Mar 31, 2019
Report on the Audit of the Standalone Ind AS Financial Statements Opinion
We have audited the accompanying standalone Ind AS financial statements of JSW Steel Limited (âthe Companyâ), which comprise the Balance sheet as at March 31, 2019, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Companies Act, 2013, as amended (âthe Actâ) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2019, its profit including other comprehensive income its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the âAuditorâs Responsibilities for the Audit of the Standalone Ind AS Financial Statementsâ section of our report. We are independent of the Company in accordance with the âCode of Ethicsâ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone Ind AS financial statements for the financial year ended March 31, 2019. These matters were addressed in the context of our audit of the standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditorâs responsibilities for the audit of the standalone Ind AS financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone Ind AS financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone Ind AS financial statements.
Key audit matters |
How our audit addressed the key audit matter |
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Recoverability of investments in and loans / advances aiven to certain subsidiaries and a Joint venture and financial |
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auarantees given on behalf of certain subsidiaries (as described in note 50 of the standalone Ind AS financial |
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statements) |
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The Company has investments in certain subsidiaries |
Our audit procedures included the following: |
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and a joint venture with a carrying value of Rs. 1,018 crores. Further, Company has also provided loans and/ or guarantees to or on behalf of these subsidiaries and the joint venture amounting to Rs. 8,632 crores. These |
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We have obtained and read managementâs assessment for identification of indicators of impairment. |
subsidiaries and joint venture, have either been incurring |
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We performed test of controls over impairment |
losses or the investments made by them in the step down |
process through inspection of evidence of |
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subsidiaries have been making losses. |
performance of these controls. |
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Assessment of the recoverable amount of the investments |
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Assessed the impairment model prepared by the |
in and loans/advances including interest thereon given |
management and the assumptions used, with |
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to these subsidiaries and a joint venture and financial |
particular attention to the following: |
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guarantees given on behalf of these subsidiaries has been identified as a key audit matter due to: |
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Benchmarking or assessing key market related assumptions used in the impairment models, |
- Significance of the carrying amount of these |
including discount rates, long term growth rate, risk |
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balances. |
free rate of return, weight average cost of capital, |
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- The assessment requires management to make |
Production schedule against external data. |
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significant estimates concerning the estimated |
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assessing the cash flow forecasts through analysis |
future cash flows, qualitative assessments of the |
of actual past performance and comparison to |
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status of the project and its future depending on |
previous forecasts; |
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balance work to be performed or approvals to be received, associated discount rates and growth rates based on managementâs view of future business |
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testing the mathematical accuracy and performing sensitivity analyses of the models; |
prospects. |
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understanding the commercial prospects of the |
- Changes to any of these assumptions could lead |
assets/projects, and comparison of assumptions with external data sources; |
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to material changes in the estimated recoverable |
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amount, impacting both potential impairment |
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We assessed the competence, capabilities and |
charges and also potential reversals of impairment |
objectivity of the experts used by the Management |
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taken in prior years. |
in the process of evaluating impairment models. |
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Further, the Company has not recognized interest |
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We assessed the compliance of the disclosures |
income of Rs. 454 crores during the year from some of |
made in note 50 of the standalone Ind AS financial |
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its subsidiaries due to uncertainty of recoverability of |
statements with accounting standards. |
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such income. |
Key audit matters |
How our audit addressed the key audit matter |
Recoverability of VAT deferral under the GST reaime (as described in note 29 of the standalone Ind AS financial statements) |
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The Companyâs units at Dolvi in Maharashtra and Vijayanagar in Karnataka are eligible and have been availing for interest free VAT deferral loan as an incentive under the incentive schemes notified by the State of Maharashtra and Karnataka. The Company has recognised income in relation these grants being the difference between the net present value of these interest free loans granted to the Company and the nominal value of such loans to the extent of SGST collected by the Company in respect of sales eligible for such grants, in accordance with notifications issued by the State of Maharashtra and Karnataka. The State Government of Maharashtra (âGoMâ) vide its Government Resolution dated 20 December 2018, revised on 8 March 2019, has issued the modalities for sanction and disbursement of Incentives under GST regime, which includes certain additional conditions for eligibility and prescribed a new formula for determination of the incentives. The State Government of Karnataka vide its circular dated 26 February 2019, has issued guidelines for certification of the eligible incentive amount. The amount of incentive recognized during the year amounts to Rs. 1,111 crores and cumulative balance of these receivables amount to Rs. 1,806 crores. We considered VAT deferral incentive as a Key audit matter due to: - Significance of amount accrued during the year and carrying amount of these receivables as at March 31, 2019. - Significant judgement involved in assessment of the eligibility of incentive under the new GST regime. |
Our audit procedures included the following: - We obtained an understanding, evaluated the design and tested operating effectiveness of the controls related to the recognition of government grants and income accruing therefrom, including the controls in respect of measurement of the grants. - We have read eligibility certificates in respect of VAT deferral incentives available to Company. - We have read the notification issued by the Government of Maharashtra and Government of Karnataka stating eligibility of VAT deferral under the GST regime. - We have read Government Resolution dated 20 December 2018 and revision made on 8 March 2019, issued by Government of Maharashtra in respect of modalities for sanction and disbursement of Incentives under GST regime. - We have read circular dated 26 February 2019 issued by the State Government of Karnataka in respect of guidelines for certification of the eligible incentive amount. - Read the legal opinion obtained by the management for assessing the impact of new eligibility conditions and formula for determination incentives based on latest Government Resolution issued by GoM - We involved specialists to assist us in reviewing and evaluating the managementâs assessment of latest Government Resolution issued by GoM. - We have tested the calculation of incentives accrued for the year ended March 31, 2019. |
Key audit matters |
How our audit addressed the key audit matter |
Accuracy and completeness of disclosure of related party transactions and compliance with the provisions of |
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Companies Act 2013 and SEBI (Listina Obliaations and Disclosure Requirements) Reaulations, 2015, as amended |
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(âSEBI (LODR) 2015â) (as described in note 43 of the standalone Ind AS financial statements) |
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We identified the accuracy and completeness of disclosure of related party transactions as set out in respective notes to the standalone Ind AS financial statements as a key audit matter due to: - the significance of transactions with related parties during the year ended March 31, 2019. - Related party transactions are subject to the compliance requirement under the Companies Act 2013 and SEBI (LODR) 2015. |
Our procedures in relation to the disclosure of related party transactions included: - Obtaining an understanding of the Companyâs policies and procedures in respect of the capturing of related party transactions and how management ensures all transactions and balances with related parties have been disclosed in the standalone Ind AS financial statements. - Obtaining an understanding of the Companyâs policies and procedures in respect of evaluating arms-length pricing and approval process by the audit committee and the board of directors. - Agreeing the amounts disclosed to underlying documentation and reading relevant agreements, evaluation of arms-length, on a sample basis, as part of our evaluation of the disclosure. - Assessing management evaluation of compliance with the provisions of Section 177 and Section 188 of the companies Act 2013 and SEBI (LODR) 2015. - Evaluating the disclosures through reading of statutory information, books and records and other documents obtained during the course of our audit. |
Key audit matters |
How our audit addressed the key audit matter |
Claims and exposures relatina to taxation and litiaation (as described in note 44 of the standalone Ind AS financial statements) |
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The Company has disclosed in Note 44 contingent liabilities of Rs. 3,015 crores in respect of disputed claims/ levies under various tax and legal matters and Rs. 2,160 crores towards Claims related to Forest development tax/ fee. In addition, the Company has assessed several claims as âRemoteâ and hence are not required to be disclosed as contingent liabilities. 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. - 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 focused on this matter because of the potential financial impact on the 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. |
Our audit procedures included the following: - Understanding and assessing the internal control environment relating to the identification, recognition and measurement of provisions for disputes, potential claims and litigation, and contingent liabilities. - Obtaining the details of legal and tax disputed matters and evaluation made by the management and assessed managementâs position through discussions on both the probability of success in significant cases, and the magnitude of any potential loss. - Read external legal opinions (where considered necessary) and other evidence to corroborate managementâs assessment of the risk profile in respect of legal claims. - We involved tax specialists to assist us in evaluating tax positions taken by management. - We assessed the relevant disclosures made in the standalone Ind AS financial statements for compliance in accordance with the requirements of Ind AS 37. |
Information Other than the Financial Statements and Auditorâs Report Thereon
The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the standalone Ind AS financial statements and our auditorâs report thereon.
Our opinion on the standalone Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone Ind AS financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design 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 Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the 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 auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the standalone Ind AS financial statements, including the disclosures, and whether the standalone Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone Ind AS financial statements for the financial year ended March 31, 2019 and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure 1â a statement on the matters specified in paragraphs 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 best of 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 the Company so far as it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on March 31, 2019 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2019 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company with reference to these standalone Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 2â to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2019 has been paid / provided by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;
(h) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements -Refer Note 44 to the standalone Ind AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company
Annexure 1 referred to in paraaraph 1 under the headina âReport on Other Leaal and Reaulatory Requirementsâ of our report of even date
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) All fixed assets were physically verified by the management in the previous year in accordance with a planned programme of verifying them once in three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) According to the information and explanations given by the management, the title deeds of immovable properties, included in property, plant and equipment are held in the name of the Company except for
i. leasehold land aggregating to Rs. 67 crores wherein the lease deed has expired. As explained to us, the Company is in the process of converting the title into freehold as per the lease cum sale agreement.
ii. freehold land aggregating to Rs. 9 crores as noted below for which title deeds were not available with the Company and hence we are unable to comment on the same
Nature of immovable Property |
Total Number of Cases |
As at March 31, 2019 (Rs. in Crores) |
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Gross Block |
Net Block |
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Land located at Maharashtra |
12 |
9 |
9 |
(ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification. Inventories lying with third parties have been confirmed by them and no material discrepancies were noticed in respect of such confirmations.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ). Accordingly, the provisions of clause 3(iii) (a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations given to us, provisions of section 185 and 186 of the Act in respect of loans to directors including entities in which they are interested and in respect of loans and advances given, investments made and, guarantees, and securities given have been complied with by the Company.
(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Act, related to the manufacture of its products, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
(vii) (a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, goods and service tax, cess and other statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, goods and service tax, cess and other statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of income-tax, sales- tax, wealth-tax, service tax, customs duty, excise duty, value added tax and cess on account of any dispute, are as follows:
Name of Statue |
Nature of Dues |
Amount (Rs. In Crores)* |
Period |
Forum |
The Central Excise Act, 1944 |
Excise Duty |
98 |
1995-2015 |
High Court |
455 |
1997-2018 |
Central Excise Service Tax Appellate Tribunal (CESTAT) |
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2 |
1998-2016 |
Asst. Commissioner/Commissioner |
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The Custom Act, 1962 |
Custom Duty |
185 |
1995-2012 |
High Court |
354 |
2009-2018 |
Central Excise Service Tax Appellate Tribunal (CESTAT) |
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12 |
2014-2017 |
Commissioner |
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Karnataka VAT, 2003 |
VAT |
2 |
2006-2008 |
Assistant Commissioner |
The Central Sales Tax Act, 1956 |
CST |
29 |
2011-2012 |
High Court |
33 |
2012-2013 |
Commissioner |
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Chapter V of the Finance Act, 1994 |
Service Tax |
162 |
2004-2018 |
Central Excise Service Tax Appellate Tribunal (CESTAT) |
0.15 |
2008-2018 |
Commissioner |
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Income Tax Act, 1961 |
Income Tax |
14 |
2014-2015 |
Commissioner |
* Net of amounts paid under protest.
The above table does not include cases decided in favour of the Company for which the department has preferred an appeal at higher levels amounting to Rs. 616 crores.
(viii) In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of loans or borrowing to a financial institution, bank or government or dues to debenture holders.
(ix) In our opinion and according to the information and explanations given by the management, the Company has utilized the monies raised by way of term loans for the purposes for which they were raised. According to the information and explanations given by the management, the Company has not raised any money way of initial public offer / further public offer (including debt instruments) and hence not commented upon.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the standalone Ind AS financial statements and according to the information and explanations given by the management, we report that no fraud by the Company or no fraud on the Company by the officers and employees of the Company has been noticed or reported during the year.
(xi) According to the information and explanations given by the management, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion, the Company is not a Nidhi company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company and hence not commented upon.
(xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of the Act wherever applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable to the Company and, not commented upon.
(xv) According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in section 192 of the Act.
(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
Annexure 2
Annexure 2 to the Independent Auditorâs Report of even date on the standalone Ind AS financial statements of JSW Steel Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of JSW Steel Limited (âthe Companyâ) as of March 31, 2019 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting with reference to these standalone Ind AS financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing as specified under section 143 (10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting with reference to these standalone Ind AS financial statements was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls over financial reporting with reference to these standalone Ind AS financial statements and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting with reference to these standalone Ind AS financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls over financial reporting with reference to these standalone Ind AS financial statements.
Meaning of Internal Financial Controls Over Financial Reporting With Reference to these standalone Ind AS financial statements
A companyâs internal financial control over financial reporting with reference to these standalone Ind AS financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting with reference to these standalone Ind AS financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting With Reference to these standalone Ind AS financial statements
Because of the inherent limitations of internal financial controls over financial reporting with reference to these standalone Ind AS financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting with reference to these standalone Ind AS financial statements to future periods are subject to the risk that the internal financial control over financial reporting with reference to these standalone Ind AS financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, adequate internal financial controls over financial reporting with reference to these standalone Ind AS financial statements and such internal financial controls over financial reporting with reference to these standalone Ind AS financial statements were operating effectively as at March 31, 2019, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For S R B C S CO LLP
Chartered Accountants ICAI
Firm Registration Number: 324982E/E300003
per Vikram Mehta
Partner
Membership Number: 105938
Place of Signature: Mumbai
Date: 24 May 2019
Mar 31, 2018
Report of the independent auditor
on the abridged standalone Ind AS financial statements
To the Members of JSW Steel Limited
The accompanying abridged standalone Ind AS financial statements, which comprise the Abridged Balance Sheet as at March 31, 2018, the Abridged Statement of Profit and Loss (including Other Comprehensive Income), the Abridged Statement of Cash Flows and the Abridged Statement of Changes in Equity for the year then ended, and related notes, are derived from the audited standalone Ind AS financial statements of JSW Steel Limited (''the Company'') as at and for the year ended March 31, 2018. We expressed an unmodified audit opinion on those standalone Ind AS financial statements in our report dated May 16, 2018.
The abridged standalone Ind AS financial statements do not contain all the disclosures required by the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Companies Act, 2013 (''the Act'') read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, issued by Ministry of Corporate Affairs. Reading the abridged standalone Ind AS financial statements, therefore, is not a substitute for reading the audited standalone Ind AS financial statements of the Company.
Management''s responsibility for the abridged standalone Ind AS financial statements
The Company''s Board of Directors is responsible for the preparation of the abridged standalone Ind AS financial statements in accordance with Section 136(1) read with Rule 10 of the Companies (Accounts) Rules, 2014 and are based on audited standalone Ind AS financial statements as at and for the year ended March 31, 2018, prepared in accordance with Indian Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, issued by Ministry of Corporate Affairs.
Auditor''s Responsibility
Our responsibility is to express an opinion on the abridged standalone Ind AS financial statements based on our procedures, which were conducted in accordance with Standard on Auditing (SA) 810, "Engagements to Report on Summary Financial Statements" issued by the Institute of Chartered Accountants of India.
Opinion
In our opinion, the abridged standalone Ind AS financial statements, prepared in accordance with Section 136(1) read with Rule 10 of the Companies (Accounts) Rules,
2014 are derived from the audited standalone Ind AS financial statements of the Company as at and for the year ended March 31, 2018, prepared in accordance with the Indian Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended and are a fair summary of those standalone Ind AS financial statements.
Other Matter
The standalone Ind AS financial statements of the Company for the year ended March 31, 2017, included in the standalone Ind AS financial statements, have been audited by the predecessor auditor who expressed an unmodified opinion on those statements on May 17, 2017.
For S R R C & CO IIP
To the Members of JSW Steel Limited
Report on the standalone Ind AS financial statements
We have audited the accompanying standalone Ind AS financial statements of JSW Steel Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flow and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the standalone Ind AS financial statements").
Management''s Responsibility for the standalone Ind AS financial statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matter
The Ind AS financial statements of the Company for the year ended March 31, 2017, included in these standalone Ind AS financial statements, have been audited by the predecessor auditor who expressed an unmodified opinion on those statements on May 17, 2017.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the "Annexure 1" a statement on the matters specified in paragraphs 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 best of our knowledge and belief were necessary for the purpose of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flow and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) I n our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on
March 31, 2018, from being appointed as a director in terms of section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company with reference to these standalone Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in "Annexure 2" to this report;
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements
- Refer Note No. 45 to the standalone Ind AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure 1 referred to in paragraph 1 under the heading "Report on Other Legal and Regulatory Requirements" of our report of even date
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) According to the information and explanations given by the management, the title deeds of immovable properties, included in property, plant and equipment are held in the name of the Company except the following:
Nature of immovable Property |
Total Number |
As at March 31, 2018 ('' in Crore) |
|
of Cases |
Gross Block |
Net Block |
|
Land located at Maharashtra |
12 |
9 |
9 |
(ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification. Inventories lying with third parties have been confirmed by them and no material discrepancies were noticed in respect of such confirmations.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii) (a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations given to us, provisions of section 185 and 186 of the Companies Act 2013 in respect of loans and advances given, investments made and, guarantees, and securities given have been complied with by the company.
(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the manufacture of its products, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
(vii) (a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, goods and service tax, cess and other statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, goods and service tax, cess and other statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues of income-tax, sales- tax, service tax, duty of custom, duty of excise, value added tax and cess on account of any dispute, are as follows:
* Net of amounts paid under protest
Name of statue |
Nature of Dues |
Amount (Rs, In Crores)* |
Period |
Forum |
0.04 |
2004-2005 |
Supreme Court of India |
||
109 |
1995-2015 |
High Court |
||
The Central Excise Act, 1944 |
Excise Duty |
406 |
1997-2016 |
Central Excise Service Tax Appellate Tribunal (CESTAT) |
46 |
1998-2018 |
Asst. Commissioner/ |
||
Commissioner |
||||
2 |
2010-2011 |
Supreme Court of India |
||
The Custom Act, 1962 |
Custom Duty |
419 |
1995-2016 |
Central Excise Service Tax Appellate Tribunal (CESTAT) |
20 |
2014-2017 |
Commissioner |
||
The Tamil Nadu Value Added Tax Act, 2006 |
VAT |
1 |
2006-2012 |
Asst. Commissioner |
The Karnataka Value Added Tax Act, 2003 |
VAT |
1 |
2006-2008 |
Asst. Commissioner |
The Central Sales Tax Act, 1956 |
CST |
29 33 |
2011-2012 2012-2013 |
High Court Commissioner |
3 |
2002-2004 |
High Court |
||
Chapter V of the Finance Act, 1994 |
Service Tax |
145 |
2004-2017 |
Central Excise Service Tax Appellate Tribunal (CESTAT) |
33 |
2008-2018 |
Deputy Commissioner / Commissioner |
||
Income Tax Act, 1961 |
Income Tax |
74 |
2007-2012 |
Income Tax Appellate Tribunal (ITAT) |
(viii) In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of loans or borrowing to a financial institution, bank or government or dues to debenture holders.
(ix) I n our opinion and according to information and explanations given by the management, monies raised by the company by way of debt instruments in the nature of foreign currency bonds and term loans were applied for the purpose for which they were raised, though idle/surplus funds which were not required for immediate utilization have been gainfully invested in fixed deposits. The Company has not raised monies by way of initial public offer or further public offer.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the standalone Ind AS financial statements and according to the information and explanations given by the management, we report that no fraud by the Company or no fraud on the Company by the officers and employees of the Company has been noticed or reported during the year.
(xi) According to the information and explanations given by the management, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion, the Company is not a Nidhi company. Therefore, the provisions of clause 3(xii) of the Order are not applicable to the Company and hence not commented upon.
(xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the standalone Ind AS financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(xiv) of the Order are not applicable to the Company and, not commented upon.
(xv) According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in section 192 of Companies Act, 2013.
(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
Annexure 2 to the Independent Auditor''s Report of even date on the standalone Ind AS financial statements of JSW Steel Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of JSW Steel Limited ("the Company") as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting with reference to these standalone Ind AS financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting with reference to these standalone Ind AS financial statements was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls over financial reporting with reference to these standalone Ind AS financial statements and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting with reference to these standalone Ind AS financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls over financial reporting with reference to these standalone Ind AS financial statements.
Meaning of Internal Financial Controls Over Financial Reporting With Reference to these standalone Ind AS financial statements
A company''s internal financial control over financial reporting with reference to these standalone Ind AS financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting with reference to these standalone Ind AS financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting With Reference to these standalone Ind AS financial statements
Because of the inherent limitations of internal financial controls over financial reporting with reference to these standalone Ind AS financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting with reference to these standalone Ind AS financial statements to future periods are subject to the risk that the internal financial control over financial reporting with reference to these standalone Ind AS financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, adequate internal financial controls over financial reporting with reference to these standalone Ind AS financial statements and such internal financial controls over financial reporting with reference to these standalone Ind AS financial statements were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For S R B C & CO LLP
Chartered Accountants ICAI
Firm Registration Number: 324982E/E300003
per Vikram Mehta
Partner
Membership Number: 105938
Place of Signature: Mumbai
Date: May 16, 2018
Mar 31, 2017
Independent Auditor''s Report
To the Members of JSW Steel Limited
Report on the Abridged Standalone Ind AS Financial Statements
The accompanying abridged standalone Ind AS financial statements, which comprise the abridged balance sheet as at 31st March, 2017, the abridged statement of profit and loss (including Other Comprehensive Income), the abridged statement of cash flows and the abridged statement of changes in equity for the year then ended, and related notes, are derived from the audited standalone Ind AS financial statements of JSW Steel Limited ("the Company") for the year ended 31st March, 2017. We expressed an unmodified audit opinion on those standalone Ind AS financial statements in our attached report dated 17th May, 2017 but had included an Emphasis of Matter paragraph therein.
The abridged standalone Ind AS financial statements do not contain all the disclosures required by the accounting principles generally accepted in India including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013 ("the Act"), applied in the preparation of the audited standalone Ind AS financial statements of the Company. Reading the abridged standalone Ind AS financial statements, therefore, is not a substitute for reading the audited standalone Ind AS financial statements of the Company.
Management''s responsibility for the abridged standalone Ind AS financial statements
The Company''s Board of Directors is responsible for the preparation of the abridged standalone Ind AS financial statements in accordance with Section 136(1) read with Rule 10 of the Companies (Accounts) Rules, 2014 issued by the Ministry of Corporate affairs and accounting principles generally accepted in India.
Auditor''s responsibility
Our responsibility is to express an opinion on the abridged standalone Ind AS financial statements based on our procedures, which were conducted in accordance with Standard on Auditing (SA) 810, "Engagements to Report on Summary Financial statements" issued by the Institute of Chartered Accountants of India.
Opinion
In our opinion, the abridged standalone Ind AS financial statements derived from the audited standalone Ind AS financial statements of the Company for the year ended 31st March, 2017 are a fair summary of those financial statements, in accordance with Rule 10 of the Companies (Accounts) Rules, 2014.
Emphasis of Matter
Attention is invited to note 10 of Annexure I to the abridged standalone Ind AS financial statements regarding the factors considered in the Company''s assessment that the carrying amounts of the investments aggregating to Rs,956.66 crore in and the loans and advances aggregating to Rs,3,140.31 crore to certain subsidiaries and a joint venture are recoverable and that no loss allowance is required against the financial guarantees of Rs,3,375.65 crore.
Our opinion is not modified in respect of this matter.
To The Members of JSW Steel Limited Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of JSW Steel Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2017, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information, and which includes a joint operation (hereinafter referred to as "the standalone Ind AS financial statements").
Management''s Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act.
This responsibility also includes 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 frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone Ind As financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2017, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matter
Attention is invited to note 48 to the standalone Ind AS financial statements regarding the factors considered in the Company''s assessment that the carrying amounts of the investments aggregating to Rs,956.66 crore in and the loans and advances aggregating to Rs,3,140.31 crore to certain subsidiaries and a joint venture are recoverable and that no loss allowance is required against the financial guarantees of Rs,3,375.65 crore.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report, to the extent applicable that:
a) We have sought and obtained all the information and explanations which to the best of 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 the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flows and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31st March, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company, and the joint operation, and the operating effectiveness of such controls, refer to our separate Report in "Annexure A" Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
iv. The Company has provided requisite disclosures in the standalone Ind AS financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated the 8th November, 2016 of the Ministry of Finance, during the period from 8th November 2016 to 30th December 2016. Based on audit procedures performed and the representations provided to us by the management we report that the disclosures are in accordance with the books of account maintained by the Company and produced to us by the management.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
Report on the Internal Financial Controls Over Financial Reporting under Clause
(i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of JSW Steel Limited ("the Company") as of 31st March, 2017 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date which includes a jointly controlled operation.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the Institute of Chartered Accountants of India.
(Referred to in paragraph 2 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.
(b) The Company has a program of verification of property, plant and equipment to cover all the items in a phased manner over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain property, plant and equipment were physically verified by the management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed/ transfer deed/ conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties of land and acquired buildings which are freehold, are held in the name of the Company as at the balance sheet date, except the following:
Particulars of freehold land |
Gross block and net block as at 31st March, 2017 (Rs,in crores) |
Land located at Maharashtra Beneghat village of Raigad district admeasuring 13.48 acres |
6.00 |
Land located at Maharashtra Vave village of Raigad district admeasuring 1.72 acres |
0.77 |
Land located at Maharashtra Dolvi village of Raigad district admeasuring 4.96 acres |
2.61 |
Land located at Maharashtra Khar Kharavi village of Raigad district admeasuring 6.13 acres |
3.23 |
Land located at Maharashtra Jui Bapuji village of Raigad district admeasuring 0.78 acres |
0.41 |
In respect of immovable properties of land that have been taken on lease and disclosed as property, plant and equipment in the financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement. There are no buildings that have been taken on lease.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals, except for inventories lying with third parties where confirmations have been received by the management, and no material discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit and hence reporting under paragraph 3(v) of the Order is not applicable.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues in arrears as at 31st March, 2017 for a period of more than six months from the date they became payable.
(c) Details of dues of Income-tax, Service Tax, Customs Duty, Excise Duty, and Value Added Tax which have not been deposited as on 31st March, 2017 on account of disputes are given below:
Name of statute |
Nature of dues |
Forum where dispute is pending |
Period(s) to which the amount relates * |
Amount unpaid (Rs,in crores) |
Amount paid under protest (Rs,in crores) |
The Central Excise |
Excise Duty |
Supreme Court |
2000-01 to 2015-16 |
214.27 |
40.31 |
Act, 1944 |
High Court |
1997-98 to 2015-16 |
122.74 |
0.60 |
|
CESTAT |
1998-99 to 2015-16 |
249.68 |
40.22 |
||
Commissioner |
2002-03 to 2014-15 |
71.75 |
7.46 |
||
The Custom Act, |
Customs |
Supreme Court |
2002-03 to 2004-05 |
2.68 |
- |
1962 |
Duty |
High Court |
2002-03 to 2004-05 |
43.71 |
5.49 |
CESTAT |
1995-96 to 2014-15 |
304.68 |
19.39 |
||
Commissioner |
2008-09 to 2015-16 |
76.71 |
11.45 |
||
The Tamil Nadu Value Added Tax Act, 2006 |
VAT |
Asstt. Commissioner |
2008-09 to 2009-10 |
16.11 |
9.00 |
The Karnataka Value Added Tax Act, 2003 |
VAT |
Asstt. Commissioner |
2012-13 |
0.49 |
|
Chapter V of the |
Service Tax |
High Court |
2006 |
6.97 |
- |
Finance Act, 1994 |
CESTAT |
2004-05 to 2010-11 |
55.47 |
1.41 |
|
Commissioner |
2002-03 to 2014-15 |
39.84 |
2.68 |
||
The Income Tax Act, 1961 |
Income Tax |
High Court |
2004-05 |
17.61 |
- |
*Period represents the earliest year to the latest year
There were no dues of Sales Tax and Cess which have not been deposited as at 31st March, 2017 on account of dispute.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and government and dues to debenture holders.
(ix) In our opinion and according to the information and explanations given to us, money raised by way of the term loans have been applied by the Company during the year for the purposes for which they were raised or as per purposes revised with appropriate approvals, other than temporary deployment pending application of proceeds. The Company has neither raised any moneys by way of initial public offer / further public offer (including debt instruments) nor were such proceeds pending to be applied, during the current year.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid/ provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under paragraph 3(xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-I of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm Registration No. 117366W/ W-100018)
A. Siddharth
Partner
Mumbai (Membership No. 31467)
Dated: 17 May 2017
Mar 31, 2016
We have audited the accompanying standalone financial statements of JSW
STEEL LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March, 2016, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
prescribed under section 133 of the Act.
This responsibility also includes 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 frauds and
other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable
and prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder and the Order under section 143 (11) of the Act.
We conducted our audit of the standalone financial statements in
accordance with the Standards on Auditing specified under Section
143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2016, and its loss and its cash flows for the year ended
on that date.
EMPHASIS OF MATTERS
We draw attention to the following matters in the Notes to the
financial statements:
a) Note 25(4)(a) regarding the factors considered in estimating values
of businesses/ assets of certain subsidiaries, and recognition of
provision of Rs. 982.37 crores (Previous year Rs. 333.75 crores) for
''other than temporary'' diminution in value of investments, Rs. 3,915.30
crores for loans doubtful of recovery and Rs. 957.85 crores towards
guarantees.
b) Note 25(5) regarding the Company''s assessment that there is no
decline, other than temporary, in carrying amounts of investments of
Rs. 612.82 crores (net of provisions) in certain subsidiaries and joint
ventures and loans / advances of Rs. 270.60 crores to them are fully
recoverable.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. 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 best of 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 the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the
directors as on 31st March, 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2016
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the adequacy of the internal financial controls over
financial reporting of the Company and the operating effectiveness of
such controls, refer to our separate Report in "Annexure A". Our report
expresses an unmodified opinion on the adequacy and operating
effectiveness of the Company''s internal financial controls over
financial reporting.
g) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the
Order") issued by the Central Government in terms of Section 143(11) of
the Act, we give in "Annexure B" a statement on the matters specified
in paragraphs 3 and 4 of the Order.
Gross block
and net
Particulars of freehold land block as at 31st
March, 2016
(Rs. in crores)
Land located at Maharashtra 11.23
Benaghat village of Raigad district admeasuring
25.22 acres
Land located at Maharashtra 0.94
Vave village of Raigad district admeasuring
2.12 acres
Land located at Maharashtra 2.12
Dolvi village of Raigad district admeasuring
4.03 acres
Land located at Maharashtra 3.23
Khar Kharavi village of Raigad district
admeasuring 6.13 acres
In respect of immovable properties of land that have been taken on
lease and disclosed as fixed asset in the financial statements, the
lease agreements are in the name of the Company, where the Company is
the lessee in the agreement. There are no buildings that have been
taken on lease and disclosed as fixed assets.
(ii) As explained to us, the inventories were physically verified
during the year by the Management at reasonable intervals, except for
inventories lying with third parties where confirmations have been
received by the management, and no material discrepancies were noticed
on physical verification.
(iii) The Company has not granted any loans, secured or unsecured, to
companies, firms, Limited Liability Partnerships or other parties
covered in the Register maintained under Section 189 of the Companies
Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
185 and 186 of the Companies Act, 2013 in respect of grant of loans,
making investments and providing guarantees and securities, as
applicable.
(v) According to the information and explanations given to us, the
Company has not accepted any deposit and hence reporting under
paragraph 3(v) of the Order is not applicable.
(vi) The maintenance of cost records has been specified by the Central
Government under section 148(1) of the Companies Act, 2013. We have
broadly reviewed the cost records maintained by the Company pursuant to
the Companies (Cost Records and Audit) Rules, 2014, as amended
prescribed by the Central Government under sub-section (1) of Section
148 of the Companies Act, 2013 and are of the opinion that, prima
facie, the prescribed cost records have been made and maintained. We
have, however, not made a detailed examination of the cost records with
a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Employees'' State Insurance,
Income- tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value
Added Tax, cess and other material statutory dues applicable to it with
the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax,
Customs Duty, Excise Duty, Value Added Tax, cess and other material
statutory dues in arrears as at 31st March, 2016 for a period of more
than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Service Tax, Customs
Duty, Excise Duty, and Value Added Tax which have not been deposited as
on 31st March, 2016 on account of disputes are given below:
Nature of Forum where
dues dispute is
Name of statute pending
Supreme Court
High Court
The Central Excise
Act, 1944 Excise Duty CESTAT
Commissioner
Supreme Court
The Custom Act, 1962 Customs Duty CESTAT
Commissioner
Commissioner
The Karnataka Value Added
Tax Act, 2003 VAT DDCT
CESTAT
Chapter V of the Finance
Act, 1994 Service Tax Commissioner
CITA
The Income Tax Act, 1961 Income Tax ITAT
High Court
Name of Statute Period(s) to which Amount
unpaid Amount
paid
the amount relates * (Rs. in
crores) under
protest
(Rs. in
crores)
2000-01 to 2012-13 15.60 48.16
1997-98 to 2015-16 121.45 -
The Central Excise 1998-99 to 2015-16 272.54 10.88
Act, 1944
2002-03 to 2014-15 47.78 32.72
The Custom Act, 1962 2002-03 to 2004-05 43.87 5.49
1995-96 to 2014-15 236.35 10.11
2008-09 to 2015-16 85.04 8.45
The Karnataka Value 2008-09 to 2009-10 17.85 9.00
Added Tax Act, 2003
2012-13 0.49 -
Chapter V of the
Finance Act, 1994 2004-05 to 2010-11 21.60 0.41
2002-03 to 2014-15 78.94 2.68
1992-93 to 2011-12 0.49 0.98
The Income Tax
Act, 1961 2003-04 to 2006-07 83.07 -
2002-03 to 2004-05 90.17 -
*Period represents the earliest year to the latest year
(viii) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of loans or
borrowings to financial institutions, banks and government and dues to
debenture holders.
(ix) In our opinion and according to the information and explanations
given to us, money raised by way of the term loans have been applied by
the Company during the year for the purposes for which they were raised
or as per purposes revised with appropriate approvals, other than
temporary deployment pending application of proceeds. The Company has
neither raised any moneys by way of initial public offer / further
public offer (including debt instruments) nor were such proceeds
pending to be applied, during the current year.
(x) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company by its officers or employees has been noticed or
reported during the year.
(xi) In our opinion and according to the information and explanations
given to us, having regard to legal opinions obtained by the Company,
the Company has paid/ provided managerial remuneration in accordance
with the requisite approvals mandated by the provisions of section 197
read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under
paragraph 3(xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations
given to us, the Company is in compliance with Section 177 and 188 of
the Companies Act, 2013 where applicable, for all transactions with the
related parties and the details of related party transactions have been
disclosed in the financial statements etc. as required by the
applicable accounting standards.
(xiv) During the year the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible
debentures and hence reporting under paragraph 3(xiv) of the Order is
not applicable to the Company.
(xv) In our opinion and according to the information and explanations
given to us, during the year the Company has not entered into any
non-cash transactions with its directors or persons connected with him.
Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-I
of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm Registration No. 117366W/ W-100018)
A. SIDDHARTH
Partner
Mumbai, dated: 18 May 2016 (Membership No. 31467)
Mar 31, 2014
We have audited the accompanying financial statements of JSW STEEL
LIMITED ("the Company") which comprise the Balance Sheet as at 31
March, 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs) and in accordance with the accounting principles generally
accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Emphasis of Matter
We draw attention to the Note 26(5) to the financial statements
relating to the Company''s assessment that no provision is presently
necessary against the carrying amounts of investments and loan
aggregating to Rs. 2,007.46 crores and with respect to financials
guarantees of Rs. 2,752.57 crores relating to JSW Steel (USA) Inc., a
subsidiary of the Company, for the reasons stated in the note.
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("CARO") issued by the Central Government in terms of Section 227(4A)
of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of 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 the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
notified under the Act (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13 September, 2013 of the Ministry of Corporate Affairs).
(e) On the basis of the written representations received from the
directors as on 31 March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March, 2014
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
In our opinion and according to the information and explanations given
to us, the nature of the Company''s business/ activities/ results during
the year are such that clauses (vi), (xii), (xiii), (xiv), (xviii) and
(xx) of paragraph 4 of the Order are not applicable to the Company.
Further, in respect of other clauses, we report that:
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) Some of the fixed assets were physically verified during the year
by the Management in accordance with a programme of verification, which
in our opinion, provides for physical verification of all the fixed
assets at reasonable intervals. According to the information and
explanations given to us no material discrepancies were noticed on such
verification.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(ii) In respect of its inventories:
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals, except for
inventories lying with third parties where confirmations have been
received.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iii) In respect of unsecured loans granted to two wholly owned foreign
subsidiary companies covered in the register maintained under Section
301 of the Act, according to the information and explanations given to
us:
(a) At the year-end, the outstanding balances of such loans aggregated
Rs. 160.71 crores (number of parties 1) and the maximum amount involved
during the year was Rs. 623.25 crores (number of parties 2).
(b) The rate of interest and other terms and conditions for such loans
are, in our opinion, prima facie, not prejudicial to the interest of
the Company.
(c) The receipts of the principal amounts and interest have been
regular.
(d) There is no overdue amount outstanding as at the year-end.
The Company has not taken any loan from parties covered under Section
301 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services and during the course of our audit we have not observed any
major weakness in such internal control system.
(v) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Act and according to the
information and explanations given to us:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered into the Register maintained under the
said Section have been so entered.
(b) Where each of such transaction (excluding loans reported under
paragraph (iii) above) is in excess of Rs. 5 lakhs in respect of any
party, the transactions have been made at prices which are, prima
facie, reasonable having regard to the prevailing market prices at the
relevant time.
(vi) In our opinion, the Company has an adequate internal audit system
commensurate with the size of the company and the nature of its
business.
(vii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1) (d) of the
Act and are of the opinion that, prima facie, the prescribed cost
records have been made and maintained. We have, however, not made a
detailed examination of the cost records with a view to determine
whether they are accurate or complete.
(viii) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income-tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues applicable to it with the appropriate
authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues in arrears as
at 31 March 2014 for a period of more than six months from the date
they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty and Cess which have not been deposited as on
31 March 2014 on account of disputes are given below:
Name of Statute Nature of Dues Forum where dispute is
pending
Income Tax Act, Income Tax Commissioner of Income Tax
1961 (Appeals)
Wealth Tax Act, Wealth Tax Income Tax Appellate
1957 Tribunal, Kolkata
Chapter V of the Service Tax Commissioner of Central
Finance Act, 1994 Excise (Appeals)
Customs, Excise and Service
Tax Appellate Tribunal
Karnataka Value Sales Tax Karnataka Appellate
Added Tax Act, Special Entry Tax Tribunal, Bangalore
2003
The Central Excise Excise Duty Customs, Excise and Service
Act, 1944 Tax Appellate Tribunal
Commissioner of Central
Excise (Appeals)
The High Court of Bombay
The Customs Act, Customs Duty Commissioner of (Appeals)
1962 Customs
Customs, Excise and Service
Tax Appellate Tribunal
The High Court of Karnataka
The Supreme Court of India
Name of Statue Period to which the Amount Involved
Amount Relates (Rs. in crores)
Income Tax Act
1961 2002-2003 0.49
Wealth Tax Act
1957 2002-2003 0.27
Chapter V of the
Finance Act, 1994 2004-05 & 2012-13 0.15
2001-02 to 2011-12 67.32
Karnataka Value
Added Tax Act,
2003
The Central Excise
Act, 1944 2006-07 to 2007-08 2.69
2006-07 to 2009-10 10.56
1998-99 to 2011-12 250
2005-06 to 2012-13 1.51
1998-1999 0.6
The Customs Act
1962 2011-12 to 2012-13 25.05
1995 to1997, 1999-00, 169.39
2009-10, 2010-11 to
2012-13
2002 43.71
1997 - 1998 & 2.31
2004 - 2005
(ix) The Company does not have accumulated losses at the end of the
financial year and the Company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
(x) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and debenture holders.
(xi) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institutions
are not, prima facie, prejudicial to the interests of the Company.
(xii) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company during the
year for the purposes for which they were obtained, other than
temporary deployment pending application.
(xiii) In our opinion and according to the information and explanations
give to us, and on an overall examination of the Balance Sheet of the
Company, we report that funds raised on short-term basis have, prima
facie, not been used during the year for long-term investment.
(xiv) According to the information and explanations given to us, during
the year the Company had issued 23,000 Non-Convertible Debentures
(NCDs) of Rs. 10 lakhs each and the Company has created security in
respect of 10,000 NCDs and is in the process of creating security in
respect of 13,000 NCDs.
(xv) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm Registration No. 117366W/ W-10018)
A. Siddharth
Mumbai Partner
Dated: 27 May 2014 (Membership No. 31467)
Mar 31, 2013
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of JSW STEEL
LIMITED ("the Company") which comprise the Balance Sheet as at 31
March, 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956 ("the Act") and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
AUDITORS'' RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgement, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March, 2013;
b. in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
EMPHASIS OF MATTER
We draw attention to the following notes to the financial statements:
i. Note 26 (4) relating to the Scheme of Amalgamation and Arrangement
sanctioned by the Bombay High Court on 3rd May 2013. The certified copy
of the Court Order is awaited, on receipt of which the Company will
initiate requisite formalities to give effect to the Scheme.
Accordingly therefore, the accounting treatment laid out in the Scheme
and consequential adjustments that would arise will be dealt with by
the Company in the financial statements, once the Scheme is
implemented.
ii. Note 26 (5) relating to the Company''s assessment that no provision
against the carrying amounts of its long term strategic investment and
loans relating to its subsidiary, JSW Steel (USA) Inc., of Rs. 3,155.65
crores is presently necessary, for the reasons stated in the note.
Our opinion is not qualified in respect of these matters.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1 As required by the Companies (Auditor''s Report) Order, 2003
("CARO") issued by the Central Government in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2.As required by Section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of 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 the Company so far as it appears from our examination of
those books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
e. On the basis of the written representations received from the
directors as on 31 March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March, 2013
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
(i) Having regard to the nature of the Company''s
business/activities/result, clauses (i-c), (iii), (vi), (x), (xii),
(xiii), (xiv), (xviii) and (xx) of CARO are not applicable to the
Company.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
(b) The Company has a program of verification of fixed assets to cover
all the items in a phased manner over a period of three years which, in
our opinion, is reasonable having regard to the size of Company and the
nature of its assets. Pursuant to the program, certain fixed assets
were physically verified by the Management during the year. According
to the information and explanations given to us no material
discrepancies were noticed on such verification.
(iii) In respect of its inventories:
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals, except for
inventories lying with third parties where confirmations have been
received.
(b) As the Company''s inventory of raw materials mostly comprises bulk
materials such as iron ore, iron ore fines, coal, coke, pellets etc.
requiring technical expertise for establishing the quality and the
quantification thereof, the Company has hired independent agencies for
physical verification of such stocks. Relying on the above, according
to the information and explanations furnished to us, the procedures for
physical verification of inventory followed by the management are
reasonable and adequate in relation to the size of the Company and the
nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iv) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased/ sold are of special nature and suitable alternate sources
for obtaining comparable quotations are not readily available, there
are adequate internal control systems commensurate with the size of the
Company and the nature of its business for the purchase of inventory
and fixed assets and for the sale of goods. During the course of our
audit, we have not observed any major weakness in such internal
control.
(v) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, and
according to the information and explanations given to us:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered into the Register maintained under the
said Section have been so entered.
(b) Where each of such transaction is in excess of Rs. 5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
(vi) In our opinion, the Company has an adequate internal audit system
commensurate with the size of the company and the nature of its
business
(vii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that, prima facie, the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(viii) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other material statutory dues applicable to it with the
appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Income-tax, Wealth Tax,
Custom Duty, Excise Duty, Cess and other material statutory dues in
arrears as at 31 March 2013 for a period of more than six months from
the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on
31 March 2013 on account of disputes are given below:
Name of Statute Nature of the Dues Amount involved
(Rs. in Crores)
Income Tax Act 1961 Income Tax 0.49
The Bombay Sales Tax Sales Tax 7.43
Act 1959
The Karnataka Value Sales Tax 10.19
Added Tax Act 2003
Chapter V of the Service Tax 48.12
Finance Act 1994
Chapter V of the Service Tax 0.27
Finance Act, 1994
The Custom Act, 1962 Custom Duty 2.24
The Custom Act, 1962 Custom Duty 43.71
The Custom Act, 1962 Custom Duty 109.21
Name of Staute Period to which Forum where Dispute is
the amount pending
relates
Income Tax Act 1961 2002-2003 Commissioner of Income Tax
(Appeals)
The Bombay Sales Tax
Act 1959 2000-2004 The Joint Commissioner of
Sales Tax (Appeals), Mumbai
The Karnataka Value
Added Tax Act 2003 2007-2010 Karnataka Appellate
Tribunal, Bangalore
Chapter V of the
Finance Act 1994 2005-2012 Custom, Excise and Service
Tax Appellate Tribunal
Chapter V of the
Finance Act 1994 2006-2007 Custom, Excise and Service
Tax Appellate Tribunal
The Customs Act 1962 1997-1998, The Supreme Court of India
2004-2005
The Customs Act 1962 2001-2002 The High Court of Karnataka
The Customs Act 1962 2001-2002, Custom, Excise and Service
2007-2008, Tax Appellate Tribunal /
2009-2011 Commissioner of Customs
(Appeals)
ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks, financial institutions and debenture holders.
(x) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by subsidiaries (including step down
subsidiaries) from banks and financial institutions are not prima facie
prejudicial to the interests of the Company.
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company during the
year for the purposes for which they were obtained, other than
temporary deployment pending application.
(xii) In our opinion and according to the information and explanations
give to us and on an overall examination of the balance sheet of the
Company, we report that the fund raised on short- term basis have,
prima face, not been used during the year for long-term investment.
(xiii) According to the information and explanations given to us and
the records examined by us, securities/ charge have been created or are
in the process of creation in respect of the debenture issued.
(xiv) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm Registration No. 117366W)
P.B. Pardiwalla
Partner
MUMBAI (Membership No. 40005)
23 May, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of JSW STEEL LIMITED
("the Company") as at 31 March 2012, the Statement of Profit and Loss
and the Cash Flow Statement of the Company for the year ended on that
date, both annexed thereto. These financial statements are the
responsibility of the Companys Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also
includes assessing the accounting principles used and the significant
estimates made by the Management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. Without qualifying our opinion, we draw attention to note 26(4)
relating to the Companys assessment that no provision against the
carrying amounts of its long term strategic investment and loans
extended to its subsidiary, JSW Steel (USA) Inc. of Rs. 1,948.41 crores
is presently necessary, for the reasons stated in the note.
4. As required by the Companies (Auditors Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
5. Further to and read with our comments in paragraph 3 above and the
Annexure referred to in paragraph 4 above, we report as follows:
a. we have obtained all the information and explanations which to the
best of 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 the Company so far as it appears from our examination of
those books;
c. the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d. in our opinion, the Balance Sheet, the Statement of Profit and
Loss and the Cash Flow Statement dealt with by this report are in
compliance with the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956;
e. in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2012;
(ii) in the case of the Statement of Profit and Loss, of the profit
of the Company for the year ended on that date and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
6. On the basis of the written representations received from the
Directors as on 31 March 2012 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31 March 2012
from being appointed as a director in terms of Section 274(1) (g) of
the Companies Act, 1956.
Annexure to the Auditors Report
(Referred to in paragraph 4 of our report of even date)
(i) Having regard to the nature of the Companys
business/activities/result, clauses (i-c), (iii), (vi), (x), (xii),
(xiii), (xiv), (xviii) and (xx) of CARO are not applicable to the
Company.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a programme of verification which, in
our opinion, provides for physical verification of all the fixed
assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
(iii) In respect of its inventory:
(a) As explained to us, the inventories were physically verified
during the year by the Management at reasonable intervals, except for
inventories lying with third parties where confirmations have been
received.
(b) As the Companys inventory of raw materials mostly comprises bulk
materials such as iron ore, iron ore fines, coal, coke, pellets etc.
requiring technical expertise for establishing the quality and the
quantification thereof; the Company has hired independent agencies for
physical verification of such stocks. Relying on the above, according
to the information and explanations furnished to us, the procedure of
physical verification of inventory followed by the management are
reasonable and adequate in relation to the size of the Company and the
nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iv) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased/sold are of special nature and suitable alternate sources for
obtaining comparable quotations are not readily available, there are
adequate internal control systems commensurate with the size of the
Company and the nature of its business for the purchase of inventory
and fixed assets and for the sale of goods. During the course of our
audit, we have not observed any major weakness in such internal
control.
(v) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, and
according to the information and explanations given to us:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered into the Register maintained under the
said Section have been so entered.
(b) Where each of such transaction is in excess of Rs. 5 lakhs in respect
of any party, the transactions have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time.
(vi) In our opinion, the Company has an adequate internal audit system
commensurate with the size of the company and the nature of its
business.
(vii) We have broadly reviewed the books of account and records
maintained by the Company pursuant to the rules made by the Central
Government for the maintenance of cost records under Section 209(1) (d)
of the Companies Act, 1956 in respect of steel, steel products and
electricity and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the records with a view to
determining whether they are accurate or complete. To the best of our
knowledge and according to the information and explanations given to
us, the Central Government has not prescribed the maintenance of cost
records for any other product of the Company.
(viii) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty , Excise
Duty and other material statutory dues applicable to it with the
appropriate authorities.
(b) There were no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Custom Duty, Excise Duty and other material statutory dues
in arrears as at 31 March 2012 for a period of more than six months
from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth
Tax, Service Tax, Custom Duty and Excise Duty which have not been
deposited as on 31 March 2012 on account of disputes are given below:
Name of Nature of Amount Period to Forum where dispute
Statute the Dues involved which the is pending
Rs.in amount
Crore relates
Income Tax Income Tax 0.49 2002-2003 Commissioner of
Act, 1961 Income Tax(Appeal)
The Bombay Sales Tax 14.27 2000-2002, The Joint Commissioner
Sales Tax 2003-2005 of Sales Tax (Appeals)
Act, 1959 Thane
The Sales Tax 2.69 2006-2007 Karnataka Appellate
Karnataka Tribunal,Bangalore
Value Added
Tax Act,
2003
Chapter V of Service Tax 20.60 2005-2009 Customs,Excise and
the Finance Service Tax Appellate
Act, 1994 Tribunal
Chapter V of Service Tax 0.31 2005-2006 The Commisioner of
the Finance Central Excise
Act, 1994 (Appeals),Mangalore
The Custom Customs 43.71 2001-2002 High Court of
Act, 1962 Duty Karnataka
The Custom Customs 13.02 2001-2002, Customs,Excise and
Act, 1962 Duty 2008-2009 Service Tax Apellate
Tribunal
The Custom Customs 2.14 2004-2005 Supreme Court of
Act, 1962 Duty Karnataka
The Central Excise Duty 1.33 2005-2006 The COmmisioner of
Excise Act, Central Excise
(Appeals),Chennai
1944
The Central Excise Duty 302.52 2002-2010 Customs,Excise and
Excise Act, Service Tax Appellate
1944 Tribunal
The Central Excise Duty 0.31 2008 The Commissioner
Excise Act, of Central Excise
1944 (Appeals),Mumbai
The Central Excise Duty 0.19 2005-2007 Additional Comisioner
Excise Act, Salem
1944
The Central Excise Duty 0.19 2004-2005 The Joint Commisioner
Excise Act, Sales Tax (Appeals)
1944 Thane
The Central Excise Duty 0.23 2008 Commisioner,Central
Excise Act, Excise,Mumbai
1944
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks, financial institutions and debenture holders.
(x) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by subsidiaries (including step down
subsidiaries) from banks and financial institutions are not prima
facie prejudicial to the interests of the Company.
(xi) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, term loans
availed by the Company were, prima facie, applied by the Company during
the year for the purposes for which the loans were obtained, other than
temporary deployment pending application
(xii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, fund raised
on short- term basis have, prima facie, not been used during the year
for long-term investment.
(xiii) According to the information and explanations given to us and
the records examined by us, security/ charge have been created or are
in the process of creation in respect of the debenture issued.
(xiv) To the best of our knowledge and belief and according to the
information and explanations given to us, no material fraud on or by
the Company was noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm Registration No. 117366W)
P. B. Pardiwalla
Place: Mumbai Partner
Date : 14 May 2012 (Membership No. 40005)
Mar 31, 2011
1. We have audited the attached Balance Sheet of JSW Steel Limited
("the Company") as at 31 st March, 2011, the Profit and Loss Account
and the Cash Flow Statement of the Company for the year ended on that
date, both annexed thereto. These financial statements are the
responsibility of the Companys Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
(a) we have obtained all the information and explanations which to the
best of 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 the Company so far as it appears from our examination of
those books;
(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
(e) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
(ii) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of the written representations received from the
Directors as on 31st March, 2011 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March, 2011
from being appointed as a director in terms of Section 274(1)(g) of the
Companies Act, 1956.
Annexure to the Auditors Report
(Referred to in paragraph 3 of our report of even date)
1. Having regard to the nature of the Companys business/activity,
Clauses (i-c), (iii), (vi), (x), (xii), (xiii), (xiv), (xviii) and (xx)
of CARO are not applicable to the Company.
2. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) Some of the fixed assets were physically verified during the year by
the management in accordance with a programme of verification, which in
our opinion provides for physical verification of all the fixed assets
at reasonable intervals. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
3. In respect of its inventories:
a) As explained to us, inventories were physically verified during the
year by the management at reasonable intervals, except for inventories
lying with third parties where confirmations have been received.
b) As the Companys inventory of raw materials mostly comprises bulk
materials such as coal, coke, pellets etc. requiring technical
expertise for establishing the quality and the quantification thereof,
the Company has hired independent agencies for physical verification of
such stocks. Relying on the above, according to the information and
explanation furnished to us, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased/ sold are of special nature and suitable alternate sources
for obtaining comparable quotations are not readily available, there
are adequate internal control systems commensurate with the size of the
Company and the nature of its business for the purchase of inventory
and fixed assets and for the sale of goods. During the course of our
audit we have not observed any major weaknesses in such internal
controls.
5. In respect of contracts or arrangements entered in the register
maintained in pursuance of Section 301 of the Companies Act, 1956 and
according to the information and explanations given to us:
a) The particulars of the contracts or arrangements referred to in
Section 301 that needed to be entered into the register, maintained
under the said section have been so entered.
b) Where each of such transaction is in excess of X 5 lacs in respect
of any party, the transactions have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
7. We have broadly reviewed the books of account and records
maintained by the Company pursuant to the rules made by the
Central Government for the maintenance of cost records under Section
209(1)(d) of the Companies Act, 1956 in respect of steel, steel
products and electricity and are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have,
however, not made a detailed examination of the records with a view to
determining whether they are accurate or complete. To the best of our
knowledge and according to the information and explanations given to
us, the Central Government has not prescribed the maintenance of cost
records for any other product of the Company.
8. According to the information and explanations given to us in
respect of its statutory dues:
a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Income-tax, Wealth- tax, Sales-tax,
Service tax, Custom duty, Excise duty, Cess, Investor Education and
Protection Fund and any other material statutory dues applicable to it
with the appropriate authorities.
b) There were no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Customs Duty, Excise Duty, Cess and other material
statutory dues in arrears as at 31st March, 2011 for a period of more
than six months from the date they became payable.
c) Details of dues of Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty and Cess which have not been deposited as on
31st March, 2011 on account of disputes are given below :
Rs. in crores
Name of
Statute Nature of Amount Period to which Forum where dispute
the dues the amount is pending
relates
Income
Tax Act, Income Tax 0.49 2002 - 2003 Commissioner of
1961 Income Tax (Appeal)
The Bombay Sales Tax 14.27 2000 - 2002, The Joint
Sales Tax
Act, 2003 - 2005 Commissioner of
1959 Sales Tax (Appeals),
Thane
Chapter
V of Service Tax 18.90 2005 - 2009 Customs, Excise and
the
Finance Act, Service Tax Appellate
1994 Tribunal
Chapter
V of Service Tax 0.31 2005 - 2006 The Commissioner
the
Finance Act, of Central Excise
1994 (Appeals), Mangalore
The Custom Customs 2.14 2004 - 2005 Supreme Court of
Act,1962 Duty India.
The Custom Customs 43.71 2001 - 2002 High Court of
Act,1962 Duty Karnataka
The Custom Customs 13.01 2001 - 2002, Customs, Excise and
Act,1962 Duty 2008 - 2011 Service Tax Appellate
Tribunal
The Custom Customs 1.89 2009 - 2010 Commissioner of
Act,1962 Duty Custom, Guntur
The Central Excise Duty 40.79 2000 - 2008 Customs, Excise and
Excise
Act,1944 Service Tax Appellate
Tribunal.
The Central Excise Duty 49.34 2000 - 2010 Customs, Excise and
Excise
Act,1944 Service Tax Appellate
Tribunal
The Central Excise Duty 0.35 2007 - 2008, The Commissioner
Excise
Act,1944 2009 - 2010 of Central Excise
(Appeals), Mumbai
The Central Excise Duty 5.97 2009 - 2010 The Commissioner of
Excise
Act,1944 Central Excise, Dadar
The Central Excise Duty 0.19 2004 - 2005 The Commissioner of
Excise
Act,1944 Central Excise, Thane
The Central Excise Duty 0.19 2005 - 2007 Additional
Excise
Act,1944 Commissioner, Salem
9. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and debenture holders.
10. In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by subsidiaries (including step down
subsidiaries) from banks are prima facie not prejudicial to the
interests of the Company.
11. To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, term loans
availed by the Company were, prima facie, applied by the Company during
the year for the purposes for which the loans were obtained, other than
temporary deployment pending application.
12. According to the information and explanations given to us, and on
an overall examination of the balance sheet of the Company, funds
raised on short-term basis have, prima facie, not been used during the
year for long-term investment.
13. According to the information and explanations given to us and the
records examined by us, securities/charges have been created in respect
of the debentures issued.
14. To the best of our knowledge and belief and according to the
information and explanations given to us, no material fraud on or by
the Company was noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
Registration No. 117366W
P. B. Pardiwalla
Place: Mumbai Partner
Date: 16 May 2011 Membership No. 40005
Mar 31, 2010
1. We have audited the attached Balance Sheet of JSW Steel Limited
("the Company") as at 31 March 2010, the Profit and Loss Account and
the Cash Flow Statement of the Company for the year ended on that date,
both annexed thereto. These financial statements are the responsibility
of the Companys management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards, require.that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (CARO)
issued by the Central Government in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
(a) we have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of
those books;
(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956.
(e) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March, 2010;
(ii) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date. 5. On the basis of the written
representations received from the Directors as on 31 March, 2010 and
taken on record by the Board of Directors, none of the Directors are
disqualified as on 31 March 2010 from being appointed as a Director in
terms of clause (g) of sub-section (1) of Section 274 of the Companies
Act, 1956.
Annexure to the Auditors Report (Referred to in paragraph 3 of our
report of even date)
1. Having regard to the nature of the Companys business/activity,
clauses (i-c), (iii), (vi), (x), (xii), (xiii), (xiv), (xviii) and (xx)
of CARO are not applicable to the Company.
2. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) Some of the fixed assets were physically verified during the year by
the management in accordance with a programme of verification, which in
our opinion provides for physical verification of all the fixed assets
at reasonable intervals. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
3. In respect of its inventories:
a) As explained to us, inventories were physically verified during the
year by the management at reasonable intervals, except for inventories
lying with third parties where confirmations have been received.
b) As the Companys inventory of raw materials mostly comprises bulk
materials such as coal, coke, pellets etc. requiring technical
expertise for establishing the quality and the quantification thereof,
the Company has hired independent agencies for physical verification of
such stocks. Relying on the above, according to the information and
explanations furnished to us, the procedures of physical verification
of inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
4. In our opinion and according to the information and explanations
given to us, having regard to.the explanations that some of the items
purchased/ sold are of special nature and suitable alternate sources
for obtaining comparable quotations are not readily available, there
are adequate internal control systems commensurate with the size of the
Companyand the nature of its business for the purchase of inventory
and fixed assets and for the sale of goods. During the course of our
audit we have not observed any major weaknesses in such internal
controls.
5. In respect of contracts or arrangements entered in the register
maintained in pursuance of Section 301 of the Companies Act, 1956 and
according to the information and explanations given to us:
a) The particulars of the contracts or arrangements referred to in
Section 301 that needed to be entered into the register, maintained
under the said section have been so entered.
b) Where each of such transaction is in excess of Rs. 5 lacs in respect
of any party, the transactions have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
7. We have broadly reviewed the books of account and records
maintained by the Company pursuant to the rules made by the Central
Government for the maintenance of cost records under section 209(1 )(d)
of the Companies Act, 1956 in respect of steei, steel products and
electricity and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the records with a view to
determining whether they are accurate or complete. To the best of our
knowledge and according to the information and explanations given to
us, the Central Government has not prescribed the maintenance of cost
records for any other product of the Company.
8. According to the information and explanations given to us in
respect of its statutory dues:
a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Income Tax, Wealth-Tax, Sales-Tax,
Service Tax, Custom Duty, Excise Duty, Cess, Investor Education and
Protection Fund and any other material statutory dues applicable to it
with the appropriate authorities.
b) There were no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory
dues in arrears as at 31 March 2010 for a period of more than six
months from the date they became payable.
c) Details of dues of Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty and Cess which have not been deposited as on
31 March 2010 on account of disputes are given below:
Rupees in crores
Name of Statute Nature of Amount Pericd to Forum where
the dues which the dispute is pending
amount relates
Income Tax Act, Income Tax 9.52 2002-2003, Commissioner of
1961 2005-2006 Income Tax (Appeal)
Income Tax Act, Income Tax 13.52 2004-2005 Income Tax
1961 Appellate Tribunal
The Bombay Sales Tax 0.35 2000-2002 The Joint
Sales Tax Act, Commissioner of
1959 Sales Tax (Appeals),
Thane
Chapter V of
the Service Tax 5.29 2005-2008 Customs, Excise
Finance Act, 1994 and Service Tax
Appellate Tribunal
Chapter V of
the Service Tax 7.82 2007-2008 The Commissioner
Finance Act, 1994 of Central Excise,
Belgaum
The Custom Custom 2.14 2004-2005 Supreme Court of
Act, 1962 Duty India
The Custom Act, Custom 49.30 2001-2002, High Court of
1962 Duty 2004-2005 Karnataka
The Custom Act, Custom 11.03 2001-2002 Customs, Excise
1962 Duty and Service Tax
Appellate Tribunal
The Custom Act, Custom 38.72 2004-2005 Deputy
1962 Duty Commissioner of
Custom, Bangalore
Name of Statute Nature of Amount Period to
the dues which the
amount relates
The Central Excise Duty 40.79 2000-2008
Excise Act, 1944
The Central Excise Duty 40.31 2005-2009
Excise Act, 1944
The Central Excise Duty 0.01 2005-2006
Excise Act, 1944
The Central Excise Duty 0.31 2007-2008
Excise Act, 1944
The Central Excise Duty 35.84 2003-2008
Excise Act, 1944
The Central Excise Duty 0.19 2004-2005
Excise Act, 1944
Name of Statue Forum where
dispute is pending
The Central
Excise Act, 1944 Customs, Excise
and Service Tax
Appellate Tribunal
The Central
Excise Act, 1944 Supreme Court of
India
The Central
Excise Act, 1944 High Court of
Maharashtra
The Central
Excise Act, 1944 The Commissioner
of Central Excise
(Appeals), Mumbai
The Central
Excise Act, 1944 The Commissioner
of Central Excise,
Belgaum
The Central
Excise Act, 1944 The Commissioner
of Central Excise,
Thane
9. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
Financial Institutions, Banks and Debentureholders.
10. In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by subsidiaries (including step down
subsidiaries) and others from banks are prima facie not prejudicial to
the interests of the Company.
11. To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, term loans
availed by the Company were, prima facie, applied by the Company during
the year for the purposes for which the loans were obtained, other than
temporary deployment pending application.
12. According to the information and explanations given to us, and on
an overall examination of the balance sheet of the Company, funds
raised on short-term basis have, prima facie, not been used during the
year for long term investment.
13. According to the information and explanations given to us and the
records examined by us, securities/charges have been created in respect
of the debentures issued.
14. To the best of our knowledge and belief and according to the
information and explanations given to us, no material fraud on or by
the Company was noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
Registration No. 117366W
P. B. Pardiwalla
Place: Mumbai Partner
Date: 3 May 2010 Membership No. 40005