JSW Steel Limited has disclosed that the Regional PF Commissioner-II, Regional Office, Ballari has levied a penalty comprising damages of Rs. 97,94,731 and interest of Rs. 85,19,647 for the belated remittance of Provident Fund (PF) for the period between April 2016 and March 2019. The disclosure was made to the National Stock Exchange (NSE) and BSE Limited in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The order, dated March 28, 2025, outlines that the company delayed the remittance of PF contributions for a three-year period, leading to the imposition of financial penalties. Despite the penalty of Rs. 1.83 crore, JSW Steel confirmed that the remittance has been completed and that there would be no material impact on the financials, operations, or other activities of the company.

Background of the Case

The provident fund remittance pertains to the contributions that employers are required to make to the Employees’ Provident Fund (EPF) as per the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Any delay in the remittance of these funds results in the imposition of damages and interest by the PF authorities.

In this case, JSW Steel was penalized for delays spanning a three-year period. The Regional PF Commissioner-II, Ballari issued the order after assessing the company’s compliance history and identifying delays in transferring the PF contributions. The total damages of Rs. 97.94 lakh and interest of Rs. 85.19 lakh have been duly remitted by the company.

Details of Penalty and Compliance

JSW Steel's compliance team acted swiftly to address the regulatory concerns, ensuring that the payments were processed as per the PF authority's directive. The disclosure to the stock exchanges under Regulation 30 ensures transparency and compliance with the applicable regulatory requirements.

The company emphasized that despite the penalty and interest paid, the financial health and operational efficiency of JSW Steel remain unaffected. The remittance of damages and interest does not have any material impact on the company's overall business operations, financial standing, or future projections.

Regulatory Compliance and SEBI Disclosure

As per Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, listed companies are required to disclose any material events or information that may impact their operations or financials. In line with this, JSW Steel submitted the necessary disclosure to:

• National Stock Exchange of India Ltd. (NSE), Ref: NSE Symbol – JSWSTEEL

• BSE Limited (BSE), Ref: Company Code – 500228

The Listing Departments of both exchanges were duly notified about the imposition of the penalty and its subsequent payment.

Financial Impact on JSW Steel

Despite the payment of Rs. 1.83 crore in damages and interest, JSW Steel clarified that this will not have a significant impact on its financial performance. The company highlighted that its financial stability and operational growth remain unaffected by this regulatory penalty.

JSW Steel reassured investors and stakeholders that the company remains committed to maintaining regulatory compliance and adhering to statutory timelines in the future to avoid such instances.

Company’s Commitment to Compliance

JSW Steel has reiterated its commitment to corporate governance and regulatory compliance. The company has implemented enhanced internal controls to ensure timely remittance of statutory dues, thereby preventing future occurrences of delayed PF remittances.

The company’s management has taken steps to strengthen monitoring systems and improve its internal reporting structure to meet all statutory obligations on time.

Operational and Financial Outlook

JSW Steel maintains that its core operations and business performance will remain unaffected despite the recent penalty. The company continues to be one of India's leading steel manufacturers with robust financials and a strong market presence.

JSW Steel’s long-term growth strategy and operational plans are intact. The company aims to focus on capacity expansion, technological innovation, and sustainable growth, ensuring that its business objectives remain aligned with regulatory compliance and stakeholder expectations.

Disclosure Filed with NSE and BSE

The disclosure was submitted to the National Stock Exchange (NSE) and BSE Limited (BSE) under the applicable provisions of the SEBI LODR Regulations, 2015. The disclosure, signed by Manoj Prasad Singh, Company Secretary (in the interim capacity), ensures that all regulatory formalities have been duly met by the company.

Key Takeaways

• JSW Steel fined Rs. 97.94 lakh in damages and Rs. 85.19 lakh in interest for PF delay.

• The penalty covers the period between April 2016 and March 2019.

• JSW Steel’s financials, operations, and growth plans remain unaffected by this penalty.

The company remains committed to maintaining the highest standards of compliance and governance, ensuring that it fulfills its statutory obligations and upholds investor trust.

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