additonal fees for scope increase related to previous periods.

536

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22537

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(b)Freight and forwarding expenses is net of freight subsidy of ` 10 crore (year ended 31/03/2021 ` 54 crore) received on saleof DAP.

(c)

Lease expense on account of Short Term Lease, Variable Lease and Low Value Lease on Low value assets are as follows:(` in Crore)

Particulars

Year ended
31/03/2022

31/03/2021

Short Term Leases

7650

Variable lease

54

40

-

-

130

90

Leases of low value assets
Total

(d)

Freight expenses amounting to ` 198 crore (year ended 31/03/2021 of ` 152 crore) is included in Cost of material consumedand ` 96 crore (year ended 31/03/2021 of ` 25 crore) is included in Power and Fuel expense. (refer notes 28 and 32).

(e)Donation includes ` 10 crore (year ended 31/03/2021 of Nil) paid to AB General Electoral Trust towards political donation.

(f)

Miscellaneous expenses include ` 0.10 crore (year ended 31/03/2021 ` 0.04 crore) paid to a firm of solicitors in which oneof the Director of the Company is a partner.

38. Exceptional Income/ (Expenses) (Net)

Refer Note 1B (Z) for accounting policy on Exceptional items(` in Crore)

Year ended

Exceptional Income
Exceptional (Expenses)(` in Crore)

Details of Exceptional Income/ (Expenses) as follows:Year ended
31/03/2022

31/03/2021

Provision related to Additional Surcharge (ASC) and Cross Subsidy Surcharge (CSS) levied on the
Company due to failure of the captive power producer (from whom the Company sourced powerin earlier years) to comply with the captive status criteria under Central Electricity Act, 2003.

-

(39)

Pursuant to the notification by Ministry of Environment, Forest and Climate Change (MoEFCC),
the Company has recognised provision for expected cost of disposal of legacy ash lying in ash
dykes/ponds as at December 31, 2021. The above provision is estimated based on the plan for
disposal of ash and stabilisation of ash dykes/ponds (subject to approval of Pollution Control
Board) considering feasibility of extraction of ash from ash dykes/ponds.

(107)

-

Total

(107)

(120)

39. Other Comprehensive Income/ (Loss)
The disaggregation of changes to other comprehensive income (OCI) by each class is given below:(` in Crore)

Year ended
31/03/2022

31/03/2021

Gross

Tax

Net

Gross

Tax

Net

Remeasurement of Defined Benefit Obligation (refer
note - 31)

(5)

3

(2)

57

(20)

37

17

-

17

94

-

94

1,091

(234)

857

4,257

-

4,257

1,103

(231)

872

4,408

(20)

4,388

(9)

3

(6)

(9)

3

(6)

(1,867)653(1,214)

(757)

264

(493)

(75)

26

(49)

(168)

59

(109)

(1,951)682(1,269)

(934)

326

(608)

(848)

451

(397)

3,474

306

3,780

(i) Items that will not be reclassified to Statement ofProfit and Loss

31/03/2022

31/03/2021-

127

Change in Fair Value of Investment in Associates as
FVTOCI

(107)

(120)

Change in Fair Value of Equity Instruments as FVTOCI

(107)

7
(ii) Items that will be reclassified to Statement of Profit
and Loss(` in Crore)

Details of Exceptional Income/ (Expenses) as follows:Year ended
31/03/2022

31/03/2021

Change in Fair Value of Debt Instruments designatedas FVTOCI
Effective portion of Cash Flow Hedges
Cost of Hedging Reserve

Exceptional Income:Renewable Energy Certificates (REC) recognised subsequent to approval received from Odisha
Electricity Regulatory Commission (OERC) permitting adjustment of excess REC purchased during
earlier years against future Renewable Power Obligation (RPO) and reversal of excess Renewal
Power Obligation (RPO) provision related to FY20 subsequent to Madhya Pradesh Electricity
Regulatory Commission (MPERC) order.

-

127

Total

-

127

Exgratia amount paid to the employees for their contribution during COVID 19 pandemic.

-

(48)

Employee severance cost comprising voluntary retirement scheme offered to employees pursuant
to the restructuring of a mining operation of the Company.

-

(33)

Total Other Comprehensive Income/ (Loss)

Exceptional Expenses:

538

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22539

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
40. Earnings per Share (EPS)(` in Crore)

Year ended

Profit/ (Loss) attributable to Equity Shareholders

31/03/2022

31/03/2021

5,507

993

2,224,071,351

2,224,224,042

2,968,669

1,172,360

2,227,040,020

2,225,396,402

1.00

1.00

Weighted average numbers of equity shares for calculation of EPS:
Weighted-average numbers of equity shares for Basic EPS
Dilutive impact of Employee Stock Option Scheme
Weighted-average numbers of equity shares for Diluted EPS
Face Value per Equity Share (` )finalises the specific numbers of Options to be granted to the employees discounted by such percentage not exceeding
30 % (thirty percent) to be determined by ESOS Compensation Committee in the best interest of the various stake holders
in the prevailing market conditions. The maximum period of exercise is 5 years from the date of vesting and these stock
options do not carry rights to dividends or voting rights till the date of exercise. Further, forfeited/ expired stock options
are also available for grant. Further, on 23/09/2011 the ESOS 2006 has been partially modified and by which the Company
may grant 6,475,000 stock options to its eligible employees.
Under the ESOS 2006, till 31/03/2022 the Committee has granted 4,328,159 stock options (31/03/2021: 4,328,159 stock
options) to its eligible employees out of which 1,819,941 stock options (31/03/2021: 1,819,941 stock options) has been
forfeited/ expired and are available for grant as per term of the Scheme.
A summary of movement of the stock options and weighted average exercise price (WAEP) is given below:(` in Crore)

As atEarnings per Share
Basic (` )

24.76

4.46

Diluted (` )

24.73

4.46

Treasury shares are excluded from weighted-average numbers of equity shares used as a denominator in the calculation of EPS.
Stock options granted to the employees under various ESOP schemes are considered to be potential equity shares. They havebeen included in the determination of diluted earnings per share to the extent they are dilutive. 538,978 shares (year ended
31/03/2021 4,295,432 Shares) options granted under Employee Stock option scheme but were not included in the calculation ofdiluted earnings per share because they are antidilutive for the period. Options can potentially dilute basic earnings per sharein the future depending on future share price of the Company.The stock options have not been included in the determinationof basic earnings per share. For details relating to stock options, refer note 42.

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

42. Employee Share-based Payments
Refer Note 1B (V) for accounting policy on Employee Share-based Payments
The Company has formulated employee share-based payment schemes with the objective to attract and retain talent andalign the interest of employees with the Company as well as to motivate them to contribute to its growth and profitability. The
Company views employee stock options as instruments that would enable the employees to share the value they create for
the Company in the years to come. At present, following employee share-based payment schemes are in operation, details of
which are given below:(I)

Employee Stock Option Scheme 2006 (“ESOS 2006”):
The shareholders of the Company has approved on 23/01/2007 an Employee Stock Option Scheme 2006 (“ESOS 2006”),
under which the Company may grant up to 3,475,000 stock options to its permanent employees in the management
cadre, whether working in India or out of India, including Managing and the Whole Time Directors of the Company, in
one or more tranches. The ESOS 2006 is administrated by the Nomination and Remuneration Committee of the Board of
Directors of the Company (“the Committee”). Each stock option, when exercised, would be converted into one fully paid-up
equity share of ` 1/- each of the Company. The stock options will vest in 4 equal annual instalments after completion of
one year of service from the date of grant. The exercise price shall be average price of the equity shares of the Company
in the immediate preceding seven day period on the date prior to the date on which the ESOS compensation committee

540

HINDALCO INDUSTRIES LIMITED

31/03/2022

31/03/2021

Number

WAEP

NumberWAEP

391,304

118.73456,956

118.73Granted during the year

-

-

-

-

Forfeited during the year

-

-

-

-

Exercised during the year

(391,304)

118.73(65,652)118.73

Expired during the year

-

-

-

-

Outstanding at year end--

391,304

118.73

Vested and Exercisable at year end--

391,304

118.73

Outstanding at beginning of the year

Under ESOS 2006, as at 31/03/2022 exercise prices for stock options outstanding was Nil (31/03/2021: ` 118.73) whereas
the weighted average remaining contractual life of the stock options outstanding was Nil (31/03/2021: 1.02 years).
The weighted average share price at the date of exercise of ESOS 2006 was ` 428.07 per share (31/03/2021 ` 173.25 pershare).
(II) Employee Stock Option Scheme 2013 (“ESOS 2013”):The shareholders of the Company has approved on 10/09/2013 an Employee Stock Option Scheme 2013 (“ESOS 2013”),under which the Company may grant up to 5,462,000 Options (comprising of Stock Options and/ or Restricted Stock Units(RSU)) to the permanent employees in the management cadre and Managing and Whole time Directors of the Company andits subsidiary companies in India and abroad, in one or more tranches. The ESOS 2013 is administered by the Nomination
and Remuneration Committee of the Board of Directors of the Company (“the Committee”). The stock options exercise
price would be determined by the Committee, whereas the RSUs exercise price shall be the face value of the equity sharesof the Company as at the date of grant of RSUs. Each stock option and each RSU entitles the holders to apply for and beallotted one fully paid-up equity share of ` 1/- each of the Company upon payment of exercise price during exercise period.
The stock options will vest in 4 equal annual instalments after completion of one year of the services from the date of
grant, whereas RSU will vest upon completion of three years of services from the date of grant. The maximum period of
exercise is 5 years from the date of vesting and these stock option/ RSU do not carry rights to dividends or voting rights
till the date of exercise. Further, forfeited/ expired stock options and RSUs are also available for grant.
In terms of ESOS 2013, till 31/03/2022 the Committee has granted 2,250,754 stock options and 2,252,254 RSUs (31/03/2021:
2,250,754 stock options and 2,252,254 RSUs) to the eligible employees of the Company and some of its subsidiarycompanies. Further, 301,381 stock options and 213,095 RSUs (31/03/2021: 296,996 stock options and 202,063 RSUs) has
been forfeited/ expired and are available for grant as per term of the Scheme.

Integrated Annual Report 2021-22541

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
A summary of movement of stock options and RSUs and weighted average exercise price (WAEP) is given below:(` in Crore)(` in Crore)

As at

As at

31/03/2022

31/03/2022
Stock Options

31/03/2021
RSUs

Stock Options

Stock Options
RSUs

Stock Options

RSUs

WAEP

Number

WAEP

Number

WAEP

NumberWAEP

Outstanding at beginning of the year

4,277,702

226.06

1,279,318

1.00

4,448,494

217.95

1,297,506

1.00

Granted during the year

1,872,984

448.89612,560

1.00

582,240278.05

20,487

1.00

Re-instated during the year

17,719278.05

-

-

-

-

-

-

Forfeited during the year

(155,816)

306.39(59,936)

1.00(692,325)

218.31(38,675)

1.00

Exercised during the year

(687,701)

224.10(191,267)

1.00(60,707)218.80--

Expired during the year

-

-

-

-

-

-

-

-

1.00

Outstanding at year end

5,324,888

302.51

1.00

4,277,702

226.06

1,279,318

1.00

1.00

Vested and Exercisable at year end

2,370,953

228.841.00

1,565,967

218.6046,0581.00

WAEP

Number

WAEP

Number

WAEP

NumberWAEP

110,700

132.6855,691

1.00

415,944124.82

235,718

1.00

Granted during the year

-

-

-

-

-

-

-

-

Re-instated during the year

-

-

-

-

-

-

-

-

Forfeited during the year

-

-

-

-

(37,086)

144.19(8,776)

1.00

Exercised during the year

(80,067)132.52(17,106)

1.00(224,657)

119.02(171,251)

1.00

Expired during the year

(4,385)

119.45(11,032)

1.00(43,501)

119.45--

Outstanding at year end

26,248135.3927,553

1.00

110,700

132.6855,691

Vested and Exercisable at year end

26,248135.3927,553

1.00

110,700

132.6855,691

966,695

Under ESOS 2013, the range of exercise prices for stock options outstanding as at 31/03/2022 was ` 119.45 to ` 167.15(31/03/2021: ` 119.45 to ` 167.15) whereas exercise price in case of RSUs was ` 1.00 (31/03/2021: ` 1.00). The weighted
average remaining contractual life for the stock options and RSUs outstanding as at 31/03/2022 was 1.09 years and 2.73
years, respectively (31/03/2021: 1.51 years and 2.54 years, respectively).

Under ESOS 2018, the range of exercise prices for stock options outstanding as at 31/03/2022 was ` 159.30 to ` 453.95(31/03/2021 was ` 159.30 to ` 278.05) whereas exercise price in case of RSUs was ` 1 (31/03/2021: ` 1.00). The weighted
average remaining contractual life for the stock options and RSUs outstanding as at 31/03/2022 was 5.29 years and 5.50
years, respectively (31/03/2021 was 5.43 years and 5.84 years respectively).

The weighted average share price at the date of exercise of ESOS 2013 was ` 460.52 per share (31/03/2021 ` 220.69 per
share).

The weighted average share price at the date of exercise of ESOS 2018 was ` 509.37 per share (31/03/2021 was ` 332.87
per share).

(III) Employee Stock Option Scheme 2018 (“ESOS 2018”):
The shareholders of the Company has approved on 21/09/2018 an Employee Stock Option Scheme 2018 (“ESOS 2018”),
formulated by the Company, under which the Company may grant not more than 13,957,302 [Stock Options and Restricted
Stock Units(‘RSU’)] to its permanent employees of the Company in management cadre including Managing and theWholetime Director of the Company and its subsidiary companies in India and abroad, in one or more tranches. The ESOS
2018 is administered by the Nomination and Remuneration Committee of the Board of Directors of the Company (“theCommittee”) and the Hindalco Employees Welfare Trust (“Trust”). The Stock options exercise price would be determinedby the Committee whereas the RSU exercise price shall be the face value of the equity shares of the Company as at thedate of grant of RSUs. Each stock option and each RSU entitles the holders to apply for and be allotted one fully paid-up
equity share of Re. 1/- each of the Company upon payment of exercise price during the exercise period. The stock options
will vest in 4 equal annual instalments after completion of one year of the services from the date of grant, whereas RSU
will vest upon completion of three years of services from the date of grant. The maximum period of exercise is 5 years
from the date of vesting and these stock options/RSUs do not carry rights to dividends or voting rights till the date of
exercise. Further, forfeited/expired stock options and RSUs are also available for grant.
In terms of ESOS 2018, till 31/03/2022 the Committee has granted 7,062,503 stock options and 1,981,539 RSUs (31/03/2021:
5,189,519 stock options and 1,368,979 RSUs) to the eligible employees of the Company and some of its subsidiary companies.
A summary of movement of stock options and RSUs and weighted average exercise price (WAEP) is given below:

The fair values at grant date of stock options granted during the year ended 31/03/2022 was ` 176.04 to ` 220.36 (31/03/2021
was ` 144.57 to ` 181.09) and fair values in case of RSUs was ` 419.15 to ` 435.62 (31/03/2021 was ` 269.56), respectively.
The fair valuation has been carried out by an independent valuer by applying Black and Scholes Model. The inputs to themodel include the exercise price, the term of option, the share price at grant date and the expected volatility, expected
dividends and the risk free rate of interest for terms of options.
The details of options granted, the key assumptions for Fair Value on the date of grant are as under :FY 2021-22
Tranche VII

HINDALCO INDUSTRIES LIMITED

Tranche VIII

Stock Option

RSU

Stock Option

RSU

06/08/2021

06/08/2021

12/11/2021

12/11/2021

443.251.00

453.951.00

4.43 to6.43 years

6 years to 8 years

4.43 to6.43 years

6 years to 8 years

Share price on grant date (` )443.10443.10453.95453.95

Expected volatility (%)

41.10%

41.10%

41.45%

41.45%

Expected dividend (%)

0.68%

0.68%

0.66%

0.66%

5.64% - 6.22%

6.12% - 6.54%

5.54% - 6.12%

6.01% - 6.44%

Grant date
Exercise price (` )Expected terms of options granted (years)

Risk free interest rate (%)

542

RSUs

NumberNumberOutstanding at beginning of the year

31/03/2021

Integrated Annual Report 2021-22

543

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements

FY 2020-21

Year ended

Tranche V

Tranche VI

31/03/2022
Grant date

26/03/2019

09/08/2019

12/06/2020

12/06/2020

10/02/2021

06/08/2021

Valuation Date

31/03/2022

31/03/2022

31/03/2022

31/03/2022

31/03/2022

31/03/2022

1.00

218.80159.301.00

278.05218.80

Expected volatility (%)

40.05%

40.05%

40.05%

40.05%

40.05%

40.05%

279.40

Expected dividend (%)

0.53%

0.53%

0.53%

0.53%

0.53%

0.53%

59.50%

59.50%

Risk Free interest rate (%)

5.40%

5.72%

5.37% - 6.18%

5.40% - 5.82%

5.34%

5.72%

0.36%

0.36%

0.36%

5.46% - 6.17%

6.27%

5.46%

Stock Option

RSU

Stock Option

10/02/2021

10/02/2021

10/02/2021

278.051.00

278.054.43 to7.43 years

8 years

4.43 years

Share price on grant date (` )279.40279.40

Expected volatility (%)

59.50%

Expected dividend (%)

Grant date
Exercise price (` )Expected terms of options granted (years)

Risk free interest rate (%)

The expected volatility was determined based on the historical share price volatility over the past period depending onlife of the options granted which is indicative of future periods and which may not necessarily be the actual outcome.
(IV) Stock Appreciation Rights (‘SAR 2018’):
The Company till 31/03/2022, has granted 156,694 Option SAR and 50,665 RSU SAR (31/03/2021: 95,815 Option SAR
and 20,514 RSU SAR) under the Share Appreciation Rights Scheme 2018 (“SAR 2018”) to its eligible employees. Option
SAR to be vested in 4 equal annual instalments after completion of one year of the service from the date of grant and
RSU SAR will vest upon completion of three years of services from the date of grant. The SAR 2018 is administered by
the Nomination and Remuneration Committee of the Board of Directors of the Company (“the Committee”). The SAR
2018 have performance linked vesting conditions which are decided by the committee and are cash settled. The options
shall lapse in case of performance linked vesting conditions are not met. The range of exercise price of the Option SAR is` 159.30 to ` 443.25 and RSU SAR is ` 1 (31/03/2021: Option SAR is ` 159.30 to ` 278.05 and RSU SAR is ` 1).
A summary of movement of SAR and weighted average exercise price (WAEP) is given below:
As at 31/03/2022
Option SAR(` in Crore)

As at 31/03/2021

RSU SAR

Option SAR

Year ended
31/03/2022
Grant date

06/08/2021

06/08/2021

12/11/2021

12/11/2021

12/11/2021

12/11/2021

Valuation Date

31/03/2022

31/03/2022

31/03/2022

31/03/2022

31/03/2022

31/03/2022

Exercise price (` )278.051.00

218.80278.05443.25

1.00

Expected volatility (%)

40.05%

40.05%

40.05%

40.05%

40.05%

40.05%

Expected dividend (%)

0.53%

0.53%

0.53%

0.53%

0.53%

0.53%

Risk Free interest rate (%)

5.34%

5.40% - 5.57%

5.26% - 5.72%

5.34%

5.57% - 6.30%

5.26% -6.30%

Year ended
31/03/2021
Grant date

26/03/2019

09/08/2019

09/08/2019

12/06/2020

12/06/2020

10/02/2021

Valuation Date

31/03/2021

31/03/2021

31/03/2021

31/03/2021

31/03/2021

31/03/2021

1.00

218.801.00

159.301.00

278.05

Expected volatility (%)

50.90%

50.90%

50.90%

50.90%

50.90%

50.90%

Expected dividend (%)

0.31%

0.31%

0.31%

0.31%

0.31%

0.31%

Risk Free interest rate (%)

5.45%

4.27% - 5.70%

5.34%

5.43% - 6.05%

5.45% - 5.78%

5.41%

Exercise price (` )RSU SAR

Number

WAEP

Number

WAEP

Number

WAEP

NumberWAEP

Outstanding at beginning of the year

76,652215.0020,514

1.00

44,668218.8011,333

1.00

Granted during the year

60,879255.5030,151

1.00

51,147203.79

9,181

1.00

Forfeited during the year

-

-

-

(19,163)

193.97--

Exercised during the year

(39,604)223.29(20,669)

1.00

-

-

-

-

The total intrinsic value at the end of the year of the vested Option SAR and RSU SAR is ` 2.42 crore (31/03/2021 ` 0.12 crore).

Expired during the year

-

-

-

-

-

-

-

-

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

Outstanding at year end

97,927236.82

29,996

1.00

76,652215.0020,5141.00

Vested and Exercisable at year end

47,115218.8013,565-

11,167218.80--For the year ended 31/03/2022, the Company recognised total expenses of ` 40 crore (31/03/2021 ` 16 crore) related toequity-settled and cash-settled share based transactions. During the year ended 31/03/2022, the Company has allotted
fully paid-up 488,477 equity share of ` 1/- each of the Company (31/03/2021 461,560) on exercise of equity settled options
for which the Company has realised ` 6 crore (31/03/2021 ` 3 crore) as exercise prices.

The fair values per Option SAR as at 31/03/2022 was ` 248.38 to ` 440.84 (31/03/2021 ` 144.97 to ` 232.47) and for RSU
SAR as at 31/03/2022 was ` 552.96 to ` 560.60 (31/03/2021 ` 321.21 to ` 322.35). The fair value has been carried out by anindependent valuer by applying Black and Scholes Model. The inputs to the model include the exercise price, the term of
option, the share price at grant date and the expected volatility, expected dividends and the risk free rate of interest. The
assumptions used for fair valuation for Option SAR and RSU SAR are given below:

544

Exercise price (` )HINDALCO INDUSTRIES LIMITEDThe weighted average remaining contractual life for the Option SAR as at 31/03/2022 is 2.70 to 5.35 years (31/03/2021:
1.69 to 5.92 years) and RSU SAR as at 31/03/2022 is 2.70 to 5.35 years (31/03/2021: 3.70 to 4.92 years).

The Company has received ` 0.70 crore (31/03/2021 ` 0.29 crore) from Utkal Alumina International Limited and Hindalco- Almex Aerospace Limited (Subsidiaries) towards the grant of 91,611 Stock Options and 49,061 RSUs (31/03/2021: 88,676
Stock Options and 43,261 RSUs) under ESOS 2018 which is netted off from Employee Share-Based Payments Expenses.

Integrated Annual Report 2021-22545

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
43. Related party disclosures(A)

Name of the Related Party

List of Related Parties where control exists:

Name of the Related Party

Principal Place of Business

Principal Place of Business

33

Novelis AG

Switzerland

34

Novelis Switzerland S.A.

Switzerland

35

Novelis MEA Ltd.

36

Novelis Europe Holdings Limited

United Kingdom

37

Novelis UK Ltd.

United Kingdom

38

Novelis Services Limited

United Kingdom

39

Novelis Corporation

United States of America

40

Novelis South America Holdings LLC

United States of America

41

Novelis Holdings Inc.

United States of America

42

Novelis Services (North America) Inc.

United States of America

43

Novelis Global Employment Organization, Inc.

United States of America

44

Novelis Services (Europe) Inc.

United States of America

45

Novelis Vietnam Company Limited

Vietnam46

Aleris Asia Pacific International (Barbados) Ltd.

Barbados

47

Aleris Aluminum (Zhenjiang) Co., Ltd.

China

48

Aleris (Shanghai) Trading Co., Ltd.

China

49

Aleris Asia Pacific Limited

Hong Kong

50

Aleris Aluminum Japan, Ltd.

Japan

51

Novelis Casthouse Germany GmbH (formerly known as “Aleris Casthouse Germany GmbH”)

Germany

52

Novelis Deutschland Holding GmbHGermany

53

Novelis Koblenz GmbH (formerly known as “Aleris Rolled Products Germany GmbH”)

Germany

54

Novelis Netherlands B.V.(formerly known as “Novelis Aluminum Netherlands B.V.”)

Netherlands

55

Aleris Switzerland GmbH

Switzerland

56

Aleris Aluminum UK Limited

United Kingdom

57

Aleris Holding Canada ULC

Canada58

Novelis ALR Aluminum Holdings Corporation (formerly known as “Aleris Corporation”)

United States of America

59

Novelis ALR International, Inc. (formerly known as “Aleris International, Inc.”)

United States of America

60

Novelis ALR Rolled Products, LLC (formerly known as “Aleris Rolled Products,LLC”)

United States of America

61

Novelis ALR Rolled Products, Inc. (formerly known as “Aleris Rolled Products, Inc.”)

United States of America

62

Novelis ALR Aluminum, LLC (formerly known as “Nichols Aluminum LLC”)

United States of America

63

Novelis ALR Rolled Products Sales Corporation (formerly known as “Aleris Rolled Products
SalesCorporation”)

United States of America(a)Subsidiary Companies:

1

Minerals & Minerals Limited

India

2

Renukeshwar Investments & Finance Limited

India

3

Renuka Investments & Finance Limited

India

4

Lucknow Finance Company Limited

India

5

Dahej Harbour and Infrastructure Limited

India

6

Utkal Alumina International Limited

India

7

Utkal Alumina Social Welfare Foundation

India

8

Kosala Livelihood And Social Foundation

India

9

Birla Copper Asoj Private Limited (formerly known as “Ryker Base Private Limited”) - (h)

India

10

Suvas Holdings Limited

India

11

Hindalco-Almex Aerospace Limited

India

12

East Coast Bauxite Mining Company Private Limited

India

13

AV Minerals (Netherlands) N.V.

14

Hindalco Do Brasil Industria Comercia de Alumina Ltda.

Brazil15

AV Metals Inc.

Canada16Novelis Inc.

Canada17

Novelis do Brasil Ltda.

Brazil18

Brecha Energetica Ltda.

Brazil194260848 Canada Inc.

Canada204260856 Canada Inc.

Canada218018227 Canada Inc.

Canada22

Novelis (China) Aluminum Products Co., Ltd.

China

23

Novelis (Shanghai) Aluminum Trading Co., Ltd.

China

24

Novelis PAE SAS

France25

Novelis Aluminium Beteiligungs GmbHGermany

26

Novelis Deutschland GmbH (formerly known as “Aleris Deutschland Holding GmbH”)

Germany

27

Novelis Sheet Ingot GmbHGermany

28

Novelis (India) Infotech Ltd.

India

29

Novelis Aluminum Holding Unlimited Company

Ireland30

Novelis Italia SpA

Italy

64

Novelis ALR Recycling of Ohio, LLC (formerly known as “IMCO Recycling of Ohio, LLC”)

United States of America

31

Novelis de Mexico S.A. de C.V.

Mexico65

Novelis ALR Aluminum-Alabama, LLC (formerly known as “Nichols Aluminum-Alabama LLC”)

United States of America

32

Novelis Korea Limited

South Korea

66

Novelis ALR Asset Management Corporation (formerly known as “UWA Acquisition Co.”)

United States of America

546

HINDALCO INDUSTRIES LIMITEDNetherland

United Arab Emirates

Integrated Annual Report 2021-22547

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(b)

Trust Controlled by the Company

Name of the Related Party

1

Hindalco Jan Seva Trust

India

2

Copper Jan Seva Trust

India

3

Utkal Alumina Jan Seva Trust

India

Principal Place of Business9

Mr. Anant Maheshwari

Non Executive Directors

10

Ms. Alka Bharucha

Non Executive Directors

11

Dr. Vikas Balia

Non Executive Directors

12

Mr. Sudhir Mital

Non Executive Directors(D)

Other Related Parties with whom there were transactions during the year:

During the year ended March 31, 2022:a.

Saras Micro Devices, Inc. was formed on April 21, 2021b.

Aleris RM, Inc. and Name Acquisition Co. - Merged into Aleris International, Inc. on July 21, 2021

c.

90% stake in Saras Micro Devices, Inc. was sold on November 22, 2021

1

Hindalco Employee’s Gratuity Fund, Kolkata

Post-Employment Benefit Pland.

Aleris Aluminum France SAS merged into Novelis PAE SAS on March 29, 2022

2

Hindalco Employee’s Gratuity Fund, Renukoot

Post-Employment Benefit Plane.

Novelis Laminés France SAS merged into Novelis PAE SAS on March 29, 2022

3

Hindalco Employee’s Provident Fund Institution, Renukoot

Post-Employment Benefit Planf.

Aleris Aluminum Poland Sp. z.o.o. dissolved by operation of law into Aleris Switzerland GmbH on April 15, 2021

4

Hindalco Superannuation Scheme, Renukoot

Post-Employment Benefit Plang.

100% stake in Hindalco Do Brasil Industria Comercia de Alumina Ltda. was sold on March 7, 2022

5

Hindalco Industries Limited Employees’ Provident Fund II

Post-Employment Benefit Planh.

100% equity stake in Birla Copper Asoj Private Limited (formerly known as Ryker Base Private Limited) was acquired on
November 18, 2021 through wholly owned subsidiary, Renuka Investments and Finance Limited.

6

Hindalco Industries Limited Senior Management Staff Pension Fund II

Post-Employment Benefit Plan

7

Aditya Birla Management Corporation Private Limited (ABMCPL) @Other related party in which
Director is interested

Relationship(B) List of Related Parties with joint control and significant influence:

The Company is a member of Aditya Birla Management Corporation Private Limited (ABMCPL), a company limited by guarantee formed for the purpose of its
members to mutually avail and share common facilities, expertise and other support charged on cost basis.
@

Name of the Related Party(a)

Joint Ventures (Joint Control):1

MNH Shakti Limited

Principal Place of Business(E)

The following transactions were carried out with the related parties in the ordinary course of business

India
Note No.

Year Ended

2

Hydromine Global Minerals (GMBH) Limited (Hydromine)(b)

Associates (Significant Influence):

1

Aditya Birla Science & Technology Company Private Limited

India

2

Aditya Birla Renewable Subsidiary Limited

India

Services rendered

3

Aditya Birla Renewables Solar Limited

India

Subsidiaries

1

1

4

Aditya Birla Renewable Utkal Limited

India

Associates

-

-

5

Deutsche Aluminum Verpachung Recycling GMBH

Germany

Other related party in which Director is interested

11

8

6

France Aluminum Recyclage SPA.

France8

3(C)

British Virgin Islands(` in Crore)

Nature of Transaction/Relationship

Key Managerial Personnel

Sale of Goods
Subsidiaries

Interest received during the year

1

Mr. Satish Pai - Managing Director

Executive Directors

2

Mr. Praveen Maheshwari -Whole time Director & Chief Financial Officer

Executive Directors

3

Mr. Kumar Mangalam Birla

Non Executive Directors

4Smt. Rajashree Birla

Non Executive Directors

5

Mr D Bhattacharya (Resigned w.e.f. 2nd March, 2022)

Non Executive Directors

6

Mr. A.K.Agarwala

Non Executive Directors

7

Mr. K.N. Bhandari

Non Executive Directors

8

Mr. Y.P. Dandiwala

Non Executive Directors

548

HINDALCO INDUSTRIES LIMITED

26

27

31/03/2022

31/03/2021

86

50

86

50

12

9

Subsidiaries

6

1

Associates

2

2

1

1

-

1

Dividend received during the year

Relationship26

27

Subsidiaries
Associates

1

-

218

218

Post-Employment Benefit Plan

213

208

Trust Controlled by the Company

5

10

-

-

-

-

Contribution to

Interest paid
Subsidiaries
Purchase of Materials, Capital Equipment and Others
Subsidiaries**
Associates

33

3,628

2,785

3,606

2,768

22

17

Integrated Annual Report 2021-22549

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(` in Crore)

Nature of Transaction/Relationship

Note No.

31/03/2022

31/03/2021

620

431

Subsidiaries

45

27

Associates

16

14

559

390

235

2

Subsidiaries

227

2

Associates

8-

Joint Ventures

-

-

608

8

Services received

Other related party in which Director is interested
Investments, Loans and Deposits made during the year

Investments, Loans and Deposits made returned back during the year by

5 to 105 to 10

Subsidiaries !

595

3

Associates

5

5

Joint Ventures

8

-

1,000

-

1,000

-

1,000

-

1,000

-

-

-

Investments, Deposits, Loans and Advances obtained during the year from
Subsidiary ~Investments, Deposits, Loans and Advances repaid during the year to
Subsidiary ~Licence and Lease agreements
Subsidiaries
Recovery of ESOP Expenses

31

Subsidiaries

(F)

-

-

1

-

1

-

Outstanding balances: #(` in Crore)

Nature of Transaction/Relationship
Receivables and Advances

Note No.
10, 12

106

17

16
89

4

1

507

312

Subsidiaries^

435

281

Associates

2

1

Other related party in which Director is interested

70

30

20

Trust Controlled by the Company
8, 9A, 9B

-

-

205

49

Subsidiaries

169

8

Associates

36

41

5

5

5

5

Guarantees and Collateral Securities given
Subsidiaries

Year ended

(a)

(b)

31/03/2022

31/03/2021

53

29

Short term employment benefit

51

27

Post employment benefits

2

2

3

3

3

3

7

6

7

6

Remuneration of Executive Directors - (i) and (ii)Remuneration to erstwhile Managing Director - (iii)
Post-employment benefits(c)Remuneration of Non - Executive Directors
Commission & Sitting Fees(i)

Excludes amortisation of fair value of employee share-based payments under Ind AS 102.

(ii)

As the liabilities for defined benefit plans and leave entitlements are provided on actuarial basis for the Company as
a whole, the amounts pertaining to Key Management Personnel are not included.

(iii) The Board approved pension of Mr. D. Bhattacharya of ` 0.335 crore per month and other post-employment benefits
for his past service when he was the Managing Director of the Company. The present value of the above pension
liability determined based on the actuarial valuation is accounted by the Company in the financial statements. Amountcharged as expenses in the statement of profit and loss during the year towards such post-employment benefit
amounting to ` 3 crore (as at 31/03/2021 ` 3 crore) has been disclosed as a part of managerial remuneration above,and does not include the impact of actuarial (gains)/losses recognised in other comprehensive income.

44. Contingent Liabilities and Commitments

The Company is party to, and may in the future be involved in, or subject to, disputes, claims and proceedings arising in theordinary course of our business, including some we assert against others, such as environmental, health and safety, productliability, employee, tax, personal injury and other matters. The Company has established a liability with respect to contingencies
for which a loss is probable and estimable. While the ultimate resolution of liability and costs related to these matters cannot
be determined with certainty, the Management does not believe any of these pending actions, individually or in the aggregate,
will materially impact our operations or materially affect our financial condition or liquidity.The Company’s estimates involve
significant judgment, and therefore, the estimate will change from time to time and actual losses may differ from the current
estimate.
Management reviews the status of, and estimated liability related to, pending claims and civil actions on a quarterly basis. The
evaluation model includes all asserted and unasserted claims that can be reasonably identified including claims relating to our
responsibility for compliance with environmental, health and safety laws and regulations. The estimated costs in respect of suchreported liabilities are not offset by amounts related to insurance or indemnification arrangements unless otherwise noted.

all outstanding balances are unsecured and are payable in cash.

**^

31/03/2021

109
88

Loans and Deposits (Given)#

31/03/2022

Other related party in which Director is interested
Trust Controlled by the Company(` in Crore)

Refer Note 1B (K) for accounting policy on Provisions and contingencies

Year Ended

Subsidiaries

Payables(G) Compensation of Key Managerial Personnel (KMP) of the Company:

Year Ended

Includes purchase of Alumina from Utkal Alumina International Limited amounting to ` 3553 crore (year ended 31/03/2021 ` 2722 crore).

Includes amount payable to Utkal Alumina International Limited amounting to ` 422 crore (year ended 31/03/2021 ` 274 crore).

~ represents loan obtained from and repaid to Utkal Alumina International Limited.
Includes return of capital from AV Minerals (Netherlands) N.V. amounting to ` 557 crore (year ended 31/03/2021: Nil) including Foreign Currency Exchange
gain of ` 160 crore.
!

550

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22551

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(` in Crore)

As at
31/03/2022

31/03/2021

Demand for Stamp Duty by Collector (Stamp), Kanpur, Uttar Pradesh (U.P.) on merger of Copper
Business of IndoGulf Corporation with the Company.The matter is pending before the Hon’ble
High Court of Allahabad. The Company believes that there is no substantive/computation
provision for levy/calculation of stamp duty within the provisions of Uttar Pradesh Stamp Act
on scheme of arrangement under the Companies Act, 1956, approved by the Court. Moreover,the properties in question are located in the State of Gujarat and, thus, the Collector (Stamp),
Kanpur, has no territorial jurisdiction to make such a demand. Further, the Company has alreadypaid the stamp duty for the same in 2003-04 which has been accepted as per the provisions of
the Bombay Stamp Act, 1958.

20

20

(ii)

Demand towards drawal of energy during peak hours by Uttar Pradesh Power Corporation Limited(UPPCL)/ Purvanchal Vidyut Vitran Nigam Limited (PVVNL).The dispute relates to the agreement
entered with UPPCL for the period 2009-14. Demand was raised by UPPCL for drawl of bankedenergy during peak hours. The Hon’ble Supreme Court has stayed the demand and the matteris pending with Appellate Tribunal for Electricity (APTEL).

81

81

(iii)

Retrospective revision of Water Rates by UP Jal Vidyut Nigam Limited. Writ petition pending
with Lucknow Bench of Allahabad High Court. The demand for arrears stayed.

4

4

(iv)

Demand for Entry Tax relating to valuation dispute. Appeals have been filed with Additional
CCT, Sambalpur.

28

28

(v)

Interest demand on withholding of 50% payment of Entry tax. Appeal is pending before Hon’ble
High Court of Odisha and stay has been granted.

27

27

(vi)

Demand from State and Central Sales Tax authorities for various years at different levels of appeal.

2626(vii) Disallowances of Cenvat Credit on inputs & Capital goods & short payment of excise on additional
consideration received from recipient of deemed exporter. Matters are pending with CESTAT.

99(viii) Disallowances of Service Tax credit on Input services at Various locations. These matters are
pending with CESTAT authorities.

104

101

(ix)

Demand for recovery of cenvat credit availed on service tax paid on Goods Transport
Agency (outward charges) . The matter is pending with Commissioner (Appeals), Vadodara &Commissioner, Bharuch.

9

9

(x)

Green Cess Provision Under Electricity Act Year-2012-13 to Year 2017-18. The matter is Pendingat Hon’ble Supreme Court.

14

12

(xi)

Transitional Credit of cess. Writ Petition filed before Odisha and MP High Court.

A.

Contingent Liabilities(a)

Claims against Company not acknowledged as Debt:
(i)

As at

Debt Equity Ratio

-

27

14

14

(xiii) Other Contingent Liabilities in respect of Excise, Customs, Sales Tax etc. each being for less than
` 1 crore. The demands are in dispute at various legal forums .

8

9

344

367

Other money for which Company is contingently liable
Customs Duty on Raw Materials imported under Advance License, against which export obligation
is to be fulfilled.

24-

Commitments(a)Estimated amount of contracts remaining to be executed on capital account and not provided for(net of advances)

1,073

635

(b)

Other Commitment for purchase of goods and Services (Net of Advance)

3,100

21

(c)

The Company has given the undertakings in connection with the loan of Utkal Aluminium International Limited (UAIL), a wholly owned
subsidiary to hold minimum 51% equity shares in UAIL.

HINDALCO INDUSTRIES LIMITED

31/03/2021

0.36

0.40

As at March 31, 2022 and March 31, 2021, the Company was in compliance with all of its debt covenants for borrowings.

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

Financial instruments subject to offsetting , enforceable master netting arrangement and similar arrangements.
As at 31/03/2022

Effects on Balance sheet(` in Crore)

Related amounts not offset

Gross amountGross amountset off in thebalance sheet

Net amountpresented in
the balance
sheet

Amountssubject tomaster netting
arrangements

Financial
Instrument
collateral

Net Amount

705

(24)

681

-

-

681

3,787

(24)

3,763

-

(345)

3,418

Financial Assets
Derivatives
Financial Liabilities
Derivatives(` in Crore)

As at 31/03/2021

Effects on Balance sheet

Related amounts not offset

Gross amountGross amountset off in thebalance sheet

Net amountpresented in
the balance
sheet

Amountssubject tomaster netting
arrangements

Financial
Instrument
collateral

Net Amount

800

(80)

720

-

-

720

2,025

(80)

1,945

-

(267)

1,678

Financial Assets
Derivatives
Financial Liabilities

B.

552

31/03/2022

46. Offsetting Financial Liabilities and Financial Assets(xii) Penalty For Unauthorised Disposal Of Anode Butts. The matter is pending with Odisha High Court.

(i)

The Company’s objective to manage its capital is to ensure continuity of business while at the same time provide reasonable
returns to its various stakeholders, but keep associated costs under control. In order to achieve this, requirement of capital isreviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic
investments. Apart from internal accrual, sourcing of capital is done through judicious combination of equity and borrowing,
both short term and long term. Total debt (total borrowings + lease liabilities) to equity ratio is used to monitor capital. Nochanges were made to the objectives, policies or processes for managing capital during the years ended March 31, 2022 andMarch 31, 2021.
(` in Crore)

It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above matters, pending resolution of
the respective proceedings.
(b)

45. Capital Management

Derivatives

Integrated Annual Report 2021-22553

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(b) The following table shows the fair values of Financial Assets and Financial Liabilities measured at amortised cost:

47. Financial Instruments

Refer Note 1B (P) for accounting policy on Financial Instruments(` in Crore)A

Fair Value Measurement(a)

The following table shows the carrying amounts of Financial Assets and Financial Liabilities by category:

As at
Note
No.

(` in Crore)

31/03/2022

As at
Note
No.

31/03/2022
Amortised
Cost

FVTPL

Amortised
Cost

FVTOCIFVTPL

Financial Assets

Fair Value

Carrying value

Fair Value

Loans

8

45

45

11

11

Other Financial Asset, Non Current

9A

232

232

188

188

277

277

199

199

Investments in Associate
Unquoted Instruments

Carrying value
Financial Assets

31/03/2021

FVTOCI

31/03/2021

6

-

154

-

-

128

-

Quoted Equity Instruments*

7A & 7B

-

8,195

-

-

7,200

-

Unquoted Equity Instruments*

7A

-

15

-

-

20

-

7A & 7B

-

-

4,335

-

-

7,026

Bonds and Debentures

7B

-

-

152

-

-

164

Financial Liabilities

Government Securities

7A & 7B

-

375

-

-

385

-

Borrowings

Loans

8

217

-

-

60

-

-

Trade receivables

12

1,935

-

736

1,315

-

287

Cash and Bank

13

2,795

-

-

262

-

-

Liquid Mutual Funds

13

-

-

610

-

-

741

Investments in Equity Instruments(` in Crore)

Note
No.

Investments in Debt Instruments
Mutual Funds

Cash and Cash Equivalents

Bank Balances other than cash &cash equivalents
Derivatives
Other financial assets

14
49

3,015

-

-

16

-

-

-

-

681

-

-

720

1,388

-

-

442

-

-

9,350

8,739

6,514

2,095

7,733

8,938

9A & 9B(` in Crore)

As atCarrying value

Fair Value

Carrying value

Fair Value

18B

5,999

6,025

5,997

6,182

Long term Borrowings

18A

11,676

11,778

9,642

9,718

21A

13

13

10

10

17,68817,816

15,64915,910#Carrying amount includes current portion of long term borrowing shown under short term borrowing (Refer Note 18B).

Fair Value of borrowings does not include interest accrued but not due.

Fair values for current financial assets and financial liabilities have not been disclosed because their carrying amount are areasonable approximation of their fair values.
(c)Classification of finance income and finance cost by instrument category

31/03/2022
Amortised Cost

31/03/2021
FVTPL

Amortised Cost

Borrowings, Non-Current

18A

11,668

-

9,177

-

Non convertible debentures (NCDs)

18B

5,999

-

5,997

-

Borrowings, Current

18B

1,412

-

4,755

-

Lease Liabilities

2

342

-

311

-

Supplier’s Credit

19

2,456

-

255

-

Trade Payables

20

5,942

5,073

4,029

4,771

Derivatives

49

-

3,763

-

1,945

21A & 21B

1,013

-

947

-

28,832

8,836

25,471

6,716

The Company had acquired certain equity instruments for purpose of holding for a longer duration and not for the purpose of selling in near term for shortterm profit. Such instruments have been categorized as FVTOCI.

554

HINDALCO INDUSTRIES LIMITED

31/03/2022

31/03/2021

Amortised
Cost

FVTOCIFVTPL

Amortised
Cost

FVTOCI

FVTPL

15

IncomeBorrowings*

Note No.

FVTPL

Financial Liabilities

Other financial Liabilities(` in Crore)

Year ended

As at
Note No.

31/03/2021

Non convertible debentures (NCDs)
Other Financial Liabilities, Non - Current#

31/03/2022

Interest Income (i)

27

116

19

9

72

18

Dividend Income (ii)

27

-

31

-

-

18

-

116

50

9

72

36

15

1,330

-

-

1,419

-

-

1,330

-

-

1,419

-

-

ExpenseInterest Expense (iii)33(` in Crore)

Details of amount not included in the table above(iii)

Interest on Income Tax and other finance cost

As at
31/03/2022

31/03/2021

87

50

For amortised cost and FVTOCI instruments, interest expense is recognised at effective interest rate.

Integrated Annual Report 2021-22555

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(d) Derecognition of Investments in Equity Instruments designated at FVTOCI(` in Crore)(b)

Fair value disclosure of Financial Assets and Financial Liabilities measured at amortised cost:
As atYear ended
31/03/2022
Fair value on
the date ofderecognition

Note No.

31/03/2021

Cumulative
gain or (loss) on
disposal

Fair value on
the date ofderecognition

Cumulative
gain or (loss) on
disposal

B

116

68

-

-

116

68

-

-

31/03/2022

31/03/2021

Level 1

Level 2

Level 3

Level 1

Level 2

Level 3Financial Liabilities
Borrowings

Investment in Equity Instrument- Quoted
National Aluminium Company Limited

Non convertible debentures (NCDs)

18B

-

6,025

-

-

6,182

-

Long term Borrowings

18A-

11,778

-

-

9,718

-

Other Financial Liabilities, Non - Current

21A

-

13

-

-

10

-

-

17,816--

15,910-Fair Value Hierarchy(` in Crore)

The following table shows the details of financial assets and financial liabilities including their levels in the fairvalue hierarchy:(a)(` in Crore)

Note No.

Financial assets and financial liabilities measured at fair value - recurring fair value measurements:(` in Crore)

31/03/2022
Level 1

Level 231/03/2021
Level 3

Level 1

Level 2

Level 3Loans

8Other Financial Asset, Non- Current

9A

Financial Assets
Investments in Associates
Unquoted Instruments

6

-

-

154

-

-

128

-

-

154

-

-

128

8,195

-

-

7,200

-

-

Investments in Equity Instruments
Quoted Equity Instruments

7A & 7B

Unquoted Equity Instruments

7A

-

-

15

-

-

20

8,195

-

15

7,200

-

20

4,333

2

-

7,022

4

-

Investments in Debt Instruments
Mutual Funds

7A & 7B

Bonds and Debentures

7B

-

-

152

-

77

87

Government Securities

7A & 7B

235

140

-

262

123

-

4,568

142

152

7,284

204

87

-

736

-

-

287

-

Trade Receivables

12

31/03/2022

31/03/2021

Level 1

Level 2

Level 3

Level 1

Level 2

Level 3

-

-

232

-

-

188

-

-

277

-

-

199

Financial Assets

As at
Note No.

As at

Level 145

11

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

Level 2 Hierarchy includes financial instruments that are not traded in active market. This includes over the counter (OTC)
derivatives, close ended mutual funds and debt instruments valued using observable market data such as yield
etc. of similar instruments traded in active market. All derivatives are reported at discounted values hence areincluded in level 2. Borrowings have been fair valued using credit adjusted interest rate prevailing on the reporting
date. Trade Receivables and Payables that are realigned based on forward LME/LBMA price movements havebeen included in Level 2 hierarchy.
Level 3 If one or more significant inputs is not based on observable market data, the instrument is included in level 3.
This is the case for unlisted equity instruments and certain debt instruments which are valued using assumptions
from market participants.
(iii) Disclosure of changes in level 3 items for the period ended 31/03/2022 and 31/03/2021 respectively(` in Crore)

Cash and Cash Equivalents
Liquid Mutual Funds
Derivatives

13
49

610

-

-

741

-

-

681

-

-

720

-

13,373

1,559

321

15,225

1,211

235

Financial Liabilities

556

Trade Payables

20

-

5,073

-

4,771

-

-

Derivatives

49

-

3,763

-

1,945

-

-

-

8,836

-

6,716

-

-

HINDALCO INDUSTRIES LIMITED

Unquoted
Associates

Unquoted Equity
Instruments

Unquoted Debt
Instruments

Total

34

27

224

285

Acquisitions

-

-

-

-

Sale

-

-

(49)

(49)

As at 01/04/2020

Gain/(losses) recognised in Profit or loss

-

-

2

2

94

(7)

-

87

Transfer from Level 1 and 2

-

-

6

6

Transfer to Level 1 and 2

-

-

(96)

(96)

Gain/(losses) recognised in OCI

Integrated Annual Report 2021-22557

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(` in Crore)

Unquoted
Associates

Unquoted Equity
Instruments

Unquoted Debt
Instruments

Total

As at 31/03/2021

128

20

87

235

Acquisitions

8

-

-

8

Sale

-

-

(10)

(10)

Gain/(losses) recognised in Profit or loss

-

-

9

9

Gain/(losses) recognised in OCI

18

(5)

-

13

Transfer from Level 1 and 2

-

-

66

66

Transfer to Level 1 and 2

-

-

-

-

154

15

152

321

As at 31/03/2022
Unrealised Gain/(loss) recognised in profit and loss
relating to assets and liabilities held at the end ofreporting period:

-

-

9

9

As at 31/03/2021

-

-

5

5

(iv) Sensitivity analysis of Level-3 Instruments:(` in Crore)

Unquoted Associates

Unquoted Equity Instruments

Unquoted Debt Instruments

Impact on Statementof Profit and Loss
Post Tax

Impact on
OCI Post
Tax

Impact on Statementof Profit and Loss
Post Tax

Impact on
OCI Post
Tax

Impact on Statementof Profit and Loss
Post Tax

Impact on
OCI Post
Tax

As at 31/03/2022

-

-

-

-

(2)

-

As at 31/03/2021

-

-

-

-

(1)

-

Increase in Yield by 0.5%

Increase in Price to Book
Multiple by 10%
As at 31/03/2022

-

7

-

1

-

-

As at 31/03/2021

-

7

-

1

-

-

Sensitivity with decrease in yield and Price Book Multiplier by 0.5% and 10% will have equal and opposite impact infinancial statement.
Valuation Process
Some of the Company’s assets and liabilities are measured at fair value for financial reporting purposes. The Managementof the Company has set up a team in the finance department which performs the valuation of financial assets and liabilities.
In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extent it is available.
Where Level 1 inputs are not available, the Company engages third party qualified valuers to perform the valuation. The
team works closely with the qualified external valuers to establish the appropriate valuation techniques and inputs to themodel. The team reports findings to the Management of the Company to explain the cause of fluctuations in the fair valueof the assets and liabilities.

558

HINDALCO INDUSTRIES LIMITEDFor valuation of investments in debt securities categorised as level 3, market polls which represent indicative yields areused as assumptions by market participants when pricing the asset.
There were no significant inter-relationships between unobservable inputs that materially affect fair values.

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

Transfers from level 1 and 2 to level 3 and out of level 3 for unquoted debt instruments is based on unavailability/availabilityof market observable inputs as on the reporting date. The Company’s policy is to recognise transfers into and transfers
out of fair value hierarchy levels as at the end of the reporting period.

(v)

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

48. Financial Risk Management

As at 31/03/2022

Increase/(Decrease) in Fair Value(vi) Valuation techniques used for valuation of instruments categorised as level 3

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

Market Risk(i)

Market Risk : Commodity Price Risk
Hindalco’s India Operations consist of two businesses – Copper Business and Aluminium Business. The Copper
Business works under a “Custom Smelting” model wherein the focus is to improve the processing margin. The timing
mis-match risk between the input and output price, which is linked to the same international pricing benchmark, iseliminated through use of derivatives. This off-set hedge model (through use of derivatives) is used to manage thetiming mis-match risk for both Commodity (Copper and Precious Metals) and Currency Risk (primarily, USD/INR). The
Copper Business also has a portion of View Based exposure for both Commodity and Currency, beyond the abovetiming mis-match risk. Lower Copper Prices, Stronger USD/INR exchange rate and Higher “Other Input” Prices (egCoal, furnace oil, natural gas etc) are the major price risks that adversely impact the business. Here, the Company
may use derivative instruments, wherever available, to manage these pricing risks. A variety of factors, including therisk appetite of the business and price view, are considered while taking Hedging Decisions. Such View based hedges
are usually done for the next 1-12 quarters.
The Aluminium Business is a vertically integrated business model wherein the input and output pricing risks are
independent of each other, i.e. – are on different pricing benchmarks, if any. Here, the Company may use derivative
instruments, wherever available, to manage its pricing risks for both input and output products. Lower Aluminium
Prices, Stronger USD/INR exchange rate and Higher Input Prices (e.g. Alumina, furnace oil, coal, coal tar pitch) are themajor price risks that adversely impact the Business. Hedging decisions are based on a variety of factors, including
risk appetite of the business and price View. Such Hedge decisions are usually done for the next 1-12 quarters.
Embedded Derivatives
Copper concentrate is purchased on future pricing model based on month’s average LME (in case of copper) / LBMA
(in case of gold and silver). Since, the value of the concentrate changes with response to change in commodity pricing
indices, embedded derivatives (ED) is identified and segregated in the contract. The ED so segregated, is treated likecommodity derivative and qualify for hedge accounting. These derivatives are put into a Fair Value hedge relationshipwith respect to inventory.

Integrated Annual Report 2021-22559

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(a)

The table below summarises gain/(loss) impact of increase/decrease in the commodity price on the company’s
equity and profit for the year:(b) The table below summarises gain/(loss) impact of increase/decrease in the exchange rates on the Company’s equity
and profit for the year:(` in Crore)(` in Crore)

Year ended

Year ended

Price Index

Increasein Price

Aluminium

LME

CopperCommodity Risk

31/03/2022

31/03/2021

Gain/ (Loss) inStatement ofProfit and Loss
Post Tax

Gain/ (Loss) in
Other Componentsof Equity
Post Tax

Gain/ (Loss) inStatement ofProfit and Loss
Post Tax

Gain/ (Loss) in
Other Componentsof Equity
Post Tax

10%

-

(767)

-

(613)

LME

10%

(850)

-

(696)

(24)

Gold

LBMA/ MCX

10%

(136)

-

(104)

-

Silver

LBMA

10%

(10)

-

(19)

-

Furnace Oil

AG Platts

10%

-

-

-

6

Decrease in prices by 10% will have equal and opposite impact in financial statements. Sensitivity analysis has been
computed by stress testing the market price of the underlying price index on the outstanding derivative position as on
the reporting date by assuming all other factors constant.
(ii)Market Risk : Foreign Currency Risk
Exchange rate movements, particularly the United States Dollar (USD) and Euro (EUR) against Indian Rupee (INR), havean impact on our operating results. In addition to the foreign exchange inflow from exports, the commodity prices in thedomestic market are derived based on the landed cost of imports in India where LME prices and USD/INR exchange rate
are the main factors. In case of conversion business, the objective is to match the exchange rate of outflows and related
inflows through derivative financial instruments. With respect to Aluminium business where costs are predominantly in INR,
the strengthening of INR against USD adversely affects the profitability of the business and benefits when INR depreciates
against USD. The company enters into various foreign exchange contracts to protect profitability. The Company also enters
into various foreign exchange contracts to mitigate the risk arising out of foreign currency exchange rate movement inforeign currency contracts executed with foreign suppliers to procure capital items for its project activities.
During the year ended, the Company’s foreign c exposure arising from exports and import transactions resulted in the
FOB value of exports amounting to ` 21,416 crore (31/03/2021 ` 13,860 crore) and the CIF value of imports amounting to` 36,807 crore (31/03/2021 ` 21,274 crore).

(a)

The Company’s net exposure to foreign currency risk at the end of the reporting period expressed in ` is given
below:Unhedged Foreign Currency Payable / (Receivable)
Currency Pair(` in Crore)

As at
31/03/2022

31/03/2021

NOK

1

1

CHF

1

1

2

2

Assets and liabilities that are naturally hedged against future transactions are excluded for the purpose of above disclosure.
As on March 31, 2022 the Company has USD, EUR and GBP foreign currency payables of ` 10,126 crore (March 31, 2021
` 9,870 crore) which will be offseted by an equal amount of foreign currency receivables in the next financial year.

560

HINDALCO INDUSTRIES LIMITED

Currency Risk

Increase in
Rate/Price

31/03/2022

31/03/2021

Gain/ (Loss) inStatement ofProfit and Loss
Post Tax

Gain/ (Loss)in OtherComponents ofEquityPost Tax

Gain/ (Loss) inStatement ofProfit and Loss
Post Tax

Gain/ (Loss)in OtherComponents ofEquityPost Tax

USD/INR

10%(13)(1,158)33(1,110)EUR/INR

10%

-

-

3

1

EUR/USD

10%

8

-

-

-

Decrease in prices by 10% will have equal and opposite impact in financial statements.Sensitivity analysis has been
computed by stress testing the market price of the underlying currency index on the outstanding derivative position andunhedged exposure as on the reporting date by assuming all other factors constant.
(iii) Market Risk: Equity Securities Price Risk
The Company’s exposure to equity securities price risk arises from movement in market price of related securities classified
either as FVTOCI or FVTPL. The Company manages the price risk through diversified portfolio.
The table below summarises gain/(loss) impact on of increase/decrease in the equity share price on the Company’s equity
and profit for the year:(` in Crore)

Year ended

Other Price Risk

Price
Index

Increase
Rate/Price

Investment in Equity Securities

NSE

10%

31/03/2022

31/03/2021

Gain/ (Loss) inStatement ofProfit and Loss
Post Tax

Gain/ (Loss)in OtherComponents ofEquityPost Tax

Gain/ (Loss) inStatement ofProfit and Loss
Post Tax

Gain/ (Loss)in OtherComponents ofEquityPost Tax

-

724

-

636

Decrease in prices by 10% will have equal and opposite impact in financial statements.Sensitivity analysis has been
computed by stress testing the market price of the underlying price index on the investment portfolio as on the reporting
date by assuming all other factors constant.
(iv) Market Risk: Interest Rate Risk
The Company is exposed to interest rate risk on financial liabilities such as borrowings, both short-term and long-term.
It maintains a balance of fixed and floating interest rate borrowings and the proportion is determined by current market
interest rates, projected debt servicing capability and view on future interest rates. Such interest rate risk is actively
evaluated and interest rate swap is taken whenever considered necessary.
The Company is also exposed to interest rate risk on its financial assets that include fixed deposits, bonds, debentures,commercial papers, other mutual funds and liquid investments comprising mainly mutual funds (which are part of cash
and cash equivalents). Since, majority of these are generally for short durations, the Company believes it has limited
interest rate risk.

Integrated Annual Report 2021-22561

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(a)

The table below summarises gain/(loss) impact of increase/decrease in the interest rates on the Company’s equity
and profit for the year:(` in Crore)(` in Crore)

Contractual maturities of financial
liabilities as at 31/03/2022

Note
No.

Less than
1 Year

Between
1 and
2 Years

Between
2 and
5 YearsOver
5 years

Total

Carrying
Value

7,412

83

3,991

7,651

19,137

19,079

897

757

2,048

1,126

4,828

-

Year ended

Interest Rate Risk

Increase in
Rate

Interest rate on floating
rate borrowings

100 bps31/03/2022

Non Derivatives

31/03/2021

Gain/ (Loss) inStatement ofProfit and Loss
Post Tax

Gain/ (Loss) in
Other Componentsof Equity
Post Tax

Gain/ (Loss) inStatement ofProfit and Loss
Post Tax

Gain/ (Loss) in
Other Componentsof Equity
Post Tax

(60)

-

(61)

-

Decrease in rates by 100 bps will have equal and opposite impact in financial statements.Sensitivity analysis has been
computed by stress testing the interest rates applicable (i.e. USD 6M SOFR, SBI 3M MCLR, PNB 1M MCLR, Repo Rateand
3M T-bill etc.) on the amount of borrowings during the year by assuming all other factors constant.
Derivatives
The Company does have any interest rate hedges oustanding as on the reporting date, accordingly IBOR related impact
on hedge accounting including discounting of other derivatives is not expected to be material.
B

Borrowings (a)Principal Payments

18A, 18B & 21B

Interest Payments
Lease liabilities (b)

2

82

54

130

542

808

342

Supplier’s Credit

19

2,459

-

-

-

2,459

2,456

Trade payables

20

11,015---

11,015

11,015

21A & 21B

1,000

13

-

-

1,013

1,013

22,865

907

6,169

9,319

39,26033,905

3,368

387

10

-

3,765

3,732

31

-

-

-

31

31

3,399

387

10

-

3,796

3,763

Other financial liabilities

Derivatives (net settled)49

Commodity forwards/swaps/options
Currency forwards/options

Liquidity Risk
The Company determines its liquidity requirements in the short, medium and long term. This is done by drawing up cash
forecast for short and medium term requirements and strategic financing plans for long term needs.
The Company manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant
delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate
cash and cash equivalents position. The management has arranged for diversified funding sources and adopted a policy ofmanaging assets with liquidity in mind and monitoring future cash flows and liquidity on a regular basis. Surplus funds not
immediately required are invested in certain financial assets (including mutual funds) which provide flexibility to liquidate
at short notice and are included in current investments and cash equivalents. Besides, it generally has certain undrawn
credit facilities which can be accessed as and when required, which are reviewed periodically.
The Company has developed appropriate internal control systems and contingency plans for managing liquidity risk. This
incorporates an assessment of expected cash flows and availability of alternative sources for additional funding, if required.
(i)		Financing Arrangement
The Company had access to the following undrawn borrowing facilities at the end of the reporting period:(` in Crore)

As atBank Overdraft and other facilities

31/03/2022

31/03/2021

1,642

1,652

Undrawn limit has been calculated based on the available drawing power and sanctioned amount at each reporting
date.
(ii)

Maturity Analysis
The company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all nonderivative financial liabilities and net settled derivative financial instruments. The amounts disclosed in the table are
the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact
of discounting is not significant.

562

HINDALCO INDUSTRIES LIMITED(` in Crore)

Contractual maturities of financial
liabilities as at 31/03/2021

Note
No.

Less than
1 Year

Between
1 and
2 Years

Between
2 and
5 YearsOver
5 years

Total

Carrying
Value

4,757

6,008

2,023

7,202

19,99019,929

731

1,198

1,752

1,086

4,767

-

Non Derivatives
Borrowings (a)Principal Payments

18A, 18B & 21B

Interest Payments
Lease liabilities (b)

2

91

48

95

560

794

311

Supplier’s Credit

9A

255

-

-

-

255

255

Trade payables

20

8,800

-

-

-

8,800

8,800

21A & 21B

937

10

-

-

947

947

15,571

7,264

3,870

8,848

35,55330,242

1,543

365

26

-

1,934

1,932

14

-

-

-

14

13

1,557

365

26

-

1,948

1,945

Other financial liabilities

Derivatives (net settled)
Commodity forwards/swaps/options
Currency forwards/options

49

(a)

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

(b)

Total cash outflow for leases for the year ended 31/03/2022 is ` 225 crore (31/03/2021: ` 181 crore), includes ROU
Lease payment, Short term lease and Low value lease, refer note 18A(d) and 37.

Integrated Annual Report 2021-22563

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(C) Credit Risk(ii)

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meetits contractual obligation.
Credit risk arises from cash and cash equivalents, contractual cash flows of debt investments, favourable derivative
financial instruments and deposits with banks and financial institutions, as well as credit exposures to customers including
outstanding receivables.
Credit risk is managed on an entity level basis. The Company has adopted a policy of dealing only with creditworthy
counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating risk of financial loss fromdefaults. The Company invests only in those instruments issued by high rated banks/ institutions and government agencies.
The Company assesses the credit quality of the customer, taking into account its financial position, past experience andother factors. The Company’s investments in debt instruments and certain loans are considered to have low credit risk.
The credit ratings of the investments are monitored for credit deterioration.
For some trade receivables the Company obtains security in the form of guarantees, deed of undertaking or letters ofcredit which can be called upon if the counterparty is in default under the terms of the agreement.
The Company periodically monitors the recoverability and credit risks of its other financials assets including security
deposits and other receivables. The Company evaluates 12 month expected credit losses for all the financial assets forwhich credit risk has not increased. In case credit risk has increased significantly, the Company considers life time expectedcredit losses for the purpose of impairment provisioning.
The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables basedon a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forwardlooking information. The expected credit loss allowance is based on the ageing of the days for which the receivables aredue and the expected loss rates as given in the provision matrix. The provision matrix at the end of the reporting period
is as follows:(i)

Summary of trade receivables and provision with ageing as at 31-Mar-22

Particulars(` in Crore)

Past dueNot due

1 to 30days

31 to 60days

61 to 120days

121 to 180
days

Over 180
days

Total

Gross carrying amount - Domestic

1,938

133

37

18

6

49

2,181

Gross carrying amount - Export

501

23

1

1

-

1

527

0.00%

0.00%

0.00%

0.00%

0.00%

6.00%

0.11%

Expected credit loss provision

-

-

-

-

-

3

3

Loss allowance - Credit impaired - Export

-

-

-

-

-

1

1

Loss allowance - Credit impaired Domestic

-

-

-

-

-

33

33

Total Provision

-

-

-

-

-

37

37

2,439

156

38

19

6

13

2,671

Expected loss rate

Carrying amount of trade receivables(net of impairment)

Summary of trade receivables and provision with ageing as at 31-Mar-21

Particulars(` in Crore)

Past dueNot due

1 to 30days

31 to 60days

61 to 120days

121 to 180
days

Over 180
days

Total

Gross carrying amount - Domestic

974

176

43

21

40

41

1,295

Gross carrying amount - Export

294

37

7

-

-

1

339

0.00%

0.00%

0.00%

0.00%

0.00%

4.72%

0.12%

Expected credit loss provision

-

-

-

-

-

2

2

Loss allowance - Credit impaired - Export

-

-

-

-

-

1

1

Loss allowance - Credit impaired Domestic

-

-

-

-

-

29

29

Total Provision

-

-

-

-

-

32

32

1,268

213

50

21

40

10

1,602

Expected loss rate

Carrying amount of trade receivables(net of impairment)(iii) Reconciliation of Provision(` in Crore)

Loss allowance as at 31/03/2020

39

changes in loss allowance(7)

Loss allowance as at 31/03/2021

32

changes in loss allowance

5

Loss allowance as at 31/03/2022

37

Of the trade receivables balance as at 31/03/2022, ` 368 crore (as at 31/03/2021, ` 214 crore) is due from a single customer
being the Company’s largest customer. There are no other customers who represent more than 10% of the total balanceof trade receivables.
Financial assets at FVTPL and at FVTOCI: The Company is also exposed to credit risks in relation to financial assets thatare measured at FVTPL or at FVTOCI. The maximum exposure at the end of the reporting period is the carrying amountof these assets.

49. Derivative Financial Instruments:

Refer Note 1B (P) for accounting policy on Financial Instruments
Refer Note 1B (Q) for accounting policy on Derivatives and hedge accounting

The Company uses derivative financial instruments such as forwards, futures, swaps, options etc. to hedge its risks
associated with foreign exchange fluctuation and price risk movements. Risks associated with fluctuation in the price of the
products (copper, aluminium, coal, furnace oil, natural gas, coal tar pitch and precious metals) are minimized by undertaking
appropriate derivative instruments. Derivatives embedded in other contracts are treated as separate derivatives when
their risks and characteristics are not closely related to their host contracts. In some cases, the embedded derivatives may
be designated in a hedge relationship. The fair values of all such derivative financial instruments are recognized as assets
or liabilities at the balance sheet date.
The Company also applies hedge accounting using certain foreign currency non-derivative monetary items which are usedas hedging instruments for hedging foreign exchange risk.

564

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22565

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(A) The Asset and Liability position of various outstanding derivative financial instruments is given below:
Nature of Risk
being Hedged

The maturity profile of hedges taken based on the nature of risk hedged is tabulated below :(` in Crore)

Risk Category

As at31/03/2022
Liability

Asset

Commodity/ Currency Pair

Net Fair
Value

Liability

Asset

Price Risk

Net Fair
Value

Cash flow hedges
Commodity contracts

Price Risk
Component(2,769)13(2,756)

(948)

36

(912)

Foreign currency contracts

Exchange rate
movement risk

(7)

215

208

-

135

135

Commodity contracts

Price Risk
Component

(175)

59

(116)

(99)

285

186

Foreign currency contracts

Exchange rate
movement risk

(12)

1

(11)

(10)

-

(10)

Embedded Derivatives (i)Risk of change
in Fair Valueof unpriced
inventory

(489)

5

(484)

(411)

120

(291)

Commodity contracts

Price Risk
Component

(401)

211

(190)

(495)

37

(458)

Foreign currency contracts

Exchange rate
movement risk

(12)

8

(4)

(3)

2

(1)

(3,865)512(3,353)(1,966)615(1,351)

Exchange Risk

Fair Value Hedge(B)

Aluminium

87%

13%

-

Copper

100%

-

-

Gold

100%

-

-

Silver100%--

USD_INR

82%

8%

10%

EUR_INR

100%

0%

0%

GBP_INR

0%

0%

0%

SGD_INR

0%

0%

0%

EUR_USD

96%

4%

0%
(` in Crore)

As at
31/03/2022

31/03/2021

Weighted
Average
Strike Rate

Notional
Value(in Million)

Fair Value
Gain/(Loss)

Weighted
Average
Strike Rate

Notional
Value(in Million)

Fair Value
Gain/(Loss)

81.22

1,196

380

81.45

1,069

358

Foreign currency forwards
Cash flow hedges
Sell

USD_INR

Total

380

358

Fair Value hedges

Cash flow hedges
Commodity contracts

Price Risk
Component

(387)

2

(385)

(390)

2

(388)

Foreign currency contracts

Exchange rate
movement risk

-

172

172

-

223

223

Buy

Exchange rate
movement risk

Total
Grand Total

-

-

-

-

-

-

(387)

174

(213)

(390)

225

(165)

(4,252)686(3,566)(2,356)840(1,516)

Fair Value net loss of ` 484 crore (31/03/2021 net Loss ` 291 crore) is classified as part of Trade Payables.
The maturity profile for Commodity forwards, Swaps and Options ranges from April 2022 to March 2024, Foreign Exchange
Forwards ranges from April 2022 to March 2025. Hedge Ratio of 1:1 is used by the Company.

HINDALCO INDUSTRIES LIMITEDUSD_INR

76.85

189

Total

(11)

74.45

159

(11)

(10)
(10)

Non-DesignatedNon-designated hedges

566

FY 2025

Currency
Pair

Non - current(i)

FY 2024

Outstanding position and fair value of various foreign exchange derivative financial instruments:

Non-designated hedges

Foreign currency contracts

FY 2023

31/03/2021

Current

Total% of Outstanding Hedges

Buy

EUR_INR

98.96

0

(0)

88.57

6

(1)

Buy

USD_INR

77.04

0

(0)

72.98

28

1

Sell

USD_INR

76.35

182

7

73.07

51

(1)

Buy

SGD_INR

-

-

-

55.85

1

-

Buy

EUR_USD

1.19

16

(11)

-

-

-

Total

(4)

(1)

Grand Total

365

347

Integrated Annual Report 2021-22567

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(C)

Outstanding position and fair value of various foreign exchange non-derivative financial instruments used as hedging instruments:(` in Crore)(` in Crore)

Currency

Weighted
Average
Strike Rate

Quantity

Unit

Notional
value(in millions)

Fair Value
Gain/(Loss)

120,552

MT

1,186

(487)

As at
Note
No.

Currency
Pair

31/03/2022
Averageexchangerate

31/03/2021

Notional
Value(in Million)

Fair Value
Gain/(Loss)

Averageexchange
rate

Notional
Value(in Million)

Embedded derivatives
Fair Value
Gain/(Loss)

Fair Value Hedge

Foreign currency monetary
items
Cash flow hedges
Debt

18B

USD_INR

74.55

185

(25)

73.13

580

11
(ii)

Liability for Copper
Concentrate
Host Liability
Supplier credit

19

USD_INR

75.51

695

(19)

72.84

680

(19)

USD_INR

74.77

324

(39)

-

-

-

Total

(83)

(8)

(D) Outstanding position and fair value of various commodity derivative financial instruments(i)

Outstanding position and fair value of various commodity derivative financial instruments as at 31st Mar, 2022:(` in Crore)

Currency

Weighted
Average
Strike Rate

Quantity

Unit

Notional
value(in millions)

Fair Value
Gain/(Loss)

Commodity Futures/Forwards/Swaps
Cash Flow Hedge
Aluminium

Sell

USD

2,535.15

456,000

MT

1,156(3,141)

Copper

Sell

USD

-

-

MT

-

-

Furnace Oil

Buy

USD

-

-

MT

-

-

Total

(3,141)

Fair Value Hedge
CopperSell

USD

10,551.83

Gold
SilverSell

INR

4,972,320

Sell

USD

23

37,600

MT

397

50

7,543

KGS

37,506(159)

485,904

TOZ

11

Total

(7)
(116)

Non Designated hedges
Aluminium

Buy

USD

3,545.65

32,150

MT

114

(14)

Aluminium

Sell

USD

1,902.34

32,100

MT

61

(386)

CopperBuy

USD

10,156.12

27,400

MT

278

45

Copper

Sell

USD

10,762.54

35,500

MT

382

105

Gold

Buy

INR

5,041,209

4,352

KGS

21,93951

Silver

Buy

USD

24.65

244,244TOZ

6-Silver

Sell

USD

24.37

244,244

TOZ

6

(1)

Furnace Oil

Buy

USD

241.34

3,335

MT

1

10

Furnace Oil

Sell

USD

634.23

3,335

MT

2

Total

568

HINDALCO INDUSTRIES LIMITED(190)

CopperSell

USD

9,838.28

Gold

Sell

USD

1,949.23

29,697TOZ

58

2

Silver

Sell

USD

24.91

371,143

TOZ

9

0

Total

(484)

Grand Total(3,931)

Outstanding position and fair value of various commodity derivative financial instruments as at 31st March, 2021:

Commodity Futures/Forwards/Swaps
Cash Flow Hedge
Aluminium
CopperFurnace Oil
Total
Fair Value Hedge
CopperGold
SilverTotal
Non Designated hedges
Aluminium
Aluminium
CopperCopperGold
SilverSilverFurnace Oil
Furnace Oil
Total
Commodity Options
Cash Flow Hedge
Aluminium
Total
Embedded derivatives
Fair Value Hedge
CopperGold
Silver
Total
Grand Total(` in Crore)

Currency

Weighted
Average
Strike Rate

Quantity

Unit

Notional
value(in millions)

Fair Value
Gain/(Loss)

Sell

USD

1,902.25

547,250MT

1,041(1,307)

Sell
Buy

USD
USD

8,331.38
222.52

5,875
40,000

MT
MT

49
9

(19)
33
(1,293)

Sell
Sell
Sell

USD
INR
USD

8,564.24
4,841,222
24.72

46,325
7,109

MT
KGS
TOZ

397
34,416
26

(76)
260
2
186

Buy
Sell
Buy
Sell
Buy
Buy
Sell
Buy
Sell

USD
USD
USD
USD
INR
USD
USD
USD
USD

2,174.75
1,724.41
8,901.87
8,543.45
4,633,701
26.02
23.88
271.47373.4382,82582,49532,57538,725
4,608
1,037,171
7,446
7,446

MT
MT
MT
MT
KGS
TOZ
TOZ
MT
MT

180
142
290
331
21,352
27
28
2
3

12
(283)
(26)
(71)
(78)
(12)
(5)
5
(458)

Sell

USD

2,200.42

45,000

MT

99

(7)
(7)

Sell
Sell
Sell

USD
USD
USD

8,433.72
1,724.11
26.17

113,831
38,284
498,103

MT
TOZ
TOZ

960
66
13

(302)
5
6
(291)
(1,863)Integrated Annual Report 2021-22569

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(E)

The following table presents details of amount held in Effective portion of Cash Flow Hedge and Cost of Hedging Reserveand the period during which these are going to be released and affecting Statement of Profit and Loss.
(` in Crore)(F)

Gain/(loss) recognized in OCI and recycled:i

The following tables presents the amount of gain/(loss) recognized in Effective portion of Cash Flow Hedge and Cost of
Hedging Reserve and recycled during the financial year 2021-22:

As at(` in Crore)

31/03/2022
Closing
Value Cash
Flow Hedges

Cash Flow Hedges

31/03/2021

ReleaseClosing
Value Cash
Flow Hedges

Within12 Months

After
12 Months

Gain/(Loss)

Gain/(Loss)

Gain/(Loss)(3,132)(2,987)--

ReleaseWithin12 Months

After
12 Months

Gain/(Loss)

Gain/(Loss)

Gain/(Loss)(145)(1,306)(1,001)

(305)

-

(19)

(19)

-

Cash Flow Hedges
Commodity
Forex
Total
Deferred Tax on above
Total

Commodity Forwards/Futures/Swaps
Aluminium
CopperFurnace Oil

-

-

-

33

33

-

(3,132)(2,987)(145)(1,292)

(987)

(305)

Non-Derivative Financial Instruments
Debt

(25)

(25)

-

11

11

-

Host Liability

(29)

(29)

-

5

5

-

Supplier credit

(39)

(39)

-

Liability for Copper Concentrate

Cost of Hedging Reserve
Commodity
Forex
Total
Deferred Tax on above
Total

Foreign currency Forwards
USD_INR

379

207

172

358

135

223

286

114

172

374

151

223

(2,846)(2,873)

27

(918)

(836)

(82)

995

1,004

(9)

322

293

29

(1,851)(1,869)

18

(596)

(543)

(53)

Deferred Tax on above
Total

ii

Opening
Balance

Net Amountrecognised(1,292)
373
(919)
323
(596)

(4,287)(67)(4,354)
1,521(2,833)

Opening
Balance

Net Amountrecognised

15
15
(5)
10

(360)
(360)
126
(234)

Cost of Hedging Reserve

Closing Value
Cost of Hedge
Reserve

ReleaseClosing Value
Cost of Hedge
Reserve

Within12 Months

After
12 Months

Gain/(Loss)

Gain/(Loss)

Gain/(Loss)

(60)

(60)

-

ReleaseWithin12 Months

After
12 Months

Gain/(Loss)

Gain/(Loss)

Gain/(Loss)

Opening
Balance

Net Amountrecognised

-

22

22

-

-

-

-

-

-

-

-

-

(7)

(7)

-

(60)

(60)

-

15

15

-

Cash Flow Hedges
Commodity
Forex
Total
Deferred Tax on above
Total

604
(763)
(159)
57
(102)

(2,574)1,020(1,554)543(1,011)

Opening
Balance

Net Amountrecognised

1
182
183
(64)
119

48
7
55
(19)
36

Commodity Forwards/Swaps
CopperSilverCommodity Options
Aluminium
Deferred Tax on above
Total

570

HINDALCO INDUSTRIES LIMITED

21

21

-

(5)

(5)

-

(39)

(39)

-

10

10

-

Closing
Balance

62
62
(21)
41

(2,446)20(2,426)848(1,578)(3,133)286(2,847)996(1,851)

Recycled
Net Amount
Net Amountto P&L
added toNon-Financial
AssetsTotal
Amountrecycled

Closing
Balance

(285)
(285)
100
(185)

(60)
(60)
21
(39)

(2,508)20(2,488)869(1,619)

(285)
(285)
100
(185)

-

(` in Crore)

As at
31/03/2021

Total
Amountrecycled

The following tables presents the amount of gain/(loss) recognized in Effective portion of Cash Flow Hedge and Cost of
Hedging Reserve and recycled during the financial year 2020-21:(` in Crore)

31/03/2022

Recycled
Net Amount
Net Amountto P&L
added toNon-Financial
AssetsCost of Hedging
Commodity
Forex
Total
Deferred Tax on above
Total

Recycled
Net Amount
Net Amountto P&L
added toNon-Financial
AssetsTotal
Amountrecycled

Closing
Balance

3
(1)
2
(1)
1

(678)
(116)
(794)
277
(517)

(1,292)
373
(919)
323
(596)

Recycled
Net Amount
Net Amountto P&L
added toNon-Financial
AssetsTotal
Amountrecycled

Closing
Balance

34
189
223
(78)
145

15
15
(5)
10

(681)
(115)
(796)
278
(518)

34
189
223
(78)
145

-

Integrated Annual Report 2021-22571

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements(G) The following table presents the amount of gain/ (loss) recycled from Effective portion of Cash Flow Hedge and Cost of
Hedging Reserve and reference of the line item in the Statement of Profit and Loss where those amounts are included:(` in Crore)

Note No.

Note Description

Particulars

Year Ended
31/03/2022

Revenue From Operations

Aluminium Products(2,411)(471)

26

Revenue From Operations

Copper and Copper Products

(203)

(136)

26

Revenue From Operations

Precious Metals

37

Other Expenses

Gain/(Loss) on Derivatives

-

-

(159)

34

(2,773)(573)(H) The adjustment as a part of the carrying value of inventories arising on account of fair value hedges is as follows:(` in Crore)(I)

Relevant line
item in the
Balance sheet

Descriptionof item ofpropertyGrosscarryingvalue

1

Property, plantand equipment

Freehold Land
at Birla Copper-

2

Investment
Property

Freehold Land
at Birla Copper-

3

Investment
Property

Building at
Ahura Centre,
Mumbai7

4

Property, plantand equipment

Freehold Land
at Hirakud unit,
Muri unit and
Kolkata Branch-

5

Property, plantand equipment

Various
Buildings at
Mumbai, Delhi,
Bangalore,
Kolkata,Darjeeling,

10

As at
31/03/2022

Inventory TypeS.
No.

31/03/2021

26

Increase/ (Decrease) in Inventory Value

50 Title deeds of the Immovable Properties pending for transfer as at 31 March 2022 are as are as
follows:

31/03/2021

Raw
Material

WIP andFinished Goods

Total

Raw
Material

WIP andFinished Goods

Total

Copper

487

(48)

439

302

93

395

Gold

(2)

69

67

(5)

(54)

(59)

Silver

-

6

6

(6)

(5)

(11)

485

27

512

291

34

325

Title deeds
held in thename of

Whether title deedholder is a promoter,director or relative ofpromoter/director or
employee of promoter/director

Indogulf
Fertilizer &Chemicals
Corporation
LimitedIndianAluminium
Company
Limited

Property
held since
which
date

No

Since
FY 2002-03

The title deeds of which are held in the name ofIndogulf Fertilizer & Chemicals Corporation Limited(erstwhile Company) which have subsequently
been amalgamated with the Company

No

Since
FY 2004-05

The title deeds of which are held in the name ofIndian Aluminium Company Limited (erstwhile
Company) which have subsequently been
amalgamated with the Company

The Company’s hedging policy only allows for effective hedge relationships to be established. The effective portion ofhedge is recognised in OCI, while ineffective portion of hedge is recognised immediately in the Statement of Profit and
Loss. For Cash flow hedges, the Company uses hypothetical derivative method to assess effectiveness based on “loweroff” assessment.

6

Right of use
AssetsLand at Hirakud
unit andKolkata Branch-

Sources of Hedge ineffectiveness summarised by risk category are as follows :7

Property, plantand equipment

Freehold Landat Kuppam

1

SAPA
Extrusion
India Private
LimitedNo

Since
FY 2021-22

The title deeds are held in the name of the
SAPA Extrusion India Private Limited (erstwhile
Company) which have subsequently been acquiredby the Company. The Company is in process ofregistering the title deed of this land in its name.

8

Property, plantand equipment

Freehold Landat Mahan4

VariousIndividual
Landowners

No

Since
FY 2013-14

Certain original land-related documents held in thename of original landowners were submitted to thebank that had financed the Mahan project. These
original documents are required to be submitted
to the land department in order to get the title
deed registered in the name of the Company .
The Company is awaiting receipt of these originalland-related documents from the bank to initiate
the process of transfer of the title of the land infavour of the Company.

9

Property, plantand equipment

Freehold Land
at Kathotia
Mines

27

VariousIndividual
Landowners

Since
FY 2018-19

Approval of the District collector is awaited which
is a prerequisite as per the Chota Nagpur Tenancy
Act, 1908 to transfer the title deed in the name of
the company. The company is in the process ofobtaining these approvals.

Risk Category

Sources of Hedge IneffectivenessType of Hedge

Price Risk

Critical terms Mismatch

Cash Flow and Fair Value Hedge

Basis Risk

Fair Value Hedge

Credit Risk Adjustment

Cash Flow and Fair Value Hedge

Exchange Risk

Credit Risk Adjustment

Cash Flow Hedge

The amount of gain/ (loss) recognised in the Statement of Profit and Loss on account of hedge ineffectiveness is as follows:(` in Crore)

Year Ended

(J)

572

Reason for not being held in the name of theCompany

Note No.

Note Description

Note Description

Type of Hedge

31/03/2022

31/03/2021

37

Other Expenses

Gain/(Loss) on Derivatives

Cash Flow Hedges

(162)

(111)

37

Other Expenses

Gain/(Loss) on Derivatives

Fair Value Hedges

(130)

(33)

(292)

(144)

No

Certain hedges of forecast sale transaction for hedging currency risk were discontinued during the year since the hedged
forecast transaction was not expected to occur.

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22573

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
Title deeds of the Immovable Properties pending for transfer as at 31 March 2021 are as are as follows:
S.
No.

Relevant line
item in the
Balance sheet

Description ofitem of property

Grosscarryingvalue

1

Property, plantand equipment

Freehold Land at
Birla Copper-

2

Investment
Property

Freehold Land at
Birla Copper-

3

Investment
Property

Building at Ahura
Centre, Mumbai

7

4

Property, plantand equipment

Freehold Land at
Hirakud unit, Muri
unit and Kolkata
Branch-5Property, plantand equipment

Various Buildings
at Mumbai,
Delhi, Bangalore,
Kolkata,Darjeeling,

10

6

Right of use
AssetsLand at Hirakud
unit and Kolkata
Branch-7

Property, plantand equipment

Freehold Land at
Mahan

4

8

Property, plantand equipment

Freehold Land at
Kathotia Mines

27

Title deeds
held in thename of

Whether title deedholder is a promoter,director or relative ofpromoter/director or
employee of promoter/director

Indogulf
Fertilizer &Chemicals
Corporation
LimitedIndianAluminium
Company
LimitedVariousIndividual

VariousIndividual

No

No

No

No

Property
held since
which dateReason for not being held in the name of theCompanySince
FY 2002-03

Since
FY 2004-05

Since
FY 2013-14

Since
FY 2018-19

The title deeds of which are held in the name ofIndogulf Fertilizer & Chemicals Corporation Limited(erstwhile Company) which have subsequently been
amalgamated with the Company

The title deeds of which are held in the name of Indian
Aluminium Company Limited (erstwhile Company)
which have subsequently been amalgamated with
the Company

Certain original land-related documents held in thename of original landowners were submitted to thebank that had financed the Mahan project. These
original documents are required to be submitted to
the land department in order to get the title deedregistered in the name of the Company. The Company
is awaiting receipt of these original land-related
documents from the bank to initiate the process oftransfer of the title of the land in favour of the Company.
Approval of the District collector is awaited which
is a prerequisite as per the Chota Nagpur Tenancy
Act, 1908 to transfer the title deed in the name of thecompany. The company is in the process of obtaining
these approvals.

Disclosure related to relationship of the Company with a company which is Struck off under Section 248 of the Companies Act,
2013 or Section 530 of Companies Act, 1956 as at 31 March 2022 are as follows:
S.
No.

Name of struck off Company

Nature oftransactions
with struck-off
Company

Balanceoutstanding as
at 31 March 2022

Balanceoutstanding as
at 31 March 2021

Relationship with
the Struck off
company, if any,
to be disclosed

1

Daga Nylomet Private Limited

Sale of Goods andServices1

1

Not a related party

2

Gapscib Trading Private Limited

Sale of Goods andServices22

Not a related party

HINDALCO INDUSTRIES LIMITED

Name of struck off Company

Nature oftransactions
with struck-off
Company

Balanceoutstanding as
at 31 March 2022

Balanceoutstanding as
at 31 March 2021

Relationship with
the Struck off
company, if any,
to be disclosed

Payables

51 Relationship with struck off companies

574

S.
No.

1

KNOP Trading Company Private Limited

Purchase of Goods
and Services--

Not a related party

2

Saturn Mining & Exploration Private Limited

Purchase of Goods
and Services--

Not a related party

3

Agngreen Pest Control Services Private Limited

Purchase of Goods
and Services--

Not a related party

4

Black Bird E-Solutions Private Limited

Purchase of Goods
and Services--

Not a related party

5

Singhal Bricks Private Limited

Purchase of Goods
and Services--

Not a related party

6

Sonebhadra Automobiles Private Limited

Purchase of Goods
and Services--

Not a related party

Other Outstanding balances
1

Apple Insulated Wires Private Limited

Contract liability--

Not a related party

2

Payal Synthetics Private Limited

Contract liability--

Not a related party

3

Tecon Surface Coating & Engineering Private
LimitedContract liability--

Not a related party

52. Gare Palma IV/4 (GP-4), Gare Palma IV/5 (GP-5) and Kathautia coal mines were acquired by the Company through auction

conducted by the Nominated Authority (NA) constituted under the Ministry of Coal, Government of India. The Company was
required to achieve certain efficiency parameters and reach their Peak Rated Capacity (PRC) during FY 2015-16. Performance
security in the form of Performance Bank Guarantees (PBG) of ` 318 crore (for GP-4), ` 369 crore (for GP-5) and ` 267 crore(for Kathautia) were provided by the Company to NA in this regard.
Due to the various delays on the part of Government Authorities, PRC was achieved by the Company for GP-4 and GP-5
during FY 2016-17 and for Kathautia during FY 2017-18. Having satisfied itself about achievement of efficiency parameters/
PRC, NA returned the PBG in respect of GP-4 on June 19, 2017. However, in a volte face action, vide a letter dated 25th April,
2018, NA imposed a penalty equal to 20% of PBG amounting to ` 64 crore for GP-4, ` 74 crore for GP-5 and ` 118 crore for
Kathautia (refer note 10). As the PBG for GP-5 and Kathautia was still with NA, it also appropriated an amount equal to thepenalty from the PBG of the respective mines.
The above actions were contested by the Company. The Hon’ble Chhattisgarh High Court at Bilaspur has already given its
judgment in favour of the Company in the matter related to GP-5. As per the judgment, Hon’ble High Court has asked NA
to refund the amount appropriated by them and return the PBG to the Company. The NA has filed an appeal before the
Hon’ble Supreme Court which has not been taken up for hearing yet. The Company’s appeal to quash the demand raisedby NA in case of GP-4 and Kathautia is yet to be decided and is pending before the Mines Tribunal at Bilaspur and Ranchi
respectively.

Integrated Annual Report 2021-22575

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
53. Acquisition of Kuppam unit of SAPA Extrusions India Private Limited (considered as Business
Combination)

Revenue and profit contribution

Refer Note 1A (AA) for accounting policy on Business Combination

Since the acquisition date, Extrusion Business operations included in the Financial Statements for the year ended March
31, 2022 comprises of Revenue of ` 66 crore and Net Profit before tax of ` 5 crore.

On February 1, 2022, Hindalco has completed acquisition of Extrusion business of SAPA Extrusion India Private Limited, amanufacturer of high end extrusion products, pursuant to a Business Transfer Agreement (BTA) dated December 17, 2021.
The Kuppam facility’s specialised product portfolio will enhance the Company’s capabilities in high-end extrusions.

The following supplemental pro forma financial information presents the Company results of operations as of March 31,
2022 as if the acquisition of Extrusion business had occurred on April 1, 2021.
(` in Crore)

Details of purchase consideration, the net assets acquired and goodwill are as follows:Year ended
31/03/2022(` in Crore)

Total amount paid

265

Revenue from Operations

Total purchase consideration as per Ind AS 103

265

Profit for the year

The Purchase Price Allocations (PPA) were made to the assets acquired and liabilities assumed based on the estimatedfair values at the date of acquisition. The excess of the purchase price over the fair value of the net assets acquired wasallocated to goodwill.
The assets and liabilities recognised as a result of the acquisition as at March 31, 2022 are as follows:
Amountas at 31/03/2022a)the additional depreciation and amortisation that would have been charged assuming the fair value adjustments toproperty, plant and equipment and intangible assets had applied from 1 April 2021, together with the consequential
tax effects.

b)acquisition-related transaction costs and other one-time costs directly attributable to the acquisition reflected as if
they occurred at the beginning of the annual reporting period.

Property Plant and Equipment (including CWIP)

133

Intangible assets

23

Inventories

60

Trade Receivables

43

Other Assets

39

Acquisition-related costs

Total Assets - (A)298

Trade Payables

29

Acquisition-related costs of ` 6 crore that were not directly attributable to the acquisition are included in Other Expenses
in the Statement of Profit and Loss and in operating cash flows in the statement of cash flows.

Provisions

4

Other Liabilities

4

Liabilities - (B)37

Net identifiable assets acquired (A-B)

261

Calculation of goodwill
Consideration transferred

265

Less: Net identifiable assets acquired(261)

Goodwill

4

The above fair values of assets acquired and liabilities assumed are final as of March 31, 2022. The fair values of the assets
acquired and liabilities assumed were determined using the income and cost approach. In many cases, the determinationof the fair values required estimates about discount rates, future expected cash flows and other future events that are
judgmental and subject to change. The fair value measurements are primarily based on significant inputs that are notobservable in the market and thus represent a Level 3 measurement of the fair value hierarchy as defined in Ind AS 113, Fair
Value Measurements (“Ind AS 113”). Intangible assets consists of Customer Relationships valued using ‘With and Without/incremental Cash flow method’ and Technical Know How are valued using the ‘Relief From Royalty method’. A cost andmarket approach has been applied, as appropriate, for Property, Plant and Equipment.
576

5,531

The pro forma financial information reflects pro forma adjustments to present the combined pro forma results of operations
as if the acquisition had occurred on April 1, 2021 to give effect to certain events the Company believes to be directly
attributable to the acquisition. These pro forma adjustments primarily include:(` in Crore)

Net Assets acquired

67,988HINDALCO INDUSTRIES LIMITED(` in Crore)

Purchase consideration - cash outflow

Year ended
31/03/2022

Outflow of cash required to acquire Extrusion Business

265

54 Financials Ratio Analysis:
Particulars

Times/ %

Note

As at
31/03/2022

31/03/2021

Change in %(a) Current Ratio

Times

1.75

1.52

15.16%(b) Debt-Equity Ratio

Times

0.36

0.40

-11.74%(c) Debt Service Coverage Ratio

Times

(i)

7.83

3.17

147.06%(d) Return on Equity Ratio

%

(ii)

11%

2%

407.19%(e) Inventory turnover ratio

Times

3.66

3.14

16.73%(f) Trade Receivables turnover ratio

Times

31.67

23.11

37.01%(g) Trade payables turnover ratio

Times

5.60

5.15

8.91%

(h) Net capital turnover ratio

Times

4.08

4.45

-8.41%(iii)(i) Net profit ratio

%

(iv)

8%

2%

250.05%(j) Return on Capital employed

%

(v)

13%

4%

205.65%(k) Return on investment

%

(vi)

11%

4%

191.55%Integrated Annual Report 2021-22577

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statements
Description of ratios:i)Gross amount required to be spent by the company during the year is ` 24 crore.

(a)Current Ratio: Current Assets/Current Liabilities excluding Current Maturities of Long term Borrowingsii)

Amount spent during the year(b)

Debt-Equity Ratio: (Borrowings + Lease Liabilities)/ Total Equity(c)

Debt Service Coverage Ratio: Profit before Depreciation, Amortisation, Impairment Loss on Non-Current Assets, Finance
Cost and Tax)/ (Finance Cost (net of capitalization) + Scheduled Principal Repayment (Excluding Prepayment))(` in Crore)(d)Return on Equity Ratio: Profit after tax/ Average shareholder equity(e)Inventory turnover ratio: Revenue from Operations/Average Inventory(f)Trade Receivables turnover ratio: Revenue from Operations /Average Trade Receivable(g)

Trade payables turnover ratio: Purchases of Raw Material and traded purchases/ Average Trade Payable related to Raw
Material and traded purchases(h)Net capital turnover ratio: Revenue from Operations/ Working Capital excluding Current Maturities of Long term Borrowings(i)

Net profit ratio: Profit after tax/ Revenue from Operations(j)Return on Capital employed: Earnings before interest and taxes/ Capital Employed (Tangible Net worth + Total Debt +Deferred Tax liability)(k)

Return on investment: Earnings before interest and tax/ Average total assets

Particulars

iii)

(ii)

Increase in this ratio is mainly on account of increase in net profit available to equity shareholders in the current year.

-

1b) On purposes other than (a) above

38

39

Total

38

40

Assets are not in the books of the Company

Details of excess amount spent under Section 135(5) of the Companies Act, 2013(` in Crore)

Particulars

Clarification for changes
Ratio improved majorly due to increase in profit on account of higher revenue from operation in the current year.

31/03/2021a) Construction/ acquisition of any asset^^(i)

31/03/2022

31/03/2022

31/03/2021

Opening Balance excess spent

12-

Amount required to be spent during the year

24

27

Amount spent during the year

38

40

CSR expenses claimed in Current year26

28

Closing Balance excess spent

24

12

iv)

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

(iv) Net profit ratio has improved mainly on account of increase in profits due to higher margins contributed by increase involume and higher realization on sales.

v)

The contribution to a trust controlled by the company in relation to CSR expenditure is Hindalco Jan Seva Trust amounting
to ` 1 crore (year ended 31/03/2021 ` 6 crore).

(v)

vi)

There is no provision made with respect to a liability incurred by entering into a contractual obligation during the current
year.

B.

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

Details of investments made have been given as part of Note ‘5’ Investments in Subsidiary, Note ‘6’ Investments in
Associates and Joint Ventures and Note ‘7A and 7B’ Other Investments.

ii.

Loans and Financial Guarantees given below:(iii) Increase in this ratio is mainly on account of higher revenue from operations during the year.

Ratio improved majorly due to majorly due to increase in net profit during the year.

(vi) Increase in this ratio is mainly on account of increase in earnings before interest and tax majorly due to increase in volume
and higher realization on sales.

55 The following entities are consolidated in Standalone Financial Statements:
Name of the Entity

Relationship% of HoldingCountry ofIncorporation

Mahan Coal Limited

Joint Control Operation *

50%

India

Tubed Coal Mines Limited

Joint Control Operation *

60%

India

Trident Trust

Trust controlled by the Company

#

India

Hindalco Employee Welfare Trust

Trust controlled by the Company

#

India

# Treasury Shares are held in Trusts whose sole beneficiary is Hindalco Industries Limited, refer note 16 for further details.
* The proportionate share of total assets and total comprehensive income in the above joint operations are consolidated in standalone financial statements.

56 Additional InformationA.

578

As per Section135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least
2% of its average net profit for the immediately preceding three financial years on Corporate social Responsibility (CSR)
activities. A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to a
corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

HINDALCO INDUSTRIES LIMITED(` in Crore)

Name of the Company

Relationship

Nature ofTransaction

As at
31/03/2022

31/03/2021

Details of Loans
Aditya Birla Science and Technology Company Private Limited

Associate

Loan

36

41

Suvas Holding Limited

Subsidiary

Loan

5

8

Birla Copper Asoj Private Limited (formerly known as Ryker
Base Private Limited)

Subsidiary

Loan

164

-

Subsidiary

Performance
Guarantee

55Details of Guarantee
Dahej Harbour and Infrastructure Limited

Integrated Annual Report 2021-22579

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Notes

forming part of the Standalone Financial Statementsiii.

Disclosure relating to amount outstanding at year end and maximum outstanding during the year of loans and advances,in nature of loan, required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, are given
below:

57. During the financial year ended March 31, 2022, the Company has reclassified following comparatives. These reclassifications

are primarily to conform to the current years classification, which do not have material impact on the Standalone Financial
Statements.

(` in Crore)

Name of the Company

As at31/03/2022

Maximum
outstanding
during FY 2021-22

As at
31/03/2021

41

41

Maximum
outstanding
during FY 2020-21(` in Crore)

Note No.
a)

Associate:
Aditya Birla Science and Technology Company
Private Limited

36

46

Subsidiaries:
Suvas Holding Limited
Birla Copper Asoj Private Limited(formerly known as Ryker Base Private Limited)

5

8

8

9

164

200

-

-

C.

Additional disclosures required under Schedule III are as follows:i)

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

ii)

Hindalco Industries limited have not been declared wilful defaulter by any bank or financial institution or government or
any government authority.

iii)

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

iv)

There is no undisclosed income under the Income Tax Act, 1961 for the year ending 31st March 2022 and 31st March 2021
which needs to be recorded in the books of account.

v)

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

vi)

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

b)Note Description

Previously

Revised Amount

ChangeBalance Sheet
21B

Other financial liabilities (current)

1,402

937

(465)

18B

Current borrowings

4,290

4,755

465

Statement of Profit and Loss
28

Cost of Materials Consumed

27,324

27,178(146)

37

Other Expenses

4,361

4,507

146

For and on behalf of the Board of Hindalco Industries Limited
As per our report annexed
For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/ E-300009
Sarah George
PartnerMembership No. 045255

Praveen Kumar Maheshwari
Whole-time Director &Chief Financial Officer
DIN-00174361

Satish Pai
Managing Director
DIN-06646758

Anil MalikCompany Secretary

K N Bhandari
Director
DIN No.: 00026078

Place : Mumbai
Dated : May 26, 2022vii) There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory
period.
viii) Utilisation of borrowed funds and share premium.
A)

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall: a. directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of the group (Ultimate Beneficiaries)
orb. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

B)

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:a. directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party(Ultimate Beneficiaries) orb. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

ix)

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

x)

The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statementsof current assets filed by the Company with banks are in agreement with the books of accounts except incase of quarter
ended March 31, 2022 where the Company has filed provisional statement with the bank and the final statement will be
submitted to the bank after finalization of the audited financial statements.

580

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22581

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial StatementsI ndependent Assurance Statement
on Integrated Report
Ernst & Young Associates LLP
5th Floor, Block B-2
Nirlon Knowledge Park
Off. Western Express Highway
Goregaon (E), Mumbai - 400 063, India

Tel: +91 22 6192 0000
Fax: +9 22 6192 3000
ey.comIndependent Assurance Statement

The Management and Board of Directors
Hindalco Industries Limited,

Our Independence and Quality Control
We have maintained our independence and confirm that we have met the requirements of the Code of
Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants,
and have the required competencies and experience to conduct this assurance engagement
EY also applies International Standard on Quality Control 1, Quality Control for Firms that Perform Audits
and Reviews of Financial Statements, and Other Assurance and Related Services Engagements, andaccordingly maintains a comprehensive system of quality control including documented policies andprocedures regarding compliance with ethical requirements, professional standards, and applicable legal
and regulatory requirements.

Mumbai, India
Scope
Ernst & Young Associates LLP (EYA LLP) have been engaged by Hindalco Industries Limited to perform a‘Type 1 Moderate’ level of assurance, as defined by AccountAbility Assurance Standard (AA1000 AS v3)
and Limited Assurance, as defined by International Standards on Assurance Engagements (ISAE 3000),
hereafter referred to as the engagement, for Hindalco Industries Limited’s Sustainability data in Integrated
Report FY22, prepared as per the <IR> Integrated Reporting Framework by International Integrated
Reporting Council (IIRC) , (the “Subject Matter”) for the period from 01st April 2021 to 31st March 2022.
Other than as described in the preceding paragraph, which sets out the scope of our engagement, we did
not perform assurance procedures on the remaining information included in the Report, and accordingly,
we do not express a conclusion on this information.
Criteria applied by Hindalco Industries Limited
In preparing the Integrated Report FY 22, Hindalco Industries Limited applied, the <IR> Integrated
Reporting Framework by International Integrated Reporting Council (IIRC) and Global Reporting Initiative(GRI) 2021 Standards, specifically designed for Integrated Report FY22; As a result, the subject matter
information may not be suitable for another purpose.

Hindalco Industries Limited’s Responsibilities
Hindalco Industries Limited management is responsible for selecting the Criteria, and for presenting thedue to fraud or error.

Description of procedures performed
Procedures performed in a limited assurance engagement vary in nature and timing from and are less inextent than for a reasonable assurance engagement. Consequently, the level of assurance obtained in alimited assurance engagement is substantially lower than the assurance that would have been obtained
had a reasonable assurance engagement been performed. Our procedures were designed to obtain alimited level of assurance on which to base our conclusion and do not provide all the evidence that would
be required to provide a reasonable level of assurance.
Although we considered the effectiveness of management’s internal controls when determining the natureand extent of our procedures, our assurance engagement was not designed to provide assurance oninternal controls. Our procedures did not include testing controls or performing procedures relating tochecking aggregation or calculation of data within IT systems.
A limited assurance engagement consists of making enquiries, primarily of persons responsible forpreparing the sustainability report and related information and applying analytical and other appropriate
procedures
Our procedures included:••••

EY’s Responsibilities
Our responsibility is to express a conclusion on the presentation of the Subject Matter based on theevidence we have obtained.
We conducted our engagement in accordance with the International Standard for Assurance
Engagements Other Than Audits or Reviews of Historical Financial Information (‘ISAE 3000’), and third
edition of AccountAbility’s AA1000 Assurance Standard (AA1000 AS v3). The terms of reference forthis engagement as agreed with Hindalco Industries Limited on 20th March 2020. Those standards
require that we plan and perform our engagement to obtain ‘Type 1, Moderate’ level of assurance (asper AA1000 AS v3) whether, in all material respects, the Subject Matter is presented in accordancewith the Criteria, and to issue a report. The nature, timing, and extent of the procedures selected depend
on our judgment, including an assessment of the risk of material misstatement, whether due to fraud or
error.
We believe that the evidence obtained is sufficient and appropriate to provide a basis for our limited
assurance conclusions.

582

HINDALCO INDUSTRIES LIMITED•

Conducted interviews with select personnel at manufacturing units and corporate teams tounderstand the process for collecting, collating and reporting the subject matter as per
Global Reporting Initiative (GRI) Standards;
Checked that the calculation criteria have been correctly applied in accordance with themethodologies outlined in the Criteria;
Undertook analytical review procedures to support the reasonableness of the data
Verification of sample data and related information through virtual consultations with site team and,desk reviews of the following locations:o Aditya Aluminumo Bagru mine cluster (Bagru, Bhusar, Hisri old and Hisri new)o Muri workso Taloja Unito Birla Copper
Review of data on sample basis, of the entities listed above pertaining to the following specificdisclosures of the GRI Standards:
o General Disclosures (102-1 to 102-56)
o Environmental Indicators: Materials (301-1, 301-2), Energy (302-1, 302-3, 302-4), Water andEffluents (303-1, 303-2, 303-3, 303-4, 303-5), Biodiversity (304-1, 304-2, 304-3, 304-4),
Emissions (305-1, 305-2, 305-4, 305-5, 305-6, 305-7), Waste (306-1, 306-2, 306-3, 306-4,
306-5), Supplier Environmental Assessment (308-1)
o Social Indicators: Employment (401-1, 401-2, 401-3), Labor/Management Relations (402-1),
Occupational Health and Safety (403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7, 403-8,
403-9, 403-10), Training and Education (404-1, 404-2, 404-3), Diversity and Equal

Integrated Annual Report 2021-22583

Corporate Overview

Strategic Overview

Our Capitals

Statutory Reports

Financial Statements

Independent Assurance Statement on Integrated Report

Opportunity (405-1, 405-2), Non-discrimination (406-1), Freedom of Association andCollective Bargaining (407-1), Child Labor (408-1), Forced or Compulsory Labor (409-1),
Security Practices (410-1), Human Rights Assessment (412-1, 412-2), Local Communities(413-1), Supplier Social Assessment (414-1), Customer Health and Safety (416-1),
Marketing and Labeling (417-1)••••

Restricted useo This report is intended solely for the information and use of Hindalco Industries Limited and is notintended to be and should not be used by anyone other than Hindalco Industries Limited.

Execution of an audit trail of claims and data streams, on a selective test basis, to determine thelevel of accuracy in collection, transcription and aggregation processes followed.
Review of the Company's plans, policies and practices, pertaining to their social, environment andsustainable development, so as to be able to make comments on the fairness of reporting.
Review of the Company's approach towards materiality assessment disclosed in the Report toidentify relevant issues
Review of select qualitative statements in various sections of the Integrated Report FY22
We also performed such other procedures as we considered necessary in the circumstances

Emphasis of matter
The assurance scope excludes:• Data and information outside the defined reporting period (1st April 2021 to 31st March 2022)• Data and information on economic and financial performance of the Company• Data, statements and claims already available in the public domain through Annual Report,
Integrated Report, or other sources available in the public domain• The Company's statements that describe the expression of opinion, belief, inference, aspiration,
expectation, aim or future intention provided by the Company• The Company’s compliance with regulations, acts, guidelines with respect to various regulatory
agencies and other legal matters

Chaitanya Kalia
Engagement Partner
27th July 2022
Mumbai, India

Our Conclusion
On the basis of our review scope and methodology to obtain ‘Type 1, Moderate’ level of assurance (as per AA1000
AS v3) our conclusions are as follows:
o

o

o
o

Inclusivity: The Company has described its stakeholder engagement approach and activities
in the Report. We are not aware of any matter that would lead us to conclude that the Company
has not applied the principle of inclusivity in engaging with the key stakeholder groups identified
in the Report.
Materiality: The Company has identified key issues material to its ability to create value andhas described the process for materiality analysis in the Report. Nothing has come to ourattention that causes us to believe that material issues so identified have been excluded fromthe Report by the Company.
Responsiveness: We are not aware of any matter that would lead us to believe that theCompany has not applied the responsiveness principle in its engagement with stakeholders
identified in the Report on material aspects covering its sustainability performance.
Impact: As per the information provided to us, we are not aware of any matter that would lead
us to conclude that the criteria related to the impact principle has not been applied for the key
stakeholders.

Based on our procedures and the evidence obtained, we are not aware of any material modifications
that should be made to the Integrated Report FY 22 for the period from 01st April 2021 to 31st March
2022, in order for it to be in accordance with the <IR> Integrated Reporting Framework of International
Integrated Reporting Council (IIRC) and GRI 2021 Standards.

585

HINDALCO INDUSTRIES LIMITED

Integrated Annual Report 2021-22

586

Hindalco Industries Limited
Registered Office:
Ahura Centre, 1st Floor, B Wing, Mahakali Caves Road, A ndheri (East), Mumbai-400 093.
Tel: (91-22) 6691 7000 | Fax: (91-22) 6691 7001
E-mail: hilinvestors@adityabirla.com
Website: www.hindalco.com
CIN No. L27020MH1958PLC011238