Jindal Saw Limited has released its Independent Auditor's Report for the financial year ended March 31, 2023. The report, issued by Price Waterhouse Chartered Accountants LLP, provides an opinion on the standalone financial statements of the company. Key audit matters highlighted include the assessment of the carrying value of investments in and loans granted to its subsidiary, Jindal ITF Limited. This involves a significant investment of ₹64,663.28 lakhs, including redeemable preference shares. The report details ongoing litigation concerning a contract dispute with a public sector undertaking, where the subsidiary was awarded ₹189,108 lakhs plus interest and taxes by an arbitrator, a matter currently under appeal at the Delhi High Court. The management, based on legal counsel, considers the carrying amount of investments and loans recoverable. Another key audit matter concerns the assessment of the carrying value of investments in a subsidiary, Jindal Quality Tubular Limited (JQTL), and an associate, Jindal Fittings Limited (JFL), amounting to ₹14,823.38 lakhs. The assessment involved significant management judgment and estimates, including forecast cash flows, discount rates (12.82% for JFL, 14.17% for JQTL), and terminal growth rates (4% for JFL, 1% for JQTL). The auditors also drew attention to Note 51 regarding related party transactions exceeding approved limits, which the company has intimated to the stock exchange. The report confirms that the company has adequate internal financial controls and that the financial statements comply with accounting standards. It also notes a delay in transferring ₹334.38 lakhs to the Investor Education and Protection Fund due to pending legal cases.
