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JSW Steel Ltd.

BSE: 500228 Sector: Metals & Mining
NSE: JSWSTEEL ISIN Code: INE019A01038
BSE 00:00 | 31 Jan 716.65 14.65
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704.05

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NSE 00:00 | 31 Jan 716.45 14.75
(2.10%)
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708.70

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OPEN 704.05
PREVIOUS CLOSE 702.00
VOLUME 51636
52-Week high 789.95
52-Week low 520.10
P/E 33.29
Mkt Cap.(Rs cr) 173,229
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 704.05
CLOSE 702.00
VOLUME 51636
52-Week high 789.95
52-Week low 520.10
P/E 33.29
Mkt Cap.(Rs cr) 173,229
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

JSW Steel Ltd. (JSWSTEEL) - Auditors Report

Company auditors report

To the Members of JSW Steel Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of JSW Steel Limited("the Company") which comprise the Balance sheet as at March 31 2022 theStatement of Profit and Loss including the statement of Other Comprehensive Income theCash Flow Statement and the Statement of Changes in Equity for the year then ended andnotes to the standalone financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 as amended ("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 March 31 2022 its profitincluding other comprehensive income its cash flows and the changes in equity for theyear ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the 'Auditor'sResponsibilities for the Audit of the Standalone Financial Statements' section of ourreport.

We are independent of the Company in accordance with the 'Code of Ethics' issued by theInstitute of Chartered Accountants of India together with the ethical requirements thatare relevant to our audit of the financial statements under the provisions of the Act andthe Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements for the financial yearended March 31 2022. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. For each matter below our description ofhow our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the standalone financial statements section ofour report including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the standalone financial statements. The results of our audit proceduresincluding the procedures performed to address the matters below provide the basis for ouraudit opinion on the accompanying standalone financial statements.

Key audit matters How our audit addressed the key audit matter
(a) Recoverability of investments in and loans / advances given to certain subsidiaries and joint ventures and financial guarantees given on behalf of certain subsidiaries (as described in note 48 of the standalone financial statements) Our audit procedures included the following:
The Company has investments in certain subsidiaries and joint ventures with a carrying value of Rs 2391 crores. Further the Company has also provided loans and/or guarantees to or on behalf of these subsidiaries and the joint venture amounting to Rs 14767 crores. These subsidiaries and joint venture have either been incurring losses or the investments made by them in the step-down subsidiaries have been making losses. • We obtained and read management's assessment for impairment.
• We performed test of controls over impairment process through inspection of evidence of performance of these controls.
• We assessed the impairment model prepared by the management and the assumptions used with particular attention to the following:
The Company has also recognised impairment allowance of Rs 722 crores during the year ended March 31 2022 in respect of investments loans / advances given to certain overseas subsidiaries as described in note 57 of the standalone financial statements. - benchmarking or assessing key assumptions used in the impairment models including discount rates risk free rate of return long term growth rate and other key assumptions against external and internal data;
- assessing the cash flow forecasts including possible impact on account of global pandemic through analysis of actual past performance and comparison to previous forecasts;
Further the Company has not recognised interest income of Rs 127 crores during the year from some of its subsidiaries due to uncertainty of recoverability of such income. - testing the mathematical accuracy and performing sensitivity analyses of the models; and
Assessment of the recoverable amount of the investments in and loans/advances including interest thereon given to these subsidiaries and joint ventures and financial guarantees given on behalf of these subsidiaries has been identified as a key audit matter due to: - understanding the commercial prospects of the assets/projects and comparison of assumptions with external data sources;
• Significance of the carrying amount of these balances. • We assessed the competence capabilities and objectivity of the experts used by management in the process of evaluating impairment models.
• The assessment requires management to make significant estimates concerning the estimated future cash flows qualitative assessments of the status of the project and its future depending on balance work to be performed or approvals to be received associated discount rates and growth rates based on management's view of future business prospects. • We assessed the conclusions reached by management and those charged with governance on account of various estimates and judgements.
• Changes to any of these assumptions could lead to material changes in the estimated recoverable amount impacting both potential impairment charges and potential reversals of impairment taken in prior years. • We assessed the compliance of the disclosures made in note 48 of the standalone financial statements with the accounting standards.
Capital Expenditure in respect of property plant and equipment and capital work in progress (as described in notes 4 and 5 of the standalone financial statements) Our audit procedures included the following:
The Company has incurred significant expenditure on capital projects as reflected by the total value of additions in property plant and equipment and capital work in progress in notes 4 and 5 of the standalone financial statements. • We obtained an understanding of the Company's capitalisation policy and assessed for compliance with the relevant accounting standards.
The Company is in the process of executing various projects for expansions of existing capacity across the locations. These projects take a substantial period of time to get ready for intended use. • We obtained understanding evaluated the design and tested the operating effectiveness of controls related to capital expenditure and capitalisation of assets.
We considered Capital expenditure as a Key audit matter due to: • We performed substantive testing on a sample basis for each element of capitalised costs including inventory issued to contractors for the purpose of these projects and physical verification performed by management alongwith reconciliation and directly attributable cost including verification of underlying supporting evidence and understanding nature of the costs capitalised.
• Significance of amount incurred on such items during the year ended March 31 2022. • We have obtained componentisation reports issued by 3rd party management experts for capitalisations carried out during the year and have assessed appropriateness of basis of componentisation and estimates of useful life.
• Judgement and estimate required by management in assessing assets meeting the /capitalisation criteria set out in Ind AS 16 Property Plant and Equipment. • In relation to borrowing costs we obtained the supporting calculations verified the inputs to the calculation and tested the arithmetical accuracy of the model.
• Judgement involved in determining the eligibility of costs including borrowing cost and other directly attributable costs for capitalisation as per the criteria set out in Ind AS 16 Property Plant and Equipment. • We assessed accounting for costs incurred when projects are suspended or delayed for any reasons including the global pandemic.
• We obtained understanding on management assessment relating to progress of projects and their intention to bring the asset to its intended use.
Accuracy and completeness of disclosure of related party transactions and compliance with the provisions of Companies Act 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 as amended ('SEBI (LODR) 2015') (as described in note 44 of the standalone financial statements) Our audit procedures in relation to the disclosure of related party transactions included the following:
We identified the accuracy and completeness of disclosure of related party transactions as set out in respective notes to the standalone financial statements as a key audit matter due to: • We obtained an understanding evaluated the design and tested operating effectiveness of the controls related to capturing of related party transactions and management's process pf ensuring all transactions and balances with related parties have been disclosed in the standalone financial statements.
• the significance of transactions with related parties during the year ended March 31 2022. • We obtained an understanding of the Company's policies and procedures in respect of evaluating arms-length pricing and approval process by the audit committee and the board of directors.
• Related party transactions are subject to the compliance requirement under the Companies Act 2013 and SEBI (LODR) 2015. • We agreed the amounts disclosed with underlying documentation and read relevant agreements evaluation of arms-length by management on a sample basis as part of our evaluation of the disclosure.
• We assessed management evaluation of compliance with the provisions of Section 177 and Section 188 of the companies Act 2013 and SEBI (LODR) 2015.
• We evaluated the disclosures through reading of statutory information books and records and other documents obtained during the course of our audit.
Claims and exposures relating to taxation and litigation (as described in note 45 of the standalone financial statements) Our audit procedures included the following:
The Company has disclosed in note 45 of the standalone financial statements contingent liabilities of Rs 3899 crores in respect of disputed claims/ levies under various tax and legal matters and Rs 3710 crores towards Claims related to Forest development tax/ fee.
• We obtained understanding evaluated the design and tested the operating effectiveness of the controls related to the identification recognition and measurement of provisions for disputes potential claims and litigation and contingent liabilities.
In addition the Company has assessed several claims as 'Remote' and hence are not required to be disclosed as contingent liabilities. • We obtained details of legal and tax disputed matters and evaluation made by the management and assessed management's position through discussions on both the probability of success in significant cases and the magnitude of any potential loss.
Taxation and litigation exposures have been identified as a key audit matter due to:
• Significance of these amounts and large number of disputed matters with various authorities. • We read external legal opinions (where considered necessary) and other evidence to corroborate management's assessment of the risk profile in respect of legal claims.
• Significant judgement and assumptions required by management in assessing the exposure of each case to evaluate whether there is a need to set up a provision and measurement of exposures as well as the disclosure of contingent liabilities. • We involved tax specialists to assist us in evaluating tax positions taken by management.
We focused on this matter because of the potential financial impact on the standalone financial statements. Additionally the treatment of taxation and litigation cases require significant judgement due to the complexity of the cases timescales for resolution and involvement of various authorities. • We assessed the relevant disclosures made in the standalone financial statements for compliance in accordance with the requirements of Ind AS 37.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual report but does not includethe standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether such other informationis materially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Responsibilities of Management for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting

Standards (Ind AS) specified under section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act we are also responsible for expressing our opinion on whether the Companyhas adequate internal financial controls with reference to financial statements in placeand the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsfor the financial year ended March 31 2022 and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure 1" a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss including the Statement ofOther Comprehensive Income the Cash Flow Statement and Statement of Changes in Equitydealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from the directors as on March31 2022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 from being appointed as a director in terms of Section 164 (2) of theAct;

(f) With respect to the adequacy of the internal financial controls with reference tothese standalone financial statements and the operating effectiveness of such controlsrefer to our separate Report in "Annexure 2" to this report;

(g) In our opinion the managerial remuneration for the year ended March 31 2022 hasbeen paid / provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act;

(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements - Refer Note 45 to the standalonefinancial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company except for one instance asfully described in Note 60 the standalone financial statements amounting to Rs. 2.94crores which has been transferred subsequent to the year-end;

iv. a) The management has represented that to the best of its knowledge and beliefother than as disclosed in the note 59 to the standalone financial statements no fundshave been advanced or loaned or invested (either from borrowed funds or share premium orany other sources or kind of funds) by the Company to or in any other persons or entitiesincluding foreign entities ("Intermediaries") with the understanding whetherrecorded in writing or otherwise that the Intermediary shall whether directly orindirectly lend or invest in other persons or entities identified in any manner whatsoeverby or on behalf of the Company ("Ultimate Beneficiaries") or provide anyguarantee security or the like on behalf of the Ultimate Beneficiaries;

b) The management has represented that to the best of its knowledge and belief nofunds have been received by the Company from any persons or entities including foreignentities ("Funding Parties") with the understanding whether recorded inwriting or otherwise that the Company shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Funding Party ("Ultimate Beneficiaries") or provide any guarantee securityor the like on behalf of the Ultimate Beneficiaries; and

c) Based on such audit procedures performed that have been considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (a) and (b) contain any materialmisstatement.

v. The final dividend paid by the Company during the year in respect of the samedeclared for the previous year is in accordance with section 123 of the Act to the extentit applies to payment of dividend.

As stated in note 61 to the standalone financial statements the Board of Directors ofthe Company have proposed final dividend for the year which is subject to the approval ofthe members at the ensuing Annual General Meeting. The dividend declared is in accordancewith section 123 of the Act to the extent it applies to declaration of dividend.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Vikram Mehta
Partner
Membership Number: 105938
UDIN No:22105938AJRYOV5465
Place of Signature: Mumbai
Date: May 27 2022

Annexure 1 referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date Re: JSW Steel Limited ("theCompany")

In terms of the information and explanations sought by us and given by the company andthe books of account and records examined by us in the normal course of audit and to thebest of our knowledge and belief we state that:

(i) (a) (A) The Company has maintained proper records showing full particularsincluding quantitative details and situation of Property Plant and Equipment.

(B) The Company has maintained proper records showing full particulars of intangiblesassets.

(b) All Property Plant and Equipment have not been physically verified by themanagement during the year but there is a regular programme of verification which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

(c) The title deeds of immovable properties (other than properties where the Company isthe lessee and the lease agreements are duly executed in favour of the lessee) disclosedin note 4 to the standalone financial statements included in property plant and equipmentare held in the name of the Company except immovable properties as indicated in the belowmentioned cases:

(Rs in crores)
Description of Property Gross carrying value Held in name of Whether promoter director or their relative or employee Period held - indicate range where appropriate Reason for not being held in the name of Company
Leasehold land at Karnataka 67 Government of Karnataka No Mar 2007 Approval for Proposal for Excecution of Absolute Sale deed is pending with Cabinet (State Government)
18 Government of Karnataka No May 2011 Application Submitted to lessor for execution of Absolute Sale deed on 30.06.2021
7 Bhuwalka Pipes Private Limited No Dec 2011 Extension of Lease deed is under process
Freehold Land at Maharashtra 6 Nippon Denro Ispat Limited No March 2000 Title deed is under dispute
3 Ispat Metallics India Limited No March 2000 Title deed is under dispute
Land & Building 27 Loha Ispat Limited No March 2002 Liquidator is under process to take approvals for the transfer of title deed

(d) The Company has not revalued its Property Plant and Equipment (including Right ofuse assets) or intangible assets during the year ended March 31 2022.

(e) There are no proceedings initiated or are pending against the Company for holdingany benami property under the Prohibition of Benami Property Transactions Act 1988 andrules made thereunder.

(ii) (a) The inventory has been physically verified by the management during the yearexcept for inventories lying with third parties. In our opinion the frequency ofverification by the management is reasonable and the coverage and procedure for suchverification is appropriate. Inventories lying with third parties have been confirmed bythem as at March 31 2022 and discrepancies were not noticed in respect of suchconfirmations. No discrepancies of 10% or more in aggregate for each class of inventorywere noticed in respect of such physical verification.

(b) As disclosed in note 25 to the standalone financial statements the Company hasbeen sanctioned working capital limits in excess of Rs. five crores in aggregate frombanks during the year on the basis of security of current assets of the Company. Based onthe records examined by us in the normal course of audit of the financial statementsincluding clarifications provided by the banks the quarterly returns / statements alongwith subsequent revisions filed by the Company with the banks are in agreement with thebooks of accounts of the Company.

(iii) (a) During the year the Company has provided loans advances in the nature ofloans stood guarantee and provided security to companies as follows:

Particulars Guarantees Security Loans Advances in nature of loans
Aggregate amount granted/ provided during the year
Subsidiaries 3027 - 2247 -
Joint Ventures - - - -
Others - - 71 -
Balance outstanding as at balance sheet date in respect of above cases
Subsidiaries 3027 - 2201 -
Joint Ventures - - - -
Others - - 87 -

(b) During the year the investments made guarantees provided and the terms andconditions of the grant of all loans investments and guarantees to companies are notprejudicial to the Company's interest. The Company has not provided security or grantedadvances in the nature of loans to companies firms limited liability partnerships or anyother parties.

(c) The Company has granted loans during the year to companies where the schedule ofrepayment of principal and payment of interest has been stipulated and the repayment orreceipts are regular. The Company has not granted advances in the nature of loans tocompanies firms limited liability partnerships or any other parties.

(d) There are no amounts of loans and advances in the nature of loans granted tocompanies firms limited liability partnerships or any other parties which are overduefor more than ninety days.

(e) During the year the Company has renewed loans given to certain parties which havefallen due during the year. The aggregate amount of such renewed loans and the percentageof the aggregate to the total loans granted during the year is Rs 2817 crores and 122%respectively.

(Rs in crores)
Name of Parties Aggregate amount of over dues of existing loans extended Percentage of the aggregate to the total loans or advances in the nature of loans granted during the year
Subsidiaries
Acero Junction Holdings Inc 875 38%
Inversiones Eurosh Limited 847 37%
JSW Steel (Netherlands) B.V. 724 31%
JSW Steel Coated Products Limited 282 12%
Joint Ventures
JSW Ispat Special Products Limited 89 4%

(f) The Company has not granted any loans or advances in the nature of loans eitherrepayable on demand or without specifying any terms or period of repayment to companiesfirms limited liability partnerships or any other parties. Accordingly the requirementto report on clause 3(iii)(f) of the Order is not applicable to the Company.

(iv) Loans investments guarantees and security in respect of which provisions ofsections 185 and 186 of the Companies Act 2013 ('the Act') are applicable have beencomplied with by the Company.

(v) The Company has neither accepted any deposits from the public nor accepted anyamounts which are deemed to be deposits within the meaning of sections 73 to 76 of the Actand the rules made thereunder to the extent applicable. Accordingly the requirement toreport on clause 3(v) of the Order is not applicable to the Company.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Act related to the manufacture of its products and are of theopinion that prima facie the specified accounts and records have been made andmaintained. We have not however made a detailed examination of the same.

(vii) (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including goods and services tax provident fund employees' stateinsurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax cess and other statutory dues applicable to it. According to the informationand explanations given to us and based on audit procedures performed by us no undisputedamounts payable in respect of these statutory dues were outstanding at the year end fora period of more than six months from the date they became payable.

(b) The dues of goods and services tax provident fund employees' state insuranceincome-tax sales-tax service tax duty of custom duty of excise value added tax cessand other statutory dues have not been deposited on account of any dispute are asfollows:

(Rs in crores)
Name of statue Nature of Dues Amount* Period Forum
The Central Excise Act 1944 Excise Duty 97 2000-2015 High Court
384 1997-2018 Central Excise Service Tax Appellate Tribunal (CESTAT)
73 1995-2017 Commissioner / Joint Commissioner / Asst. Commissioner
The Custom Act 1962 Custom Duty 225 2002-2016 High Court
358 1995-2018 Central Excise Service Tax Appellate Tribunal (CESTAT)
39 2000-2017 Commissioner (Appeals) / Joint Commissioner
Karnataka VAT 2003 VAT 2 2006-2008 Joint Commissioner
The Central Sales Tax Act 1956 CST 29 2011-2012 High Court
1 2004-2018 Commissioner / Joint Commissioner
Karnataka Tax on Entry of Goods Act 1979 Entry Tax 1 2005-2017 High Court
Maharashtra Value Added Tax 2002 VAT 153 2003-2018 Commissioner (Appeals)/ Joint Commissioner /Asst.
Commissioner / Assessing Officer
Chapter V of the Finance Act 1994 Service Tax 32 2003-2022 High Court
64 1998-2017 Central Excise Service Tax Appellate Tribunal (CESTAT)
56 2006-2017 Commissioner Additional Commissioner
Income Tax Act 1961 Income Tax 734 1995-2018 CIT/ITAT
Karnataka Forest Act 1963 Forest Development Tax 378 2008-2016 Supreme Court of India
Forest Development Fee 2412 2016-2022 Supreme Court of India
The Goa Rural Improvement Goa Rural Cess 969 2006-2021 High Court
Welfare Cess Act 2000 Goa Green Cess 292 2011-2021 High Court
The Bombay Electricity Duty Act Electricity Duty 150 2013-2019 Supreme Court of India
636 2013-2019 High Court
Goods & Service Tax Goods & Service Tax 2678 2020-2022 High Court
14 2017-2018 Commissioner/ Joint Commissioner
Maharashtra Stamp Stamp duty 51 2013-2014 Revenue Department
Mines & Minerals (Development & regulation) Act Mining premium 696 2020-2021 High Court
Orissa Minerals (PSIMR) Rules 2007 Mining premium and royalties 375 2020-2021 Joint Director of Mines Orissa

* Net of amounts paid under protest.

The above table doesn't include cases decided in favour of the Company for which thedepartment has preferred an appeal at higher levels amounting to Rs 785 crores (net ofamount paid under protest) and matters remanded back amounting to Rs 228 crores (net ofamount paid under protest).

(viii) The Company has not surrendered or disclosed any transaction previouslyunrecorded in the books of account in the tax assessments under the Income Tax Act 1961as income during the year. Accordingly the requirement to report on clause 3(viii) of theOrder is not applicable to the Company.

(ix) (a) The Company has not defaulted in repayment of loans or other borrowings or inthe payment of interest thereon to any lender.

(b) The Company has not been declared wilful defaulter by any bank or financialinstitution or government or any government authority.

(c) Term loans were applied for the purpose for which the loans were obtained.

(d) On an overall examination of the standalone financial statements of the Company nofunds raised on short-term basis have been used for long-term purposes by the Company.

(e) On an overall examination of the standalone financial statements of the Companythe Company has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries or joint ventures.

(f) The Company has not raised loans during the year on the pledge of securities heldin its subsidiaries or joint ventures. Hence the requirement to report on clause (ix)(f)of the Order is not applicable to the Company.

(x) (a) Monies raised during the year by the Company by way of debt instruments in thenature of foreign currency bonds non-convertible debentures and commercial papers wereapplied for the purposes for which they were raised though idle/surplus funds which werenot required for immediate utilization have been gainfully invested in fixed deposits. TheCompany has not raised any money way of initial public offer / further public offer andhence not commented upon.

(b) The Company has not made any preferential allotment or private placement of shares/fully or partially or optionally convertible debentures during the year under audit andhence the requirement to report on clause 3(x)(b) of the Order is not applicable to theCompany.

(xi) (a) No material fraud by the Company or no material fraud on the Company has beennoticed or reported during the year.

(b) During the year no report under sub-section (12) of section 143 of the Act hasbeen filed by cost auditor/ secretarial auditor or by us in Form ADT - 4 as prescribedunder Rule 13 of Companies (Audit and Auditors) Rules 2014 with the Central Government.

(c) We have taken into consideration the whistle blower complaints received by theCompany during the year while determining the nature timing and extent of auditprocedures.

(xii) The Company is not a nidhi company as per the provisions of the Act. Thereforethe requirement to report on clause 3(xii)(a) (b) and (c) of the Order are not applicableto the Company.

(xiii) Transactions with the related parties are in compliance with sections 177 and188 of the Act where applicable and the details have been disclosed in the notes to thestandalone financial statements as required by the applicable accounting standards.

(xiv) (a) The Company has an internal audit system commensurate with the size andnature of its business.

(b) The internal audit reports of the Company issued till the date of the audit reportfor the period under audit have been considered by us.

(xv) The Company has not entered into any non-cash transactions with its directors orpersons connected with its directors and hence requirement to report on clause 3(xv) ofthe Order is not applicable to the Company.

(xvi) (a) The provisions of section 45-IA of the Reserve Bank of India Act 1934 (2 of1934) are not applicable to the Company. Accordingly the requirement to report on clause(xvi)(a) of the Order is not applicable to the Company.

(b) The Company is not engaged in any NonBanking Financial or Housing Financeactivities. Accordingly the requirement to report on clause (xvi)(b) of the Order is notapplicable to the Company.

(c) The Company is not a Core Investment Company as defined in the regulations made byReserve Bank of India. Accordingly the requirement to report on clause 3(xvi) of theOrder is not applicable to the Company.

(d) We have been informed by the management that as per the definition of Group underCore

Investment Companies (Reserve Bank) Directions 2016 there is one Core InvestmentCompany (CIC) which is registered and three CICs which are not required to be registeredwith the Reserve Bank of India forming part of the promoter group.

(xvii) The Company has not incurred cash losses in the current financial year and inthe immediately preceding financial year respectively.

(xviii) There has been no resignation of the statutory auditors during the year andaccordingly requirement to report on Clause 3(xviii) of the Order is not applicable to theCompany.

(xix) On the basis of the financial ratios disclosed in note 58 to the standalonefinancial statements ageing and expected dates of realization of financial assets andpayment of financial liabilities other information accompanying the standalone financialstatements our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of theaudit report that Company is not capable of meeting its liabilities existing at the dateof balance sheet as and when they fall due within a period of one year from the balancesheet date. We however state that this is not an assurance as to the future viability ofthe Company. We further state that our reporting is based on the facts up to the date ofthe audit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due.

(xx) (a) In respect of other than ongoing projects there are no unspent amounts thatare required to be transferred to a fund specified in Schedule VII of the Act incompliance with second proviso to sub section 5 of section 135 of the Act. This matter hasbeen disclosed in note 36 (b) to the standalone financial statements.

(b) There are no unspent amounts in respect of ongoing projects that are required tobe transferred to a special account in compliance of provision of sub section (6) ofsection 135 of the Act. This matter has been disclosed in note 36 (b) to the standalonefinancial statements.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Vikram Mehta
Partner
Membership Number: 105938
UDIN No: 22105938AJRYOV5465
Place of Signature: Mumbai
Date: May 27 2022

Annexure 2 to the Independent Auditor's Report of even date on the standalone financialstatements of JSW Steel Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the interna! financial controls with reference to standalone financialstatements of JSW Steel Limited ("the Company") as of March 31 2022 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to these standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing as specified under section 143 (10) of the Act to the extent applicable to anaudit of internal financial controls both issued by ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlswith reference to these standalone financial statements was established and maintained andif such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to these standalone financial statementsand their operating effectiveness. Our audit of internal financial controls with referenceto standalone financial statements included obtaining an understanding of internalfinancial controls with reference to these standalone financial statements assessing therisk that a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls withreference to these standalone financial statements.

Meaning of Internal Financial Controls With Reference to Standalone FinancialStatements

A company's internal financial controls with reference to standalone financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial controls with reference to standalone financial statements includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.

Inherent Limitations of Internal Financial Controls With Reference to StandaloneFinancial Statements

Because of the inherent limitations of internal financial controls with reference tostandalone financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial control with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to standalone financial statements and such internal financialcontrols with reference to standalone financial statements were operating effectively asat March 31 2022 based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note issued by the ICAI.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Vikram Mehta
Partner
Membership Number: 105938
UDIN No:22105938AJRYOV5465
Place of Signature: Mumbai
Date: May 27 2022

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