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JSW Steel Ltd

BSE Code : 500228 | NSE Symbol : JSWSTEEL | ISIN:INE019A01038| SECTOR : Steel |

NSE BSE
 
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350.50

-8.60 (-2.39%) Volume 280564

27-Nov-2020 EOD

Prev. Close

359.10

Open Price

359.25

Bid Price (QTY)

-/-()

Offer Price (QTY)

-/-()

 

Today’s High/Low 362.05 - 347.60

52 wk High/Low 362.20 - 132.50

Key Stats

MARKET CAP (RS CR) 84723.58
P/E 43.76
BOOK VALUE (RS) 164.5349402
DIV (%) 200
MARKET LOT 1
EPS (TTM) 8.01
PRICE/BOOK 2.13024661858418
DIV YIELD.(%) 0.71
FACE VALUE (RS) 1
DELIVERABLES (%) 14.35
4

News & Announcements

27-Nov-2020

Hindalco Industries Ltd Slides 1.15%

25-Nov-2020

JSW Steel Ltd - JSW Steel Limited - Acquisition

24-Nov-2020

JSW Steel to acquire 26.45% stake in JSW Vallabh Tinplate

24-Nov-2020

JSW Steel Ltd - Announcement under Regulation 30 (LODR)-Acquisition

24-Nov-2020

JSW Steel to acquire 26.45% stake in JSW Vallabh Tinplate

11-Nov-2020

JSW Steel records 7% growth in crude steel production in Oct

28-Oct-2020

JSW Steel completes acquisition of Asian Colour Coated Ispat

19-Oct-2020

JSW Steel update on resolution plan for Asian Colour Coated Ispat

Corporate Actions

Bonus
Splits
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Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
APL Apollo Tubes Ltd 533758 APLAPOLLO
ArcelorMittal Nippon Steel India Ltd 500627 ESTL
Indian Seamless Metal Tubes Ltd(merged) 531362
Jindal Saw Ltd 500378 JINDALSAW
Jindal Stainless (Hisar) Ltd 539597 JSLHISAR
Jindal Stainless Ltd 532508 JSL
JSW ISPAT Steel Ltd(Merged) 500305 JSWISPAT
Steel Authority of India Ltd 500113 SAIL
Surya Roshni Ltd 500336 SURYAROSNI
Tata Steel BSL Ltd 500055 TATASTLBSL
Tata Steel Ltd 500470 TATASTEEL
Tata Steel Ltd Partly Paid Up 890144 TATASTLPP

Share Holding

Category No. of shares Percentage
Total Foreign 715761836 29.61
Total Institutions 141276639 5.84
Total Govt Holding 12375000 0.51
Total Non Promoter Corporate Holding 110503044 4.57
Total Promoters 1065372540 44.07
Total Public & others 371931381 15.39
Total 2417220440 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About JSW Steel Ltd

JSW Steel Ltd, the flagship company of the JSW Group, is an integrated steel manufacturer in India with an installed steel-making capacity of 18 million tonnes per annum (MTPA). The company offers the entire gamut of steel products - Hot Rolled, Cold Rolled, Galvanized, Galvalume, Pre-painted Galvanised, Pre-painted Galvalume, TMT Rebars, Wire Rods & Special Steel Bars, Rounds & Blooms. They have manufacturing facilities at Vijayanagar in Karnataka, Dolvi, Vasind, Kalmeshwar, Tarapur in Maharashtra, Salem in Tamil Nadu and Texas in USA. JSW Steel's plant at Vijayanagar in Karnataka, is the largest single location steel producing facility in the country with a capacity of 12 MTPA. JSW Steel is part of US $15 billion O.P.Jindal Group. JSW Steel Ltd was originally incorporated as Jindal Vijayanagar Steel Ltd on March 15, 1994. During the year, the company entered into a technical arrangement with Voest Alpine Industrieanlagenbau (VAI), for technical details with respect to productivity, iron ore technical details etc. The company set up two joint venture companies namely Jindal Tractebel Power Company Ltd and Jindal Praxair Oxygen Co (P) Ltd for supply of power of 2 x 130 MW of power and supply of Oxygen respectively. In the year l995, the company entered into a joint venture with Praxair to build and operate world's largest cryogenic air separation plants for supply of oxygen, nitrogen and argon to Jindal's integrated steel facility in Bellary in Karnataka. In the year 1997, the company commissioned the BOF & CCP Units to synchronize with the commissioning of the first unit of Corex. Also, they entered into a joint venture with Mysore Minerals Ltd (A Government of Karnataka Undertaking) the Leaseholder of Thimmappanagudi deposits, to form Jindal Mysore Minerals Mining Company Pvt Ltd. In March 1997, JVSL commissioned the first phase of the roughing mill of their hot strip mill. In the year 1999, the company entered into an agreement with the Steel Authority of India (SAIL) for procuring slab. They acquired 60 per cent stake in a city-based joint venture company, Chemicon. Also, they made an agreement with Saint-Gobain Glass India to install an air separation plant for the supply of nitrogen and hydrogen to Saint-Gobain's float glass unit at Chennai. In the year 2000, the company implemented a total integrated resource planning solution for their business process, which was the first of its kind in India. The company signed a Memorandum of Understanding (MoU) with miners in and around the company's captive mines located in the Bellary Hospet region in Karnataka. The MoU was signed for supplying iron ore fines for the company's pelletisation plant. JSW group acquired the company and took over the Management from November 2004. Salem Works is the only integrated steel plant in Tamil Nadu and is located at Pottaneri/M. Kalipatti villages and at about 35 kms from Salem. In 2005, JSWSL approved the merger of Euro Ikon Iron & Steel Pvt Ltd, Euro Coke & Energy Pvt Ltd, and JSW Power Ltd. The company's name was changed to JSW Steel Limited on June 16, 2005. In January 2007, the company executed a Development Agreement with The Government of West Bengal, West Bengal Industrial Development Corporation Limited (WBIDC) West Bengal Mineral Development and Trading Corporation Limited (WBMDTC) for setting up a 10 MTPA steel plant in suitable phases. JSW steel has inaugurated two exclusive JSW Shoppe in Hubli, Karnataka on December 4, 2007, At JSW Shoppe, end consumer will also know about different application of different steel products being manufactured by the company through actual components and pictures from Automobile, White Goods Sectors, and Construction. In March 28, 2008, the company incorporated a 100% subsidiary namely JSW Building Systems Ltd to design, make, prepare, develop, create, alter, replace, repair pre-fabricated building systems and technologies. In April 10, 2009, the 2.8 MTPA Crude Steel Expansion Project at Vijayanagar Works commenced commercial production enhancing the Crude Steel manufacturing capacity to 6.8 MTPA and scaling up the overall steel manufacturing capacity of the Company to 7.8 MTPA. In November 19, 2009, the company signed a strategic collaboration agreement with JFE Steel Corporation, the world renowned Japanese steel company at Mumbai. This collaboration agreement provides an ideal platform for both the steel companies to come together and leverage each others strength to their mutual benefit. In December 2009, the company commissioned the 30 MW Power Plant at Tarapur, equipped with latest ESP system and designed for zero affluent discharge. Also, the company entered into an agreement with Maharashtra State Electricity Distribution Co Ltd (MSEDCL) for sale of the surplus power. Since December 2009, the company has been selling the surplus power to MSEDCL. The state-of-the-art new Hot Strip Mill with a capacity of 5 MTPA is being implemented in two phases. The Phase-I with a capacity of 3.5 MTPA has been successfully commissioned on March 28, 2010. After successful trial runs, the Mill commenced commercial operations on April 10, 2010. In September 2010, they commissioned the 300 MW captive power plant at Vijayanagar works. Also, they commissioned the phase of the Blooming Mill with capacity of 0.25 mtpa in Salem works. In December 2010, they commissioned the two of the four batteries (Battery A&B) of coke oven 4 (1.95 mtpa capacity) in at Vijayanagar works. In January 2011, they acquired the assets of Integrated Steel Plant division of Bellary Steel & Alloys Ltd. In February 2011, the company commissioned the Sinter plant 3 (5.75 mtpa capacity) at Vijayanagar works, the largest such facility in India. In October 2011, the company signed a joint venture agreement with Marubeni-Itochu Steel Inc. Tokyo, (MISI) to set-up a steel processing center in North India, under the name of JSW MI Steel Service Center Pvt Ltd. The company has decided to set up a new cold rolling mill complex of 2.3 mtpa in two phases at its Vijaynagar Works, considering the growing demand from consumer durables and automobile segment for CRCA products. By 2012-2013, JSW Steel became India's largest integrated private steel manufacturer with a combined capacity of 14.3 MTPA. On 1 October 2013, JSW Steel announced its plan to set up a second steel processing center in India's automotive hue Pune (Maharashtra) with its joint venture partner Marubeni Itochu Steel Inc. Tokyo, (MISI). The first phase of the project is expected to come on stream by FY 2014 with an installed capacity of 1.8 lakh tonnes per annum and will be scaled up to 3.6 lakh tonnes per annum in phase two. The project will be set up at a capital cost of Rs 204 crore and will be funded through 50% equity and 50% debt element. On 5 October 2013, JSW Steel executed a Business Transfer Agreement with Heidelberg Cement India Ltd. for the acquisition of its cement grinding facility at Raigad, Maharashtra, as a going concern on slump sale basis. On 21 February 2014, JSW Steel announced that it has executed a legally binding Share Purchase Agreement and Shareholders Agreement with the shareholders of Vallabh Tinplate Pvt Ltd (VTPL) and VTPL to acquire 26% equity in VTPL immediately and increase its equity stake in VTPL to 50% in due course. The total investment to acquire 50% equity stake in VTPL is estimated to be a maximum of Rs 46 crore depending upon financial performance of VTPL. This acquisition marks JSW Steel's entry into growing tinplate business in India. VTPL is currently operating a 60,000 MT per annum tinplate manufacturing facility in Beopror Village, Rajpura, Patiala District in the State of Punjab in India. VTPL is owned by Vardhaman Industries Ltd (VIL) along with its promoters. On 25 April 2014, JSW Steel announced the launch of its Cold Roll Mill 2 (CRM-2) facility at Vijaynagar Works, Karnataka. The new CRM-2 complex, with a production capacity of 2.3 million tonnes per annum (MTPA), is the most sophisticated plant by configuration with capacity to produce high strength and advanced high strength steel, both in uncoated and coated categories and wider width up to 1870 mm. The CRM-2 facility includes a Continuous Annealing Line, which is the first to start operations in India. On 31 October 2014, JSW Steel announced that it has completed the acquisition of the entire shareholding of Welspun Enterprises Limited (WEL) held in Welspun Maxsteel Limited (WMSL). Earlier, on 18 August 2014, JSW Steel had announced that it has entered into a definitive agreement with WEL, pursuant to which the company shall acquire the entire equity shares held by WEL in WMSL for an enterprise value of Rs 1000 crore plus net assets as of an agreed date of 31 August 2014. WMSL has installed capacity of 0.9 MTPA gas based DRI plant, with a captive jetty and a captive railway siding. JSW Steel has surplus pellets in its subsidiary Amba River Coke Limited which will be supplied to WMSL. The cost of production of WMSL is expected to come down due to replacement of significant portion of its bought-out pellets with captive pellets. The DRI produced by WMSL shall be used partly by JSW Steel's Dolvi unit, and would be consumed in the entirety post completion of its ongoing expansion to 5 MTPA. WMSL also has vacant land of about 480 acres available for future expansions. On 24 November 2014, JSW Steel informed stock exchanges that it has submitted a binding bid for takeover of Rolling Mills of the Piombini Plant of Lucchini in Italy subject to certain terms and conditions. On 17 December 2014, JSW Steel announced that the company has decided to put on hold the implementation of its proposed 10 MTPA Greenfield steel plant project in West Bengal. Ban/restriction on iron ore mining in the country followed by cancellation of coal blocks including coal mines earmarked for the project brought severe uncertainty to the linkages of critical inputs for steel making. In this backdrop, financing a capital-intensive Greenfield project will be very challenging. JSW Steel will continue to work with the West Bengal state government to find alternatives to establish raw material linkages for the project so as to take up implementation of the Greenfield project in due course. On 22 February 2016, JSW Steel announced that credit rating agency ICRA has revised its long term rating on the back facilities and non-convertible debentures of the company downward by one notch. The downward revision in the long term rating takes into account the significant drop in steel prices due to downturn in the global steel industry and continued imports into India at predatory prices negatively impacting the company's profitability and cash accruals. On 17 August 2016, JSW Steel announced that it has completed the acquisition of 74% shareholding of Praxair India Private Limited in JSW Praxair Oxygen Private Limited (JPOPL) for a cash consideration of Rs 240 crore. Post the acquisition, JPOPL has become a wholly owned subsidiary of JSW Steel. Earlier, on 16 August 2016, JSW Steel executed a Share Purchase Agreement with Praxair India Private Limited to acquire their entire shareholding of 74% in JSW Praxair Oxygen Private Limited (JPOPL) for a cash consideration of Rs 240 crore. JSW Steel said this acquisition is strategic in nature as it will provide the company the benefit of backward integration. JPOPL is engaged in the business of production and sale of industrial gases such as oxygen, nitrogen and argon and has set up two air separation plants, each with a capacity of 2,500 tonnes per day, at Toranagallu, Bellary District, Karnataka. JSW Steel sources industrial gases from JPOPL amongst others at prices based on long term contracts. The Board of Directors of JSW Steel at its meeting held on 27 October 2016 approved the sub-division of each of the equity shares of the company having a face value of Rs 10 into 10 equity shares of a face value of Re 1 each. The Board also approved the raising of funds not exceeding Rs 2000 crores in the aggregate, through the issuance of Redeemable Non-Convertible Debentures either by way of a Public Issue or by way of a Private Placement and has authorised a sub-committee of Directors to decide on all matters relating to the proposed issuance of the Debentures including finalisation and approval of the detailed terms of issue. The issue proceeds would be majorly used for refinancing of expensive debt, to meet long term working capital requirements, to meet requirements for Normal Capital Expenditure and for General Corporate purposes. The Board of Directors of JSW Steel at its meeting held on 31 October 2017 approved to form a wholly owned subsidiary of the company in the name of JSW Utkal Steel Limited or such other name as may be approved by the Registrar of Companies, with an initial investment of up to Rs 150 crore to undertake preliminary studies and for other costs. JSW Steel as a part of its growth strategy proposes to set up a steel plant in Odisha. Odisha provides a wonderful opportunity to build one of the world's lowest cost and port based pellet and steel producing facilities and could be the next destination in the company's growth path to achieve its vision. On 20 December 2017, JSW Steel announced that it has commenced the national roll-out of JSW Everglow, a colour-coated steel product that aims to provide beautiful and innovative roofing and wall solutions for modern India. On 12 February 2018, JSW Steel announced that it has commenced iron ore mining operations in Tunga Mines which is of capacity 0.3 MTPA. The company commenced operations at the mine after receiving all the required clearances and final commencement letter from Department of Mines & Geology, Government of Karnataka. Earlier, JSW Steel had announced on 7 October 2016 that it was declared as a preferred bidder for 5 iron ore mines having an estimated resource of 111 million tonnes in the auctions conducted for 7 Category C minutes conducted by the Karnataka state government during the period 1 October 2016 to 6 October 2016. On 26 March 2018, JSW Steel announced that its US subsidiary JSW Steel (US) Inc and the Office of Governor, Texas USA have signed a Memorandum of Cooperation to develop and augment the steel industry in Texas. According to the Memorandum, JSW Steel (USA) Inc has agreed to consider investment of up to USD 500 million in phases (subject to EPA approval) in developing its steel manufacturing infrastructure in Baytown, Texas, USA. As part of the Memorandum, the Governor of Texas Greg Abbott has approved USD 3.4 million grant from the Texas Enterprise Fund to the company. The intended investment by JSW USA will be used to undertake capability enhancement of its plate and pipe unit located in Baytown, Texas USA. The company will invest USD 150 million (already underway) to augment the unit's capabilities. This capex programme is expected to be completed by March 2020. JSW USA intends to use the rest of the investment, up to 350 million, to set up a new hot end facility to make their steel 'melt and manufacture'. On 29 March 2018, JSW Steel announced that it has entered into a Stock Purchase Agreement with JSM International Limited, Acero Junction Holdings Inc. and Acero Junction Inc. for acquisition of 100% shares of Acero Junction Holdings Inc., a Delaware Corporation, for a cash consideration of USD 80.85 million. The transaction is subject to fulfilment of conditions precedent and other terms as per the Stock Purchase Agreement, with a long stop date of 31 May 2018. Acero Junction Holdings Inc. owns 100% of the shareholding of Acero Junction Inc., which is a steel manufacturing mill that uses the electric arc furnace route to produce hot rolled coils. The acquisition provides a unique opportunity for JSW Steel to establish its presence in Ohio, United States and gain deeper access to the North American market. The total Enterprise Value of the transaction is about USD 180.35 million, with equity value of USD 80.85 million and liabilities of USD 99.5 million, subject to closing adjustments. The acquisition shall be funded by way of a combination of internal accruals from JSW Steel and debt to be raised at Acero Junction Inc. On 2 April 2018, JSW Steel announced that the company in the capacity of an investor jointed Nu Metal & Steel Pvt Ltd in submitting a binding bid for Essar Steel Ltd, which is under the corporate insolvency resolution process as per the provisions of The Insolvency and Bankruptcy Code, 2016 (IBC). On 4 April 2018, JSW Steel announced that it has reported highest ever monthly crude steel production of 1.52 million tonnes for March 2018 with year on year growth of 5%. The company also reported highest ever quarterly crude steel production of 4.31 million tonnes in Q4 March 2018 with year on year growth of 5%. The company also reported highes ever annual crude steel production of 16.27 million tonnes with a growth of 3% over previous year.

JSW Steel Ltd Chairman Speech

Dear Shareholders,

I am pleased to report that FY 2019-20 turned out to be a year of significant progress in crossing strategic milestones for your company, notwithstanding the overall challenging operating environment.

At JSW Steel, we continue our journey of being better every day as we demonstrated excellence in our operations. We made good progress towards the completion of our ongoing strategic expansion projects. I am excited on your Company achieving long term security of iron ore - a key raw material in steelmaking operations, which is likely to be a game changer and a boost to our competitive positioning.

With regard to the macroeconomic and business environment, the first half of the year witnessed weak steel demand and a subdued pricing environment, amidst rising global trade tensions. Just as the business and consumer sentiment began improving in the second half of the year, the COVID-19 pandemic created an unprecedented socio-economic disruption across the globe.

Delivering operational excellence despite several headwinds

During the year, we optimised our resources to maintain production levels, continued to invest in completing our growth projects, rationalised our cost structure, and implemented measures to enhance efficiencies.

Following the steps of Vijayanagar works last year, our Salem works received the prestigious and coveted Deming Prize this year, which testifies our commitment towards operational excellence.

In India, despite a significant loss of volumes in the first half of the year due to excessive monsoon, we managed to achieve 97% of our production guidance for FY 2019-20, notwithstanding COVID-19 related disruptions in March 2020. We focused on increasing the share of high-margin value added and special products (VASP) in our total shipments, which stood at 48%. Branded products sales stood at 49% (up from 46%) of total retail sales. Further, in order to offset the impact of weak domestic demand, we increased our export volume by 30% and exports accounted for 21% of total sales (versus 15% last year).

However, the weak pricing environment led to a 14% fall in realisations, which could not be offset by our several cost-reduction initiatives, and significantly impacted our revenue and margins.

At our associate company MIEL (Monnet Ispat and Energy Limited), we undertook a major shutdown during the year to , enable production of specialised steel products. The facility is now geared to ramp up steel making operations, seek a . range of grade approvals, and will continue to supply TMT to the regional construction sector.

In the overseas businesses, a tough economic environment in the US and Italy impacted our performance adversely.

We are focused on implementing measures to turnaround these operations and strive for enhanced efficiencies, which is core to our business philosophy. In the US, we are implementing an integration plan between Ohio and Baytown operations to derive synergies. A substantial progress was made in modernisation of the Plate Mill at Baytown

FY 2019-20 TURNED OUT TO BE A REMARKABLE YEAR FOR JSW STEEL IN TERMS OF ACHIEVING RAW MATERIAL SECURITY OF IRON ORE.

(first phase), and we are likely to derive benefits in the coming year. At Piombino, Italy, we continue to cater specialised steel products to our customers amidst a challenging market.

The Board of Directors have recommended a dividend of Rs. 2 per equity share, subject to shareholder approvals.

Iron ore mines - A game changer in securing long-term raw material security

FY 2019-20 turned out to be a remarkable year for JSW Steel in terms of achieving raw material security of iron ore. We emerged as a preferred bidder for four iron ore mines in Odisha, and additional three mines in Karnataka, with aggregate reserves of close to 1.2 bn tonnes. These mines give strategic long-term raw material security, access to high quality reserves and an advantage of achieving consistency in quality which can drive value in our steelmaking operations.

Further, over the medium term, there is an opportunity to invest in best-in-class infrastructure facilities and optimise the logistics cost of transporting iron ore from the mines to the steel manufacturing facilities. This will significantly strengthen our ability to preserve margins through the cycle. We are working towards operationalising these mines at the earliest and expect to commence operations in the coming year.

Mainstreaming sustainability

At JSW Steel, we are committed to our environmental, social and governance (ESG) goals to create sustainable long-term value for all our stakeholders. JSW Steel was recognised as a Sustainability Champion for 2019 by the World Steel Association (worldsteel) for second year in a row.

We are committed in our efforts to reduce our carbon footprint, and are in the process of implementing plans to replace coal with renewable source of energy for generating power in our steel operations. Further, our Research & Development team is working on a lot of initiatives to reduce the intensity of metallurgical coal usage in our blast furnaces.

This year we also outlined a comprehensive sustainability framework comprising 17 core focus areas, where we can create significant impact. Going forward, our ESG performance will be gauged under these focus areas, with respect to progress made under their respective components.

The safety and well-being of our people is of paramount importance to us. At JSW Group, our vision is to achieve

'Zero Harm'. In order to help us to reach this vision, we have fully integrated Health & Safety (H&S) as one our core Group values and are continuing to implement initiatives under the 'VISION 000' motto. Safety Officers have been appointed at all plant locations and Mentor Safety Officers have been deployed.

The JSW Foundation continued to make a positive difference across 255 villages in four states, aligned with our vision to 'empower communities to create sustainable livelihoods'.

Our CSR initiatives are focused on key intervention areas of health and nutrition, skills and livelihoods, education, water, sanitation and community empowerment.

JSW Shakti initiatives are being scaled up to empower rural women entrepreneurs across the country through rural BPOs and promotion of self-help groups (SHGs). We are also improving the quality of education in rural schools through infrastructure, training methodology and capacity building initiatives. In addition, we are undertaking environment upgradation programmes such as mangrove restoration and also working towards preservation of national heritage and promotion of Olympic sports.

Calibrating capex to prioritise returns-accretive projects

We have undertaken a detailed exercise to prioritise all planned and discretionary spends with a twin objective of conserving liquidity, and ensuring that strategic projects which are in advanced stages of completion are completed and commissioned on priority.

Due to the lockdown announced by the government, and its subsequent extensions to contain the spread, project activity at various sites were severely constrained by the non-availability of required manpower and material.

At Dolvi Works, we received the permission to restart activities towards the end of April 2020. We were able to ramp-up our existing operations in an efficient and a timely manner. However, progress on the 5 MTPA expansion project was hampered as a number of workers employed by our contractors began to head home, with low visibility of when this trend is likely to reverse. Further, non-availability of foreign experts (from our technology and equipment suppliers) due to international travel restrictions is also impacting the commissioning schedule.

Thus, the expansion of crude steel capacity at Dolvi Works from 5 MTPA to 10 MTPA, along with the captive power plant and coke oven plant, is likely to get delayed into the second half of FY 2021. The 8 MTPA pellet plant and the wire rod mill at Vijayanagar are expected to be commissioned by

THIS YEAR WE ALSO OUTLINED A

COMPREHENSIVE SUSTAINABILITY FRAMEWORK

COMPRISING 17 CORE FOCUS AREAS, WHERE WE

CAN CREATE SIGNIFICANT IMPACT.

mid FY 2020-21. The downstream modernisation-and- capacity enhancement projects in Vasind and Tarapur, and the colour coating plant at Kalmeshwar are now expected to be commissioned in the second half of FY 2020-21.

We thus reduced our planned capex on all these projects to Rs. 8,200 crore for the year. Combined with the spend earmarked to operationalise the iron ore mines, our total planned capex for FY 2020-21 stands at about Rs. 9,000 crore.

Focused on deleveraging and fiscal prudence

At JSW Steel, we remain committed to maintaining fiscal discipline and prudence in capital allocation, and our target to maintain leverage ratios at healthy levels.

Our net debt, which stood at about Rs. 53,000 crore at the end of March 2020, may appear to be high. If not for the pandemic-related disruptions in March, which led to a drop in sales and a subsequent inventory build-up, leverage at year end could possibly have been lower. However, of this amount, about Rs. 18,000 crore is leverage on account of new projects which are currently under implementation and at various stages of completion. In other words, our core leverage for the current 18 MTPA capacity is only about Rs. 35,000 crore, which is one of the lowest in the industry.

As some of these projects get progressively commissioned during FY 2020-21 and start generating returns, it will set in motion a natural deleveraging process in the next year i.e.

FY 2021-22.

Fighting the pandemic with the nation

The continuing spread of COVID-19 has left in its wake significant losses of lives and livelihoods, being a health crisis with deep economic implications. Normal life came to a halt amid the lockdowns across the world, including in India in the latter part of March. JSW Steel was not immune to the impact of such global events. Our first response to COVID-19 was to institute a number of measures and protocols to ensure the safety of our colleagues and their families. Given the scale and size of our operations and facilities, there have been positive cases at our locations too. We are undertaking comprehensive measures to contain and mitigate the spread, and have extended all possible assistance to all affected, while trying to ensure uninterrupted operations.

As a Group, we remain committed to doing our bit for the country and supporting the frontline warriors, who are battling away to mitigate the spread of the virus. In addition to pledging Rs. 100 crore to the PM CARES Fund, we converted several facilities across our Group locations into isolation wards to relieve stress on the country's healthcare system. Funds were also earmarked to source ventilators, testing and PPE kits. More than 250 people were trained on COVID-19 management and more than 2,750 habitations were sanitised. We also extended support by providing staples and other dietary requirements to more than 3,90,000

people - healthcare workers, migrant labourers and those stranded in the nationwide lockdown.

We will continue to do whatever it takes to help our colleagues, communities and citizens, to defeat this crisis.

A firm believer in "Never let a crisis go waste"

We paused to save lives. Now, it is time to go full throttle to save livelihoods. Global economies are opening up gradually. India too needs to get back to its full capacity at the earliest to be the successful economy that it aims to be. The pandemic presents a unique opportunity for India and its industries to increase influence in the global supply chain.

It was the 1991 balance of payments crisis that prompted the government of the day to set in motion path-breaking reforms. India would not have been what it is today, had we not taken those steps. Almost thirty years hence, we have yet another government that has not shied away from undertaking bold and decisive reforms.

With a likely realignment of global supply chains, India has the scale and expertise to emerge as a location of choice. The Rs. 20 trillion fiscal and monetary stimulus package with a clarion call for making India self-reliant is a step in the right direction. The increased focus on strengthening the micro, small and medium enterprises (MSMEs), considered to be backbone of the economy, assumes paramount importance.

At JSW Steel, we are joining in the 'Aatma Nirbhar Bharat Abhiyan' by making our wide range of high-quality steel products available to domestic engineering goods manufacturers at international prices. This initiative, in partnership with the Engineering Export Promotion Council (EEPC), will enhance the global competitiveness of locally manufactured products and make India a new exporter of engineering goods.

We have taken a number of initiatives across the organisation to rebase our cost base and align our business model - through accelerated adoption of technological tools and digitalisation initiatives. We are aiming to cut our fixed costs by 10%-15% which will aid in preserving and enhancing our margins.

As we continue our journey of being better every day in the new normal, I would like to thank the Board for guiding me to execute my responsibilities in the best possible manner.

I also voice my gratitude to each and every member of our team for their relentless efforts in enabling JSW Steel navigate through these unprecedented times.

Let me also take this opportunity to acknowledge the support and assistance extended by our partners and stakeholders including bankers and government authorities, throughout our journey.

I solicit your continued cooperation.

Sajjan Jindal
Chairman

   

JSW Steel Ltd Company History

JSW Steel Ltd, the flagship company of the JSW Group, is an integrated steel manufacturer in India with an installed steel-making capacity of 18 million tonnes per annum (MTPA). The company offers the entire gamut of steel products - Hot Rolled, Cold Rolled, Galvanized, Galvalume, Pre-painted Galvanised, Pre-painted Galvalume, TMT Rebars, Wire Rods & Special Steel Bars, Rounds & Blooms. They have manufacturing facilities at Vijayanagar in Karnataka, Dolvi, Vasind, Kalmeshwar, Tarapur in Maharashtra, Salem in Tamil Nadu and Texas in USA. JSW Steel's plant at Vijayanagar in Karnataka, is the largest single location steel producing facility in the country with a capacity of 12 MTPA. JSW Steel is part of US $15 billion O.P.Jindal Group. JSW Steel Ltd was originally incorporated as Jindal Vijayanagar Steel Ltd on March 15, 1994. During the year, the company entered into a technical arrangement with Voest Alpine Industrieanlagenbau (VAI), for technical details with respect to productivity, iron ore technical details etc. The company set up two joint venture companies namely Jindal Tractebel Power Company Ltd and Jindal Praxair Oxygen Co (P) Ltd for supply of power of 2 x 130 MW of power and supply of Oxygen respectively. In the year l995, the company entered into a joint venture with Praxair to build and operate world's largest cryogenic air separation plants for supply of oxygen, nitrogen and argon to Jindal's integrated steel facility in Bellary in Karnataka. In the year 1997, the company commissioned the BOF & CCP Units to synchronize with the commissioning of the first unit of Corex. Also, they entered into a joint venture with Mysore Minerals Ltd (A Government of Karnataka Undertaking) the Leaseholder of Thimmappanagudi deposits, to form Jindal Mysore Minerals Mining Company Pvt Ltd. In March 1997, JVSL commissioned the first phase of the roughing mill of their hot strip mill. In the year 1999, the company entered into an agreement with the Steel Authority of India (SAIL) for procuring slab. They acquired 60 per cent stake in a city-based joint venture company, Chemicon. Also, they made an agreement with Saint-Gobain Glass India to install an air separation plant for the supply of nitrogen and hydrogen to Saint-Gobain's float glass unit at Chennai. In the year 2000, the company implemented a total integrated resource planning solution for their business process, which was the first of its kind in India. The company signed a Memorandum of Understanding (MoU) with miners in and around the company's captive mines located in the Bellary Hospet region in Karnataka. The MoU was signed for supplying iron ore fines for the company's pelletisation plant. JSW group acquired the company and took over the Management from November 2004. Salem Works is the only integrated steel plant in Tamil Nadu and is located at Pottaneri/M. Kalipatti villages and at about 35 kms from Salem. In 2005, JSWSL approved the merger of Euro Ikon Iron & Steel Pvt Ltd, Euro Coke & Energy Pvt Ltd, and JSW Power Ltd. The company's name was changed to JSW Steel Limited on June 16, 2005. In January 2007, the company executed a Development Agreement with The Government of West Bengal, West Bengal Industrial Development Corporation Limited (WBIDC) West Bengal Mineral Development and Trading Corporation Limited (WBMDTC) for setting up a 10 MTPA steel plant in suitable phases. JSW steel has inaugurated two exclusive JSW Shoppe in Hubli, Karnataka on December 4, 2007, At JSW Shoppe, end consumer will also know about different application of different steel products being manufactured by the company through actual components and pictures from Automobile, White Goods Sectors, and Construction. In March 28, 2008, the company incorporated a 100% subsidiary namely JSW Building Systems Ltd to design, make, prepare, develop, create, alter, replace, repair pre-fabricated building systems and technologies. In April 10, 2009, the 2.8 MTPA Crude Steel Expansion Project at Vijayanagar Works commenced commercial production enhancing the Crude Steel manufacturing capacity to 6.8 MTPA and scaling up the overall steel manufacturing capacity of the Company to 7.8 MTPA. In November 19, 2009, the company signed a strategic collaboration agreement with JFE Steel Corporation, the world renowned Japanese steel company at Mumbai. This collaboration agreement provides an ideal platform for both the steel companies to come together and leverage each others strength to their mutual benefit. In December 2009, the company commissioned the 30 MW Power Plant at Tarapur, equipped with latest ESP system and designed for zero affluent discharge. Also, the company entered into an agreement with Maharashtra State Electricity Distribution Co Ltd (MSEDCL) for sale of the surplus power. Since December 2009, the company has been selling the surplus power to MSEDCL. The state-of-the-art new Hot Strip Mill with a capacity of 5 MTPA is being implemented in two phases. The Phase-I with a capacity of 3.5 MTPA has been successfully commissioned on March 28, 2010. After successful trial runs, the Mill commenced commercial operations on April 10, 2010. In September 2010, they commissioned the 300 MW captive power plant at Vijayanagar works. Also, they commissioned the phase of the Blooming Mill with capacity of 0.25 mtpa in Salem works. In December 2010, they commissioned the two of the four batteries (Battery A&B) of coke oven 4 (1.95 mtpa capacity) in at Vijayanagar works. In January 2011, they acquired the assets of Integrated Steel Plant division of Bellary Steel & Alloys Ltd. In February 2011, the company commissioned the Sinter plant 3 (5.75 mtpa capacity) at Vijayanagar works, the largest such facility in India. In October 2011, the company signed a joint venture agreement with Marubeni-Itochu Steel Inc. Tokyo, (MISI) to set-up a steel processing center in North India, under the name of JSW MI Steel Service Center Pvt Ltd. The company has decided to set up a new cold rolling mill complex of 2.3 mtpa in two phases at its Vijaynagar Works, considering the growing demand from consumer durables and automobile segment for CRCA products. By 2012-2013, JSW Steel became India's largest integrated private steel manufacturer with a combined capacity of 14.3 MTPA. On 1 October 2013, JSW Steel announced its plan to set up a second steel processing center in India's automotive hue Pune (Maharashtra) with its joint venture partner Marubeni Itochu Steel Inc. Tokyo, (MISI). The first phase of the project is expected to come on stream by FY 2014 with an installed capacity of 1.8 lakh tonnes per annum and will be scaled up to 3.6 lakh tonnes per annum in phase two. The project will be set up at a capital cost of Rs 204 crore and will be funded through 50% equity and 50% debt element. On 5 October 2013, JSW Steel executed a Business Transfer Agreement with Heidelberg Cement India Ltd. for the acquisition of its cement grinding facility at Raigad, Maharashtra, as a going concern on slump sale basis. On 21 February 2014, JSW Steel announced that it has executed a legally binding Share Purchase Agreement and Shareholders Agreement with the shareholders of Vallabh Tinplate Pvt Ltd (VTPL) and VTPL to acquire 26% equity in VTPL immediately and increase its equity stake in VTPL to 50% in due course. The total investment to acquire 50% equity stake in VTPL is estimated to be a maximum of Rs 46 crore depending upon financial performance of VTPL. This acquisition marks JSW Steel's entry into growing tinplate business in India. VTPL is currently operating a 60,000 MT per annum tinplate manufacturing facility in Beopror Village, Rajpura, Patiala District in the State of Punjab in India. VTPL is owned by Vardhaman Industries Ltd (VIL) along with its promoters. On 25 April 2014, JSW Steel announced the launch of its Cold Roll Mill 2 (CRM-2) facility at Vijaynagar Works, Karnataka. The new CRM-2 complex, with a production capacity of 2.3 million tonnes per annum (MTPA), is the most sophisticated plant by configuration with capacity to produce high strength and advanced high strength steel, both in uncoated and coated categories and wider width up to 1870 mm. The CRM-2 facility includes a Continuous Annealing Line, which is the first to start operations in India. On 31 October 2014, JSW Steel announced that it has completed the acquisition of the entire shareholding of Welspun Enterprises Limited (WEL) held in Welspun Maxsteel Limited (WMSL). Earlier, on 18 August 2014, JSW Steel had announced that it has entered into a definitive agreement with WEL, pursuant to which the company shall acquire the entire equity shares held by WEL in WMSL for an enterprise value of Rs 1000 crore plus net assets as of an agreed date of 31 August 2014. WMSL has installed capacity of 0.9 MTPA gas based DRI plant, with a captive jetty and a captive railway siding. JSW Steel has surplus pellets in its subsidiary Amba River Coke Limited which will be supplied to WMSL. The cost of production of WMSL is expected to come down due to replacement of significant portion of its bought-out pellets with captive pellets. The DRI produced by WMSL shall be used partly by JSW Steel's Dolvi unit, and would be consumed in the entirety post completion of its ongoing expansion to 5 MTPA. WMSL also has vacant land of about 480 acres available for future expansions. On 24 November 2014, JSW Steel informed stock exchanges that it has submitted a binding bid for takeover of Rolling Mills of the Piombini Plant of Lucchini in Italy subject to certain terms and conditions. On 17 December 2014, JSW Steel announced that the company has decided to put on hold the implementation of its proposed 10 MTPA Greenfield steel plant project in West Bengal. Ban/restriction on iron ore mining in the country followed by cancellation of coal blocks including coal mines earmarked for the project brought severe uncertainty to the linkages of critical inputs for steel making. In this backdrop, financing a capital-intensive Greenfield project will be very challenging. JSW Steel will continue to work with the West Bengal state government to find alternatives to establish raw material linkages for the project so as to take up implementation of the Greenfield project in due course. On 22 February 2016, JSW Steel announced that credit rating agency ICRA has revised its long term rating on the back facilities and non-convertible debentures of the company downward by one notch. The downward revision in the long term rating takes into account the significant drop in steel prices due to downturn in the global steel industry and continued imports into India at predatory prices negatively impacting the company's profitability and cash accruals. On 17 August 2016, JSW Steel announced that it has completed the acquisition of 74% shareholding of Praxair India Private Limited in JSW Praxair Oxygen Private Limited (JPOPL) for a cash consideration of Rs 240 crore. Post the acquisition, JPOPL has become a wholly owned subsidiary of JSW Steel. Earlier, on 16 August 2016, JSW Steel executed a Share Purchase Agreement with Praxair India Private Limited to acquire their entire shareholding of 74% in JSW Praxair Oxygen Private Limited (JPOPL) for a cash consideration of Rs 240 crore. JSW Steel said this acquisition is strategic in nature as it will provide the company the benefit of backward integration. JPOPL is engaged in the business of production and sale of industrial gases such as oxygen, nitrogen and argon and has set up two air separation plants, each with a capacity of 2,500 tonnes per day, at Toranagallu, Bellary District, Karnataka. JSW Steel sources industrial gases from JPOPL amongst others at prices based on long term contracts. The Board of Directors of JSW Steel at its meeting held on 27 October 2016 approved the sub-division of each of the equity shares of the company having a face value of Rs 10 into 10 equity shares of a face value of Re 1 each. The Board also approved the raising of funds not exceeding Rs 2000 crores in the aggregate, through the issuance of Redeemable Non-Convertible Debentures either by way of a Public Issue or by way of a Private Placement and has authorised a sub-committee of Directors to decide on all matters relating to the proposed issuance of the Debentures including finalisation and approval of the detailed terms of issue. The issue proceeds would be majorly used for refinancing of expensive debt, to meet long term working capital requirements, to meet requirements for Normal Capital Expenditure and for General Corporate purposes. The Board of Directors of JSW Steel at its meeting held on 31 October 2017 approved to form a wholly owned subsidiary of the company in the name of JSW Utkal Steel Limited or such other name as may be approved by the Registrar of Companies, with an initial investment of up to Rs 150 crore to undertake preliminary studies and for other costs. JSW Steel as a part of its growth strategy proposes to set up a steel plant in Odisha. Odisha provides a wonderful opportunity to build one of the world's lowest cost and port based pellet and steel producing facilities and could be the next destination in the company's growth path to achieve its vision. On 20 December 2017, JSW Steel announced that it has commenced the national roll-out of JSW Everglow, a colour-coated steel product that aims to provide beautiful and innovative roofing and wall solutions for modern India. On 12 February 2018, JSW Steel announced that it has commenced iron ore mining operations in Tunga Mines which is of capacity 0.3 MTPA. The company commenced operations at the mine after receiving all the required clearances and final commencement letter from Department of Mines & Geology, Government of Karnataka. Earlier, JSW Steel had announced on 7 October 2016 that it was declared as a preferred bidder for 5 iron ore mines having an estimated resource of 111 million tonnes in the auctions conducted for 7 Category C minutes conducted by the Karnataka state government during the period 1 October 2016 to 6 October 2016. On 26 March 2018, JSW Steel announced that its US subsidiary JSW Steel (US) Inc and the Office of Governor, Texas USA have signed a Memorandum of Cooperation to develop and augment the steel industry in Texas. According to the Memorandum, JSW Steel (USA) Inc has agreed to consider investment of up to USD 500 million in phases (subject to EPA approval) in developing its steel manufacturing infrastructure in Baytown, Texas, USA. As part of the Memorandum, the Governor of Texas Greg Abbott has approved USD 3.4 million grant from the Texas Enterprise Fund to the company. The intended investment by JSW USA will be used to undertake capability enhancement of its plate and pipe unit located in Baytown, Texas USA. The company will invest USD 150 million (already underway) to augment the unit's capabilities. This capex programme is expected to be completed by March 2020. JSW USA intends to use the rest of the investment, up to 350 million, to set up a new hot end facility to make their steel 'melt and manufacture'. On 29 March 2018, JSW Steel announced that it has entered into a Stock Purchase Agreement with JSM International Limited, Acero Junction Holdings Inc. and Acero Junction Inc. for acquisition of 100% shares of Acero Junction Holdings Inc., a Delaware Corporation, for a cash consideration of USD 80.85 million. The transaction is subject to fulfilment of conditions precedent and other terms as per the Stock Purchase Agreement, with a long stop date of 31 May 2018. Acero Junction Holdings Inc. owns 100% of the shareholding of Acero Junction Inc., which is a steel manufacturing mill that uses the electric arc furnace route to produce hot rolled coils. The acquisition provides a unique opportunity for JSW Steel to establish its presence in Ohio, United States and gain deeper access to the North American market. The total Enterprise Value of the transaction is about USD 180.35 million, with equity value of USD 80.85 million and liabilities of USD 99.5 million, subject to closing adjustments. The acquisition shall be funded by way of a combination of internal accruals from JSW Steel and debt to be raised at Acero Junction Inc. On 2 April 2018, JSW Steel announced that the company in the capacity of an investor jointed Nu Metal & Steel Pvt Ltd in submitting a binding bid for Essar Steel Ltd, which is under the corporate insolvency resolution process as per the provisions of The Insolvency and Bankruptcy Code, 2016 (IBC). On 4 April 2018, JSW Steel announced that it has reported highest ever monthly crude steel production of 1.52 million tonnes for March 2018 with year on year growth of 5%. The company also reported highest ever quarterly crude steel production of 4.31 million tonnes in Q4 March 2018 with year on year growth of 5%. The company also reported highes ever annual crude steel production of 16.27 million tonnes with a growth of 3% over previous year.

JSW Steel Ltd Directors Reports

To the Members of JSW STEEL LIMITED,

The Board of Directors present the Third Integrated Report on business and operations along with financial statements of the Company for the financial year ended March 31, 2020.

1. COMPANY PERFORMANCE

Standalone

Consolidated

FY 2019-20 FY 2018-19 FY 2019-20 FY 2018-19
I Revenue from operations 64,262 77,187 73,326 84,757
II Other income 628 405 546 204
III Total income (I + II) 64,890 77,592 73,872 84,961
IV Expenses
Cost of materials consumed 33,073 39,179 38,865 43,476
Purchases of stock-in-trade 420 499 135 320
Changes in inventories of finished goods, work-in-progress and stock-in-trade (27) (180) (270) (590)
Employee benefits expense 1,496 1,435 2,839 2,489
Finance costs 4,022 3,789 4,265 3,917
Depreciation and amortization expense 3,522 3,421 4,246 4,041
Other expenses 16,783 17,742 19,884 20,110
Total expenses 59,289 65,885 69,964 73,763
V Profit before share of profit / (loss) from joint ventures (net), exceptional items and tax (III-IV) 5,601 11,707 3,908 11,198
VI Share of profit / (loss) from joint ventures (net) (90) (30)
VII Profit before exceptional items and tax (V+VI) 5,601 11,707 3,818 11,168
VIII Exceptional items 1,309 - 805 -
IX Profit before tax (VII-VIII) 4,292 11,707 3,013 11,168
X Tax expense/(credit)
Current tax 789 2,356 943 2,473
Deferred tax (1,788) 1,230 (1,849) 1,171
Total tax expense/(credit) (999) 3,586 (906) 3,644
XI Profit for the year (IX-X) 5,291 8,121 3,919 7,524
XII Other comprehensive income / (loss)
A (i) Items that will not be reclassified to profit or loss
a) Remeasurement losses of the defined benefit plans (19) (15) (23) (19)
b) Equity instruments through other comprehensive income (255) 4 (304) (2)
(ii) Income tax relating to items that will not be reclassified to profit or loss 6 5 7 7
Total (A) (268) (6) (320) (14)
B (i) Items that will be reclassified to profit or loss
a) The effective portion of gain /(loss) on hedging instruments (719) 31 (825) 85
b) Changes in Foreign currency monetary item translation difference account (FCMITDA) 87 (50) 87 (49)
c) Foreign currency translation reserve (FCTR) (316) (60)
(ii) I ncome tax relating to items that will be reclassified to profit or loss 221 7 253 (12)
Total(B) (411) (12) (801) (36)
Total other comprehensive income/(loss) (A+B) (679) (18) (1,121) (50)
XIII Total comprehensive income/(loss) (XI+XII) 4,612 8,103 2,798 7,474
Total Profit /(loss) for the year attributable to:
- Owners of the Company 4,030 7,639
- Non-controlling interests (111) (115)
3,919 7,524
Other comprehensive income/(loss) for the year attributable to:
- Owners of the Company (1,076) (24)
- Non-controlling interests (45) (26)
(1,121) (50)
Total comprehensive income/(loss) for the year attributable to:
- Owners of the Company 2,954 7,615
- Non-controlling interests (156) (141)
2,798 7,474

2. RESULTS OF OPERATIONS

Global economic activity faced several challenges in CY 2019, resulting in a slowdown which was worse than the global financial crisis. The year started off on a weak note, with US-China trade tensions, Brexit-related uncertainty and other geopolitical issues continuing to be an overhang on economic growth. Overall, global trade was sluggish in the first half due to tepid investments and softening demand across advanced and emerging economies. Towards the second half, economic growth began to stabilise, as the US and China signed the 'phase one' of their trade agreement and some green shoots of recovery became visible.

Global crude steel production grew to 1,869.9 MnT in CY 2019 from 1,808.4 MnT in CY 2018, largely driven by growth in Asia and the Middle East. However, steel prices remained under pressure due to continued and extensive destocking across global steel markets, coupled with a slowdown in overall consumption. With raw material prices maintaining the uptrend, steel companies experienced significant margin pressure and thus lower profitability of steel companies.

Despite these headwinds, crude steel production in Asia grew 5.7% y-o-y to 1,341.6 MnT. China recorded the highest growth at 8.3% y-o-y to produce 996.3 MnT, in contrast developed markets of EU and North America reported a decline of 4.9% and 0.8% on y-o-y basis, respectively.

Even as the year began with dampened market conditions, growth seemed to have gradually stabilised at the close of CY 2019. However, CY 2020 began with the COVID-19 pandemic affecting the Chinese market in the month of February 2020 and then gradually spreading across most parts of the world. The nationwide lockdowns to break the chain of transmission brought economic activities to a near halt, affecting the steel demand in the month of March 2020.

In India, the steel industry experienced weakness in the first half of FY 2019-20 due to the slowing auto sector, dampened government spending on infrastructure, stress in the financial sector and tightening credit in light of the NBFC crisis. The government implemented a series of measures to revive the economy, with the Reserve Bank of India (RBI) complementing with policies to keep interest rates lower for longer. The government's planned outlay under the National Infrastructure Pipeline (NIP) provided a boost to steel industry demand. However, the Coronavirus-induced closure of economic activities in the month of March 2020 impacted the economy and the steel industry. In FY 2019-20, the crude steel production fell 1.5%, y-o-y to 109.22 MnT.

Finished steel consumption rose 1.4% y-o-y to 100.07 MnT. Steel imports decreased by 18.5%. And, steel exports from India increased by 30.9%, making India a net exporter of finished steel in FY 2019-20.

Given the volatile and competitive market environment, the Company continued to focus on improving exports in the first half of FY 2019-20. A gradual revival in domestic demand was visible from the third quarter following measures to step up government expenditure. The Company worked towards improving its share in the market by strategically focusing on increasing domestic sales volume. The global slowdown due to COVID-19 induced lockdown in China and across the world from the month of February 2020 and in India in the month of March 2020 impacted the Company's performance in the fourth quarter of FY 2019-20.

Despite the headwinds, the Company delivered steady operational performance, backed by a strong focus on cost reduction, backward integration and a healthy mix of value-added products.

(A) STANDALONE RESULTS

FY 2019-20 was a year of two halves for the steel industry. The first half witnessed a weakened demand and subdued pricing environment. The second half saw improving business and consumer sentiment with higher demand and pricing, which was deflated by the Coronavirus impact towards the end of March 2020.

Amidst the macroeconomic headwinds and operational challenges, the Company reported crude steel production of 16.06 MnT, down 4% y-o-y but achieved 97.3% of its revised production guidance of 16.50 MnT, as average capacity utilisation levels reached 89%.

The Company also achieved 97.3% of its sales volume guidance of 15.5 MnT for FY 2019-20. Saleable steel sales volume stood at 15.08 MnT, down 4% y-o-y. The Company exported 2.64 MnT of steel, up 43% y-o-y and accounted for 18% of total sales, as against 12% in FY 2018-19.

Revenue from operations fell 17% y-o-y at Rs 64,262 crores due to lower sales volumes as well as a 14% decline in realisations. The impact on margins was partially offset by the lower cost of raw materials, lower fuel costs and source mix efficiencies. Cost reduction strategies like optimising fuel consumption at blast furnaces, reducing coke moisture, utilisation of pipe conveyor system for the transport of iron ore from mines to reduce supply chain costs also helped the Company bring down costs.

Owing to the disproportionate fall in realisations, which was not offset by lower prices of input costs, the Company reported a 32% y-o-y decline in operating EBITDA to Rs.12,517 crores.

The depreciation charge for the year was Rs. 3,522 crores a marginal increase of 3% over the previous year. The finance costs for the year was Rs. 4,022 crores an increase of 6% over the previous year.

Consequently, the profit before tax before exceptional items declined by 52% to Rs 5,601 crores as compared to the previous year.

The Company made an impairment provision of Rs.1,309 crores for the following:

1. Rs. 852 crores towards diminution in value of investments, loans and interest thereon relating to certain overseas subsidiaries. The provisions were recognised based on increased uncertainty over restarting iron ore mining operations at Chile on account of the coronavirus outbreak.

2. Rs. 377 crores on interest receivables from an overseas subsidiary in USA based on the assessment of recoverable value of the US operations.

3. Rs. 80 crores towards retirement of certain fixed assets in India.

The Government of India in order to promote growth and investment and attract fresh investments in manufacturing announced reduction in corporate tax rate for domestic companies. Consequent to the changes, the Company assessed the impact of the Taxation Law (Amendment) Ordinance 2019 and decided to continue with the existing tax structure until the utilisation of accumulated minimum alternative tax (MAT) credit. However, in accordance with the accounting standards, the Company also assessed the outstanding deferred tax liability, and wrote back Rs 2,150 crores to the profit and loss account, assuming that it would migrate to the new tax regime at a future date.

Consequently, net profit was down to Rs 5,291 crores from Rs 8,121 crores a year earlier.

The Company's net worth stood at Rs 38,363 crores as on March, 31 2020 vis-a-vis Rs 34,893 crores as on March, 31 2019. Gearing (net debt-to-equity) was at 1.23x (as against 1.03x) and net debt to EBITDA stood at 3.78x (as against 1.97x).

(B) CONSOLIDATED RESULTS

The Company's revenue from operations on a consolidated basis for FY 2019-20 was Rs 73,326 crores. Operating EBITDA at Rs 11,873 crores registered a decline of 37% y-o-y, in line with the reduction in EBITDA at the standalone entity and increase in losses at the overseas entities.

The Company made an impairment provision of Rs 725 crores for iron ore mining operations at Chile and Rs 80 crores for retirement of certain fixed assets in India.

On a consolidated basis, the Group has written back Rs 2,225 crores on account of reversal of deferred tax liability following the changes in the corporate tax regime, assuming that the Company and one of its subsidiaries would later migrate to the new tax regime. Certain companies of the Group opted for the new tax rate from FY 2019-20, resulting in a reversal of deferred tax liabilities up to March 31, 2019 amounting to Rs 98 crores for the year ended March 31, 2020.

The Company's net profit reduced 48% y-o-y at Rs 3,919 crores for FY 2019-20 vis-a-vis a net profit of Rs 7,524 crores in the last financial year.

The performance and financial position of the subsidiary companies and joint arrangements are included in the consolidated financial statement of the Company.

The Company's net worth on March 31, 2020 was Rs 36,024 crores compared to Rs 34,345 crores on March 31, 2019. Its gearing (net debt to equity) at the end of the year stood at 1.48x (as against 1.34x as on March 31, 2019) and net debt to EBITDA stood at 4.50x (as against 2.43x as on March 31, 2019).

In terms of Section 134(3) (l) of the Companies Act, 2013, except as disclosed elsewhere in this Report, no material changes or commitments affecting the financial position of the Company have occurred between the end of the financial year and the date of this Report.

(C) OUTLOOK

The outbreak of Coronavirus (COVID-19) pandemic globally and in India is causing a significant disruption and slowdown of economic activity. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing and closures of non-essential services and the uncertainty associated with the lifting or reimposition of these restrictions, have further aggravated the business environment.

As a result, the IMF expects the global economy to contract sharply by 3% in CY 2020, in a baseline scenario, which assumes that the pandemic fades in the second half of CY 2020 and containment efforts can be gradually unwound. The IMF expects the global economy to grow by 5.8 percent in CY 2021 as economic activity normalises, helped by policy support by way of fiscal and monetary stimulus.

The recent PMI and IP prints unsurprisingly reflect plummeting economic activity across the US, EU and Japan. In China, economic activities are picking up from April 2020 onwards due to timely (and expected) fiscal and monetary measures which bodes well for the outlook for remainder of CY 2020. The synchronised policy measures across the globe, with about US$ 19 trillion (G-20 countries) of announcements (both monetary and fiscal), is expected to aid economic recovery. The partial lifting of lockdown restrictions is underway, and a possible re-emergence of contagion in such areas pose risks to the outlook.

The phased easing of restrictions in India also augurs well for the economic revival. Further, India unleashed policy stimulus equivalent to 10% of GDP or Rs 20 trillion to revive the economy.

Workforce remobilisation will be a key challenge for the core sectors of the economy. However, lower energy

prices and expectations of a normal monsoon are positive for consumption outlook. With this a gradual recovery in economic activities is expected in the second half of FY 2020-21.

I ndia's crude steel production declined 1.5% during the year and finished steel consumption grew by 1.4% in FY 2019-20. While there are headwinds in the domestic markets, but the likely supply side adjustments and elevated levels of exports should partially mitigate the weaker domestic demand. A gradual recovery in domestic demand is expected in the second half of FY 2020-21.

India's annual consumption of steel is now 100 MnT. Given the large market size it attracts imports of steel from various countries notably FTA nations (South Korea, Japan, ASEAN). As on March 2020, about 64% of steel imports originates from the FTA countries where the import duty is nil. This poses a threat to the health of domestic steel industry necessitating close monitoring and effective remedial measures.

India's growing urban infrastructure and manufacturing sectors indicate that demand for steel is likely to remain robust in the coming years. Several government initiatives, such as providing affordable housing, expanding road and railway networks, developing the domestic shipbuilding industry, opening up the defence sector to private participation, and growth in the automobile sector are expected to create significant demand for steel in the country. The National Steel Policy 2017 envisages construction & infrastructure to grow at a CAGR of 7%. from FY 2015-16 to FY 2030-31.

In the Union Budget 2020-21, the government announced its plan to invest Rs 100 trillion in infrastructure over the next five years. The government is also targeting to attract Rs 50 trillion investments in the railways sector via public-private partnerships by FY 2029-30. Blueprints are also being prepared for the development of gas-grids, water-grids, i-ways (communication networks) and regional airports, on the lines of 'One Nation-One Grid' for power.

For India to become a U.S.$5 trillion economy, the infrastructure sector will serve as a critical pillar of economic growth. Accordingly, demand for steel is projected to remain robust in the coming years. Under the New Steel Policy, the government targets to increase steel production capacity to about 300 MTPA by 2030.

To participate in the strong India growth story, the Company laid out an expansion plan.

3. BUSINESS IMPACT OF COVID-19

Coronavirus 2019 (COVID-19), an infectious disease with leads to acute respiratory symptoms and can also lead to loss of life, was first identified in December 2019. Since then the health hazard spread to most parts of the

world, with the World Health Organisation terming it as an ongoing pandemic.

The growing influence of the disease led to nationwide lockdowns across the globe, which in turn severely impacted economic activity. The International Monetary Fund has drastically slashed the global economic growth forecast for 2020 and even alluded that the economic downturn induced by the pandemic could be worse than the 2008-09 financial crisis. It has particularly drawn attention to the fallout in emerging and developing countries, which are expected to be the hardest hit.

Following the COVID-19 outbreak in India, the government announced the first phase of the nationwide lockdown for 21 days from March 25, 2020 to contain the spread of the infection.

Under the circumstances, the Company forthwith decided to temporarily scale down or suspend operations at various locations to support government efforts. Since steel is a continuous flow process industry and steel is classified as an essential service under the Essential Services and Management Act (ESMA), the guidelines issued by Ministry of Home Affairs (MHA) permitted steel plants to continue their operation during lockdown. However, the constrained movement of people and materials, the shutting down of operations in supplier plants and customer business, affected the Company's plant operations.

During the second phase of the nationwide lockdown that lasted till May 3, certain additional activities in non-containment zones were permitted. The Company resumed operations at all locations with permission from the local administration to begin work. It put in place comprehensive protocols on social distancing in all its plants and offices in compliance with MHA guidelines.

While extending the lockdown on May 4, MHA issued revised guidelines under which industries/industrial establishments, including continuous process ones and their supply chain components, could operate in urban and rural areas. Inter-state transport of goods and materials were also permitted without any interruption. In keeping with these guidelines, the Company has been continuing its operations and gradually ramping up the capacity.

The Company is making all efforts to expand capacity utilisation. The domestic demand is expected to remain subdued in the near term with a vast majority of its customers across the automotive, construction, engineering and capital goods sector still unable to resume full operation. The Company intends to focus more on the export markets to improve capacity utilisation, defray fixed costs over a higher base, generate cash flows and liquidate stocks. It is also working on multiple initiatives to boost liquidity through tie-up of additional term debt and short-term loans to strengthen working capital.

As a responsible corporate citizen, JSW Steel has also acted with alacrity in the emergency situation. JSW Group has committed Rs 100 crores to the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM-CARES Fund) to support its relief efforts.

The Group has also pledged assistance to following initiatives in addition to the above contribution:

- Earmarked funds to source and import ventilators for immediate use and enable funding of testing Kits as well as Personal Protective Equipment (masks, gloves etc.) for healthcare workers.

- Provided communities around the JSW Group facilities with food and staples.

- Converted a number of facilities across JSW Group locations to isolation wards, thereby reducing the stress on community hospitals in the areas.

4. TRANSFER TO RESERVES

The Board of Directors has decided to retain the entire amount of profit in the profit and loss account. Accordingly, the Company has not transferred any amount to the 'Reserves' for the year ended March 31, 2020.

5. DIVIDEND

The Board of Directors of the Company has approved a Dividend Distribution Policy on January 31, 2017, in accordance with the Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015. The Policy is available on the Company's website: www.jsw.in/investors/ investor-relations-steel.

In terms of the Policy, Equity Shareholders of the Company may expect Dividend if the Company has surplus funds and after taking into consideration relevant internal and external factors enumerated in the policy for declaration of dividend. The policy also enumerates that efforts will be made to maintain a dividend payout (including dividend distribution tax and dividend on preference shares, if any) in the range of 15% to 20% of the consolidated net profits of the Company after tax, in any financial year, subject to compliance of covenants with Lenders / Bond holders.

In line with the said policy, the Board has, subject to the confirmation of the Members at the ensuing Annual General Meeting, paid dividend at the stipulated rate of 0.01% per share on the 48,54,14,604 0.01% Cumulative Redeemable Preference Shares (proportionately considering seven instalments of redemption (Rs0.00028861 per share) for the period April 1, 2019 up to the date of its redemption, that is March 13, 2020.

The Board considering the Company's performance and the financial position for the year under review, has also recommended payment of dividend at Rs 2 per equity

share on the 241,72,20,440 equity shares of Rs 1 each for the year ended March 31, 2020, subject to the approval of the Members at the ensuing Annual General Meeting. The total outflow, on account of equity dividend, will be Rs 483 crores, vis-a-vis Rs 1195 crores (including Dividend Distribution Tax) paid for FY 2018-19.

6. PROSPECTS

A report on the Management Discussion and Analysis covering prospects is provided as a separate section in the Annual Report.

7. MANAGEMENT DISCUSSION AND ANALYSIS

A detailed report on the Management Discussion & Analysis is provided as a separate section in the Annual Report.

8. PROJECTS & EXPANSION PLANS

With a strategic objective of incremental capacity creation at a low specific investment cost so that it remains return-accretive, the Board of Directors had approved key projects to:

• Expand overall steelmaking capacity from 18 MTPA to 24 MTPA

• Enrich the product mix with additional downstream capacity

• Acquire and develop iron ore mines to achieve raw material security

• Achieve cost reduction through backward integration

The Company is currently implementing a capex plan of Rs 48,715 crores over a five-year period from FY 2017-18 to FY 2021-22.

In October 2019, the Company revised down the planned capex for FY 2019-20 to Rs 11,000 crore (from Rs 15,700 crore as announced in May 2019). The actual cash spend for the year stood at around Rs 10,200 crore.

The lockdown announced by the government in March 2020 brought its own challenges. Its subsequent extensions to contain the spread of COVID-19, constrained project activity at various sites owing to the non-availability of requisite labour, material and restrictions on movement.

Work at Dolvi resumed soon after permission to restart the project activities was received towards the end of April 2020, but with the steady outflux of contractual labour back to their homes and the uncertainty about their return, operations remain challenging. Foreign experts from the Company's technology and equipment suppliers have been unable to visit the site owing to international travel restrictions, thus impacting the commissioning schedule. The Company is working on mitigation plans to overcome these challenges.

The Company has undertaken a detailed exercise to prioritise all planned and discretionary spends with the twin objective of conserving liquidity while ensuring that key ongoing strategic projects that are in advanced stages are completed and commissioned on priority.

Update on all key projects are as below:

(A) Upstream Projects - Augmenting crude steel capacity

at Vijayanagar and Dolvi

1) I n Vijayanagar, the Company is installing a new 160T Zero Power Furnace and 1 x 1.4 MTPA Billet Caster along with associated facilities at SMS-3 to enhance steelmaking capacity. Installation of a new Wire Rod Mill No.2 of 1.2 MTPA capacity to enhance plant capacity is also on track. Capacity upgradation of BF-3 from 3.0 MTPA to 4.5 MTPA, along with the associated auxiliary units, is also under implementation.

2) Owing to limited availability of manpower and non-availability of foreign experts due to travel bans across the globe, the expansion project at Dolvi from 5 MTPA to 10 MTPA is likely to get delayed into the second half of FY 2020-21. The major facilities included in the project are 4.5 MTPA Blast furnace with a 5 MTPA Steel Melt Shop, a 5 MTPA Hot Strip Mill, 8 MTPA pellet plant and 4 kilns of 600 TPD LCPs.

(B) Enriching product mix

1) A new 1.2 MTPA continuous pickling line, as a part of the capacity expansion of CRM-1 complex from 0.85 MTPA to 1.80 MTPA, was commissioned at Vijayanagar in the first quarter of FY 2019-20 to improve the quality of HRPO products for automotive sector. Two new lines of 0.45 MTPA each for construction grade galvanised products are also under implementation. The entire CRM-1 complex capacity expansion at Vijayanagar from 0.85 MTPA to 1.80 MTPA is expected to be commissioned progressively in Q2 and Q3 of FY 2020-21.

2) A new 0.3 MTPA line for colour coated products is also underway in Vijayanagar and is expected to be commissioned during second half of FY 2020-21.

3) Modernisation and capacity enhancement at Vasind and Tarapur by increase in GI/GL capacity by 0.9 MTPA and increase in colour coating capacity by 0.3 MTPA. The projects are expected to be commissioned in phases during second half of FY 2020-21.

4) Capacity enhancement of Pre-Painted Galvalume line (PPGL) at Kalmeshwar by 0.22 MTPA. The project is expected to be commissioned during second half of FY 2020-21.

Certain projects comprising the continuous annealing line at Vasind, additional tin plate line of 0.25 MTPA at Tarapur and colour coated line at Rajpura, which are part of the Company's plan to enhance its product-mix, have been put on hold for recalibration of the total capital outlay.

(C) Cost reduction projects and manufacturing integration

1) Setting up of 8 MTPA pellet plant and 1.5 MTPA coke oven plant at Vijayanagar:

With a view to reduce its dependence on expensive lump iron ore, the Company has decided to set up an 8 MTPA pellet plant at Vijayanagar. The Company has also decided to set up a 1.5 MTPA coke oven plant at Vijayanagar to bridge the current and expected gaps in the coke availability. Both these projects are expected to provide significant cost savings. Pellet plant is likely to be commissioned by the second half of FY 2020-21.

2) Phase-2 coke oven plant of 1.5 MTPA at Dolvi:

The Company is setting up a second line of

1.5 MTPA coke oven plant along with Coke Dry Quencher (CDQ) facilities to cater to the additional coke requirement for the crude steel capacity expansion to 10 MTPA at Dolvi. This project is expected to be commissioned by the second half FY 2020-21.

3) Setting up 175 MW and 60 MW power plants at Dolvi:

The Company is setting up 175 MW Waste Heat Recovery Boilers (WHRB) and a 60 MW captive power plant to harness flue gases and steam from CDQ. These power plants are expected to be commissioned in the second half of FY 2020-21.

All the projects stated above are part of the Company's cumulative capex spend of Rs 48,715 crores over FY 2018-2022. The cumulative cash outflow in the last three years has been Rs 23,928 crores. The strategic plan is to spend about Rs 8,200 crores in FY 2020-21 on project capex, while spending a dedicated Rs 800 crores towards operationalising the seven mines acquired through auctions in Karnataka and Odisha. Thus, the total planned capex for FY 2020-21 is being revised to about Rs 9000 crores.

9. ACQUISITION OF MINES

Backward integration and raw material security are key components of the Company's future strategy. This backward integration would secure critical raw materials for direct use at its facilities, that would help protect the Company from variations in raw material prices.

The Company successfully bid for six iron ore mines in Karnataka at auctions conducted in October 2016 and October 2018. All these mines were made operational during the fiscal year 2019-20. The aggregate iron ore from the six iron ore mines was 4.1 MTPA. The Company has also been declared as a "preferred bidder" for three additional mines in the auction held by the Government of Karnataka in July 2019. These mines have estimated iron resources of 93 MnT. These nine mines are expected to contribute approximately 30% to the ~22 MnT annual iron ore requirement for the Company's largest steel plant, Vijayanagar Works.

The Odisha Government successfully completed auction of 22 (from about 25) iron ore mines which were due to expire on March 31, 2020. In FY 2019-20, the Company was declared a "Preferred Bidder" for four iron ore mines in the state of Odisha, with Iron ore reserves linkage of more than 1,100 MnT. These four mines in Odisha are expected to contribute the entire iron ore requirements of Dolvi and Salem.

10. TECHNICAL COLLABORATION WITH JFE STEEL CORPORATION, JAPAN (JFE)

JSW's technical collaboration with JFE Steel Corporation, Japan (JFE) which started in 2010 enters its 10th successful year in FY 2019-20. This year witnessed strong working ties between the technical members of both the companies to drive improvements not just in product quality and operational efficiency but also in establishing new products and enhancing customer value.

The strategic technical collaboration with JFE Steel has added significant value to the Company, both in terms of products and services, thereby enriching the product mix of the Company. The Company has developed a wide range of steel for critical auto end use applications such as outer body panels, bumper beams and other crash resistant components with strength levels up to 980 MPA. The continuous support received from JFE in the form of technical assistance has resulted in expeditious resolution of issues observed during commercial production/approval of stipulated licensed grades.

The collaboration with JFE has immensely helped the Company in imbibing the technological best practices. It has further created a culture of continuous learning and process improvements, which ensure medium to long-term value creation.

During this year, there has been several visits of JFE Steel's problem solving experts to different plant locations of the Company that has helped quick resolution of many important operational problems. At market front, JFE Steel's experience and understanding about automotive and electrical segments have also been successfully leveraged to gain customer satisfaction. This has helped the Company to consolidate its leadership position in value added user industries in India like Automotive Steel

and Electrical Steel with wide mix of product offerings, best-in-class product quality, shorter lead time and expert application support.

11. SUBSIDIARY and JOINT VENTURE (JV) COMPANIES

The Company has 51 direct and indirect subsidiaries and eight JVs as on March 31, 2020 and acquired or incorporated certain domestic subsidiaries during the year. On December 27 ,2019, the Group also entered into an agreement for the sale of 39% stake in Geo Steel LLC to Georgian Steel for US$ 23.08 million. The transaction was completed during FY 2019-20 and following the sale, Geo Steel ceased to be a JV of the Company. There has been no other material change in the nature of the business of the subsidiaries.

As per the provisions of Section 129(3) of the Act, a statement containing the salient features of the financial statements of the Company's subsidiaries and JVs in Form AOC-1 is attached to the financial statements of the Company.

I n accordance with provisions of Section 136 of the Act, the standalone financial statements and consolidated financial statements of the Company, along with relevant documents and separate audited accounts in respect of the subsidiaries, are available on the website of the Company. The Company will provide the annual accounts of the subsidiaries and the related detailed information to the shareholders of the Company on specific request made to it in this regard by the shareholders.

The details of the major subsidiaries and JVs are given below:

(A) INDIAN SUBSIDIARIES

1) JSW STEEL COATED PRODUCTS LIMITED (JSW STEEL COATED)

JSW Steel Coated Products Limited is the Company's wholly-owned subsidiary and caters to both domestic and international markets. With three manufacturing facilities at Vasind, Tarapur and Kalmeshwar in the state of Maharashtra, this Company is engaged in the manufacture of value-added flat steel products comprising tin plates, galvanised and Galvalume coils/sheets and colour-coated coils/sheets.

JSW Steel Coated reported a production (Galvanising / Galvalume products / Tin Product) of 1.77 MnT, an increase by 1% y-o-y this year. Its sales volume increased by 4% y-o-y to 1.86 MnT during FY 2019-20.

The revenue from operations for the year under review was Rs 11,675 crores. The operating EBITDA during FY 2019-20 was Rs 550 crores as compared to Rs 393 crores in FY 2018-19. The operating EBITDA margin during FY 2019-20 was higher as the fall in realisations was more than compensated by the fall in the input prices of Hot Rolled Coils, Zinc and paints. The operating EBITDA margin was 5% as compared to 3% in FY 2018-19. The net profit after tax stood at Rs 296 crores compared to Rs 80 crores in last financial year.

2) AMBA RIVER COKE LIMITED (ARCL)

Amba River Coke Limited (ARCL) is a wholly-owned subsidiary of the Company and has set up a 1 MTPA coke oven plant and a 4 MTPA pellet plant. ARCL produced 1.01 MnT of coke and 3.55 MnT of pellet during FY 2019-20. The coke and pellets produced are primarily supplied to the Dolvi unit of the Company. The operating EBITDA for the year under review was Rs 388 crores compared to Rs 434 crores in FY 2018-19. Its profit after tax increased to Rs 194 crores in FY 2019-20 from Rs 176 crores in the previous year.

3) JSW INDUSTRIAL GASES PRIVATE LIMITED (JIGPL)

JSW Industrial Gases Private Limited (JIGPL) is a wholly owned subsidiary of the Company. JSW Steel sources oxygen, nitrogen and argon from JIGPL for its Vijayanagar plant. The profit after tax was Rs 44 crores in FY 2019-20 vis-a-vis Rs 28 crores in FY 2018-19.

4) JSW VALLABH TINPLATE PRIVATE LIMITED (JSWVTPL)

The Company's stake in JSWVTPL increased to 73.55% in FY 2019-20 due to acquisition of Vardhman Industries Limited. The Company produces tin plates and has a capacity of 1.0 lakh tonnes. With a production of 0.84 lakh tonnes during FY 2019-20, its EBITDA for the year was Rs 47 crores compared to Rs 23 crores the previous year. Its net profit after tax for FY 2019-20 was Rs 12 crores against a net loss of Rs 4 crores in FY 2018-19.

5) OTHER PROJECTS TO BE UNDERTAKEN BY DOMESTIC SUBSIDIARIES

The Company had announced a few greenfield projects in the states of West Bengal, Jharkhand and Odisha but is not certain when they will be fully operational:

• JSW Bengal Steel Limited (JSW Bengal Steel)- As a part of its overall growth strategy, the Company had planned to set up a 10 MTPA capacity steel plant in phases through its subsidiary, JSW Bengal Steel. However, due to uncertainties in the availability of key raw materials such as iron ore and coal after the cancellation of the allotted coal blocks, the JSW Bengal Steel Salboni project has been put on hold.

• JSW Jharkhand Steel Limited (JJSL)- was incorporated in relation to the setting up of a 10 million tonne steel plant in Jharkhand. The Company is currently in the process of obtaining approvals and clearances necessary for the project.

• JSW Utkal Steel Limited (JUSL) was formed for setting up an integrated steel plant of 12 MTPA steel capacity and a 900 mw captive power plant in Odisha. The Group is in the process of obtaining the necessary approvals and licenses for the project.

(B) OVERSEAS SUBSIDIARIES

1) PERIAMA HOLDINGS LLC AND ITS SUBSIDIARIES VIZ. JSW STEEL (USA) INC - PLATE AND PIPE MILL OPERATION AND ITS SUBSIDIARIES - WEST VIRGINIA, USA-BASED COAL MINING OPERATION

a) Plate and pipe mill operation

JSW Steel (USA) is in the process of modernising the existing facilities at Baytown, Texas. Phase 1 of the project is expected to be operational by the first half of FY 2020-21.

The unit produced 0.28 million net tonnes of plates and 0.07 million net tonnes of pipes during the year with capacity utilisation of 30% and 12%, respectively. However, the global trade war and slowdown in the US market impacted its performance. During FY 2019-20, JSW Steel (USA) generated negative EBITDA of US$ 31.69 million (Rs214 crores) compared to the previous year's positive EBITDA of US$ 26.09 million (Rs190 crores). Net loss after tax for FY 2019-20 was US$ 117.82 million (Rs822 crores) compared to Net loss after tax of US$ 53.40 million (Rs363 crores) in FY 2018-19.

b) Coal mining operation

Periama Holdings LLC has 100% equity interest in coal mining concessions in West Virginia, US along with permits for coal mining and owns a 500 TPH coal-handling and preparation plant.

During the year the total production stood at 123,458 NT as against 84,743 NT during FY 2018-19. Its coal mining operations generated EBITDA of US$ 4.23 million (Rs30 crores) for the year compared to EBITDA of US$ 5.44 million (Rs35 crores) the previous year. Loss after tax stood at US$ 11.31 million (Rs80 crores) vis-a vis Loss after tax of US$ 16.65 million (Rs116 crores) in FY 2018-19.

2) ACERO JUNCTION HOLDINGS, INC (ACERO) AND ITS WHOLLY OWNED SUBSIDIARY JSW STEEL USA OHIO INC JSWSUO)

JSWSUO has steelmaking assets consisting of 1.5 million net tonnes per annum (MNTPA) electric arc furnace (EAF), 2.8 (MNTPA) continuous slab caster and a 3.0 (MNTPA) hot strip mill at Mingo Junction, Ohio in USA.

It reported a total HRC production of 0.31 MnT during FY 2019-20. Due to global trade war and a slowdown in the metal sector that led to declining steel prices, JSW Ohio took an inventory write down in the year and generated an EBITDA loss of US$ 113.07 million (Rs792 crores) compared to EBITDA loss of US$ 41.62 million (Rs 294 crores) last financial year*. Loss after tax for FY 2019-20 was US$ 144 million (Rs1,011 crores) compared to Loss after tax of US$ 45.74 million (Rs323 crores) in FY 2018-19*.

*Performance for FY 2018-19 is calculated from date of acquisition on June 15, 2018.

3) JJSW STEEL ITALY PIOMBINO S.P.A. (JSW PIOMBINO) (FORMERLY KNOWN AS AFERPI S.P.A), PIOMBINO LOGISTICS S.P.A. - A JSW ENTERPRISE (FORMERLY KNOWN AS PIOMBINO LOGISTICS S.P.A.) AND GSI LUCCHINI S.P.A

JSW Piombino produces and distributes special long steel products, viz. rails, wire rods and bars. It has a plant at Piombino in Italy, comprising a Rail Mill (0.32 MTPA), Bar Mill (0.4 MTPA), Wire Rod Mill (0.6 MTPA) and a captive industrial port concession.

PL manages the logistics infrastructure of Piombino's port area. The Port managed by PL has the capacity to handle ships up to 60,000 tonnes.

During FY 2019-20, operations generated an EBITDA loss of Euro 31.91 million (Rs 236 crores) compared to EBITDA loss of Euro 17.37 million (Rs161 crores) last year. Loss after tax for the year amounted to Euro 49.1 million (Rs364 crores) against loss after tax of Euro 15.3 million (Rs 139 crores) in FY 2018-19*.

*Performance for FY 2018-19 is calculated from date of acquisition on July 24, 2018.

(C) JOINT VENTURE COMPANIES

1) MONNET ISPAT & ENERGY LIMITED (MIEL)

Pursuant to the Corporate Insolvency Resolution process under the Insolvency Bankruptcy Code, 2016, initiated on July 18 2017, the National Company Law Tribunal (NCLT) on 24 July 2018 (order date) approved (with modifications) the resolution plan submitted by the consortium of JSW Steel Ltd. and AION Investments Private II Limited. The consortium completed the acquisition of Monnet Ispat & Energy Limited (MIEL) through their jointly controlled entity, Creixent Special Steels Limited (CSSL) on August 31, 2018. The Company has made an investment of Rs 375 crores through equity and redeemable preference shares in CSSL to acquire joint control in MIEL and has an effective shareholding of 23.1% in MIEL.

MIEL has steel plants in the state of Chhattisgarh with blast furnace and DRI facility of 1.5 MTPA.

The operating EBITDA loss was Rs 46 crores whereas the net loss after tax was Rs 492 crores in FY 2019-20.

2) JSW SEVERFIELD STRUCTURES LIMITED AND ITS SUBSIDIARY JSW STRUCTURAL METAL DECKING LIMITED (JSSL)

JSW Severfield Structures Limited (JSSL) is operating a facility to design, fabricate and erect structural steel work and ancillaries for construction projects. These projects have a total capacity of 55,000 TPA at Bellary, Karnataka. JSSL produced 95,738 tonnes (including job work) during FY 2019-20. Its order book stood at Rs 1,012 crores (76,311 tonnes), as on March 31, 2020 and EBITDA in FY 2019-20 increased to Rs 102 crores from Rs 63 crores in FY 2018-19. The profit after tax for FY 2019-20 was Rs 50 crores, as compared to Rs 28 crores in FY 2018-19.

JSW Structural Metal Decking Limited (JSWSMD), a subsidiary company of JSSL, is engaged in the business of designing and roll forming of structural metal decking and accessories such as edge trims and shear studs. The plant's total capacity is 10,000 TPA. EBITDA in FY 2019-20 increased to Rs 12 crores from Rs 5 crores in FY 2018-19. The profit after tax for FY 2019-20 was Rs 9 crores from Rs 2 crore in FY 2018-19.

3) JSW MI STEEL SERVICE CENTRE PRIVATE LIMITED (MISI JV)

JSW Steel Limited and Marubeni-Itochu Steel signed a JV agreement on 23 September 2011 to set up steel service centres in India.

The JV Company had started the commercial operation of its steel service centre in western India (near Pune), with 0.18 MTPA initial installed capacity in March 2015. MISI JV has also commissioned its steel service centre in Palwal, Haryana, with 0.18 MTPA initial capacity. The service centre is equipped to process flat steel products, such as hot-rolled, cold-rolled and coated products. Such products offer just-intime solutions to automotive, white goods, construction and other value-added segments. EBITDA in FY 2019-20 was Rs 21 crores as compared to Rs 24 crores in FY 2018-19. MISI JV earned a profit after tax of Rs 4 crores during FY 2019-20 as compared to Rs 6 crores during FY 2018-19.

(D) MERGER OF WHOLLY-OWNED SUBSIDIARIES

The Board of Directors of the Company at its meeting held on October 25, 2018, considered and approved the Scheme of Amalgamation pursuant to Sections 230-232 and other applicable provisions of the Companies Act, 2013, providing for the merger of its wholly owned subsidiaries, Dolvi Minerals and Metals Private Limited, Dolvi Coke Projects Limited, JSW Steel Processing Centre Limited, and JSW Steel (Salav) Limited with the Company (Scheme).

The Mumbai Bench of the National Company Law Tribunal (NCLT), through its order dated June 6, 2019, and the Ahmedabad Bench of the NCLT, through its order dated August 14, 2019, approved the Scheme. Accordingly, the Company has accounted for the merger under the pooling of interest method retrospectively, as prescribed in IND AS 103 - Business Combinations of entities under common control. The previous year's numbers have been accordingly restated.

(E) ACQUISITION DURING THE YEAR VARDHMAN INDUSTRIES LIMITED (VIL)

The Company submitted its Resolution Plan for acquisition of VIL under the Insolvency and Bankruptcy Code, 2016 ("IBC") and the Company's resolution plan was approved by the committee of creditors of VIL on August 10, 2018. Thereafter, the Hon'ble National Company Law Tribunal ("NCLT") by its orders dated December 19, 2018 and April 19, 2019, and the Hon'ble National Company Law Appellate Tribunal ("NCLAT"), by its orders dated December 4, 2019 and December 11 2019, approved the resolution plan submitted by the Company ("Approved Resolution Plan"). Pursuant to the Approved Resolution Plan, the Company infused Rs 63.50 crores in VIL and issued equity shares and compulsorily convertible debentures of VIL in lieu thereof. The funds have been utilised in accordance with the resolution plan to pay-off the financial and operational creditors of VIL. The Company has successfully implemented the Approved Resolution Plan as on December 31, 2019, and holds 100% of the equity shares and the compulsorily convertible debentures issued by VIL.

VIL manufactures colour coating products. VIL has its manufacturing unit at Rajpura, District, Patiala in Punjab. VIL has a colour coating line with a capacity to produce 40,000 tonnes per annum and a small service center to cater to white goods customers in North India.

VIL also owns 23.55% of equity of JSW Vallabh Tinplate Private Limited (JSWVTPL). Consequent to the acquisition of VIL, JSWVTPL has become a subsidiary of the Company. VIL's strategic presence in the North India makes it easier for the Company to service this market.

(F) ON-GOING ACQUISITION

BHUSHAN POWER AND STEEL LIMITED (BPSL)

The Company has submitted a resolution plan for the acquisition of Bhushan Power and Steel Limited ("BPSL") ("Resolution Plan"), a company currently undergoing corporate insolvency resolution process ("CIRP") under the provisions of the Insolvency and Bankruptcy Code 2016 ("IBC"). The committee of creditors of BPSL ("CoC') unanimously approved the Resolution Plan. Subsequently, the National Company Law Tribunal approved the Resolution Plan on 5 September 2019, but made material changes amounting to modification of the Resolution Plan and did not grant protection to BPSL from criminal and financial liability ("NCLT Order").

The NCLT Order was therefore challenged by the Company before the Hon'ble National Company Law Appellate Tribunal ("NCLAT") ("JSW Appeal"). NCLAT passed the final judgement dated February 17, 2020, allowing the JSW Appeal ("NCLAT Order") and held that the protection under the Section 32A of the IBC is available to BPSL and its assets, and therefore, the attachment of assets by the Enforcement Directorate was illegal and without jurisdiction.

• CoC filed an application on February 27, 2020, in CoC's Special Leave Petition pending before the Hon'ble Supreme Court ("SC") seeking a declaration that the attachment by Enforcement Directorate and all the consequential proceedings stand quashed and discharged against BPSL. The Company filed an Additional Affidavit on March 5, 2020, seeking speedy disposal of the CoC's application to enable the Company to implement the Resolution Plan. The erstwhile promoters and Operational Creditors challenged the NCLAT Order before SC. These appeals along with the CoC's Petition (collectively referred to as "SC Appeals"), is pending to be heard before the SC. Closure of the transaction is subject to Company getting satisfactory clarifications/reliefs.

BPSL is a fully integrated steel making company with a steelmaking capacity of 2.75 MTPA. BPSL manufactures and markets flat and long products from its units in Odisha, Kolkata, and Chandigarh in India. The products manufactured by these units cover the entire steel value chain, ranging from

pig iron, sponge iron, billets, hot rolled coils, cold rolled coils, galvanised sheets, precision tubes, black pipe, cable tapes, to carbon and special alloy steel wire rods and rounds conforming to IS and international standards. BPSL serves agriculture and irrigation, fire-fighting/HVAC, construction, gas/ oil pipelines, cement/sugar/paper, automobiles, white goods, bicycles, steel/power projects, and general engineering industries. The company is strategically located in the mineral rich state of Odisha with close proximity to iron ore mines. This acquisition enables deeper access to the markets of East and North India, enabling quick servicing of customer orders and savings in freight cost.

ASIAN COLOUR COATED ISPAT LIMITED (ACCIL):

JSW Steel Coated Products Limited ("JSWSCPL") had submitted a Resolution Plan for Asian Colour Coated Ispat Limited ("ACCIL"), a company undergoing insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 ("IBC"). The Committee of Creditors of ACCIL has approved the Resolution Plan submitted by JSWSCPL and issued a Letter of Intent ("LOI") dated July 6, 2019, to JSWSCPL.

The closure of the transaction is subject to obtaining necessary approval from the National Company Law Tribunal, New Delhi ("NCLT"). The Resolution Professional of ACCIL has filed the Resolution Plan before the NCLT for its approval and the same is pending before NCLT.

ACCIL manufactures downstream steel products and has two manufacturing units located at Bawal, Haryana and Khopoli, Maharashtra.

12. ENVIRONMENTAL INITIATIVES

In its commitment to conserve natural resources, reduce emissions and hazardous discharges to the environment and preserve biodiversity, the Company has undertaken extensive planning and investments to reduce long-term environmental impact and risks. The business has proactively harnessed innovation, technology adoption and process changes in keeping with this objective. The efforts have been reinforced by set targets and goals that will aid the creation of lasting value for all stakeholders.

The approach has resulted in several environmental initiatives to reduce carbon emission, conserve resources like water, energy and input materials, minimise waste and increase recirculation, recycling and enhancement of local biodiversity.

The Company has established a Board-level Business Responsibility Reporting Committee which reviews the sustainability parameters every quarter.

In light of the rapid developments related to climate change viz. technology, regulations, taxation, investors'

growing expectations, disclosures and so on, the Company has constituted a Climate Action Group (CAG) with cross-functional expertise, encompassing R&D, strategy, operations, communications etc. Facilitated by the Corporate Sustainability Team, the CAG operates as a central think-tank, to formulate and drive the climate change mitigation strategy and actions for the Company towards a low carbon road ahead.

With a seamless mechanism in place to review stakeholder issues periodically, the Company has been undertaking extensive planning, process optimisation and investments in technology and innovation to limit environmental risks.

REDUCTION OF EMISSIONS AND DISCHARGES

Air emissions

The Company continues to upgrade and implement better pollution control systems while seeking expansion and improvement in its plans. FY 2019-20 saw many initiatives to reduce emission and dust.

- In Vijayanagar, Online Continuous Emission Monitoring Systems (OCEMS) were installed in 71 stacks for measuring 95 parameters that provide accurate and continuous information on particulate matter or gaseous emission.

- Upgradation of SMS-1 primary and secondary fume extraction systems and SMS-2 primary fume extraction systems to reduce roof top emission at Vijayanagar.

- Installation of Maximised Emission Reduction of Sintering (MEROS) to treat process gases of Sinter Plant 4 at Vijayanagar, which help reduce emissions.

- I nstallation of dedusting systems at Vijayanagar's RMHS, pellet plant, BF-1 & 2 and Sinter Plant. The system is designed to achieve a work zone guarantee of <2mg/m3.

- In Dolvi, 12 dust extraction systems were installed at RMHS to reduce fugitive emission during transfer of raw material from belt conveyor and transfer points.

- RMHS open yards in Dolvi were fully covered with conventional/space frame covered shed to prevent dust emission during operation of the yard.

- Replacement of duct bends and plug duct leakages in proportioning house at the Dolvi plant to avoid dust leakage from damaged ducts. This increases efficiency of ESPs and reduces emissions.

CONSERVATION OF NATURAL RESOURCES

A) Water conservation and waste water treatment

Water is a crucial input in steel manufacturing operations. Hence the Company has undertaken focused water management initiatives to promote responsible water use for better conservation and reuse.

The following initiatives were carried out during the year:

- In Vijayanagar, 18 effluent monitoring devices were installed at six locations.

- The plant also began treatment of blast furnace recirculation water at SMS Gas Cleaning Plant. This helps reduce the pH of the water and hardness. It also reduces the total dissolved solids (TDS) in outlet effluent, resulting in lower water consumption.

- Vijayanagar uses six RO plants for recovery of makeup water and reuses treated blowdown water for secondary applications, thereby ensuring zero liquid discharge.

- In Salem, wastewater from Ultrafiltration RO Plant and Multigrade Filter is diverted to recycled water treatment plants. The recycled water is reused for plant makeup water.

- Effluent Treatment Plant installed at the Salem facility with a capacity of 125 KLD and a Zero Liquid Discharge system in Acid pickling plant to treat the effluent. This will help reduce fresh water consumption by approximately 85 KLD. The plant has also installed a Zero Liquid Discharge Effluent Treatment Plant with a capacity 30 KLD to treat the effluent from Air Cooled Condenser cooling tower.

B) Biodiversity

In the reported fiscal year, Vijayanagar undertook plantation activities in the adjoining reserve forest areas along with the Karnataka Forest Department across 434 acres of land. In all, 33% land has been planted. Till date 17,58,200 trees have been planted in the Vijayanagar Steel plant complex.

JSW Steel has also signed two MOUs with Bombay Natural History Society (BNHS), Mumbai and People for Environment (PFE), New Delhi for biodiversity assessment in the surroundings of the Complex. In Vijayanagar, the Company had also carried out aquifer mapping and hydrogeological studies of the aquifers in a 10 Km radius as a part of groundwater water conservation and recharge initiative.

C) Recycling of solid waste

The steel industry is the best place to implement circular economy principles and the Company's primary focus has been to maximise the consumption of waste.

The Company's integrated steel plants generate various types of solid waste as byproduct, such as fine dust from the pollution control systems, coke fines, slags, mill scales from other processes of steel manufacturing. The Company has built-in processes and capabilities to help the plants recycle and reuse the waste generated across processes.

Following are the key waste management measures undertaken during the year:

- Vijayanagar expanded its slag sand plant with an additional capacity of 125 tonnes per hour.

- The plant also supplied dry pit slag for road construction, and produced DRI Briquettes in Mill Scale Briquetting plant.

- In order to reduce bentonite use in iron ore palletisation, Vijayanagar Works replaced 25% of activated bentonite binder with fly ash in its Micro Pellet Plant.

- In Vasind, revamping of pickling line with the installation of granite pickling baths and covers has reduced effluent generation from 140 to about 70 cubic meter per day.

- Installation of 150 KL/day Acid Recovery Plant at Kalmeshwar has resulted in 90% sludge reduction.

Slag utilisation

Dolvi Works handles approximately 1.3 MTPA of Blast Furnace slag and 0.8 MTPA of Conarc Slag. The BF slag is 100% utilised in cement making and Conarc Slag is completely used in Land Reclamation of the ongoing expansion project.

For steel slag utilisation on various applications, the Company has engaged with several institutes/ research organisations like:

1. Central Road Research Institute (CRRI) for using steel slag instead of natural aggregated in highway road making.

2. Central Building Research Institute (CBRI) for using steel slag as construction material, replacing natural aggregates.

3. DR Slag Consultancy, Australia for utilisation of steel slag in various infrastructure projects.

4. A marine Infrastructure company for construction of break water structures using steel slag.

Dolvi Works is using steel slag in all upcoming internal roads. It continues to manufacture Paver Blocks using steel slag by which the waste is converted into a value added product.

Mangroves Restoration Project

The Company has initiated a voluntary Mangroves Restoration Project for strengthening the embankment and avoiding saline water ingression into farm lands.

Various measures were undertaken throughout the year that saw the involvement of 158 self-help groups (SHG) and covered six gram panchayats. The Company also initiated an 'Ornamental fishery' project in collaboration with the Mangrove Cell Foundation and launched a fish product processing training in collaboration with the Central Institute of Fisheries Education (CIFE).

Since 2016, a total of 10,55,435 mangrove saplings have been planted, with 3,50,000 saplings planted during the year.

Million Trees Plantation Mission

The Company has set a goal to plant one million trees in collaboration with the Forest Department in nearby degraded forest areas at Dolvi and Karav.

13. CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

The Company is committed to empowering communities and creating sustainable livelihoods. This is achieved through the thought leadership and implementation by ]SW Foundation, the organisation entrusted with the mandate of CSR for entire ]SW Group. Over the years, the Company has consistently invested in initiatives that help improve living conditions, promote social development, address social inequalities & environmental issues, preserve national heritage, promote sports and support rural development projects.

In the last three financial years, ]SW Steel has consistently increased the share of CSR expenditure. This is in line with the CSR committee's vision to build robust CSR capabilities that enable the organisation to create long-term and far-reaching impact.

The Company has been continuously increasing its spend on CSR initiatives every year and has spent an amount of Rs 43 crores, Rs 53 crores, and Rs 63 crores in the financial year 2016-17, 2017-18 and 2018-19 respectively. This reflects a year on year increase of 23%, 19%, and 14% respectively.

During the current financial year 2019-20, ]SW Steel has spent an amount of Rs 139.73 crores towards CSR expenditure, which is an increase of over 100% as compared to the previous year. While the implementation of programmes remains closely linked to the local context, the alignment with UN SDGs and dovetailing of best practices is also taken care while implementing CSR programmes. The overall approach is to provide holistic life cycle based interventions catering to all sections of society, age groups and those requiring extra attention. The strategy is to find the key connect amongst the various CSR thematic thrust areas to attain better complementarity, e.g. water interventions linked to agribusiness and livelihoods initiatives.

A significant part of CSR philosophy is community and employee driven. The Company's employees are actively invested in providing more technical, financial and

emotional support for the programmes in the vicinity of the plants. This ranges from support to the neonatal care unit at Bellary Government Hospital, waste collection drive in the localities, sanitation drives, mangrove plantation, awareness building programmes for local communities and other such activities.

The Company's CSR interventions have reached out to communities across more than 255 villages in 4 states of India with special focus on:

• Strengthening public health and nutrition with special focus on mothers, children & adolescent girls.

• Comprehensive water management leading not only to sustainable environment but also sustained agri-livelihoods, in turn affecting nutrition and poverty.

• Empowerment of women through JSW Shakti initiatives, i.e. (Rural BPO for women, promoting Self-Help Groups etc.). JSW Shakti is now registered as a Section 8 company to provide scaled up support to rural entrepreneurs, especially women across the country.

• Improving quality education in rural schools through infrastructure, training methodology and capacity building initiatives.

• Sanitation and waste management, single use plastic waste in particular.

• Well though environment upgradation programmes such as mangrove restoration etc.

The Company has also embarked on a number of long-term and multi-year programmes. The initiatives are focused in the areas of water, environment, agriculture, nutrition and education. With a view to bring together a number of stakeholders including the State governments of Maharashtra and Karnataka, the JSW Foundation has already initiated focused field studies, reviews and consultations with the communities. These programmes are still in the initial stages of implementation and expenditure will be ramped up accordingly in the coming months. In adherence to the CSR policy of the Company, all the interventions are formulated based on need assessment using different quantitative and qualitative methods. Moreover, social intervention programmes are adopted based on comprehensive evaluation.

The CSR programmes are monitored by both internal and external experts. As per the CSR policy, progress of the programmes is reviewed periodically by the Board-level CSR Committee, as well as the management at the sites. The Company through its Board and the CSR Committee follows a comprehensive approach to deliver socially inclusive and holistic interventions that help create equitable opportunities for the underprivileged and contribute to nation building.

In view of the sturdy foundation laid for the long-term projects in this fiscal and the envisioned scaling up of on-going CSR projects, the Company will continue to create value for its communities.

The disclosure as per Rule 9 of Companies (Corporate Social Responsibility Policy) Rules, 2014 is annexed to this Report as Annexure D.

14. INNOVATION AND TECHNOLOGY

The Company has always taken conscious efforts to adopt digital technologies to achieve business efficiencies, thus creating value for the business and keeping the Company ahead of its peers.

Keeping in with the Digital Vision, the Company has focused on boosting sales, enhancing throughput, reducing defects, increasing availability of assets and improving safety with the seamless adoption of innovative processes like Industry 4.0, Computer Vision, IoT, Robotics and Big-Data Analytics.

In the past year, the Company has launched over 200 projects on digital themes across manufacturing, sales and procurement (including critical raw materials such as iron ore and coal). With the expanded coverage of the program in its third year, the accruals for FY 2019-20 from digital projects was approximately Rs 450 crore, which is an increase of over 100% as compared to the previous year.

The Company's digital strategy is a holistic one that aims to address a number of key themes critical to all stakeholders. The Company will continue to utilise technology to ensure higher productivity from existing assets in the most cost-effective manner, and to oversee that new assets are built to plan while also enhancing safety and providing a world-class experience to customers and vendors alike.

15. HUMAN RESOURCES

The Company's Human Resources (HR) management practices ensure fair and reasonable process that are compliant with regulatory and governance requirements. The Company has developed a management framework that focuses on holistic growth of employees and aids them with tools that help in continuously learning and the development of new skills.

As a growing steel manufacturing enterprise, the Company's HR policies and industry-leading remuneration practices aim to attract and retain top talent, thus supporting the Company's long-term strategy and driving a sustainable performance.

Finding, retaining and developing the right talent has always been a core strategy in order to maintain high-productivity and a value-driven organisational culture. The Company finds it imperative to follow policies and regulations that produce an unbiased and safe working environment.

In the last fiscal, the Company focused on building systems and tolls that help track career paths, provide guidance to develop new skills, educate employees on varied topics and recognise and reward top performers.

A detailed report on Human Resource Management and initiatives implemented through the fiscal is part of the Management Discussion and Analysis.

16. INTEGRATED REPORT

The Securities and Exchange Board of India (SEBI), in its circular dated February 6, 2017, has advised the top 500 listed companies (by market capitalisation) to voluntarily adopt Integrated Reporting (IR) from FY 2017-18.

The Company published its first Integrated Report the same year in line with the International Integrated Reporting <IR> Framework laid down by the International Integrated Reporting Council (IIRC). The framework pivots the Company's reporting approach around the paradigm of value and its various drivers. It also reflects the Company's belief in sustainable value creation while balancing the utilisation of natural resources and social development in its business decisions.

An Integrated Report intends to give a holistic picture of an organisation's performance and prospects to the providers of financial capital and other stakeholders. It is thus widely regarded as the future of corporate reporting.

The previous Integrated Reports of the Company have been well-received by various stakeholders and recognised internationally for its disclosures. Over the past three years, the reporting approach of the Company has further evolved. Together with the <IR> Framework, its disclosures have been mapped with other leading frameworks and guidelines. These include:

• Global Reporting Initiative (GRI) Standards

• United Nations Sustainable Development Goals (UN SDGs)

• Carbon Disclosure Project (CDP)

• Principles under United Nations Global Compact (UNGC)

• National Guidelines on Responsible Business Conduct (NGRBC)

Accordance and attribution to disclosures under these guidelines, together with the articulation of Company's approach to long-term value creation, continue to truly better the Company's corporate reporting practices.

17. CORPORATE GOVERNANCE

The Company constantly endeavors to follow the corporate governance guidelines and best practices sincerely and disclose the same transparently. The Board is conscious of its inherent responsibility to disclose timely and accurate information on the Company's operations, performance, material corporate events as well as on the leadership and governance matters relating to the Company.

The Company has complied with the requirements of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015 regarding corporate governance. A report on the Corporate Governance practices and the Auditors' Certificate on compliance of mandatory requirements thereof are given as an annexure to this report and also available on the website of the company at https://www.jsw.in/investors/ investor-relations-steel.

18. BUSINESS RESPONSIBILITY/ SUSTAINABILITY REPORT

The Company is committed to pursuing its business objectives ethically, transparently and with accountability to all its stakeholders. The Company believes in demonstrating responsible behaviour while adding value to the society and the community, as well as ensuring environmental well-being with a long-term perspective.

The Business Responsibility Report (BRR) of the Company was being presented to the stakeholders as per the requirements of Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 describing the environmental, social and governance initiatives taken by the Company. Further, SEBI in its circular dated February 6, 2017, has advised the top 500 listed companies (by market capitalisation) to voluntarily adopt Integrated Reporting (IR) from FY 2017-18.

As stated earlier in the report, the current financial year marks the third year of the Company transition towards Integrated Reporting, focusing on the 'capitals approach' of value creation. The Company's third Integrated Report, includes the Company's performance as per the IR framework for the period April 1, 2019 to March 31, 2020.

The Company has adopted an integrated approach towards addressing biological diversity at various sites. The Company was among the pioneers to sign up and commit to the Indian Business and Biodiversity Initiative (IBBI), an initiative by the Confederation of Indian Industry (CII) in partnership with India's Ministry of Environment, Forest & Climate Change. Million Tree Plantation Project has been initiated in nearby degraded forest areas at Dolvi and Karav in a vision to achieve 1 million Tree plantation, in collaboration with forest department.

The Company has also provided the requisite mapping of principles of the National Guidelines on Responsible Business Conduct to fulfill the requirements of the Business Responsibility Report as per directive of SEBI, as well as between the Integrated Report and the Global Reporting Initiative ('GRI'). The Report, along with all the related policies, can be viewed on the Company's website (http://www.jsw.in/investors/investor-relations-steel).

19. DIRECTORS AND KEY MANAGEMENT PERSONNEL

In accordance with the provisions of Section 152 of the Companies Act, 2013 and in terms of the Articles of Association of the Company, Dr. Vinod Nowal (DIN 00046144) retires by rotation at the forthcoming Annual General Meeting and, being eligible, offers himself for re-appointment.

Mr. Malay Mukherjee (DIN 02861065) and Mr. Haigreve Khaitan (DIN 00005290) who were appointed as Directors of the Company in the category of Independent Director, hold office up to the conclusion of the ensuing Annual General Meeting of the Company ("first term" in terms of Section 149(10) of the Companies Act, 2013). The Company has received a notice under Section 160 of the Companies Act, 2013 from a shareholder of the Company proposing the re-appointment of Mr. Malay Mukherjee for the Office of Director of the Company in the category of Independent Director for a second term of upto July 27, 2025 or upto the conclusion of the 31st Annual General Meeting of the Company in the calendar year 2025, whichever is earlier and from another shareholder of the Company proposing the re-appointment of Mr. Haigreve Khaitan for the Office of Director of the Company in the category of Independent Director for a second term of upto September 29, 2025 or upto the conclusion of the 31st Annual General Meeting of the Company in the calendar year 2025, whichever is earlier. Further, in the opinion of the Board, Mr. Malay Mukherjee and Mr. Haigreve Khaitan are persons of high integrity, expertise and experience and qualify to be appointed as Independent Directors of the Company.

In terms of the Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014, all Independent Directors of the Company have enrolled themselves on the Independent Directors Databank and will undergo the online proficiency self-assessment test within the specified timeline unless exempted under the aforesaid Rules.

Pursuant to the recommendation of Nomination and Remuneration Committee, the Board of Directors at its meeting held on May 22, 2020, has, subject to the approval of the members at the forthcoming 26th Annual General Meeting of the Company scheduled on July 23, 2020, approved the re-appointment of Mr. Seshagiri Rao (DIN 00029136), as a Whole-time Director of the Company, designated as 'Joint Managing Director & Group CFO' for a period of 3 (three) years, with effect from April 6, 2020.

The proposals regarding the re-appointment of the aforesaid Directors are placed for the approval of the Shareholders.

There were no changes in the Board of Directors and Key Managerial Personnel of the Company, during the year under review.

20. POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION

Matching the needs of the Company and enhancing the competencies of the Board are the basis for the Nomination and Remuneration Committee to select a candidate for appointment to the Board.

The current policy is to have a balanced mix of executive and non-executive Independent Directors to maintain the independence of the Board and separate its functions of governance and management. As at March 31, 2020 the Board of Directors comprises 12 Directors, of which eight are non-executive, including two women directors. The number of Independent Directors is six, which is one half of the total number of Directors.

The policy of the Company on Directors' appointment, including criteria for determining qualifications, positive attributes, independence of a Director and other matters, as required under sub-section (3) of Section 178 of the Companies Act, 2013, is governed by the Nomination Policy. The remuneration paid to the directors is in accordance with the remuneration policy of the Company.

More details on the Company's policy on director's appointment and remuneration and other matters provided in Section 178(3) of the Act has been disclosed in the Corporate Governance Report, which forms a part of this report.

21. DECLARATION OF INDEPENDENT DIRECTORS

The Company has received necessary declaration from each of the Independent Directors under Section 149(7) of the Companies Act, 2013 that he/she meets the criteria of independence laid down in Section 149(6) of the Companies Act, 2013 and Regulation 25 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

22. BOARD EVALUATION

The Board carried out an annual performance evaluation of its own performance, the performance of the Independent Directors individually as well as the evaluation of the working of the Committees of the Board. The performance evaluation of all the Directors was carried out by the Nomination and Remuneration Committee. The performance evaluation of the Chairman and the Non-Independent Directors was carried out by the Independent Directors. Details of the same are given in the Report on Corporate Governance annexed hereto.

23. AUDITORS AND AUDITOR'S REPORT

(A) STATUTORY AUDITOR

At the Company's 23rd AGM held on June 29, 2017, M/s S R B C & CO LLP (324982E/E300003), Chartered Accountants, has been appointed as the Statutory Auditor of the Company for a term of 5 years to hold office from the conclusion of the 23rd Annual General Meeting until the conclusion of the 28th Annual General Meeting of the Company.

The Notes on financial statements referred to in the Auditor's Report are self-explanatory and do not call for any further comments. The Auditor's Report does not contain any qualification, reservation, adverse remark, or disclaimer.

No fraud has been reported by the Auditor under section 143(12) of the Companies Act, 2013 requiring disclosure in the Board's Report.

(B) COST AUDITOR

Pursuant to Section 148(1) of the Companies Act, 2013 the Company is required to maintain cost records as specified by the Central Government and accordingly such accounts and records are made and maintained.

Pursuant to Section 148(2) of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Amendment Rules, 2014, the Company is also required to get its cost accounting records audited by a Cost Auditor. Accordingly, the Board, at its meeting held on May 22, 2020 has on the recommendation of the Audit Committee, re-appointed M/s. Shome & Banerjee, Cost Accountants to conduct the audit of the cost accounting records of the Company for FY 202021 on a remuneration of Rs. 17 Lakhs plus taxes as applicable and reimbursement of actual travel and out-of-pocket expenses. The remuneration is subject to the ratification of the Members in terms of Section 148 read with Rule 14 of the Companies (Audit and Auditors) Rules, 2014 and is accordingly placed before the Shareholders for ratification. The due date for filing the Cost Audit Report of the Company for the financial year ended March 31, 2019 was September 30, 2019 and the Cost Audit Report was filed in XBRL mode on August 19, 2019.

(C) SECRETARIAL AUDITOR

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company had appointed M/s. S. Srinivasan & Co., a firm of Company Secretaries in Practice, to undertake the Secretarial Audit of the Company. The Report of the Secretarial Audit is annexed herewith as Annexure 'C'. The report does not contain any observation or qualification requiring explanation or comments from the Board under Section 134(3) of the Companies Act, 2013.

During the period under review, the Company has complied with the applicable Secretarial Standards notified by the Institute of Company Secretaries of India.

The Company has also undertaken an audit for the FY 2019-20 pursuant to SEBI Circular No. CIR/ CFD/CMO/I/27/2019 dated February 08, 2019 for all applicable compliances as per the Securities and Exchange Board of India Regulations and Circular/ Guidelines issued thereunder. The Report (Annual Secretarial Compliance Report) has been submitted to the Stock Exchanges within 60 days of the end of the financial year ended March 31, 2020.

As per the provisions of Regulation 24A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, M/s. Vanita Sawant & Associates, Practicing Company Secretaries, had undertaken secretarial audit of the Company's material subsidiary i.e., JSW Steel Coated for the FY 2019-20. The Audit Report confirms that the material subsidiary has complied with the provisions of the Act, Rules, Regulations and Guidelines and that there were no deviations or non-compliances.

The Board, at its meeting held on May 22, 2020, has re-appointed M/s. S. Srinivasan & Co., as Secretarial Auditor, for conducting Secretarial Audit of the Company for FY 2020-21.

24. RISK MANAGEMENT

The Company follows the globally recognised 'COSO' framework of Enterprise Risk Management (ERM).

ERM brings together the understanding of the potential upside and downside of all those factors which can affect the organisation with an objective to add maximum sustainable value across all activities of the organisation and create to various stakeholders.

The Company recognises that emerging and identified risks need to be managed and mitigated in order to- protect its shareholders' and other stakeholder's interest,

- achieve its business objective and

- enable sustainable growth.

Pursuant to the requirement of Regulation 21 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Companies Act, 2013, the company has Risk management framework in place. It has constituted a sub-committee of Directors to oversee Enterprise Risk Management framework to ensure resilience such that -

- Intended risks, say growth, are taken prudently so as to plan for the best and be prepared for the worst.

- Execution of decided strategies & plan with focus on action.

- Unintended risks like performance, incident, process and transaction risks are avoided, mitigated, transferred (like in insurance) or shared (like through sub-contracting). The probability or impact thereof is reduced through tactical and executive management, policies, processes, inbuilt systems controls, MIS, internal audit reviews etc.

25. INTERNAL CONTROLS, AUDIT AND INTERNAL FINANCIAL CONTROLS

(A) OVERVIEW

The Company has a robust system of internal control, commensurate with the size and nature of its business and complexity of its operations.

(B) INTERNAL CONTROL

The Company has a proper and adequate system of internal control. Some significant features of the internal control systems are:

- Preparation of annual budgets and its regular monitoring

- Control over transaction processing and ensuring integrity of accounting system by deployment of integrated ERP system

- Well documented authorisation matrix, policies, procedures and guidelines covering all important operations of the company

- Deployment of compliance tool to ensure compliance with laws, regulations and standards

- Ensuring reliability of financial information by testing of internal financial controls over reporting by internal auditors and statutory auditors

- Adequate insurance of company's assets / resources to protect against any loss

- A comprehensive Information Security Policy and continuous updation of IT systems

- Oversight by Board appointed Audit Committee which comprises of Independent Directors who are experts in their respective field. The Audit Committee regularly reviews audit plans, significant audit findings, adequacy of internal controls and monitors implementation of audit recommendations.

(C) INTERNAL AUDIT

The Company has a strong and independent internal audit function that inculcates global best standards and practices of international majors into the Indian operations. The Internal Audit team consists of professionally qualified accountants and engineers. The Chief Internal Auditor reports directly to Chairman of Audit Committee. The team has successfully integrated the COSO framework in its audit process to enhance the quality of its financial reporting, compatible with business ethics, effective controls and governance.

The Company extensively practices delegation of authority across its team, which creates effective checks and balances within the system to arrest all possible gaps. The internal audit team has access to all information in the organisation - this is largely facilitated by ERP implementation across the organisation.

(D) AUDIT PLAN AND EXECUTION

At start of the year, Internal Audit Department prepares an Annual Audit Plan after considering Business and Process Risks. The frequency of the audit is decided by risk ratings of areas/functions. The audit plan is carried out by the internal team and reviewed periodically to include areas that have assumed significant importance in line with the emerging industry trend and the aggressive growth of the Company. In addition, the Audit Committee also places reliance on few internal audits carried out by the external firms.

(E) INTERNAL FINANCIAL CONTROLS

As per Section 134(5)(e) of the Companies Act, 2013, the Directors have an overall responsibility for ensuring that the Company has implemented a robust system and framework of internal financial controls.

The Company had already developed and implemented a framework for ensuring internal controls over financial reporting. This framework includes entity-level policies, processes controls, IT General Controls and Standard Operating Procedures (SOP).

The entity-level policies include antifraud policies (such as code of conduct, conflict of interest, confidentiality and whistle blower policy) and other polices (such as organisation structure, insider trading policy, HR policy, IT security policy, treasury policy and business continuity and disaster recovery plan). The Company has also prepared risk control matrix for each of its processes such as procure to pay, order to cash, hire to retire, treasury, fixed assets, inventory, manufacturing operations, etc.

These internal controls are reviewed by Internal Auditors every year. The Company has carried out evaluation of design and effectiveness of these controls and noted no significant material weaknesses or deficiencies which can impact financial reports.

26. FIXED DEPOSITS

The Company has not accepted any fixed deposits from the public. Therefore, it is not required to furnish information in respect of outstanding deposits under Non-banking, Non-financial Companies (Reserve Bank) Directions, 1966 and Companies (Accounts) Rules, 2014.

27. SHARE CAPITAL

The Company's Authorised Share capital during the financial year ended March 31, 2020 remained at Rs 9015,00,00,000 (Rupees Nine Thousand Fifteen crores only) consisting of Rs 6015,00,00,000 (Rupees Six Thousand Fifteen crores only) equity shares of Rs. 1/- (Rupee One only) each and 300,00,00,000 (Three Hundred crores) preference shares of Rs 10/- (Rupees Ten only) each.

The Company's paid-up equity share capital remained at Rs 241,72,20,440 comprising of 241,72,20,440 equity shares of Rs 1 each.

During the financial year, the Company has fully redeemed the balance amount of its 48,54,14,604, 0.01% cumulative redeemable preference shares of Rs 10 each fully paid up, in four equal instalments of Rs 1.25 per share on June 15, 2019, September 15, 2019, December 15, 2019 and March 13, 2020.

Thereby, the preference share capital as at the financial year ended March 31, 2020 is Nil.

28. FOREIGN CURRENCY BONDS

During FY 2014-15, the Company had issued 4.75% Fixed Rate Senior Unsecured Notes, due in November 2019, aggregating to US$ 500 million, to eligible investors. These Notes have been redeemed on the due date as per the terms of issue.

In April 2017, the Company issued 5.25% Fixed Rate Senior Unsecured Notes, due in April 2022, aggregating to US$500 million, to eligible investors.

In April 2019, the Company further issued 5.95% Fixed Rate Senior Unsecured Notes, aggregating to US$500 million, due in April 2024.

Also, in October 2019, the Company further issued 5.375% Fixed Rate Senior Unsecured Notes aggregating to US$400 million, due in April 2025.

All of the aforesaid Notes issued by the Company in the International Market are listed on the Singapore Exchange Securities Trading Limited (the "SGX-ST").

29. ISSUANCE OF NON-CONVERTIBLE DEBENTURES

During the year under review, the Company issued and allotted 10,000, 8.90% Rated, Listed, Secured, Redeemable, Non-Convertible Debentures (NCDs) of Rs 10,00,000 each of the Company, aggregating to Rs 1,000 Crores (Rupees One thousand crores) and 20,000, 8.79% Rated, Listed, Secured, Redeemable, Non- Convertible Debentures (NCDs) of Rs 10,00,000 each of the Company, aggregating to Rs 2,000 Crores (Rupees Two thousand crores) to Investors on private placement basis.

30. CREDIT RATING

In April 2020, Moody's Investors Service has placed Ba2 Corporate Family Rating and Senior Unsecured Bond Rating due in 2022, 2024 and 2025, respectively, under review for downgrade.

Also in May 2020, Fitch Ratings has downgraded the Company's long-term Issuer Default Rating (IDR) and Senior Unsecured Bond rating due in 2022, 2024 and 2025, respectively, to BB -, with negative outlook.

The short term debt / facilities of the Company continues to be rated at the highest level of "A1+" by ICRA Ltd. and CARE Ratings. In March 2020, the domestic credit rating for long term debt facilities/ NCD's have been revised to "CARE AA-" with Stable Outlook by CARE Ratings and "ICRA AA- "Negative Outlook by ICRA Ltd. India Ratings has assigned long term issuer rating and rating for the outstanding non-convertible debentures of the Company as "IND AA" with Negative Outlook.

31. EMPLOYEE STOCK OPTION PLAN

The Board of Directors of the Company, at its meeting held on January 29, 2016, formulated the JSWSL Employees Stock Ownership Plan - 2016 (ESOP Plan), to be implemented through the JSW Steel Employees Welfare Trust (Trust), with an objective of enabling the Company to attract and retain talented human resources by offering them the opportunity to acquire a continuing equity interest in the Company, which will reflect their efforts in building the growth and the profitability of the Company. The ESOP Plan involves acquisition of shares from the secondary market.

A total of 2,86,87,000 (Two Crores Eighty-Six Lakhs Eighty-Seven Thousand) options were available for grant to the eligible employees of the Company and its Director(s), excluding independent directors, and a total of 31,63,000 (Thirty-One Lakh Sixty-Three Thousand) options were available for grant to the eligible employees of the Indian Subsidiaries of the Company and their Director(s), excluding independent directors, under the ESOP Plan.

Accordingly, 1,59,44,271 options have been granted over a period of three years under this plan by the JSWSL ESOP Committee to the eligible employees of the Company and its Indian Subsidiaries, including the Whole-time Directors of the Company. The details of the ESOPs granted to Mr. Seshagiri Rao M.V.S, Dr. Vinod Nowal and Mr. Jayant Acharya, Whole-time Directors of the Company is as given in the table below. The grant of ESOPs to the Whole-time Directors of the Company has been approved by the Nomination and Remuneration Committee and the Board.

JSWSL

ESOP

Options Granted to Whole-time Directors of the Company

Committee

Meeting

Total options granted Mr. Seshagiri Rao M.V.S Dr. Vinod Nowal Mr. Jayant Acharya
May 17, 2016 7,436,850 192,680 179,830 179,830
(1st Grant)
May 16, 2017 5,118,977 127,968 127,968 119,436
(2nd Grant)
May 15, 2018 (3rd Grant) 3,388,444 87,841 87,841 81,985
Total 15,944,271 408,489 395,639 381,251

As per the ESOP Plan, 50% of these options will vest at the end of the third year and the balance 50% at the end of the fourth year.

During the financial year under review, JSWSL ESOP Committee in its meeting held on December 5, 2019 has made a supplementary grant, accordingly 3,69,751 options have been granted under this plan by the JSWSL ESOP Committee to the eligible employees of the Company.

The applicable disclosures relating to ESOP plan of 2016, as stipulated under the ESOP Regulations, pertaining to the year ended March 31, 2020, is posted on the Company's website at http://www.jsw.in/investors/ investor-relations-steel and forms a part of this Report.

Voting rights on the shares, if any, as may be issued to employees under the aforesaid ESOP Plans are to be exercised by them directly or through their appointed proxy, hence, the disclosure stipulated under Section 67(3) of the Companies Act, 2013 is not applicable.

There is no material change in the aforesaid ESOP Plans and the same are in compliance with the ESOP Regulations.

The Certificate from the Statutory Auditors of the Company certifying that the Company's Stock Option Plans are being implemented in accordance with the ESOP Regulations and the resolution passed by the Members, would be available for inspection during the meeting in electronic mode and same may be accessed upon log-in to https://evoting.karvy.com/.

32. JSWSL EMPLOYEES SAMRUDDHI PLAN 2019

The JSWSL Employees Samruddhi Plan 2019 ("Plan") was approved by a special resolution passed by the shareholders of the Company by way of a postal ballot on May 17, 2019. The Plan was effective from April 1, 2019. The scheme is a one-time scheme applicable only for permanent employees of the Company, working in India (excluding an employee who is a promoter or a person belonging to the promoter group, a probationer and a trainee) in the grade L01 to L15 ("Eligible Employee"), who were not covered under the earlier ]SWSL Employees Stock Ownership Plan - 2016. The Indian Subsidiary companies have a similar scheme to cover its employees. The Company in terms of the applicable provisions of the Companies Act, 2013 ("Act"), the rules framed thereunder and all other applicable rules and regulations including those issued by the SEBI, to the extent applicable, has implemented the Plan wherein the Eligible Employee will be eligible to acquire the Equity Shares of face value Rs 1 each directly from the open market. The Eligible Employee will be able to purchase the Equity Shares from the open market by availing a loan provided by a bank / non-banking financial institution ("Lending Agency") and a broker identified by the Company to facilitate acquisition of Equity Shares by the Eligible Employees under the Plan. The Equity Shares bought by the Eligible Employee will be subject to a lien in favour of the Lending Agency for a period of two years. After expiry of the said period of two years, the Eligible Employee can either repay the entire loan amount, after which the Equity Shares will become free of the lien, or the Lending Agency will recover the principal amount by selling the Equity Shares and will transfer the difference, if any, between the principal amount and the sale value (i.e. market price as on the date of the sale x. no. of Equity Shares sold) to the Eligible Employee. The interest on the loan will be serviced by the Company and the Eligible Employee in the ratio of 3:1 (the Company will bear 75% of the total interest liability owed to the Lending Agency and the balance 25% will be borne by the Eligible Employee). The Plan is being through the existing ]SW Steel Employee Welfare Trust in accordance with Applicable Laws.

The number of Equity Shares that are the subject matter of the Plan in terms of the approval accorded by the Members by way of a postal ballot on May 17, 2019, shall not be more than 1,24,97,000 representing 0.517% of the issued equity share capital of the Company. Under the aforesaid Plan, as on March 31, 2020, 5,806 employees of the Company have subscribed to 69,07,000 shares.

33. AWARDS

VIJAYANAGAR

1. I IM -Tata Gold Medal for significant contributions to Metallurgical Industries.

2. I I M-Essar Gold Medal for outstanding contributions to Metallurgical Industries in general and in the field of Secondary Steelmaking, Electrometallurgy in particular.

3. Won second prize in IIM Sustainability Awards and was recognised for best quality, registering highest product development, profit making in terms of rupees per tonne, HRD and environmental performances during the year under review.

4. 40 teams consisting of 190 employees bagged all 40 gold medals during chapter convention on Quality Convention on Quality Concept (CCQC) 2019 held at Bengaluru.

5. At the 33rd National Convention on Quality Concepts (NCQC) in CY 2019, hosted by Quality Circle Forum of India (QCFI), out of the 25 participating teams:

- 18 were Quality Circles (QCs), out of which 13 bagged Par Excellence Award and five bagged Excellence Award.

- 7 Allied Teams (4 Lean Six Sigma Teams - LSS, 2 Lean Quality Circles - LQC and 1 5S Allied Team - 5S) won Par Excellence Award.

- Vijayanagar Works once again recorded the highest participation and highest number of Par Excellence awards (from a single location) among all the other Indian organisations.

- QC team from Steel Melting Shop 2 was given the opportunity to present their model that received the Best Model Award.

6. At the International Convention on QC Circles (ICQCC) 2019, hosted by the Union of Japanese Scientists and Engineers(JUSE), following accolades were won:

- A team from BF-4 presented their project on 'Improving MTBF of Hopper LSV Seal at Bell Less Top' and bagged a Gold Award.

- A team from Sinter Plant-3 presented their project on 'Increasing availability of Sinter Machine' and bagged a Gold Award.

- A team from SMS-1 presented their project on 'Minimisation of un-planned sequence break due to sub entry nozzle failure at casting platform' and bagged a Silver Award.

- Lean Quality Circles (LQCs) from Steel Melting Shop 1 presented their project on 'Reduction in BOPS Alarm at Continuous Caster' and bagged a Gold Award.

DOLVI

1. Platinum level recognition in CII Exim Bank Awards for Business Excellence in CY 2019: The EFQM - an internationally recognised Business Excellence framework, is being used by CII for the last 25 years. Dolvi Works has been using this framework since 2016. In its third year of participation, Dolvi Works scored "576-599 band", just below the 600 points required for the coveted CII Exim Bank Award.

2. Gold Award in JH category in "International Convention on QC Circles" 2019 at Tokyo Japan: Coke Oven team was the only team amongst 500+ to win Gold Award in this category.

3. Nine Par Excellence and Nine Excellence awards to the Dolvi teams in NCQC 2019 held at Varanasi.

4. Digitalisation Programme at Dolvi Works

bagged National Level Award in Frost & Sullivan PERP-2019 competition under digital modelling in manufacturing category.

5. Adjudged National winner in 7th CII National Excellence Practices in the category of Digital Modelling.

6. Six Sigma project from CSP Caster (Reduction in scratch marks) emerged as winner in 13th CII National Competition held at Bangalore.

7. Grow Care India Environment Management Award.

8. Sustainability 4.0 Awards, 2019 (Recognising Excellence in Sustainable Development) by Frost & Sullivan and TERI.

SALEM

1) Deming Prize from JUSE.

2) IIM Sustainability Award in the alloy steel category by the Indian Institute of Metals.

3) Performance Award in Raw Material category from M/s Brakes India.

4) Alliance & Strategic Partner Award from M/s TIMKEN.

5) Received the following Safety Awards from Government of Tamil Nadu:

• Reported 'lowest frequency rate' for the year 2016 - Third prize.

• Longest Accident-free period in man-hours for the year 2016 - Third prize.

• Highest reduction in accident rate for the year 2014 - First prize.

6) Received Gold Trophy Award for Best ITI Skill development through PPP scheme in India from ASSOCHAM in CY 2019.

7) ICQCC: Three teams participated in the International Convention on Quality Control Circle 2019 competition held in Tokyo, Japan and all the three teams won the Gold Awards.

8) NCQC: Seven teams participated in National Convention on Quality Concepts 2019 held in Varanasi and won the Par Excellence awards.

9) ABK-AOTS DOSOKAI: Kaizen competition was conducted by ABK-AOTS DOSOKAI Tamil Nadu Centre in Chennai, where three of the Company's teams participated, and won two Platinum Awards and one Diamond Award.

34. DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirements under Section 134, sub-section 3(c) and sub-section 5 of the Companies Act, 2013, the Board of Directors, to the best of their knowledge and ability, state and confirm that:

a) In the preparation of the annual accounts, the applicable Accounting Standards have been followed, along with proper explanation relating to material departures.

b) Such Accounting Policies have been selected and applied consistently and judgements and estimates have been made that are reasonable and prudent to give a true and fair view of the Company's state of affairs as on March 31, 2020 and of the Company's profit or loss for the year ended on that date.

c) Proper and sufficient care has been taken for the maintenance of adequate accounting records, in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

d) The annual financial statements have been prepared on a Going Concern Basis.

e) Internal financial controls were laid down to be followed and that such internal financial controls were adequate and operating effectively.

f) Proper systems were devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

35. RELATED PARTY TRANSACTION

All Related Party Transactions (RPT) that were entered into during the financial year were on an arm's length basis and in the ordinary course of business.

The policy on dealing with RPT as approved by the Board is uploaded on the Company's website (https://www.jsw. in/investors/investor-relations-steel). The policy intends to ensure that proper reporting, approval and disclosure processes are in place for all transactions between the Company and Related Parties. This policy specifically deals with the review and approval of RPT, keeping in mind the potential or actual conflicts of interest that may arise because of entering into these transactions. All RPT are placed before the Audit Committee for review and approval. Prior omnibus approval is obtained for RPT that are of repetitive nature and / or entered in the ordinary course of business and are at arm's length. All RPT are subjected to independent review by a reputed accounting firm to establish compliance with the requirements of RPT under the Companies Act, 2013 and Regulation 23 of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015.

The disclosure of material RPT is required to be made under Section 134(3)(h) read with Section 188(2) of the Companies Act, 2013 in Form AOC 2. The details of the material RPT, entered into during the year by the Company as per the policy on RPTs approved by the Board, is given in Annexure E to this Report.

Your Directors draw your attention to Note No 44 to the Standalone financial statements, which sets out related party disclosures.

36. DISCLOSURES

(A) NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS

During the year, five Board Meetings were convened and held, the details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013 and Regulations 17 of the Securities and Exchange Board of India (Listing Obligation and Disclosures Requirements) Regulation, 2015.

(B) AUDIT COMMITTEE

The Audit Committee comprises of one Executive Director and three Non-Executive Independent Directors. Mr. Seturaman Mahalingam is the Chairman of the Audit Committee. The Members possess adequate knowledge of Accounts, Audit, Finance, etc. The composition of the Audit Committee meets the requirements of Section 177 of the Companies Act, 2013 and Regulation 18 of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015.

There are no recommendations of the Audit Committee that have not been accepted by the Board.

(C) EXTRACT OF ANNUAL RETURN

The extract of annual return in Form MGT 9 as required under Section 92(3) of the Companies Act, 2013 and Rule 12 of the Companies (Management and Administration) Rules, 2014 is attached as Annexure B hereto and forms a part of this Report. The same is also available on the Company's website at http://www.jsw.in/investors/ investor-relations-steel.

(D) WHISTLE BLOWER POLICY / VIGIL MECHANISM

The Company has a vigil mechanism named Whistle Blower Policy / Vigil Mechanism to deal with instances of fraud and mismanagement, if any. Details of the same are given in the Corporate Governance Report.

(E) PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SEC. 186

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements.

(F) DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S OPERATIONS IN FUTURE

There are no significant or material orders passed by the Regulators/ Courts/ Tribunals that could impact the going concern status of the Company and its future operations.

However, Members' attention is drawn to the statement on contingent liabilities, commitments in the notes forming part of the Financial Statements.

(G) PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

Information in accordance with the provisions of Section 134(3)(m) of the Companies Act, 2013, read with Rule 8 of the Companies (Accounts) Rules, 2014 regarding conservation of energy, technology absorption and foreign exchange earnings and outgo, is given in the statement annexed (Annexure A) hereto and forms a part of this Report.

(H) DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. All employees (permanent, contractual, temporary and trainees) are covered under this policy. The Company has also complied with the provisions related to constitution of Internal Complaints Committee (ICC) under the said Act to redress complaints received regarding sexual harassment. The Company received no complaints pertaining to sexual harassment during FY 2019-20.

(I) OTHER DISCLOSURES / REPORTING

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions pertaining to these items during the year under review:

1. Details relating to deposits covered under Chapter V of the Companies Act, 2013.

2. Issue of equity shares with differential rights as to dividend, voting or otherwise.

3. Issue of shares (including sweat equity shares) to employees of the Company under any scheme save and except ESOPs referred to in this Report.

4. Neither the Managing Director nor the Whole-time Directors of the Company receive any remuneration or commission from any of its subsidiaries.

37. ACKNOWLEDGMENT

Your Directors take this opportunity to express their appreciation for the cooperation and assistance received from the Government of India, Republic of Chile, Mauritius, Mozambique, Italy, the US and the UK, the State Governments of Karnataka, Maharashtra, Tamil Nadu, West Bengal, Jharkhand and Odisha and the financial institutions, banks as well as the shareholders and debenture holders during the year under review. The Directors also wish to place on record their appreciation of the devoted and dedicated services rendered by all employees of the Company.

For and on behalf of the Board of Directors
Place: Mumbai Sajjan Jindal
Date: May 22, 2020 Chairman
   

JSW Steel Ltd Company Background

Sajjan JindalSajjan Jindal
Incorporation Year1994
Registered OfficeJSW Centre Bandra (East),Bandra Kurla Complex
Mumbai,Maharashtra-400051
Telephone91-22-42861000,Managing Director
Fax91-22-42863000
Company SecretaryLancy Varghese
AuditorSRBC & Co LLP
Face Value1
Market Lot1
ListingBSE,MSEI ,NSE,Singapore,
RegistrarKFin Techologies Pvt Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032

JSW Steel Ltd Company Management

Director NameDirector DesignationYear
Savitri Devi Jindal Chairman Emeritus 2020
Sajjan Jindal Chairman & Managing Director 2020
Seshagiri Rao MVS. Jt. Managing Dir. & Group CFO 2020
Vinod Nowal Deputy Managing Director 2020
Jayant Acharya Director (Commercial & Marketi 2020
Lancy Varghese Company Secretary 2020
Punita Kumar Sinha Independent Director 2020
Malay Mukherjee Independent Director 2020
H Khaitan Independent Director 2020
Seturaman Mahalingam Independent Director 2020
Hiroyuki Ogawa Nominee 2020
Harsh Mariwala Independent Director 2020
Nirupama Rao Independent Director 2020
M S Srikar Nominee (KSIIDC) 2020

JSW Steel Ltd Listing Information

Listing Information
NIFTY
BSE_500
BSE_100
BSE_200
BSEDOLLEX
CNX500
BSEMETAL
CNX100
CNXMETAL
CNX200
CNXCOMMODI
BSECARBONE
NIFTY50V20
NFT100EQWT
BSEALLCAP
BSELARGECA
BSEMETERIA
BSEMANUFAC
SENSEX50
ESG100
LMI250
BSEDSI

JSW Steel Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Hot Rolled Steel Strips/SheetsMT 00865288632995
Rolled Products MT 00352086214011
Cold Rolled Coils/Sheets MT 0018426088328
Others NA 0002543
Galvanised Coils/Sheets MT 004288482129
Other Operating Revenues NA 0001947
Steel Billets & Blooms MT 004023061553
M S Slabs MT 00228336756
Colour Coating Coils / Sheets MT 0000
Hot Roled Plates Ton0000
Hot Rolled Steel Plates MT 0000
Others - Traded NA 0000
Galvalume NA 0000
Sale of Carbon Credit NA 0000
Export incentives NA 0000
Adjustment NA 0000

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