Dear Members,

We share with you our 59^th annual report, together with the audited financial statements for the year ending March 31, 2025.

Your Directors are pleased to inform you that Hindustan Zinc has demonstrated commendable overall performance with robust operational metrics and improved ESG foothold through emphasis on safety-first culture and responsible business activities, supported by regular stakeholder engagement. With this multi-faceted proactive approach towards its hyperopic strategy, the Company has shown resilience against the strong market headwinds.

I. KEY BUSINESS, OPERATIONS AND FINANCIAL PERFORMANCE

Company Overview

Hindustan Zinc Limited (“Hindustan Zinc” or “Company”), a subsidiary of Vedanta Limited, is the world's largest and India's only integrated zinc producer and is amongst the top 5 silver producers globally. With operational facilities located in the states of Rajasthan and Uttarakhand, the Company is headquartered in Udaipur, India.

Hindustan Zinc has a robust portfolio of products including zinc, lead and silver, and value-added products including continuous galvanising grade (CGG), special high grade (SHG) jumbos and other die-cast alloys. With more than 50 years of operational experience, the Company's steadfast focus remains on delivery and enhancing stakeholder's value through exploration, responsible mining and operational excellence while prioritising the safety of our people and conservation of scarce natural resources through technology and innovation.

With a total R&R base of 453.2 million tonnes and an average zinc- lead grade of c.7%, the Company's mine life is over 25 years and our fully integrated zinc operations currently hold c.77% market share in India's primary zinc industry.

Uniquely Positioned in the Metals and Mining Landscape

Business Highlights

Your Company maintained exceptional performance throughout the year, achieving significant operational milestones. Ore production for the full year was 16.33 million tonnes, and mined metal production recorded its historic high of 1,095 kt, up 1% YoY, driven by improved mined metal grades and mills recovery. Mine development as required for catering to the production requirements and securing future resource base, stood at 96 km for the year.

The Company has achieved its ever highest refined metal production of 1,052 kt, supported by strong mined metal production, better plant availability and operations parameters. The saleable silver production stood at 687 MT during the year.

Key Operational Highlights

Historic high annual mined metal production of 1,095 kt, up 1% YoY

Highest ever annual refined metal production of 1,052 kt, up 2% YoY

4-year lowest zinc cost of production (COP) of US$ 1,052 per MT, better 6% YoY

Saleable silver production of 687 MT, down 8% YoY

Key Financial Highlights

Second-highest revenue from operations of ' 34,083 crore, up 18% YoY

Second best EBITDA of ' 17,465 crore, up 28% YoY

Second ever-highest profit after taxes of ' 10,353 crore, up 33% YoY

Industry-best return on capital employed and return on equity of 58% and 73%, respectively

Operational Performance:

Production

For the full year, ore production was at 16.33 million tonnes, marginally down YoY, on account of lower production at Rajpura Dariba, Sindesar Khurd & Rampura Agucha mines which were down 13%, 3% and 3% respectively, partly offset by strong production growth at Zawar & Kayad, which were up 4% and 23% respectively. FY2025 saw the best-ever mined metal production of 1,095 kt compared to 1,079 kt in the previous year, driven by improved mined metal grades and mills recovery.

For the full year, we saw our highest metal production at 1,052 kt in line with consistent mined metal flow from mines, better plant availability and other operational parameters, while silver production was down 8% at 687 MT, impacted by change in mining sequence and lower silver input from Sindesar Khurd mine in line with mine grade.

The Company generated 4,033 million units of thermal based power in FY2025. Total green power generation was 667 million units as compared to 696 million units in FY2024. The Company has also sourced 307 million units of renewable energy from Serentica Renewables India Pvt. Ltd., taking the renewable energy share to c.13% of the overall power requirement during the year.

Sales

During the year, the Company achieved its highest ever domestic refined zinc metal sales of 603 kt as against 580 kt last year, up 4%, taking the domestic primary zinc market share to c.77%, while export sales for the year stood at 225 kt as compared to 238 kt a year ago. The aggregate sales increased by 1% as compared to the previous year, in line with the production. Lead metal sales in the domestic market were 166 kt, while export sales were 59 kt leading to increase in aggregate sales by 4% from a year ago, in line with the increase in lead metal production. Silver sales were 687 MT in FY2025, almost all in the domestic market.

Consolidated Financial Performance

Details of the Company's annual financial performance as published on the Company's website and presented during the Analyst Meet, after declaration of annual results, can be accessed using the following link: https://www. hzlindia.com/wp-content/uploads/Results-Presentation- Q4FY25 v10.pdf

Revenue

The Company reported ‘revenue from operations' including other operating income of Rs. 34,083 crore, an increase of 18% YoY primarily on account of higher metal volume, better zinc and silver prices, gains from strategic hedging initiative, and favourable exchange rate partly offset by lower lead prices & lower silver volume.

The ‘other income' was Rs. 983 crore during the year compared to Rs. 1,074 crore in the previous year.

Production Cost

Zinc's cost of production (COP), excluding royalty for FY2025 was Rs. 88,960 (US$ 1,052) per tonne, lower by 4% YoY (in Rs. terms). The full-year COP showed significant improvement, primarily driven by better overall metal grades, higher by-product sales, and softened coal and input commodity prices. Enhanced domestic coal materialisation and an increased supply of renewable energy further contributed to this positive outcome.

Operating margin

The above revenue and production cost resulted in profit before depreciation, interest and tax (PBDIT) of Rs. 18,371 crore in FY2025, up by 25% on account of higher metal volume, better zinc and silver prices, gains from strategic hedging initiative and favourable exchange rate partly offset by lower lead prices & lower silver volume.

Net profit

Net profit was Rs. 10,353 crore, up 33% YoY mainly on account of higher PBDIT and a lower effective tax rate of 23.6% vs 24.7% driven by one time reversal of tax provisions, partly offset by higher depreciation & amortisation, interest expense and exceptional items.

Earnings Per Share (EPS)

The EPS for the year was ' 24.50 per share as compared to ' 18.36 per share in FY2024.

Cash Flows

(' in crore)

* Includes Cash & Equivalents (refer Note 11 of the Audited Financial Statements), other bank balances excluding earmarked unpaid dividend accounts balance (refer Note 12 of the Audited Financial Statements) and Current & Non-Current Treasury Investments (refer Note 9 of the Audited Financial Statements)

** Earnings before Interest, Tax, Depreciation and Amortisation expenses and Income on investments

Gross Working Capital

Gross working capital represented by inventory, trade receivables and other current assets decreased from ' 2,516 crore to ' 2,257 crore as of March 31, 2025, primarily due to decrease in other current assets and trade receivables. The working capital cycle was 25 days in FY2025 as compared to 33 days in FY2024.

Gross Block

The gross block during the year increased from ' 43,684 crore to ' 48,425 crore. This was largely due to the ongoing mining projects and other sustaining capex.

Capital Employed

The total capital employed as of March 31, 2025, was ' 14,495 crore, as compared to ' 13,465 crore at the end of previous fiscal year.

Refer page 101 for description Projects and Expansion Plan

As Hindustan Zinc advances in the journey towards 2 Mtpa integrated metal expansion, several projects have been undertaken throughout the year:

A 160 ktpa roaster project at Debari is expected to be commissioned in July 2025, further enhancing the metal volume

The cellhouse debottlenecking project to enhance the metal capacity by 21 ktpa is in progress with completion targeted by Q2FY26 for Dariba Smelting Complex and Q3FY26 for Chanderiya Lead-Zinc Smelter

A lead-silver recovery plant based on hot acid leaching technology is under progress in Dariba, which enables an additional recovery of 27 MTPA silver and its commissioning is expected by Q4FY26

Work on 510 ktpa fertiliser plant in Chanderiya is under progress and the project is targeted to be completed by Q1FY27

The Company has also received requisite regulatory approvals for Bamnia Kalan Mines in the previous year and site work started in June 2024. The peripheral boundary wall work is completed and excavation work is under progress Board approved a major expansion project to enhance the integrated refined metal capacity by 250 ktpa in June 2025. This expansion includes establishing a new integrated smelter with 250 ktpa capacity in Debari, along with a leaching and purification plant, a cell house, an additional 160 ktpa roaster, melting & casting, and other required infrastructure. The plan also involves concentrator expansion, several debottlenecking projects, and mining development capabilities to boost capacity and enhance mining and milling infrastructure

Dividend Distribution Policy and Dividend

During FY2025, the Company declared two interim dividends amounting to ' 12,253 crore, details of which are as under:

The Dividend Distribution Policy, in terms of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) is available on the Company's website on https://www.hzlindia.com/wp-content/uploads/ Dividend-Policy-2016.pdf.

Credit Rating and Liquidity

CRISIL has reaffirmed the Company's long-term rating of AAA/Stable and short-term rating of A1+. The ratings continue to reflect the Company's low-cost operations, strong market position, efficient and integrated operations, high reserve & resource, and a strong balance sheet.

The Company follows a conservative investment policy and invests in high quality debt instruments. As on March 31, 2025, the Company's gross investments and cash & cash equivalents were ' 9,482 crore.

Contribution to the Government Treasury

The Company has contributed ' 18,963 crore during FY2025, in terms of royalties, dividend and taxes to the Government treasury.

II. SUSTAINABILITY GOALS AND HIGHLIGHTS ESG Highlights

Biodiversity Conservation

¦ Plantation of 0.74 million saplings in last 5 years, 70,000 planted this year

¦ Engaged with International Union for Conservation of Nature (IUCN) for

3 years and developed biodiversity management plan (BMP) for all sites to support achievement of No Net Loss (NNL) of biodiversity

Implementation of Schedule 1 conservation plan in progress at Chanderiya Lead-Zinc Smelter (CLZS), Rajpura Dariba Mine (RDM), SKM & Zawar Mine (ZM)

Climate Change

Energy Transition

Extended our renewable energy round-the- clock (RE-RTC) power delivery agreement for up to 530 MW

Deployed 3 battery electric vehicles in underground operations at Sindesar Khurd Mine (SKM)

Launched Asia's first low-carbon ‘green' zinc, EcoZen

GHG Intensity

4.61 tCO₂ per tonne of metal

15% lower emission intensity from FY2020 baseline

Responsible Sourcing

378 active suppliers assessed for sustainability criteria

Introduced Sustainable Supply Chain Program

Developed 18 alternative local vendors

180 LNG vehicles successfully deployed which resulted in a reduction of 1,066.15 tonnes of CO₂ equivalent

Circular Economy

100% fly ash usage

6.05 lakhs MT (2 times) increase in gainful utilisation of smelting process waste like Jarosite and Jarofix from the base line 2020

Diversity in Workforce

25.5% diversity (versus 14.4% in FY2020)

23 people from LGBTQ community are now members of the family

Water Stewardship

Energy Transition

Achieved 3.32 times water positivity at Hindustan Zinc

Reduced freshwater consumption by 6% in FY2025 from base year FY2020

Operationalised dry tailing plant at Rajpura Dariba Complex (RDC)

Commissioned a 4,000 KLD zero liquid discharge plant at Rampura Agucha Mine (RAM)

Ensuring Zero Harm

Unfortunately, we had 4 fatalities this year

55% reduction in TRIFR from base line 2020

Social Impact

Impacted around 2.3 million lives across 2,362 villages with sustained CSR interventions

Total CSR spend of Rs. 273.45 crore

Health, Safety and Environment

Rooted in sustainability and ESG excellence, Hindustan Zinc has consistently demonstrated its critical role as the forerunner in clean energy transition metals. We have been recognised as global ESG leader in S&P Global Corporate Assessment 2024 with us being ranked 1^st globally in metals and mining sector for the second consecutive year. With an improvement in overall score to 86, Hindustan Zinc also got featured in Sustainability Yearbook 2024 amongst the top 1% most sustainable organisations globally for the second consecutive year.

With utmost commitment towards highest standards in occupational health and safety, environment, and governance, we constantly strive to uphold our position in the global sustainability landscape.

Occupational Health & Safety

At Hindustan Zinc, ensuring the safety and well-being of our employees and business partners remains our top priority. We are committed to fostering a secure work environment where every individual returns home safely. Despite our steadfast adherence to our ‘Zero Harm' philosophy, we deeply regret the loss of three business partner colleagues and one Hindustan Zinc employee in work-related incidents over the past year.

A thorough root cause analysis was conducted for each incident, reinforcing our continuous improvement efforts in workplace safety. Our frontline leaders and safety experts are actively involved in applying lessons from past incidents, ensuring continuous learning and improvement.

To strengthen our fatality prevention strategy, we have implemented several targeted safety initiatives. In alignment with Vedanta's vision of zero fatalities, we introduced the Vihaan-Critical Risk Management (CRM) Program, which proactively identifies high-risk activities and applies critical controls to prevent fatalities. We have also adopted the Infrastructure Inframatrix, a structured framework that assesses, monitors, and controls top infrastructure-related risks of our operations. This initiative reinforces operational safety and reliability while enhancing long-term efficiency. Complementing this, the Structural Integrity Management Committee plays a crucial role in identifying and mitigating structural risks. Using a criticality ranking system, we evaluate infrastructure based on condition and load, thus prioritising key risks.

Additionally, the Suraksha Kavach initiative has been extended to smelting operations, addressing 15 high-risk tasks in addition to 25 mining activities already covered.

We also facilitate external and internal workshops, international and national recognised courses for our employees and business partners for upgrading technical and behavioural skills.

Hindustan Zinc maintains world-class rescue facilities with advanced technology and highly trained personnel.

A key initiative is the inclusion of women rescuers, enhancing preparedness and inclusivity in emergency response. In FY2025, 23 women employees completed intensive training in work-at-height and confined space rescue operations.

We also prioritise occupational health management, conducting regular medical examinations and industrial hygiene assessments to mitigate exposure to hazardous substances, noise, and air quality risks. In FY2025, over 1,300 industrial hygiene sample assessments were conducted to ensure workplace safety.

Through proactive interventions, leadership accountability, and cutting-edge technology, Hindustan Zinc continues to set industry benchmarks in safety excellence.

During the year, we have been awarded with below awards

India's First All Women Rescue Team won 2^nd position in 13^th International Mine Rescue Competition held in Colombia

Hindustan Zinc has been awarded Platinum in the 9^th Apex India Occupational Health & Safety Awards 2024 in the Metal & Mining sector

Zawar's captive power plant has secured 5-star in British Safety Council Five Star Audit

Won multiple awards at International Safety Awards 2025 by British Safety Council in the areas of automation and innovation, competency development and standardisation of safety systems

The Company secured the first prize at the 53^rd All India Mine Rescue Competition

Environment

Hindustan Zinc is committed towards environmental conservation through reducing carbon footprint, lowering air emissions, managing water and waste effectively, and fostering biodiversity, etc., which are the important aspects of our philosophy of responsible business operations.

Hindustan Zinc has received validation on its near-term and net-zero targets by the Science Based Targets initiative (SBTi). Our targets include a commitment to reduce 50% of absolute Scope 1 and 2 GHG emissions and further reduction of 25% of absolute Scope 3 GHG emissions by FY2030 from the base year FY2020 and further achieving net-zero emissions across the value chain by FY2050. These target ambitions have been approved by the SBTi in line with 1.5?C trajectory.

Hindustan Zinc also became the first in the Indian metals and mining sector to publish its Climate Action Report, aligned with International Financial Reporting Standards (IFRS) S2 - Climate-related Disclosures framework.

During the year, we have signed an incremental power delivery agreement for renewable energy to increase from 450 MW to 530 MW, and the project progress is going well. In FY2025, we sourced c.13% of the renewable energy against the overall power requirement across the plants. The 530 MW RE-RTC will help in reducing our GHG emissions significantly by 3.5 MtCO₂e per annum by 2028. The usage of renewable energy has also enabled Hindustan Zinc to launch Asia's first low carbon zinc, EcoZen, which boasts a carbon footprint of less than tCO₂e per tonne of zinc produced, about 75% lower than the global average.

Our initiatives in reducing our Scope 3 emissions include deploying 3 battery-electric vehicles (BEVs) in our underground operations at Sindesar Khurd Mine, 10 EV trucks for interunit transport of goods, introduction of 3 EV stations as well as deployment of 180 LNG-powered trucks in partnership with Greenline, for upstream & downstream transportation, which has resulted in avoidance of 1,066.15 tCO₂e in FY2025.

A 4,000 KLD water treatment plant was commissioned at Rampura Agucha Mine in FY2025. The plant will result in reduction of freshwater dependency, aligning with the vision of becoming 5 times water positive by 2025. The dry tailing plant at Rajpura Dariba Mine has been operational since September 2024 and will result in a significant amount of water recovery from the tailings, making this our second unit generating dry tailings after Zawar Mines.

We had a 3-year engagement with International Union for Conservation of Nature (IUCN) for preparing biodiversity management plans (BMPs) for all of our locations except the Pantnagar Metal Plant, supporting Hindustan Zinc to achieve its target of no net loss of biodiversity against a 2020 baseline.

The first fuming furnace which has been commissioned at Chanderiya Lead Zinc Smelter (CLZS), has helped us in improving metal recovery and reducing the generation of jarosite waste. As a significant achievement in our pursuit of reducing waste by improving efficiency, Hindustan Zinc received an Indian patent titled as ‘Method for manufacturing of paver block and bricks from industrial waste'.

We have also partnered with Indian Institute of Technology (IIT) Madras and Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR) to develop sustainable energy storage solutions. IIT Madras is creating a 1 kWh rechargeable zinc-air battery prototype, offering a cost- effective and durable alternative to lithium-ion batteries. This collaboration aims to enhance the viability of zinc- based batteries for a sustainable energy future.

We organised a series of training sessions called “Wednesday for Transition”, which were designed to provide suppliers with essential knowledge on ESG (Environmental, Social, and Governance) topics like biodiversity, safety, materiality, etc.

Our sustainability-related activities received several endorsements during the year:

Our Sustainability Report 2023-24 ranked 1^st globally in the Materials category, earning a Platinum award in the LACP Vision Awards 2023/24

Rajpura Dariba Complex received Scope 1 Water Positive Aspiring Company Certificate

Hindustan Zinc was honoured with ICC Sustainability Excellence Award in Manufacturing sector

The Company won ESG Excellence Award 2024 at KPMG ESG Conclave

Hindustan Zinc was featured in TIME's Top 500 World's Most Sustainable Companies 2024

The Company won BW Business World's Sustainability Awards 2024 for leading the Sustainability Charter in India's Energy and Mining Industry

Hindustan Zinc was recognised as Green Leader Supplier by Larsen & Toubro

The Company won Inspirational Sustainability Performance Award by Amara Raja

Corporate Social Responsibility (CSR)

The Company's CSR initiatives passionately focus on community upliftment by strengthening the local economy and improving the quality of life by working in the areas of education, sustainable livelihoods, women empowerment, health, water & sanitation, sports & culture, environment & safety and community assets creation. Please refer to the community development chapter in the Integrated Annual Report, located on page 186, for further information.

During the year, the Company spent ' 273.45 crore on CSR programmes, more than the 2% of CSR mandate which was ' 264.82 crore. For further details, refer Annexure III and ‘Business Review' section of this annual report.

External Assessment

* Last updated in July 2025 ^ALast updated in December 2024 # Last updated in July 2024

** i) Last updated in July 2025

ii) Hindustan Zinc was recognised with A- (Leadership) for Supplier Engagement Assessment

III. RESERVE AND RESOURCE (R&R)

With a strong focus on resource-to-reserve conservation during the year, we have crossed the milestone of 13.1 million tonnes of metal reserves for the first time since underground transition, increasing the total metal reserves to 3 times to 29.6 Mnt as compared to FY2020 on a net of production basis.

On an exclusive basis, total Ore Reserves at the end of FY2025 stood at 189.1 million tonnes (net of depletion of 16.3 million tonnes during FY2025) and exclusive Mineral Resources totalled 264.1 million tonnes. Total contained metal in Ore Reserves is estimated at 10.3 million tonnes of zinc, 2.8 million tonnes of lead and 304.8 million ounces of silver.

The Mineral Resource contains approximately 11.5 million tonnes of zinc, 5.0 million tonnes of lead and 503.5 million ounces of silver. At current mining rates, the R&R underpins metal production for more than 25 years.

IV. HUMAN RESOURCE MANAGEMENT

Our workforce is the key driver to unlocking growth and success. We create a dynamic, performance- driven environment that nurtures talent, ensures well-being, and offers enriching, purposeful work. Combining the strength of a global leader with the agility of a start-up, we empower careers, foster innovation, and contribute to nation-building through sustainable growth and exceptional talent development. Embracing diverse perspectives and experiences, we foster inclusiveness, driving creativity and excellence. Our commitment to diversity attracts and retains top global talent. Our comprehensive onboarding process seamlessly integrates new team members, leveraging their strengths to achieve exceptional results and sustainable growth. Please refer to the human resource chapter in the Integrated Annual Report, located on page 168, for further information.

HR initiatives

1. Increased gender diversity in Executive Committee from 12% in FY2019 to 25% in FY2025

2. Unveiled a new policy offering up to ' 1 lakh for transgender employees' higher education

3. Co-partnered with the 3^rd Transgender Leadership Conclave & Job Fair, with

23 employees thriving in key roles across the organisation

4. Celebrating India's first women underground mine managers and allwomen rescue teams with #WomenInZinc campaign

1. Partnership with Silver Oak Health to provide free mental health support, fostering emotional resilience through webinars and workshops.

2. High performance organisation with 2x increments to high performers, fast track promotions and disruptive rewards

3. 500+ employees & 200+ business partner employees rewarded over the year

4. Promote physical well-being with state-of-the-art facilities and enhance culture through community celebrations, sports, CEO townhalls, and mentorship programmes, etc.

1. Over 1.3 lakh training hours, including over 30k hours of digital learning

2. Collaboration with institutions like 11M Udaipur and NIT Rourkela for providing specialised expertise

3. 90+ executives graduated through our work integrated learning program in partnership with BITS Pilani and IIM Udaipur

4. Recognition through DRONA and other such awards to nurture a culture of continuous learning

1. Impacted over 250 employees, including Technical and Business Stars and Safety Champions, through Ambavgarh Dialogue.

2. Connecting employees with industry leaders and change-makers nationwide through Leaders Unplugged

3. Promoted 26 Technical and 7 Business Stars to higher roles with expanded responsibilities through ACT-UP (Accelerated Competency Tracking and Upgradation Programme)

4. Comprehensive assessments like 360-degree feedback for over 200 executives and creation of 250+ talent cards through Talent Review Council

5. Selected 31 leaders for critical roles in smelting operations and asset integrity through SHIKHAR

6. Institutionalised analytics cell, ACCELERATORS, to drive key strategic pillars like economic analysis, zinc market insights, new business opportunities, and competitor benchmarking

7. Covered over 200 anchors and proteges through our flagship mentoring program, GURU CHAKRA

PARTICULARS OF EMPLOYEES

The remuneration paid to Directors, Key Managerial Personnel, and the executive management team during FY2025 was in accordance with the Nomination and Remuneration Policy of the Company. Disclosures pertaining to remuneration and other details as required under section 197(12) of the Act, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are annexed as Annexure X.

In terms of the provision of Section 136 of the Act and Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Report and the Financial Statements are being sent to the Members of the Company excluding the statement of particulars of employees.

The said information is available for inspection through electronic mode. Any member interested in obtaining such information may write to the Company Secretary and the same will be furnished upon such request.

In line with the internal guidelines of the Company, no payment is made towards commission to the Executive Director of the Company, who is in full time employment with the Company.

Disclosure as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

The Company has zero tolerance for sexual harassment at workplace and has adopted a policy on Prevention, Prohibition and Redressal of Sexual Harassment at workplace and has an Internal Complaints Committee (“ICC”) in compliance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Members of the Corporation's ICC are responsible for conducting enquiries pertaining to such complaints. Such policy broadly covers the viewpoints below:

Promote a workplace based on equality & respect

Provide a safe and congenial work environment

Awareness & sensitisation about sexual harassment at the workplace

Prevent sexual harassment

Provide formal and informal mechanism for redressal in case of complaint of sexual harassment at the workplace

Define the implications and outcome of sexual harassment

Ensure protection against retaliation to complainants, witnesses, Committee members and other employees involved in prevention and complaint resolution

To ensure that ICC is well acquainted with the knowledge of investigation under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, Hindustan Zinc organised a 1-day training workshop for all the ICC members by an external expert.

V. RISK MANAGEMENT

The businesses are exposed to a variety of risks, which are inherent to a global natural resources organisation, and we understand that it is imperative for an organisation to manage its risk for achieving strategic goals. As part of our governance philosophy, the Board has an Audit & Risk Management Committee to ensure a robust risk management system. The details of the Committee and its terms of reference are set out in the Corporate Governance Report, which forms part of this Annual Report.

At Hindustan Zinc, we are determined to ensure that our system is robust and proactive to successfully apprehend risks and mitigate them before they play out. We, therefore, have a strong sustainable risk management framework, supported by SAP-based tools to allow transparent risk reporting and escalations. Risk prioritisation criteria are clearly defined and mapped across different functions, categories and activities along with the likelihood of potential impact. Risks are continually evaluated for timely implementation of mitigation measures.

Risk Management Framework

The risk management framework provides a rationalised approach to identify, discuss, measure, and manage vital opportunities and risks that the enterprise faces. It details the guidelines to enable business units and corporate functions across the Company to manage risks, while pursuing the Company's strategy. Please refer to the risk management chapter in the Integrated Annual Report, located on page 68, for further information.

Internal Financial Control Systems and their adequacy

Based on the framework of internal financial controls and compliance systems established and maintained by the Company, the work performed by the internal, statutory and secretarial auditors and external consultants, including the audit of internal financial controls over financial reporting by the statutory auditors and the reviews performed by management and the relevant Board Committees, including the Audit & Risk Management Committee, the Board is of the opinion that the Company's internal financial controls were adequate and effective during FY2025.

Vigil Mechanism and Whistle Blower Policy

Your Company is committed towards retaining highest standards and ethical code of conduct. The Company has in place a robust vigil mechanism for reporting genuine concerns through the Company's Whistle-Blower Policy and has established the necessary vigil mechanism for Directors and employees in confirmation with section 177(9) of the Act and Regulation 22 of Listing Regulations, to report concerns about unethical behaviour.

This policy is available on the Company's website on https://www.hzlindia.com/wp-content/uploads/HZL- WHISTLE-BLOWER-POLICY-19.10.2015.pdf. All the ‘Complaints' under this policy are reported to the Group Head - Management Assurance, who is independent of operating management and the businesses. Company has a dedicated email Id - hzl.whistleblower@vedanta.co.in, and a hotline number (000-800-100-1681) as well as web-based reporting platform https://secure.ethicspoint.eu/domain/ media/en/gui/102029/index.html.

All incidents that are reported are investigated and suitable action is taken in line with the Whistle Blower Policy. It is completely ensured that the identity of the Complainant remains anonymous. The action taken and status reports of the same are reported to the Audit & Risk Management Committee on a quarterly basis.

VI. SUBSIDIARIES/JOINT VENTURES

As on March 31,2025, your Company has 5 wholly-owned subsidiaries (“WOS”) and 1 joint venture (“JV”) as per the Companies Act, 2013 (“the Act”) which have been classified as subsidiaries/JVs under Indian Accounting Standards (Ind AS). Same are as follows: -

Hindustan Zinc Alloys Private Limited (WOS)

Vedanta Zinc Football & Sports Foundation (WOS)

Hindustan Zinc Fertilisers Private Limited (WOS)

Zinc India Foundation (WOS)

Hindmetal Exploration Services Private Limited (WOS)

Madanpur South Coal Company Limited (JV)

During the year under review, Vedanta Limited, the holding company had reduced its shareholding from 64.92% to 63.42%.

The Company has no material subsidiaries during the year under review. In terms of the Listing Regulations, as amended from time to time, the Company's policy for determining material subsidiary may be accessed at https://www.hzlindia.com/wp-content/uploads/HZL-Policy- for-Determing-Material-Subsidiaries.pd f

The Board members are provided with necessary documents, reports and internal policies to enable them to familiarise themselves with the Company's operations, its procedures and practices. Periodic presentations are made at the Board and Board Committee meetings, on business and performance of the Company, global business environment, business strategy, risks, safety, health and environment, and ESG & sustainability etc. The details of the familiarisation program are provided in the Corporate Governance Report forming part of this Annual Report and can also be accessed on the website of the Company at www.hzlindia.com .

Detailed Company's policy on appointment of Directors and their remuneration is available on the Company's website https://www.hzlindia.com/wp-content/uploads/ HZL-Nomination-Remuneration-Policy final-19.04.2024.pdf

In line with the requirements of the Act and the Listing Regulations, your Company has formulated a policy on related party transactions (RPTs) and the same can be accessed using the following link: https://www. hzlindia.com/wp-content/uploads/HZL RPT-Policy Revised 21.04.2023.pdf .

Details of shares transferred to IEPF Authority during FY2025 are also available on the website at https://www.hzlindia. com/investors/share-information/shares-transfer-to-iepf/

Pursuant to section 92(3) read with section 134(3)(a) of the Act, the annual return as on March 31, 2025, is available on the Company's website https://www. hzlindia.com/investors/reports-press-releases/