XVII. Provisions

Provisions are recognised when the Company has a
present obligation (legal or constructive), as a result
of past events, and it is probable that an outflow of
resources, that can be reliably estimated, will be required
to settle such an obligation.

The amount recognised as a provision is the best
estimate of the consideration required to settle the
present obligation at the balance sheet date, taking
into account the risks and uncertainties surrounding
the obligation. When a provision is measured using the
cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows
(when the effect of the time value of money is material).

When some or all of the economic benefits required to
settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset if it is
virtually certain that reimbursement will be received and
the amount of the receivable can be measured reliably.

Onerous contracts

Present obligations arising under onerous contracts
are recognised and measured as provisions. However,
before a separate provision for an onerous contract is
established, the Company recognises any write down
that has occurred on assets dedicated to that contract.
An onerous contract is considered to exist where the
Company has a contract under which the unavoidable
costs of meeting the obligations under the contract
exceed the economic benefits expected to be received
from the contract. The unavoidable costs under a
contract reflect the least net cost of exiting from the

contract, which is the lower of the cost of fulfilling it and
any compensation or penalties arising from failure to fulfil
it. The cost of fulfilling a contract comprises the costs
that relate directly to the contract (i.e., both incremental
costs and an allocation of costs directly related to
contract activities).

XVIII. Investment in subsidiaries, associates and joint
ventures

Investment in subsidiaries, associates and joint ventures
are shown at cost or deemed cost applied on transition
to Ind AS, less impairment, in accordance with the option
available in Ind AS 27, 'Separate Financial Statements'.
Where the carrying amount of an investment in greater
than its estimated recoverable amount, it is written down
immediately to its recoverable amount and the difference
is recognised in the Statement of Profit and Loss. On
disposal of investment, the difference between the net
disposal proceeds and the carrying amount is recognised
in the Statement of Profit and Loss.

XIX. Financial Instruments

Financial assets and financial liabilities are recognised
when an entity becomes a party to the contractual
provisions of the instrument.

Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and
financial liabilities at fair value through Statement of
Profit and Loss (FVTPL)) are added to or deducted from
the fair value of the financial assets or financial liabilities,
as appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial assets
or financial liabilities at fair value through profit and loss
are recognised immediately in Statement of Profit and
Loss. Trade receivables that do not contain a significant
financing component are measured at transaction cost.

A. Financial assets

a) Recognition and initial measurement

A financial asset is initially recognised at fair value and,
for an item not at FVTPL, transaction costs that are
directly attributable to its acquisition or issue. Purchases
and sales of financial assets are recognised on the trade
date, which is the date on which the Company becomes a
party to the contractual provisions of the instrument.

b) Classification of financial assets

Financial assets are classified, at initial recognition and
subsequently measured at -

• amortised cost,

• fair value through other comprehensive income
(OCI), and

• fair value through profit and loss.

A financial asset is measured at amortised cost if it meets
both of the following conditions and is not designated
at FVTPL:

• The asset is held within a business model whose
objective is to hold assets to collect contractual cash
flows; and

• The contractual terms of the financial asset give
rise on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.

(i) Debt instruments

A debt instrument is classified as FVTOCI only if it
meets both of the following conditions and is not
recognised at FVTPL;

• The asset is held within a business model
whose objective is achieved by both collecting
contractual cash flows and selling financial
assets; and

• The contractual terms of the financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding.

Debt instruments included within the FVTOCI
category are measured initially as well as at each
reporting date at fair value. Fair value movements
are recognised in the Other Comprehensive Income
(OCI). However, the Company recognises interest
income, impairment losses & reversals and foreign
exchange gain or loss in the Statement of Profit
and Loss. On derecognition of the asset, cumulative
gain or loss previously recognised in OCI is
reclassified from the equity to Statement of Profit
and Loss. Interest earned whilst holding FVTOCI debt
instrument is reported as interest income using the
EIR method.

(ii) Equity instruments

All equity investments in scope of Ind AS 109
Financial instruments are measured at fair value.
Equity instruments which are held for trading and
contingent consideration recognised by an acquirer
in a business combination to which Ind AS 103
Business Combinations applies are classified as at
FVTPL. For all other equity instruments, the Company
may make an irrevocable election to present in other
comprehensive income subsequent changes in the

fair value. The Company makes such election on an
instrument-by-instrument basis. The classification
is made on initial recognition and is irrevocable. The
equity instruments which are strategic investments
and held for long term purposes are classified
as FVTOCI.

If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value changes on
the instrument, excluding dividends, are recognised
in the OCI. There is no recycling of the amounts from
OCI to Statement of Profit and Loss, even on sale of
investment. However, the Company may transfer the
cumulative gain or loss within equity.

Equity instruments included within the FVTPL
category are measured at fair value with all changes
recognised in the Statement of Profit and Loss.

All other financial assets are classified as measured
at FVTPL.

In addition, on initial recognition, the Company
may irrevocably designate a financial asset that
otherwise meets the requirements to be measured
at amortised cost or at FVTOCI as at FVTPL if doing so
eliminates or significantly reduces and accounting
mismatch that would otherwise arise.

Financial assets at FVTPL are measured at fair value
at the end of each reporting year, with any gains
and losses arising on remeasurement recognised
in statement of profit and loss. The net gain or
loss recognised in statement of profit and loss
incorporates any dividend or interest earned on the
financial asset and is included in the 'other income'
line item. Dividend on financial assets at FVTPL is
recognised when:

• The Company's right to receive the dividends is
established,

• It is probable that the economic benefits
associated with the dividends will flow to the
entity,

c) Derecognition of financial assets

The Company derecognises a financial asset when the
contractual rights to the cash flows from the asset expire,
or when it transfers the financial asset and substantially
all the risks and rewards of ownership of the asset to
another party.

d) Impairment of financial assets

The Company applies the expected credit loss model
for recognising impairment loss on financial assets
measured at amortised cost, debt instruments at FVTOCI,
lease receivables, trade receivables, other contractual

rights to receive cash or other financial asset, and
financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit
losses with the respective risks of default occurring as
the weights. Credit loss is the difference between all
contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that
the Company expects to receive (i.e., all cash shortfalls),
discounted at the original effective interest rate (or
credit-adjusted effective interest rate for purchased or
originated credit-impaired financial assets). The Company
estimates cash flows by considering all contractual terms
of the financial instrument (for example, prepayment,
extension, call and similar options) through the expected
life of that financial instrument.

The Company measures the loss allowance for a financial
instrument at an amount equal to the lifetime expected
credit losses if the credit risk on that financial instrument
has increased significantly since initial recognition. If the
credit risk on a financial instrument has not increased
significantly since initial recognition, the Company
measures the loss allowance for that financial instrument
at an amount equal to 12-month expected credit losses.
12-month expected credit losses are portion of the life¬
time expected credit losses and represent the lifetime
cash shortfalls that will result if default occurs within the
12 months after the reporting date and thus, are not cash
shortfalls that are predicted over the next 12 months.

I f the Company measured loss allowance for a financial
instrument at lifetime expected credit loss model in the
previous year, but determines at the end of a reporting
year that the credit risk has not increased significantly
since initial recognition due to improvement in credit
quality as compared to the previous year, the Company
again measures the loss allowance based on 12-month
expected credit losses.

When making the assessment of whether there has
been a significant increase in credit risk since initial
recognition, the Company uses the change in the risk of
a default occurring over the expected life of the financial
instrument instead of the change in the amount of
expected credit losses. To make that assessment, the
Company compares the risk of a default occurring on the
financial instrument as at the reporting date with the risk
of a default occurring on the financial instrument as at the
date of initial recognition and considers reasonable and
supportable information, that is available without undue
cost or effort, that is indicative of significant increases in
credit risk since initial recognition.

For trade receivables or any contractual right to
receive cash or another financial asset that result from
transactions that are within the scope of Ind AS 115,

the Company always measures the loss allowance at an
amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected
credit loss allowance for trade receivables, the Company
has used a practical expedient as permitted under Ind
AS 109. This expected credit loss allowance is computed
based on a provision matrix which takes into account
historical credit loss experience and adjusted for forward¬
looking information.

The impairment requirements for the recognition and
measurement of a loss allowance are equally applied to
debt instruments at FVTOCI except that the loss allowance
is recognised in other comprehensive income and is not
reduced from the carrying amount in the balance sheet

The Company has performed sensitivity analysis on the
assumptions used and based on current indicators of
future economic conditions, the Company expects to
recover the carrying amount of these assets.

e) Effective interest method

The effective interest method is a method of calculating
the amortised cost of a debt instrument and of allocating
interest income over the relevant year. The effective
interest rate is the rate that exactly discounts estimated
future cash receipts (including all fees and points paid or
received that form an integral part of the effective interest
rate, transaction costs and other premiums or discounts)
through the expected life of the debt instrument, or,
where appropriate, a shorter year, to the net carrying
amount on initial recognition.

I ncome is recognised on an effective interest basis for
debt instruments other than those financial assets
classified as at FVTPL. Interest income is recognised in
statement of profit and loss and is included in the 'Other
income' line item.

B. Financial liabilities and equity instruments

a) Classification as debt or equity

Debt and equity instruments issued by a company
are classified as either financial liabilities or as equity
in accordance with the substance of the contractual
arrangements and the definitions of a financial liability
and an equity instrument.

b) Equity instruments

An equity instrument is any contract that evidences a
residual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by the
Company are recognised at the proceeds received, net of
direct issue costs.

Repurchase of the Company's own equity instruments
is recognised and deducted directly in equity. No gain or
loss is recognised in Statement of Profit and Loss on the

purchase, sale, issue or cancellation of the Company's
own equity instruments.

c) Financial liabilities

Financial liabilities are classified as either financial
liabilities 'at FVTPL' or financial liabilities 'at amortised
cost'.

Financial liabilities at FVTPL:

Financial liabilities are classified as at FVTPL when the
financial liability is either held for trading or it is designated
as at FVTPL.

A financial liability is classified as held for trading if:

• It has been incurred principally for the purpose of
repurchasing it in the near term; or

• on initial recognition it is part of a portfolio of identified
financial instruments that the Company manages
together and has a recent actual pattern of short-term
profit-taking; or

• it is a derivative that is not designated and effective as
a hedging instrument.

A financial liability other than a financial liability held
for trading may be designated as at FVTPL upon initial
recognition if:

• such designation eliminates or significantly reduces a
measurement or recognition inconsistency that would
otherwise arise;

• the financial liability forms part of a group of financial
assets or financial liabilities or both, which is managed
and its performance is evaluated on a fair value basis,
in accordance with the Company's documented risk
management or investment strategy, and information
about the grouping is provided internally on that
basis; or

• it forms part of a contract containing one or more
embedded derivatives, and Ind AS 109 permits the
entire combined contract to be designated as at FVTPL
in accordance with Ind AS 109.

Financial liabilities at FVTPL are stated at fair value,
with any gains or losses arising on remeasurement
recognised in Statement of Profit and Loss. The net
gain or loss recognised in Statement of Profit and Loss
incorporates any interest paid on the financial liability
and is included in the Statement of Profit and Loss. For
Liabilities designated as FVTPL, fair value gains/losses
attributable to changes in own credit risk are recognised
in OCI.

The Company derecognises financial liabilities when, and
only when, the Company's obligations are discharged,
cancelled or they expire. The difference between the
carrying amount of the financial liability derecognised

and the consideration paid and payable is recognised in
the Statement of Profit and Loss.

Derecognition of financial liabilities:

The Company derecognises financial liabilities when, and
only when, the Company's obligations are discharged,
cancelled or have expired. An exchange between with
a lender of debt instruments with substantially different
terms is accounted for as an extinguishment of the
original financial liability and the recognition of a new
financial liability. Similarly, a substantial modification
of the terms of an existing financial liability (whether or
not attributable to the financial difficulty of the debtor)
is accounted for as an extinguishment of the original
financial liability and the recognition of a new financial
liability. The difference between the carrying amount of
the financial liability derecognised and the consideration
paid and payable is recognised in the Statement of Profit
and Loss.

C. Derivative Instruments and Hedge Accounting

a) Derivative financial instruments

The Company enters into a variety of derivative financial
instruments to manage its exposure to interest
rate, commodity price and foreign exchange rate
risks, including foreign exchange forward contracts,
commodity forward contracts, interest rate swaps and
cross currency swaps.

Derivatives are initially recognised at fair value at the
date the derivative contracts are entered into and are
subsequently remeasured to their fair value at the end
of each reporting year. The resulting gain or loss is
recognised in Statement of Profit and Loss immediately
unless the derivative is designated and effective as
a hedging instrument, in which event the timing of the
recognition in Statement of Profit and Loss depends on
the nature of the hedge item.

b) Embedded derivatives

An embedded derivative is a component of a hybrid
(combined) instrument that also includes a non-derivative
host contract - with the effect that some of the cash
flows of the combined instrument vary in a way similar to
a stand-alone derivative. An embedded derivative causes
some or all of the cash flows that otherwise would be
required by the contract to be modified according to
a specified interest rate, financial instrument price,
commodity price, foreign exchange rate, index of prices
or rates, credit rating or credit index, or other variable,
provided in the case of a non-financial variable that
the variable is not specific to a party to the contract.
Reassessment only occurs if there is either a change
in the terms of the contract that significantly modifies
the cash flows that would otherwise be required or a

reclassification of a financial asset out of the fair value
through profit and loss.

I f the hybrid contract contains a host that is a financial
asset within the scope of Ind AS 109, the Company does
not separate embedded derivatives. Rather, it applies
the classification requirements contained in Ind AS 109
to the entire hybrid contract. Derivatives embedded in
all other host contracts are accounted for as separate
derivatives and recorded at fair value if their economic
characteristics and risks are not closely related to those
of the host contracts and the host contracts are not held
for trading or designated at fair value though profit and
loss. These embedded derivatives are measured at fair
value with changes in fair value recognised in profit and
loss, unless designated as effective hedging instruments.

c) Hedge accounting

The Company designates certain hedging instruments,
which include derivatives, embedded derivatives and
non-derivatives in respect of foreign currency, interest
rate and commodity risk, as either cash flow hedge, fair
value hedge. Hedges of foreign currency risk on firm
commitments are accounted for as cash flow hedges.

At the inception of the hedge relationship, the entity
documents the relationship between the hedging
instrument and the hedged item, along with its risk
management objectives and its strategy for undertaking
various hedge transactions. Furthermore, at the inception
of the hedge and on an ongoing basis, the Company
documents whether the hedging instrument is highly
effective in offsetting changes in fair values or cash
flows of the hedged item attributable to hedged risk.

(i) Fair value hedges

Changes in fair value of the designated portion of
derivatives that qualify as fair value hedges are
recognised in the Statement of Profit and Loss
immediately, together with any changes in the
fair value of the hedged asset or liability that are
attributable to the hedged risk. The change in the
fair value of the designated portion of hedging
instrument and the change in the hedged item
attributable to hedged risk are recognised in the
Statement of Profit and Loss in the line item relating
to the hedged item.

The Company designates only the spot component
for derivative instruments in fair value Hedging
relationship. The Company defers changes in the
forward element of such instruments in hedging
reserve and the same is amortised over the period
of the contract.

When the Company designates only the intrinsic
value of the option as the hedging instrument, it
account for the changes in the time value in OCI.

This amount is be removed from OCI and recognised
in P&L, either over the period of the hedge if the hedge
is time related, or when the hedged transaction
affects P&L if the hedge is transaction related.

Hedge accounting is discontinued when the
hedging instrument expires or is sold, terminated, or
exercised, or when it no longer qualifies for hedge
accounting. For fair value hedges relating to items
carried at amortised cost, the fair value adjustment
to the carrying amount of the hedged item arising
from the hedged risk is amortised to profit and loss
from that date.

(ii) Cash flow hedges

The effective portion of changes in fair value of
derivatives and non-derivatives that are designated
and qualify as cash flow hedges is recognised in
other comprehensive income and accumulated
under the heading of cash flow hedging reserve.
The gain or loss relating to the ineffective portion
is recognised immediately in Statement of profit
and loss.

Amounts previously recognised in other
comprehensive income and accumulated in equity
relating to effective portion as described above are
reclassified to profit and loss in the years when the
hedged item affects profit and loss, in the same
line as the recognised hedged item. However, when
the hedged forecast transaction results in the
recognition of a non-financial asset or a non-financial
liability, such gains or losses are transferred from
equity (but not as a reclassification adjustment) and
included in the initial measurement of the cost of the
non-financial asset or non-financial liability.

Hedge accounting is discontinued when the
hedging instrument expires or is sold, terminated, or
exercised, or when it no longer qualifies for hedge
accounting. Any gain or loss recognised in other
comprehensive income and accumulated in equity at
that time remains in equity and is recognised when
the forecast transaction is ultimately recognised
in profit and loss. When a forecast transaction
is no longer expected to occur, the gain or loss
accumulated in equity is recognised immediately in
profit and loss.

XX. Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker.

The Board of directors of the Company has been identified
as the Chief Operating Decision Maker which reviews
and assesses the financial performance and makes the
strategic decisions.

XXI. Cash and cash equivalents

Cash and cash equivalent in the Balance Sheet comprise
cash at banks and on hand and short-term deposits with
an original maturity of three months or less, that are
readily convertible to known amount of cash and which
are subject to insignificant risk of changes in value.

For the purpose of the Statement of cash flows, cash
and cash equivalent consists of cash and short-term
deposits, as defined above.

XXII. Earnings per share

Basic earnings per share is computed by dividing the
profit and loss after tax for the year attributable to owners
of the Company by the weighted average number of
equity shares outstanding during the year. The weighted
average number of equity shares outstanding during the
year is adjusted for treasury shares, bonus issue, bonus
element in a rights issue to existing shareholders, share
split and reverse share split (consolidation of shares).

Diluted earnings per share is computed by dividing the
profit or loss after tax as adjusted for dividend, interest
and other charges to expense or income (net of any
attributable taxes) relating to the dilutive potential equity
shares, by the weighted average number of equity shares
considered for deriving basic earnings per share and
the weighted average number of equity shares which
could have been issued on the conversion of all dilutive
potential equity shares including the treasury shares
held by the Company to satisfy the exercise of the share
options by the employees.

XXIII. Business combination

Acquisition of business has been accounted for using
the acquisition method. The consideration transferred in
business combination is measured at the aggregate of
the acquisition date fair values of assets given, liabilities
incurred by the Company to the former owners of the
acquiree and consideration paid by the Company in
exchange for control of the acquiree. For this purpose,
the liabilities assumed include contingent liabilities
representing present obligation and they are measured at
their acquisition date fair values irrespective of the fact
that outflow of resources embodying economic benefits
is not probable. Acquisition related costs are recognised
in the statement of profit and loss.

At the acquisition date, the identifiable assets acquired
and the liabilities assumed are recognised at their fair
value at the acquisition date, except that:

• deferred tax assets or liabilities and liabilities or
assets related to employee benefit arrangements
are recognised and measured in accordance with
Ind AS 12 Income Taxes and Ind AS 19 Employee
Benefits respectively;

• liabilities or equity instruments related to share-based
payment arrangements of the acquiree or share-based
payment arrangements of the Group entered into to
replace share-based payment arrangements of the
acquiree are measured in accordance with Ind AS 102
Share-based Payments at the acquisition date; and

• assets (or disposal groups) that are classified as held
for sale in accordance with Ind AS 105 Non-current
Assets Held for Sale and Discontinued Operations are
measured in accordance with that Standard.

When the Company acquires a business, it assesses the
financial assets and liabilities assumed for appropriate
classification and designation in accordance with
the contractual terms, economic circumstances and
pertinent conditions as at the acquisition date.

Goodwill is measured as the excess of the sum of the
consideration transferred, the amount of any non¬
controlling interests in the acquiree, and the fair value
of the acquirer's previously held equity interest in the
acquiree (if any) over the net of the acquisition-date
amounts of the identifiable assets acquired and the
liabilities assumed.

In case of bargain purchase, before recognizing gain
in respect thereof, the Company determines whether
there exists clear evidence of the underlying reasons
for classifying the business combination as a bargain
purchase. Thereafter, the Company reassesses whether
it has correctly identified all of the assets acquired
and all of the liabilities assumed and recognizes any
additional assets or liabilities that are identified in that
reassessment. The Company then reviews the procedures
used to measure the amounts that Ind AS requires for the
purposes of calculating the bargain purchase. If the gain
remains after this reassessment and review, the Company
recognizes it in other comprehensive income and
accumulates the same in equity as capital reserve. This
gain is attributed to the acquirer. If there does not exist
clear evidence of the underlying reasons for classifying
the business combination as a bargain purchase, the
Company recognises the gain, after reassessing and
reviewing, directly in equity as capital reserve.

If the initial accounting for a business combination is
incomplete by the end of the financial year, the provisional
amounts for which the accounting is incomplete shall
be disclosed in the financial statements and provisional
amounts recognized at the acquisition date shall be
retrospectively adjusted during the measurement period.
During the measurement period, the Company shall
also recognize additional assets or liabilities if the new
information is obtained about facts and circumstances
that existed as of the acquisition date and if known,
would have resulted in the recognition of those assets
and liabilities as of that date. However, the measurement

period shall not exceed the period of one year from the
acquisition date.

XXIV. Acceptances:

a) The Company enters into deferred payment
arrangements (acceptances) whereby local and
overseas lenders such as banks and other financial
institutions make payments to supplier's banks
for import of raw materials and property, plant and
equipment. The banks and financial institutions
are subsequently repaid by the Company at a later
date providing working capital benefits. These
arrangements are in the nature of credit extended
in normal operating cycle and these arrangements
for raw materials are recognised as Acceptances
and arrangements for property, plant and equipment
are recognised as borrowings. Interest borne by
the company on such arrangements is accounted
as finance cost. Acceptances are subsequently
measured at amortised cost using the effective
interest method. Payments made by banks and
financial institutions to the operating vendors
are treated as a non-cash item and settlement
of acceptances by the Company is treated as
cash flows from operating activity reflecting the
substance of the payment.

b) In the ordinary course of business, the company
has entered into certain Supplier Financing
Arrangements (SFA) with specific service suppliers
during the year. Under these arrangements, Financial
Institution pays the supplier early at a discounted
rate, and the Company settles the outstanding
balance directly with the Financing Institution at
the end of the agreed-upon terms. The primary
objective of these arrangement is to facilitate early
payment to suppliers while enabling the Company
to optimise its working capital through extended
payment terms. The Company doesn't provide any
collateral or guarantee to the financing Institution
in respect of these arrangement. Payments made
through Supplier Finance Arrangements (SFA) are
disclosed under operating cash flows. Details of
such arrangement are set out in note 26.

3. Key sources of estimation uncertainty and
critical accounting judgements

In the course of applying the policies outlined in all
notes under section 2 above, the Company is required
to make judgements, estimates and assumptions about
the carrying amount of assets and liabilities that are
not readily apparent from other sources. The estimates
and associated assumptions are based on historical
experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the year in which the estimate is revised
if the revision affects only that year, or in the year of the
revision and future year, if the revision affects current
and future year.

A) Key sources of estimation uncertainty

i) Useful lives of property, plant and equipment

Management reviews the useful lives of property, plant
and equipment at least once a year. Such lives are
dependent upon an assessment of both the technical
lives of the assets and also their likely economic
lives based on various internal and external factors
including relative efficiency and operating costs. This
reassessment may result in change in depreciation and
amortisation expected in future periods.

ii) Impairment of investments in subsidiaries, joint-
ventures and associates

Determining whether the investments in subsidiaries,
joint ventures and associates are impaired requires an
estimate in the value in use of investments. In considering
the value in use, the management have anticipated the
future commodity prices, capacity utilisation of plants,
operating margins, mineable resources and availability of
infrastructure of mines, discount rates and other factors
of the underlying businesses / operations of the investee
companies. Any subsequent changes to the cash flows
due to changes in the above mentioned factors could
impact the carrying value of investments.

iii) Contingencies

I n the normal course of business, contingent liabilities
may arise from litigation and other claims against the
Company. Potential liabilities that are possible but not
probable of crystalising or are very difficult to quantify
reliably are treated as contingent liabilities. Such liabilities
are disclosed in the notes but are not recognised. The
cases which have been determined as remote by the
Company are not disclosed.

Contingent assets are neither recognised nor disclosed
in the financial statements unless when an inflow of
economic benefits is probable.

iv) Fair value measurements of financial assets / liabilities

When the fair values of financial assets or financial
liabilities recorded or disclosed in the financial
statements cannot be measured based on quoted
prices in active markets, their fair value is measured
using valuation techniques including the DCF model.
The inputs to these models are taken from observable
markets where possible, but where this is not feasible, a
degree of judgment is required in establishing fair values.
Judgements include consideration of inputs such as
liquidity risk, credit risk and volatility.

v) Provision for site restoration

Provision for site restoration are estimated case-by-case
based on available information, taking into account
applicable local legal requirements. The estimation is
made using existing technology, at current prices, and
discounted using an appropriate discount rate where the
effect of time value of money is material. Management
reviews all assumptions periodically and any changes is
accounted accordingly.

vi) Net Realisable Value for Inventory of Mining Operations

I ron Ore inventory held for Captive use in the production
are not written down below cost as finished products in
which they will be consumed are expected to be sold at
or above cost. Inventory which is expected to be sold
to third party is only considered for provision which is
computed by comparing Net realisable value and cost.
The estimation for percentage of inventory used for
captive purpose or to be sold to third party is made using
latest trends of third party and captive sales, sales order
in hand and management judgement.

Net realisable value represents the estimated selling price
for inventories less all estimated costs of completion and
costs necessary to make the sale. In case of iron ore
inventory from mining operations estimated cost includes
any royalty and duties payable to the authorities.

vii) Assessment of Onerous contract for a mine

No provision for onerous contract is ascertained for
a mine basis the estimates including that the iron ore
extracted will be consumed internally, anticipated
improved grade in balance mining reserves and reduction
in MDPA commitment through government approval.
The estimates have been made considering the future
expansion plans, additional time allowed for removal of
iron ore after expiry of lease period, grade ascertained in
the drilling samples of the unexplored areas of the mines
using the orebody modelling and the representation made
to the authorities. Any change in the above estimates
may impact the assessment.

viii) Defined benefit plans

The Company's defined benefit obligations are subject
to a number of assumptions including discount rates,
inflation, salary growth, regulatory changes and mortality
rate. Significant assumptions are required when setting
these criteria and a change in these assumptions would
have a significant impact on the amount recorded in the
Company's balance sheet and the statement of profit
and loss. The Company sets these assumptions based
on previous experience and third party actuarial advice.
The assumptions are reviewed annually and adjusted
following actuarial and experience changes. Further
details on the Company's employee benefit obligations,
including key assumptions are set out in note 40.

B) Critical accounting judgements

i) Control over JSW Realty & Infrastructure Private
Limited (RIPL)

RIPL has developed a residential township in Vijayanagar,
Karnataka on the land taken on lease from the Company
for a period of 30 years and primarily engaged in the
business of construction, development, letting out &
maintenance of township properties and infrastructure
development to the employees of the Company or
other group companies, associates and its contractors.
RIPL is not allowed to sub-let or assign its rights under
the arrangement without prior written consent of the
Company. Though the Company does not hold any
ownership interest in RIPL, the Company has concluded
that the Company has practical ability to direct the
relevant activities of RIPL unilaterally, considering RIPL's
dependency on the Company for funding significant
portion of its operation through subscription to 76.86%
of preference share capital amounting to I 361 crores
issued by RIPL and significant portion of RIPL's activities.

ii) Determining the lease term of contracts with renewal
and termination options - Company as lessee

The Company determines the lease term as the
non-cancellable term of the lease, together with any
periods covered by an option to extend the lease if it
is reasonably certain to be exercised, or any periods
covered by an option to terminate the lease, if it is
reasonably certain not to be exercised.

The Company has several lease contracts that include
extension and termination options. The Company applies
judgement in evaluating whether it is reasonably certain
whether or not to exercise the option to renew or terminate
the lease. That is, it considers all relevant factors that
create an economic incentive for it to exercise either
the renewal or termination. After the commencement
date, the Company reassesses the lease term if there
is a significant event or change in circumstances that
is within its control and affects its ability to exercise or
not to exercise the option to renew or to terminate (e.g.,
construction of significant leasehold improvements or
significant customisation to the leased asset).

iii) Significant influence over JSW Paints Limited
(formerly known as JSW Paints Private Limited)

The Company holds 11.85 % (12.85% as at 31 March
2025) equity shares of JPL pursuant to investments
made over the years per share subscription agreement
(SSA) entered into with JPL on 23 July 2021. As per SSA,
the Company has a right to appoint a Director on the
Board of JPL from the date its shareholding exceeds 10%.
Considering the Company has a right to participate in the
decision-making process which may result into affecting
the Company's variable returns and also has material
transactions with JPL, it is considered that there exists a

significant influence over JPL. Accordingly, JPL is treated
as an associate of the Company w.e.f 22 August 2023,
i.e., the date from which the shareholding exceeded 10%.

iv) Joint control over JSW One Platforms Limited

During the year ended 31 March 2026, JSW Steel
Limited ("JSWSL") has 68.41% equity stake (31 March
2025: 69.01%) in JSW One Platforms Limited ('JOPL'). In
addition, during the year ended 31 March 2026, JSWSL
subscribed to preference shares amounting to I 250
crores, representing 43.47% stake in preference shares
of JOPL. As the per the shareholder's agreement, as
amended, JSWSL, JSW Cement Limited ("JSWCL") and
Mitsui and Co., Ltd. ("Mitsui") and other shareholders,
all the relevant activities of JOPL that affect its variable
returns will continue to be decided unanimously by the
representatives of JSWSL and JSWCL. However, Mitsui
has certain protective rights under this shareholder's
agreement. Thus, the Company had concluded that it has
joint control over JOPL.

v) Sale and lease back transactions

During the year ended 31 March 2025, the Company
transferred its Salav unit having a Direct Reduced Iron
(DRI) capacity of 0.9 MTPA to JSW Green Steel Limited
(JSW Green), a wholly owned subsidiary of the Company,
for cash consideration of I 2,233 crores determined
by an independent valuation expert. The Company has
also entered into a job work arrangement with JSW
Green for conversion of iron ore lumps/ pellets into DRI
(transaction). The management plans to set up a green
steel manufacturing facility at JSW Green by expanding
capacity from existing 0.9 MTPA to 4 MPTA in phases and
consequently estimates that the job work arrangement
to continue for a period of 3 years. Accordingly, the
transaction has been accounted as a sale and leaseback,
resulting in recognition of a gain (net) of I 1,449 crores,
right of use assets of I 55 crores and lease liability I 184
crores as at 31 March 2025.

vi) Incentives under the State Industrial Policy

The Company units at Dolvi in Maharashtra and
Vijayanagar in Karnataka is eligible for incentives under
the respective State Industrial Policy and have been
availing incentives in the form of VAT deferral / CST refunds
historically. The Company currently recognises income
for such government grants based on the State Goods
& Service Tax rates instead of VAT rates, in accordance
with the relevant notifications issued by the State of
Maharashtra and State of Karnataka post implementation
of Goods & Services Tax (GST).

a) The Company is eligible for claiming incentives for
investments made under the Industrial Policy of the
Government of Maharashtra under PSI Scheme 2007.
The Company completed the Phase 1 expansion of

3.3 MTPA to 5 MTPA at Dolvi, Maharashtra in May 2016
and has also received the eligibility certificate for the
same. Further, the Company completed the second
phase of expansion from 5 MTPA to 10 MTPA at Dolvi
Maharashtra during the financial year 2021-22 and
the Company has also received Eligibility Certificate
for this investment relating to Phase 2 capacity
expansion from 5 MTPA to 10 MTPA in FY 2022-23.
Basis the above Eligibility certificate it has started
availing incentives under the PSI 2007. Accordingly,
the Company has recognised the cumulative grant
income amounting to I 714 crores for the year ended
31 March 2026.

Pursuant to receipt of the approval letter from the
Directorate of Industries for merger/transfer of
incentives relating to Dolvi Coke Project Limited
(merged with JSW Steel Limited in an earlier year),
and having concluded that the recognition criteria
under Ind AS 20 - "Accounting for Government Grants
and Disclosure of Government Assistance are met,
the Company has recognised grant income of I 738
crores (I 499 Crores net of true up impact of phase
2 expansion referred above) during the year ended
31 March 2026. Of this, I 547 crores (I 366 crores
net of true up impact of phase 2 expansion referred
above) pertains to earlier years.

b) The State Government of Maharashtra (GOM) vide
its Government Resolution (GR) dated 20 December
2018 issued the modalities for sanction and
disbursement of incentives, under GST regime, and
introduced certain new conditions / restrictions for
accruing incentive benefits granted to the Company.

The management has evaluated the impact of other
conditions imposed and has obtained legal advice on
the tenability of these changes in the said scheme.
Based on such legal advice, the Company has also

made the representation to GOM and believes that
said Incentives would continue to be made available
(including ED Exemption) to the Company under the
GST regime, since the new conditions are not tenable
legally and will contest these changes appropriately.
The Company has considered cashflow on FIFO basis
accordingly, the future cashflows are discounted to
give effect of the time value of money.

c) The Company's Vijayanagar unit in Karnataka is
eligible for VAT/CST incentives under the New
Industrial Policy 2009-14. As per the Government
of Karnataka's notification dated 13 March 2018,
these incentives continue under the GST regime,
with benefits now linked to the SGST rate in place of
VAT. Accordingly, the Company has recognized the
NPV of interest-free loans corresponding to SGST
collected and paid up to 31 March 2026.

Under the scheme, the Company is entitled to
interest-free loans of 75% of eligible gross VAT for
the first 10 years and 50% for the next 10 years,
based on gross VAT paid on intra-state sales to
end consumers.

vii) Control / Significant influence over subcontractors

The Company enters into contracts with entities for
supply of man power relating to plant operations,
administrative activities and other business-related
activities. These entities through their manpower perform
activities as per the directions of the Company and have
substantial portion of their operations with the Company
and its subsidiaries. The Company does not hold any
ownership interest in these entities. The Company based
on its assessment believes that the Company does not
have practical ability to direct or influence the relevant
activities of these companies and their operations are
immaterial for consolidation purpose.

Notes:

a) Leasehold land aggregating to I 47 crores (31 March 2025: I 47 crores) wherein the lease deed has expired and the
Company has a right to convert the land into freehold land subject to complying with certain conditions. The Company
had executed absolute sale deed for 2,420 acres, amounting I 38 crores, during the previous year and for the balance
land (1,248 acres), submitted application for execution of absolute sale deed which is pending with the Government
of Karnataka. (refer note 4 (h))

b) During the previous year ended 31 March 2025 pursuant to the Shareholders approval dated 16 January 2025, JSW Utkal
Steel Limited, a wholly owned subsidiary of the Company, transferred its under construction slurry pipeline undertaking
to JSW Infrastructure Limited (JSWIL) on a slump sale basis by way of a business transfer agreement. Simultaneously,
the Company also entered into a long term take or pay agreement with JSWIL for the transportation of iron ore from
its captive Nuagaon mine to its proposed facility in Jagatsinghpur in the State of Odisha, using the aforesaid under
construction slurry pipeline. Accordingly, in accordance with the requirements of accounting standard, the necessary
accounting for right of use assets and the resulting lease liabilities would be carried out on the commencement of
lease period i.e. on completion of the said slurry pipeline.

e) The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are
sufficient to meet the obligations related to lease liabilities as and when they fall due.

f) The Company has lease contracts for machinery that contains variable payments amounting to I 982 crores
(31 March 2025: I 723 crores) shown under cost of material consumed/ other expenses.

g) The Company has recognised I 32 crores (31 March 2025: I 19 crores) as rent expenses during the year which pertains
to short term lease/ low value asset which was not recognised as part of asset.

a) Goodwill - I 413 crores - Steel Plant at Raigarh (Cash Generating Unit)

The recoverable amount of steel plant is determined based on a value in use calculation which uses cash flow
projections based on financial budgets approved by the directors, and a pre-tax discount rate of 13.21% per annum.
The discount rate commensurate with the risk specific to the projected cash flow and reflects the rate of return
required by an investor.

Cash flow projections during the budget period are based on estimated steel production till FY 2030-31 and future
prices of steel prices. The projections do not consider growth rate in production and price in terminal year.

Considering past trend of movement in steel prices, the management believes that the following changes in these key
estimates would result into carrying amount exceeding the recoverable amount:

• Decrease in steel prices by 1% would result into change in recoverable value by I 554 crores.

• Decrease in production quantities by 5% would result into change in recoverable value by I 601 crores.

b) Mining Assets includes:

i) Acquisition cost incurred for mines such as stamp duty, registration fees and other such costs have been
capitalised as Intangible assets.

ii) Restoration liabilities estimated through a mining expert and accordingly the Company has recognised/
derecognised assets and corresponding liability (refer note 22(a)).

c) Intangible assets under development include expenditure incurred on development of mining rights and other related
costs for mines which are yet to be made operational and expenditure towards software upgrades.

d) Projects have been grouped into various heads basis nature of the projects.

a) The Company has provided interest bearing security deposit to Sapphire Airlines Private Limited (operator) for availing
charter hire services in future. The security deposit carries weighted average interest rate of 8.85% (31 March 2025:
10%). Maximum amount outstanding during the year is I 319 crores (31 March 2025: I 711 crores).

b) Represents margin money deposits maintained with banks as security, primarily against performance bank
guarantees issued.

c) Includes amount paid under dispute refer note 44(i)(f)

Notes:

a) Maharashtra Electricity Regulation Commission (MERC) had approved levy of additional surcharge of I 1.25/kWh w.e.f.
1 September 2018 to all the consumers sourcing power from Captive power plants. Company had contested the
demand and got a favorable judgement from Appellate Tribunal for Electricity ('APTEL') in March 2019. MERC then filed
special leave petition ('SLP') in the Honourable Supreme Court against APTEL's decision. The Honourable Supreme Court
passed an order in favour of the Company on 10 December 2021 confirming that the captive users are not liable to pay
the additional surcharge leviable under Section 42(4) of the Electricity Act, 2003. The Company has been adjusting the
amount paid under dispute towards 50% of the monthly transmission charges payable by the Company.

Accordingly, I 103 crores (31 March 2025: I 84 crores) has been classified as current and remaining I 214 crores
(31 March 2025: I 336 crores) has been classified as non-current assets.

b) The Company had received a demand from Maharashtra State Electricity Distribution Co. Limited ('MSEDCL') for
Electricity Duty (ED), covering the payment of principal arrears for the recovery of ED from August 2019 to June 2023,
which includes both the non-exempted portion and the exempted portion of ED. The Company submitted a letter to the
Principal Secretary (Energy) requesting an exemption for ED based on the Eligibility Certificate for Phase II. The matter
is currently under review by the Joint Secretary (Energy). To date, the Company has paid the duty on exempted portion
and has recorded these payments as "under protest." Further basis legal opinion obtained, reading of the PSI 2007
scheme and eligibility certificate, the Company is eligible for ED exemption. Accordingly, the amount of I 874 crores
(31 March 2025: 789 crores) has been recorded as non-current assets under prepayment and others.

c) During the year provision of I 4 crores additionally provided.

Notes:

a) The credit period on sales of goods ranges from 7 to 120 days with or without security. The Company charges interest
on receivable beyond credit period in case of certain customers.

b) Before accepting any new customer, the Company uses various parameters to assess the potential customer's credit
quality and defines credit limits by customer. Limits and scoring attributed to customers are reviewed once a year.
Credit risk management regarding trade receivables has been described in note 42.7.

c) The Company does not generally hold any collateral or other credit enhancements over these balances nor does it
have a legal right of offset, against any amounts owed by the Company to the counterparty except for related parties.

d) Trade receivables have been given as collateral towards borrowings details relating to which has been described in
note 20A and note 20B.

e) Trade receivables from related parties' details has been described in note 43.

f) Trade receivables does not include any receivables from directors and officers of the Company.

Nature and purpose of reserve

(i) General reserve

Under the erstwhile Indian Companies Act 1956, a
general reserve was created through an annual
transfer of net income at a specified percentage
in accordance with applicable regulations. The
purpose of these transfers was to ensure that if a
dividend distribution in a given year is more than
10% of the paid-up capital of the Company for that
year, then the total dividend distribution is less than
the total distributable reserves for that year.

Consequent to introduction of Companies Act 2013,
the requirement of mandatory transfer of a specified
percentage of the net profit to general reserve has
been withdrawn and the Company can optionally
transfer any amount from the surplus of profit and
loss to the General reserves. This reserve is utilised
in accordance with the specific provisions of the
Companies Act 2013.

(ii) Retained Earnings

Retained earnings are the profi—ts that the Company
has earned till date, less any transfers to general
reserve, dividends or other distributions paid
to shareholders. Retained earnings includes re¬
measurement loss / (gain) on de—fined benefi—t
plans, net of taxes that will not be reclassif—ied to
Statement of Profi—t and Loss. Retained earnings is
a free reserve available to the Company.

(iii) Equity Instruments through other
comprehensive income

The Company has elected to recognise changes
in the fair value of certain investment in equity
instrument in other comprehensive income. This
amount will be reclassified to retained earnings on
derecognition of equity instrument.

(iv) Effective portion of cash flow hedges

Effective portion of cash flow hedges represents
the cumulative effective portion of gains or
losses arising on changes in fair value of hedging
instruments entered into for cash flow hedges,
which shall be reclassified to profit and loss only
when the hedged transaction affects the profit and
loss, or included as a basis adjustment to the non¬
financial hedged item, consistent with the Company
accounting policies.

(v) Equity settled share-based payment reserve

The Company offers Employee Stock Ownership
Plan (ESOP), under which options to subscribe for
the Company's share have been granted to certain
employees and senior management of JSW Steel
and its subsidiaries. The share-based payment
reserve is used to recognise the value of equity
settled share-based payments provided as part of
the ESOP scheme.

(vi) Capital reserve

Reserve is primarily created on amalgamation as
per statutory requirement. This reserve is utilised
in accordance with the specific provisions of the
Companies Act 2013.

(vii) Capital redemption reserve

Reserve is created for redemption of preference
shares as per statutory requirement. This reserve is
utilised in accordance with the specific provisions of
the Companies Act 2013.

(viii) Securities Premium

Securities Premium is credited when shares are
issued at premium including non-cash transaction.
This reserve is utilised in accordance with the
specific provisions of the Companies Act 2013.

E. Acceptances are availed in foreign currency from offshore branches of Indian banks at weighted average interest rate of
3.37% p.a. The tenure of these acceptances ranges from 180 days to 360 days from the date of shipment / invoice / draw
down. Acceptances backed by Standby Letter of Credit issued under capex project facilities sanctioned by domestic banks.
Acceptances are secured by pari passu first ranking charge on the Equipment supplied under the Capex Letter of Credit.

F. Working capital loans from banks is Nil as on 31 March 2026 (31 March 2025: Nil) are secured by:

i) pari passu first charge by way of hypothecation of stocks of raw materials, finished goods, work-in-progress,
consumables (stores and spares) and book debs / receivables of the Company, both present and future.

ii) pari passu second charge on movable properties and immovable properties forming part of the property, plant and
equipment of the Company, both present and future except such properties as may be specifically excluded.

G. The quarterly returns/ statements filed by the Company with the banks are in agreement with the books of account.

Notes:

a) Intercompany sale transactions netoff

During the year, the Company has netted of domestic sales amounting to 1 1,288 crores (31 March 2025: 1865
crores) against purchases of value added products from the same party to reflect the commercial substance of
such transactions.

b) Grant income recognised under PSI 1993, 2007 and 2013 scheme

The Company units at Dolvi in Maharashtra is eligible for incentives under the respective State Industrial Policy and
have been availing incentives in the form of VAT deferral / CST refunds historically. The Company currently recognises
income for such government grants based on the State Goods & Service Tax rates instead of VAT rates, in accordance
with the relevant notifications issued by the State of Maharashtra post implementation of Goods & Services Tax (GST).

The Company is eligible for claiming incentives for investments made under the Industrial Policy of the Government of
Maharashtra under PSI Scheme 2007. The Company completed the Phase 1 expansion of 3.3 MTPA to 5 MTPA at Dolvi,
Maharashtra in May 2016 and has also received the eligibility certificate for the same. Further, the Company completed
the second phase of expansion from 5 MTPA to 10 MTPA at Dolvi Maharashtra during the financial year 2021-22 and
the Company has also received Eligibility Certificate for this investment relating to Phase 2 capacity expansion from
5 MTPA to 10 MTPA in FY 2022-23. Accordingly, the Company has recognised the cumulative grant income amounting
to 1 714 crores for the year ended 31 March 2026.

Pursuant to receipt of the approval letter from the Directorate of Industries for merger/transfer of incentives relating to
Dolvi Coke Project Limited (merged with JSW Steel Limited in an earlier year), and having concluded that the recognition
criteria under Ind AS 20 - "Accounting for Government Grants and Disclosure of Government Assistance are met, the
Company has recognised grant income of 1 738 crores (1 499 crores net of true up impact of phase 2 expansion
referred above) during the year ended 31 March 2026. Of this, 1 547 crores (1 366 crores net of true up impact of phase
2 expansion referred above) pertains to earlier years.

The State Government of Maharashtra (GOM) vide its Government Resolution (GR) dated 20 December 2018 issued the
modalities for sanction and disbursement of incentives, under GST regime, and introduced certain new conditions /
restrictions for accruing incentive benefits granted to the Company.

The management has evaluated the impact of other conditions imposed and has obtained legal advice on the tenability
of these changes in the said scheme. Based on such legal advice, the Company has also made the representation to
GOM and believes that said Incentives would continue to be made available (including ED Exemption) to the Company
under the GST regime, since the new conditions are not tenable legally and will contest these changes appropriately.
The Company has considered cashflow on FIFO basis accordingly, the future cashflows are discounted to give effect
of the time value of money.

c) Deferred Income GST government

The Company's Vijayanagar unit in Karnataka is eligible for VAT/CST incentives under the New Industrial Policy 2009-14.
As per the Government of Karnataka's notification dated 13 March 2018, these incentives continue under the GST
regime, with benefits now linked to the SGST rate in place of VAT. Accordingly, the Company has recognized the NPV of
interest-free loans corresponding to SGST collected and paid up to 31 March 2026.

Under the scheme, the Company is entitled to interest-free loans of 75% of eligible gross VAT for the first 10 years and
50% for the next 10 years, based on gross VAT paid on intra-state sales to end consumers.

(e) The CSR amount is paid to JSW Foundation, a related party (refer note 43).

(f) As at 31 March 2026, there is no amount yet to be paid in cash towards CSR (31 March 2025: I 108 crores), and
accordingly, no amount has been deposited into the CSR unspent escrow account during the year.

Out of the unspent CSR amount of I 108 crores pertaining to FY 2025, I 64 crores has been utilised during the
year, and the balance of I 44 crores continues to be held in the CSR unspent escrow account in accordance with
applicable provisions.

SAMRUDDHI PLAN 2021

The Board of Directors of the Company at its meeting held on 21 May 2021, formulated the Shri OP Jindal Samruddhi Plan
("OPJ Samruddhi Plan"). At the said meeting, the Board authorised the ESOP Committee for the superintendence of the
ESOP Plan.

The grants would be made to eligible present and future employees on the rolls of the Company as at date of the grant.

The maximum value and share options that can be awarded to eligible employees is calculated by reference to certain
percentage of individuals fixed salary compensation.

These schemes are primary arrangements under which, shared plan service incentives are provided to certain specified
employees of the Company and its subsidiaries in India.

These ESOP scheme options are equity settled and are accounted for in accordance with the requirement applying to
equity settled transactions.

38. Employee share based payment plans

ESOP SCHEME 2016

The Board of Directors of the Company at its meeting held on 29 January 2016, formulated the JSWSL EMPLOYEES STOCK
OWNERSHIP PLAN 2016 ("ESOP Plan"). At the said meeting, the Board authorised the ESOP Committee for the superintendence
of the ESOP Plan.

Three grants would be made under ESOP plan 2016 to eligible employees on the rolls of the Company as at 1 April 2016,
1 April 2017 and 1 April 2018.

During the earlier years, the Company also made supplementary grants under the JSWSL Employees Stock Ownership Plan
2016 to its permanent employees who were on the rolls of the Company and its Indian subsidiaries as on 5 December 2019
as approved by the ESOP committee in its meeting held on 5 December 2019.

The maximum value and share options that can be awarded to eligible employees is calculated by reference to certain
percentage of individuals fixed salary compensation, with a vesting condition that the employee is in continuous
employment with the Company till the date of vesting.

The exercise price is determined by the ESOP committee at a certain discount to the primary market price on the date
of grant.

ESOP PLAN 2021

The Board of Directors of the Company at its meeting held on 21 May 2021, formulated the Shri OP Jindal Employees Stock
Ownership Plan ("OPJ ESOP Plan"). At the said meeting, the Board authorised the ESOP Committee for the superintendence
of the ESOP Plan. Subsequently, the Board at its meeting held on 17 May 2024 authorised the Nomination and Remuneration
Committee ('Committee') in place of ESOP Committee for superintendence of the ESOP Plan.

The grants would be made to eligible present and future employees on the rolls of the Company as at date of the grant.

39. Segment reporting

The Company is in the business of manufacturing steel products having similar economic characteristics, primarily with
operations in India and regularly reviewed by the Chief Operating Decision Maker ('CODM') for assessment of Company's
performance and resource allocation.

The information relating to revenue from external customers and location of non-current assets of its single reportable
segment has been disclosed as below

40. Employee benefits

a) Defined contribution plan

The Company operates defined contribution retirement benefit plans for all qualifying employees. Under these plans, the
Company is required to contribute a specified percentage of payroll costs.

The Company's contribution to provident fund & family pension scheme recognised in statement of profit and loss of I 86
crores (31 March 2025: I 79 crores) (included in note 33).

b) Defined benefit plans

The Company sponsors funded defined benefit plans for all qualifying employees. The level of benefits provided depends
on the member's length of service and salary at retirement age.

The gratuity plan is covered by The Code on Social Security, 2020. Under the gratuity plan, the eligible employees are
entitled to post-retirement benefit at the rate of 15 days' salary for each year of service until the retirement age of 58, 60
and 62, without any payment ceiling.

The fund is managed by JSW Steel limited Employee Gratuity Trust and it is governed by the Board of trustees. The Board of
trustees are responsible for the administration of the plan assets and for defining the investment strategy.

The plans in India typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk
and salary risk.

ii) Other long term benefits:

a) Compensated Absences

Under the compensated absences plan, leave encashment is payable to certain eligible employees on separation
from the company due to death, retirement, superannuation or resignation. Employees are entitled to encash
leave while serving the company at the rate of daily salary, as per current accumulation of leave days. The
company also has leave policy for certain employees to compulsorily encash unavailed leave on 31 December
every year at the current basic salary.

b) Long Service Award

The Company has a policy to recognise the long service rendered by employees and celebrate their long
association with the Company. This scheme is called - Long Association of Motivation, Harmony & Excitement
(LAMHE). The award is paid at milestone service completion years of 10, 15, 20 and 25 years.

41. Financial Instruments

41.1 Capital risk management

The Company being in a capital intensive industry, its objective is to maintain a strong credit rating, healthy capital ratios
and establish a capital structure that would maximise the return to stakeholders through optimum mix of debt and equity.

The Company's capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on its
borrowings and strategic acquisitions. The principal source of funding of the Company has been, and is expected to continue
to be, cash generated from its operations supplemented by funding from bank borrowings and the capital markets. The
Company is not subject to any externally imposed capital requirements.

The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest
cost and elongate the maturity of its debt portfolio, and closely monitors its judicious allocation amongst competing capital
expansion projects and strategic acquisitions, to capture market opportunities at minimum risk.

The Company monitors its capital using gearing ratio, which is net debt, divided to total equity. Net debt includes, interest
bearing loans and borrowings less cash and cash equivalents, bank balances other than cash and cash equivalents and
current investments.

42 Fair value hierarchy of financial instruments

The carrying amounts of trade receivables, trade payables, capital creditors, cash and cash equivalents, other bank
balances, other financial assets and other financial liabilities (other than those specifically disclosed) are considered to be
the same as their fair values, due to their short term nature.

A significant part of the financial assets is classified as Level 1 and Level 2. The fair value of these assets is marked to an
active market or based on observable market data. The financial assets carried at fair value by the Company are mainly
investments in equity instruments, debt securities and derivatives, accordingly, any material volatility is not expected.

42.1 Financial risk management

The Company has a Risk Management Committee established by its Board of Directors for overseeing the Risk Management
Framework and developing and monitoring the Company's risk management policies. The risk management policies are
established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying and
mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency. Risk
management policies and systems are reviewed regularly to reflect changes in the market conditions and the Company's
activities to provide reliable information to the Management and the Board to evaluate the adequacy of the risk management
framework in relation to the risk faced by the Company.

The risk management policies aims to mitigate the following risks arising from the financial instruments:

• Market risk

• Credit risk; and

• Liquidity risk

• Equity price risk

42.2 Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in the market prices. The Company is exposed in the ordinary course of its business to risks related to changes in foreign
currency exchange rates, commodity prices and interest rates.

The Company seeks to minimise the effects of these risks by using derivative and non-derivative financial instruments to
hedge risk exposures. The use of financial derivatives and non-derivative financial instruments is governed by the Company's
policies approved by the Board of Directors, which provide written principles on foreign exchange risk, interest rate risk,
credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity.
Compliance with policies and exposure limits is reviewed by the Management and the internal auditors on a continuous
basis. The Company does not enter into or trade financial instruments, including derivatives for speculative purposes.

42.3 Foreign currency risk management

The Company's functional currency is Indian Rupees (?). The Company undertakes transactions denominated in foreign
currencies; consequently, exposure to exchange rate fluctuations arise. Volatility in exchange rates affects the Company's
revenue from export markets and the costs of imports, primarily in relation to raw materials. The Company is exposed to
exchange rate risk under its trade and debt portfolio.

Adverse movements in the exchange rate between the Rupee and any relevant foreign currency result's in increase in
the Company's overall debt position in Rupee terms without the Company having incurred additional debt and favourable
movements in the exchange rates will conversely result in reduction in the Company's receivables in foreign currency.

In order to hedge exchange rate risk, the Company has a policy to hedge cash flows up to a specific tenure using forward
exchange contracts, options and other non-derivative financial instruments like long-term foreign currency borrowings
and acceptances. At any point in time, the Company hedges its estimated foreign currency exposure in respect of forecast
sales over the following 6 months using derivative instruments. Forecasted sales beyond the period of 6 months are
hedged using non-derivative financial instruments basis the tenure of the specific long term foreign currency borrowings.
In respect of imports and other payables, the Company hedges its payables as when the exposure arises. Short term
exposures are hedged progressively based on their maturity.

All hedging activities are carried out in accordance with the Company's internal risk management policies, as approved by
the Board of Directors, and in accordance with the applicable regulations where the Company operates.

The Company has also considered the effect of changes, if any, in both counterparty credit risk and own credit risk while
assessing hedge effectiveness and measuring hedge ineffectiveness. The Company continues to believe that there is no
impact on effectiveness of its hedges.

The carrying amounts of the Company's monetary assets and monetary liabilities at the end of the reporting year are
as follows:

42.4 Commodity price risk:

The Company's revenue is exposed to the market risk of price fluctuations related to the sale of its steel products. Market
forces generally determine prices for the steel products sold by the Company. These prices may be influenced by factors
such as supply and demand, production costs (including the costs of raw material inputs) and global and regional economic
conditions and growth. Adverse changes in any of these factors may reduce the revenue that the Company earns from the
sale of its steel products.

The Company is subject to fluctuations in prices for the purchase of iron ore, coking coal, ferro alloys, zinc, scrap and other
raw material inputs. The Company purchased primarily all of its iron ore and coal requirements at prevailing market rates
during the year ended 31 March 2026.

The Company aims to sell the products at prevailing market prices. Similarly, the Company procures key raw materials like
iron ore and coal based on prevailing market rates as the selling prices of steel prices and the prices of input raw materials
move in the same direction.

Commodity hedging is used primarily as a risk management tool to secure the future cash flows in case of volatility by
entering into commodity forward and options contracts.

Hedging commodity is based on its procurement schedule and price risk. Commodity hedging is undertaken as a risk
offsetting exercise and, depending upon market conditions hedges, may extend beyond the financial year. The Company is
presently hedging maximum up to 100% of its consumption.

The following table details the Company's sensitivity to a 5% movement in the input price of iron ore and coking coal. The
sensitivity analysis includes only 5% change in commodity prices for quantity sold or consumed during the year, with all
other variables held constant. A positive number below indicates an increase in profit or equity where the commodity prices
decrease by 5% and vice-versa.

42.5 Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating
interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The
borrowings of the Company are principally denominated in rupees and US dollars with a mix of fixed and floating rates of
interest. The Company hedges its US dollar interest rate risk through interest rate swaps to reduce the floating interest rate
risk. The Company has exposure to interest rate risk, arising principally on changes in base lending rate and LIBOR rates.
The Company uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements
for its day to day operations like non-convertible bonds and short term loans. The risk is managed by the Company by
maintaining an appropriate mix between fixed and floating rate borrowings, and by the use of interest rate swap contracts.
Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most
cost-effective hedging strategies are applied.

Interest rate benchmark reform

The company has transitioned its existing LIBOR denominated borrowings to Alternative Reference Rates (ARRs) during
the previous year. The transition was necessitated in view of the cessation of the LIBOR as a reference benchmark for
borrowings in international markets.

Derivative contract: There were no LIBOR linked derivative contract as of 31 March 2026.

42.6 Equity Price risk:

The Company is exposed to equity price risk arising from equity investments (other than subsidiaries and joint ventures,
which are carried at cost).

Equity price sensitivity analysis:

The sensitivity analysis below has been determined based on the exposure to equity price risk at the end of the
reporting period.

I f equity prices of the investments increase/ decrease by 5%, other comprehensive income for the year ended 31 March
2026 would increase/ decrease by I 201 crores (31 March 2025: I 230 crores).

42.7 Credit risk management:

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the
Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient
collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

The Company is exposed to credit risk for trade receivables, cash and cash equivalents, investments, other bank balances,
loans, other financial assets, financial guarantees and derivative financial instruments.

Moreover, given the diverse nature of the Company's business trade receivables are spread over a number of customers
with no significant concentration of credit risk. No single customer (other than the Group Companies) accounted for 10% or
more of the trade receivables in any of the years presented. The history of trade receivables shows a negligible provision
for bad and doubtful debts. Therefore, the Company does not expect any material risk on account of non-performance by
any of the Company's counterparties. The assessment is carried out considering the segment of customer, impact seen
in the demand outlook of these segments and the financial strength of the customers in respect of whom amounts are
receivable. Basis this assessment, the allowance for doubtful trade receivables is considered adequate.

The sensitivity analyses below have been determined based on the exposure to interest rates for floating rate liabilities,
after the impact of hedge accounting, assuming the amount of the liability outstanding at the year-end was outstanding
for the whole year.

If interest rates had been 100 basis points higher / lower and all other variables were held constant, the Company's profit
for the year ended 31 March 2026 would decrease / increase by I 470 crores (31 March 2025: decrease / increase by I 383
crores). This is mainly attributable to the Company's exposure to interest rates on its variable rate borrowings.

For current investments, counterparty limits are in place to limit the amount of credit exposure to any one counterparty.
This, therefore, results in diversification of credit risk for Company's mutual fund and bond investments. For derivative
and financial instruments, the Company attempts to limit the credit risk by only dealing with reputable banks and
financial institutions.

The carrying value of financial assets represents the maximum credit risk. The maximum exposure to credit risk was
I 46,867 crores as at 31 March 2026 and I 44,492 crores as at 31 March 2025, being the total carrying value of trade
receivables, balances with bank, bank deposits, current investments, loans, derivative assets and other financial assets.

I n respect of financial guarantees provided by the Company to banks and financial institutions, the maximum exposure
which the Company is exposed to is the maximum amount which the Company would have to pay if the guarantee is called
upon. Based on the expectation at the end of the reporting period, the Company considers that it is more likely than not that
such an amount will not be payable under the guarantees provided.

Receivables are deemed to be past due or impaired with reference to the Company's normal terms and conditions of
business. These terms and conditions are determined on a case to case basis with reference to the customer's credit
quality and prevailing market conditions. The Company based on past experiences does not expect any material loss on its
receivables and hence no provision is deemed necessary on account of expected credit loss ('ECL').

The credit quality of the Company's customers is monitored on an ongoing basis and assessed for impairment where
indicators of such impairment exist. The Company uses simplified approach (i.e., lifetime expected credit loss model) for
impairment of trade receivables/ contract assets. The solvency of the debtor and their ability to repay the receivable is
considered in assessing receivables for impairment. Where receivables have been impaired, the Company actively seeks to
recover the amounts in question and enforce compliance with credit terms.

For all other financial assets, if credit risk has not increased significantly, 12-month expected credit loss is used to provide
for impairment loss. However, if credit risk has increased significantly, lifetime expected credit loss is used.

42.8 Liquidity risk management

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid
funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires
funds both for short term operational needs as well as for long term capital expenditure growth projects. The Company
generates sufficient cash flow for operations, which together with the available cash and cash equivalents and short term
investments provide liquidity in the short-term and long-term. The Company has acceptances in line with supplier's financing
arrangements which might invoke liquidity risk as a result of liabilities being concentrated with few financial institutions
instead of a diverse group of suppliers. The Company has established an appropriate liquidity risk management framework
for the management of the Company's short, medium and long-term funding and liquidity management requirements.
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities,
by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets
and liabilities.

The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with
agreed repayment Years and its non-derivative financial assets. The tables have been drawn up based on the undiscounted
cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include
both interest and principal cash flows.

To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end
of the reporting year. The contractual maturity is based on the earliest date on which the Company may be required to pay.

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

2. The Company has recognised an expenses of I 4 crores (31 March 2025: I 4 crores) towards employee stock options
granted to Key Managerial Personnel. The same has not been considered as managerial remuneration of the current
year as defined under Section 2(78) of the Companies Act, 2013 as the options have not been exercised.

3. The Independent Non-Executive Directors are paid remuneration by way of commission and sitting fees. The
commission payable to the Non-Executive Directors (in case of Nominee Director, the commission is paid to the
respective institution to which the Nominee Director represents) is based on the number of meetings of the Board
attended by them and their Chairmanship/Membership of Audit Committee during the year, subject to an overall ceiling
of 1% of the net profits approved by the Members. The Company pays sitting fees at the rate of I 50,000 for meeting
of the Board, Audit, Nomination & Remuneration Committee, Hedging and Project Review-committees and I 25,000 for
meetings of the other committees attended by them. The amount paid to them by way of commission and sitting fees
during current year is I 8 crores (31 March 2025: I 6 crores), which is not included above.

4. Terms and conditions
Sales:

The sales to related parties are made on terms equivalent to those that prevail in arm's length transactions and in the
ordinary course of business. Sales transactions are based on prevailing price lists and memorandum of understanding
signed with related parties. For the year ended 31 March 2026, the Company has not recorded any allowance for doubtful
debts relating to amounts owed by related parties.

Purchases:

The purchases from related parties (including services) are made on terms equivalent to those that prevail in arm's length
transactions and in the ordinary course of business. Purchase transactions are made on normal commercial terms and
conditions and market rates.

Payment of brand fees

The Company makes branding fees payment to a related party for use of its brand @ 0.25% of annual turnover subject to
actual expenditure incurred by the related party towards brand development, promotion and other related cost. The terms
of the arrangement are those that prevail in arm's length transactions and in ordinary course of business. The royalty
agreement requires the Group to make payment in 10 days from receipt of the invoice.

Loans to overseas subsidiaries:

The Company had given loans to subsidiaries for general corporate purposes. The loan balance as on 31 March 2026 was
I 13,680 crores (31 March 2025: I 11,201 crores). These loans are unsecured and carry an interest rate ranging from LIBOR
500-565 basis points (in case of floating interest rate) and 5.9% to 7.5% (in case of fixed interest rate) and repayable
within a period of three to five years. The loan has been utilized by the subsidiary for the purpose it was obtained. For the
year ended 31 March 2026, the Company has not recorded any impairment on loans due from the overseas subsidiaries (31
March 2025: I 3,758 crores).

Loans to domestic subsidiaries:

The Company had given loans to subsidiaries for general corporate purposes. The loan balance as on 31 March 2026 was
I 7,264 crores (31 March 2025: I 5,021 crores). These loans are unsecured and carry an interest rate ranging from 8.35%
to 13% and repayable within a period of one to ten years. The loan has been utilized by the subsidiary for the purpose it
was obtained. For the year ended 31 March 2026, the Company has not recorded any impairment on loans due from the
domestic subsidiaries. (31 March 2025: Nil)

Guarantees to subsidiaries/joint venture:

Guarantees provided to the lenders of the subsidiaries/joint venture are for availing term loans and working capital facilities
from the lender banks.

The transactions other than mentioned above are also in the ordinary course of business and at arms' length basis except
sale of asset and buyback.

a) Excise duty cases includes disputes pertaining to availment of CENVAT credit, valuation methodologies, classification
of gases under different chapter heading.

b) Custom duty cases includes disputes pertaining to import of Iron ore fines and lumps under different chapter
headings, utilisation of SHIS licenses for clearance of imported equipment, payment of customs duty Steam Coal
through Krishnapatnam Port and anti-dumping duty on Met Coke used in Corex.

c) Income Tax cases includes disputes pertaining to transfer pricing and other matters.

d) Sales Tax/ VAT/ Special Entry tax/ Electricity duty/ Goa Rural cess cases includes disputes pertaining to demand of
special entry tax in Karnataka and demand of cess by department of transport in Goa.

e) Service Tax/ Goods & Service tax cases includes disputes pertaining to availment of service tax credit on ineligible
services, denial of credit distributed as an ISD, service tax on railway freight not taken as per prescribed documents.

f) i ) Department of Mines, Odisha - Demand under Rule 12A(2), Jajang Iron Ore Block: The Deputy Director of Mines,

Joda, has raised a demand of I 1,473 crores for alleged shortfall in dispatch for the 5^th year of the MDPA (27 June
2024 to 26 June 2025) under Rule 12A(2) of the Mineral Concession Rules, 2016. JSW Steel Limited has challenged
the demand before the Hon'ble Orissa High Court (W.P. (C) No. 23792 of 2025); the Court has passed an interim
order directing that no precipitative action be taken, which remains in force. Based on legal advice, the Company
believes it has strong grounds to contest the demand; accordingly, no provision has been made and the amount
is disclosed as a contingent liability.

ii) Claims by Suppliers, other parties and Government includes quality/ shortfall claims issues raised by suppliers
and others.

iii) During the year, the Government of Karnataka invoked and appropriated Performance Bank Guarantees
aggregating to I 128 crores in respect of an alleged shortfall in Minimum Dispatch Requirement under the Mine
Development and Production Agreement for earlier financial years. The Company has challenged the said action
before the Hon'ble Karnataka High Court. Based on external legal opinion and judicial precedents, management
is of the view that the likelihood of any outflow is remote. However considering that the Bank Guarantees have
already been encashed by the department, the amount appropriated has been disclosed as a contingent liability.

iv) Levies by local authorities - Statutory cases includes disputes pertaining to payment of water charges and
enhanced compensation.

g) Levies relating to Energy / Power Obligations cases includes disputes pertaining to uninterrupted power charges by
Karnataka Power Transmission Company Ltd., belated payment surcharge, claims for the set off of renewable power
obligations against the power generated in its captive power plants and dues relating to additional surcharge imposed
on captive consumption by Maharashtra State Electricity Distribution Company Ltd.

h) The Government introduced new requirements and issued notices to the Company in relation to renewable consumption
obligations. Based on legal opinion, the said requirement is inconsistent with the provisions of the Electricity Act, and
the Company has challenged the same before the Hon'ble High Court and obtained an interim stay on the notices.
Accordingly, based on management assessment, the exposure is assessed as remote.

i) There are several other cases which has been determined as remote by the Company and hence not been
disclosed above.

j) The Deputy Commissioner of GST State Tax (Enforcement Unit, Orissa) had issued show cause notice (SCN) in the
previous years for the period upto March 2022, alleging that the Company has wrongfully and illegally transferred
the unutilised Input Tax Credit to the Company's ISD registration in Mumbai. The Company filed its reply to the SCN,
however, the GST Authorities (Department) raised demand for tax of I 3,004 crores including interest and penalty
thereon. The Company filed an appeal before the Additional Commissioner of State Tax (First Appellate Authority) and
the First Appellate Authority has confirmed the order passed by the GST Authorities and disposed off, two of the three
appeals. Aggrieved by the said appellant order, the Company has submitted a letter of Intent to file appeal before
the Appellate Tribunal. The Company, basis the legal opinion obtained, has evaluated the matter and concluded that
the outflow of resources is remote and accordingly, no provision is made in the financial statement. Interest of I 217
crores is considered possible and included above.

In response to a petition filed by the iron ore mine owners and purchasers (including the Company) contesting the levy of
Forest Development Tax (FDT) on iron ore on the ground that the State does not have jurisdiction to legislate in the field of
major minerals which is a central subject, the Honourable High Court of Karnataka vide its judgement dated 3 December
2015 directed refund of the entire amount of FDT collected by Karnataka State Government on sale of iron ore by private
lease operators and National Mineral Development Corporation Limited (NMDC). The Karnataka State Government has filed
an appeal before the Supreme Court of India ("SCI"). SCI has not granted stay on the judgement but stayed refund of
FDT. The matter is yet to be heard by SCI. Based on merits of the case and supported by a legal opinion, the Company
has not recognised provision for FDT of I 1,043 crores (including paid under protest - I 665 crores) and treated it as a
contingent liability.

The State of Karnataka on 27 July 2016, has amended Section 98-A of the Forest Act retrospectively substituting the levy
as Forest Development Fee (FDF) instead of FDT. In response to the writ petition filed by the Company and others, the
Honourable High Court of Karnataka has vide its order dated 4 October 2017, held that the amendment is ultra-vires the
Constitution of India and directed the State Government to refund the FDF collected. The State Government has filed an
appeal before the SCI, and based on merits of the case duly supported by a legal opinion and a favorable order from the High
Court, the Company has not recognised provision for FDF amount of I 4,722 crores (including paid under protest - I 255
crores) pertaining to the private lease operators & NMDC and treated it as contingent liability.

(c) The Company has given guarantees aggregating I 1,049 crores (31 March 2025: I 1,049 crores) on behalf of subsidiaries
to Commissioner of Customs in respect of goods imported and against EPCG Licences

(d) The Company has entered into annual purchase agreements with its overseas subsidiary wherein the Company
has committed purchase of certain quantities of raw materials. The prices for such contracts are linked to
underlying commodity indices. and the Company may incur penalties incase of shortfall in purchases against such
committed quantities.

(e) The Company in the normal course of business, has entered into long term commercial agreements with certain
suppliers wherein the Company has committed purchase of certain quantities of material/ avail certain services/
utilities which are in the nature of minimum take or pay (MTOP). As per the terms and conditions of the contract
provisions if any, are recognized in the financial statements in case the minimum guarantee of offtake are not fulfilled.
However, in case of a supplier, the company has carried an assessment of these shortfall in offtake quantities and
concluded that no provision is required to be recognised in the books of accounts based on precedence that the
waiver has been received in the earlier years.

Estimate of values of the businesses and assets by independent external values based on cash flow projections/
implied multiple approach. In making the said projections, reliance has been placed on estimates of future prices of iron
ore and coal, mineable resources, and assumptions relating to discount rate, future margins, increase in operational
performance on account of committed capital expenditure and significant improvement in capacity utilisation and
margins based on forecasts of demand in local markets and availability of infrastructure facilities for mines.

(b) Equity shares of JSW Bengal Steel Limited, a subsidiary (carrying amount of investments - 31 March 2026: I 508 crores
(31 March 2025: I 508 crores) - Evaluation of the status of its potential plan to sale partial land to JSW Energy Limited
and construction of business park on remaining land and valuation of Land by independent registered valuer.

(c) Equity shares of JSW Jharkhand Steel Limited, a subsidiary (carrying amount - 31 March 2026: I 46 crores; 31 March
2025: I 103 crores) - Evaluation of the status of its integrated Steel Complex to be implemented in phases at Ranchi,
Jharkhand by the said subsidiary underlying carrying value of assets and the plans for commencing construction of
the said complex. The Company has during the year recognised impairment provision of I 58 crores (31 March 2025:
Nil) as disclosed in note 36.

(d) I nvestment (carrying amount - 31 March 2026: Nil; 31 March 2025: Nil) and loan (carrying amount - 31 March 2026:
I 959 crores; 31 March 2025: I 177 crores) relating to JSW Natural Resources Limited. Assessment of minable
reserves by independent experts based on the plans to commence operations after mining arrangements in place and
infrastructure is being developed. The Company has during the year recognised impairment provision of Nil (impairment
provisioning on equity investment Nil (31 March 2025: I 4 crores); and loans given Nil (31 March 2025: I 78 crores).

(e) Preference shares of JSW Realty & Infrastructure Private Limited, a subsidiary (carrying amount - 31 March 2026:
I 231 crores; 31 March 2025: I 212 crores) and loans (carrying amount - 31 March 2026: I 147 crores; 31 March 2025:
I 138 crores). Preference Shares are Fair Valued Through Profit and loss based on Valuation by independent expert and
in case of loans based on estimated cash flow projection.

49. a) The Board of Directors of the Company at their meeting held on 17 October 2025 considered and approved the Scheme

of Amalgamation pursuant to Section 230-232 and other applicable provisions of the Companies Act 2013, providing
for amalgamation of its wholly owned subsidiaries Amba River Coke Limited, Monnet Cement Limited and JSW Retail and
Distribution Limited with the Company. During the year ended 31 March 2026, the Company has received directions in
respect of its application filed with the National Company Law Tribunal ("NCLT"). The Company has filed the petition for
approval of Scheme of Amalgamation with NCLT on 2 May 2026, post complying with the NCLT directions. The requisite
regulatory and other approvals are awaited. Accordingly, no impact is given on account of this in the Standalone
Financial for the year ended 31 March 2026.

b) The Board of Directors of the Company at their meeting held on 3 December 2025 considered and approved the Scheme
of Amalgamation ("Scheme") pursuant to Section 230-232 and other applicable provisions of the Companies Act 2013,
providing for amalgamation of its subsidiary Piombino Steel Limited with the Company. Pursuant to the Board approval,
the Scheme has been filed with the concerned Stock Exchanges for requisite approvals. The Stock Exchanges have
issued no adverse observation letter for the Scheme on 1 April 2026 and the Company has subsequently filed an
application with NCLT on 6 May 2026 seeking directions in connection with the Scheme. The requisite regulatory
and other approvals are awaited. Accordingly, no impact is given on account of this in the Statement of Standalone
Financial for the year ended 31 March 2026.

50. The Company does not have material transactions with the struck off companies during the current & previous year.

51. Previous year figures have been re-grouped /re-classified wherever necessary including those as required in keeping with

revised Schedule III amendments.

i. The Government has notified the Code on Social Security, 2020 ("Social Security Code"); the Occupational Safety, Health
and Working Conditions Code, 2020; the Industrial Relations Code, 2020 and the Code on Wages, 2019 (collectively,
the "Labour Codes") on 21 November 2025. The Ministry of Labour & Employment notified Central Rules on 8 May 2026
however State Rules are yet be notified. The Company has evaluated the impact of increased employee benefits
obligations arising from the implementation of the Labour Codes based on it's best judgment in consultation with
external experts. Accordingly, the Company has recognized financial impacts of I 477 crore in accordance with Ind AS
19 - 'Employee Benefits'.

ii. The Company had submitted a notice for surrender of Jajang iron ore mining lease located in the district of Keonjhar,
Odisha due to un-economic operations. Pursuant to the approval of the Final Mine Closure Plan by Indian Bureau of
Mines (IBM), Ministry of Mines on 9 October 2024, the Company had submitted an application for surrender of Jajang
Iron ore Block. Accordingly, the Company had recognised a net provision amounting to I 342 crores, pertaining to the
underlying carrying value of assets, inventory (excluding net impact of net realisable value provided for on planned
dispatches) and site restoration liability. An implementation certificate of the Final Mine Closure Plan was issued by
IBM on 7 April 2025, which, as a process of surrender, has been submitted to the Govt. of Odisha on 10 April 2025.

i ii. The Company pursuant to a detailed feasibility study concluded that the Banai and Bhalumuda Coal Block was not
suitable from the techno-commercial perspective and decided not to go ahead with the investment to develop the
Coal Block. The coal block was terminated by Ministry of Coal. Accordingly, the bid security forfeiture and related
expenditure amounting to I 103 crores for the year ended on 31 March 2025 were charged off to the Statement of
Profit and Loss.

i v. During the year ended 31 March 2025, the Company transferred its Salav unit having a Direct Reduced Iron (DRI)
capacity of 0.9 MTPA to JSW Green Steel Limited (JSW Green), a wholly owned subsidiary of the Company, at a cash
consideration of I 2,233 crores determined by an independent expert resulting into a gain of I 1,449 crores and has
also entered into a job work arrangement with JSW Green for a period of one year for conversion of iron ore lumps/
pellets into DRI (transaction). This has resulted into the entire transaction being classified as a sale and leaseback.
Considering the management plans to set up a green steel facility at JSW Green by expanding capacity from existing
0.9 MTPA to 4 MPTA in phases in line with Company's growth strategy, Company estimate that the job work arrangement
may continue for a period of 3 years and has accordingly recognised right of use assets and lease liability of I 55
crores and I 184 crores, respectively.

v. i ncludes gain recorded of I 1,454 crores for the year ended on 31 March 2025 pursuant to buyback of shares by
Piombino Steel Limited, a subsidiary of the Company.

vi. includes impairment provision of I 3,762 crores for the year ended on 31 March 2025, towards loans given to subsidiaries
in US and in Mauritius based on recoverability assessment carried out for respective underlying businesses.

55. There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund
by the Company.

56. Events occurring after balance sheet:

a) On 14 May 2026, the board of directors recommended a final dividend of I 7.10 (Rupees Seven and paise ten only) per
equity share of I 1 each to be paid to the shareholders for the financial year 2025-26, which is subject to approval by
the shareholders at the Annual General Meeting to be held on 24 July 2026. If approved, the dividend would result in
cash outflow of I 1,736 crores.

b) The Board of Directors of the Company at their meeting held on 14 May 2026 considered and approved Scheme of
Amalgamation pursuant to Section 230-232 and other applicable provisions of the Companies Act, 2013, providing for
amalgamation of BMM Ispat Limited, a related party, with the Company. The amalgamation is subject to regulatory and
other approvals. Accordingly, no impact is given on account of this in the Financial for the year ended 31 March 2026.

57. Application of new and amended standards

The Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. The MCA vide notification dated 1 May 2025 and
13 August 2025 notified the Companies (Indian Accounting Standards) Amendment Rules, 2025 and Second Amendment Rules,
2025, which amended certain accounting standards effective for annual reporting periods beginning on or after 1 April 2025:

a) Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants -
Amendments to Ind AS 1

As a result of the adoption of the amendments to Ind AS 1, the Company revised its accounting policy for the
classification of borrowings. Borrowings are classified as current liabilities unless, at the end of the reporting period,
the Company has a right to defer settlement of the liability for at least 12 months after the reporting period. Covenants
that the Company is required to comply with, on or before the end of the reporting period, are considered in classifying
loan arrangements with covenants as current or non-current. Covenants that the Company is required to comply with
after the reporting period do not affect the classification. This new policy did not result in a change in the classification
of the Company's borrowings.

b) Supplier Finance Arrangements - Amendments to Ind AS 7 and Ind AS 107

These amendments require clarify the characteristics of supplier finance arrangements and require additional
disclosure of such arrangements. The disclosure requirements in the amendments are intended to assist users of
financial statements in understanding the effects of supplier finance arrangements on an entity's liabilities, cash
flows and exposure to liquidity risk. As a result of implementing the amendments, the Company has provided additional
disclosures about its supplier finance arrangement. Refer to note 26.

(c) Lack of Exchangeability - Amendments to Ind AS 21

The amended Ind AS 21 The Effects of Changes in Foreign Exchange Rates to specify how an entity should assess
whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is
lacking. The amendments also require disclosure of information that enables users of its financial statements to
understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the
entity's financial performance, financial position and cash flows. These amendments did not have any material impact
on the amounts recognised in prior periods and are not expected to significantly affect the current or future period.

58. Standards issued but not yet effective

Treatment to Lendor Waiver - Amendments to Ind AS 1 - This amendment also includes specific provisions that will take
effect for reporting periods beginning on or after 1 April 2026, retrospectively. These provisions relate to the treatment
of lender waivers granted after the reporting date but before the financial statements are approved for issue. Under the
amended requirements, such waivers will no longer be permitted to be considered for the purpose of classification of loans.

The Company does not expect this amendment to have an impact on its financial statements.

59. The Company has been maintaining its books of accounts in the SAP which has feature of recording audit trail of each and
every transaction, creating an edit log of each change made in books of account along with the date when such changes
were made and ensuring that the audit trail cannot be disabled, throughout the year as required by proviso to sub rule (1)
of rule 3 of The Companies (Accounts) Rules, 2014 known as the Companies (Accounts) Amendment Rules, 2021. Further,
there are no instance of audit trail feature being tampered with.

Additionally, the audit trail of prior year 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 year.

60. The Hon'ble Supreme Court had pronounced the judgment dated 2 May 2025 rejecting the Company's resolution plan for
Bhushan Power & Steel Limited ("BPSL"), a subsidiary of the Company, and directing the refund to the Company of amounts,
paid to financial creditors, operational creditors of BPSL and equity contribution made in BPSL, basis the Hon'ble Supreme
Court Order dated 6 March 2020. The Hon'ble Supreme Court had also directed that liquidation proceedings be initiated by
National Company Law Tribunal ("NCLT") for BPSL under Section 33(1) of Insolvency Bankruptcy Code ("IBC"). The Hon'ble
Supreme Court, in its further order dated 26 May 2025, had directed that status quo be maintained in respect of proceedings
initiated before NCLT for implementation of the judgement, pending the disposal of the Company's review petition.

The Company, Committee of Creditors and the Resolution Professional filed a review petition before the Hon'ble Supreme
Court challenging the judgment dated 2 May 2025. The Hon'ble Supreme Court vide its order dated 31 July 2025 allowed the
review petition by Company and recalled its earlier judgment dated 2 May 2025. Post detailed fresh hearings of submissions
made by the Company, Committee of Creditors, Resolution Professional, Erstwhile Promoters and certain Operational
Creditors, the Hon'ble Supreme Court pronounced judgement dated 26 September 2025 wherein all the appeals filed by
the Erstwhile Promoters and certain Operational Creditors were dismissed and the judgment of the National Company Law
Appellate Tribunal dated 17 February 2020 approving the Company's resolution plan for BPSL was upheld.