INDEPENDENT AUDITOR’S REPORT Report on the Audit of the ......aforesaid standalone Ind AS financial statements give the information required by the Companies Act, 2013, as amended

12th Floor, The Ruby29 Senapati Bapat MargDadar (West)Mumbai - 400 028, India

Tel: +91 22 6819 8000

Chartered Accountants

S R B C & CO LLP, a Limited Liability Partnership with LLP Identity No. AAB-4318Regd. Of ce : 22, Camac Street, Block ‘B’, 3rd Floor, Kolkata-700 016

INDEPENDENT AUDITOR’S REPORT

To the Members of JSW Bengal Steel Limited

Report on the Audit of the standalone Ind AS Financial Statements

Opinion

We have audited the accompanying standalone Ind AS financial statements of JSW Bengal Steel Limited(“the Company”), which comprise the Balance sheet as at March 31 2020, the Statement of Profit andLoss, including the statement of Other Comprehensive Income, the Cash Flow Statement and theStatement of Changes in Equity for the year then ended, and notes to the financial statements, including asummary 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, theaforesaid standalone Ind AS financial statements give the information required by the CompaniesAct, 2013, as amended (“the Act”) in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India, of the state of affairs of the Company as atMarch 31, 2020, its loss including other comprehensive income, its cash flows and the changes in equityfor the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance with the Standardson Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the ‘Auditor’s Responsibilities for the Audit of the standalone Ind ASFinancial Statements’ section of our report. We are independent of the Company in accordance with the‘Code of Ethics’ issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under the provisions of the Act andthe Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.

Material Uncertainty Related to Going Concern

We draw attention to Note 22.10 in the standalone Ind AS financial statements, which indicatesthat there are material uncertainties relating to the allocation of coal and iron ore mines to theCompany and its consequential impact on the implementation of the Project. The said note alsodescribes additional uncertainties on implementation of the project arising due to Covid-19outbreak. The events described in the said Note to the financial statements indicate that a materialuncertainty exists that may cast significant doubt on the Company’s ability to continue as a goingconcern. However, for reasons stated in the said Note, the financial statements of the Companyhave been prepared on a going concern basis.

Our opinion is not modified in respect of this matter.

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

The Company’s Board of Directors is responsible for the other information. The other information


comprises the information included in the Management Discussion and Analysis, Board’s Reportincluding Annexures to Board’s Report, but does not include the standalone Ind AS financial statementsand our auditor’s report thereon.

Our opinion on the standalone Ind AS financial statements does not cover the other information and wedo not express any form of assurance conclusion thereon.

In connection with our audit of the standalone Ind AS financial statements, our responsibility is to readthe other information and, in doing so, consider whether such other information is materially inconsistentwith the financial statements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If, based on the work we have performed, we conclude that there is a material misstatement ofthis 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 Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act withrespect to the preparation of these standalone Ind AS financial statements that give a true and fair view ofthe financial position, financial performance including other comprehensive income, cash flows andchanges in equity of the Company in accordance with the accounting principles generally accepted inIndia, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act readwith the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions of the Act forsafeguarding 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 arereasonable and prudent; and the design, implementation and maintenance of adequate internal financialcontrols, that were operating effectively for ensuring the accuracy and completeness of the accountingrecords, relevant to the preparation and presentation of the standalone Ind AS financial statements thatgive 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 theCompany’s ability to continue as a going concern, disclosing, as applicable, matters related to goingconcern and using the going concern basis of accounting unless management either intends to liquidatethe Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone Ind AS financialstatements as a whole are free from material misstatement, whether due to fraud or error, and to issue anauditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with SAs will always detect a material misstatement whenit exists. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on thebasis of these standalone Ind AS financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professionalskepticism 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, andobtain 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 ofinternal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsiblefor expressing our opinion on whether the Company has adequate internal financial controls systemin place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company’s ability to continue as a going concern.If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’sreport to the related disclosures in the financial statements or, if such disclosures are inadequate, tomodify our opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the Company to cease to continueas 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 theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scopeand timing of the audit and significant audit findings, including any significant deficiencies in internalcontrol that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence, and to communicate with them all relationships and othermatters that may reasonably be thought to bear on our independence, and where applicable, relatedsafeguards.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the CentralGovernment 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 ourknowledge 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 faras it appears from our examination of those books;

(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of OtherComprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity dealtwith 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 AccountingStandards specified under Section 133 of the Act, read with Companies (Indian AccountingStandards) Rules, 2015, as amended;

(e) The going concern matter described in Material Uncertainty Related to Going Concern paragraphabove, in our opinion, may have an adverse effect on the functioning of the Company;

(f) On the basis of the written representations received from the directors as on March 31, 2020 takenon record by the Board of Directors, none of the directors is disqualified as on March 31, 2020from being appointed as a director in terms of Section 164 (2) of the Act;

(g) With respect to the adequacy of the internal financial controls over financial reporting of theCompany with reference to these standalone Ind AS financial statements and the operatingeffectiveness of such controls, refer to our separate Report in “Annexure 2” to this report;

(h) In our opinion, the managerial remuneration for the year ended March 31, 2020 has beenpaid / provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act;

(i) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best ofour information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition;

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

iii. There were no amounts which were required to be transferred to the Investor Education andProtection Fund by the Company.

For S R B C & CO LLPChartered AccountantsICAI Firm Registration Number: 324982E/E300003

per Vishal BansalPartnerMembership Number: 097546UDIN: 20097546AAAABW2301Place of Signature:Date: May 12, 2020

VISHAL BANSAL

Digitally signed by VISHAL BANSAL Date: 2020.05.12 16:55:57 +05'30'


ANNEXURE “1” TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ sectionof our report of even date)

(i) (a) The Company has maintained proper records showing full particulars, including quantitativedetails and situation of fixed assets.

(b) All fixed assets were physically verified during the year by the management in accordancewith a regular programme of verification which, in our opinion, is reasonable having regardto the size of the Company and the nature of its assets. No material discrepancies werenoticed on such verification.

(c) According to the information and explanations given by the management, the title deeds ofimmovable properties included in property, plant and equipment and leasehold landclassified as the Right of Use Assets are held in the name of the Company.

(ii) The Company does not have any inventory and accordingly, the requirements underparagraph 3 (ii) of the Order are not applicable to the Company.

(iii) According to the information and explanations given to us, the Company has not grantedany loans, secured or unsecured to companies, firms, Limited Liability Partnerships or otherparties 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 tothe Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to us, the Companyhas not advanced loans to directors / to a company in which the Director is interested towhich provisions of section 185 of the Companies Act 2013 apply and hence not commentedupon. In our opinion and according to the information and explanations given to us, theCompany has complied with the provisions of Sections 186 of the Companies Act, 2013 inrespect of making investments, as applicable. In our opinion and according to theinformation and explanations given to us, the company has not given any loans /guarantees/provided security to which the provisions of sec 186 apply and hence not commented upon.

(v) In our opinion and according to the information and explanations given to us, the Companyhas not accepted any deposit within the meaning of Sections 73 to 76 of the Act and theCompanies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisionsof clause 3 (v) of the Order are not applicable.

(vi) Since the Company has not commenced commercial production of steel, in our opinion, theprovisions of clause 3(vi) of the Order are not applicable to the Company.

(vii) According to the information and explanations given to us, in respect of statutory dues:

a) The Company is regular in depositing with appropriate authorities undisputed statutorydues including provident fund, income-tax, goods and service tax, cess and otherstatutory dues applicable to it. As informed the provisions relating to employees state


insurance, customs duty, excise Duty, sales tax, value added tax and service tax werenot applicable to the Company during the year.

b) According to the information and explanation given to us, there were no undisputedamounts payable in respect of provident fund, income-tax, goods and service tax, cessand other statutory dues were outstanding, at the year end, for a period of more thansix months from the date they became payable. As informed the provisions relating toemployees state insurance, customs duty and excise duty, sales tax, value added taxand service tax were not applicable to the Company during the year.

c) According to the information and explanations given to us, there are no dues of incometax and cess which have not been deposited on account of any dispute. As informedthe provisions relating to sales-tax, service tax, customs duty, Goods and Service Taxand value added tax were not applicable to the Company during the year.

(viii) The Company did not have any outstanding loans or borrowing dues in respect of a financialinstitution or bank or to government or dues to debenture holders during the year.

(ix) According to the information and explanations given by the management, the Company hasnot raised any money way of initial public offer / further public offer / debt instruments andterm loans hence, reporting under clause (ix) is not applicable to the Company and hencenot commented upon.

(x) Based upon the audit procedures performed for the purpose of reporting the true and fairview of the financial statements and according to the information and explanations given bythe management, we report that no fraud by the company or no material fraud on thecompany by the officers and employees of the Company has been noticed or reported duringthe year.

(xi) According to the information and explanations given by the management, the managerialremuneration has been paid / provided in accordance with the requisite approvals mandatedby 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 clause3(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 withthe related parties are in compliance with section 177 and 188 of Companies Act, 2013 whereapplicable and the details have been disclosed in the notes to the financial statements, asrequired by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overall examination ofthe balance sheet, the company has not made any preferential allotment or private placementof 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, notcommented upon.

(xv) According to the information and explanations given by the management, the Company hasnot entered into any non-cash transactions with directors or persons connected with him asreferred to in section 192 of Companies Act, 2013.


(xvi) According to the information and explanations given to us, the provisions of section 45-IAof the Reserve Bank of India Act, 1934 are not applicable to the Company.



VISHAL BANSAL



ANNEXURE “2” TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ONTHE STANDALONE FINANCIAL STATEMENTS OF JSW BENGAL STEEL LIMTED(Referred to in paragraph 1(g) under “Report on Other Legal and Regulatory Requirements”section of our report of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of JSW Bengal SteelLimited (“the Company”) as of March 31, 2020 in conjunction with our audit of the standalonefinancial 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 financialcontrols based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India. These responsibilities include the design, implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business, including adherence to the Company’s policies, the safeguardingof its assets, the prevention and detection of frauds and errors, the accuracy and completeness ofthe accounting records, and the timely preparation of reliable financial information, as requiredunder the Companies Act, 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls overfinancial reporting with reference to these standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal Financial ControlsOver Financial Reporting (the “Guidance Note”) and the Standards on Auditing as specified undersection 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internalfinancial controls and, both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting with reference to these standalone financial statements wasestablished 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 theinternal financial controls over financial reporting with reference to these standalone financialstatements and their operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining an understanding of internal financial controls over financial


reporting with reference to these standalone financial statements, assessing the risk that a materialweakness exists, and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor’s judgement,including the assessment of the risks of material misstatement of the financial statements, whetherdue to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion on the internal financial controls over financial reporting with referenceto these standalone financial statements.

Meaning of Internal Financial Controls Over Financial Reporting With Reference to theseFinancial Statements

A company's internal financial control over financial reporting with reference to these standalonefinancial statements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financial controlover financial reporting with reference to these standalone financial statements includes thosepolicies 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 offinancial statements in accordance with generally accepted accounting principles, and thatreceipts and expenditures of the company are being made only in accordance with authorisationsof management and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition, use, or disposition of the company'sassets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting WithReference to these Standalone Financial Statements

Because of the inherent limitations of internal financial controls over financial reporting withreference to these standalone financial statements, including the possibility of collusion orimproper management override of controls, material misstatements due to error or fraud mayoccur and not be detected. Also, projections of any evaluation of the internal financial controlsover financial reporting with reference to these standalone financial statements to future periodsare subject to the risk that the internal financial control over financial reporting with reference tothese standalone 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 overfinancial reporting with reference to these standalone financial statements and such internalfinancial controls over financial reporting with reference to these standalone financial statements


were operating effectively as at March 31, 2020 , based on the internal control over financialreporting criteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India.



VISHAL BANSAL


JSW Bengal Steel LimitedBalance Sheet as at 31st March, 2020 (Rupees in lacs)

As at As at 31st March 2020 31st March 2019

Notes AssetsNon-current assetsProperty, Plant and Equipment 3 20,061 20,751 Capital work-in-progress 3 1,206 1,248 Right-of-use Assets 3.1 7,534 - Financial Assets (i) Investments 4 13,719 13,719 (ii) Other financial assets 5 66 84 Other non-current assets 6 7,158 10,041

49,744 45,842 Current assets Financial Assets (i) Investments 7 - 334 (ii) Cash and cash equivalents 8 543 33 (iii) Bank Balances other than (ii) above 9 - 39 (iv) Other financial assets 5 90 68 Current Tax Assets(net) 10 6 3 Other current assets 6 16 107

655 584 Total assets 50,399 46,427

Equity and liabilitiesEquity Equity Share Capital 11 45,821 45,821 Share application money pending allotment 11 6,300 - Other Equity (i) Retained earnings 12 (3,988) (2,911) (ii) Other reserves 12 50 50 (iii) Share Warrant 12 1,398 1,398 TOTAL EQUITY 49,581 44,358

LiabilitiesNon-current liabilities Financial Liabilities (i) Others 13 246 1,281 Provisions 14 22 17

268 1,298 Current liabilities Financial Liabilities (i) Trade payables

(A) Total outstanding dues of small enterprises and micro enterprises 15 - - (B) Total outstanding dues of creditors other than small enterprises and micro enterprises 15 12 65

(ii) Other financial liabilities 13 502 683 Other current liabilities 16 13 5 Current Tax Liabilities(net) 17 3 - Provisions 14 20 18

550 771

Total liabilities 818 2,069 Total equity and liabilities 50,399 46,427

The accompanying notes form an integral part of these financial statements.

As per our report of even date


______________________________ __________________ __________________per Vishal Bansal Biswadip Gupta Purnendu PandeyPartner Director Whole Time DirectorMembership Number: 097546 DIN: 00048258 DIN: 07145733Place of Signature: Mumbai Kolkata Paschim BurdwanDate: May 12, 2020 Date: May 12, 2020 Date: May 12, 2020

__________________ __________________Partha Bose Priyanka ShettyChief Financial Officer Company SecretaryKolkata Mumbai

Date: May 12, 2020 Date: May 12, 2020

For and on behalf of the Board of Directors of JSW Bengal Steel Limited

BISWADIP GUPTA

Digitally signed by BISWADIP GUPTA Date: 2020.05.12 14:18:27 +05'30'

PURNENDU PANDEY

Digitally signed by PURNENDU PANDEY Date: 2020.05.12 15:03:42 +05'30'

PARTHA BOSE

Digitally signed by PARTHA BOSE Date: 2020.05.12 11:58:45 +05'30'

PRIYANKA RAMESH SHETTY

Digitally signed by PRIYANKA RAMESH SHETTY Date: 2020.05.12 13:53:37 +05'30'

VISHAL BANSALDigitally signed by VISHAL BANSAL Date: 2020.05.12 17:03:09 +05'30'

JSW Bengal Steel LimitedStatement of Profit and Loss for the period ended 31st March 2020

(Rupees in lacs)

Particulars Notes Year ended 31st March 2020 Year ended 31st March 2019

Other Income 18 212 135 Total Income (i) 212 135

Expenses

Employee benefits expense 19 128 295 Depreciation and amortization expense 3 and 3.1 776 281 Other expenses 20 344 419

Total expense (ii) 1,248 995

Loss before tax (iii) = (i - ii) (1,036) (860)

Tax expense:Current Tax 44 23 Adjustments of tax relating to earlier periods (3) (81) Total tax expenses (iv) 41 (58)

Loss for the Period ended (v = iii - iv) (1,076) (802)

Other Comprehensive IncomeItems that will not be reclassified to profit or loss in subsequent periods:

(i) Re-measurement gains/(losses) on defined benefit plans(1) (1)

Other comprehensive income for the period ended (net of tax) (vi) (1) (1)

Total comprehensive income for the period ended (v -vi) (1,077) (803)

Earnings per equity share

- Basic (0.23) (0.18) - Diluted (0.23) (0.18)

The accompanying notes form an integral part of these financial statements.As per our report of even date



__________________ __________________Partha Bose Priyanka Shetty

Chief Financial Officer Company SecretaryKolkata MumbaiDate: May 12, 2020 Date: May 12, 2020

( Nominal value of Rs.10/- per share (March 31st 2019 Rs 10 per share)


BISWADIP GUPTA


PURNENDU PANDEY


PARTHA BOSE




VISHAL BANSAL


JSW Bengal Steel LimitedCash Flow Statement for the year ended 31st March, 2020

Year ended 31st March, 2020


Cash flows from operating activitiesLoss before tax (1,036) (860)Adjustments to reconcile Loss before tax to net Cash Flows:

Depreciation and amortization expense 776 281 Interest income earned on Fixed Deposits (41) (2)Loss on disposal of property, plant and equipment - 93 CWIP written off during the year - 38 Interest on income tax refund (1) - Income from Current Investment (16) (9)

Working capital adjustments:(Increase)/Decrease in financial assets and other assets 63 417 Increase/(Decrease) in trade payables (52) (4)Increase/(Decrease) in provisions 6 (77)(Decrease)/increase in financial liabilities and other liabilities (30) 51

Cash flows from operating activities (332) (72)

Income taxes (paid)/ refund received (40) (27)Net cash used in operating activities (372) (98)

Cash flows from Investing activitiesPurchasse of property, plant and equipment - (1)Proceeds/adjustements on disposal of Property, Plant and Equipment and CWIP - 32 Advance given against share application money (4,470) Investments in Subsidiary - (67)Redemption of Fixed Deposits 83 - Redemption of Investments in mutual fund 351 (325)

Net cash generated from /(used in) Investing activities (4,036) (360)

Cash flows from financing activitiesProceeds from issue of share capital/share application money 6,300 429 Loan Received from Parent Company 1,300 Repayment of Loan from Parent Company (1,300)Refund of Advances from Related Party (1,281) -

Net cash generated from financing activities 5,019 429

Net (decrease)/increase in cash and cash equivalents 611 (30)Cash and cash equivalents at the beginning of the year 33 63

Cash and cash equivalents at the end of the year (Refer Note 8) 644 33 Balances with bank - On current accounts 541 32 Cash on hand 2 1

543 33



__________________ __________________Partha Bose Priyanka ShettyChief Financial Officer Company Secretary

Kolkata MumbaiDate: May 12, 2020 Date: May 12, 2020

(Rupees in lacs)Particulars


BISWADIP GUPTA


PURNENDU PANDEY


PARTHA BOSE




VISHAL BANSAL


JSW BENGAL STEEL LIMITED Statement of Changes in Equity for the year ended 31st March, 2020

a. Equity Share Capital (Refer Note 11)Equity shares of INR 10/- each issued, subscribed and fully paid

Particulars Numbers (Rupees in lacs) At 1st April 2018 453,915,000 45,392 Add: Issue of equity shares during the period 4,290,000 429 At 31st March 2019 458,205,000 45,821 Add: Issue of equity shares during the period - - At 31st March 2020 458,205,000 45,821


Share application money pending allotment 6,300 - 6,300 -

b. Other Equity (Refer Note 12)For the period ended 31st March 2020 (Rupees in lacs)

General Reserve Retained earnings

As at 1st April 2019 50 (2,911) 1,398 (1,463)

Loss for the period - (1,076) - (1,076) Other comprehensive Income for the period ended - (1) - (1)

As at 31st March, 2020 50 (3,988) 1,398 (2,540)

For the year ended 31st March,2019

General Reserve Retained earnings

As at 1st April 2018 50 (2,108) 1,398 (660) Loss for the year - (802) - (802) Other comprehensive Income for the year - (1) - (1) As at 31st March 2019 50 (2,911) 1,398 (1,463)

The accompanying notes form an integral part of these financial statements.As per our report of even date




Kolkata MumbaiDate: May 12, 2020 Date: May 12, 2020

(Rupees in lacs)

Share Warrants


TotalParticularsReserves and Surplus

Reserves and SurplusShare Warrants TotalParticulars

The Company has raised additional capital through rights issue of equity shares and the holding company infused share application money of INR 630,000,000 towards subscription of 25,200,000 number of equity shares before the reporting date i.e 31st March 2020. The rights issue was fully subscribed and closed on 30 March 2020. The share application money has been classified as part of ‘Equity pending allotment of shares' on 31st March 2020. The Company has subsequently allotted the aforesaid number of shares on April 28, 2020 against the application money after the reporting date.

BISWADIP GUPTA


PURNENDU PANDEY


PARTHA BOSE




VISHAL BANSAL


JSW Bengal Steel Limited

Notes to the Standalone Financial Statements as at and for the year ended 31st March, 2020

1. Corporate Information

JSW Bengal Steel Limited (“the Company”) is a public limited company incorporated for setting upan Integrated Steel Plant in the State of West Bengal at Salboni, Paschim Medinipur. The registeredoffice of the Company is located at Mumbai, Maharashtra.(Refer 22.10 for the project status and current activities of the Company)

2. Significant Accounting Policies

I. Statement of Compliance

The standalone financial statements comprise financial statements of JSW Bengal Steel Limited (theCompany) as at and for the year ended 31 March 2020. The financial statements have been preparedin accordance with Indian Accounting Standards (Ind AS) as notified under the Companies (IndianAccounting Standards) Rules, 2015 (as amended) read with section 133 of the Companies Act, 2013(the Act) (as amended from time to time).

The accounting policies adopted are consistent with those of the previous financial year except foradoption of Ind AS 116 Leases and other changes to Ind AS (refer note 22.05).

II. Exemption from preparation of Consolidated Financial Statements

Given below is the list of investments in subsidiaries made by the Company. There are no jointventures/ associates of the Company.

Name of the investee Relationship % votinginterestheld

Key business Principal placeof business

JSW Natural ResourcesIndia Limited

Subsidiary 100% Company is in process of settingup coal mines project at Kulti -Sitarampur coal blocks in WestBengal under sole and exclusivecoal raising agreement withWBMDTCL dated 31st March,2010

India

JSW Energy (Bengal)Limited

Subsidiary 100% Company is in process of settingup captive power plant projectfor integrated Steel Plant (ISP) atSalboni, Paschim Medinipur inWest Bengal

India

JSW Natural ResourcesBengal Limited

Step DownSubsidiary -Whollyowned subsidiaryof JSW Energy(Bengal) Limited

100% Company is in process of settingup coal mines project at Icchapurcoal blocks in West Bengalunder coal raising agreementwith WBMDTCL dated 31stMarch, 2010

India

The Company is a wholly owned subsidiary of JSW Steel Limited (‘the Parent Company) which isflagship company of JSW Group and is a leading integrated steel manufacturer in India. The



registered office of the Parent Company is located at Mumbai, Maharashtra. The Parent Companypublishes consolidated financial statements in accordance with Ind AS, which are available for publicuse. When published, the Consolidated Financial Statements of the Parent Company are available onits website, viz., https://www.jsw.in/investors/steel#. The Company has informed its shareholdersregarding its intention of not preparing consolidated financial statements and they have not objectedto the same. Accordingly, the Company has used exemption from consolidation and has preparedthese Standalone Financial Statements which comprise the Balance Sheet as at 31 March, 2020, theStatement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in Equityfor the year ended as on that date, and accounting policies and other explanatory information (togetherhereinafter referred to as 'Standalone Financial Statements' or 'financial statements').

III. Basis of preparation

The Standalone Financial Statements have been prepared on the historical cost basis except for certainfinancial instruments measured at fair values at the end of each reporting year, as explained in theaccounting policies below.

The functional currency of the Company is Indian Rupee (“INR”) which is the currency of theprimary economic environment in which the Company operates. The financial statements arepresented in INR and all values are rounded to the nearest lacs (INR 00,000), except when otherwiseindicated.

These financial statements are approved for issue by the Board of Directors on April 28, 2020.

IV. Summary of significant accounting policies

Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date, regardless of whether that price isdirectly observable or estimated using another valuation technique. In estimating the fair value of anasset or a liability, the Company takes in to account the characteristics of the asset or liability ifmarket participants would take those characteristics into account when pricing the asset or liability atthe measurement date. Fair value for measurement and/or disclosure purposes in these financialstatements is determined on such a basis, except for share-based payment transactions that are withinthe scope of Ind AS 102, and measurements that have some similarities to fair value but are not fairvalue, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2or 3 based on the degree to which the inputs to the fair value measurements are observable and thesignificance of the inputs to the fair value measurements in its entirety, which are described asfollows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities thatthe entity can access at the measurement date;Level 2 inputs are inputs, other than quoted prices included within level 1, that are observable for theasset or liability, either directly or indirectly; andLevel 3 inputs are unobservable inputs for the asset or liability.



Current and non-current classificationThe Company presents assets and liabilities in the balance sheet based on current / non-currentClassification.

An asset is classified as current when it satisfies any of the following criteria:

it is expected to be realised in, or is intended for sale or consumption in, the Company’s normaloperating cycle.

it is held primarily for the purpose of being traded;

it is expected to be realised within 12 months after the reporting date; or

it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liabilityfor at least 12 months after the reporting date.

All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

it is expected to be settled in the Company’s normal operating cycle;

it is held primarily for the purpose of being traded;

it is due to be settled within 12 months after the reporting date; or

the Company does not have an unconditional right to defer settlement of the liability for at least12 months after the reporting date.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current only.

Income recognition

Interest income is accrued on a time proportion basis, by reference to the principal outstanding andat the effective interest rate applicable, which is the rate that exactly discounts estimated future cashreceipts through the expected life of the financial asset to that asset’s net carrying amount on initialrecognition.

Rental income: Rental income from subletting of properties is recognized as per term of the relevantagreements.

Leases



The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if thecontract conveys the right to control the use of an identified asset for a period of time in exchange forconsideration.

Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make leasepayments and right-of-use assets representing the right to use the underlying assets.

(i) Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date theunderlying asset is available for use). Right-of-use assets are measured at cost, less any accumulateddepreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The costof right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred,and lease payments made at or before the commencement date less any lease incentives received.Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and theestimated useful lives of the assets, as follows:

Lease hold land 88 to 92 years

The right-of-use assets are also subject to impairment. Refer to the accounting policy for Impairmentof non-financial assets.

(ii) Lease liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at thepresent value of lease payments to be made over the lease term. The lease payments include fixedpayments (including in-substance fixed payments) less any lease incentives receivable, variable leasepayments that depend on an index or a rate, and amounts expected to be paid under residual valueguarantees.

Variable lease payments that do not depend on an index or a rate are recognised as expenses (unlessthey are incurred to produce inventories) in the period in which the event or condition that triggersthe payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rateat the lease commencement date because the interest rate implicit in the lease is not readilydeterminable.

The Company’s lease liabilities are disclosed separately in the balance sheet.

(iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., thoseleases that have a lease term of 12 months or less from the commencement date and do not contain apurchase option). It also applies the lease of low-value assets recognition exemption to leases of officeequipment that are considered to be low value. Lease payments on short-term leases and leases oflow-value assets are recognised as expense on a straight-line basis over the lease term.



Foreign Currency Transactions

The functional currency of the Company is determined on the basis of the primary economicenvironment in which it operates. The functional currency of the Company is Indian National Rupee(INR).

The transactions in currencies other than the entity’s functional currency (foreign currencies) arerecognised at the rates of exchange prevailing at the dates of the transactions. At the end of eachreporting year, monetary items denominated in foreign currencies are retranslated at the ratesprevailing at that date. Exchange differences arising on settlement or translation of monetary itemsare recognised in profit or loss.

Employee Benefits

The Company makes contributions to both defined benefit and defined contribution schemes.

Provident Fund contributions are in the nature of defined contribution scheme in accordance withStatute. The company recognises contribution payable to such fund as an expense, when an employeerenders the related service.

The cost of providing benefits under the defined benefit gratuity plan is determined using theprojected unit credit method.Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excludingamounts included in net interest on the net defined benefit liability and the return on plan assets(excluding amounts included in net interest on the net defined benefit liability), are recognisedimmediately in the balance sheet with a corresponding debit or credit to retained earnings throughOCI in the period in which they occur. Remeasurements are not reclassified to profit or loss insubsequent periods.

Past service costs are recognised in profit or loss on the earlier of: The date of the plan amendment or curtailment, and

The date that the Group recognises related restructuring costsNet interest is calculated by applying the discount rate to the net defined benefit liability or asset. TheGroup recognises the following changes in the net defined benefit obligation as an expense in theconsolidated statement of profit and loss:

Service costs comprising current service costs, past-service costs, gains and losses on curtailmentsand non-routine settlements; and

Net interest expense or incomeThe cost of providing long-term compensated absences are determined by independent actuary usingthe projected unit credit method. Service costs and net interest expense or income is reflected in thestatement of profit and loss. Gain or Loss on account of re-measurements of other long-term benefitsare recognised in the Statement of Profit and Loss in the period in which they occur.

Employee share based payment

The number of options to be granted to each eligible employee is determined by dividing the AwardValue (amount equivalent to percentage of Annual Fix Pay) by the Fair Value of option provided.



Equity-settled share-based payments to employees and others providing similar services are measuredat the fair value of the equity instruments at the grant date. The fair value determined at the grant dateof the equity-settled share-based payments is expensed on a straight-line basis over the vesting periodas there are no Graded vesting plans. The Fair Value of option on the date of each grant is determinedby using Black Scholes model.

Taxes on Income

Taxes on income comprises of current taxes and deferred taxes.

Current tax is the amount of tax payable based on the taxable profit for the year as determined inaccordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and otherapplicable tax laws in the countries where the Company operates and generates taxable income.

Deferred tax is the tax expected to be payable or recoverable on temporary differences between thecarrying amounts of assets and liabilities in the financial statements and the corresponding tax basesused in the computation of taxable profit, and is accounted for using the balance sheet liabilitymethod. Deferred tax liabilities are generally recognised for all taxable temporary differences. Incontrast, deferred tax assets are only recognised to the extent that is probable that future taxableprofits will be available against which the temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reducedto the extent that is no longer probable that sufficient taxable profits will be available to allow all orpart of the asset to be recovered.

Current and deferred tax are recognised in profit or loss, except when they are related to items thatare recognised in other comprehensive income or directly in equity, in which case, the current anddeferred tax are also recognized in other comprehensive income or directly in equity respectively.

Property, plant and equipment

Property, plant and equipment except freehold land held for use in the production, supply oradministrative purposes are stated at cost of acquisition or construction less accumulated depreciationand impairment, if any.

The cost of property, plant and equipment comprises itsa) purchase price net of any trade discounts and rebates, any import duties and other taxes (other

than those subsequently recoverable from the tax authorities),b) any directly attributable expenditure on making the asset ready for its intended use, including

relevant borrowing costs for qualifying assets andc) any expected costs of decommissioning.

Expenditure incurred after the property, plant and equipment have been put into operation, such asrepairs and maintenance, are charged to the Statement of Profit and Loss in the period in which thecosts are incurred. Major shut-down and overhaul expenditure is capitalized as the activitiesundertaken improves the economic benefits expected to arise from the asset.



An item of property, plant and equipment is derecognized upon disposal or when no future economicbenefits are expected to arise from the continued use of the asset. Any gain or loss arising on thedisposal or retirement of an item of property, plant and equipment is determined as the differencebetween the sales proceeds and the carrying amount of the asset and is recognized in Statement ofProfit and Loss.

Assets in the course of construction are capitalized under the head ‘Capital work-in-progress.’. At thepoint when an asset is operating at management’s intended use, the cost of construction is transferredto the appropriate category of property, plant and equipment and depreciation commences.

For transition to Ind AS, the Company has elected to continue with the carrying value of all itsproperty, plant and equipment recognized as of 1st April, 2015 (transition date) measured as per theprevious GAAP and used that carrying value as its deemed cost as of the transition date.

The Company reviews the residual value, useful lives and depreciation method annually and, ifexpectations differ from previous estimates, the change is accounted for as a change in accountingestimate on a prospective basis.

Depreciation

Depreciation commences when the assets are ready for their intended use. Depreciable amount forassets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.Depreciation is recognized so as to write off the cost of assets (other than freehold land; propertiesunder construction and furniture and fixture of immoveable nature in leased premises) less theirresidual values over their useful lives, using straight-line method. Freehold land is not depreciatedand furniture and fixture of immoveable nature in leased premises are depreciated over the lease term.

Estimated useful lives of the property, plant and equipment are as follows:

Particulars Useful Life(in Years)

Building 30 – 60Plant and Equipment 3-15Furniture and Fixtures 10Vehicle 8Office Equipment 5

The Company, based on technical assessment made by technical expert and management estimate,depreciates certain items of building and plant and equipment over estimated useful lives which aredifferent from the useful life prescribed in Schedule II to the Companies Act, 2013. The managementbelieves that these estimated useful lives are realistic and reflect fair approximation of the period overwhich the assets are likely to be used.

Intangible Assets

Intangible assets with finite useful lives that are acquired separately are carried at cost lessaccumulated Amortization and accumulated impairment losses. Amortization is recognized on astraight-line basis over their estimated useful lives. The estimated useful life and Amortizationmethod are reviewed at the end of each reporting period, with the effect of any changes in estimatebeing accounted for on a prospective basis



Software costs are included as Intangible assets where they are clearly linked to long term economicbenefits for the Company. They are measured initially at purchase costs and then amortised on straightline basis over their estimated useful lives. Software is amortised over the estimated useful life of 3to 5 years.

For transition to Ind AS, the Company has elected to continue with the carrying value of all itsintangible assets recognized as of 1st April, 2015 (transition date) measured as per the previous GAAPand used that carrying value as its deemed cost as of the transition date.

Impairment of Non-financial Assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible andintangible assets to determine whether there is any indication that those assets have suffered animpairment loss. If any such indication exists, the recoverable amount of the asset is estimated inorder to determine the extent of the impairment loss (if any). Where it is not possible to estimate therecoverable amount of an individual asset, the Company estimates the recoverable amount of thecash-generating unit to which the asset belongs.

Impairment loss, if any, is recognised in profit loss. Impairment loss is recognised to the extent thecarrying amount of assets exceed their recoverable amount. Recoverable amount is higher of anasset’s fair value less cost to sell and its value in use. Value in use is the present value of estimatedfuture cash flows expected to arise from the continuing use of an asset and from its disposal at theend of its useful life.

Investments in Subsidiaries

Investment in subsidiaries are carried at cost less impairment, if any. The impairment of investmentin subsidiaries is measured using policy applicable to impairment of non-financial assets.

For transition to Ind AS the Company has elected to continue with the previous GAAP carryingamount as their deemed cost.

Financial instrument

Financial assets and financial liabilities are recognized when the Company becomes a party to thecontractual provisions of the instrument.

Financial assets and liabilities are initially measured at fair value. Transaction costs that are directlyattributable to the acquisition or issue of financial assets and financial liabilities (other than financialassets and financial liabilities at fair value through profit or loss) are added to or deducted from thefair value measured on initial recognition of financial assets or financial liability. The transactioncosts directly attributable to the acquisition of financial assets and financial liabilities at fair valuethrough profit and loss are immediately recognised in the statement of profit and loss.

The Company initially recognises loans and advances, deposits, debt securities issues andsubordinated liabilities on the date on which they originate. All regular way purchases and sales offinancial assets are recognised on the trade date, which is the date on which the Company becomes aparty to the contractual provisions of the instrument.



Effective interest method

The effective interest method is a method of calculating the amortised cost of financial instrumentand of allocating interest income or expense over the relevant period. The effective interest rate is therate that exactly discounts future cash receipts or payments through the expected life of the financialinstrument, or where appropriate, a shorter period.

Financial assets

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held withina business model whose objective is to hold these assets in order to collect contractual cash flows andthe contractual terms of the financial asset give rise on specified dates to cash flows that are solelypayments of principal and interest on the principal amount outstanding.

Financial assets measured at fair value

Financial assets are measured at fair value through other comprehensive income if these financialassets are held within a business model whose objective is to hold these assets in order to collectcontractual cash flows or to sell these financial assets and contractual terms of the financial asset giverise on specified dates to cash flows that are solely payments of principal and interest on the principalamount outstanding.

The Company in respect of equity investments which are not held for trading has made an irrevocableelection to present in other comprehensive income subsequent changes in the fair value of such equityinstruments. Such an election is made by the Company on an instrument by instrument basis at thetime of initial recognition of such equity investments.

Financial asset not measured at amortised cost or at fair value through other comprehensive incomeis carried at fair value through profit or loss. Financial assets at FVTPL are measured at fair value atthe end of each reporting period, with any gains and losses arising on remeasurement recognized inthe statement of profit or loss.

Impairment of financial assets

Loss allowance for expected credit losses is recognised for financial assets (debt instruments)measured at amortised cost and fair value through other comprehensive income.

For financial assets whose credit risk has not significantly increased since initial recognition, lossallowance equal to twelve months expected credit losses is recognised. Loss allowance equal to thelifetime expected credit losses is recognised if the credit risk on the financial instruments hassignificantly increased since initial recognition.

De-recognition of financial assets

The Company derecognises a financial asset only when the contractual rights to the cash flows fromthe asset expire, or it transfers the financial asset and substantially all risks and rewards of ownershipof the asset to another entity.



If the Company neither transfers nor retains substantially all the risks and rewards of ownership andcontinues to control the transferred asset, the Company recognizes its retained interest in the assetsand an associated liability for amounts it may have to pay.

Income/ dividend recognition on financial assets

Interest income from financial assets is recognised in profit or loss using effective interest ratemethod, where applicable.

Dividend income from investments is recognized when the shareholder’s right to receive paymenthas been established (provided that it is probable that the economic benefits will flow to the Companyand the amount of income can be measured reliably).

Financial liabilities and equity instruments

Classification as debt or equity

Financial liabilities and equity instruments issued by the Company are classified according to thesubstance of the contractual arrangements entered into and the definitions of a financial liability andan equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Companyafter deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net ofdirect issue costs.

Financial liabilities

Trade and other payables are initially measured at fair value, net of transaction costs, and aresubsequently measured at amortised cost, using the effective interest rate method where the timevalue of money is significant.

De-recognition of financial liabilities

The Company derecognizes financial liabilities when, and only when, the Company’s obligations aredischarge, cancelled or they expire.

Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet wherethere is a legally enforceable right to offset the recognised amounts and there is an intention to settleon a net basis or realise the asset and settle the liability simultaneously.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as aresult of a past event, it is probable that the Company will be required to settle the obligation, and areliable estimate can be made of the amount of the obligation.



The amount recognised as a provision is the best estimate of the consideration required to settle thepresent obligation at the end of the reporting period, taking in to account the risks and uncertaintiessurrounding the obligation. If the effect of the time value of money is material, provisions arediscounted using a current pre-tax rate that reflects, when appropriate, the risks specific to theliability. When discounting is used, the increase in the provision due to the passage of time isrecognised as a finance cost.

A disclosure for a contingent liability is made when there is a possible obligation or a presentobligation that may, but probably will not require an outflow of resources embodying economicbenefits or the amount of such obligation cannot be measured reliably. When there is a possibleobligation or a present obligation in respect of which likelihood of outflow of resources embodyingeconomic benefits is remote, no provision or disclosure is made.

Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-termdeposits with an original maturity of three months or less, which are subject to an insignificant riskof changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consistof cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they areconsidered an integral part of the Company’s cash management.

Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss attributable to equity holderof parent company (after deducting preference dividends and attributable taxes) by the weightedaverage number of equity shares outstanding during the period. For the purpose of calculating dilutedearnings per share, the net profit or loss for the period attributable to equity shareholders of the parentcompany and the weighted average number of shares outstanding during the period are adjusted forthe effects of all dilutive potential equity shares.

V. Changes in accounting policies and disclosures

The Company applied Ind AS 116 Leases for the first time. The nature and effect of the changesas a result of adoption of this new accounting standard is described below.Several other amendments and interpretations apply for the first time in year ended 31 March2020, but do not have an impact on the financial statements. The Company has not early adoptedany standard amendment that has been issued but are not yet effective.

Other changes to Ind AS

In addition to Ind AS 116, the following changes of Ind AS have also become applicable fromfinancial year beginning 1 April 2019. However, the adoption of these changes does not haveany impact on the financial statements as there are no transactions covered under theseamendments:• Appendix C to Ind AS 12 Uncertainty over Income Tax Treatment• Amendments to Ind AS 109: Prepayment Features with Negative Compensation• Amendments to Ind AS 19: Plan Amendment, Curtailment or Settlement• Amendments to Ind AS 28: Long-term interests in associates and joint ventures



• Annual improvement to Ind AS (2018) – These improvements include:• Amendments to Ind AS 103: Party to a Joint Arrangements obtains control of a businessthat is a Joint Operation• Amendments to Ind AS 111: Joint Arrangements• Amendments to Ind AS 12: Income Taxes• Amendments to Ind AS 23: Borrowing Costs

VI. Use of Estimates and Judgements

In the course of applying the policies outlined in all notes, as disclosed above, the Company makesjudgements, estimates and assumptions about the carrying amount of assets and liabilities that arenot readily apparent from other sources. The estimates and the associated assumptions are based onhistorical experience and other factors that are considered to be relevant. Actual results may differfrom these estimates.

The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions toaccounting estimates are recognised in the period in which the estimate is revised and future periodsaffected.

Uncertainty over availability of key raw materialsConsequent to deallocation of coal blocks and non-availability of long term iron ore supplyarrangement, there are uncertainties in the implementation of the project. The Management hasevaluated the going concern assumptions in preparing the financial statements after considering theGovt. Policy of allocation of coal blocks; establishing the long-term coal supply linkages with thehelp of WBMDTC; support provided by Holding Company and alternate usage of the various assetswhich are fully described in Note 22.10.

Useful lives of property, plant and equipmentManagement reviews the useful lives of property, plant and equipment at least once a year. Such livesare dependent upon an assessment of both the technical lives of the assets and also their likelyeconomic lives based on various internal and external factors including relative efficiency andoperating costs. Accordingly, depreciable lives are reviewed annually using the best informationavailable to the Management.

Fair value measurement of Financial InstrumentsWhen the fair values of financials assets and financial liabilities recorded in the financial statementscannot be measured based on quoted prices in active markets, their fair value is measured usingvaluation techniques which involve various judgements and assumptions.

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JSW BENGAL STEEL LIMITED Notes to the financial statements as at and for the year ended 31st March 2020

Number of shares (Rupees in lacs) Number of shares (Rupees in lacs)

Investments in unquoted Equity Instruments of Subsidiaries ( At cost unless stated otherwise)Equity shares of Rs. 10 each fully paid in JSW Natural Resources India Limited 107,330,000 10,733 107,330,000 10,733

Equity shares of Rs. 10 each fuly paid in JSW Energy (Bengal) Limited 29,860,000 2,986 29,860,000 2,986

Total 13,719 13,719 Aggregate amount of unquoted investments, carried at cost 13,719 13,719

Note 5: Other financial assets (Rupees in lacs)

Particulars Current Non-Current Current Non-Current

Unsecured considered good,unless otherwise statedFinancial assets at amortised cost

Security deposits - 66 - 84 Recoverable from related parties (Refer Note 22.04) 90 - 65 - Interest accrued on bank deposits - - 3 -

Total 90 66 68 84

Note 6: Other assets (Rupees in lacs)

Current Non-Current Current Non-Current Unsecured considered good,unless otherwise statedCapital advances [Refer Note below] - 1,123 - 1,123 Prepaid expenses - Lease rental* - - 100 7,375 - Share warrants (Refer Note 12 c) 1,398 - 1,398 - Others 12 - 6 - Balance with government authorities - 167 - 145 Other advances (includes suppliers etc.) 4 - 1 - Share Application Money Paid against investment in equity - JSWEBL (Subsidiary) 4,470 - -

Total 16 7,158 107 10,041

Note Includes Rs.699 lacs (March 31,2019 - Rs.699 lacs paid in earlier year to West Bengal Industrial Development Corporation Limited, the acquiring body, towards acquisition of Patta and Private land aggregating 189.6274 acres under Land Acquisition Act, 1894. Although the above mentioned area of land has been handed over to the company, the lease deed for the same is yet to be executed in favour of the Company.

Further an advance of Rs 369 lacs(March 31,2019 - Rs 369 lacs) paid to Mukherjee Farms Private Limited in respect of Mining Land situated at Gangotia, District.- Burdawan. The said advance was given to Mukherjee Farms Private Limited on behalf of JSW Natural Resource India Limited (NRIL). As informed by the Company a capital commitment of Rs 2,070 lacs (net of advance Rs 88 lacs) is appearing in the Books of NRIL pertaining to such land. The management believes that the advance is fully recoverable or adjustable. Hence, no impairment of the same is required.

Note 4: Non-current Investments

Particulars As at 31st March 2020 As at 31st March 2019

As at 31st March 2019

*Lease Rental - During the current year, the Company has applied Ind AS 116 w.e.f. 1 April 2019 using the modified retrospective approach, (Refer note -3.1)



As at 31st March 2019 Particulars


- Note 7: Current Investments (Rupees in lacs)



Investment in Mutual Fund - (at fair value through Profit and Loss Account) - 334

Quoted - HDFC Liquid Fund Regular Plan Growth Total - 334

Note 8: Cash and cash equivalents (Rupees in lacs)

- On current accounts 541 32 Cash on hand 2 1

Total 543 33

Note 9: Other Bank Balances (Rupees in lacs) As at 31st March

2020 As at 31st March

2019

in deposit account - 39 Total - 39

Note 10: Curent tax assets (net) (Rupees in lacs) As at 31st March

2020 As at 31st March

2019

Advance tax 6 3 Total 6 3

Particulars

Balances with bank

Particulars

Balances with bank

During the year, the Company has sold off all the units of Mutual Fund.

Particulars

As at 31st March 2020 Particulars As at 31st March

2019


Note 11 - Equity Share capital

No. of Shares (Rupees in lacs) No. of Shares (Rupees in lacs)Authorised Share CapitalEquity Shares of Rs. 10 each 1,000,000,000 100,000 1,000,000,000 100,000 Issued, Subscribed and Fully Paid upEquity Shares of Rs. 10 each 458,205,000 45,821 458,205,000 45,821


Share application money pending allotment 6,300 - 6,300 -

Notes:-I. Reconciliation of equity shares at the beginning and period ended :

Particulars No. of Shares Equity share capital(No.) (Rupees in lacs)

Balance as at 1st April, 2018 453,915,000 45,392 Add: Issue of shares during the year 4,290,000 429 Balance as at 31st March, 2019 458,205,000 45,821 Add: Issue of shares during the period - - At 31st March 2020 458,205,000 45,821 II. Terms/Rights attached to equity shares

III. Details of shares held by the holding company:

As at 31st March 2019JSW Steel Limited 452,205,000 45,221 As at 31st March 2020

JSW Steel Limited 452,205,000 45,221

IV. Details of shares held by each shareholder holding more than 5% shares :

Number of shares held % holding Number of shares held % holding

JSW Steel Limited, the holding company 452,205,000 98.69 452,205,000 98.69

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive residual assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by each shareholder.

(Rupees in lacs)

The Company will raise additional capital through rights issue of equity shares and the holding company provided share application money towards subscription of 25,200,000 number of equity shares before the reporting date. Per agreement with the holding Company, the Holding Company does not have any right to require refund of application money. The share application money has been classified as part of ‘Equity pending allotment of shares.’ Subsequent to the reporting date, i.e., on April 28, 2020, the Company has allotted aforesaid number of shares against the application money.

Class of shares / Name of shareholder As at 31st March 2020 As at 31st March 2019


Particulars Number of shares

The Company has one class of equity shares having a par value of Rs. 10 per share. Each Shareholder is eligible for one vote per share held. In the event of liquidation,

the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.The

dividend if proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.


Note 12 Other Equity (Rupees in lacs) As at As at

31st March 2020 31st March,2019 General Reserve (Refer Note a) 50 50 Retained Earnings (Refer Note b) (3,988) (2,911) Share Warrants (Refer Note c) 1,398 1,398

(2,540) (1,463)

a) General Reserve (Rupees in lacs) Year ended Year ended

31st March 2020 31st March,2019 Balance at the beginning of the year 50 50 Balance at the year ended 50 50

b) Retained Earnings (Rupees in lacs) Year ended Year ended

31st March 2020 31st March,2019 Balance at the beginning of the period (2,911) (2,108) Total comprehensive Income for the period ended (1,077) (803)

(3,988) (2,911)

c) Share Warrants (Rupees in lacs) Year ended Year ended

31st March 2020 31st March,2019 Balance at the beginning of the year 1,398 1,398

1,398 1,398

Retained earnings represent the cumulative profit / (loss) of the Company and effects of re-measurement of defined benefit obligations and can be utilised in accordance with the provisions of the Companies Act, 2013)

Share warrants represent the Company's agreement to give free Equity shares with voting and dividend rights of the Company, equivalent to the amount of cash compensation paid for acquisition of private (Rayati) Land and Patta Land by way of a goodwill gesture so as to compensate the land losers for their loss of livelihood and ensuring their co-operation to the successful implementation of the proposed steel plant of the Company. Accordingly, 13,981,008 warrants (convertible into equity shares with voting rights on the date of achieving the commercial operation by JSW Bengal Steel Limited in the 1st phase or the date of IPO, whichever is earlier) of Rs.10 each aggregating Rs.1,398 lacs has been allotted on preferential basis to JSW Bengal Steel Trust. The warrants holder will not be entitled for any dividend / voting rights in the Company untill issue of shares in lieu of warrants.Pending the issue of shares to land losers, the corresponding amount has been treated as prepayment.

Total

Particulars

(General reserve mainly represents appropriation from the statement of profit and loss and can be utilised in accordance with the provisions of the Companies Act, 2013)

Balance at the year ended

Balance at the period ended


Note 13 Financial Liabilities (Rupees in lacs)

Current Non-Current Current Non-Current Advance received from related party* ( Refer Note 22.04) - - - 1,281 Retention Money for Capital Project 12 95 Payable for Capital Projects 27 105 Payable to related party ( Refer Note 22.04) 180 192 Payable to Employees 30 40

Security Deposit from related party( Refer Note 22.04) 250 250

Liability towards ROU assets 3 246 - - Total 502 246 683 1,281

Change in Liabilities arising from Financial activities (Rupees in lacs)Particulars April 01,2019 Cash Flow Others* March 31,2020Advance received from related party* ( Refer Note 22.04) 1,281 (1,281) - Retention Money for Capital Project 95 (83) 12 Payable for Capital Projects 105 (79) 27 Payable to related party ( Refer Note 22.04) 192 (12) 180 Payable to Employees 40 (10) 30

Security Deposit from related party( Refer Note 22.04) 250 - 250 Liability towards ROU assets - 249 249

Total 1,964 (1,303) 88 749 *includes liability written back and ROU liability created as per requirement of IND AS 116 (refer note 22.05) respectively

(Rupees in lacs)Particulars April 01,2018 Cash Flow Others March 31,2019Advance received from related party 1,281 - - 1,281 Retention Money for Capital Project 101 (6) - 95 Payable for Capital Projects 211 (51) (55) 105 Payable to related party ( Refer Note 22.04) 57 135 - 192 Payable to Employees 3 - 37 40

Security Deposit from related party( Refer Note 22.04) 250 - - 250 Total 1,903 78 (18) 1,964

Note 14 Provisions (Rupees in lacs)

Current Non-Current Current Non-Current Provision for employee benefits: Provision for compensated absences 19 - 17 - Provision for gratuity 1 22 * 17

Total 20 22 18 17

* Amount is below the rounding off norm adopted by the Company.

Note 15 Trade payables (Rupees in lacs)

Trade Payables (A) Total outstanding dues of small enterprises and micro enterprises - - (B) Total outstanding dues of creditors other than small enterprises and micro enterprises

12 65

Total 12 65

Note 16 Other Current Liabilities (Rupees in lacs)

Statutory Liabilities 13 5 Total 13 5

Note 17 Curent tax Liabilities (net) (Rupees in lacs)


Provision for tax 3 - Total 3 -

As at 31st March 2019 Particulars As at 31st March 2020

Particulars

* During the year the Company had repaid advance from JSW Energy Bengal Limited taken in earlier year towards development of common facilities.

Particulars As at 31st March 2019

As at 31st March 2020 As at 31st March 2019



As at 31st March 2019 Particulars


Note 18 Other income (Rupees in lacs)

153 124 41 2

Gain on disposal/ Fair Valuation of Mutual Funds 16 9 1 -

Interest on Income tax refund 1 - 212 135

**includes net interest income of Rs.41 lacs of against margin money

Note 19 Employee benefits expense (Rupees in lacs) Year ended 31st March

2020 Year ended 31st March 2019

Salaries,wages and bonus 116 164 6 8

Gratuity expenses 3 7 Share based payments to employees* - 108

3 8 128 295

*During the previous year ESOP Scheme -2016 has been completed and lapsed for old employee. Hence no ESOP expenses for the current year

Note 20 Other expenses (Rupees in lacs) Year ended 31st March

2020 Year ended 31st March 2019

28 174 - 93 14 12 3 5

CWIP Written off - 38 3 3

10 14 6 17 9 10

27 36 12 6 6 6 5 5

25 - Bank Guarantee commission charges 191 - Tender fees 5 -

344 419

Note:- (Rupees in lacs)

12 12 2 *

14 12


Contribution to provident fund

Total

Year ended 31st March 2019 Year ended 31st March 2020

Scrap sale

Particulars

Office expenses

Rental income

Total

Rent

Particulars

Interest Income on fixed deposits**

Travelling and conveyance

Security charges

Staff welfare expenses

Total

Loss on disposal of property,plant and equipment (net)

Guest house expenses

Legal and professional expenses

Auditors remuneration comprises

Interest on Lease liability

Auditors Remuneration (Refer Note Below)Communication

Reimbursement of expenses

Directors sitting fees

Other Miscellaneous Expenses

As Auditors

Insurance premium


Note 21

For the year For the yearended 31st March ended 31st March

2020 2019Profit /(Loss) before tax (1,036) (860) Corporate Tax rates in India 25.2% 26.00%

Income Tax charges based on above Tax Rates (261) (223) Less: Actual Tax Paid by the Company 44 23

(A) (305) (247)

261 223Add:- Tax payable on

44 23

305 247

Net Difference (A- B) 0 0

Note:

The tax rate used for the year 2019-20 is the corporate tax rate of 25.17% (22% + surcharge @10% and education cess @ 4%) payable on taxable profits under the Income Tax Act, 1961. [26.00% (25% + surcharge @ 0% and education cess @ 4%)]

As the Company has not yet commenced operation, there were no unused tax losses and further, on a prudent basis, no deferred tax asset on other temporary differences has been recognised by the Company.

A reconciliation of the income tax provision to the amount computed by applying the statutory income tax rate to the income before income taxes is summarized below:

Particulars

Income from House property and Income from other sources which are separately taxable as per Income Tax Act

(B)

DTA on losses and unabsorbed depreciation not recognised by the Company

Notes to the financial statements as at and for the year ended 31st March 2020

Note 22.01 (iii)Category of Financial Instruments

The carrying value and fair value of financial instruments by categories are as follows:-(Rupees in lacs)

Carrying value Fair value Carrying value Fair value Financial assets, measured at amortised cost *Non current Assets Other financial assets 66 66 84 84

Current AssetsCash and cash equivalents 543 543 33 33 Other bank balances - - 39 39 Other financial assets 90 90 68 68

Total financial assets measured at amortised cost

699 699 223 223

Financial assets, measured at Fair Value through Profit and LossInvestment in Mutual Fund - - 334 334

Total financial assets 699 699 558 558 Financial liabilities, measured at amortised cost

Non current financial liability 246 246 1,281 1,281 Trade payables 12 12 65 65 Other financial liabilities 502 502 683 683

Total financial liabilities, measured at amortised cost

760 760 2,029 2,029

Fair Value Hierarchy(Rupees in lacs)

Level 1 Level 2 Level 3 Level 1 Level 2 Level 3

Financial assets, measured at amortised cost

Non current Assets (i) Other financial assets - 66 - - 84 -

Current AssetsInvestments, carried at Fair Value through Profit and Loss

- - - 334 -

Total - 66 - 334 84 -

The Carrying amounts of Trade receivables, Trade payables, Cash and Cash Equivalents, other bank balances, other current financial assets and liabilities are considered as the same as their fair values, due to their short term nature.

*Does not include investments in subsidiaries of INR 13,719 lacs(Mar 31, 2019: INR 13,719 lacs) which is being carried at cost.

31st March, 201931st March, 2020

Notes : The Company uses the following hierarchy for determining and /or disclosing the fair value of financial instruments by valuation techniques :Level 1 hierarchy includes financial instruments measured using quoted prices in active markets for identical assets or liabilities. Level 2 hierarchy includes the fair value of financial instruments that are not traded in an active market (for example, over-the counter derivatives) and the fair value is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

If one or more of the significant inputs is not based on observable market data, the instrument is included in level 2.

Fair value of the financial assets is measured using discounted cash flow method. Under the method, observable future cash flows based on terms are discounted at a rate that reflects market risks.

There are no transfers between level 1 and 2 during the year. The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

JSW BENGAL STEEL LIMITED

Note 22: Other Notes

22.01.(i)Capital Risk Management

22.01(ii) Credit risk management

31st March, 2020Particulars 31st March, 2019

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the company. Credit risk encompasses of both,the direct risk of default and the risk of deterioration of credit worthiness as well as concentration risks .The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral,where appropritate, as a means of mitigating the risk of financial loss from defaults. Presently, the Company's operation does not subject to any credit risk.

The company is managing its capital requirement primarily through investment by Holding company. The capital structure of the company consists of Equity Share Capital of and Other Equity (i.e. General Reserve, Retained Earnings etc.) of the company.The company is not subject to any externally imposed capital requirements.

Particulars

22.02 Liquidity risk

(Rupees in lacs)Particulars 31st March, 2020 31st March, 2019

Trade payables 12 65Other financial liabilities 502 683

513 748

22.03 - Contingent liabilities and commitments (to the extent not provided for)

(Rupees in lacs) As at As at

31st March, 2020 31st March, 2019

Commitments Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)

111 509

Note 22.04 Related Party Disclosures(a) List of Related Parties:

1. Holding Company:JSW Steel Limited

2. Subsidiaries:JSW Natural Resources India LimitedJSW Energy (Bengal) LimitedJSW Natural Resources Bengal Limited [Wholly owned subsidiary of JSW Energy (Bengal) Limited]

JSW Cement Ltd.

Mr. Biswadip Gupta Director Mr. Alok Mehrotra Director Mr. Purnendu Pandey Whole Time Director Ms. Nayantara Palchoudari Director Ms.Aditi Jhunjhunwala Director appointed w.e.f June 17, 2019 Mr. Partha Bose CFO Ms. Priyanka Ramesh Shetty Company Secretary Mr Sundereshan Radhakrishnan Director resigned w.e.f April 1, 2019 Mr. Jugal Kishor Tandon Director resigned w.e.f. April 27, 2019 Mr. Romit Mutsuddi Director resigned w.e.f. June 17, 2019 Mr. Ashok Kumar Basu Director resigned w.e.f. October 16, 2019

(Rupees in lacs)

Holding Company

JSW Steel Limited JSW Energy (Bengal) Limited

JSW Natural Resources India

Limited

JSW Natural Resources Bengal

Limited

JSW Cement Ltd.

JSW Utkal Steel ltd.

Amba River Coke Ltd.

(b) Transactions with Related Parties

(i) Share Application Money / Equity contribution to the Company 6,300 - - - - - - -

(429) (-) (-) (-) (-) (-) (-) (-)

(ii) Investments made - - - - - - - - (-) (40) (27) (-) (-) (-) (-) (-)

(iii) Advances Given for Share Application Money Pending Allotment - 4,470 - - - - -

(-) (-) (-) (-) (-) (-) (-) (-)

Particulars

The contractual maturities of financial liabilities are of less than 1 year and the same are mentioned in the table below:-

Key management

personnel

The company's principal sources of liquidity are cash and cash equivalents which are primarily in the form of Equity Contribution from the Holding Company. The Company has no outstanding bank borrowings. The company believes that the funding by Holding Company is sufficient to meet its current requirements and in case of any requirement, the same will be supported in the form of capital infusion by the Holding Company. Accordingly, no liquidity risk is perceived.

3. Enterprise under common control:

Subsidiaries

Parties with whom the Company has entered into transactions during the year:

4. Key Management Personnel:

Enterprise under common control

Particulars

(iv) Recovery of Expenses incurred by the Company on their behalf 14 21 46 - - 5 -

(15) (6) (39) (50) (27) (-) (-) (-)

(v) Loan / Advances received 1,300 - - - - - 20,160 - (-) (-) (-) (-) (-) (-) (-) (-)

(vi) Reimbursement of Expenses incurred on Company's behalf - - - - 61 - - -

(127) (-) (-) (-) (35) (-) (-) (-)

(vii) Employee Stock Option given - - - - - - - - (-) (-) (-) (-) (-) (-) (-) (119)

(viii) Rent income - - - - 153 - - - (-) (-) (-) (-) (124) (-) (-) (-)

(ix) Repayment of advances - 1,281 - - - 5 20,160 (-) (-) (-) (-) (163) (-) (-) (-)

(x) Repayment of Loan 1,300 - - - - - - -(-) (-) (-) (-) (-) (-) (-) (-)

(xi) Remuneration of Key Management Personnel[Refer Note below] Mr. Purnendu Pandey - - - - - - - 48

(-) (-) (-) (-) (-) (-) (-) (8) Mr.Alok Mehrotra - - - - - - - -

(-) (-) (-) (-) (-) (-) (-) (156) Mr.Partha Bose - - - - - - - 23

(-) (-) (-) (-) (-) (-) (-) (20) Ms Priyanka Ramesh Shetty - - - - - - - 18

(-) (-) (-) (-) (-) (-) (-) (13)

(xii) Sitting Fees of Key Management Personnel[Refer Note below]

Mr.Alok Mehrotra - - - - - - - *(-) (-) (-) (-) (-) (-) (-) (-)

Mr. Jugal Kishore Tandon - - - - - - - *(-) (-) (-) (-) (-) (-) (-) -

Ms. Nayantara Palchoudari - - - - - - - 1(-) (-) (-) (-) (-) (-) (-) (*)

Mr. Ashok Kumar Basu - - - - - - - *(-) (-) (-) (-) (-) (-) (-) -

Mr. Romit Mutsuddi - - - - - - - *(-) (-) (-) (-) (-) (-) (-) -

Mr. S. Radhakrishnan - - - - - - - - (-) (-) (-) (-) (-) (-) (-) (*)

Ms.Aditi Jhunjhunwala - - - - - - - 1 (-) (-) (-) (-) (-) (-) (-) -

(c ) Nature of balances with related parties and closing balances as at year ended(i) Recoverable At 31st March, 2020 * * * * 90 - - -

As at 31st March, 2019 (43) (-) (-) (-) (21) (-) (-) (-)

(ii) Payable At 31st March, 2020 103 - - - 327 - - - As at 31st March, 2019 (176) (1,281) (-) (-) (266) (-) (-) (-)

(iii) Investment in Equity Shares At 31st March, 2020 - 2,986 10,733 - - - - - As at 31st March, 2019 (-) (2,986) (10,733) (-) (-) (-) (-) (-)

Figures in bracket relate to previous year

Note:

(Rupees in lacs)Year ended 31st

March, 2020Year ended 31st

March, 2019

Short-term employee benefits 89 197 Sitting Fees 3 2

92 199

The remuneration of Key Management Personnel during the year was as follows:-

As the future liability for gratuity and leave is provided on an actuarial basis for the Company as a whole, the amount pertaining to key management personnel is not ascertainable and therefore not included above.


Note 22.05Changes in accounting policies and disclosures

Ind AS 116 Leases

a) Applied a single discount rate to a portfolio of leases with similar characteristics.b) Relied on its assessment of whether leases are onerous immediately before the date of initialapplication

d) Excluded initial direct costs from measuring the right-of-use asset at the date of application

(Rupees in lacs)Particulars AmountOperating lease commitments as at March 31, 2019 as disclosed in the Ind AS financial statements 2,207

Less: Commitments relating to short-term leases (-)Less: Commitments relating to leases of low value assets (-)Net operating lease commitments 2,207 Weighted average incremental borrowing rate as at April 1, 2019 10%Discounted operating lease commitments as at April 1, 2019 249 Add: Lease payments relating to renewal periods not included in operating lease -Add/Less: Any other Items for reconciliation -Lease liabilities as at April 1, 2019 249

e) Used hindsight when determining the lease term if the contract contains options to extend or terminate the lease.

Lessor accounting under Ind AS 116 is substantially unchanged from Ind AS 17. As a lessee, the Company previously classified leases as an operating or a finance lease based on its assessment of whether the lease transferred significantly all of the risk and rewards incidental to the ownership of the underlying asset of the Company. Under Ind AS 116, the Company recognizes the right-of-use assets and lease liabilities as stated in the Note 3.1 and Note 13 respectively

2019. There is no impact on retained earnings as at April 1, 2019.

The Company has applied Ind AS 116 only to the contracts that were previously identified as leases. As a practical expedient, contracts previously identified as lease under Ind AS 17 has not reassessed as to whether a contract is, or contains, a lease under Ind AS 116.

Other changes to Ind AS

In addition to Ind AS 116, the following changes of Ind AS have also become applicable from financial year beginning 1 April 2019. However, the adoption of these changes does not have any impact on the financial statements as there are no transactions covered under these amendments:��

The Company applied Ind AS 116 Leases for the first time. The nature and effect of the changes as a result of adoption of this new accounting standard is described below.

Several other amendments and interpretations apply for the first time in year ended 31 March 2020, but do not have an impact on the financial statements. The Company has not early adopted any standard amendment that has been issued but are not yet effective.

Ind AS 116 was notified in March 2019 and it replaces Ind AS 17 Leases. Ind AS 116 is effective for annual periods beginning on or after April 1, 2019.The Company has applied Ind AS 116 with a date of initial application of April 1, 2019 using modified retrospective approach, under which the cumulative effect of initial application is recognized as at April 1, 2019.

The lease liabilities as at March 31, 2019 can be reconciled to the operating lease commitments as of April 1, 2019, as follows:

The Company has used the following practical expedients when applying Ind AS 116 to leases previously classified as operating leases under Ind AS 17:

c) Applied the exemption not to recognize right-of-use asset and liabilities for leases with remaining lease term of 12 months or less.

Note 22.06MSME Outstanding

Note 22.07Segment Reporting

(Rupees in lacs)Year ended 31st March, 2020

Year ended March 31, 2019

28,802 21,998

(Rupees in lacs)


For year ended 31st March 2019

(1,076) (802)

4,582 4,570

140 140 Add:- Share Application Money - -

4,722 4,710 10 10

(0.23) (0.18) (0.23) (0.18)

Employee Benefit Plans

Defined Contribution Plans

(Rupees in lacs)

Contribution to Provident Fund 6 8(recognised under "Contribution to Provident Fund." in Note 19)

6 8

Defined Benefit Plans

RiskLongevity Risk

Salary Risk

b) The principal assumptions used for the purpose of the actuarial valuations were as follows:

Particulars 31st March , 2020 31st March, 2019

Discount Rate 6.83% 7.76%Expected Rate of salry increase 6.00% 6.00%Expected Rate of employee turnover 2.00% 2.00%Mortality rate during the Employeement Indian assured Lives

Mortality (2006-08)Indian assured Lives Mortality (2006-08)

Mortality rate after Employment N.A N.A

Particulars

India

Particulars

a) Since the Gratuity scheme is unfunded, the Company is not contributing to any fund and therefore there is no exposure to Investment Risk and Interest rate risk.

Employee Benefit Related Disclosure

For the year ended 31st March 2019

Profit/(Loss) attributable to Equity shareholders and (A)

The Company’s activities during the year revolved around setting up of the Project . Considering the nature of Company’s business and operations, there are no separate reportable segments in accordance with the requirements of Ind AS 108.

Earnings per share of Rs. 10 each

Reconciliation between weighted average number of shares used for Diluted earnings per

Based on and to the extent of information obtained from suppliers regarding their status as Micro,Small or Medium Enterprises under Micro,Small and Medium Enterprises Development Act,2006, there are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days during the year.

Diluted (A/C) [In Rupees] *

Note 22.08Earnings Per Share

Details of non-current assets (property, plant and equipment, capital work-in-progress and other intangible assets) based on geographical area are as below:

The present value of defined benefit liability is calculated by reference to the future salary of plan participants. Salary escalation and attrition rate are considered as projected by the company in line with industry practice considering promotion and demand & supply of the employees. As such, an increase in the salary of the plan participants will increase the plan's liability.

Particulars

Basic (A/B) [In Rupees]

The Company contributes to Provident Fund which is a defined contribution plan. Under the Scheme, the Company is required to a specified percentage of payroll costs to fund the benefits. The contributions payable to the plan by the Company are at the rate specifed in the rules of the Scheme. The particular of such contributions are stated as below:-

The present value of scheme liability is calculated by reference to the best estimate of the mortality plan participants both during and after their employment. An increase in life expectancy of the scheme participants will increase the scheme's liability.

Note 22.09

Weighted average number of equity shares for Basic Earnings per share (B)Effect of dilution: Add:- Share Warrants


Par value per share (Rupees)

* Since the company has incurred losses in the current year and previous year, share warrants and share application money are anti-dilutive. Hence, the diluted EPS has been kept the same as Basic EPS.

Weighted average number of equity shares adjusted for the effect of dilution for calculation of diluted earnings per share (C )

The Company offers Gratuity as the employee benefit scheme to its employee and the Gratuity is payable as per under Gratuity Act 1972. The Gratuity scheme of the Company is unfunded.

c) Expenses recognised in the statement of Profit and loss (Rupees in lacs)

Particulars Year ended 31st March, 2020

Year ended 31st March 2019

Current service cost 2 1Past service cost - - Net interest cost 1 5Gain/(Losses) on curtailment and settlements - - Total Grautuity Expense 3 7

d) Expenses recognised in Other Comprehensive Income (OCI) (Rupees in lacs)

Particulars Year ended 31st March, 2020

Year ended 31st March 2019

Remeasurements of the net defined benefit liabilityActuarial Losses on Obligations - due to change in Financial Assumptions 1 0

Actuarial Losses on Obligations - due to Experience Adjustments (0) 1

Actuarial Losses on Obligations - due to Demographic Adjustments - -

Net Expense for the year recognised in OCI 1 1

e) Amount recognised in the Balance Sheet (Rupees in lacs)

As at 31st March, 2020

As at March 31, 2019

Present value of Defined Benefit Obligation at the end of the year

22 17

Fair value of plan assets at the end of the year - -

Net Liability Recognised in the balance sheet 22 17

f) Change in Defined Benefit Obligations during the year (Rupees in lacs)

As at 31st March, 2020

As at March 31, 2019

Present value of obligation at the beginning of the year 17 69

Current service cost 2 1 Interest cost 1 5 Remeasurements - Actuarial losses 1 1 Benefit Paid Directly by the Employer - (59) Present value of obligation at the end of the year 22 17

g) Sensitivity Analysis

(Rupees in lacs )As at 31st March,

2020As at March 31,

2019Projected benefit Obligation on Current Assumptions 22 17

Effect of +1% change in Rate of Discounting on Present Value of obligation

(1) (1)

Effect of -1% change in Rate of Discounting on Present Value of obligation

1 1

Effect of +1% change in Salary increase 1 1 Effect of -1% change in Salary increase (1) (1) Effect of +1% change in Employee turnover 0 0 Effect of -1% change in Employee turnover (0) (0)

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality.The sensitivity analysis below has been determined based on reasonably possible changes of the respective assumptions occuring at the end of reporting period,while holding all other assumptins constant.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet. There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

h) Maturity profile of defined benefit obligations:-

Projetced benefits payable in future years from the date of reporting:-(Rupees in lacs)

1st following year 1 Subsequent 2 - 5 years 12 Subsequent 6 - 10 years 8 Subsequent 11 years and above 14

Note 22.10 Status of the Project

Note 22.11

Note 22.12


______________________________ __________________ __________________per Vishal Bansal Biswadip Gupta Purnendu PandeyPartner Director Whole Time DirectorMembership Number: 097546 DIN: 00048258 DIN: 07145733Place of Signature: Mumbai Kolkata Paschim BurdwanDate: May 12, 2020 Date- May 12, 2020 Date- May 12, 2020


Kolkata MumbaiDate- May 12, 2020 Date- May 12, 2020

The financial statements were approved by the Board at its meeting held on April 28, 2020 and are singed on the Board’s behalf on May 12, 2020. Except for issuance of shares against the application money (refer note 11), there are no material adjusting/ non-adjusting events between the reporting date and the date of financial statements sign-off.

In the interim, the Company has subleased/transferred 133 acres of land (~128 acres of Leasehold land and ~5 acres of Freehold land) to JSW Cement Limited, a JSW group company, for setting up of a cement plant, after obtaining necessary approvals from the Government in accordance with the lease agreement. Besides, the Company has also let out certain buildings for the use of the employees of the cement plant.

The outbreak of Coronavirus (Covid-19) pandemic globally and in India is causing significant disturbance and slowdown of economic activity. In many countries, businesses are being forced to cease or limit their operations for long or indefinite periods of time. On March 24, 2020, the Government of India ordered a nationwide lockdown for 21 days which further got extended till May 17, 2020 to avoid community spread of Covid-19 in India resulting in a significant reduction in economic activities in the Country. The management has assessed and determined that Covid-19 did not have any impact on the financial position and performance of the Company for the year ended March 31, 2020. The management also believes that Covid-19 impact on steel industry, if any, will be restricted to short to medium term only and there is no long-term impact. Hence, the Company is committed for implementation of the Steel plant project. The management believes that the delay, if any, caused by Covid-19 in the implementation will be temporary.

JSW Steel Limited, the holding company has, vide its letter dated April 24, 2020, confirmed its unconditional financial support to the Company to enable it to continue as a going concern till such time the implementation of the Project commences.


"Considering the above, the Board of Directors are of the opinion that none of its assets is impaired as at March 31, 2020 and the going concern assumption is appropriate."

Previous year’s figures have been regrouped / rearranged wherever necessary, to conform to current year’s presentation.

In 2007, the Company (together with its subsidiaries) proposed to set up a 10 million tons per annum integrated steel plant and 1,660 MW captive power plant at Salboni of district Paschim Medinipur in West Bengal [collectively referred to as Integrated Steel Project (ISP / Project)]. The Company entered into a Development Agreement with the Government of West Bengal and West Bengal Mineral Development Corporation (WBMDTC) and accordingly Government of West Bengal agreed to provide necessary assistance and cooperation for implementation of the project, including arrangement and supply of resources. In the first phase, the Company has planned to setup a 3 million ton per annum integrated steel plant and a 300 MW captive power plant. The Government of West Bengal allocated 4,102 acres of land on a long-term lease to the Company and three coal blocks were identified by WBMDTC for the Project. In September 2014, the Hon’ble Supreme Court deallocated all coal mines including coal block allocated to WBMDTC to be used for Company’s ISP. However, the Development Agreement with the Government of West Bengal continues to be valid.

In February 2016, the Cabinet Committee on Economic Affairs, approved the allocations/linkages of coal blocks for non-regulated sector including Steel. However, no auctions have been scheduled till date for coal linkages to be proposed for greenfield projects in steel sector. Besides, the Government has also not yet finalised the rules and regulations related to the participation of companies for securing iron ore for greenfield projects, the Company has not been able to secure any mining rights for sourcing iron ore.

In view of the above, the Project has been put on hold till such time the Company is able to secure coal and iron ore linkages required for the Project. These events and conditions indicate that a material uncertainty exist relating to allocation of coal and iron ore mines to the Company and its consequential impact on the implementation of the Project. However, the Company is committed towards implementing the Project with support of Central and State Governments and believes that it will be able to secure coal and iron ore linkages in due course of time. In an unlikely event, if the Company is unable to secure the coal and iron ore linkages, it will identify alternative possibilities of operating the plant based on bought out coal and iron ore.

BISWADIP GUPTA


PURNENDU PANDEY


PARTHA BOSE




VISHAL BANSAL


Documents

INDEPENDENT AUDITOR’S REPORT Report on the Audit of the ......aforesaid standalone Ind AS financial statements give the information required by the Companies Act, 2013, as amended