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Key audit matters
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How our audit addressed the key audit matter
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Recoverability of investments in and loans / advances and financial guarantees given on behalf of certain subsidiaries (as described in note 48
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of the standalone financial statements)
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The Company has investments in certain subsidiaries with a carrying
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Our audit procedures included the following:
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value of I 1,006 crores. Further, the Company has also provided loans and/
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•
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We obtained and read management's assessment for impairment.
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or guarantees to or on behalf of these subsidiaries with a carrying value
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•
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We performed test of controls over impairment process through
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of I 21,488 crores. These subsidiaries have either been incurring losses
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inspection of evidence of performance of these controls.
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or the investments made by them in the step-down subsidiaries have
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•
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We assessed the impairment model prepared by the management and
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been making losses. During the year ended March 31, 2026, the Company
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the assumptions used, with particular attention to the following:
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has recognised an impairment allowance of I 58 crores in respect of
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- benchmarking or assessing key assumptions used in the
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investments in a subsidiary, as described in note 48(c) to the standalone
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impairment models, including discount rates, risk free rate of return,
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financial statements.
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long term growth rate and other key assumptions against external
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Assessment of the recoverable amount of the investments in and loans/
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and internal data;
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advances including interest thereon given to these subsidiaries and
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- assessing the cash flow forecasts through analysis of actual past
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financial guarantees given on behalf of these subsidiaries has been
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performance and comparison to previous forecasts;
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identified as a key audit matter due to:
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- testing the mathematical accuracy and performing sensitivity
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• Significance of the carrying amount of these balances
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analyses of the models; and
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• The assessment requires management to make significant estimates
concerning the estimated future cash flows, qualitative assessments
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- understanding the commercial prospects of the assets/ projects
and comparison of assumptions with external data sources;
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of the status of the project and its future depending on balance work
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•
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We assessed the competence, capabilities and objectivity of the experts
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to be performed or approvals to be received, associated discount rates
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used by management in the process of determining recoverable amounts.
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and growth rates based on management's view of future business
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•
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We involved internal experts to assess the Company's valuation
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prospects.
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methodology and assumptions applied in determining the fair value,
wherever necessary.
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• Changes to any of these assumptions could lead to material changes in
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•
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We assessed the conclusions reached by management and those charged
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the estimated recoverable amount, impacting both potential impairment
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with governance on account of various estimates and judgements.
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charges and potential reversals of impairment.
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•
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We assessed the compliance of the disclosures made in note 48 of the
standalone financial statements with the accounting standards.
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Key audit matters
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How our audit addressed the key audit matter
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Accuracy and completeness of disclosure of related party transactions and compliance with the provisions of Companies Act 2013 and
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('SEBI (LODR) 2015') (as described in note 43 of the
standalone financial statements)
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We identified the accuracy and completeness of disclosure of related party Our audit procedures in relation to the disclosure of related party
transactions as set out in respective notes to the standalone financial transactions included the following:
statements as a key audit matter due to: • We obtained an understanding, evaluated the design and tested
• The significance of transactions with related parties during the year operating effectiveness of the controls related to capturing of
ended March 31, 2026. related party transactions and management's process of ensuring all
• Related party transactions are subject to the compliance requirement transactions and balanc:es with related parties have tieen disclosed in
under the Companies Act 2013 and SEBI (LODR) 2015 the standalone hnancial statements.
• We obtained an understanding of the Company's policies and
procedures in respect of evaluating arms-length pricing and approval
process by the audit committee and the board of directors.
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We agreed the amounts disclosed with underlying documentation and
read relevant agreements, evaluation of arms-length by management,
on a sample basis, as part of our evaluation of the disclosure.
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We assessed management evaluation of compliance with the
provisions of Section 177 and Section 188 of the Companies Act 2013
and SEBI (LODR) 2015.
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•
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We evaluated the disclosures through reading of statutory information,
books and records and other documents obtained during the course of
our audit.
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Claims and exposures relating to taxation and litigation (as described in note 44 of the standalone financial statements)
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The Company has disclosed in note 44 of the standalone financial
statements, contingent liabilities of I 4,713 crores in respect of disputed
claims / levies under various tax and legal matters and I 5,765 crores
towards Claims related to Forest development tax / fee. In addition, the
Company has assessed several claims as 'Remote' and hence are not
required to be disclosed as contingent liabilities. Taxation and litigation
exposures have been identified as a key audit matter due to:
• Significance of these amounts and large number of disputed matters
with various authorities.
• Significant judgement and assumptions required by management in
assessing the exposure of each case to evaluate whether there is a
need to set up a provision and measurement of exposures as well as
the disclosure of contingent liabilities.
We focused on this matter because of the potential financial impact on the
standalone financial statements. Additionally, the treatment of taxation and
litigation cases require significant judgement due to the complexity of the
cases, timescales for resolution and involvement of various authorities.
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Our audit procedures included the following:
• We obtained understanding, evaluated the design, and tested the
operating effectiveness of the controls related to the identification,
recognition and measurement of provisions for disputes, potential
claims and litigation, and contingent liabilities.
• We obtained details of legal and tax disputed matters and evaluation
made by the management and assessed management's position
through discussions on both the probability of success in significant
cases, and the magnitude of any potential loss.
• We read external legal opinions (where considered necessary) and
other evidence to corroborate management's assessment of the risk
profile in respect of material legal claims.
• We involved tax specialists to assist us in evaluating tax positions
taken by management for material claims.
• We assessed the relevant disclosures made in the standalone financial
statements for compliance in accordance with the requirements of Ind
AS 37.
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We have audited the accompanying standalone financial
statements of JSW Steel Limited ("the Company"), which
comprise the Balance sheet as at March 31, 2026, the
Statement of Profit and Loss, including the statement of
Other Comprehensive Income, the Cash Flow Statement
and the Statement of Changes in Equity for the year then
ended, and notes to the standalone financial statements,
including a summary of material accounting policies and other
explanatory information.
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone
financial statements give the information required by the
Companies Act, 2013, as amended ("the Act") in the manner
so required and give a true and fair view in conformity with
the accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2026, its profit
including other comprehensive income, its cash flows and the
changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements
in accordance with the Standards on Auditing (SAs), as
specified under section 143(10) of the Act. Our responsibilities
under those Standards are further described in the 'Auditor's
Responsibilities for the Audit of the Standalone Financial
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 ethical requirements that are relevant to our audit of
the financial statements under the provisions of the Act and
the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and
the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our
audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
standalone financial statements for the financial year ended
March 31, 2026. These matters were addressed in the context
of our audit of the standalone financial statements as a whole,
and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. For each matter below, our
description of how our audit addressed the matter is provided
in that context.
We have determined the matters described below to be the
key audit matters to be communicated in our report. We
have fulfilled the responsibilities described in the Auditor's
responsibilities for the audit of the standalone financial
statements section of our report, including in relation to these
matters. Accordingly, our audit included the performance of
procedures designed to respond to our assessment of the
risks of material misstatement of the standalone financial
statements. The results of our audit procedures, including
the procedures performed to address the matters below,
provide the basis for our audit opinion on the accompanying
standalone financial statements.
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 Annual report, but does not
include the standalone financial statements and our auditor's
report thereon.
Our opinion on the standalone financial statements does not
cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other information
and, in doing so, consider whether such other information is
materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be
materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of the Management and Those Charged
with Governance for the Standalone Financial Statements
The Company's Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to
the preparation of these standalone financial statements that
give a true and fair view of the financial position, financial
performance including other comprehensive income, cash
flows and changes in equity of the Company in accordance
with the accounting principles generally accepted in India,
including the Indian Accounting Standards (Ind AS) specified
under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended.
This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and
prudent; and the design, implementation and maintenance
of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and
presentation of the standalone financial statements that give
a true and fair view and are free from material misstatement,
whether due to fraud or error.
In preparing the standalone financial statements, management
is responsible for assessing the Company's ability to continue
as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of
accounting unless management either intends to liquidate the
Company or to cease operations, or has no realistic alternative
but to do so.
Those charged with governance are also responsible for
overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone
Financial Statements
Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these standalone
financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the standalone financial statements, whether due to fraud
or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)(i) of the Act, we
are also responsible for expressing our opinion on whether
the Company has adequate internal financial controls with
reference to financial statements in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of 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 or conditions 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's
report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained
up to the date of our auditor's report. However, future events
or conditions may cause the Company to cease to continue
as a going concern.
• Evaluate the overall presentation, structure and content
of the standalone financial statements, including the
disclosures, and whether the standalone financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the standalone financial statements
for the financial year ended March 31, 2026, and are therefore
the key audit matters. We describe these matters in our auditor's
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in
our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order,
2020 ("the Order"), issued by the Central Government of
India in terms of sub-section (11) of section 143 of the
Act, based on our audit, 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, to the
extent applicable, that:
(a) We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit;
(b) I n our opinion, proper books of account as required
by law have been kept by the Company so far as it
appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss
including the Statement of Other Comprehensive
Income, the Cash Flow Statement and Statement
of Changes in Equity dealt with by this Report are in
agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial
statements comply with the Accounting Standards
specified under Section 133 of the Act, read with
Companies (Indian Accounting Standards) Rules,
2015, as amended;
(e) On the basis of the written representations received
from the directors as on March 31, 2026, taken
on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2026, from
being appointed as a director in terms of Section
164 (2) of the Act;
(f) With respect to the adequacy of the internal financial
controls with reference to standalone financial
statements and the operating effectiveness of such
controls, refer to our separate Report in "Annexure 2"
to this report;
(g) I n our opinion, the managerial remuneration for the
year ended March 31, 2026 has been paid / provided
by the Company to its directors in accordance with
the provisions of section 197 read with Schedule V
of the Act;
(h) With respect to the other matters to be included in
the Auditor's Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014,
as amended in our opinion and to the best of our
information and according to the explanations given
to us:
i. The Company has disclosed the impact of
pending litigations on its financial position in its
standalone financial statements - Refer note
44 to the standalone financial statements;
ii. The Company did not have any long-term
contracts including derivative contracts
for which there were any material
foreseeable losses;
iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by
the Company;
iv. a) The management has represented that,
to the best of its knowledge and belief,
other than as disclosed in the note 54 to
the standalone financial statements, no
funds have been advanced or loaned or
invested (either from borrowed funds or
share premium or any other sources or kind
of funds) by the Company to or in any other
persons or entities, including foreign entities
("Intermediaries"), with the understanding,
whether recorded in writing or otherwise,
that the Intermediary shall, whether,
directly or indirectly lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the Company
("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of
the Ultimate Beneficiaries;
b) The management has represented that,
to the best of its knowledge and belief, no
funds have been received by the Company
from any persons or entities, including
foreign entities ("Funding Parties"), with
the understanding, whether recorded in
writing or otherwise, that the Company shall,
whether, directly or indirectly, lend or invest
in other persons or entities identified in any
manner whatsoever by or on behalf of the
Funding Party ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries; and
c) Based on such audit procedures performed
that have been considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused
us to believe that the representations
under sub-clause (a) and (b) contain any
material misstatement.
v. The final dividend paid by the Company during
the year in respect of the same declared for the
previous year is in accordance with section 123
of the Act to the extent it applies to payment
of dividend.
As stated in note 56(a) to the standalone
financial statements, the Board of Directors
of the Company have proposed final dividend
for the year which is subject to the approval
of the members at the ensuing Annual General
Meeting. The dividend declared is in accordance
with section 123 of the Act to the extent it
applies to declaration of dividend.
vi. Based on our examination which included test
checks, the Company has used accounting
software for maintaining its books of account
which has a feature of recording audit trail
(edit log) facility and the same has operated
throughout the year for all relevant transactions
recorded in the software (refer note 59 to
the financial statements). Further, during the
course of our audit we did not come across any
instance of audit trail feature being tampered
with. Additionally, the audit trail of prior years
has been preserved by the Company as per the
statutory requirements for record retention to
the extent it was enabled and recorded in the
respective years.
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Suresh Yadav
Partner
Membership Number: 119878
UDIN: 26119878HDMNZU9056
Place of Signature: Mumbai
Date: May 14, 2026
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