(b) Breif description of provision:

(i) 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
a 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 over a period until Financial year 2047.

(ii) Environmental liabilities

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, disposal of Phospho
Gypsum, Slag etc.

Environment liabilities are recognised when the Company becomes obliged, legally or constructively to rectify
environmental damage or perform remediation work.

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 expected over a period until Financial year 2031. The effect of time
value of money on the environmental liabilities is recognised in the statement of profit and loss as interest expense.

During the current year Provision made majorly includes provision against disposal of Phospho Gypsum ' 88 Crore
(31/03/2024: ' 27 Crore) , Fly ash disposal ' 4 Crore ( 31/03/2024: ' 45 Crore), disposal of spent pot lining ' 4 Crore
(31/03/2024: ' 37 Crore).

(iii) Enterprise Social Commitment

Enterprise Social Commitment is the amount to be spent on social and economic development of the surrounding
area 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 the Government for new projects and are generally defined as a
percentage of total project cost. Present value of such future cash flows discounted at appropriate and applicable
discount rates are capitalised against the obligation created. Actual cash flows that happen over the period are
adjusted against the obligation. The effect of time value of money on the provision is recognised in the statement
of profit and loss as interest expense. Enterprise Social Commitment also includes provision against Corporate
Environment Responsibility (CER).

The outflow of economic resources is expected over a period until Financial year 2056.

(iv) Renewable Power Obligation

Some units of the Company situated in various states like Odisha, Madhya Pradesh , Maharashtra ,Gujarat, Jharkhand
etc. who generate power from Captive power plants or procure power from open source, are obligated to purchase
certain portion of 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 need to meet the obligation by purchasing Renewable Energy Certificates from authorised energy exchanges as
an alternative.

Renewable Power obligation is created to 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 the reporting period and is carried
in books till the obligation is discharged by purchasing Renewable Energy Certificate from any of the authorised
exchanges.

(v) Legal Cases

The Company reviews the legal cases based on consideration of the information which becomes available up to
the date on which the financial statements are approved. The provisions relating to legal, tax and other matters are
recognised once it has been established that the Company has a present obligation since those events are probable
to happen i.e. more likely than not but timing of occurrence of such events is uncertain till settled at the highest Courts
of law. In some cases, the Company entail seeking expert advice in making the determination on whether there is a
present obligation.

(vi) Miscellaneous Provisions:

The Company discloses the provision which are not reported in any other categories seperately viz.statutory provisions
related to, indirect taxes, coal cess etc under this head. There are few other provisions which are evalauted on each
reporting date viz. Restructurings, Onerous contracts, Restoration (including Mine closure), rehabilitation and
decommissioning.

(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
the Code 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 28/02/2019, 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 for the purposes of computation of Provident Fund contribution. The Company has given effect of the
above judgement effective 01/03/2019. This does not have any material impact on the Financial Statements.

14B.Employee Benefit Obligations

Retirement benefits, medical plans and termination benefits

A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate 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 prior periods. Payments to defined contribution
retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the
contributions.

For defined benefit retirement and medical plans, the cost of 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 is determined 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 and losses, the effect of the changes to the asset ceiling (if applicable) and
the return on plan assets (excluding interest), 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 recognised in other comprehensive income is
reflected immediately in retained earnings and will not be reclassified to the statement of profit and loss. Past service cost
is recognised in the statement of profit and loss in the period of a plan amendment. Net interest is calculated by 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 of defined 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 the balance 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 from the 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.

Short-term and other long-term employee benefits

A liability is recognised for benefits accruing to employees in respect of wages, salaries and bonus in the period the related
service is rendered at the undiscounted amount of the benefits 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 the benefits
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 are measured at
the present value of the estimated future cash outflows expected to be made by the Company in respect of 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 are charged or credited to the statement of profit and
loss in the period in which they arise. These obligations are valued annually by independent qualified actuaries.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right
to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is
expected to occur.

Critical accounting judgement and key sources of estimation uncertainty

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 have a significant impact on the recognized costs and obligation, such as future salary level, discount rate, attrition
rate and mortality.

The Company 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 can influence the net asset or liability for the plan as well as the
pension cost.

(a) Post-Employment Benefits

The Company provides various benefit plans to its employees. Some of them are defined benefit in nature while some
are contributory.

I. 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 the
administered interest rates on an annual basis by Central Provident Fund Organisation of Goverment of India). The
Company does Actuarial valuation for its identified 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 based
on 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 the
actuarial present value of the projected accrued benefits for active members.

Defined benefit plans expose the Company to actuarial risks such as: Interest Rate Risk, Salary Risk and Demographic
Risk.

(i) 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.

(xiii) Expected Contributions to post employment benefit plan of Gratuity for the year ending 31st March, 2026 is Nil.

(xiv) 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.

(b) Post Retirement Medical Benefit

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 debited to the Statement Profit and Loss during the year is ' 0.34 Crore (year ended 31/03/2024'0.32 Crore)
and amount of actuarial (gain)/ loss recognised in Other Comprehensive Income during the year is ' 4.33 Crore (year
ended 31/03/2024'0.15 Crore). The obligation with respect to said scheme as at 31/03/2025'6 Crore ( year ended
31/03/2024'5 Crore) .

(c) Other Pension Plan

It is a pension benefit provided to erstwhile Managing Director. The amount debited to statement of Profit and Loss
during the year is ' 3 Crore (year ended 31/03/2024'3 Crore). Amount of actuarial (gain)/ loss recognised in Other
Comprehensive Income during the year is ' 2 Crore (year ended 31/03/2024'1 Crore). The obligation with respect to
these schemes as at 31/03/2025'45 Crore ( year ended 31/03/2024'44 Crore).

(d) Provident Fund (Managed by Trust)

The Company’s contribution towards Provident Fund managed by approved trusts, which are substantially defined
benefit plan is debited to the Statement of Profit and Loss. The Company has an obligation to fund any shortfall on

II. Defined Contribution Plans

The Company has certain defined contribution plans such as provident funds (not managed by Trust), superannuation
fund and family pension fund for the benefit of the employees. The Contributions are made to registered funds/
organisation administered by the government. The obligation of the Company is limited to the amount contributed and it
has no further contractual nor any constructive obligation.

(a) 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 of India at retirement. The amount debited to statement of Profit and Loss during the year is ' 19 Crore
(year ended 31/03/2024'18 Crore).

(b) Provident Fund (Other than Trust)

In respect of certain employees, the Company’s contribution towards Provident Fund as specified under the law is paid
to the Regional Provident Fund Commissioner and is debited to the Statement of Profit and Loss. The Company also
contributes to Coal Mines Provident Fund (CMPF) in respect of employees working in coal mines. The amount debited
to Statement of Profit and Loss during the year is ' 29 Crore (year ended 31/03/2024'29 Crore).

B. Other Employee Benefit plans

(a) Compensated Absences

The Compensated Absences cover the Company’s liability for earned and sick leave. The entire amount of the
provision of ' 341 Crore (year ended 31/03/2024'304 Crore) is presented as current, since the Company does
not have an unconditional right to defer settlement for these obligations. Expected amount towards settlement of
Leave for the next 12 months are ' 50 Crore (31/03/2024'39 Crore) .

(b) Employee Share-based Payments

Equity settled share-based payments to employees are measured at the fair value of the options at the grant date.

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 amount already expensed is reversed. In a
situation where the vested option forfeited or expires unexercised, the related 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 new equity shares of the Company of' H- 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, are recognised as employee benefit expense over the relevant
service period. The liability is fair valued at each reporting date and are presented as employee benefit obligations
in the balance sheet.

Employee Stock Option Scheme administered by any independent trust is deemed as extended arm of the
Company and is consolidated in the standalone financial statements. When the options are exercised, the
trust transfers the appropriate number of shares to the employee. The proceeds received, net of any directly
attributable transaction costs, are credited directly to equity.

The Company has formulated employee share-based payment schemes with the objective to attract and retain
talent and align 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, the following employee share-based
payment schemes are in operation, details of which are given below:

(i) 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 not more than 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 and its 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 shares of the Company as at the date 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 W 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 31/03/2025 the Committee has granted 2,250,754 stock options and 2,252,254
RSUs (31/03/2024: 2,250,754 stock options and 2,252,254 RSUs) to the eligible employees of the Company
and some of its subsidiary companies. Further, 301,381 stock options and 213,095 RSUs (31/03/2024:
301,381 stock options and 213,095 RSUs) has been forfeited/ expired and are available for grant as per term
of the Scheme.

Under ESOS 2013, the range of exercise prices for stock options outstanding as at 31/03/2025 is Nil (31/03/2024:
Nil) whereas exercise price in case of RSUs is Nil (31/03/2024: W 1.00). The weighted average remaining contractual
life for the stock options and RSUs outstanding as at 31/03/2024 is Nil and Nil years, respectively (31/03/2024: Nil
and 0.72 years respectively).

The weighted average share price at the date of exercise of ESOS 2013 was W 648.10 per share (31/03/2024
W 423.70 per share).

(ii) 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 the 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 (“the Committee”) and the Hindalco Employees Welfare Trust (“Trust”). The Stock
options exercise price would be determined by the Committee whereas the RSU exercise price shall be the face
value of the equity shares of the Company as at the date 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 Options and RSUs Granted under the Scheme 2018 shall vest,
subject to compliance with the minimum vesting period of one year, within a period of four years for Options and of
three years for RSUs from the Grant Date, in the manner set out in the respective vesting letters to be issued by the
Company to the Grantees from time to time. 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. The options shall lapse in case of performance linked
vesting conditions are not met.

In terms of ESOS 2018, till 31/03/2025 the Committee has granted 9,465,173 stock options and 2,766,817 RSUs
(31/03/2023: 9,465,173 stock options and 2,766,817 RSUs) to the eligible employees of the Company and some
of its subsidiary companies. Further, 1,257,837 stock options and RSUs 290,019 (31/03/2024: 1,249,195 stock

Under ESOS 2018, the range of exercise prices for stock options outstanding as at 31/03/2025 was ' 159.30 to
' 453.95 (31/03/2024 was ' 159.30 to W453.95) whereas exercise price in case of RSUs was ' 1 (31/03/2024: ' 1).
The weighted average remaining contractual life for the stock options and RSUs outstanding as at 31/03/2025 was
3.75 years and 4.80 years, respectively (31/03/2024 was 4.19 years and 5.54 years respectively).

The weighted average share price at the date of exercise of ESOS 2018 was ' 637.54 per share (31/03/2024 was
' 453.97 per share).

(iii) Employee Stock Option Scheme 2022 (“ESOS 2022”):

The shareholders of the Company has approved on 23/08/2022 an Employee Stock Option Scheme 2022 (“ESOS
2022”), formulated by the Company, under which the Company may grant not more than 16,828,000 [Stock Options
and Performance Stock Units(‘PSU’)] 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 2022 is administered by the Nomination, Remuneration and Compensation Committee
of the Board of Directors of the Company (“the Committee”) and the Hindalco Employees Welfare Trust (“Trust”).
The Stock options exercise price shall be the Market Price of the Share or as may be determined by the Committee
whereas the PSU exercise price shall be the face value of the Shares or as may be determined by the committee.
Each stock option and each PSU 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 Options and PSUs
Granted under the Scheme 2022 shall vest, subject to compliance with the minimum Vesting Period of one year,
within a period of four years for from the Grant Date, in the manner set out in the respective vesting letters to be
issued by the Company to the Grantees from time to time. The maximum period of exercise is 5 years from the date
of vesting and these stock options/PSUs 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. The options shall lapse in case of
performance linked vesting conditions are not met.

In terms of ESOS 2022, till 31/03/2025 the Committee has granted 4,045,491 stock options and 882,474 PSUs
(31/03/2024: 2,262,753 stock options and 317,023 PSUs) to the eligible employees of the Company and some
of its subsidiary companies. Further, 38,339 stock options and RSUs 14,928 (31/03/2024: 5,770 stock options