On the Abridged Standalone financial statements
To the Board of Directors of Jindal Steel & Power Limited
The accompanying abridged standalone financial statements which comprise the abridgedstandalone balance sheet as at March 31 2016 the abridged standalone statement of profitand loss and abridged standalone cash flow statement for the year then ended and relatednotes are derived from the audited standalone financial statements of Jindal Steel &Power Limited (the Company) as at and for the year ended March 31 2016. Weexpressed a qualified audit opinion on those standalone financial Statements in our reportdated May 4 2016.
The abridged standalone financial statements do not disclosures required by theaccounting principles generally accepted in India including the Accounting Standardsnotifiedunder 133 of the Companies Act 2013 ("the Act") read with Rule 7 ofthe Companies (Accounts) Rules 2014 issued by Ministry of Corporate Affairs. Reading theabridged standalone financial statements therefore is not a substitute for reading theaudited standalone financial statements of the Company.
MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companys Board of Directors is responsible for the preparation of a summaryof the audited standalone financial statements in accordance with the Accounting 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014 issued by Ministry ofCorporate Affairs and accounting principles generally accepted in India.
Our responsibility is to express an opinion on the abridged standalone financialstatements based on our procedures which were conducted in accordance with Standard onAuditing (SA) 810 "Engagements to Report on Summary Financial Statements"issued by the Institute of Chartered Accountants of India.
In our opinion the abridged financial statements derived from the audited standalonefinancial statements of the Company as at and for the year ended March 31 2016 are a fairsummary of those financial statements in accordance with the Accounting Standardsspecified under Section 133 of the Act read with of the Companies (Accounts) Rules 2014and accounting principles generally accepted in India. However the abridged financialstatements are misstated to the equivalent extent as the audited of the Company as at andfor the standalonefinancial year ended March 31 2016.
a) As detailed in note 40 (i) of the standalone financial statements based on theOrder of Honble Supreme Court of India the Company paid an additional levyof Rs 295per metric ton on gross coal extracted from operational mines. Through March 31 2015such levy on the gross extraction amounts to Rs 2082.23 crore. Based on legal opinionthe Company had recorded Rs 807.77 crore in the previous year as an exceptional itemrepresenting the levy on net extraction (run of shale rejects and ungraded middling) ofcoal. Had the gross levy been recorded net loss before tax for the year ended March 312016 would have been higher by Rs 1274.46 crore and reserves and surplus as at March 312016 would have allthe been lower by Rs 1274.46 crore. In respect of abovematter our audit report for the year ended March 31 2015 was similarly qualified.
b) As detailed in note 40 (ii) of the standalone financial statements and referredabove note the Company has not made adjustment in the net carrying value of investmentmade in mining assets including land infrastructure and clearance etc. of Rs 425 croreas at March 31 2016 pending finalization of the compensation claim filed by the Companywith the Government authorities. Accordingly we are unable to comment on the matterincluding any consequential adjustments that may be required in this regard in thesefinancial statements. In respect of above matter our audit report for the year endedMarch StandardsnotifiedunderSection 31 2015 was similarly qualified.
Our adverse audit opinion stated that except for the effects of our observation statedin (a) above and possible effects of our observations in (b) above thosefinancialstatements give the information required by the Act in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at 31st March 2016 and its loss andits cash flows for the year ended on that date.
For S.R. Batliboi & Co. LLP
ICAI Firm registration number: 301003E/E300005
per Anil Gupta
Membership no.: 87921
Place: New Delhi
Date: May 4 2016