DIRECTORS' REPORT

Your Directors have pleasure in presenting the Fifty-Eight Annual Report of Hindustan Copper Ltd (HCL/the Company) together with the
Audited Statement of Accounts and Auditors' Report thereon for the year ended 31.03.2026.

1. Performance

Financial Summary or highlights

The comparative working results for the financial year (FY) 2025-26 vis-a-vis FY 2024-25 are as under:

During FY 2025-26, the Sales of the Company was ?3054.40
crore as against ? 2048.11 crore during FY 2024-25 registering
an increase of 49.13%. The Company posted Profit Before Tax of
?1232.73 Crore during the year as against ?633.51 Crore
recorded during the previous year registering an increase of
94.59%. The Profit After Tax during FY 2025-26 was ?920.67
Crore as against ? 468.53 crore in FY 2024-25. During the quarter
ended 31.12.2025, the Company introduced a Post-Retirement
Physical performance

Medical Scheme (PRMS) and made a one-time provision of
?95.75 Crore on the basis of Actuarial Valuation of the Scheme
done by an Independent Actuary as per the guidelines of Ind AS-
19 issued by the Institute of Chartered Accountants of India.
Being one time and infrequent in occurrence, the same has been
disclosed as Exceptional Item in the financial statement to ensure
Company's true performance.

During FY 2025-26, HCL recorded copper ore production of
36.72 Lakh tonne as compared to 34.74 lakh tonne in the
previous year, registering growth of 6% over FY 2024-25. Khetri
Copper Complex (KCC) has produced 10.04 lakh tonne of
copper ore as compared to 7.18 Lakh tonne in previous year,
registering an increase of 40% over FY 2024-25. Malanjkhand
Copper Project (MCP) has produced 24.25 Lakh tonne of copper
ore as compared to 27.25 Lakh tonne in previous year,
registering a decrease of 11% over FY 2024-25. The decrease in
ore production at MCP was mainly on account of geotechnical
issues in the north section and limited stope availability in the
south section. Indian Copper Complex (ICC) has produced 2.43
Lakh tonnes of copper ore as compared to 0.30 Lakh tonne in
previous year registering substantial increase over FY 2024-25.

Taloja Copper Project (TCP) has produced 12,886 tonnes of
copper wire rod (from third party tolling) in FY 2025-26 as
compared to 15,218 tonnes in previous year registering a
decrease of 15% over FY 2024-25.

During FY 2025-26, the overall Metal in Concentrate (MIC)
production of the Company stood at 27,421 tonnes as compared
to 25,241 tonne in previous year, registering 9% growth over FY
2024-25. This increase was driven by the resumption of
production at Kolihan, Surda and Kendadih mines.

Cathode and Continuous Cast Wire Rod (CCR) production
(Own) remained suspended during the year due to business
economic decision for direct sale of Copper Concentrate which
gives better realization to the Company.

The Company has taken following measures to further augment its production performance:

(i) To commence ore production from Kendadih and Rakha
mines at ICC unit, the Company has taken requisite steps
and obtained Stage-I Forest Clearance for the balance
forest area within the mining lease, followed by an
amendment to the Environmental Clearance from the
Ministry of Environment, Forest and Climate Change
(MoEF&CC), and subsequent execution of the lease deed
with the Government of Jharkhand. The operation at
Kendadih mine has also started.

(ii) Commissioning of the Apron Feeder at 0 mRL in Kolihan
Mine is expected to be completed by mid of FY 2026-27. On
completion, ore production from Kolihan mine at KCC is
expected to increase from 12,000 to 15,000 tonnes per
month.

(iii) To address water shortage at KCC, the Company has taken
up with the Government of Rajasthan the matter of

increasing water supply from the Kumbharam project. In
addition, measures are being implemented to enhance
rainwater storage and retention, improve the internal water
circulation system to minimize losses, and increase water
reclamation from the tailing dam. Further, the Nagar Palika,
Khetri, Government of Rajasthan is constructing a Sewage
Treatment Plant (STP) at KCC, which is nearing
completion. HCL has already signed an agreement with the
State Government to receive 1 MLD of treated water from
the STP, with supply expected to commence in Q2 FY 2026¬
27.

(iv) Regular review of contractors' performance is being done
by MCP, KCC and ICC units, as done in the previous year.

(v) Regular preventive maintenance of man & material hoisting
system is being ensured at the mines of MCP, KCC and ICC
units.

Apart from above, the following other major initiatives have been taken during the year

(i) The Company exchanged the historical MoU with
CODELCO, the State-owned Copper Mining Company of
Chile in the presence of Hon'ble Prime Minister, Shri
Narendra Modi, and Chilean President, Mr. Gabriel Boric
Font, on 01.04.2025. The main objective of this Agreement
is to identify and implement joint activities and to foster
strategic partnership in exploration, mining and mineral
beneficiation through sharing of knowledge and experience
as well as for training employees.

(iii) HCL has been selected as preferred bidder for a Composite
License (CL) for the 'Baghwari-Khirkhori' copper and
associated mineral block in Sidhi District, Madhya Pradesh
and the execution of CL deed is under progress. The block
was notified by the Government of Madhya Pradesh and the
e-auction was held on 22.01.2026.

(iv) Bodal block in Chhattisgarh has been allotted to HCL by
Government of Chhattisgarh for a period of 3 years to
undertake exploration work. The exploration work through
NMEDT funding has been started with the help of MECL.

(ii) An MoU has been signed between HCL, Madhya Pradesh
State Mining Corporation Ltd and the Directorate of
Geology & Mining, Madhya Pradesh at the Global Investor
Summit on 25.02.2025 for exploration of critical minerals
including copper in Madhya Pradesh. In this regard the
company has sought reservation of Copper Block in
Balaghat district of Madhya Pradesh.

(v) The Annual Plan Meeting for the financial years 2025-26
and 2026-27, a two-day brainstorming workshop, was held
at the HCL Corporate Office on 2^nd & 3^rd May, 2025 involving
all units of HCL.

(vi) Union Minister of Coal & Mines, Shri G. Kishan Reddy,
released the Copper Vision Document on 04.07.2025, at
the International Conference on Sustainable & Responsible
Mining held in Hyderabad. Secretary, Mines and other
Senior Officers from Ministry of Mines attended the
meeting. The document, prepared by HCL for the Ministry of
Mines, provides a detailed plan for the growth of India's
copper industry.

(viii) A successful WhatsApp video call was conducted on
23.12.2025 from the underground mines of the Khetri
Copper Complex at depths of 400 meters and 700 meters.
The live interaction connected the CMD, Director
(Operations), Director (Finance), Unit Head - KCC, and
other senior officials. The call was enabled by extending the
existing Local Area Network (LAN) from surface to
underground workings, demonstrating the effectiveness of
the digital communication infrastructure and real-time
connectivity in deep underground mining operations.

(vii) HCL organized a Vendor Meet in hybrid mode at Corporate
Office, Kolkata on 20.08.2025 in which 19 vendors
participated. The session highlighted proposed projects for
increasing copper ore production and encouraging vendor
participation in upcoming tenders to support HCL's growth
plans.

(ix) HCL has signed Memorandum of Understanding (MoU) with various entities like RITES Ltd, Indian Oil Corporation Ltd, Coal India
Ltd, GAIL (India) Ltd, Oil India Ltd, NTPC Mining Ltd, CSIR-IMMT, MDI Murshidabad and MECON Ltd to collaborate on the
exploration, extraction, refining & production activities for copper and exploitation of copper and critical mineral deposits in India
and abroad, along with mineral beneficiation, technology sharing, knowledge exchange, and other value-adding activities.

2. Dividend

Your Company has paid an Interim Dividend of ^1.00 per share
on ?5/- face value amounting to ^96.70 Crore for FY 2025-26 in
March, 2026. The Board of Director has also recommended final
dividend equivalent to 37.20% on paid-up capital of the Company

i.e. ^1.86 per share on ?5/- face value for the financial year 2025¬
26 amounting to ^179.87 Crore for approval of shareholders in
the Annual General Meeting. The total outgo on Dividend (Interim
and Final) for FY 2025-26 will be ^276.57 Crore approx.

3. Material Changes, if any

No material changes and commitments, affecting the financial
position of the Company occurred between the end of the
financial year to which the financial statements relate and the
date of the report.

4. Projects

The status of different continuing mine expansion projects is as
under:

i. Malanjkhand Mine (Madhya Pradesh)

The ongoing capacity expansion project at MCP, which involves
development of an underground mine beneath the existing open¬
cast mine, is expected to enhance the ore production capacity
from 2.5 MTPA to 5.0 MTPA.

To complete the residual work of underground mine construction
for capacity expansion, a consultancy contract was entrusted on
MECON Ltd (MECON), a reputed CPSE Consultancy
Organization, for estimation of value of residual work,
preparation of NIT document and evaluation of tenders which
have been divided in multiple parts (Mine Excavation at North
Side, Mine Excavation at South Side, Shaft Furnishing, Men &
Material Hoisting system, Crushing & Pumping system, Power
system & Main Mechanical Ventilator) to complete the work in an
efficient manner. Out of the above multiple parts, the contracts for
completion of mine development work at North & South side have
been awarded and started in FY 2022-23 and development work
is under progress. The work order for Main Mechanical Ventilator,
Shaft Furnishing, Men & Material Hoisting system, Electrical
power system have been awarded in FY 2025-26. The tender for
Crushing & Pumping system was floated in March 2026.

The 3.00 MTPA Paste Fill Plant used for backfilling voids in the
underground mine at MCP is facilitating enhanced ore recovery
from mine stopes and ensure improved safety standards at the
mines.

The underground leaky feeder-based communication system,
installed and commissioned at Malanjkhand underground project
is facilitating traffic movement and enhancing safety in the
underground mine.

ii. Khetri & Kolihan Mine (Rajasthan)

The proposed expansion of mines at KCC would increase ore
production capacity from existing 1.0 MTPA to 2.9 MTPA. Mine-
wise status is as under:

(a) Kolihan Mine: The study report of Geophysical Exploration
work, undertaken during FY 2021-22, has shown possible
extension of ore body up to (-) 300 mRL. Based on the
outcome of above work, the validation drilling has been
taken up which confirmed the continuity of ore body
extension up to (-) 300 mRL, i.e. about 750 m vertical depth.
For detailed exploration under G2 level, contract of 27,350
m of depth exploration drilling up to (-) 300 mRL has been
awarded to EF Mining Pvt. Ltd. in February, 2025 which is
under execution. Till FY 2025-26, total 7955 m drilling has
been completed. Following the outcome of detailed
exploration drilling & techno-economic feasibility;
infrastructure development work for capacity expansion will
be taken up. Kolihan Mine is already having Environmental
Clearance to produce 1.5 MTPA of copper ore.

(b) Khetri Mine: In order to enhance the ore production from
mine, contract had been awarded for conversion of track
mining to trackless mining at 0 mRL and below in
September, 2022 and the work is under progress. During
FY 2025-26 decline connection has been established
between 0 mRL and 52 mRL. Further, waste disposal via
LPDT has been commenced through the established
decline. For Banwas deposit of Khetri Mine, the Company
has appointed contractual agency which produced
3,33,941 tonnes of ore in FY 2025-26. Further, a depth
exploration of 63,100 drilling meterage has been taken up to
prove the continuity ore body extension up-to (-) 300 mRL
and estimation of reserves at deeper level. Out of this till FY
2025-26, drilling of 22383 m has been completed. The work

for preparation of DPR for the Phase-II expansion has been
awarded in FY 2025-26 and is under progress.

iii. Surda Mine (Jharkhand)

During FY 2025-26, Government of Jharkhand has forwarded
the compliance to 65.52 ha Stage-I FC conditions to MoEF&CC,
New Delhi for grant of Stage-II FC. The Surda Mine Plan
envisages sinking of shaft and deepening of various winzes to
increase production capacity from 0.4 MTPA to 0.9 MTPA.

iv. Re-opening of closed mines at Indian Copper Complex
(ICC) (Jharkhand)

The Company has made efforts to re-open the closed mines,
development of new underground mine at Singhbum Copper Belt
of ICC namely, Kendadih and Rakha mines. Mine-wise status is
given below:

(a) Kendadih Mine: Stage-I (in-principle) forest clearance for
413.477 ha of balance forest land within the 1139.60-ha
Kendadih mining lease has been approved by MoEF&CC
on 20.06.2025. Amendment of Environmental Clearance
from existing 726.13 ha to 1139.60 ha over total mining
lease area has been granted on 06.09.2025. Subsequently,
the lease deed has been executed till 02.06.2043, enabling
the commencement of mining operations to enhance the
ore production capacity from 0.21 MTPA to 0.40 MTPA.

(b) Rakha mine: Stage-I (in-principle) forest clearance for
balance 98.932 ha of forest land within the 785.091 ha
Rakha mining lease has been approved by MoEF&CC on
20.06.2025. Amendment of Environmental Clearance from
existing 686.159 ha to 785.091 ha over total mining lease
area has been granted on 13.08.2025. Subsequently, the
lease deed has been executed till 28.08.2041, enabling the
commencement of mining operations to enhance the ore
production capacity from 0.30 MTPA to 3.00 MTPA through
Mine Developer and Operator (MDO) mode. Preliminary
activities for development of underground mine at Chapri
and commissioning of new matching capacity concentrator
plant at Rakha for an initial contract period of twenty (20)
years with a provision for further extension of ten (10) years
is under process by South West Mining Ltd (the MDO).

Exploration:

During FY 2025-26, the focus on exploration has been enhanced
considerably to assess depth extension of the ore bodies in
different leases of HCL as well as to enhance copper ore
inventory of the Company. During FY 2025-26, 45,893.50 meter
of surface drilling and 19,081.55 meter of underground definition
drilling have been completed in different leases. General (G2
level) exploration is in progress to prove the ore body up-to -300
mRL for the entire Khetri mining lease area. Depth exploration
has been taken up in Kolihan mining lease to explore
sustainability of upcoming mining production below the zero (0
mRL) by finding out the copper resource below zero (0 mRL).

The Company added 12.05 million tonnes of Copper Ore in its
Reserves & Resource base during FY 2024-25. As on
01.04.2025, the total Reserve & Resource of Copper Ore within
HCL's mining leases was 767.37 million tonnes of ore with
average grade of 0.94 % copper. It is expected that the
exploration activities taken up during the financial year will
enhance copper ore Reserves & Resource of the Company.

The geological drilling and associated work completed in FY
2025-26 is highest since last 10 years of the exploration activities
undertaken by the Company.

5. Significant or material orders passed by the Regulators or
Courts or Tribunals

No significant or material orders have been passed by the
Regulators or Courts or Tribunals impacting the going concern
status and Company's operations in future.

6. Utilization of funds raised through preferential allotment
or QIP during the year

During the year there is no unutilized fund raised through
preferential allotment or QIP during the year.

7. Management Discussion and Analysis

A report on Management discussion and analysis of the
performance of the Company is enclosed as Annexure-I.

8. Information in respect of Subsidiary, Associate and Joint
Venture

Khanij Bidesh India Ltd (KABIL), a Joint Venture Company (JVC)
between National Aluminium Company Ltd (NALCO), HCL and
Mineral Exploration and Consultancy Ltd (MECL), was
incorporated on 08.08.2019 with the objective to identify, acquire,
develop, process and make commercial use of strategic and
other minerals in overseas locations for supply to India and boost
“Make in India” campaign. The total paid up capital of KABIL as
on 31.03.2026 is ^100 Crore and shareholding of NALCO, HCL
and MECL in KABIL is in the ratio of 40:30:30. The cumulative
investment of HCL in KABIL as on 31.03.2026 was ^30.00 Crore
against which the company share of accumulated loss as on
31.03.2026 is ^5.05 Crore. The Board of Directors of HCL in its
meeting held on 07.10.2025 has approved amendment in the

Joint Venture Cum Shareholders Agreement dated 01.08.2019
executed among NALCO, HCL and MECL for altering the
shareholding ratio of NALCO, HCL and MECL from existing
40:30:30 to 60:35:05 respectively. However, clearance in respect
of the above decisions is pending from Ministry of Mines and
Department of Investment & Public Asset Management (DIPAM).
Chhattisgarh Copper Ltd, a JVC between HCL and Chhattisgarh
Mineral Development Corporation Ltd (CMDC), was
incorporated on 21.05.2018 for exploration, mining and
beneficiation of copper and its associated minerals in the State of
Chhattisgarh. The total paid up capital of CCL as on 31.03.2026
is ^0.73 Crore and shareholding of HCL and CMDC in CCL is in
the ratio of 74:26. The cumulative investment of HCL in CCL as
on 31.03.2026 was ^0.54 Crore against which the company
share of accumulated loss as on 31.03.2026 is ^0.47 Crore.
Information in respect of Subsidiary, Associate & Joint Venture
(Form AOC 1) pursuant to Section 129(3) of the Companies Act,
2013 read with Rule 5 of Companies (Accounts) Rules, 2014 is
given in Notes to Financial Statements.

9. Deposits

The Company has not taken any deposits covered under or
which are not in compliance with the requirements of Chapter V
of the Companies Act, 2013.

10. Related Party Transactions (RPTs)

Detail of RPT in Form AOC-2 is enclosed as Annexure - II. Policy
on RPTs and dealing with RPTs has been formulated and
uploaded at the Company's website which can be accessed at
https://www.hindustancopper.com/Content/PDF/Policy%20on%20MRPT_RPT.pdf

11. Maintenance of cost records

The Company is required to maintain cost records as specified by
the Central Government under section 148 of the Companies
Act, 2013, and accordingly such accounts and records are being
maintained.

12. Procurement from MSEs

HCL has achieved the target procurement of 25% from MSEs
during the FY 2025-26.

13. Compliance of the provisions relating to the Maternity
Benefit Act, 1961

The Company is in compliance with the Maternity Benefit Act,
1961.

14. Name of companies which became and cease to be
Subsidiaries, JVs or Associate Companies

Nil during the year.

15. Establishment of Vigil mechanism

The Company has a Whistle Blower Policy which provides
adequate safeguards against victimization of employees /

directors. It provides direct access to the Chairman of the Audit
Committee in exceptional cases. The Policy has been hosted at
the Company's website and can be accessed at
https://www.hindustancopper.com/Content/PDF/Whistle_Blower_Policy.pdf

16. Application made or any proceeding under the
Insolvency and Bankruptcy Code, 2016

Not applicable as no application has been made or proceeding
pending under the Insolvency and Bankruptcy Code, 2016.

17. Difference in valuation at the time of one-time
settlement and valuation while taking loan from the Banks or
Financial Institutions

Not applicable as no one time settlement was done during the
year.

18. Internal Committee under the Sexual Harassment of
Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013

The Company has complied with the provisions relating to
constitution of Internal Complaints Committee under the Sexual
Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013. The Composition of the Internal
Complaints Committee is available at the website of the
Company at www.hindustancopper.com.

19. Risk Management Policy

The Board of Directors of the Company has developed and
implemented a Risk Management Policy for the Company
including identification therein of elements of risk, which in the
opinion of the Board, may threaten the existence of the
Company.

20. Dividend Distribution Policy

The Company has a Board approved 'Dividend Distribution
Policy' prepared in terms of Regulation 43A of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015
{SEBI (LODR), 2015}. The Policy is available at the
website of the Company and can be accessed at
https://www.hindustancopper.com/Content/PDF/Dividend_Distribution_Policy.pdf

21. Internal Financial Controls

The Company has in place adequate internal financial control
with reference to financial statements commensurate with its size
and operations.

22. Conservation of Energy, Technology Absorption,
Foreign Exchange Earnings and Outgo

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 Rule 8
of the Companies (Accounts) Rules, 2014, is enclosed as
Annexure-III forming part of this report.

23. Safety

Mine Safety & Environment management remains a high priority
area of the Company. The Company is always aiming to achieve
“Zero Accident Potential” and committed to continue sustainable
mining by diligently adhering the 'Sustainable Development
Framework' stipulated by Indian Bureau of Mines (IBM),
Government of India.

The Company continues to maintain the tradition of achieving
recognition for its safety performance and, like previous years,
this year also received a number of awards in Annual
Metalliferous Mine Safety Week under the aegis of respective
regional office of Director General of Mine Safety (DGMS),
Government of India as detailed below:

(i) HCL achieved commendable results at the 54^th All India
Mines Rescue Competition (Coal & Metal) - 2025, held at
Nagpur, organized under the aegis of the Directorate
General of Mines Safety. MCP won 2^nd prize for Rescue &
Recovery Drill and 3^rd prize for overall team performance.
KCC got 2^nd prize for Metal Mines and 3^rd prize for Rescue &
Recovery.

(iii) KCC won various awards at 39^th Annual Mines Safety Week
2025-26, Ajmer Region. Khetri mine won 1^st prize in plant
machinery, maintenance & operation of winder, 2^nd prize in
publicity propaganda & awareness, vocational training, first
aid, accident statics & control measures such as SMP &
Emergency preparedness and 3^rd prize in overall
performance. Kolihan mine won 2^nd prize in Occupational
Health & Safety, Welfare amenities and 3^rd prize in Overall
Contractor performance.

(iv) Teams from KCC unit delivered an impressive performance
at the 11^th Intra Zonal Rescue Competition - 2025 held from
11th to 13^th October, 2025 at Rampura Agucha Mines,
Hindustan Zinc Ltd, Rajasthan. Kolihan Team won 1^st prize
in Rescue Relay, 2^nd prize in FAB and 3^rd prize in Overall
performance. Khetri Team won the Best Member Award and
2^nd prize in Rescue & Recovery.

(v) In the 63^rd Annual Metalliferous Mines Safety Week
Celebration 2025-26, under the aegis of Directorate
General of Mines Safety, Chaibasa region, Chaibasa,
Surda copper mine of ICC has won seven prizes as under:

(a) 1^st prize in Statutory Manpower, provisions & records
(Departmental)

(b) 1^st prize in Drilling, Blasting & safe handling of
explosives

(c) 1^st prize in Overall Contractor performance

(d) 1^st prize in Statutory Manpower, provisions & records
(Contractual)

(e) 2^nd prize in Dust Control, OHS & First Aid

(f) 2^nd prize in VTC: Training facilities/aids

(g) 2^nd prize in Mine working method, Mine support & SSR

(ii) In the 3^rd Annual Metalliferous Mines Safety Week
Celebration 2025-26, under the aegis of Directorate
General of Mines Safety, Parasia region, Parasia,
Malanjkhand underground copper mine of MCP has won
nine prizes as under:

a. 1^st prize in overall performance and Mine Plan &
Records

b. 2^nd prize in Plant & Machinery

c. 1^st prize in blaster trade test & electrician trade test

d. 2^nd prize in cable operator, drill operator, LPDT/LHD
operator & first-aid (male) trade test

(vi) In the 63^rd Annual Metalliferous Mines Safety Week
Celebration 2025-26, under the aegis of Directorate
General of Mines Safety, Chaibasa region, Chaibasa,
Kendadih copper mine of ICC has won six prizes as under:

(a) 1^st prize in Publicity & Propaganda

(b) 1^st prize in VTC: T raining facilities/aids

(c) 1^st prize in Fire Fighting, Emergency preparedness,
Mock drills

(d) 2^nd prize in Winding, Underground machineries,
Garage, Plant & Equipment maintenance

(e) 2^nd prize in Overall Contractor performance

(f) 2^nd prize in Statutory Manpower, provisions & records
(Contractual)

(vii) HCL organized an International Seminar on "Critical &
Strategic Minerals for Viksit Bharat @2047 - Sustainable
Mining, Processing & Extraction Technologies and Global
Partnership" on 09.11.2025.

(viii) The Zonal Mines Rescue Competition 2025, organized by
DGMS, Chaibasa Region and hosted by UCIL, Jaduguda
was held on 20^th to 21^st November, 2025 at UCIL's Bhatin
Mine. Two rescue teams from ICC unit participated,
showcasing strong technical and emergency response
capabilities. The Team won prize in Overall Runner Up, 2^nd
Best in First Aid and 2^nd Best in Theory.

(ix) During FY 2025-26, two significant events were organized
aimed at reinforcing safety practices in its mining
operations:

(a) Launch & Distribution of Pocket SOP Diary - ensuring
easy access to critical safety protocols for daily
operations and

(b) Training on Explosives Safety - A dedicated training
session on the storage, transportation, handling and
use of explosives in mines.

(x) Besides the above, special training, regular refresher
training program and on-the-job training are provided to all
employees. Safety Campaigns like “Annual Mines Safety
Week”, “Fire Services Day”, “Fire services week” and
“Industrial Safety Day” celebrations are conducted regularly
with active participation of employees in all the Units of HCL.

24. Environmental and Pollution Control Initiative/
Measures

During FY 2025-26, following Environmental and Pollution
Control Initiative / Measures were undertaken::

(i) A separate pumping system and dedicated pipeline have
been installed at the MCP unit for the collection and

complete recycling of mine and dump seepage water. Mine
pit water is being recycled through multistage pumping
arrangement and collected in recycled holding pond near
concentrator plant. From the recycled holding pond it is
being supplied to Concentrator plant process. Since
inception the project has carried out extensive tree
plantation in open areas available within and around the
mine premises in consultation with expert agency i.e.
Madhya Pradesh Rajya Van Vikash Nigam Limited.

(ii) MCP unit has been maintaining Zero Liquid Discharge
(ZLD) System, separate pumping and dedicated pipeline
installed for collection and complete recycling of mine and
dump Seepage water. Mine pit water is being recycled
through multistage pumping arrangement and collected in
recycled holding pond near concentrator plant. From the
recycled holding pond it is being supplied to Concentrator
plant process. Similarly, dump seepage water at Bhimjori
and Khursipar are collected in concretized sumps. Both the
sumps have pumping and separate pipeline arrangement to
collect and recycle seepage water to process water holding
tank at water treatment plant. From the water treatment
plant seepage water is supplied to Concentrator plant for
reuse in process.

(iii) At MCP unit, mineral handling area has been provided with
dust control arrangements. At primary crusher & transfer
points, water sprinkling system is in place. At secondary
crushing, tertiary crushing & screening area, water
scrubber system is in place. Regular water sprinkling over
haul road is being done through two nos. dedicated 45 KL
capacity water tankers. Wet drilling is practiced to reduce
fugitive emissions. Continuous Ambient Air Quality
Measuring Station (CAAQMS) has been installed at Town
Administration building premises of MCP unit and the
information is uploaded in MPPCB Portal live. Real Time
Online Water Monitoring System installed at Chhinditola is
functioning properly and the data is transmitted live on
MPPCB Portal. Online flow meter with telemetry system
have been installed at two different locations (a) Mine
dewatering pipeline near reclamation pond, (b) Intake well
pipe line near Water Treatment Plant. Environmental
display board is installed at R&D Building premises of MCP
unit. Two new piezometers have been installed and
commissioned for systematic monitoring of ground water
levels and quality. Daily data is being recorded to assess
any impact of mining operations on the local aquifer system.
Plantation drive of 1000 native species saplings was carried
out near Bhimjori Sump. All Compliances regarding
Environment are followed diligently with periodic
inspection.

(iv) Saplings of native species are being planted in and around
the Mining Lease area, backfilled and reclaimed areas,
around water bodies and along roads, etc. of MCP unit.

(v) 100% of Mine discharge water/STP treated water at KCC
unit is getting recycled in the system by using it in the
mineral processing plant. The air borne dust during various
mining operations is regularly suppressed by proper water
sprinkling arrangements. Water spraying system on
conveyor belt has been installed and effective operation of
Rotocyclone has been implemented in concentrator plant
for control of dust. Milli Second delay detonators are used in
blasting to control noise & ground vibration and to get better
fragmentation. Wet drilling is practiced invariably for
reducing the generation of dust during drilling operation.
Monsoon Plantation drive has been conducted in KCC unit
where 4,506 saplings have been distributed and 4,200
saplings have been planted in mines / township area.

(vi) To reduce dependence on fresh water requirement for
beneficiation plant operations laying of pipeline as per MoU
singed with Khetri Nagar Palika for supply of 1.2 MLD
treated sewage water is nearly completed. This will reduce
the fresh water foot print of KCC unit.

(vii) A Monsoon Plantation Drive was conducted in the KCC Unit,
during which 8,500 saplings were procured and planted in
the mines and township areas, and also distributed to
nearby villagers.

(viii) Ambient Air, Noise and Effluent Monitoring has been carried
out at ICC unit periodically through Jharkhand State
Pollution Control Board web portal. Three nos. of Telemetry
based water flow meter has been installed at Surda,
Kendadih and Rakha Mine to check the ground water
abstraction. Five nos. of new water flow meters have been
installed and commissioned at different location of inflow for
surface water to quantify the water drawn from river. The

distribution and installation of 30 nos. of bio toilet in nearby
villages is being carried out in a proper and systematic
manner. Installation of 3 nos. Continuous Ambient Air
Quality Monitoring System (CAAQMS) for Surda mine is
under process of procurement. An Electrolyte machine and
a CBC machine at CHC-Mosabani, Kendadih and
Anumandal Hospital, Ghatshila is under process of
procurement, to ensure proper medical checkup for local
villagers. Monitoring of radioactve element Radon (Rn) in
mine water of Rakha and Kendadih Mines through BARC is
under progress. ICC unit has distributed 5000 nos. of tree
sapling among the local people of the unit. 3400 nos. local
growing tree saplings planted at Surda & Kendadih Mine on
the occasion of World Environment Day.

(ix) TCP unit has comprehensive effluent treatment system
consisting of primary, secondary, and tertiary treatment and
being operated continuously to achieve the quality of the
treated effluent as per Pollution Control Board. TCP unit is
also a member of 'Mumbai Waste Management Limited
Taloja, a Common Hazardous Waste Treatment, Storage
and Disposal Facility.

25. Research and Development

(i) Scientific Study and numerical modelling at Malanjkhand
underground copper mine is being carried out by M/s
CIMFR, Nagpur and M/s NIRM, Nagpur.

(ii) Modelling and simulation studies for designing the
ventilation system of MCP is being carried out by PMRC
Pvt. Ltd, Dhanbad.

(iii) Slope Monitoring Study of Malanjkhand mine for a period of
three years (2023 to 2026) is being carried out by CIMFR,
Dhanbad.

(iv) Process audit and capacity augmentation of MCP
Concentrator plant under R&D works has been awarded to
NML, Jamshedpur and the work has been completed.

(v) The work of subsidence study for Khetri and Kolihan Mine
leases has been awarded to M/s IIT-ISM, Dhanbad.

(vi) R&D work for Development of an IoT (Internet of Things)
Enabled Online Monitoring and Data Analysis System for
Rock Mechanics Instrumentations at Kolihan Copper Mine
has been awarded to M/s IIT-Kharagpur.

(vii) Initiative has been taken by IBM to address the
deterioration in metallurgical results and improve recovery
performance at the KCC concentrator plant. The initiative
has been successfully completed.

(viii) Three-Dimensional Numerical Modeling Studies for
deciding stoping parameters and support system between
120 ML and 60 ML, and between 60 ML and 0 ML at
Banwas Block of Khetri Copper Mine was awarded to IIT-
Kharagpur

(ix) Feasibility Study for Tailing Water Recovery has been
awarded EIL.

(x) Tailing dam leakage study at KCC unit has been
completed.

(xi) Subsidence Monitoring Survey of Surda mining lease,
Kendadih mining lease and Rakha mining lease of ICC unit
for Three (03) years has been awarded to IIT-ISM,
Dhanbad.

(xii) Installation of Vibratory Disc Cup Mill Pulverizer at
Mosabani of ICC unit for pulverization of Ore, tailing and
concentrate samples has been completed.

(xiii) Study is being undertaken to enhance the plant capacity
from 0.4 to 0.9 MTPA of Ore Milling at Mosabani
Concentrator plant.

(xiv) Procurement and installation are being undertaken for PH/
EC/ TDS Meter for R&D Use at ICC unit.

(xv) Study is being undertaken for Critical mineral in Ore,
Tailings and Concentrate of ICC unit by MECL.

26. Awards and Accolades:

(i) Khetri Mine bagged overall 2^nd prize in underground
category along with 1^st prize in Environmental Monitoring,
2^nd prize in Mineral Beneficiation, 2^nd prize in Sustainable
Development and 3^rd prize in Waste Dump Management in
the 36^th Mines Environment and Mineral Conservation
Week celebration held on 17.01.2026 at Jodhpur under the
aegis of IBM, Ajmer.

(ii) Kolihan Mine also won 2^nd prize in Waste Dump
Management and 3^rd prize in Mineral Conservation in the
36^th Mines Environment and Mineral Conservation Week
celebration held on 17.01.2026 at Jodhpur under the aegis
of IBM, Ajmer.

(iii) On the occasion of the 8^th GST Day celebrated on

01.07.2025 in Jabalpur, Malanjkhand Copper Project was
honored with a memento and appreciation certificate. The
unit is among the Top 25 Excellent Taxpayer companies
under the CGST Jabalpur Division for FY 2024-25.

(iv) Both KCC and MCP were felicitated with a 5-Star Rating for
the year 2023-24 by the Indian Bureau of Mines on

07.07.2025 in Jaipur.

(vi) Shri Sanjiv Kumar Singh, CMD, HCL was honored with the
Mining & Minerals Excellence Award 2025 - “CEO of the
Year” at the 11^th Asian Mining Congress organized by MGMI
in Kolkata on 30.10.2025.

27. Corporate Social Responsibility (CSR)

The CSR Report in the prescribed format as per the Companies
(Corporate Social Responsibility Policy) Rules, 2014 is at
Annexure-IV.

28. Vigilance Activities

Vigilance is basically and admittedly a managerial function and,
therefore, it is an integral part of the duties of employees. CVO
advises management on all matters pertaining to vigilance. As an
extended arm of the Central Vigilance Commission in its exercise
of superintendence over Vigilance Administration of the
Company, CVO provides the link to the Administrative Ministry
and the CBI. Vigilance plays a crucial role in fostering integrity,
transparency and accountability within the organization. It
ensures adherence to rules and regulations, prevents
misconduct and promotes a culture of ethical behaviour, which
eventually paves the way towards enhanced productivity and
organizational effectiveness.

The Company focus on preventive / proactive measures through
improvement of systems and procedures, ensuring
transparency, adherence to established policies and guidelines
etc. Systems improvement are implemented regularly. During
FY 2025-26, including the three-month campaign period,
following Programs were organized as Preventive Vigilance
activities:

(a) Training was imparted on:

(i) Drafting of Charge sheet & Disciplinary Proceedings,

(ii) HCL Conduct Rules,

(iii) Investigation & Report,

(iv) Preventive Vigilance,

(v) Cyber Hygiene & Security. Total 1675 man days training
were imparted during FY 2025-26;

(b) Seminars were organized on the following:

(i) Business ethics on 21.04.25,

(ii) Disciplinary Proceedings on 20.06.2025,

(iii) Cyber Hygiene & Security on 01.07.2025 (Digital India
day),

(iv) CTE type Intensive Examination on 18.08.2025,

(v) Public Procurement on 30.08.2025 (Procurement
Guidelines, GFRs, Procurement Manuals & various
aspects of Procurement- provisions for 'Make In India',
'MSE', National Security provisions, etc.)

(c) A kit was organized by the young & vibrant team members of
Bharat Scout & Guides, Shalimar addressing the menace of
corruption;

(d) Quiz programs were organized among employees on
several vigilance terminologies;

(e) Programs were organized at various schools and colleges
to acquaint students with their rights and duties towards the
progress of our nation and encourage them to adopt ethical
values;

(f) Fourteen no (14) Outreach activities were conducted by
Chief Vigilance Officer, HCL. in which 8 nos. interactive
session was conducted among the students and faculty of

A. Indian Institute of Engineering Science and Technology
(IIEST), Shibpur (03.09.2025),

B. Indian Institute of Social Welfare and Business
Management (IISWBM), Kolkata (09.09.2025),

C. National Institute of Pharmaceutical Education and
Research, Kolkata (10.09.2025),

D. Kendriya Vidyalaya, Ballygunge, Kolkata (02.11.2025),

E. Indian Statistical Institute, Kolkata (11.11.2025),

F. Indian Institute of Technology, Kharagpur (08.01.2026),

G. Punjab Engineering College, Chandigarh (26.02.2026),

H. IMMT, Bhubaneswar (28.02.2026) and Six (6) nos.
interactive session were conducted among the employees
of National Aluminum Company Ltd, Geological Survey of
India, Dedicated Freight Corridor Corporation of India Ltd,
Ministry of Mines, New Delhi, Uttar Pradesh Metro Rail
Corporation Ltd and Oil India Ltd.

In adherence to complaint handling mechanism, all the
complaints which were received during FY 2025-26 had been

disposed within the period of stipulated 90 days from the
complaint stage. By addressing issues proactively, organizing
awareness campaign through seminars & workshops and
streamlining the operations, the objective of reducing
complaints, improving the productivity and achieving sustainable
growth was achieved.

29. Official Language Implementation

During FY 2025-26, HCL made constant endeavor to increase
the use of Official Language Hindi in its Units/Offices. Hindi
Fortnight/Hindi Week/ Hindi Diwas were celebrated in the
Units/Offices of HCL from 14.09.2025 to 29.09.2025. On this
occasion, the messages of Hon'ble Home Minister, Hon'ble
Mines Minister and CMD, HCL were circulated/read out. During
the fortnight, various competitions were organized with a view to
increase interest among employees towards the Official
Language and winners were awarded on closing ceremony held
on 30.09.2025.

The Parliamentary Committee on Official Language inspected
the corporate office of HCL on 24.12.2025 to evaluate the
progressive use of the Official Language Hindi. During the
inspection, HCL was awarded a certificate of “Excellent” for its
compliance with the Official Language Rules/Regulations
satisfactory and activities carried out in the field of Official
Language.

HCL was awarded a shield by the Town Official Language
Implementation Committee (Undertakings), Kolkata for its active
participation in the meeting held on 11.02.2026 in recognition of
its Active Cooperation.

Also, Hindi competitions were organized in every quarter on
different topics. Employees were constantly motivated to use
Hindi in their day-to-day official work. Hindi Workshops were
conducted at Corporate Office, Units/Offices at regular intervals.
Regular review of progressive use of Hindi was carried out in
quarterly meetings of Official Language Implementation
Committee under the Chairmanship of CMD at Corporate Office
and Unit Heads at Units. During FY 2025-26, HCL participated in
the half-yearly meetings organized by the Town Official
Language Implementation Committee (PSUs), Kolkata. The
progress of use of Hindi language is being reviewed regularly at
Board meetings. All recruitment advertisements were bilingual.
Notices etc. were uploaded on the Company's website in Hindi
and English.

30. Business Responsibility and Sustainability Report

Pursuant to Regulation 34 (2) of SEBI (LODR), 2015, Business
Responsibility and Sustainability Report for FY 2025-26
describing various initiatives taken by the Company on social,
environmental and governance perspective, is available at the
website of the Company and can be accessed at
https://hindustancopper.com/Content/PDF/Business-
Responsibility-Sustainability-Report-2025-26.pdf

31. Annual Return

Annual Return pursuant to Section 92(3) of the Companies Act,
2013 is available at the website of the Company and can be
accessed at https://hindustancopper.com/Content/Admin/FlatFile/Annual-
Return-2025-26.pdf

32. Corporate Governance

Corporate Governance Report as per SEBI (LODR), 2015 is
enclosed as Annexure-V forming part of this report together with
Certificate on Corporate Governance.

33. DPE Guidelines on Corporate Governance

The Company has complied with the Guidelines on Corporate
Governance for Central Public Sector Enterprises issued by
Department of Public Enterprises, Government of India.

34. Number of meetings of the Board

During FY 2025-26, thirteen Board meetings were held i.e., on

30.04.2025, 27.05.2025, 30.06.2025, 31.07.2025,

14.08.2025, 07.10.2025, 11.11.2025, 24.11.2025, 31.12.2025,

21.01.2026, 05.02.2026, 16.03.2026 and 30.03.2026.

35. Directors' Responsibility Statement

In terms of Section 134(5) of Companies Act, 2013, your
Directors confirm:

(i) That in the preparation of the Annual Accounts for the year
ended 31.03.2026 the applicable Accounting Standards has
been followed along with proper explanations relating to material
departures.

(ii) That such Accounting Policies have been selected and
applied consistently and made adjustments and estimates which
are reasonable and prudent so as to give a true and fair view of
the State of Affairs of the Company at the end of 31.03.2026 and
of the Profit and Loss of the Company for the FY 2025-26.

(iii) That proper and sufficient care has been taken for the
maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities.

(iv) That the Directors have prepared the Annual Accounts on a
going concern basis.

(v) That the Directors have laid down internal financial controls
to be followed by the Company and that such internal financial
controls are adequate and operating effectively.

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

36. Declaration by Independent Directors

Independent Directors of the Company have given declaration to
the effect that they meet the criteria of independence as provided
under Section 149(6) of the Companies Act, 2013.

37. Familiarization Program for Independent Directors

Independent Directors are familiarized through induction
program / presentation with the overview of business,
operations, new projects and business model of the Company.
Visit to Units is also organized as per their convenience. They are
also updated on the changes / developments taking place
including in the relevant statutory / regulatory requirements from
time-to-time. Detail of Directors' Training / Familiarization
Program has been hosted at the Company's website and can be
accessed at

https://www.hindustancopper.com/Content/PDF/Fam_Pro_Ind_Dir.pdf

38. Opinion of the Board with regard to integrity, expertise
and experience (including the proficiency) of the
Independent Directors

In the opinion of the Board, the Independent Directors of HCL are
person of integrity and possesses expertise, experience and
proficiency required to discharge their duty.

39. Manner of Annual evaluation of Board, Committees and
individual Directors

HCL being a Government Company, performance evaluation

and criteria of evaluation of its Directors is decided and
undertaken by the Government of India.

40. Code of Conduct

The Company has formulated a Code of Conduct applicable to
the Directors as well as Senior Management and the same has
been circulated to all concerned personnels and is posted at the
Company's website and can be accessed at
https://www.hindustancopper.com/Content/PDF/CC_Dir_Sr_Exe.pdf All
Board members and senior management personnel have
affirmed compliance of the Code for the year ended 31st March,
2026.

41. Directors and Key Managerial Personnel

During FY 2025-26, following changes took place in the
composition of Directors and KMP:

Shri Avinash Janardan Bhide was appointed as Non-Official
(Independent) Director on the Board of HCL by the Ministry of
Mines, Government of India, vide Order No. Met. 3-10/2/2020-
Met.III dated 01.04.2025, for a period of one year from the date of
notification of his appointment, or until further orders, whichever
is earlier. Shri Bhide ceased to be Non-Official (Independent)
Director, HCL on completion of his tenure on 31.03.2026.

Shri Ghanshyam Sharma ceased to be Director (Finance), HCL
on attaining the age of superannuation on 31.05.2025.

Shri Sanjiv Kumar Singh, CMD, HCL assumed the Additional
Charge of Director (Finance) w.e.f. 02.06.2025 in terms of Order
No. Met3-10/3/2020- METAL III dated 27.05.2025 issued by the
Ministry of Mines, Government of India. He also held the post of
CFO w.e.f. from 02.06.2025.

Shri RVN Vishweshwar has been appointed as Director
(Finance), HCL w.e.f. 29.07.2025 in terms of Ministry of Mines
Order No. Met3-10/1/2024-METAL III dated 25.07.2025.

Consequent upon joining of Shri Vishweshawar as Director
(Finance), Shri Sanjiv Kumar Singh, CMD, HCL ceased to hold
the Additional Charge of the post of Director (Finance) and CFO
w.e.f. 29.07.2025.

During FY 2025-26, Dr. Sanjeev Kumar Sinha, Director
(Operations) was holding additional charge of the post of Director
(Mining) in terms of Ministry of Mines Order No. Met3-10/1/2020-
METAL III dated 27.03.2025, 19.06.2025, 25.08.2025 and

20.03.2026.

Shri Mritunjay Kumar Dev assumed the charge of Company
Secretary & Compliance Officer w.e.f. 03.04.2025.
Subsequently, Shri Chhattar Singh Singhi ceased to hold the
post of Company Secretary & Compliance Officer w.e.f.
03.04.2025.

The Board places on record its appreciation for the valuable
services and contribution made by Shri Ghanshyam Sharma and
Shri Avinash Janardan Bhide during their tenure on the Board of
HCL.

42. Secretarial Audit Report

Secretarial Audit for FY 2025-26 has been carried out by M/s S
Basu & Associates, Practicing Company Secretaries, in
compliance with Section 204(1) of the Companies Act, 2013. The
Report of the Secretarial Auditor is enclosed as Annexure-VI to
this report. Additionally, in compliance with the requirements of
Regulation 24A of SEBI (LODR), 2015, the Annual Secretarial
Compliance Report has been submitted to the Stock Exchanges
within the prescribed timelines. With regard to observations of
Secretarial Auditor about composition of the Board, Audit
Committee and Nomination and Remuneration Committee, it is
stated that due to vacant post of Directors, composition of the
Board of HCL was not as per statutory provisions during FY 2025¬
26 and therefore, Audit Committee and Nomination and
Remuneration Committee could not be constituted during FY
2025-26. HCL, being a Government Company and in terms of its
Articles of Association, appointment of all Directors on its Board
is done by the President of India through orders issued by the
Ministry of Mines, Government of India. The Company has no
role to play in the appointment process. The Company has
requested the Ministry of Mines, Government of India to fill up the
vacant posts of Directors and the matter is under consideration of
the Government.

43. Auditors

M/s. P. A. & Associates, Chartered Accountants, Bhubaneswar
was appointed as Statutory Auditors to audit the accounts of the

Company for FY 2025-26 by Comptroller and Auditor General of
India (C&AG).

M/s Chatterjee & Co., Kolkata was appointed as Cost Auditor of
the Company for carrying out the Cost Audit of the mines and
plants of the Company in accordance with the provisions of
Section 148 of the Companies Act, 2013 and Companies (Cost
Records & Audit) Rules 2014 as amended from time to time for
FY 2025-26.

44. Comments of C&AG

The C&AG has not given any comment upon or supplement to
Statutory Auditor's Report. Nil comment received from C&AG
under the Companies Act on the Accounts of the Company for the
year ended 31.03.2026 is annexed to this report.

45. Appreciation

The Board of Directors wishes to place on record its sincere
appreciation for the dedicated efforts of all employees of the
Company during the year under review. The Board is also deeply
grateful for the continued guidance and support received from
the Ministry of Mines, various other Ministries and Departments
of the Government of India, and the State Governments of
Rajasthan, Jharkhand, Madhya Pradesh, Maharashtra, Gujarat
and West Bengal. The Board further acknowledges the valuable
cooperation extended by the Company's bankers, customers,
and the office bearers of the recognized Trade Unions across
various Units and the Head Office. Lastly, the Board expresses
its heartfelt thanks to all shareholders and investors for their
unwavering trust and confidence in the Company.

For and on behalf of the Board of Directors

Sd/-

Anupam Misra

Pl_ace: K_olkata Chairman & Managing Director

Date: 04.08.2026 (DIN-07637439)