Delux Annual Report2018-19 PDF
Delux Annual Report2018-19 PDF
Delux Annual Report2018-19 PDF
FINANCIAL
PERFORMANCE
8.29% 6.50%
₹4,919.19 Crores ₹810.12 Crores
Profit Earnings
after tax per share
4.96% 7.38%
₹324.90 Crores ₹45.28
SOCIAL
RESPONSIBILITY
CSR
expenditure
39.09%
₹6.69 Crores
Water Alternate
recycling fuels usage
14.13% 30.66%
456,481 m 3
115,877 MT
y-o-y growth
CORPORATE IDENTITY
PROGRESSING WITH
ROBUST FUNDAMENTALS
VISION
MISSION
VALUES
INTEGRITY QUALITY
Honour our commitments Strive for perfection
We are committed to being honest We are passionate about
and ethical in all interactions, creating a culture of perfection
maintaining the highest ethical that encourages and promotes
standards in all our markets, excellence in products and
financial and operational practices. services through innovation and
continuous improvement.
OUR STATURE
ONE OF THE
LEADING
2nd 3rd
Largest producer Largest White Cement
Grey Cement of White Cement and Wall manufacturer in the world
manufacturers in India Putty in India
REACH
15 14,500+
STATES NETWORK
Pan-India presence for Grey Of dealers and retailers for
Cement with enhanced reach our Grey Cement products
in Tier II and Tier III cities across 15 key states
51,500+ 43
NETWORK COUNTRIES
Of dealers and retailers for Global market presence
marketing our White Cement for White Cement
and White Cement-based
Wall Putty across India
OUR CAPACITIES
10.50
MnTPA
1.20
MnTPA
0.90
MnTPA
125.70
MW
PROGRESSING WITH
ENHANCED REACH
INDIA
6
26
Grey Cement
Nimbahera, Chittorgarh (Rajasthan) 3.25 MnTPA
Mangrol, Chittorgarh (Rajasthan) 2.25 MnTPA
Muddapur, Bagalkot (Karnataka) 3.00 MnTPA
Gotan, Nagaur (Rajasthan) 0.47 MnTPA
Jharli, Jhajjar (Haryana) 1.50 MnTPA 6
(Split Grinding Unit)
White Cement 11
Gotan, Nagaur (Rajasthan) 0.60 MnTPA 14
5
Wall Putty
12 15
Gotan, Nagaur (Rajasthan) 0.50 MnTPA 2
4 9
3 7
1. Andhra Pradesh 9. Madhya Pradesh 1
2. Delhi 10. Maharashtra
3. Goa 11. Punjab and
4. Gujarat Chandigarh 8 13
5. Haryana 12. Rajasthan
6. Jammu & Kashmir 13. Tamil Nadu
7. Karnataka 14. Uttarakhand
8. Kerala 15. Uttar Pradesh
Grey Cement Market in India
33
14
16
13 28 5 11
4 25 12 35
31 40 22
42 37
8 41
10 17 9 27
7 24
39 34
29 15
30
36
43
19
21
18
20
3
32
23
Our White Cement is sold across 43 countries 1. Argentina 17. Lagos 32. South Africa
around the world. Moreover, we have a dual 2. Aruba 18. Madagascar 33. South Korea
process cement plant with a capacity to produce 3. Australia 19. Malawi 34. Sri Lanka
both white and Grey Cement (interchangeably) 4. Bahrain 20. Mauritius 35. Taiwan
in Fujairah, U.A.E. The Fujairah plant is currently 5. Bangladesh 21. Mozambique 36. Tanzania
used to manufacture White Cement only. 6. Brazil 22. Myanmar 37. Thailand
7. Cote d’Ivoire 23. New Zealand 38. Trinidad and
8. Djibouti 24. Nigeria Tobago
GLOBAL WHITE CEMENT CAPACITY 9. Ethiopia 25. Oman 39. Uganda
10. Ghana 26. Peru 40. United Arab
11. Hong Kong 27. Philippines Emirates
Fujairah (UAE) 0.60 MnTPA 12. India 28. Qatar 41. Vietnam
13. Jeddah 29. Republic of 42. Yemen
14. Jordan the Congo 43. Zambia
15. Kenya 30. Rwanda
16. Kuwait 31. Saudi Arabia
PROGRESSING WITH
HIGH-QUALITY PRODUCTS
GREY CEMENT
Portland Slag
Cement (PSC)
Primarily used in special
structures such as pre-stressed
concrete due to compressive
strength. It has highly corrosive
resistance power. Hence, it is
widely used in coastal areas.
JK Super Strong
A premium product specially
designed for concrete
applications. This product uses
MPET–a new breakthrough
technology in cement production
that improves quality and
performance of cement.
MPET ensures systematic and
advanced distribution of micro
particles in cement to develop
denser and leak-proof concrete.
Also, it increases the percentage
of micro particle in cement to
give higher early strength.
WHITE CEMENT
JK White Cement JK Wall Putty
A high quality White Cement Primarily used as a preparatory
which is typically used across: material for painting that has
• Flooring for manufacturing both residential and industrial
and laying of mosaic tiles and applications. It is typically used
tile fixing grout as sub-surface material for
• Wall applications, such as decorative paints, which help to
decorative White Cement enhance the appearance of both
paints, Wall Putty and plain interior and exterior walls. It also
and spray plasters minimises the impact of UV rays
• Other specialised applications and is water resistant.
including glass fibre reinforced
concrete, garden furniture,
lamp posts, as pointing for
brick and stone works and
pre-cast cladding panels.
VALUE-ADDED PRODUCTS
PROGRESSIVE
MOMENTUM,
PURPOSEFUL
JOURNEY
₹2,000 Crores
Dear Shareholders,
₹511 Crores
moderate inflation, low fiscal deficit (3.4% of
GDP), accommodative monetary policy by the
Reserve Bank of India and gradually improving
private investment cycle. Infrastructure “raised through a qualified institutional
creation continues to be one of the major placement (QIP) in December 2018”
priorities of the Government of India; and
with interest rates declining and additional
liquidity in the economy, the infrastructure
space is likely to see significant activity,
which augurs well for cement demand.
4,919.19
operations to `4,919.19 Crores in FY 2018-19, compared to
`4,542.59 Crores in FY 2017-18, driven by sustained cement
demand on the back of a growing housing segment and higher
infrastructure spend. Our EBITDA increased 6.5% to `810.12
Crores in FY 2018-19 vis-à-vis `760.66 Crores in FY 2017-18
owing to better efficiencies across the board. We maintained a EBITDA
healthy EBITDA margin of 16.47% in FY 2018-19. Our net profit (` in Crores)
810.12
stood at `324.90 Crores in FY 2018-19 and our earnings per share
stood at `45.28 in FY 2018-19.
324.90
leadership and brand recall.
45.28
industry prominence.
Warm regards,
Yadupati Singhania
Chairman and Managing Director
DIN - 00050364
VALUE-CREATION WORLD-CLASS
PROCESS MINING PRACTICES
BEST-IN-CLASS
TECHNOLOGY
STRONG INCREASED ROBUST PEOPLE
OPERATING LOGISTICAL PRACTICES
PRACTICES EFFICIENCY
DATA-BACKED AGGRESSIVE SOUND CONTROL
DECISION MAKING MARKETING AND AND GOVERNANCE
BESPOKE BRANDING
GREY CEMENT
TO WHITE CEMENT
GREY CEMENT – REVENUE MIX (%)
6% 7%
(8.37 MnTPA (₹3,431.98 Crores
from 7.89 MnTPA) from ₹3,211.71 Crores)
WHITE CEMENT
(INCLUDING
WALL PUTTY)
Production Net
volumes Sales
7% 12%
(1.26 MnTPA (₹1,487.19 Crores
from 1.18 MnTPA) from ₹1,330.99 Crores)
NUMBERS THAT
DEMONSTRATE PROGRESS
4,919.19
463.82
693.43
760.66
519.89
810.12
FY 14–15 FY 15–16 FY 16–17 FY 17–18 FY 18–19 FY 14–15 FY 15–16 FY 16–17 FY 17–18 FY 18–19
103.33
341.87
210.78
48.89
22.44
45.28
30.14
14.78
FY 14–15 FY 15–16 FY 16–17 FY 17–18 FY 18–19 FY 14–15 FY 15–16 FY 16–17 FY 17–18 FY 18–19
1,690.29
2,892.81
1,871.52
2,147.35
235.46
307.08
267.64
374.38
241.72
FY 14–15 FY 15–16 FY 16–17 FY 17–18 FY 18–19 FY 14–15 FY 15–16 FY 16–17 FY 17–18 FY 18–19
FY FY FY FY FY
14-15 15-16 16-17 17-18 18-19
307.78
194.74
FY 14–15 FY 15–16 FY 16–17 FY 17–18 FY 18–19 Quick Ratio 0.71 0.70 0.72 0.86 0.93
Fixed Asset
12.12% (28.32)% Coverage Ratio
1.42 1.44 1.49 1.61 1.65
INFRASTRUCTURE TO INCREASE
CEMENT DEMAND PIE
Mangrol Expansion
We are increasing our manufacturing capacity expansion plan, our production capacity of Grey
through brownfield and greenfield expansions, Cement will become 18 MnTPA in the next five
and consequently growing our market reach. years. This enables us to be prepared to leverage
Following the completion of our two-phased emerging sector-specific opportunities.
1.5 0.7
Aligarh, Uttar Pradesh Balasinor, Gujarat
Nimbahera Plant
PHASE 1:
ON COURSE
PHASE 2:
GEARING UP
NEW MINES
We have obtained mining leases
for additional limestone mines in
Madhya Pradesh and are in the
process of obtaining the requisite
regulatory and environmental
approvals. The estimated
limestone reserves in these
mines are approximately 518 MnT
(including proven and probable).
Gotan Plant
INCREASING EFFICIENCIES
UNRELENTING FOCUS ON EFFICIENCY
The relatively higher efficiency of the new We undertook various initiatives to facilitate
facilities at Mangrol will help us reduce our better operations and outcomes:
incremental power and fuel costs. Additionally, • Optimised equipment use.
by virtue of the increase in clinker production • Reduced wastage across processes.
capacity at Mangrol, our waste-heat-recovery- • Conducted preventive maintenance and part
based captive power generation capacity is replacements for better efficiency.
expected to increase by 13 MW, which would • Increased alternative usage of raw materials
further subsidise costs incurred in power • Reduced power cost through waste heat
consumption. recovery.
• Decreased limestone transportation cost,
as well as served the environment through
conveyor belts at limestone mines.
We are also seeking to reduce our logistics White Cement is a key raw material used in
costs through the proposed establishment manufacturing Wall Putty. Our White Cement
of (i) overland belt conveyor in Maliakhera manufacturing capabilities have also contributed
for the transport of crushed limestone at our to our growth in the Wall Putty segment. White
Maliakhera and Karunda mines and (ii) split Cement and Wall Putty segment has shown a
grinding units at Aligarh and Balasinor, which year-on-year growth of around 7% in terms of
will be proximate to sources of certain raw production volume and we expect this trend to
materials as well as the end market. continue. We intend to leverage the growth in the
Indian Wall Putty market by increasing our Wall
Putty production capacity. The realisations from
White Cement and White Cement-based products
are improving.
Surakshit Nirmaan
Digital Campaign
DIGITAL
DEALER ENGAGEMENTS
EMBEDDING DIGITISATION
ENCOURAGING DIVERSITY
ENSURING SAFETY AND HEALTH · Implemented a new work permit system with Safe
OF OUR PEOPLE Maintenance Procedure (SMP) for our maintenance
processes across all plants.
· Installed additional equipment to mitigate
Occupational health and safety are a key
accidents related to fire, such as fire hydrant,
priority for us. Supported by a well established
smoke detector and safety shower and reduced
Environment, Health and Safety (EHS) ecosystem
Accident Frequency Rate (AFR).
in place, we are continually working towards
· Improved our housekeeping standards to ensure
achieving zero injuries across all our operations.
a hygienic work environment that includes
During the year under review, we organised several
maintaining floors in a way that is free from slip
training programmes to achieve our objective of
or trip risks, preventing accidents.
‘achieving zero injuries’ at the workplace.
· Conducted Safety Competition across plants from
21st February to 5th March 2019 to evaluate safety
We also celebrated National Safety Week with
compliance standards at plants.
the commitment to keep safety as the top
· Started a new initiative – Kaizen in Safety to
priority and maintain a culture around it across
implement safety best practices.
J.K. Cement.
SAFETY APPROACH
HR AWARDS
During FY 2018-19, we won several awards for our
human resource efforts. Some of these are as
follows:
• The Golden Globe Tigers Award For Excellence
in HR Leadership.
• Excellence Award for HR Leadership by
Top Rankers Management Consultant.
• Employee Engagement Leadership Award
by Kamikaze.
• Conducted pest control and • Adopted several anganwadis. • Renovated pipelines for
fogging exercises for mosquito • Developed school infrastructure. recharging water bodies and
control. • Provided improved education providing water facility.
• Distributed baby kits and environment to motivate • Planted saplings around
maternity pads in government students for higher education. our mine and plant areas.
hospitals. • Offered free career counselling • Organised awareness
• Organised free eye check-up and training to youth for programmes on environmental
and medical camps. competitive courses. protection, including a rally
• Conducted awareness • Donated equipment such as on World Environment Day.
programmes on health and solar lights, bags and other
women’s safety (through school supplies.
SPARSH). • Encouraged students by
recognising their achievements
through medals distribution.
INFRASTRUCTURE SANITATION
DEVELOPMENT
GUIDED BY AN
EXPERIENCED BOARD
1 2 3
Conferred the Platinum Award Awarded the Best Growth Awarded the Prestigious
by Apex India Foundation for Performance in the cement ‘Rajasthan Energy Conservation
pollution control, excellent category at Dun & Bradstreet Award (RECA)-2018’ for JK White
safety standards and green belt Corporate Awards 2019. Cement Works, Gotan.
development at the Apex India
Excellence Awards for JK White,
Katni.
4 5 6
Awarded the GreenCo ‘Gold’ Felicitated as India’s Second J.K. Wall Putty was adjudged
Rating by the Confederation of Fastest Growing Cement ‘India’s No. 1 Brand’ in its
Indian Industry for JK Cement Company in the medium industry category for 2018.
Works, Jharli. category at the 3rd Indian
Cement Review Awards, 2018.
7 8
J.K. Cement SwachAbility Run Television commercials of JK
won bronze at Wow Awards Super Cement and JK PrimaxX
Asia, 2018 for its second bagged the silver and bronze
edition under the category CSR awards, respectively, at the
Campaign of the Year. Summit International Creative
Awards, 2018 under the product/
service commercial category.
WORLD ECONOMY rank by 23 position and climbed ladder from 100th rank
to the 77th rank.
Global growth is expected to remain at 3% in 2019-20.
The global economy is facing a confluence of risks,
OUTLOOK
which could severely disrupt economic activity and
inflict significant damage on longer-term development India’s GDP growth is expected to continue at 7% in
prospects. The economic progress across world is fiscal year 2019-20 driven by continued investment,
highly uneven. The risks include an escalation of trade improved export performance and resilient
disputes, the abrupt tightening of global financial consumption. The growth is expected to be favourable
conditions and intensifying climate changes may further mainly on three pillars, pre-election fiscal stimulus in
restrict growth momentum. Among the developing first half of financial year, infrastructure stimulus in
economies, the East and South Asia regions remain second half of 2019 and favourable monetary policy.
on a relatively strong growth trajectory, amid robust The interim union budget also focuses on strengthening
domestic demand conditions. infrastructure initiatives with planned capex of US$
47.29 billion for 2019-20. India is geared up to become
INDIAN ECONOMY US$ 5 trillion economy in next five years. The fiscal
deficit is expected to be 3.4% of the GDP for 2019-20.
Indian economy is one of the fastest growing economy
in the world and it continued at growth trajectory to
CEMENT INDUSTRY
mark as sixth largest economy compared to eleventh
largest in 2013-14. This is possible mainly due to Cement industry demand is expected to grow at 7%
‘Make in India’ drive along with digitisation bringing in for fiscal 2019-20. As per Crisil, with the addition
more transparency in doing business. Despite volatile of 23 million tons per annum cement production
crude price along with fluctuation in exchange rate capacity in fiscal 2019, the total production capacity
throughout the year, the GDP clocked at 6.8% in increased to 478 million tons. Further, it is estimated
2018-19. The growth was reflected across all sectors that capacity may increase to 502 million tons by 2020.
be it manufacturing, service and agriculture and is The growth in Cement demand is mainly driven by
also evident from World Bank latest ‘Doing Business Government initiatives towards housing for all and other
Report 2019’ which says that India has improved its infrastructure developments:
Government ‘Housing for All - Rural and Urban’ STATEMENT OF KEY FINANCIAL RATIOS
is a major source of cement consumption.
House approved under PMAY scheme touched 8 Particulars 2018-19 2017-18
million mark in urban area of which only 1.9 million Debtor Turnover Ratio 25.00 27.03
houses were completed under Pradhan Mantri Awas Inventory Turnover Ratio 8.93 8.82
Yojana PMAY-Urban and in case of construction Interest Coverage Ratio 4.09 3.62
under PMAY-Rural 7.5 million houses were completed Current Ratio 1.61 1.55
out of 10 million approved. Further, Real Estate Debt Equity Ratio 0.76 1.04
Regulation and Development Act (RERA)2016 and Operating Profit Margin (%) 16.47% 16.75%
Benami transaction act brought more transparency Net Profit Margin (%) 6.60% 7.53%
in the construction sector, in all giving boost to
Expansion projects
construction activity.
Commissioned wall putty unit at Katni having installed
India is fastest highway developer in the world with capacity of 2 Lacs tonnes per annum.
27 kms of highway built each day. With the uses of
Medium term plan
paver blocks/concrete tiles, construction of flyover
Grey Cement expansion of 4.2 million tonnes per annum
and other structure in road project would lead to
with 2.8 million clinker production line, 1 million tonnes
increase in cement demand. Further, Government
Cement grinding and Waste Heat Recovery system
has allocated US$ 2.67 billion in the budget for
at Mangrol, Rajasthan. 1 million cement grinding at
Pradhan Mantri Gram Sadak Yojana (PMGSY).
Nimbahera, Rajasthan along with two Split Grinding
Other Infrastructure Projects will also stimulate Units of 1.5 million tonnes at Aligarh (Uttar Pradesh) and
cement demand such as: 0.7 million tonnes at Balasinor (Gujarat) in on schedule
and will be completed by March 2020.
• Development of 100 cities across India.
To upgrade existing Line No-3 at Nimabhera resulting
• Smart cities mission which focus on water supply,
in increased Clinker Production by 1,000 TPD. This is
sanitation and solid waste management.
scheduled to complete by December 2020.
• Metro Rail project in selected cities for improving
Wall Putty expansion at Katni will be taken up in
rapid transport system.
2020-21. The expansion of 2 Lacs tonnes per annum
• Expanding the capacity of the railways and facilities would increase the Wall Putty capacity to 11 Lacs
for handling and storage yards. tonnes per annum.
Long term plan
PERFORMANCE
The Company’s long-term plan is to set up integrated
Industry plant having capacity of 3.0-3.5 MnTPA plant at Panna
As per CRISIL, Cement Demand for financial year (Madhya Pradesh) to achieve 18 MnTPA capacity by
2018-19 is 335 MnTpa thereby registering growth 2022. For this proposed expansion the Company has
of 12%. The housing sector is still a main demand two mining leases. These leases have enough reserves
driver accounting for 60-65% of total consumption. to support expansion of 15 MnTPA in phases.
Other demand drivers are Infrastructure and
Commercial & Industrial with 15-20 % share each. INDUSTRY CONCERN
Company’s operational and financial performance Regulatory Compliance: There are rapid changes
(Standalone) in emission norms relation to dust, NOx and SOx.
Grey Cement production volume increased to 8.36 Non-compliance of same lead to imposition of penalty
MnTpa in 2018-19 as against 7.88 MnTpa in 2017-18 and loss of brand reputation. For monitoring and to
thereby registering growth of 6%. comply with new standards issued by Ministry of
Environment and Forest & Climate change substantial
White Cement (inclusive of Wall Putty) production
capital expenditure has been done. Further ensuring
volume increased to 1.26 MnTpa as against 1.17
compliance with NOx & SOx is a part of green and
MnTpa in 2017-18 thereby registering growth of 7%.
sustainable development.
Net Sales increased to ` 4919.19 Crores in 2018-19
Raw Material: The cement industry is dependent on
as against ` 4542.59 Crores thereby registering
existing natural resources be it limestone or other
growth of 8.3%.
minerals for its sustenance. These resources are
EBIDTA increased to ` 810.12 Crores in 2018-19 depleting fast owing to growing demand of cement, to
as against ` 760.66 Crores thereby registering conserve our existing natural resources, alternative is
growth of 6.5%. to promote blended cement which require more of fly
ash and slag. This will reduce the cost of cement as
Net profit is ` 324.90 Crores in 2018-19 as against
well as promote use of waste by product of thermal
` 341.87 Crores in 2017-18 thereby registering
and steel plants.
de-growth of 4.9%.
past sustainability initiatives and performance, please This year has been the memorable year with many
refer: http://www.jkcement.com/sustainability _report. awards, such as
Human resources development National Award for Talent Management for its
Your company, as part of group’s strong cultural legacy, hiring initiatives
deeply believes in valuing human resource as one of the
Best HR Team of the Year
key assets of the organisation, wherein employees are
considered to be part of one big family. The value and The Golden Globe Tigers Award (For Excellence
philosophy of “philanthropy” and “One Family” are lived in HR Leadership)
and practiced, which bind together diverse manpower
Top Rankers Excellence Award for HR Leadership
across various manufacturing and office locations not
only within India, but, UAE and Africa as well. Employee Engagement Leadership Award this year
Your Company’s human resources are the strong This has helped to showcase your company, in various
foundation for creating many possibilities for its national and international platforms.
business. It partnered closely with the business to
Though the emphasis is on connectivity and speed,
implement and effect change seamlessly with due
the local connect with employees has been the
consideration for the human element. As the business
key in touching employee’s lives positively in some
strategically charted a path for expansion with new
way or the other.
brown field and green field projects, considering the
challenges of the expanding scale of operations, new
INTERNAL AUDITS AND CONTROLS
products, and coupled with it the new markets, the
human resource function added greater value in terms The Company believes that a strong internal control
of not only adding skilled manpower to support and framework is an important pillar of Corporate
strengthen the business growth and market expansion Governance. It has well established internal control
but also continuous talent development through various mechanisms commensurate with the size and
learning and long term developmental interventions complexity of its business. The company has inbuilt
for sales and manufacturing workforce with positive policies and procedures for safeguarding its assets,
business impact. prevention and detection of fraud and errors if
any, accuracy and completeness of the accounting
The focus has been on strengthening the employee
and timely preparation of financial information
brand and employee life cycle experience.
based on IND AS.
In last financial year, the company embarked on
Further, in order to maintain its independence
the journey of Digitisation by adopting SAP Success
and objectivity in observation, Internal Audit
Factors as its cloud-based HR platform, one of the
Department report on the efficacy and adequacy of
first in Indian Cement industry, to enable the last
Internal Control System to the Chairman of Audit
mile employee to connect seamlessly. This year HR
Committee of the Board.
integrated this platform into its mainstream operations
for greater progress excellence. Leveraging on this The Internal auditor verify the records as well as stock
platform, we automated all information related with at the depots of both grey and white cement. If any
Employee details (employee central), all policies and discrepancies are found in the system, it is reported
SOPs, Performance management system, Recruitment on monthly basis to process owner for corrective
with Internal Job posting and launched official social actions. Then the internal audit report duly signed by
network platform. There are some of the milestones the internal auditor is forwarded to marketing office
that human resource function has built to bring and internal audit head for review purpose. These keep
efficiency and accessibility to its HR processes and check on the existing system as designated process
systems to all employees across all locations. owners are supposed to undertake corrective action in
their respective areas and thereby strengthening the
As on 31st March 2019, your Company’s employee
internal control system.
strength stood at 3,414 employees, which is an increase
over last year due to new projects, new markets and
strengthening existing markets.
With an aim to support business against volatile
external environment, leadership development is being
given due importance, through the structured approach
involving assessment of gaps, coaching, across the
organisation. For the younger, but bright talent, we
started with the identification of High Potentials, using
credible and validated psychometric assessments tools.
Aim is to groom internal talent and create a talent
pipeline for our current and future talent needs.
Dear Members,
Your Directors have pleasure in presenting Company’s Twenty Fifth Annual Report and Audited Financial
Statements for the year ended 31st March, 2019
1 FINANCIAL RESULTS
`/Lacs
Particulars 2018-19 2017-18
Gross Turnover 491919.04 470955.40
Profit before depreciation & tax 66793.84 62599.53
Less: Depreciation 19436.50 18626.77
Profit Before Tax 47357.34 43972.76
Tax Expense (Including deferred tax and tax adjustment of earlier years) 14867.80 9785.40
Profit After Tax 32489.54 34187.36
Add: Retained earning at the begining of the year 91463.67 69890.85
Transfer to Debenture Redemption Reserve (87.60) 9.40
Dividend to Equity Shares (including tax thereon) 9315.10 8430
Balance to be carried forward 105672.09 91463.67
**
includes remuneration in AED from foreign subsidiary companies during the calendar year 2018.
Remuneration Paid
% increase in
Remuneration
SN Name Designation
2018-19 2017-18 from previous
year
1 Smt. Sushila Devi Singhania Non Executive Non Independent 1500000 1426000 5.2
2 Shri A. Karati Non Executive Independent 1225000 1200500 2
3 Shri J.N. Godbole Non Executive Independent 1350000 1375875 -
4 Dr. K.B. Agarwal Non Executive Independent 1725000 1651250 4.47
5 Shri K.N. Khandelwal Non Executive Non Independent 1400000 1350750 3.6
6 Shri Raj Kumar Lohia Non Executive Independent 1225000 1250875 -
7 Shri Suparas Bhandari Non Executive Independent 1350000 1325625 2
8 Mr. Paul Heinz Hugentobler Non Executive Non Independent 12060355 11863380 -
9 Mrs. Deepa Gopalan Wadhwa Non Executive Independent 1075000 - -
SEBI (LODR) (Amendment) Regulation 26. DIRECTORS’ RESPONSIBILITY STATEMENT
2018 has inserted Regulation 17(1A) w.e.f.
Pursuant to Section 134(5) of the Companies Act,
1.4.2019 whereupon a Director crossed
2013 the Board of Directors to the best of their
and/or would be crossing 75 years of age
knowledge and ability confirm that :
during tenure of Directorship requires
approval of Shareholders by way of Special i) In the preparation of the annual accounts,
Resolution for continuing in the office. the applicable accounting standards have
Accordingly, Mrs. Sushila Devi Singhania been followed along with proper explanations
(DIN 00142549), Dr. K.B.Agarwal (DIN relating to material departures;
00339934) and Mr. Kailash Nath Khandelwal
ii) The Directors have selected such accounting
(DIN 00037250) are seeking approval from
policies, judgments and estimates that are
Shareholders in order to continue in the Office
reasonable and prudent and applied them
w.e.f. 1.4.2019.
consistently, so as to give a true and fair view
The term of Mr. Yadupati Singhania as of the state of affairs of the company as on
Chairman and Managing Director would expire 31st March, 2019, and of the statement of
on 31.3.2020. Approval of Shareholders by Profit and Loss and cash flow of the company
way of Special Resolution is being sought for for the period ended 31st March, 2019;
another term of three years w.e.f. 1.4.2020 as
iii) Proper and sufficient care has been taken
Managing Director.
for the maintenance of adequate accounting
23.2. Key Managerial Personnel records in accordance with the provisions of
During the year under report, following the Companies Act, 2013 for safeguarding the
Officials acted as Key Managerial Personnel:- assets of the company and for preventing and
detecting fraud and other irregularities;
SN Name of the Official Designation
Shri Yadupati Singhania Chairman & iv) The annual accounts have been prepared on
Managing Director an ongoing concern basis;
Shri Ajay Kumar Saraogi President v) Proper internal financial controls to be
(Corporate Affairs) & CFO followed by the company has been laid down
Shri Shambhu Singh Asst. Vice President and that such internal financial controls are
(Legal) & Company adequate and were operating effectively and
Secretary
vi) Proper systems to ensure compliance with
the provisions of all applicable laws has been
24. MEETINGS OF THE BOARD OF DIRECTORS devised and that such systems were adequate
and operating effectively.
During the year 2018-19, five Board Meetings
were convened and held, the details of which
27. STATUTORY AUDITOR
are given in the Corporate Governance Report.
The intervening gap between the Meetings At the 23rd Annual General Meeting held on
was within the period prescribed under the 29/07/2017, M/s S.R. Batliboi & Co. LLP, Chartered
Companies Act, 2013. Accountants, (ICAI Firm Registration No. 301003E/
E300005) were appointed as the Statutory Auditors
25. BOARD EVALUATION of the Company to hold office till the conclusion
of 28th Annual General Meeting. As per amended
Pursuant to the provisions of the Companies Act,
provisions of Companies (Amendment) Act, 2017
2013 and Regulation 17 of the Listing Regulations,
the Board of Directors ratified appointment of M/s
the Board has carried out an annual performance
S.R. Batliboi & Associates from conclusion of 25th
evaluation of its Independent Directors and
Annual General Meeting till 26th Annual General
the Independent Directors also evaluated the
Meeting. The Statutory Auditors have consented
performance of Non- Independent Directors.
to the said appointment and confirmed that
The Board of Directors expressed their satisfaction
their appointment, if made, would be within the
with the evaluation process. The Board of Directors
limits mentioned under Section 143(3)(g) of the
also evaluated the functioning/performance of
Companies Act 2013 and the Companies (Audit and
Audit Committee, Stakeholders Relationship
Auditors) Rules, 2014.
Committee, Nomination & Remuneration
Committee, CSR Committee, Committee of
28. COST AUDITOR
Directors and expressed satisfaction with their
functioning/performance. Pursuant to section 148 of the Companies
Act, 2013 the Board of Directors on the
recommendation of the Audit Committee
appointed M/s K.G. Goyal & Company Cost
Accountants, as the Cost Auditors of the During the period under report, the Company
company for the Financial Year 2019-20 and undertook various activities e.g. Art, Culture,
has recommended their remuneration to the Community Welfare, Drinking Water, Sanitation,
Shareholders for ratification at the ensuing Annual Education, Health, Rural Development, Eradicating
General meeting. M/s K.G.Goyal & Company, have Hunger/Poverty. The Annual Report on CSR
confirmed that their appointment is within the activities is annexed herewith as Annexure B.
limits of the Section 139 of the Companies Act,
2013, and have also certified that they are free 33. STATUTORY INFORMATION
from any disqualifications specified under Section
33.1 Conservation of Energy, Technology Absorption,
141 of the Companies Act, 2013.
Foreign Exchange Earnings and Outgo.
The Audit Committee has also received a Particulars with regard to Conservation of
certificate from the Cost Auditor certifying their Energy, Technology Absorption, Foreign
independence and arm’s length relationship Exchange Earnings and outgo in accordance
with the company. with the provisions of Section 134 (3)(m) of
the Companies Act 2013 read with Rule 8(3) of
The Cost Audit Report for the financial
Companies (Accounts) Rules, 2014 in respect
year 2017-18 was filed with Ministry of
of Cement plants are annexed hereto as
Corporate Affairs.
Annexure C and form part of the Report.
29. SECRETARIAL AUDIT 33.2 Extract of Annual Return
The details forming part of the extract of the
The Board had appointed M/s Reena Jakhodia &
Annual Return in form MGT- 9 as required
Associates, Kanpur, a firm of Company Secretaries
under Section 92 of the Companies Act, 2013
in Practice, to carry out Secretarial Audit under the
is available at www.jkcement.com.
provisions of Section 204 of the Companies Act,
2013 for the Financial Year 2018-19 . The report 33.3 Business Responsibility Reporting
of the Secretarial Auditor is annexed to this The Business Responsibility Report for the
report as Annexure A. The report does not contain year ended 31st March, 2019 as stipulated
any qualification. under regulation 34 of the Listing Regulations
is annexed as Annexure D and forms part of
30. REPORTING OF FRAUD the Annual Report.
The Auditors of the company have not reported 33.4 Management Discussion & Analysis (MDA)
any fraud as specified under Section 143(12) of the Statement
Companies Act, 2013. Further, no case of Fraud The MDA as required under Listing
has been reported to the Management from any Regulation is annexed hereto and forms an
other sources. integral part of this Report
31. COMPLIANCE WITH SECRETARIAL STANDARDS 34. TRANSFER TO INVESTOR EDUCATION AND
ON BOARD AND ANNUAL GENERAL MEETINGS. PROTECTION FUND
The Company has complied with Secretarial During the year, the Company has transferred a
Standards issued by the Institute of Company sum of ` 7,03,326/- which represents unclaimed
Secretaries of India on Board meetings and Annual dividend and 27560 Equity Shares which
General Meetings. represents unclaimed shares to the Investor
Education and Protection Fund in compliance with
32. CORPORATE SOCIAL RESPONSIBILITY (CSR) provisions of the Companies Act, 2013.
Corporate Social Responsibility is an integral part
35. DISCLOSURES UNDER THE COMPANIES ACT,
of the Company’s ethos and policy and it has been
2013 AND LISTING REGULATIONS
pursuing this on a sustained basis. The Company
assists in running of Schools at their Cement 35.1 COMPOSITION OF AUDIT COMMITTEE:
Plants, ITIs and Sir Padampat Singhania University, The Board has constituted the Audit
Udaipur imparting value based education to Committee which comprises of
students. Also the Company played a constructive Dr. K.B. Agarwal as the Chairman and
role in the infrastructural development of Shri A. Karati, Shri J.N. Godbole, Shri K.N.
surrounding areas. Khandelwal and Shri R.K. Lohia as members.
More details on the committee are given in the opportunities of employment to all irrespective of
Corporate Governance Report. their caste, religion, colour, marital status and sex.
35.2 POLICY ON SEXUAL HARASSMENT OF WOMEN
38. CAUTIONARY STATEMENT
AT WORKPLACE:
The Company has zero tolerance towards Statements in the Directors Report and the
sexual harassment at the workplace and Management Discussion and Analysis describing
towards this end, has adopted a policy in line the company’s objectives, expectations or
with the provisions of Sexual Harassment of predictions, may be forward looking within
Women at Workplace (Prevention, Prohibition the meaning of applicable securities laws and
and Redressal) Act, 2013 and the Rules regulations. Actual results may differ materially
thereunder. All employees (permanent from those expressed in the statement.
contractual, temporary, trainees) are covered Important factors that could influence the
under the said policy. An Internal Complaints company’s operations include: global and domestic
Committee has also been set up to redress demand and supply conditions affecting selling
complaints received on sexual harassment. prices, new capacity additions, availability of
During the financial year under review, the critical materials and their cost, changes in
Company has not received any complaints of government policies and tax laws, economic
sexual harassment from any of the women development of the country, and other factors
employees of the Company. which are material to the business operations
of the company.
36. FAMILIARISATION PROGRAMME FOR
INDEPENDENT DIRECTORS 39. ACKNOWLEDGEMENTS
The familiarization programme aims to provide Your Directors wish to place on record their
Independent Directors with the cement industry appreciation for the valuable support received by
scenario, the socio-economic environment in your Company from Banks, Govt. of Rajasthan,
which the Company operates, the business model, Govt. of Karnataka, Govt. of Haryana, Government
the operational and financial performance of of Madhya Pradesh, Central Govt. and Government
the Company, significant developments so as to of Fujairah. The Board thanks the employees at all
enable them to take well informed decisions in levels for their dedication, commitment and hard
a timely manner. The familiarization programme work put in by them for Company’s achievements.
also seeks to update the Directors on the roles, Your Directors are grateful to the Shareholders/
responsibilities, rights and duties under the Act Stakeholders for their confidence and faith
and other statutes. reposed in Board.
ANNEXURE - A
To,
The Members,
J. K. Cement Limited,
Kamla Tower,
Kanpur.
We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence
to good corporate practices by J. K. Cement Limited (“the Company”) having its registered office at Kamla Tower,
Kanpur, U.P. and manufacturing units at (i)Kailash Nagar, Nimbahera, Dist. Chittorgarh, Rajasthan, (ii)Mangrol, Dist.
Chittorgarh, Rajasthan, (iii) Gotan, Dist. Nagaur, Rajasthan, (iv)Muddapur, Dist. Bagalkot, Karnataka, (v)Jharli, Dist.
Jhajjar, Haryana , (vi) Village: Rupand, Tehsil- Badwara, Dist. Katni, M.P. Secretarial Audit has been conducted
in a manner that provided us a reasonable basis for evaluating the corporate conduct/statutory compliances and
expressing our opinion thereon.
Based on our verification of books, papers, minute books, forms and returns filed and other records maintained
by the Company and also the information provided by the Company, its Officers, Agents and Authorized
representatives during the conduct of secretarial audit, we hereby report that in our opinion, the Company
has, during the audit period covering the financial year ended on 31st March, 2019, complied with the statutory
provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in
place to the extent, in the manner and subject to the reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records maintained by the
Company for the financial year ended on 31st March, 2019 according to the provisions of:
i. The Companies Act, 2013 (‘the Act’) and the rules made there under;
ii. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made there under;
iii. The Depositories Act, 1996 and the Regulations and Bye-laws framed there under;
iv. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of
Foreign Direct Investment and Overseas Direct Investment and External commercial Borrowings.,
v. The following Regulations and Guidelines with amendments thereto prescribed under the Securities and
Exchange Board of India Act, 1992 (‘SEBI Act’):-
a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
c)
The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2009;
d) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
e)
The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirement)
Regulations, 2015 as amended.
f) The Competition Act, 2002 and Rules/Regulations framed thereunder;
vi. Following other laws are applicable specifically to the company
a) Factories Act, 1948;
b) Industries ( Development & Regulation) Act, 1951;
c) Laws prescribed related to mining activities;
d) Labour Laws and other incidental laws related to labour and employees appointed by the Company either
on its payroll or on contractual basis as related to wages, gratuity, provident fund, ESIC, compensation etc;
e) Laws prescribed under prevention and control of pollution;
f) Laws prescribed under Environmental protection;
(Reena Jakhodia)
Proprietor
Membership No: F6435
C.P. No.: 6083
This report is to be read with our letter of even date which is annexed as Annexure A and forms an integral part
of this report.
To,
The Members,
J. K. Cement Limited,
Kamla Tower,
Kanpur.
(Reena Jakhodia)
Proprietor
Membership No: F6435
C.P. No.: 6083
1. A brief outline of the Company’s CSR policy, including overview of projects or programs undertaken and a
reference to the web-link to the CSR policy and projects or programs.
The CSR Policy was approved by the Board of Directors at its Meeting held on 1st November, 2014 and has
been uploaded on the Company’s website. The web link is http://www.jkcement.in/ce/policies/csrp/csr_
policy.html.
The Company undertook activities relating to education and rural development.
2.
The Composition of the CSR Committee.
i. Smt. Sushila Devi Singhania (Non-Executive, Non-Independent Director)
ii.
Dr. K. B. Agarwal (Non-Executive, Independent Director)
iii.
Shri J. N. Godbole (Non-Executive, Independent Director)
iv.
Shri Suparas Bhandari (Non-Executive, Independent Director)
3.
Average net profit of the Company for three Financial Years.
The average Net Profit for the last three years is ` 32,013 lacs.
4.
Prescribed CSR Expenditure (two percent of the amount as in item 3 above)
The Company is required to spend ` 640 lacs towards CSR for the Financial
Year 2018-19
5.
Details of CSR spent during Financial Year
a. Total amount spent for the Financial Year: ` 669 lacs
b.
Amount unspent, if any: NIL
c. Manner in which the amount spent during the financial year is detailed below:
Following expenditure has been made in accordance with the Company’s CSR Policy and permissible
under Schedule VII of the Companies Act, 2013 and rules framed thereunder:-
NIMBAHERA
NIMBAHERA
1 Various activities Art & Culture Udaipur Rajasthan 150000 150000 Direct
and promotions
for preserving and
encouraging Cultural
heritage and Art like
Srajan the spark
(Mushaira bhartiya
Lok kalamandal).
2 Providing Drinking Drinking Water Maliakhera& Rajasthan 1196907 1196907 Direct
water facilities for Nimbahera
nearby villages.
MUDDAPUR
1 Computer installation Rural Muddapur Karnataka 332619.00 332619.00
and Furniture in development and Ningapur
Government schools Village
2 Toilet construction Rural Halki Village Karnataka 300000.00 300000.00
at Halki Village development
3 Construction of Community Lokapur Village Karnataka 1992603.00 1992603.00
community hall and Welfare (near by Plant
development of Projects with in
surrounding area with 8 Kms)
installation of visitors
benchs and hand railings
at Lokapur village.
TOTAL (MUDDAPUR) 2625222.00 2625222.00
TOTAL GREY 46,305,205.47 46,305,205.47
WHITE CEMENT
1 Safe and Clean Drinking Eradicating Gotan Rajasthan 131000.00 131000.00 Expenses
Water Supply in rural hunger, Incurred for
areas through RO Plant. poverty and RO, Gotan,&
malnutrition, Help in
promoting Chief Minister
preventive Jal
health care Swavlamban
and sanitation Abhiyan
and making
available
safe drinking
water
2 Rural Area Rural Area Gotan Rajasthan 4191000.00 4191000.00 Approach Road
Development Development for Chepiya
-Approch Project Nada Temple
Road For and Water Tank
Chepiya As request by
Nada Temple Grame
And Tank Panchayat
Karwasaron ki
Dhani-This
Road will help
Villegers to
Reach the
Temple and
water pond
which is
adjacent to the
Temple and one
of the water
source for
villegers.
3 Rural Area Rural Area Gotan Rajasthan 45000.00 45000.00 Repairing
Development work at
Development
Project Dhanppa
-Civil Repairing
School-This
Work At
will be help
Dhanappa School
to safe the
childrens
6. In case the company has failed to spend the two percent of the average net profit of the last three
financial years or any part thereof, the company shall provide the reasons for not spending the amount in
its Board Report.
Not Applicable
7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy, is
in compliance with CSR objectives and Policy of the Company.
The CSR Committee hereby confirms that the implementation and monitoring of CSR activities is in
compliance with CSR objectives and the CSR Policy of the Company.
ANNEXURE - C
A) ENERGY CONSERVATION
Sustainable Development and continuous improvement of Key Performance Indicators is of prime importance
for the company. Electrical and Thermal energy being major cost element in cement manufacturing ,
remained main focus to reduce cost.
During the year 2018-19, following measures were taken giving reduction of power consumption by 15512943
kwh, and 9545 GJ by investing ` 406.22 lacs per annum.
• Installlation of Energy Efficient Equipments
• In-house small modifications.
• VFD installation.
• Improving Production & Operational Efficiency.
• Improving Thermal efficiency.
• Downsizing of the existing equipments.
• Process optimization
• R&D Activities and Adopting new Technology.
Process optimization
Monitoring of Production process and Analysis of regular data is very important for energy conservation.
By optimization of Process interlocks & monitoring process parameters good savings of ` 113.40 lacs by reducing
1685740 kwh of electricity were achieved with expenditure of ` 4.80 lacs only.
Detail of Savings are as under:-
Savings
Saving KWH (000) Saving GJ
(` in Lacs)
Installation of Energy Efficient Equipments 1662255 97.16
In House small modifications 107452 6.17
VFD installation 3938861 211.10
Improving Production & Operational Efficiency 7702134 410.52
Improving Thermal efficiency 9545 221.57
Downsizing of the existing equipments 416501 23.90
Process optimization 1685740 113.40
i. By R&D activities JK Cement Nimbahera has saved ` 176.31 lacs by reducing 3519183 kwh of electricity
with expenditure of ` 138.89 lacs only.
ii. Alternative fuel usage at JK Cement Mangrol of 50015 Ts. by which we saved 12761 Ts of Petcoke which
is equivalent to ` 1249.08 lacs savings by investing ` 72.30 lacs
And further Energy Management of JK Cement Ltd in FY 2019-20 ` 603 lacs has been planned for Technology
Absorptiom & Energy Conservation measures as under:-
i) Amount of ` 132.18 lacs has been planned for Nimbahera plant for Technology
Absorption & Energy Conservation measures for the year 2019-20.
ii) Amount of ` 67.34 lacs has been planned for Gotan plant for Technology
Absorption & Energy Conservation measures for the year 2019-20.
iii) Amount of ` 403.48 lacs has been planned for Mangrol plant for
Technology Absorption & Energy Conservation measures for the year 2019-20.
Particulars ` In lacs
Foreign Exchange earned in terms of actual inflows 1106.00
Foreign Exchange outgo in terms of Actual outflow 26758.55
ANNEXURE - D
8. List three key products / services that the Company 1. Grey Cement
manufactures / provides (as in balance sheet): 2. White Cement
3. White Cement based Wall Putty
4. Gypsum Plaster of Paris
5. Tile Adhesive
6. Primaxx
7. Shieldmaxx
9. Total number of locations where business activity is Head Office in Kanpur, Central Marketing Office in New Delhi and
undertaken by the Company Cement Plants in Nimbahera, Mangrol and Gotan in Rajasthan,
Muddapur in Karnataka and Jharli in Haryana, Katni in M.P.
Number of International Locations (Provide --
details of major 5)
Number of National Locations Head Office in Kanpur, Central Marketing Office in New Delhi and
Cement Plants in Nimbahera, Mangrol and Gotan in Rajasthan,
Muddapur in Karnataka and Jharli in Haryana, Katni in M.P.
10. Markets served by the Company - Local / State / White Cement & White Cement Based Wall Putty –Pan India.
National / International Grey Cement - Andhra Pradesh, Delhi, Goa, Gujarat, Haryana,
Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh,
Maharashtra, Punjab & Chandigarh, Rajasthan, Tamil Nadu,
Uttaranchal, Uttar Pradesh
SECTION D: BR INFORMATION
1. Details of Director / Directors responsible for BR:
a) Details of the Director / Directors responsible for implementation of the BR policy / policies:
DIN Number : 00050364
Name : Shri Yadupati Singhania
Designation : Chairman & Managing Director
Principle 1 Businesses should conduct and govern themselves with Ethics, Transparency and Accountability
Principle 2 Businesses should provide goods and services that are safe and contribute to sustainability throughout
their life cycle
Principle 3 Businesses should promote the well-being of all employees
Principle 4 Businesses should respect the interests of, and be responsive towards all stakeholders, especially those
who are disadvantaged, vulnerable and marginalized
Principle 5 Businesses should respect and promote human rights
Principle 6 Businesses should respect, protect and make efforts to restore the environment
Principle 7 Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
Principle 8 Businesses should support inclusive growth and equitable development.
Principle 9 Businesses should engage with and provide value to their customers and consumers in a
responsible manner
(C) Any clarifications for grievances related to either of the policies are addressed by the respective
leadership team member and if not addressed to satisfaction can be escalated to Company secretary at
shambhu.singh@jkcement.com
2a. If answer to Sl. No. 1 against any principle, is ‘No’, please explain why: (Tick up to 2 options)
from previous financial year. All the 21 complaints in conserving natural raw materials used
have been successfully resolved during the year. for cement production. Further, alternative
fuels such as agro-waste, carbon black, fibre
Principle 2: Goods and services
mass, plastic waste, liquid mixed waste and
1. List up to three of your products or services
solid mixed waste are consumed in kiln firing
whose designs have incorporated social
thus substituting fossil fuels to some extent.
or environmental concerns, risks and/ or
We have nearly doubled our alternative fuels
opportunities.
consumptions over the years.
a. Cement (Grey & White)
For water conservation, we are continuously
b. Wall Putty
exploring opportunities to increase use of
c. Primaxx recycled water and reduce water consumption
across our plant sites.
As a socially and environmentally responsible
company, JKCL consistently adopts sustainable ii. Reduction during usage by consumers (energy,
practices to demonstrate corporate citizenship. water) has been achieved since the previous
We aim to mitigate environmental impacts due to year?
our business operations and follow precautionary Cement as a product is used for a variety of
approach wherever we suspect that the risk of our purposes and by diverse consumers. Hence, it
actions might cause harm to environment. is not feasible to measure the usage (energy,
water) by consumers.
We invest in process equipment and systems
intended for economical use of energy and 3. Does the Company have procedures in place for
reducing the environmental impacts of our cement sustainable sourcing (including transportation)?
manufacturing activities. In this regard, we have (a) If yes, what percentage of your inputs was
implemented a fully integrated EHS management sourced sustainably? Besides, provide details
system in our manufacturing plants, which thereof in about 50 words or so.
are certified by the internationally recognised Yes, JKCL understands the impact of its
ISO-9001, ISO-14001 and OHSAS-18001 standards. supply chain and has taken proactive steps
We also have implemented Energy Management to identify the most significant environmental
System (EnMS), ISO 50001 thus achieving improved and social challenges within its value chain.
operational efficiencies. Our manufacturing locations are closer to
limestone mines which saves on transportation
2. For each such product, provide the following
cost and time involved in procurement of the
details in respect of resource use (energy, water,
primary raw materials. Here, company’s code of
raw material and so on) per unit of product
conduct, human rights aspects, procedures and
(optional):
practices are strictly followed.
i. Reduction during sourcing / production /
distribution achieved since the previous year JKCL encourages procurement through
throughout the value chain. vendors who adopt sustainable practices.
At JKCL, we give highest importance to We select vendors that are situated near to our
resource efficiency. Our focus is on improving manufacturing locations. We conduct screening
resource efficiency in clinker and cement of transport providers based on parameters
production by optimizing energy usage, like newer vehicles, pollution certificates, GPS
utilizing waste in production processes and based tracking etc. Also, we are shifting towards
targeting higher alternative fuel and raw the rail mode of transportation related to the
material usage. We are also working towards dispatches of our end products as well as inter
reducing the emissions, effluents and wastes unit transfer of clinker.
produced from our plants.
4. Has the Company taken any steps to procure
We undertook various initiatives during the goods and services from local and small
year for better operations and outcomes. producers, including communities surrounding
We reduced the raw material consumption, their place of work? If yes, what steps have been
optimized the use of equipment, reduced taken to improve the capacity and capability of
wastage across processes and conducted local and small vendors?
preventive maintenance and part With expansions of 4.2 MnTPA in pipeline, we
replacements for better efficiency. As a are contributing significantly towards direct and
result of such initiatives, we have witnessed indirect impact on country’s economy by providing
decrease in energy intensity despite increase more employment opportunities for the local
in production over the years. population and creating more business prospects
for local businesses as well.
Our operations consume alternative materials
like fly ash, pond ash, slag etc. which help
JKCL has been procuring goods and availing 3. Please indicate the number of permanent women
services from nearby local vendors. To Improve employees:
the capability of vendors, JKCL organizes 50 (as on 31st March 2019)
periodic vendor meet and capacity building
4. Please indicate the number of permanent
trainings. We always prefer to source our raw
employees with disabilities:
materials, spares and equipment locally i.e.
5 (as on 31st March 2019)
within India. Only in exceptional cases, wherein our
expectations are not met within the local market 5. Do you have an employee association that is
or due to lack of availability of required product or recognised by the Management?
services, we procure from outside India. The Company has recognized trade unions at our
manufacturing plants viz. Gotan, Nimbahera and
5. Does the Company have a mechanism to
Mangrol which are recognised by the Management.
recycle products and waste? If yes, what is the
percentage of recycling them (separately as <5%, 6. What percentage of your permanent employees is
5-10%, >10%)? Besides, provide details thereof in member of this recognised employee association?
about 50 words or so. At JK Cement, none of our permanent employees
The cement manufacturing process does not are part of the recognized trade unions at our
directly discharge any significant effluent or manufacturing plants. However, at Gotan,
waste. Fly ash generated from Company’s captive Nimbahera and Mangrol 100 %, 25% and 11%
power plant during power generation is utilised in of our workers respectively, are members of
blended cements. Further, recognizing the urgent recognized employee associations.
need to address global problems of increasing
7. Please indicate the number of complaints relating
paucity of fossil fuels, JKCL is using Alternative
to child labour, forced labour, involuntary labour,
Fuels and Raw (AFR) materials which will help in
sexual harassment in the last financial year and
conserving natural raw materials and fuels used for
pending as on the end of the financial year.
cement production.
No. of
Principle 3: Employees No of
complaints
1. Please indicate the total number of employees: S. No. Category
complaints
pending as
filed during the
3414 Permanent Employees (as on 31st March 2019) on end of the
financial year
financial year
2. Please indicate the total number of employees 1 Child Labour Nil Nil
hired on temporary / contractual / casual basis 2 Forced Labour Nil Nil
3 Involuntary Labour Nil Nil
Category of employees No of employees
4 Sexual Harassment Nil Nil
Sub-contracted employees 2617
8. What percentage of your under-mentioned employees were given safety & skill up-gradation training in the
last year?
HO &
Category Nimbahera Mangrol Gotan Jharli Katni Muddapur
Marketing
a Permanent employees
Staff 67% 83% 100% 100% - 100% 45%
Workers 42% 44% - - - 100% -
b Permanent women employees 60% 66% 100% - - 100% 38%
c Casual/ Temporary/Contractual 100% 100% 100% - 100% 100% -
employees
d Employees with disabilities 100% - 100% - - 100% -
3. Are there any special initiatives undertaken by 1. Alternative Fuel and Raw Materials (AFR);
the Company to engage with the disadvantaged,
2. Process optimization - Improving Output
vulnerable and marginalised stakeholders? If so,
and Efficiency, downsizing existing
provide details thereof, in about 50 words or so.
equipment, improving heat utilization and
Yes, all CSR interventions of the Company are
minimizing losses.
intended to target the disadvantaged, vulnerable
and marginalized stakeholders. JKCL runs 3. Installation of Variable Frequency Drive (VFD)
initiatives in the areas of education, community
4. Installation of energy efficient equipment
hygiene, infrastructure development, livelihood
support and vocational training and skill 5. Clinker substitution by making
development, all initiatives directed towards Blended Cements
helping our neighbouring communities, and
6. Waste heat recovery (WHR)
being instrumental in cultivating their progress.
To achieve the same, we have a well-established 7. Technology Absorption and R&D Activities
CSR policy which reflects our objective of
8. Solar Power Plant Installations
economic and social development to create a
positive impact. These initiatives form a part of JKCL’s climate
protection strategy and for more detailed
Principle 5: Human rights
information, please visit: https://
1. Does the policy of the Company on human rights
www.jkcement.com/pdf/jkcl_sustainability_
cover only the Company or extend to the Group /
report_2017-18new.pdf
Joint Ventures / Suppliers / Contractors / NGOs /
Others? 3. Does the Company identify and assess potential
All aspects of the human rights are in-built and environmental risks? Y/N
covered under Company’s Code of Conduct, Yes, the Company has a risk management
Harassment and Whistle blower policies as well as mechanism in place to identify, assess and
in various human resource practices/policies. mitigate the impact of potential environmental
risks. As part of our commitment towards
2. How many stakeholder complaints have been
mitigating environmental risk, we have
received in the past financial year and what
implemented a fully integrated EHS management
percent was satisfactorily resolved by the
system in our manufacturing plants. In addition,
Management?
we regularly conduct EHS management system
In total, 21 complaints have been received from
audits by third-party certification agencies to
shareholders and 21 complaints have been
maintain the requirements of global standards.
resolved by the management successfully.
There were no complaints regarding breach of 4. Does the Company have any project related to
human rights aspects during the reporting period. Clean Development Mechanism? If so, provide
details thereof in about 50 words or so. Besides,
Principle 6: Environment
if yes, mention whether any environmental
1. Do the policies related to Principle 6 cover only
compliance report is filed?
the Company or extends to the Group / Joint
Currently, no projects related to Clean
Ventures / Suppliers / Contractors / NGOs /
Development Mechanism have been taken up
Others?
by the Company.
JKCL’s Health, Safety and Environment policies,
rules and regulations are applicable for all 5. Has the Company undertaken any other initiatives
stakeholders i.e. employees, contractors and on clean technology, energy efficiency, renewable
other business partners, involved in JKCL’s energy etc. Y/N? If yes, please give hyperlink to
business activities. web page etc.
Over the years, JKCL has taken numerous
2. Does the Company have strategies / initiatives
initiatives from clean and green technology
to address global environmental issues, such as
perspective. Power generating capacity from waste
climate change, global warming, and others? If
heat recovery of JKCL stands at 23.20 MW capacity
yes, please give hyperlink for webpage etc.
which is forms roughly 18.45% of the total captive
Yes, the Company is committed to address global
power generation. In the FY 2018-19, 138674.20
environmental issues including reduction of GHGs
MWH of power was generated using waste heat
emissions. During the year 2018-19, these energy
recovery thus contributing to reduction in the
conservation measures led to a reduction in power
carbon footprint of the company. Further in line
consumption thus yielding monetary savings.
with our continuous efforts to shift with renewable
Energy efficiency & conservation initiatives taken to
energy, the company has consumed 219217 KWH
achieve the reduction of GHGs were:
4. What is the Company’s direct contribution to agreed strategy and are monitored on a quarterly
community development projects? Provide basis. We continuously seek to execute effective
the amount in ` and the details of the projects CSR interventions to boost the living standards
undertaken? and the overall economic status of under
` 668.97 Lacs was spent during the financial privileged community.
year 2018-19 on CSR initiatives across our major
Principle 9: Customers
manufacturing locations. This represents 2.28%
1. What percentage of customer complaints /
of average net profit after tax for immediately
consumer cases is pending, as at the end of the
preceding three financial year.
financial year?
We received 1073 Complaints in Grey & White
CSR Initiatives Total Expenditure
(FY 2018-19) (in ` Lacs)
Cement during the FY 2018-19, out of which
1071 complaints were resolved successfully
Rural Infrastructure development 320.36
by 31st March 2019. Only 2 complaints are
Health & Livelihood 107.97
pending, 1 each in case of Grey Cement & other
Environment & Animal Welfare 150.16
in White Cement and its Value-Added Products.
Education, Art & Culture & 90.48
Community Welfare
As on date, all the pending complaints regarding
31st March 2019 have been resolved successfully.
TOTAL 668.97
2. Does the Company display product information
5. Have you taken steps to ensure that this on the product label, over and above what is
community development initiative is successfully mandated as per local laws? Yes / No / N.A. /
adopted by the community? Please explain in Remarks (additional information).
around 50 words. Yes. The Company displays all information as
JKCL regularly engages with local community mandated by the regulations to ensure full
members to gaze the impact of its ongoing compliance with relevant laws.
CSR initiatives. Projects are assessed under the
3. Is there any case filed by any stakeholder against the Company regarding unfair trade practices,
irresponsible advertising and / or anti-competitive behaviour during the last five years and pending as at
the end of the financial year? If so, provide details thereof, in about 50 words or so.
Particulars Remarks/Status
The Competition Commission of India (CCI) vide The Company has filed statutory appeal before Honorable Supreme
its order dated 31.8.2016 imposed a penalty of Court which vide its order dated 5.10.2018 had admitted the appeal
` 12854 Lacs on the company. The appeal was & directed that the interim order of stay passed by the tribunal in
heard whereupon National Company Law Appellate this matter will continue for the time being. The company backed
Tribunal (NCLAT) vide order dated 25.07.2018 by legal opinion believes that it is good case and accordingly no
upheld CCI’s order. provision has been made in the accounts.
In a separate matter, CCI imposed penalty of On Company’s appeal, NCLAT has stayed the operation of CCI’s
` 928 Lacs vide order dated 19.1.2017 for alleged order. The matter is pending for hearing before NCLAT. Based on
contravention of provision of Competition Act, 2002 Legal opinion, the Company believes that it has a good case and
by the Company. accordingly, no provision has been made in the Audited Annual
Report of 2018-19.
4. Did your Company carry out any consumer survey / consumer satisfaction trends?
JKCL is a consumer centric company. The Company meet customers’ rapidly changing expectation by
supplying quality products at the right price. During the year, JKCL adopted consumer satisfaction practices
and reinforced superior quality standards across manufacturing locations.
(i) 12th May, 2018 (ii) 28th June , 2018 (iii) 28th July, 2018 (iv) 3rd November, 2018 (v) 2nd February, 2019
The attendance of each Director at Board Meetings and at the last Annual General Meeting
(AGM) was as under:
S. No. Name of Director No. of Board Meetings Attended Attendance at last AGM
1 Shri Yadupati Singhania 5 YES
2 Shri A. Karati 3 YES
3 Shri J.N. Godbole 4 YES
4 Shri K.B. Agarwal 5 YES
5 Shri K.N. Khandelwal 5 YES
6 Mr. Paul Heinz Hugentobler 3 NO
7 Shri R.K. Lohia 1 NO
8 Shri Suparas Bhandari 4 YES
9 Smt. Sushila Devi Singhania 5 NO
10 Shri Shyam Lal Bansal* 0 N.A
11 Smt. Deepa Gopalan Wadhwa** 2 N.A
(iii) The number of Directorships on the Board and Board Committees of other companies, of which the
Directors are members / Chairman is given as under:
No of Board
Relationship Committees** Name of Listed
No. of
interse (other than JK Company(ies)
Sl.No. Name of Director Category other
Director Cement Ltd) In (Other than
Directorship@
AGM Which J.K. Cement Ltd.)
Chairman Member
1 Shri Yadupati Executive, Smt.Sushila 7 - - --
Singhania Chairman Non- Independent Devi Singhania
& Managing Director
2 Shri Achintya Karati Non-Executive, - 7 4 4 1. Sangam (India) Ltd.
Independent 2. Jay Bharat
Maruti Ltd.
3. Delton Cables Ltd.
4. Shyam Telecom Ltd.
5. Uflex Ltd.
3 Smt. Sushila Devi Non-Executive, Shri Yadupati 1 - - --
Singhania Non- Independent Singhania
4 Shri J.N. Godbole Non-Executive, - 7 3 5 1. Emami Paper
Independent Mills Ltd.
2. Gujarat Alkalies and
Chemicals Ltd.
3. Saurashtra
Cement Ltd.
4. Kesar Terminals &
Infrastructure Ltd.
5. Zuari Agro
Chemicals Ltd.
6. Zuari Gobal Ltd.
No of Board
Relationship Committees** Name of Listed
No. of
interse (other than JK Company(ies)
Sl.No. Name of Director Category other
Director Cement Ltd) In (Other than
Directorship@
AGM Which J.K. Cement Ltd.)
Chairman Member
10 Shri.S.L.Bansal Non-Executive, - N.A. N.A. N.A. N.A
(resigned Independent
w.e.f.12.6.18)
11 Smt. Deepa Gopalan Non-Executive, 1 - - --
Wadhwa (appointed Independent
w.e.f. 3.11.18)
@ Directorships on all public limited companies, whether listed or not, has been included and all other companies including
private limited companies, foreign companies and companies under Section 8 of the Companies Act, 2013 has been excluded.
**
Chairmanship/ Membership of the Audit Committee and the Stakeholders Relationship Committee has been considered.
Note: None of the Director is acting as Director in more than 10 Public Limited Companies or acts as an Independent Director
in more than 7 Listed Companies. Further, none of the Director acts as a member of more than 10 committees or acts as a
Chairman of more than 5 committees across all Public Limited Companies in which he is a Director.
L.
Significant labour problems and their performance apart from sitting fees paid for each
proposed solutions. Any significant Board and Committee Meetings attended by them.
development in Human Resources/
Familiarization Program for Directors
Industrial Relations front like signing
On appointment, the concerned Director is
of wage agreement, implementation of
issued a Letter of Appointment setting out
Voluntary Retirement Scheme etc.
in detail, the terms of appointment, duties,
M.
Sale of investments, subsidiaries, assets responsibilities and expected time commitments.
which are material in nature and not in Each newly appointed Independent Director is
normal course of business. taken through an induction and familiarization
program including the presentation and interactive
N.
Quarterly details of foreign exchange
session with the Chairman and Managing Director
exposures and the steps taken by
and other Functional Heads on the Company’s
management to limit the risks of adverse
manufacturing, marketing, finance and other
exchange rate movement, if material.
important aspects. The Company Secretary briefs
O.
Non-compliance of any regulatory, the Director about their legal and regulatory
statutory or listing requirements responsibilities as a Director. The program also
and shareholders service such as includes visit to the plant to familiarize them with
non-payment of dividend, delay in all facets of cement manufacturing. On the matters
share transfer etc. of specialized nature, the Company engages
outside experts/consultants for presentation and
Board Training and Induction
discussion with the Board members.
At the time of appointing a Director, a formal
letter of appointment is given to him, which Meeting, Agenda and Proceedings of Board Meeting
inter alia explains the role, function, duties and • Agenda: All the meetings are conducted as
responsibilities expected of him as a Director of per well designed and structured agenda
the Company. The Director is also explained in and in line with the compliance requirement
detail the compliances required from him under under the Companies Act, 2013 Rules framed
the Companies Act, Regulation 25(7) of the Listing thereunder and applicable Secretarial
Regulations and other relevant regulations and his Standards prescribed by ICSI. All the agenda
affirmation taken with respect to the same. items are backed by necessary supporting
information and documents (except for the
Meetings of Independent Directors
critical price sensitive information, which
The Company’s Independent Directors meet at
is circulated separately or placed at the
least once in every financial year without the
meeting) to enable the Board to take informed
presence of Non-Independent Directors and
decisions. Agenda also includes minutes of
management personnel inter alia to:
the earlier meetings. Additional agenda items
- review the performance of Non- Independent in the form of “Other Business” are included
Directors and the Board as a whole, with the permission of the Chairman. Agenda
papers are circulated seven days prior to
- review the performance of the Chairman and
the Meeting. In addition, for any business
Managing Director of the Company, taking into
exigencies, the resolutions are passed by
account the views of Non-Executive directors,
circulation and later placed at the subsequent
- assess the quality, quantity and timeliness of Board/Committee Meeting for ratification/
flow of information between the Company’s approval.
management and the Board that is necessary
for the Board to effectively and reasonably • Invitees & Proceedings: Apart from the Board
perform their duties. members, the Company Secretary, the CFO,
the Special Executives, Business Heads are
During the year under review, the Independent
invited to attend all the Board Meetings. Other
Directors met on 2nd February, 2019 without
senior management executives are invited as
the presence of Non Independent Directors
and when necessary, to provide additional
and management personnel to discuss the
inputs for the items being discussed by the
aforesaid issues.
Board. The CFO briefs on the quarterly and
Performance evaluation of Independent Directors annual operating & financial performance
The Board evaluates the performance of and on annual operating & capex budget. The
Independent Directors and recommends Chairman and Managing Director, the CFO
commission payable to them based on their and other senior executives briefs on capex
commitment towards attending the meetings of proposals & progress, operational health &
the Board/Committees, contribution and attention safety, marketing & cement industry scenario
to the affairs of the Company and their overall and other business issues. The Chairman of
various Board Committees brief the Board on
all the important matters discussed & decided Company since 26th July, 2014. She is also Director
at their respective committee meetings, which of Yadu International Limited. She is a member of
are generally held prior to the Board Meeting. managing committee of Seth Anandram Jaipuria
School, Kanpur, President of Juari Devi Girls
• Post Meeting Action: Post meetings, all Inter College, Kanpur and President of Juari Devi
important decisions taken at the meeting are Girls Post Graduate College, Kanpur. She has
communicated to the concerned officials and been actively associated with programmes for
departments. Action Taken Report is prepared welfare and upliftment of economically weaker
and reviewed periodically by the Chairman sections, children and women and also with
& Managing Director, CFO and Company religious activities.
Secretary for the action taken/ pending to be
Mr. Achintya Karati aged about 73 years
taken.
Non-Executive, Independent Director (Law
• Support and Role of Company Secretary:
Graduate from Calcutta University)
The Company Secretary is responsible for
convening the Board and Committee Meetings, Achintya Karati is a non-executive, independent
preparation and distribution of Agenda and Director of our Company. He holds a bachelor’s
other documents and recording of the Minutes degree in law from the Calcutta University.
of the meetings. He acts as interface between He served as the country head of Government and
the Board and Management and provides Institutions, NCDEX and has also worked as senior
required assistance and assurance to the advisor to ICICI Securities Limited, and also with
Board and the Management on compliance ICICI Prudential Life Insurance Company Limited.
and governance aspects. Mr. Shambhu Singh, He retired as the country head, Government and
Company Secretary is the Compliance Officer Institutional Solutions Group, ICICI Bank Limited
for complying with the provisions of the in March, 2004. During his association with ICICI
Securities Laws. Limited, he served in various capacities, including
as the Deputy Zonal Manager (North) and Head of
Directors’ Profile Major Client Group (North). He has been associated
The brief profile of each Director as at the year end with our Company since 2005.
is given below:
Mr. Jayant Narayan Godbole aged about 74 years
Mr. Yadupati Singhania aged about 65 years Non-Executive, Independent Director {B.Tech
Chairman and Managing Director (Hons) from IIT Mumbai and holds Certificate in
(B. Tech from IIT,Kanpur) Financial Management}
Yadupati Singhania is the Chairman and Managing Jayant Narayan Godbole is a non-executive,
Director of our Company, and has been associated independent Director of our Company. He holds
with cement business since 1975. He holds a a bachelor’s degree in technology (honours) from
Bachelor of Technology degree from the Indian the Indian Institute of Technology, Mumbai and
Institute of Technology, Kanpur. He is also a also holds a certificate in Financial Management.
chief patron of Merchants Chamber of Uttar He has officiated as the Chairman and Managing
Pradesh and Kuladhipati of Dayanand Siksha Director of the Industrial Development Bank
Sansthan. Besides, being Chairman of the Board of India in 2005 and has also served as the
of Governors of Dr. Gaur Hari Singhania Institute Chairman of an empowered group working on the
of Management & Research, he is also President stabilization of the corporate debt restructuring
of Kanpur Productivity Council. He is presently the mechanism in India
Vice President of J.K. Organisation, President of
Mr. K. N. Khandelwal aged about 74 years
Uttar Pradesh Cricket Association and Chairman
Non-Executive, Non-Independent Director
of Employers Association of Northern India. He is
(Commerce Graduate and a Chartered Accountant)
also involved with various Educational and Social
Organisations in the city of Kanpur like Juhari Kailash Nath Khandelwal is a non-executive,
Devi Girls College, Kailashpat Singhania Sports non-independent director on our Board, and has
Foundation, Agrawal Sabha etc been the Director of our Company since 2004 and
presently discharging the function of Occupier
Smt. Sushila Devi Singhania aged about 83 years
of all manufacturing plants of the Company.
Non-Executive, Non- Independent Director
He holds a bachelor’s degree in commerce from
(Graduate of Arts)
Agra University. He is a fellow of the Institute of
Sushila Devi Singhania is a Non-executive, Chartered Accountants of India and a practicing
Non-independent Director of our Company. chartered accountant. He has over 45 years of
She has been functioning as a Director of our experience in the field of finance, accounts, and
taxation. He has served as president (finance and Agriculture Insurance Company of India Limited
accounts) of Jaykay Enterprises Limited (formerly and has served as the general manager of Oriental
J.K. Synthetics Limited).Commenced his career Insurance Company of India Limited and as
with J.K. Synthetics Limited in 1969; the assistant general manager of United India
Insurance Company Limited.
Dr. K. B. Agarwal aged about 79 years
Non-Executive, Independent Director (Graduate of Mrs. Deepa Gopalan Wadhwa aged about 63 years
Law, PhD, ICWA and CS) Non-Executive, Independent Director
Krishna Behari Agarwal is a non-executive, Mrs. Deepa Gopalan Wadhwa, has 36 years of
independent director of our Company. He holds Indian Foreign Service (IFS) career behind her.
post graduate degree in Commerce, degree in She joined IFS in 1979 and retired in December,
law and Ph.D in Commerce. He is a fellow of the 2015. She has served in the Ministry of External
Institute of Cost and Works Accountants of India Affairs, New Delhi, Indian Council for Cultural
and Institute of Company Secretaries of India. Relations and International Labour Organisation.
He is experienced in the fields of finance, accounts She has served as Ambassador of India to Japan
and capital markets. He has served Merchants’ (from 2012-2015), Qatar (from 2009-2012) and
Chamber of Uttar Pradesh and Uttar Pradesh Stock Sweden (from 2005-2009). She was concurrently
Exchange Association Limited as their President. accredited as Ambassador to Latvia (from
He has been a member of the Federation of Stockholm) and Republic of the Marshall Islands
Indian Chambers of Commerce and Industry (from Tokyo). During her career she has also held
and the Associated Chambers of Commerce & other significant assignments in Geneva, Hong
Industry of India. Kong, China and the Netherlands in between 1981
to 1987 and 1989 to 1998 and in the Ministry of
Mr. Paul Heinz Hugentobler aged about 70 years
External Affairs from 1987-1989 and 1999-2005.
Non-Executive, Non-Independent Director (Civil
Engineer & Degree in Economic Science) Important issues and subjects handled by her are
India’s relations and strategic policies concerning
Paul Heinz Hugentobler is a non-executive,
Pakistan, China, the GCC, Japan, EU and the UN.
non-independent Director of our Company.
In the context of the UN she has dealt specifically
He graduated in civil engineering from Swiss
with issues of global significance such as Climate
Federal Institute of Technology, Zurich and also
Change, Sustainable Development, Disarmament
has a degree in economic science from the
and Human Rights. In the context of India’s
Graduate School of Economics and Business of
economic priorities she has vast experience in the
St. Gallen. He has served as the area manager
promotion of Indian interests in the areas of trade,
for the Holcim Asia Pacific Region and was a
technology, investment and energy security during
member of the Holcim Executive Committee
her postings in Europe, the GCC and Japan.
responsible for South Asia and ASEAN. He is also
the chairman of Siam City Cement Group having Mrs Wadhwa is currently co-chair of the
its operations in Thailand, Vietnam, Indonesia, India-Japan Partnership Forum located in FICCI,
Bangladesh and Sri Lanka. member Governing Council of the Institute of
China Studies and serves as Independent Director
Mr. Raj Kumar Lohia aged about 64 years
on the Boards of a few companies.
Non-Executive, Independent Director (Bachelor of
Arts in Economics) - It is confirmed that in the opinion of the
Board, all the Independent Directors are
Raj Kumar Lohia is a non-executive, independent
in compliance with the provisions of the
Director of our Company. He holds a bachelor’s
SEBI (Listing Obligations and Disclosure
degree in economics from Kanpur University.
Requirements) Regulations, 2015 as amended
He joined our Board in 2004 and is also on the
time to time and are Independent of
board of directors of several other companies
the management.
Mr. Suparas Bhandari aged about 73 years
- During the F.Y. 2018-19, Mr. Shyam Lal
Non-Executive, Independent Director (Graduate of
Bansal, Non-executive Independent Director
Science and Law)
has relinquished Directorship due his
Suparas Bhandari is a non-executive, independent pre-occupation w.e.f 12.6.2018. He was
Director of our Company. He holds a bachelor’s appointed on 6.2.2016 for a period of five
degree in science and a bachelor’s degree in years. There was no material reason for his
law from the University of Jodhpur. He is the resignation other than his pre-occupation.
founder chairman and managing director of
- Skills/expertise/competence identified by the Board of Directors
1 Shri 65 Years Executive Director B.Tech form IIT, Kanpur 44 years’ experience in
Yadupati Singhania Cement Industry.
2 Shri Kailash 74 Years Non-Executive FCA, B.com from More than 45 years
Nath Khandelwal Non-Independent Agra University of experience in the
Director field of Finance,
Accounts and Taxation.
3 Dr K.B. Agarwal 79 Years Non-Executive Graduate of LAW, Vast experience in the field
Independent Director PhD, ICWA and CS of finance, accounts and
Capital Markets.
4 Mr. Paul H. 70 Years Non-Executive Graduated in Civil Experience of
Hugentobler Non-Independent Engineering from Swiss Cement Industry.
Director Federal Institute of
Technology, Degree in
Economic Science from
the Graduate School
of Economics and
Business of St. Gallen.
5 Smt. Sushila 83 Years Non-Executive Graduate of Arts Business and Philanthropy
Devi Singhania Non-Independent
Director
6 Shri Achintya Karati 73 Years Non-Executive Graduate of Law Vast experience in the field
Independent Director of banking and finance.
7 Shri 73 Years Non-Executive, Bachelor degree Vast experience in
Suparas Bhandari Independent Director in Science and Insurance sector.
Bachelor degree in Law.
8 Shri J.N Godbole 74 Years Non-Executive, B.Tech from IIT, Mumbai Experience in
Independent Director and hold certificate in Finance and Technology
Financial Management
9 Shri R.K Lohia 64 Years Non-Executive, Bachelor Industrialist
Independent Director degree in Economics
c.
major accounting entries involving 15.
reviewing the findings of any internal
estimates based on the exercise of investigations by the internal auditors
judgment by management; into matters where there is suspected
fraud or irregularity or a failure of internal
d.
significant adjustments made in the
control systems of a material nature and
financial statements arising out of
reporting the matter to the board;
audit findings;
16.
discussion with statutory auditors
e.
compliance with listing and other
before the audit commences, about the
legal requirements relating to
nature and scope of audit as well as
financial statements;
post-audit discussion to ascertain any
f.
disclosure of any related area of concern;
party transactions;
17.
to look into the reasons for substantial
g.
modified opinion(s) in the defaults in the payment to the depositors,
draft audit report; debenture holders, shareholders (in
case of non-payment of declared
5.
reviewing with the management, the
dividends) and creditors;
quarterly financial statements before
submission to the board for approval; 18.
to review the functioning of the whistle
blower mechanism;
6.
reviewing with the management, the
statement of uses / application of funds 19.
approval of appointment of chief financial
raised through an issue (public issue, officer after assessing the qualifications,
rights issue, preferential issue, etc.), the experience and background etc.
statement of funds utilized for purposes of the candidate;
other than those stated in the offer
20.
Carrying out any other function as is
document / prospectus / notice and
mentioned in the terms of reference of
the report submitted by the monitoring
the audit committee.
agency monitoring the utilisation of
proceeds of a public or rights issue and (ii) The audit committee shall mandatorily review
making appropriate recommendations to the following information
the board to take up steps in this matter; 1. management discussion and
analysis of financial condition and
7.
reviewing and monitoring the auditor’s
results of operations;
independence and performance and
effectiveness of audit process; 2.
statement of significant related party
transactions (as defined by the audit
8.
approval or any subsequent modification
committee), submitted by management;
of transactions of the listed entity with
related parties; 3.
management letters / letters of internal
control weaknesses issued by the
9.
scrutiny of inter-corporate loans
statutory auditors;
and investments;
4.
internal audit reports relating to internal
10.
valuation of undertakings or assets of the
control weaknesses;
listed entity, wherever it is necessary;
5.
the appointment, removal and terms
11.
evaluation of internal financial controls
of remuneration of the chief internal
and risk management systems;
auditor shall be subject to review by the
12.
reviewing with the management, audit committee.
performance of statutory and internal
6. statement of deviations:
auditors, adequacy of the internal
control systems; a)
quarterly statement of deviation(s)
including report of monitoring
13.
reviewing the adequacy of internal audit
agency, if applicable, submitted
function, if any, including the structure
to stock exchange(s) in terms of
of the internal audit department, staffing
Regulation 32(1).
and seniority of the official heading the
department, reporting structure coverage b)
annual statement of funds utilized
and frequency of internal audit; for purposes other than those stated
in the offer document/ prospectus/
14.
discussion with internal auditors
notice in terms of Regulation 32(7).
of any significant findings and
follow up there on;
(iii) Composition of the Committee (i) Role of the Committee shall, inter-alia,
Following Directors were the members of the include the following:
Audit Committee: (1) formulation of the criteria for determining
qualifications, positive attributes
i.
Dr. K. B. Agarwal (Chairman) Independent,
and independence of a director and
Non- Executive Director
recommend to the board of directors a
ii.
Shri A. Karati, Independent, policy relating to the remuneration of the
Non-Executive Director directors, key managerial personnel and
other employees;
iii.
Shri J. N. Godbole Independent,
Non-Executive Director
(2)
formulation of criteria for evaluation of
iv.
Shri K.N. Khandelwal, Non-Independent, performance of independent directors
Non- Executive Director and the board of directors;
v.
Shri R.K. Lohia, Independent,
(3)
devising a policy on diversity of
Non-Executive Director
board of directors;
All these Directors possess knowledge of
Corporate Finance/ Accounts/ Company Law/ (4) identifying persons who are qualified
Industry. Shri A.K.Saraogi, Chief Finance Officer to become directors and who may be
regularly attends the meetings and Shri Shambhu appointed in senior management in
Singh, Company Secretary acts as Secretary of accordance with the criteria laid down
the Committee. The Statutory Auditors of the and recommend to the board of directors
Company attend the meetings as Special Invitees. their appointment and removal;
All the Members on the Audit Committee have
the requisite qualification for appointment on (5) whether to extend or continue the term of
the Committee and possess sound knowledge of appointment of the independent director,
finance, accounting practices and internal controls. on the basis of the report of performance
evaluation of independent directors;
(iv) Meetings and Attendance
During the financial year ended
(6) To consider and recommend to the
31st March, 2019 four meetings were held
Board of Directors the remuneration
on (1) 12th May 2018 (2) 28th July 2018 (3)
of KMPs and SMPs.
3rd November 2018 (4) 2nd February 2019
The attendance at the Committee Meetings (ii) Composition of the Committee
was as under: Remuneration Committee of the Company as
on 31st March, 2019 comprised of:
S. No. Name of Director No. of Meetings Attended
1 Dr. K.B. Agarwal 4 (1) Shri Raj Kumar Lohia (Chairman):
2 Shri K. N. Khandelwal 4 Independent, Non-Executive Director
3 Shri R. K. Lohia 1
4 Shri Achintya Karati 3 (2) Shri A. Karati : Independent,
5 Shri J. N. Godbole 4 Non-Executive Director
(5) Shri Shambhu Singh, Company Secretary Director including details of fixed components
acts as Secretary of the Committee. and performance linked incentives.
Details of Remuneration paid to the Directors for the year ended 31st March, 2019
(In Rupees)
*
Benefits does not include payment of contribution to Provident Fund, which is exempted perquisite under applicable
provisions of the Companies Act, 2013 but includes Performance Incentive of ` 180 Lacs
**
US $ 150000 equivalent to ` 1,09,60,355 Paid in professional capacity.
-
To observe practices of Corporate -
To examine and determine the sufficiency
Governance at all levels and to suggest of Internal Control Processes for reporting
remedial measures wherever necessary. on and managing key risk areas.
(ii) CSR committee attendance -
To recommend the board
Two CSR committee meetings were held acceptable level of risk.
during the year on (1) 12th May,2018 and (2)
-
To access the cyber security and risk
3rd November,2018
involve therein.
No. of Meetings -
To report the trends on the Company’s
S. No. Name of Director
Attended risk profile, report on specific risk and the
1 Smt. Sushila Devi Singhania 2 status of the risk management process.
2 Dr. K. B. Agarwal 2
-
To oversee the formal review activities
3 Shri J. N. Godbole 2
associated with effectiveness of risk
4 Shri Suparas Bhandari 2
management and internal control system.
-
To review and assess the nature, role,
7. RISK MANAGEMENT COMMITTEE
responsibility and authority of the risk
The provisions of Regulation 21(5) of SEBI management function.
(Listing Obligations and Disclosure Requirements)
-
To review process and procedures to
(Amendment) Regulations, 2018 become applicable
ensure the effectiveness of internal
to the Company w.e.f. 1.4.2019. Accordingly, the
systems of control in guiding the
Board of Directors of the Company in its meeting
decision making.
held on 2.2.2019 constituted Risk Management
Committee with the following composition. -
Provide an independent and objective
No meeting of Risk Management Committee has oversight and view of the information
been held during 2018-19. presented by the management.
-
To review the risk bearing capacity of the
(i) Composition of Risk Management Committee
company in light of its reserve, insurance
coverage, guarantee funds or other such
S. No. Name of Director Designation of Director
financial structures.
1 Dr. K. B. Agarwal Non-Executive,
Independent Director -
Board shall review the performance of the
2 Shri J. N. Godbole Non-Executive, risk management committee annually.
Independent Director
3 Shri K. N. Non-Executive, 8. CMD/CFO CERTIFICATION
Khandelwal Non-Independent Director
The Chairman and Managing Director and the CFO
4 Smt. Deepa Non-Executive,
Gopalan Wadhwa Independent Director
have certified to the Board, interalia the accuracy
of financial statements and adequacy of Internal
(ii) Role and Responsibility of Committee shall Controls for the financial reporting purpose as
inter-alia includes the following: required under Listing Regulations, for the year
- To access the Company’s risk profile and ended 31.3.2019.
key areas of risk
Dates, time and places of last three Annual General meetings held are given below:
Four special resolutions were passed in the the provisions of Section 110 of the Companies
Annual General Meeting of the company held on Act, 2013. The Chairman of the Audit Committee
6th August, 2016. Two special resolutions were was present at AGMs held on 6th August, 2016,
passed in the Annual General Meeting of the 29th July 2017 and 28th July, 2018 to answer the
Company held on 29th July, 2017. Two special queries of the shareholders.
resolution were passed in the Annual General
Disclosures regarding appointment or re-
Meeting of the Company held on 28th July, 2018.
appointment of Directors
There were no matters required to be dealt/
According to the provisions of Companies Act,
passed by the Company through postal ballot, in
2013 read with Articles of Association of the
any of the aforesaid meetings, as required under
Company one Non-Executive, Non-Independent
Director Mr. Paul Heinz Hugentobler will be retiring Nav Bharat Times, Hindustan, Times of India and
by rotation at the ensuing Annual General Meeting Nafa Nuksan newspapers. Management Discussion
of the Company and being eligible offers himself and Analysis forms part of Annual Report, which is
for re-election. Given below is the brief resume posted to the Shareholders of the Company.
of Mr. Paul Heinz Hugentobler pursuant to the
All vital information relating to the Company and
listing regulations:
its performance, including quarterly results etc.
Paul Heinz Hugentobler is a non-executive, are simultaneously posted on Company’s website
non-independent Director of our Company. www.jkcement.com. Further, Shareholding
He graduated in civil engineering from Swiss pattern and quarterly corporate governance report
Federal Institute of Technology, Zurich and also has is uploaded on the NSE Electronic Application
a degree in economic science from the Graduate Processing System (NEAPS) maintained by NSE and
School of Economics and Business of St. Gallen. He www. listing.bseindia.com maintained by BSE.
has served as the area manager for the Holcim Asia
Details of shares lying in the Escrow Account of
Pacific Region and was a member of the Holcim
the Registrar & Share Transfer Agent.
Executive Committee responsible for South Asia
and ASEAN. He is also the chairman of Siam City As per SEBI Circular dated 24th April, 2009 bearing
Cement Group having its operations in Thailand, reference no.SEBI/CFD/ DIL/LA/1/2009/24/04,
Vietnam, Indonesia, Bangladesh and Sri Lanka. every Company is required to report the details
of the shares lying in the Escrow Account which
Code of Conduct
are yet to be credited to the investors who
The Board of Directors has already adopted
were allotted shares in the IPO. Accordingly, it
the Code of Ethics & Business Conduct for the
is reported that as on 31.03. 2019, 160 number
Directors and Senior Management Personnel.
of equity shares of 3 (three) shareholders are
This Code is a comprehensive code applicable to
lying in the Escrow Account with Stock Holding
all Executives as well as Non- Executive Directors
Corporation of India Ltd, Kanpur (DP.Id.IN301330
and members of the Senior Management. A copy
Client ID 19881648).
of the Code has been hosted on the Company’s
website www.jkcement.com. The Code has been Prevention of Insider Trading
circulated to all the members of the Board and In accordance with the Securities and Exchange
Senior Management Personnel and compliance of Board of India (Prohibition of Insider Trading
the same has been affirmed by them hereinafter. Regulations), a comprehensive code of conduct
for prevention and regulation of trading in the
9. MEANS OF COMMUNICATIONS Company’s share by insiders is in vogue. The Code
prohibits the purchase or sale of Company shares
The Annual, Half yearly and Quarterly results are
by the Directors and the designated employees
submitted to the Stock Exchange(s) in accordance
while in possession of unpublished price sensitive
with Listing Regulations and the same are normally
information in relation to the company.
published in Business Standard, Economic Times,
Dividend Policy
The Company has been declaring/paying dividend every year since 2005-06 consistently. It is maintaining
a payout of 20% to 25% of Net profit as dividend (including tax)
(v) Listing on Stock Exchanges
The Equity shares of the Company are listed with the Bombay Stock Exchange Ltd. and National
Stock Exchange of India Ltd. and the listing fees has been duly and timely paid to both the Stock
Exchanges for 2018-19.
(vi) Stock Code
BSE 532644 NSE JKCEMENT
ISIN NUMBER INE823G01014
(vii) Market Price Data
STOCK MARKET DATA (BSE) & SENSEX
Month BSE high ` Bse low ` BSE Sensex high BSE Sensex low
APRIL, 2018 1015.00 910.25 35213.30 32972.56
MAY, 2018 1025.00 925.55 35993.53 34302.89
JUNE, 2018 953.45 855.25 35877.41 34784.68
JULY, 2018 875.00 750.00 37644.59 35106.57
AUGUST, 2018 819.30 729.00 38989.65 37128.99
SEPTEMBER, 2018 814.30 757.00 38934.35 35985.63
OCTOBER, 2018 779.00 650.00 34748.69 33291.58
NOVEMBER, 2018 743.90 669.00 36389.22 34303.38
DECEMBER, 2018 775.00 691.00 36554.99 34426.29
JANUARY, 2019 750.00 685.15 36701.03 35382.08
FEBRUARY, 2019 768.80 656.00 37172.18 35287.16
MARCH, 2019 868.95 720.10 38748.54 35926.94
Month NSE high NSE low NSE NIFTY high NSE NIFTY low
APRIL, 2018 1017.70 926.70 10759.00 10111.30
MAY, 2018 1022.95 926.35 10929.20 10417.80
JUNE, 2018 948.50 860.00 10893.25 10550.90
JULY, 2018 879.00 748.35 11366.00 10604.65
AUGUST, 2018 819.00 750.00 11760.20 11234.95
SEPTEMBER, 2018 812.00 760.00 11751.80 10850.30
OCTOBER, 2018 773.85 649.55 11035.65 10004.55
NOVEMBER, 2018 745.00 672.20 10922.45 10341.90
DECEMBER, 2018 774.70 701.05 10985.15 10333.85
JANUARY, 2019 751.00 683.00 10987.45 10583.65
FEBRUARY, 2019 772.35 682.50 11118.10 10585.65
MARCH, 2019 872.00 717.05 11630.35 10817.00
No Of Equity Shares Held No. of Share Holders % Of Share Holders No. Of Shares Held % Of Share Holdings
UP TO 500 66528 98.37 2540024 3.29
501 TO 1000 607 0.90 434785 0.56
1001 TO 2000 197 0.29 292901 0.38
2001 TO 3000 63 0.09 159239 0.21
3001 TO 4000 35 0.05 124647 0.16
4001 TO 5000 17 0.02 76922 0.10
5001 TO 10000 47 0.07 350330 0.45
10001 AND ABOVE 137 0.21 73289403 94.85
TOTAL 67631 100.00 77268251 100.00
Category No. of Share holders % of Share holders No. of Shares Held % of Share holding
Promoters and Promoter group 23 00.04 44866579 58.07
Mutual Funds / UTI 87 00.13 16489555 21.34
Financial Institutions / Banks 59 00.09 15446 00.02
Insurance Companies 8 00.01 2592118 03.36
Foreign Institutional Investors 16 00.02 24110 00.03
Foreign Portfolio 85 00.13 7730832 10.00
Investors Corp.
Bodies Corporate 604 00.89 769917 01.00
Individuals 63448 93.81 4114059 05.32
Other 3301 04.88 665635 00.86
TOTAL 67631 100.00 77268251 100.00
Plant Location
INDIA
Grey Cement Plants Kailash Nagar, Nimbahera, Dist. Chittorgarh, Rajasthan
Mangrol, Dist. Chittorgarh, Rajasthan
Gotan, Dist. Nagaur, Rajasthan
Muddapur, Dist. Bagalkot, Karnataka
Jharli, Dist. Jhajjar, Haryana
Satha, Pargana Morthal, Tehsil: Koil, Dist: Aligarh, UP (under
implementation)
Vadadala, Tehsil: Balasinor, Dist: Mahisagar, Ahmedabad Indore
Highway, Gujrat (under implementation)
White Cement & White Cement based Gotan, Dist. Nagaur, Rajasthan
Wall Putty Plant Village: Rupaund, Tehsil - Badwara, Dist. Katni, M.P
Thermal Power Plants Kailash Nagar, Nimbahera, Dist. Chittorgarh, Rajasthan
Gotan, Dist. Nagaur, Rajasthan
Muddapur, Dist. Bagalkot, Karnataka
Mangrol, Chittorgarh, Rajasthan
Plant Location
INDIA
Waste Heat Recovery Power Plant (For i) Kailash Nagar, Nimbahera, Dist. Chittorgarh, Rajasthan
captive consumption) ii) Mangrol, Dist. Chitorgarh, Rajasthan
OVERSEAS
Dual process White/Grey Cement Plant Plot No.7, Habhab, Tawian Fujairah, UAE
(xviii) S
EBI vide its circular dated 7.1.2010 has made it mandatory to furnish PAN copy in the following
cases
a) Deletion of name of deceased shareholder, where the shares are held in the name of two or
more shareholders.
b) Transmission of shares to the legal heirs, where deceased shareholder was a sole holder.
c)
Transposition of shares in case of change in the order of names in which physical shares are held
jointly in the names of two or more shareholders
Other Disclosures
a)
There are no materially significant transactions with the related parties viz. Promoters, Directors
or the Management, their Subsidiaries/ Associates or relatives conflicting with Company’s
interest. Suitable disclosure as required by the Accounting Standard (AS18) has been made in the
Annual Report.
b)
No penalties or strictures have been imposed on the Company by Stock Exchange or SEBI or any
statutory authority on any matter related to capital markets during last three years.
c) Establishment of Vigil Mechanism
With the expansion of business in terms of volume value and geography, various risks associated
with the business have also increased considerably. One such risk identified is the risk of fraud and
misconduct. The Companies Act, 2013 and the SEBI (LODR) Regulations, 2015 mandates the listed
companies to formulate appropriate vigil mechanism and whistle blower policy. The Company, since
its inception believes in honest and ethical conduct from all the employees and others who are
directly or indirectly associated with it. The Audit Committee is also committed to ensure fraud-free
work environment. Risk Management Policy and Whistle Blower Policy are in vogue.
The policy is applicable to all the Directors, employees, vendors and customers and provides
a platform to all of them to report any suspected or confirmed incident of fraud/misconduct,
unethical practices, violation of code of conduct etc.
d)
The Company has complied with the mandatory requirements of Listing Regulations. The Company
has complied with the non-mandatory requirements relating to the remuneration committee to the
extent detailed above.
e) Web link of “Policy for determination of Material Subsidiaries”
https://www.jkcement.com/pdf/JKCL-Policy-for-determining-Material-Subsidiary.pdf
f) Web link of “Policy on dealing with related party transactions”
https://www.jkcement.com/pdf/related_party_transaction_policy_of_ jk_cement_ltd_20.11.14.pdf
g)
Allotment of 7341001 equity shares to QIBs
During the year as permitted in SEBI (ICDR) Regulations, 2009, approval of Board, Shareholders
and Stock Exchanges (BSE & NSE), 7341001 equity shares of ` 10/- each allotted to Qualified
Institutional Buyers (QIBs) and subsequently dematerialised through Corporate Action.
h) Increase in issued, subscribed and paid up share capital
During the year the issued, subscribed and paid up share capital stands increased from 6,992.72
lacs divided into 69927250 equity shares of ` 10/- each to 7,726.82 lacs divided into 77268251
equity shares of ` 10/- each.
i) Details of fund utilization raised through Qualified Institutional Placement:
The funds raised through Qualified Institutional Placement has been strictly utilized for the
purpose stipulated in the offer document/Information Memorandum. The Investment Committee is
regularly monitoring the utlisation of fund.
j) Certificate from Company Secretary in practice has been obtained stating that none of the
Directors on the Board of the Company have been debarred or disqualified from being appointed or
continuing as directors of Company by SEBI/MCA or any such statutory authority.
k)
Statutory Audit Fees paid to Statutory Auditors:
l) Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013:
DECLARATION
To
The Members of J.K. CEMENT LIMITED
We have examined the compliance of conditions of Corporate Governance by J.K. Cement Limited (“ the
Company”) for the year ended 31st March, 2019, as per regulations 17-27, clauses (b) to (i) of regulation 46(2)
and Paragraphs C,D and E of schedule V of the Securities and Exchange Board of India ( Listing Obligations and
Disclosure Requirements) Regulations, 2015 (“ Listing Regulations”) with amendments as applicable.
The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination
was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance
of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial
statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the
Company has complied with the conditions of the Corporate Governance as stipulated in the above mentioned
Listing Agreement/ Listing Regulations as applicable.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the
efficiency or effectiveness with which the Management has conducted the affairs of the company.
Reena Jakhodia
Proprietor
Place : Kanpur Membership No: F6435
Date: 15-05-2019 C.P. No.: 6083
REPORT ON THE AUDIT OF THE STANDALONE IND The National Company Law Appellate Tribunal
AS FINANCIAL STATEMENTS ('NCLAT'), on hearing the appeal in the first matter,
upheld the decision of CCI for levying the penalty vide
Opinion
its order dated July 25, 2018. Post order of the NCLAT,
We have audited the accompanying standalone Ind
CCI issued a revised demand notice dated August 7,
AS financial statements of J. K. Cement Limited (“the
2018 of ` 15,492 lacs consisting of penalty of ` 12,854
Company”), which comprise the Balance sheet as at
lacs and interest of ` 2,638 lacs. The Company has
March 31, 2019, the Statement of Profit and Loss,
filed appeal with Hon’ble Supreme Court against
including the statement of Other Comprehensive
the above order. Hon’ble Supreme Court has stayed
Income, the Cash Flow Statement and the Statement
the NCLAT order. While the appeal of the Company
of Changes in Equity for the year then ended, and notes
is pending for hearing, the Company backed by a
to the financial statements, including a summary of
legal opinion, believes that it has a good case and
significant accounting policies and other explanatory
accordingly no provision has been considered in the
information.
books of accounts.
In our opinion and to the best of our information and
In the second matter, demand had been stayed and
according to the explanations given to us, the aforesaid
the matter is pending for the hearing before NCLAT.
standalone Ind AS financial statements give the
While the appeal of the Company is pending for
information required by the Companies Act, 2013, as
hearing, the Company backed by a legal opinion,
amended (“the Act”) in the manner so required and give
believes that it has a good case and accordingly
a true and fair view in conformity with the accounting
no provision has been considered in the books of
principles generally accepted in India, of the state of
accounts.
affairs of the Company as at March 31, 2019, its profit
including other comprehensive income, its cash flows Our opinion is not modified in respect of this matter.
and the changes in equity for the year ended on that
Key Audit Matters
date.
Key audit matters are those matters that, in our
Basis for Opinion professional judgment, were of most significance in our
We conducted our audit of the standalone Ind AS audit of the standalone Ind AS financial statements for
financial statements in accordance with the Standards the financial year ended March 31, 2019. These matters
on Auditing (SAs), as specified under section 143(10) were addressed in the context of our audit of the
of the Act. Our responsibilities under those Standards standalone Ind AS financial statements as a whole, and
are further described in the ‘Auditor’s Responsibilities in forming our opinion thereon, and we do not provide
for the Audit of the Standalone Ind AS Financial a separate opinion on these matters. For each matter
Statements’ section of our report. We are independent below, our description of how our audit addressed the
of the Company in accordance with the ‘Code of Ethics’ matter is provided in that context.
issued by the Institute of Chartered Accountants of
We have determined the matters described below to
India together with the ethical requirements that are
be the key audit matters to be communicated in our
relevant to our audit of the financial statements under
report. We have fulfilled the responsibilities described
the provisions of the Act and the Rules thereunder,
in the Auditor’s responsibilities for the audit of the
and we have fulfilled our other ethical responsibilities
standalone Ind AS financial statements section of
in accordance with these requirements and the Code
our report, including in relation to these matters.
of Ethics. We believe that the audit evidence we have
Accordingly, our audit included the performance of
obtained is sufficient and appropriate to provide a basis
procedures designed to respond to our assessment of
for our audit opinion on the standalone Ind AS financial
the risks of material misstatement of the standalone
statements.
Ind AS financial statements. The results of our audit
Emphasis of Matter procedures, including the procedures performed to
We draw attention to Note 36 (A) to the standalone address the matters below, provide the basis for our
Ind AS financial statements wherein it has been stated audit opinion on the accompanying standalone Ind AS
that the Competition Commission of India ('CCI') has financial statements.
imposed penalty of ` 12,854 lacs (‘first matter’) and `
928 lacs (‘second matter’) in two separate orders dated
August 31, 2016 and January 19, 2017 respectively for
alleged contravention of provisions of Competition Act
2002 by the Company. The Company has filed appeals
against the above orders.
Key audit matters How our audit addressed the key audit matter
Impairment of Investments in J.K. Cement (Fujairah) FZC, a wholly owned subsidiary
(as described in note 4(A) of the standalone Ind AS financial statements)
As at March 31, 2019 the Company has an investment in Our audit procedures included the following:
J. K. Cement (Fujairah) FZC, a wholly owned subsidiary of • Gained an understanding of the impairment assessment
` 46,885.04 lacs. process, and evaluated the design and tested the operating
effectiveness of controls.
J. K. Cement Works (Fujairah) FZC (step down subsidiary) is
incurring losses and its entire net worth is eroded. As a result, • Assessed the Company’s valuation methodology applied in
an impairment assessment was required to be performed determining the recoverable amount.
by the Company by comparing the carrying value of these
investments to their recoverable amount to determine • Assessed the assumptions around the key drivers of the cash
whether an impairment was required to be recognised. flow forecasts including estimated reserved, discount rates,
expected growth rates and terminal growth rates used.
For the purposes of the above impairment testing, value in use
has been determined by forecasting and discounting future • Discussed potential changes in key drivers as compared to
cash flows. Furthermore, the value in use is highly sensitive to previous year / actual performance with management in
changes in some of the inputs used for forecasting the future order to evaluate whether the inputs and assumptions used
cash flows. in the cash flow forecasts were reasonable.
Further, the determination of the recoverable amount of the • Involved specialists to assist us in auditing the valuation
investments in J. K. Cement (Fujairah) FZC involved judgments methodologies and sensitivity testing of key assumptions
due to inherent uncertainty in the assumptions supporting the used by management in determining the recoverable value
recoverable amount of these investments. headroom.
Accordingly, the impairment of investments in J. K. Cement • Tested the arithmetical accuracy of the models.
(Fujairah) FZC, was determined to be a key audit matter in our
audit of the standalone Ind AS financial statements. • Assessed the relevant disclosures made within the
standalone Ind AS financial statements.
Claims, litigations and contingent liabilities
(as described in note 36 of the standalone Ind AS financial statements)
As of March 31, 2019, the Company has disclosed contingent Our audit procedures included the following:
liabilities of ` 62,922.95 lacs relating to tax and legal claims. • Gained an understanding of the process of identification of
claims, litigations and contingent liabilities, and evaluated the
There are several pending legal and regulatory cases against
design and tested the operating effectiveness of key controls.
the Company across various jurisdictions. Accordingly,
management exercises its judgement in estimation of • Obtained the summary of Company’s legal and tax cases and
provision required in respect of such cases. The evaluation assessed management’s position through discussions with
of management’s judgements, including those that involve the legal head, tax head and Company’s management, on
estimations in assessing the likelihood that a pending claim both the probability of success in significant cases, and the
will succeed, or a liability will arise, and the quantification magnitude of any potential loss.
of the ranges of potential financial settlement have been a
matter of most significance during the current year audit. • Obtained responses from relevant third party legal counsel
and conducted discussions with them regarding material
Furthermore, the Company has operations across many cases.
jurisdictions and is subject to taxation related litigations
as per local tax regulations. Evaluation of the outcome of • Inspected external legal opinions and other evidence to
the taxation related matters, and whether the risk of loss corroborate management’s assessment of the risk profile in
is remote, possible or probable, requires judgement by respect of legal claims.
management given the complexities involved.
• Engaged tax specialists to assess management’s application
Accordingly, due to large number of claims and complexity/ and interpretation of tax legislation affecting the Company,
judgement involved in outcome of these litigations. Claims, and to consider the quantification of exposures and
litigations and contingent liabilities was determined to be settlements arising from disputes with tax authorities in the
a key audit matter in our audit of the standalone Ind AS various tax jurisdictions.
financial statements.
• Reviewed that the management assessment of similar cases
is consistent across the divisions or that differences in
positions taken are adequately justified.
Key audit matters How our audit addressed the key audit matter
Revenue Recognition
(as described in note 27 of the standalone Ind AS financial statements)
For the year ended March 31, 2019 the Company has Our audit procedures included the following:
recognized revenue from operations of ` 498,129.88 lacs. • Considered Company’s revenue recognition policy and its
compliance in terms of Ind AS 115 ‘Revenue from contracts
The Company expects the revenue recognition to occur at
with customers’.
point in time when control over the goods are transferred to
the customer, generally on delivery of the goods. Accordingly, • Assessed the design and tested the operating effectiveness of
this requires the management to establish the fact that internal controls related to revenue recognition.
control over goods is transferred at the time of dispatch in
accordance with Ind AS 115.The variety of terms that define • Performed sample tests of individual sales transaction and traced
when title, risk and rewards are transferred to the customer, to sales invoices, sales orders and other related documents.
as well as the high value of the transactions, give rise to the Further, in respect of the samples tested we checked that the
risk that revenue is not recognized in the correct period. revenue has been recognized as per the shipping terms.
This area was of most significance in our audit due to the • Selected sample of sales transactions made pre- and
magnitude of amount of the revenue involved and high post-year end, agreeing the period of revenue recognition to
number of transactions. third party support, such as transporter invoice and customer
Revenue is also an important element of how the Company confirmation of receipt of goods.
measures its performance, upon which management is • Performed monthly analytical review of revenue by streams
incentivized. The Company focuses on revenue as a key to identify any unusual trends.
performance measure, which could create an incentive for
revenue to be recognized before the risk and rewards have • Obtained trade receivable balance confirmations as at the
been transferred. year end to evaluate recognition of revenue.
Accordingly, due to the significant risk associated with • Assessed the relevant disclosures made within the
revenue recognition in accordance with terms of Ind AS 115 standalone Ind AS financial statements.
‘Revenue from contracts with customers’, it was determined
to be a key audit matter in our audit of the standalone Ind AS
financial statements.
We have determined that there are no other key audit matters to communicate in our report.
INFORMATION OTHER THAN THE FINANCIAL Those Board of Directors are also responsible for
STATEMENTS AND AUDITOR’S REPORT THEREON overseeing the Company’s financial reporting process.
The Company’s Board of Directors is responsible for the
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF
other information. The other information comprises the
THE STANDALONE IND AS FINANCIAL STATEMENTS
information included in the Annual report, but does not
include the standalone Ind AS financial statements and Our objectives are to obtain reasonable assurance
our auditor’s report thereon. about whether the standalone Ind AS financial
statements as a whole are free from material
Our opinion on the standalone Ind AS financial
misstatement, whether due to fraud or error, and to
statements does not cover the other information and we
issue an auditor’s report that includes our opinion.
do not express any form of assurance conclusion thereon.
Reasonable assurance is a high level of assurance,
In connection with our audit of the standalone Ind AS but is not a guarantee that an audit conducted in
financial statements, our responsibility is to read the accordance with SAs will always detect a material
other information and, in doing so, consider whether misstatement when it exists. Misstatements can arise
the other information is materially inconsistent with the from fraud or error and are considered material if,
standalone Ind AS financial statements or our knowledge individually or in the aggregate, they could reasonably
obtained in the audit or otherwise appears to be materially be expected to influence the economic decisions of
misstated. If, based on the work we have performed, we users taken on the basis of these standalone Ind AS
conclude that there is a material misstatement of this financial statements.
other information, we are required to report that fact.
As part of an audit in accordance with SAs, we exercise
We have nothing to report in this regard.
professional judgment and maintain professional
skepticism throughout the audit. We also:
RESPONSIBILITIES OF MANAGEMENT FOR THE
STANDALONE IND AS FINANCIAL STATEMENTS • Identify and assess the risks of material
misstatement of the standalone Ind AS financial
The Company’s Board of Directors is responsible
statements, whether due to fraud or error, design
for the matters stated in section 134(5) of the Act
and perform audit procedures responsive to those
with respect to the preparation of these standalone
risks, and obtain audit evidence that is sufficient
Ind AS financial statements that give a true and fair
and appropriate to provide a basis for our opinion.
view of the financial position, financial performance
The risk of not detecting a material misstatement
including other comprehensive income, cash flows
resulting from fraud is higher than for one resulting
and changes in equity of the Company in accordance
from error, as fraud may involve collusion, forgery,
with the accounting principles generally accepted
intentional omissions, misrepresentations, or the
in India, including the Indian Accounting Standards
override of internal control.
(Ind AS) specified under section 133 of the Act read
with the Companies (Indian Accounting Standards) • Obtain an understanding of internal control
Rules, 2015, as amended. This responsibility also relevant to the audit in order to design
includes maintenance of adequate accounting records audit procedures that are appropriate in the
in accordance with the provisions of the Act for circumstances. Under section 143(3)(i) of the
safeguarding of the assets of the Company and for Act, we are also responsible for expressing our
preventing and detecting frauds and other irregularities; opinion on whether the Company has adequate
selection and application of appropriate accounting internal financial controls system in place and the
policies; making judgments and estimates that are operating effectiveness of such controls.
reasonable and prudent; and the design, implementation
• Evaluate the appropriateness of accounting
and maintenance of adequate internal financial controls,
policies used and the reasonableness of
that were operating effectively for ensuring the accuracy
accounting estimates and related disclosures
and completeness of the accounting records, relevant
made by management.
to the preparation and presentation of the standalone
Ind AS financial statements that give a true and fair view • Conclude on the appropriateness of management’s
and are free from material misstatement, whether due use of the going concern basis of accounting and,
to fraud or error. based on the audit evidence obtained, whether
a material uncertainty exists related to events or
In preparing the standalone Ind AS financial
conditions that may cast significant doubt on the
statements, management is responsible for assessing
Company’s ability to continue as a going concern.
the Company’s ability to continue as a going concern,
If we conclude that a material uncertainty exists,
disclosing, as applicable, matters related to going
we are required to draw attention in our auditor’s
concern and using the going concern basis of
report to the related disclosures in the financial
accounting unless management either intends to
statements or, if such disclosures are inadequate,
liquidate the Company or to cease operations, or has
to modify our opinion. Our conclusions are based
no realistic alternative but to do so.
on the audit evidence obtained up to the date of
our auditor’s report. However, future events or
conditions may cause the Company to cease to Statement and Statement of Changes in
continue as a going concern. Equity dealt with by this Report are in
agreement with the books of account;
• Evaluate the overall presentation, structure
and content of the standalone Ind AS financial (d) In our opinion, the aforesaid standalone
statements, including the disclosures, and whether Ind AS financial statements comply with
the standalone Ind AS financial statements the Accounting Standards specified under
represent the underlying transactions and events Section 133 of the Act, read with Companies
in a manner that achieves fair presentation. (Indian Accounting Standards) Rules, 2015, as
amended;
We communicate with those charged with governance
regarding, among other matters, the planned scope (e) On the basis of the written representations
and timing of the audit and significant audit findings, received from the directors as on
including any significant deficiencies in internal control March 31, 2019 taken on record by the
that we identify during our audit. Board of Directors, none of the directors is
disqualified as on March 31, 2019 from being
We also provide those charged with governance with
appointed as a director in terms of Section
a statement that we have complied with relevant
164 (2) of the Act;
ethical requirements regarding independence, and to
communicate with them all relationships and other (f) With respect to the adequacy of the internal
matters that may reasonably be thought to bear on financial controls over financial reporting
our independence, and where applicable, related of the Company with reference to these
safeguards. standalone Ind AS financial statements and
the operating effectiveness of such controls,
From the matters communicated with those charged
refer to our separate Report in “Annexure 2” to
with governance, we determine those matters that
this report;
were of most significance in the audit of the standalone
Ind AS financial statements for the financial year (g) In our opinion, the managerial remuneration
ended March 31, 2019 and are therefore the key audit for the year ended March 31, 2019 has
matters. We describe these matters in our auditor’s been paid / provided by the Company to its
report unless law or regulation precludes public directors in accordance with the provisions of
disclosure about the matter or when, in extremely rare section 197 read with Schedule V to the Act;
circumstances, we determine that a matter should
(h) With respect to the other matters to be
not be communicated in our report because the
included in the Auditor’s Report in accordance
adverse consequences of doing so would reasonably
with Rule 11 of the Companies (Audit and
be expected to outweigh the public interest benefits of
Auditors) Rules, 2014, as amended in our
such communication.
opinion and to the best of our information and
according to the explanations given to us:
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS i.
The Company has disclosed the impact
of pending litigations on its financial
1. As required by the Companies (Auditor’s Report)
position in its standalone Ind AS financial
Order, 2016 (“the Order”), issued by the Central
statements – Refer Note 36 A to the
Government of India in terms of sub-section (11) of
standalone Ind AS financial statements;
section 143 of the Act, we give in the “Annexure 1” a
statement on the matters specified in paragraphs 3 ii.
The Company did not have any long-term
and 4 of the Order. contracts including derivative contracts
for which there were any material
2. As required by Section 143(3) of the Act, we report
foreseeable losses;
that:
iii.
There has been no delay in transferring
(a) We have sought and obtained all the
amounts, required to be transferred, to
information and explanations which to
the Investor Education and Protection
the best of our knowledge and belief were
Fund by the Company.
necessary for the purposes of our audit;
(b) In our opinion, proper books of account For S.R. Batliboi & Co. LLP
as required by law have been kept by the Chartered Accountants
Company so far as it appears from our ICAI Firm Registration Number: 301003E/E300005
examination of those books;
(c) The Balance Sheet, the Statement of Profit per Atul Seksaria
Place of Signature: Kanpur Partner
and Loss including the Statement of Other
Date: 18th May, 2019 Membership Number: 086370
Comprehensive Income, the Cash Flow
According to information and explanation given to us, the Standalone Ind AS financial statements and
there are no dues of Provident Fund and ESI which have according to the information and explanations
not been deposited on account of any dispute. given by the management, we report that no
fraud by the company or no material fraud on the
viii. In our opinion and according to the information
company by the officers and employees of the
and explanations given by the management, the
Company has been noticed or reported during the
Company has not defaulted in repayment of loans
year.
or borrowing to a financial institution, banks,
debenture holders or government. xi. According to the information and explanations
given by the management, the managerial
ix. In our opinion and according to the information
remuneration has been paid / provided in
and explanations given by the management,
accordance with the requisite approvals mandated
monies raised by way of term loans were applied
by the provisions of section 197 read with
for the purposes for which they were raised.
Schedule V to the Companies Act, 2013.
Further, based on the information and explanations
given by the management, the Company has xii. In our opinion, the Company is not a nidhi
not raised any money way of initial public offer / company. Therefore, the provisions of clause 3(xii)
further public offer / debt instruments. of the order are not applicable to the Company and
hence not commented upon.
x. Based upon the audit procedures performed for
the purpose of reporting the true and fair view of
xiii. According to the information and explanations did not make preferential allotment/ private
given by the management, transactions with the placement of fully or partly convertible debentures
related parties are in compliance with section 177 during the year.
and 188 of Companies Act, 2013 where applicable
xv. According to the information and explanations
and the details have been disclosed in the notes
given by the management, the Company has not
to the Standalone Ind AS financial statements, as
entered into any non-cash transactions with
required by the applicable accounting standards.
directors or persons connected with him as
xiv. According to the information and explanations referred to in section 192 of Companies Act, 2013.
given by the management the Company has
xvi. According to the information and explanations
complied with provisions of section 42 of the
given to us, the provisions of section 45-IA of the
Companies Act, 2013 in respect of the preferential
Reserve Bank of India Act, 1934 are not applicable
allotment / private placement of shares during
to the Company.
the year. According to the information and
explanations given by the management, we report
that the amount raised, have been used for the For S.R. Batliboi & Co. LLP
Chartered Accountants
purposes for which the funds were raised except
ICAI Firm Registration Number: 301003E/E300005
for idle/surplus funds amounting to ` 44,060 lacs
which were not required for immediate utilization
and which have been gainfully invested in liquid per Atul Seksaria
Place of Signature: Kanpur Partner
investments payable on demand. The maximum
Date: 18th May, 2019 Membership Number: 086370
amount of idle/surplus funds invested during the
year was ` 44,060 lacs of which ` 25,560 lacs was
outstanding at the end of the year. The Company
`/Lacs
As at As at
Notes
31 March 2019 31 March 2018
ASSETS
Non-current assets
Property, plant and equipment 2 3,62,496.54 3,59,051.91
Capital work-in-progress 2 54,377.68 8,780.53
Other Intangible assets 3 1,049.89 617.28
Financial assets
(i) Investments 4 61,039.40 55,694.47
(ii) Other financial assets 5 9,532.79 5,013.21
Other non-current assets 6 15,442.06 13,610.12
Total non-current assets 5,03,938.36 4,42,767.52
Current assets
Inventories 7 57,053.36 53,161.07
Financial assets
(i) Investments 8 39,431.14 7,757.62
(ii) Trade receivables 9 20,562.74 18,797.37
(iii) Cash and cash equivalents 10 28,957.99 18,235.03
(iv) Bank balances other than (iii) above 11 19,607.57 36,117.04
(v) Other financial assets 12 9,605.95 7,321.09
Current tax assets (net) 13 180.98 752.57
Other current assets 14 15,875.48 12,568.63
Assets held for sale 45 18.09 902.61
Total current assets 1,91,293.30 1,55,613.03
Total assets 6,95,231.66 5,98,380.55
EQUITY AND LIABILITIES
Equity
Equity share capital 15 7,726.83 6,992.72
Other equity 16 2,81,553.67 2,07,741.79
Total equity 2,89,280.50 2,14,734.51
Liabilities
Non-current liabilities
Financial liabilities
(i) Borrowings 17 1,95,648.35 2,06,970.78
(ii) Other financial liabilities 18 23,891.31 20,678.88
Long-term provisions 19 3,468.20 2,507.55
Deferred tax liabilities (net) 20 31,249.53 26,718.99
Other liabilities 21 8,668.22 9,232.02
Total non-current liabilities 2,62,925.61 2,66,108.22
Current liabilities
Financial liabilities
(i) Borrowings 22 15,981.68 11,351.76
(ii) Trade payables 23
(a) Total outstanding dues of micro enterprises and small enterprises 1,051.10 1,227.33
(b) Total outstanding dues of creditors other than micro enterprises and 68,774.99 63,078.44
small enterprises
(iii) Other financial liabilities 24 41,606.41 22,344.82
Other current liabilities 25 14,593.74 17,651.04
Short-term provisions 26 1,017.63 1,884.43
Total current liabilities 1,43,025.55 1,17,537.82
Total liabilities 4,05,951.16 3,83,646.04
Total equity and liabilities 6,95,231.66 5,98,380.55
Significant Accounting Policies 1
For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of
Chartered Accountants J K Cement Limited
ICAI Firm Regn. No. 301003E/E300005
`/Lacs
For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of
Chartered Accountants J K Cement Limited
ICAI Firm Regn. No. 301003E/E300005
`/Lacs
`/Lacs
Notes :
Cash and cash equivalents includes cash in hand and bank balances including Fixed Deposits.
For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of
Chartered Accountants J K Cement Limited
ICAI Firm Regn. No. 301003E/E300005
As at As at
31 March 2019 31 March 2018
Balance at the beginning of the year (Equity shares of ` 10 each issued, subscribed and fully 6,992.72 6,992.72
paid)
Changes in equity share capital during the year 734.11 -
Balance at the end of the reporting period (Equity shares of ` 10 each issued, subscribed and 7,726.83 6,992.72
fully paid)
Surplus
Retained earnings
Debenture
Securities (including Other
redemption General reserve Total
premium Comprehensive
reserve
Income)
Balance at 31 March 2017 25,988.60 9,955.10 74,325.02 69,890.85 1,80,159.57
Profit for the year - - - 34,187.36 34,187.36
Other comprehensive income/ (loss) for - - - 127.88 127.88
the year
Total comprehensive income for the year - - - 34,315.24 34,315.24
Transfer to general reserve - - 6,000.00 (6,000.00) -
Transfer to/(from) debenture redemption - 9.40 - (9.40) -
reserve
Dividend paid - - - (5,594.18) (5,594.18)
Dividend distribution tax - - - (1,138.84) (1,138.84)
Balance at 31 March 2018 25,988.60 9,964.50 80,325.02 91,463.67 2,07,741.79
Profit for the year - - - 32,489.54 32,489.54
Other comprehensive income for the year - - - 61.39 61.39
Total comprehensive income for the year - - - 32,550.93 32,550.93
Adjustment during the year
Transfer to general reserve - - 10,000.00 (10,000.00) -
Transfer to/(from) debenture redemption - (87.60) - 87.60 -
reserve
Addition during the year 50,344.58 - - - 50,344.58
Share issue expenses (653.52) - - - (653.52)
Dividend paid - - - (6,992.73) (6,992.73)
Dividend distribution tax - - - (1,437.38) (1,437.38)
Balance at 31 March 2019 75,679.66 9,876.90 90,325.02 1,05,672.09 2,81,553.67
For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of
Chartered Accountants J K Cement Limited
ICAI Firm Regn. No. 301003E/E300005
NOTES
to the financial statements for the year ended 31st March, 2019
1. CORPORATE INFORMATION
Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to
I. Reporting Entity estimates are recognised prospectively.
J K Cement Limited (“J K Cement Limited” or
“the Company”) is a public limited Company A. Judgements
domiciled in India and has its registered office Information about the judgements made in
at Kamla Tower, Kanpur, Uttar Pradesh – 208 applying accounting policies that have the
001. J K Cement Limited’s equity shares are most significant effects on the amounts
listed on National Stock Exchange and Bombay recognised in the financial statements have
Stock Exchange in India. The Company is been given below:
engaged in the manufacturing and selling of
- Assessment of lease contracts:
Cement and Cement related products.
Classification of lease under finance lease
II. Significant Accounting Policies or operating lease requires judgement
The Company has consistently applied the with regard to the estimated economic
following accounting policies to all periods life and estimated cost of the assets.
presented in the financial statements. The Company has analyzed each lease
contract on case to case basis to classify
1. Basis of preparation
the arrangements as operating lease i.e.
The financial statements of the Company
below one year or risk or rewards are
have been prepared in accordance with Indian
not significant mainly godown and office
Accounting Standards (Ind-AS) notified under
rent are covered in operating lease and
the Companies (Indian Accounting Standards)
finance lease, based on evaluation of the
Rules, 2015 (as amended from time to time).
term and conditions of the arrangements.
These are Company’s separate financial
- Provision and contingencies
statements.
The assessment undertaken in the
These financial statements were authorised recognizing provision and contingencies
for issue by the Board of Directors on have been made in accordance with Ind
18.05.2019. AS 37, ‘Provisions, contingent liabilities
and contingent assets’. The evaluation
2. Basis of measurement
of the likelihood of the contingent
The financial statements have been prepared
events has required best judgement by
on a historical cost basis except the following
management regarding the probability of
items, which are measured on fair value basis
exposure to potential loss.
on each reporting date:
B. Assumptions and estimation uncertainties
-
Certain financial assets and liabilities that
The key assumptions concerning the
is measured at fair value (Refer Note 41)
future and other key sources of estimation
-
Defined benefit liability/(assets): fair uncertainty at the reporting date that have
value of plan assets less present value of a significant risk of causing a material
defined benefit obligation(Refer Note 38) adjustment to the carrying amounts of assets
and liabilities within the next financial year
3. Functional and presentation currency
are described below. The Company based its
These financial statements are presented in
assumptions and estimates on parameters
Indian National Rupee (‘INR’), which is the
available when the financial statements
Company’s functional currency. All amounts
where prepared. Existing circumstances and
have been rounded to the nearest lacs up
assumptions about future development,
to two decimal places unless otherwise
however, may change due to market change
indicated.
or circumstances arising that are beyond
4. Use of judgements and estimates the control of the Company. Such changes
In preparing these financial statements, are reflected in the assumptions when they
management has made judgements, estimates occurred.
and assumptions that affect the application
Taxes:
of the Company’s accounting policies and
Deferred tax assets are recognized for
the reported amounts of assets, liabilities,
unused tax losses to the extent that it is
income, expenses, and the accompanying
probable that taxable profit will be available
disclosures, and the disclosure of contingent
against which the losses can be utilized.
assets and liabilities. Uncertainty about these
Significant management judgement is required
assumptions and estimates could result in
to determine the amount of deferred tax
outcomes that require a material adjustment
assets that can be recognized, based upon the
to the carrying amount of assets or liabilities
affected in future periods.
NOTES
to the financial statements for the year ended 31st March, 2019
Useful Life|
Tangible Assets
(In years)
Factory building (including roads) 03-30 Years
Non factory building (including roads) 05-60 Years
Plant and machinery 05-40 Years
Vehicles 08 Years
Furniture and fixtures 10 Years
Office equipment 05 Years
Railway sidings 15 Years
The useful lives of certain plant and associated with the expenditure will flow to
machineries have been considered lower / the Company.
higher than 15 years. These lives are lower
Amortisation methods, useful lives and
/ higher those indicated in schedule II of
residual value are reviewed at each financial
Companies Act, 2013.
year end and changes, if any, are accounted
Freehold mining land is depleted according to for prospectively.
the ‘units of production’ method by reference
Amortisation of Mining rights over the period
to the ratio of extraction of limestone in the
or respective Mining Agreement.
year to the related reserves of limestone.
Amortisation of Mining Reserve: On the basis
Leasehold land is amortized on a straight line
of material extraction (proportion of material
basis over the primary lease period.
extracted per annum to total mining reserve)
Limestone reserves are estimated by the
management based on the internal best 8. Financial instruments
estimates or independent expert’s valuation as A financial instrument is any contract that
considered appropriate. These estimates are gives rise to asset of one entity and a financial
reviewed at least annually. liability or equity instrument of another entity.
Financial instruments also include derivative
The management believes that the estimated contracts such as foreign currency forward
useful lives are realistic and reflect contracts, cross currency interest rate swaps,
approximation of the period over which the interest rate swaps and currency options; and
assets are likely to be used. embedded derivatives in the host contract.
7. Intangible assets Financial Assets
Intangible Assets are stated at cost less Initial recognition and measurement
accumulated amortization and impairment
All financial assets are recognised initially at
loss, if any. Intangible assets are amortized on fair value plus, in the case of financial assets
straight line method basis over the estimated are not recorded at fair value through profit or
useful life. Estimated useful life of the loss, transaction costs that are attributable to
Software is considered as 3 years. the acquisition of the financial assets.
Subsequent expenditure is capitalised only if it
Purchases or sales of financial assets that
is probable that the future economic benefits require delivery of assets within a time frame
established by regulation or convention in
the market place (regular way trades) are In addition, the Company may elect to classify
recognized on the trade date, i.e., the date a debt instrument, which otherwise meets
that the Company commits to purchase or sell amortized cost or FVOCI criteria, as at FVTPL.
the asset. However, such election is allowed only if doing
so reduces or eliminates a measurement
Classifications or recognition inconsistency (referred to as
The Company classifies its financial assets as ‘accounting mismatch’).
subsequently measured at either amortised
Debt instruments included within the FVTPL
cost or fair value through other comprehensive
category are measured at fair value with all
income (FVOCI) or fair value through Profit and
changes recognized in the profit and loss.
Loss Account (FVTPL) on the basis of either
Company’s business model for managing the Equity Instruments
financial assets or
All equity instruments in scope of Ind AS
109, Financial Instruments are measured at
Contractual cash flow characteristics of the
fair value and all changes in fair value are
financial assets.
recorded in FVTPL. On initial recognition an
Business model assessment equity investment that is not held for trading,
The Company makes an assessment of the the Company may irrevocably elect to present
objective of a business model in which an subsequent changes in fair value in OCI
asset is held at an instrument level because and fair value changes on the instrument,
this best reflects the way the business is excluding dividends, are recognized in the OCI.
managed and information is provided to There is no recycling of the amounts from
management. OCI to statement of profit and loss, even on
sale of investment. However, the Company
Debt instruments at amortised cost
may transfer the cumulative gain or loss
A financial asset is measured at amortised
within equity. This election is made on an
cost only if both conditions are met:
investment-by-investment basis.
-
It is held within a business model whose
All other Financial Instruments are classified
objective is to hold assets in order to
as measured at FVTPL.
collect contractual cash flows
Derecognition of financial assets
-
The contractual terms of the financial
A financial asset (or, where applicable, a part
asset represent contractual cash flows
of a financial asset or part of a group of similar
that are solely payments of principal and
financial assets) is primarily derecognised (i.e.
interest
removed from the Company’s balance sheet)
After initial measurement, such financial when:
assets are subsequently measured at
-
The rights to receive cash flows from the
amortised cost using the Effective Interest
asset have expired, or
Rate (‘EIR’) method. Amortised cost is
calculated by taking into account any discount -
The Company has transferred its rights to
or premium on acquisition and fees or costs receive cash flows from the asset or has
that are an integral part of the EIR. The EIR assumed an obligation to pay the received
amortisation is included as finance income cash flows in full without material delay
in the profit or loss. The losses arising from to a third party under a ‘pass-through’
impairment are recognised in the profit or arrangement; and either (a) the Company
loss. has transferred substantially all the
risks and rewards of the asset, or (b) the
Debt instrument at fair value through Other
Company has neither transferred nor
Comprehensive Income (FVOCI)
retained substantially all the risks and
Debt instruments with contractual cash flow
rewards of the asset, but has transferred
characteristics that are solely payments of
control of the asset
principal and interest and held in a business
model whose objective is achieved by both
When the Company has transferred its rights
collecting contractual cash flows and selling to receive cash flows from an asset or has
financial assets are classified to be measured entered into a pass-through arrangement,
at FVOCI. it evaluates if and to what extent it has
retained the risks and rewards of ownership.
Debt instrument at fair value through profit
When it has neither transferred nor retained
and loss (FVTPL)
substantially all of the risks and rewards
Any debt instrument, which does not meet the
of the asset, nor transferred control of the
criteria for categorization as at amortized cost
asset, the Company continues to recognize
or as at FVOCI, is classified as at FVTPL.
NOTES
to the financial statements for the year ended 31st March, 2019
payment to be made to reimburse the holder which are equity instruments and financial
for a loss it incurs because, the specified liabilities. For financial assets which are debt
debtor fails to make a payment when due instruments, a reclassification is made only
in accordance with the terms of a debt if there is a change in the business model
instrument. Financial guarantee contracts are for managing those assets. Changes to the
recognised initially as a liability at fair value, business model are expected to be infrequent.
adjusted for transaction costs that are directly The Company’s senior management
attributable to the issuance of the guarantee. determines change in the business model as
Subsequently, the liability is measured at a result of external or internal changes which
the higher of the amount of loss allowance are significant to the Company’s operations.
determined as per impairment requirements Such changes are evident to external parties.
of Ind AS 109, and the transaction amount A change in the business model occurs
recognised less cumulative amortisation. when the Company either begins or ceases
to perform an activity that is significant to
Derecognition of financial liabilities its operations. If the Company reclassifies
The Company derecognises a financial financial assets, it applies the reclassification
liability when its contractual obligations are prospectively from the reclassification date
discharged or cancelled, or expire. which is the first day of the immediately
Reclassification of financial assets next reporting period following the change
The Company determines classification in business model. The Company does not
of financial assets and liabilities on initial restate any previously recognized gains, losses
recognition. After initial recognition, no (including impairment gains or losses) or
reclassification is made for financial assets interest.
9. Inventories
Inventories are valued as follows:
Raw materials, packing materials, stores and Lower of cost and net realisable value. Cost is determined on
spares a moving weighted average basis. Materials and other items
held for use in the production of inventories are at cost not
written down below costs, if finished goods in which they will be
incorporated are expected to be sold at or above cost
Work-in-progress, finished goods and traded goods Lower of cost and net realisable value. Cost includes direct
materials, labor and a proportion of manufacturing overheads.
Cost of finished goods includes excise duty, wherever applicable.
Waste At net realisable value
Net realisable value is the estimated selling
Provisions are measured at the present
price in the ordinary course of business, less value of management’s best estimate of the
estimated costs of completion and to make expenditure required to settle the present
the sale. obligation at the end of the reporting period.
The discount rate used to determine the
10. Investment in subsidiary and joint venture present value is a pre-tax rate that reflects
Investment in subsidiaries and joint venture current market assessments of the time
are carried at cost / fair value as per value of money and the risks specific to the
the requirement of IND AS 32, Financial liability. The increase in the provision due to
Instruments and IND AS 109, Financial the passage of time is recognised as interest
Instruments in the separate financial expense.
statements. Investment carried at cost is
tested for impairment as per IND AS 36,
Where it is not probable that an outflow of
Impairment of Assets. economic benefits will be required or the
amount cannot be estimated reliably, the
11. Provisions, Contingent Liabilities and Assets obligation is disclosed as a contingent liability,
Provisions are recognised when the Company unless the probability of outflow of economic
has a present legal or constructive obligation benefits is remote. Possible obligations,
as a result of past events, it is probable that whose existence will only be confirmed by the
an outflow of resources will be required to occurrence or non-occurrence of one or more
settle the obligation and the amount can future uncertain events not wholly within the
be reliably estimated. Provisions are not control of the Company, are also disclosed as
recognised for future operating losses. contingent liabilities unless the probability of
outflow of economic benefits is remote.
NOTES
to the financial statements for the year ended 31st March, 2019
Contingent Assets are not recognized in the becomes unconditional, as only the passage
financial statements. However, when the of time is required before payment is due.
realization of income is virtually certain, then The Company considers the effects of variable
the related asset is not a contingent asset and consideration, the existence of significant
its recognition is appropriate. financing components, noncash consideration,
and consideration payable to the customer (if
Mines Restoration Expenditure any).
The expenditure on restoration of the
mines based on technical estimates by Variable consideration
Internal/External specialists is recognized in If the consideration in a contract includes
the accounts. The total estimated restoration a variable amount, estimates the amount
expenditure is apportioned over the estimated of consideration to which it will be entitled
quantity of mineral resources (likely to be made in exchange for transferring the goods to
available) and provision is made in the accounts the customer. The variable consideration
based on minerals mined during the year. is estimated at contract inception and
constrained until it is highly probable that a
12. Revenue Recognition
significant revenue reversal in the amount
The Company derives revenues primarily from
of cumulative revenue recognised will not
sale of cement and cement related products.
occur when the associated uncertainty with
Ind AS 115 “Revenue from Contracts with the variable consideration is subsequently
Customers” provides a control-based revenue resolved. The Company recognizes changes in
recognition model and provides a five step the estimated amount of variable consideration
application approach to be followed for in the period in which the change occurs.
revenue recognition. Some contracts for the sale of goods provide
customers with volume rebates and pricing
• Identify the contract(s) with a customer;
incentives, which give rise to variable
• Identify the performance obligations; consideration.
• Determine the transaction price; The Company provides retrospective volume
rebates and pricing incentives to certain
•
Allocate the transaction price to the
customers once the quantity of products
performance obligations;
purchased during the period exceeds
•
Recognise revenue when or as an entity a threshold specified in the contract.
satisfies performance obligation. Rebates are offset against amounts payable
by the customer. To estimate the variable
Revenue from contracts with customers is
consideration for the expected future rebates,
recognised when control of the goods or
the Company applies the most expected value
services are transferred to the customer at
method for contracts. The selected method
an amount that reflects the consideration to
that best predicts the amount of variable
which the Company expects to be entitled
consideration is primarily driven by the number
in exchange for those goods or services.
of volume thresholds contained in the contract.
The Company has generally concluded that it
The Company then applies the requirements on
is the principal in its revenue arrangements,
constraining estimates of variable consideration
except for the agency services, because it
and recognises a refund liability for the
typically controls the goods or services before
expected future rebates.
transferring them to the customer.
Contract balances
Revenue excludes amounts collected on behalf
Trade receivables
of third parties.
A receivable represents the Company’s
Sale of goods right to an amount of consideration that is
For sale of goods, revenue is recognised when unconditional (i.e., only the passage of time is
control of the goods has transferred at a required before payment of the consideration
point in time i.e. when the goods have been is due). Refer to accounting policies of
delivered to the specific location (delivery). financial assets Financial instruments – initial
Following delivery, the customer has full recognition and subsequent measurement.
discretion over the responsibility, manner of
Contract liabilities
distribution, price to sell the goods and bears
A contract liability is the obligation to transfer
the risks of obsolescence and loss in relation
goods or services to a customer for which
to the goods. A receivable is recognised by the
the Company has received consideration (or
Company when the goods are delivered to the
an amount of consideration is due) from the
customer or their agent as this represents the
customer. If a customer pays consideration
point in time at which the right to consideration
NOTES
to the financial statements for the year ended 31st March, 2019
to the net defined liability (asset) at the 15. Foreign currency transactions
start of the financial year after taking Transactions in foreign currencies are
into account any changes as a result of translated into the Company’s functional
contribution and benefit payments during currency at the exchange rates at the dates of
the year. Net interest expense and other the transactions.
expenses related to defined benefit plans
Monetary assets and liabilities denominated
are recognised in profit or loss.
in foreign currencies are translated into the
When the benefits of a plan are changed functional currency at the exchange rate at
or when a plan is curtailed, the resulting the reporting date. Non-monetary assets
change in benefit that relates to past and liabilities that are measured at fair
service or the gain or loss on curtailment value in a foreign currency are translated
is recognised immediately in profit or loss. into the functional currency at the exchange
The Company recognises gains and losses rate when the fair value was determined.
on the settlement of a defined benefit Non-monetary items that are measured based
plan when the settlement occurs. on historical cost in a foreign currency are
translated at the exchange rate at the date of
The Company has following defined
the transaction. Foreign currency differences
benefit plans:
are generally recognised in profit or loss.
i) Gratuity
16. Borrowing cost
The Company provides for its
Borrowing costs directly attributable to the
gratuity liability based on actuarial
acquisition, construction or production of
valuation of the gratuity liability as
an asset that necessarily takes a substantial
at the Balance Sheet date, based
period of time to get ready for its intended
on Projected Unit Credit Method,
use or sale are capitalised as part of the cost
carried out by an independent
of the asset. All other borrowing costs are
actuary and contributes to the
expensed in the period in which they occur.
Gratuity Trust fund formed by the
Borrowing costs consist of interest and other
Company. The contributions made
costs that an entity incurs in connection with
are recognized as plan assets.
the borrowing of funds. Borrowing cost also
The defined benefit obligation as
includes exchange differences to the extent
reduced by fair value of plan assets
regarded as an adjustment to the borrowing
is recognized in the Balance Sheet.
costs.
Re-measurements are recognized in
the Other Comprehensive Income, 17. Taxes
net of tax in the year in which they Tax expense comprises current and deferred
arise. tax. It is recognised in profit or loss except to
the extent that it relates to items recognized
(D)
Other long-term employee benefits
directly in equity or in Other Comprehensive
The Company’s net obligation in respect
Income
of long-term employee benefits is the
amount of future benefit that employees i) Current tax
have earned in return for their service in Current tax comprises the expected tax
the current and prior periods. That benefit payable or receivable on the taxable
is discounted to determine its present income or loss for the year and any
value. Re-measurements are recognised adjustment to the tax payable or
in profit or loss in the period in which receivable in respect of previous years.
they arise. It is measured using tax rates enacted or
substantively enacted at the reporting
The Company has following long term
date.
employment benefit plans:
Current income tax relating to items
(i) Leave Liability
recognised outside profit or loss is
Leave encashment is payable to
recognised outside profit or loss (either in
eligible employees at the time of
other comprehensive income or in equity).
retirement. The liability for leave
Current tax items are recognised in
encashment, which is a defined
correlation to the underlying transaction
benefit scheme, is provided based on
either in OCI or directly in equity.
actuarial valuation as at the Balance
Management periodically evaluates
Sheet date, based on Projected Unit
positions taken in the tax returns
Credit Method, carried out by an
with respect to situations in which
independent actuary.
applicable tax regulations are subject to
NOTES
to the financial statements for the year ended 31st March, 2019
134
`/Lacs
(i) The amount incurred by Company as at 31st March 2019,ownership of which vests with State Electricity Boards & Indian Railways is cost ` 5,029.53
lacs (31st March 2018: ` 5,029.13 lacs), amortisation ` 1,117.04 lacs (31st March 2018: ` 817.83 lacs) and net block ` 3,912.49 lacs (31st March 2018:
` 4,211.30 lacs)
(ii) The amount of ` 10,743.92 Lacs represents the amount capitalised during the year.
(iii) It includes freehold land for mining having cost of ` 3,082.44 lacs (31st March 2018 :` 3,082.44 lacs), amortisation of ` 917.85 lacs (31st March 2018 :
` 812.29 lacs) and net block of ` 2,164.61 lacs ( 31st March 2018: ` 2,270.15 lacs)
(iv) Property, plant & equipment pledged as security: Refer note 17 for information on property, plant & equipment pledged as security by the
Company.
(v) The title deeds of immovable properties included in property, plant and equipment are held in the name of the Company except for 1 case of
leasehold land and 4 cases of freehold land amounting to gross block of ` 1,353.07 lacs (net block: ` 70.42 lacs) and gross block of ` 225.64 lacs
(net block: ` 225.64 lacs) respectively as at March 31, 2019 for which title deeds are in the name of the erstwhile Company that merged with the
Company pursuant to a scheme of amalgamation and arrangement as approved by the honourable High Court in earlier years.
(vi) Assets related to thermal power plant and other DG sets at Rajasthan location are decapitalised and kept for final disposal refer note no 45 & 46.
3. OTHER INTANGIBLE ASSETS
`/Lacs
Other Intangible Asset 1,032.98 767.44 - 1,800.42 415.70 286.37 48.46 750.53 1,049.89 617.28
World of J.K. Cement
to the financial statements for the year ended 31st March, 2019
135
NOTES
to the financial statements for the year ended 31st March, 2019
`/Lacs
As at As at
31 March 2019 31 March 2018
4. Non-Current Investments
A. Investment in equity instruments (fully paid-up)
Unquoted
Subsidiary Companies(at cost)
- 280615 ( 31st March 2018 :107145) equity shares of J. K. Cement (Fujairah) FZC.* 46,885.04 15,941.56
(Face value AED1000 each)
- 10923408 (31st March 2018:10447217) equity shares of Jaykaycem (Central) Limited 9,759.02 8,759.02
(Face value ` 10 each)
Joint Ventures (at cost)
- Nil (31st March 2018 : 375000 ) equity shares of Bander Coal Company Pvt. Ltd. - 37.50
(Face value ` 10 each) joint operation
Others (at FVTPL)
- 8000 (31st March 2018: 8000) equity shares of ReNew Wind Energy AP (Pvt.) Ltd. 8.00 8.00
(Face value ` 10 each)
- 3140101(31st March 2018 : 3140101) equity shares of VS Legnite Power Pvt. Ltd. (Face - -
value ` 10)# #
B. Investment in preference shares (fully paid up)
Unquoted
Subsidiary Companies (at FVTPL)
- Nil (31st March 2018 : 3488)3% Non cumulative 11 years Redeemable (Face value - 617.76
AED1000 each) preference shares in J K Cement (Fujairah)FZC*
- Nil (31st March 2018 : 3488)3% Non cumulative 12 years Redeemable (Face value - 617.76
AED1000 each) preference shares in J K Cement (Fujairah)FZC*
- Nil (31st March 2018 : 3489)3% Non cumulative 13 years Redeemable (Face value - 617.94
AED1000 each) preference shares in J K Cement (Fujairah)FZC*
- Nil (31st March 2018 : 3490) 3% Non cumulative 14 years Redeemable (Face value - 618.12
AED1000 each) preference shares in J K Cement (Fujairah)FZC*
(at amortised Cost)
- Nil (31st March 2018 : 34370) 3% cumulative 11 years redeemable (Face value - 6,087.31
AED1000 each) preference shares in J K Cement (Fujairah) FZC.*
- Nil (31st March 2018 : 34370) 3% cumulative 12 years redeemable (Face value - 6,087.31
AED1000 each) preference shares in J K Cement (Fujairah) FZC.*
- Nil (31st March 2018 : 34370) 3% cumulative 13 years Redeemable (Face value - 6,087.31
AED1000 each) preference shares in J K Cement (Fujairah)FZC*
- Nil (31st March 2018 : 34370) 3% cumulative 14 years Redeemable (Face value - 6,087.31
AED1000 each) preference shares in J K Cement (Fujairah)FZC*
Others (at FVTPL)
- 2785552(31st March 2018 : 2785552) 0.01% cumulative redeemable Preference shares - -
in VS Legnite Power Pvt. Ltd. (Face value ` 10)# #
C. Investment In Mutual Fund (Quoted)(at FVTPL)
5000000( 31st March 2018:5000000) HDFC fmp 1302D Sep2016(1)Regular- 606.90 569.69
Growth -Series-37 Maturity date2020
5000000( 31st March 2018:5000000) HDFC fmp 1188D Mar-2017(1)-Regular- 576.57 540.32
Growth-Series38- Maturity date-29-6-2020
5000000( 31st March 2018:5000000) “UTI FITF Series XXVII - II (1161 days)” 560.10 522.56
5000000( 31st March 2018:5000000) ICICI Prudential Fixed Maturity Plan Series 82-1187 535.66 508.53
Days
5000000( 31st March 2018:5000000) ICICI Prudential Fixed Maturity Plan Series 82-1136 535.01 501.51
Days
1000000 ( 31st March 2018:Nil)Union Capital Protection Oriented Fund Series 8 (Maturity 108.05 -
-11.09.20)
NOTES
to the financial statements for the year ended 31st March, 2019
`/Lacs
As at As at
31 March 2019 31 March 2018
D. Investments in Bonds(Quoted) (at FVTPL)
50 (31st March 2018:50) State bank of India SR-III 8.39% BD perpetual Bonds, Face value 489.64 494.15
per Bond ` 1000000 purchased @991285
50 (31st March 2018:50) State bank of India SR-II 8.75% BD perpetual Bonds, Face value 493.73 499.44
per Bond ` 1000000 purchased @1007773
50 (31st March 2018:50) Punjab National Bank SR- VIII, 8.95% BD perpetual Bonds, Face 481.68 491.37
value per Bond ` 1000000 purchased @1006175
61,039.40 55,694.47
Aggregate amount of market value of quoted investment 4,387.34 4,127.57
Aggregate amount of unquoted investment 56,652.06 51,566.90
*
Company has early converted 3% cumulative and non-cumulative redeemable preference share capital (RPS) into the equity shares on
dated 1st May 2018, which were due for conversion in FY 2022-23 to 2028-29.
##
The fair value of investment is Nil (31st March 2018: Nil)
`/Lacs
As at As at
31 March 2019 31 March 2018
5. Other Non-Current Financial assets
(unsecured, considered good)
Fixed Deposits* 1,450.81 527.17
Vehicle Loan Recoverable 196.45 143.41
Security Deposits 3,837.94 3,039.67
Share Application money(Refer note 39)# 4,047.59 1,302.96
9,532.79 5,013.21
*
includes ` 1394.42 Lacs (31 March 2018 ` 27.16 Lacs ) pledged against overdraft /other commitments.
#
Share application money paid to J. K. Cement (Fujairah) FZC (Subsidiary Company) in current year. The allotment is expected
to be made by end of June, 2019.
No loans due by directors or other officers of the Company or any of them either severally or jointly with any other persons or amounts
due by firms or private companies respectively in which any director is a partner or a director or a member.
`/Lacs
As at As at
31 March 2019 31 March 2018
6. Other non-current assets
Capital advances 11,490.32 9,732.38
Advances other than capital advances
Prepaid expenses 1,173.83 1,414.03
Deferred employee compensation 37.43 26.03
Advance to employees 173.81 122.41
Deposit under protest with Govt authorities 2,566.67 2,315.27
15,442.06 13,610.12
No advances are due by directors or other officers of the Company or any of them either severally or jointly with any other persons or
amounts due by firms or private companies respectively in which any director is a partner or a director or a member.
`/Lacs
As at As at
31 March 2019 31 March 2018
7. Inventories
(Valued at lower of cost and net realisable value)
It includes Project Machinery in Transit of ` 1266.39 Lacs (31st March 2018 : Nil).
*
`/Lacs
As at As at
31 March 2019 31 March 2018
8. Current Investments
Investment in Mutual Funds
Quoted (at FVTPL)
- Nil (31st March 2018 : 6568620.89) units in “ICICI Prudential Regular Income fund” - 1,151.85
- Nil (31st March 2018 : 1774748.873) units in “HDFC Regular Saving – Growth” - 611.12
- Nil (31st March 2018 : 2721606.837) units in Edelweiss Mutual Fund “Edelweiss - 389.06
Government Securities Regular- Growth”
- Nil (31st March 2018 : 9322487.4370) units in “ Axis Regular Saving Fund –Regular Plan - 1,579.11
Growth”
- Nil (31st March 2018 : 73605.432) units in “SBI Premier Liquid fund -DIR Plan Growth” - 2,005.30
-234958.449 (31st March 2018 :44082.999) units in "HDFC Liquid-DP-Growthoption" 8,642.44 1,504.04
-Nil ( 31st March 2018 :2353040.835) units in "Birla Sun Life(BSL)" - 517.14
-225568.133 (31st March 2018 :Nil) units in "SBI Liquid Fund Direct - Growth" 6,605.92 -
-66116.58 (31st March 2018 :Nil) units in "Kotak Liquid Direct Plan Growth" 2,502.07 -
-2760585.383 (31st March 2018 :Nil) units in "ICICI Prudential Liquid Fund -Direct Plan- 7,630.71 -
Growth"
-833029.555 ( 31st March 2018 :Nil) units in "Aditya Birla Sun Life Liquid Fund -Growth- 2,502.72 -
Direct Plan"
-318428.385 (31st March 2018 :Nil) units in "Axis Liquid Fund - Direct Growth (CFDGG)" 6,602.69 -
300000 ( 31st March 2018:Nil) "Union Capital Protection Oriented Fund Series 7 (Maturity 34.44 -
-03.03.20)"
Investments in Bonds(Quoted) (at FVTPL)
250 (31st March 2018: Nil)Housing Development Finance Corporation Ltd SR-M 015 9.45 2,508.45 -
NCD 21 AG19, Face value per Bond ` 1000000 purchased @1006015
250 (31st March 2018: Nil) Mahindra & Mahindra Financial Services Ltd SR-BH 2017 NCD 2,401.70 -
26SP19, Face value per Bond ` 1000000 purchased @944793
39,431.14 7,757.62
Aggregate amount of quoted investments 39,431.14 7,757.62
NOTES
to the financial statements for the year ended 31st March, 2019
`/Lacs
As at As at
31 March 2019 31 March 2018
9. Trade receivables
Secured
Considered good 6,764.94 5,646.56
Unsecured
Considered good 13,797.80 13,150.81
Considered significant increase in credit Risk 1,089.97 959.87
Less: Credit impaired 1,089.97 959.87
20,562.74 18,797.37
Refer to Note 17 for information on Trade receivables pledged as security by the company.
No trade receivable are due by directors or other officers of the Company or any of them either severally or jointly with any other
persons or amounts due by firms or private companies respectively in which any director is a partner or a director or a member.
`/Lacs
As at As at
31 March 2019 31 March 2018
10. Cash and cash equivalents
Balance with banks:
- In current accounts 14,110.21 3,076.76
- In EEFC accounts 151.01 41.51
- Fixed deposits with maturity of upto 3 months* 12,215.40 12,910.45
Cash on hand 18.48 34.90
Cheques in hand 2,462.89 2,171.41
28,957.99 18,235.03
`/Lacs
As at As at
31 March 2019 31 March 2018
11. Other bank balances
Earmarked bank balances # 144.60 127.10
Fixed deposits with maturity of more than 3 months but upto one year* 19,462.97 35,989.94
19,607.57 36,117.04
#
Bank balances are against unpaid dividend & unclaimed fraction money
*
Fixed Deposits upto one year include deposit of ` 16,080.74 Lacs (31 March 2018:` 2,698.08 Lacs ) pledged against overdraft /
other commitments.
`/Lacs
As at As at
31 March 2019 31 March 2018
12. Other current financial assets
Other loans and advances - significant increase in credit Risk 33.96 33.96
Credit impaired (33.96) (33.96)
- -
Other loans and advances* 7,070.04 4,489.45
Advance to employees 261.87 222.89
Interest accrued 2,274.04 2,608.75
9,605.95 7,321.09
*
Includes Government Subsidy of ` 6,034,62 Lacs (31 March 2018: ` 3,110.04 Lacs ).
Refer to Note 17 for information on other current financial assets pledged as security by the company.
`/Lacs
As at As at
31 March 2019 31 March 2018
13. Current tax assets (net)
Advance tax (Net of provision for income tax of ` 10,370.24 Lacs) (31 March 2018: 180.98 752.57
` 9,413.62 Lacs ).
180.98 752.57
`/Lacs
As at As at
31 March 2019 31 March 2018
14. Other current assets
Balances with Government authorities 5,079.66 2,366.36
Prepaid expenses 1,141.71 1,082.66
Advance to employees 85.30 88.52
Advances to suppliers 9,552.23 9,016.55
Deferred employee compensation 16.58 14.54
15,875.48 12,568.63
No advances are due by directors or other officers of the Company or any of them either severally or jointly with any other
persons or amounts due by firms or private companies respectively in which any director is a partner or a director or a member.
`/Lacs
As at As at
31 March 2019 31 March 2018
15. Equity Share capital
Authorised:
8,00,00,000 ( 31 March 2018 - 8,00,00,000) equity shares of ` 10/- each 8,000.00 8,000.00
Issued, subscribed & fully paid up:
7,72,68,251 (31 March 2018 - 6,99,27,250) equity Shares of ` 10/- each 7,726.83 6,992.72
7,726.83 6,992.72
a.
Terms and rights attached to equity shares
Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company,
the holders of equity shares will be entitled to receive remaining assets of the company, after distribution
of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the
shareholders. There is no restriction on distribution of dividend. However, same is subject to the approval of
the shareholders in the Annual General Meeting.
b. Reconciliation of number of shares outstanding at the beginning and end of the year :
`/Lacs
Number of
Amount
Shares
Outstanding at the 1 April 2017 6,99,27,250 6,992.72
Equity Shares issued during the year - -
Outstanding at the 31 March 2018 6,99,27,250 6,992.72
Equity Shares issued during the year # 73,41,001 734.11
Outstanding at the 31 March 2019 7,72,68,251 7,726.83
NOTES
to the financial statements for the year ended 31st March, 2019
`/Lacs
As at As at
31 March 2019 31 March 2018
16. Other equity
a. Securities premium
Balance at the beginning of the year 25,988.60 25,988.60
Add Addition during the year # 50,344.58 -
Less: Adjustment during the year # 653.52 -
Balance at the end of the year 75,679.66 25,988.60
b. Debenture redemption reserve
Balance at the beginning of the year 9,964.50 9,955.10
Transfer from /(to) retained earnings (87.60) 9.40
Balance at the end of the year 9,876.90 9,964.50
c. General reserve
Balance at the beginning of the year 80,325.02 74,325.02
Add: Transfer from retained earnings 10,000.00 6,000.00
Balance at the end of the year 90,325.02 80,325.02
d. Retained earnings (including Other Comprehensive Income)
Balance at the beginning of the year 91,463.67 69,890.85
Add: Profit for the year 32,489.54 34,187.36
Add: Other Comprehensive income for the year 61.39 127.88
Less: Transfer to general reserve 10,000.00 6,000.00
Less: Transfer to debenture redemption reserve - 9.40
Add: Transfer from debenture redemption reserve 87.60 -
Less: Dividend on equity shares 6,992.73 5,594.18
Less: Dividend distribution tax on equity shares 1,437.38 1,138.84
1,05,672.09 91,463.67
2,81,553.67 2,07,741.79
# The Company through Qualified Institutions Placement (QIP) allotted 73,41,001 Equity Shares (fully paid up)
to the eligible Qualified Institutional Buyers (QIB) at a price of ` 695.80 per equity share of face value of ` 10
each (inclusive of premium of ` 685.80 per equity share) aggregating to ` 51,078.68 lacs. The issue was made
in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2018 as amended. Pursuant to the allotment of equity shares in the QIP, the paid up equity share
capital of the Company has increased from ` 6,992.72 lacs comprising of 6,99,27,250 equity shares to ` 7,726.83
lacs comprising of 7,72,68,251 equity shares. Share issue expenses are charged off against securities premium.
Debenture Redemption Reserve (DRR)
The Company has issued redeemable non-convertible debentures. Accordingly, the Companies (Share capital
and Debentures) Rules, 2014 (as amended), require the Company to create DRR out of profits of the Company
available for payment of dividend. DRR is required to be created for an amount which is equal to 25% of the value
of outstanding debentures.
General reserve
The Company appropriates a portion to general reserves out of the profits either as per the requirements of the
Companies Act 2013 (‘Act’) or voluntarily to meet future contingencies. The said reserve is available for payment
of dividend to the shareholders as per the provisions of the Act
Securities premium reserve
Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for
limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
Other Comprehensive Income
Remeasurement of defined benefit plans
“Remeasurements of defined benefit plans represents the following as per Ind AS 19, Employee Benefits:
(a) actuarial gains and losses
(b) the return on plan assets, excluding amounts included in net interest on the net defined benefit liability
(asset); and
(c) any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined
benefit liability (asset).
Dividend
The following dividends were paid by the Company for the year.
After the reporting date, the following dividends were proposed by the board of directors. The dividends have not
been recognised as liabilities and there are no tax consequences.
Capital management
For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium
and all other equity reserves attributable to the equity holders of the Company. The primary objective of the
Company’s capital management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may
adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company
monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company
includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents, excluding
discontinued operations.
In order to achieve this overall objective, the company’s capital management, amongst other things, aims to
ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital
structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call
loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and
borrowing in the current period.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31
March 2019 and 31 March 2018.
NOTES
to the financial statements for the year ended 31st March, 2019
`/Lacs
As at As at
31 March 2019 31 March 2018
17. Borrowings
Secured
Non convertible debentures 51,780.87 58,992.88
Less: Current maturities of non convertible debentures (Refer note 24) 10,950.00 7,300.00
Term loans
From banks 1,58,335.71 1,55,231.94
Less: Current maturities of term loans (Refer note 24) 12,198.39 8,760.06
Vehicle loans 828.29 672.04
Less: Current maturities of vehicle loans (Refer note 24) 446.60 325.13
VAT loans from Government 5,704.32 5,300.66
Unsecured
Deferred sales tax liabilities 3,230.87 3,818.40
Less: Current maturities of deferred sales tax liabilities (Refer note 24) 636.72 659.95
1,95,648.35 2,06,970.78
a) Company’s Existing Plant at Nimbahera having Annual 2023-24 10.50% 8,500.00 8,500.00
capacity of 3.25 MnTPA. b) Company’s Existing
Plant at Mangrol having capacity of 0.75 MnTPA.
c) Company’s Existing Plant at Gotan consisting
of White Cement plant having capacity of 0.40
MnTPA and Thermal Power Plant. d) Company’s
Existing Thermal power plant at Bamania.
ii) Security for NCDs for ` 30,000.00 lacs Annual 2023-24 11.00% 11,500.00 11,500.00
(31 March 2018 ` 30,000.00 lacs)
Secured by first mortgage on the Company’s flat at Annual 2025-26 9.65% 10,000.00 10,000.00
Ahmedabad and also against first pari-passu charge
by way of equitable mortgage of all the immovable
assets except mining land and hypothecation of
movable PPE pertaining to Company’s existing
cement plant at village Muddapur Karnataka
`/Lacs
Carrying Amount
Secured by pari-passu first charge on the Company’s Quarterly 2019-20 LTMLR 126.02 625.00
PPE (movable & immovable) by way of equitable Quarterly 2019-20 MCLR+0.75% 1,563.55 2,910.70
mortgage on immovable Assets and hypothecation on Quarterly 2023-24 MCLR+0.50% 7,458.32 8,460.28
movable PPE, related to company’s existing plant at Quarterly 2018-19 MCLR+0.20% - 428.57
Nimbahera, Mangrol & Gotan white.
i) Company’s Existing Plant at Nimbahera having
capacity of 3.25 MnTPA. ii) Company’s Existing
Plant at Mangrol having capacity of 0.75 MnTPA. iii)
Company’s Existing Plant at Gotan consisting of White
Cement plant having capacity of 0.40 MnTPA and
Thermal Power Plant.
Secured by exclusive charge by way of equitable Quarterly 2020-21 MCLR+0.65% 1,364.32 1,541.91
mortgage over the immovable assets and
hypothecation of movable assets pertaining to the
specified properties.
Secured by equitable mortgage of immovable Quarterly 2022-23 LTMLR 3,035.72 3,750.00
properties and hypothecation of movable PPE
pertaining to undertaking of J.K. Cement Works,
Gotan except current assets and vehicles.
Secured by First Pari-passu charge by way of Quarterly 2021-22MCLR+ 0.50% 4,856.87 6,267.50
equitable mortgage of all the immovable Properties Quarterly 2021-22 MCLR 350.04 433.30
(except mining land) and hypothecation of all Quarterly 2021-22 MCLR 613.26 757.50
moveable non current assets, present and future
pertaining to J.K. Cement Works and Thermal power
plant, Muddapur, Karnataka.
Secured by first pari-passu charge by way of Quarterly 2022-23 MCLR+0.50% 2,305.43 3,058.57
equitable mortgage of all the immovable assets
except mining land and hypothecation of all movable
PPE, present and future pertaining to J.K. Cement
Works, Muddapur, Karnataka.
Secured by first pari-passu charge by way of Quarterly 2023-24 MCLR+0.25% 1,417.16 1,718.69
equitable mortgage of all the immovable assets
and hypothecation of all movable PPE, present and
future pertaining to J.K. Cement Works, Muddapur,
Karnataka (excluding current assets).
Secured against exclusive charge on entire movable PPE Quarterly 2023-24 LTMLR 8,300.00 8,800.00
(by way of hypothecation) and on immovable PPE related
to the Wall Putty project at Katni, Madhya Pradesh
(excluding current assets and mining land, if any).
Secured by First charge by way of mortgage, on Quarterly 2030-31MCLR+ 0.50% 1,02,019.86 1,04,254.72
all the immovable properties, both present and Quarterly 2030-31MCLR+ 0.40% 12,223.41 12,538.33
future pertaining to, of the new cement Plants at
Mangrol, Rajasthan (save and except mining land)
including captive power plant of 25 MW and waste
heat recovery based power plant of 10 MW and split
Grinding Unit at Jharli, Haryana and hypothecation
of all the movable PPE of the above plants (save and
except Current Assets), both present and future and
second charge on all current assets, present and
future, pertaining to the above plants (subject to
prior charge created or to be created on the Current
Assets in favour of the Working Capital Lenders for
securing the Working Capital Facilities.
NOTES
to the financial statements for the year ended 31st March, 2019
`/Lacs
Carrying Amount
As at As at
31 March 2019 31 March 2018
b. Net Debt Reconciliation
This section sets out an analysis of net debt and the movements in net debt for
each of the periods presented
Cash and cash equivalents 49,871.77 54,752.14
Liquid investments 39,431.14 7,757.62
Current borrowings (40,213.39) (28,396.90)
Non current borrowings (1,95,648.35) (2,06,970.78)
Net Debt (1,46,558.83) (1,72,857.92)
`/Lacs
As at As at
31 March 2019 31 March 2018
18. Other non-current financial liabilities
Security deposits 23,891.31 20,678.88
23,891.31 20,678.88
`/Lacs
As at As at
31 March 2019 31 March 2018
19. Long-term provisions
Provision for employee benefits (Refer note 38)
- Gratuity 20.00 20.00
- Leave encashment 2,631.77 2,276.00
Provision for mines restoration charges* 816.43 211.55
3,468.20 2,507.55
* Provision for mines restoration charges:
Opening balance 211.55 197.15
Addition during the year 604.88 14.40
Closing balance 816.43 211.55
The Company provides for the expenditure to reclaim the quarries used for mining in the Statement of Profit and
Loss based on the estimated expenditure required to be made towards restoration and rehabilitation at the time
of vacation of mine. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current
best estimates.
`/Lacs
As at As at
31 March 2019 31 March 2018
20. Deferred tax liabilities (net)
A. The balance comprises temporary differences attributable to:
Deferred tax liabilities
Property, plant and equipment 62,612.01 60,057.48
Deferred tax assets
Unabsorbed depreciation & losses - 1,893.29
Employee benefits 1,100.28 965.63
Trade receivables 647.07 343.95
Liability on payment basis 3,255.39 2,763.18
MAT credit entitlement 26,359.74 27,372.44
31,249.53 26,718.99
As at Recognized Recognized in As at
31 March 2017 in P&L OCI 31 March 2018
Deferred tax assets
Unabsorbed depreciation & Losses 9,980.15 (8,086.86) 1,893.29
Employee benefits 840.63 192.67 (67.67) 965.63
Trade receivables 272.97 70.98 343.95
Liability on expenses 2,996.96 (233.78) 2,763.18
MAT credit entitlement 18,079.26 9,293.18 27,372.44
Sub- Total (a) 32,169.97 1,236.19 (67.67) 33,338.49
Deferred tax liabilities
Property, plant and equipment 58,450.60 1,606.88 - 60,057.48
Sub- Total (b) 58,450.60 1,606.88 - 60,057.48
Net Deferred Tax Liability (b)-(a) 26,280.63 #370.69 67.67 26,718.99
# Movement included ` 1.08 Lacs of earlier year tax adjustment
NOTES
to the financial statements for the year ended 31st March, 2019
`/Lacs
As at As at
31 March 2019 31 March 2018
21. Other non-current liabilities
Deferred government subsidies
- Deferred income on government grants 8,668.22 9,232.02
8,668.22 9,232.02
Government grants have been received against the purchase of certain items of
property, plant and equipment. There are no unfulfilled conditions or contingencies
attached to these grants.
Opening balance
Current 753.76 606.88
Non current 9,232.02 8,633.01
9,985.78 9,239.89
Received during the year 331.30 1,499.65
Released to statement of profit or loss 834.80 753.76
Closing balance
Current 814.06 753.76
Non-current 8,668.22 9,232.02
9,482.28 9,985.78
`/Lacs
As at As at
31 March 2019 31 March 2018
22. Short term borrowings
Loan repayable on demand (Secured)*
- From banks 15,981.68 11,351.76
15,981.68 11,351.76
*Loan repayable on demand are secured by first charge on current assets of the Company namely inventories,
book debts etc. and second charge on PPE of the Company except the PPE pertaining to J.K. Cement Works,
Gotan and the assets having exclusive charge of other lenders.
`/Lacs
As at As at
31 March 2019 31 March 2018
23. Trade payables
(a) Total outstanding dues of micro enterprises and small enterprises (Refer note 42) 1,051.10 1,227.33
(b) Total outstanding dues of creditors other than micro enterprises and small 68,774.99 63,078.44
enterprises
69,826.09 64,305.77
Based on the information available with the Company regarding the status of suppliers as defined under MSMED
Act,2006, there was no principal amount overdue and no interest was payable to the Micro, Small and Medium
Enterprises on 31st March, 2019 as per the the terms of contract.
`/Lacs
As at As at
31 March 2019 31 March 2018
24. Other financial liabilities
Current maturities of long-term debt 24,231.71 17,045.14
Employee dues 1,980.39 1,540.24
Interest accrued but not due on borrowings 1,151.61 1,333.16
Unpaid dividends 135.39 117.88
Unclaimed fraction money 9.22 9.22
Security deposits 1,179.40 1,033.33
Project creditors 10,757.50 673.96
Temporary book overdraft 997.04 54.28
Others 1,164.15 537.61
41,606.41 22,344.82
`/Lacs
As at As at
31 March 2019 31 March 2018
25. Other current liabilities
Statutory dues payable 6,718.09 7,685.84
Government grant 814.06 753.76
Advance from customer 6,789.73 8,939.58
Others 271.86 271.86
14,593.74 17,651.04
`/Lacs
As at As at
31 March 2019 31 March 2018
26. Short-term provisions
Employee benefits 1,017.63 1,884.43
1,017.63 1,884.43
NOTES
to the financial statements for the year ended 31st March, 2019
`/Lacs
Sale of products includes excise duty collected from customers of ` Nil (31 March 2018: ` 16,696.43 lacs). Sale of
goods net of excise duty is ` 4,91,919.04 lacs (31 March 2018: ` 4,54,258.97 lacs). Revenue from operations for
periods up to 30 June 2017 includes excise duty. From 1 July 2017 onwards the excise duty and most indirect
taxes in India have been replaced by Goods and Service Tax (GST). The group collects GST on behalf of the
Government. Hence, GST is not included in Revenue from operations. In view of the aforesaid change in indirect
taxes, revenue from operations year ended 31 March 2019 is not comparable 31 March 2018.
`/Lacs
`/Lacs
`/Lacs
`/Lacs
`/Lacs
`/Lacs
`/Lacs
`/Lacs
NOTES
to the financial statements for the year ended 31st March, 2019
`/Lacs
* Includes ` 35 Lacs in relation to services given for Qualified Institutional Placement (QIP) which has been charged off against
securities premium.
`/Lacs
`/Lacs
As at As at
31 March 2019 31 March 2018
36. Contingent liabilities, contingent assets and commitment
A. Contingent liabilities:
1. Claim against the Company not acknowledged as debts (includes show cause 25,238.68 21,926.41
notices pertaining to excise duty and others)(cash flow is dependent on court
decision pending at various level)
2. There are numerous interpretative issues relating to the Supreme Court (SC) - -
judgement dated 28th February, 2019 on Provident Fund (PF) on the inclusion
of allowances for the purpose of PF contribution as well as its applicability of
effective date. The Company is evaluating and seeking legal inputs regarding various
interpretative issues and its impact.As per initial assessment done by the Company,
the prospective impact of the same would not be material.
Other for which the Company is contingently liable
3. In respect of disputed demands for which Appeals are pending with Appellate
Authorities/Courts – no provision has been considered necessary by the
Management.
a) Excise duty * 2,239.93 2,143.77
b) Sales and Entry Tax* 6,348.76 5,469.56
c) Service Tax* 932.28 1,362.89
`/Lacs
As at As at
31 March 2019 31 March 2018
d) Income Tax (primarily on account of disallowance of depreciation on goodwill and 5,874.45 5,450.36
additional depreciation on power plants etc.)
4. In respect of interest on “Cement Retention Price” realised in earlier years 1,271.81 1,251.43
5. In respect of penalty of non lifting of fly Ash 1,542.82 1,270.56
6. The Competition Commission of India ('CCI') has imposed penalty of ` 12,854 lacs 13,782.00 13,782.00
(‘first matter’) and ` 928 lacs (‘second matter’) in two separate orders dated August
31, 2016 and January 19, 2017 respectively for alleged contravention of provisions of
Competition Act 2002 by the Company. The Company has filed appeals against the
above orders. The National Company Law Appellate Tribunal ('NCLAT'), on hearing
the appeal in the first matter, upheld the decision of CCI for levying the penalty vide
its order dated July 25, 2018. Post order of the NCLAT, CCI issued a revised demand
notice dated August 7, 2018 of ` 15,492 lacs consisting of penalty of ` 12,854 lacs
and interest of ` 2,638 lacs. The Company has filed appeal with Hon’ble Supreme
Court against the above order. Hon’ble Supreme Court has stayed the NCLAT order.
While the appeal of the Company is pending for hearing, the Company backed by a
legal opinion, believes that it has a good case and accordingly no provision has been
considered in the books of accounts. In the second matter, demand had been stayed
and the matter is pending for the hearing before NCLAT.
NOTES
to the financial statements for the year ended 31st March, 2019
38.
EMPLOYEE BENEFITS
The Company contributes to the following post-employment defined benefit plans in India.
(i) Defined Contribution Plans:
The Company makes contributions towards provident fund and superannuation fund to a defined contribution
retirement benefit plan for qualifying employees. Under the plan, the Company is required to contribute a
specified percentage of payroll cost to the retirement benefit plan to fund the benefits.
`/Lacs
For the year ended
31 March 2019 31 March 2018
Contribution to government Provident Fund 1,262.81 1,135.91
Contribution to Superannuation Scheme 453.35 478.06
Contribution to Family Pension Fund 474.87 473.87
C. Plan assets
The plan assets are managed by the Gratuity Trust formed by the Company. The management of 100% of the
funds is entrusted according to norms of Gratuity Trust, whose pattern of investment is available with the
Company.
`/Lacs
Particulars
31 March 2019 31 March 2018
D. Actuarial assumptions
The following were the principal actuarial assumptions at the reporting date (expressed as weighted
averages).
`/Lacs
31 March 2019 31 March 2018
Discount rate 7.30% 7.40%
Expected rate of return on plan assets 8.50% 8.50%
Mortality
Turnover rate : Staff 5% of all ages 5% of all ages
Turnover rate : Worker 1% of all ages 1% of all ages
Expected rate of future salary increase 10% 10%
Assumptions regarding future mortality have been based on published statistics and mortality tables.
At 31 March 2019, the weighted-average duration of the defined benefit obligation was 6 years (as at 31
March 2018: 6 years).
NOTES
to the financial statements for the year ended 31st March, 2019
E. Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other
assumptions constant, would have affected the defined benefit obligation by the amounts shown below.
Gratuity
Although the analysis does not take account of the full distribution of cash flows expected under the plan, it
does provide an approximation of the sensitivity of the assumptions shown.
F. Through its defined benefit plans, the company is exposed to a number of risks, the most significant of
which are detailed below:
Asset volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if
plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed
income securities with high grades and in government securities. These are subject to interest rate risk and
the fund manages interest rate risk with derivatives to minimise risk to an acceptable level.
Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially
offset by an increase in the value of the scheme’s bond holdings.
Life expectancy: The pension obligations are to provide benefits for the life of the member, so increase
in life expectancy will result in increase in plans liability. This is particularly significant where inflationary
increases result in higher sensitivity to changes in life expectancy.
The Company ensures that the investment positions are managed within an asset-liability matching (ALM)
framework that has been developed to achieve long-term investments that are in line with the obligations
under the employee benefit plans. Within this framework, the group’s ALM objective is to match assets to
the pension obligations under the employee benefit plan term fixed interest securities with maturities that
match the benefit payments as they fall due and in the appropriate currency. The Company actively monitors
how the duration and the expected yield of the investments are matching the expected cash outflows arising
from the employee benefit obligations. The Company has not changed the processes used to manage its risks
from previous periods. Investments are well diversified, such that the failure of any single investment would
not have a material impact on the overall level of assets. A large portion of assets at reporting date consists
of government and corporate bonds, although the group also invests in equities, cash and mutual funds.
The group believes that equities offer the best returns over the long term with an acceptable level of risk.
G. The expected benefit payments in future years:
`/Lacs
31 March 2019 31 March 2018
Within the next 12 months (next annual reporting period) 1,006.13 963.40
Between 2 and 5 years 3,406.93 3,593.55
Between 5 and 10 years 4,550.34 4,276.01
Beyond 10 years 20,822.18 18,905.01
Total expected payments 29,785.58 27,737.97
(2) a) Following are the transactions with related parties as defined under section 188 of Companies Act
2013 and Ind AS 24.
`/Lacs
NOTES
to the financial statements for the year ended 31st March, 2019
The sales to and purchases from related parties are made on terms equivalent to those that prevail in
arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and
settlement occurs in cash. There have been no guarantees (except corporate guarantees) provided or
received for any related party receivables or payables. For the year ended 31 March 2019, the Company
has not recorded any impairment of receivables relating to amounts owed by related parties (31
March 2018: ` Nil). This assessment is undertaken each financial year through examining the financial
position of the related party and the market in which the related party operates.
c) Compensation of key management personnel of the company
`/Lacs
Financial assets and liabilities measured at fair value - recurring fair value measurements
`/Lacs
As at 31 March 2019
Level 1 Level 2 Level 3 Total
Financial assets
Assets measured at fair value
Investments
Equity Shares - - 8.00 8.00
Mutual Funds & Bonds 43,818.48 - - 43,818.48
Financial liabilities
Liabilities for which fair values are disclosed
Non Current Borrowings - - 1,94,634.01 1,94,634.01
43,818.48 - 1,94,642.01 2,38,460.49
NOTES
to the financial statements for the year ended 31st March, 2019
Financial assets and liabilities measured at fair value - recurring fair value measurements
`/Lacs
As at 31 March 2018
Level 1 Level 2 Level 3 Total
Financial assets
Assets measured at fair value
Investments
Equity Shares - - 8.00 8.00
Mutual Funds & Bonds 11,885.19 - 2,471.58 14,356.77
Financial liabilities
Liabilities for which fair values are disclosed
Non Current Borrowings - - 2,06,161.84 2,06,161.84
11,885.19 - 2,08,641.42 2,20,526.61
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes mutual
funds that have quoted price.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximise the use of observable market data and rely as little as possible on
entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the
instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case for unlisted equity securities.
There are no transfers between level 1 and level 2 during the year
Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
- the use of quoted market prices or dealer quotes for similar instruments
- the fair value of forward foreign exchange contracts is determined using forward exchange rates at the
balance sheet date
- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.
C. Fair value of financial assets and liabilities measured at amortised cost
`/Lacs
(i) The carrying amounts of trade receivables, the risks faced by the Company. The Audit
trade payables, Short Term Borrowings, cash Committee is assisted in its oversight role
and cash equivalents, other bank balances, by Internal Audit. Internal Audit undertakes
other financial liabilities, and other financial both regular and ad hoc reviews of risk
assets are considered to be the same as their management controls and procedures, the
fair values, due to their short-term nature. results of which are reported to the Audit
The fair values for security deposits are Committee.
calculated based on cash flows discounted
ii. Credit risk
using a current lending rate.
Credit risk is the risk of financial loss to
the Company if a customer or counterparty
(ii) The fair values of non-current borrowings to a financial instrument fails to meet its
are based on discounted cash flows using a contractual obligations, and arises principally
current borrowing rate. They are classified as from the Company’s receivables from
level 3 fair values in the fair value hierarchy customers including deposits with banks and
due to the use of unobservable inputs, financial institutions.
including own credit risk.
Trade and other receivables
The Company’s exposure to credit risk
(iii) The fair value of the financial assets and is influenced mainly by the individual
liabilities is included at the amount at which characteristics of each customer. However,
the instrument is exchanged in a current management also considers the factors that
transaction between willing parties, other than may influence the credit risk of its customer
in a forced or liquidation sale. base, including the default risk of the industry
and country in which customers operate.
II. Financial risk management
The Company has exposure to the following risks
The Risk Management Committee has
arising from financial instruments:
established a credit policy under which
- credit risk; each new customer is analysed individually
for creditworthiness before the Company’s
- liquidity risk; and
standard payment and delivery terms and
- market risk conditions are offered. The Company’s review
includes external ratings, if they are available,
i. Risk management framework
and in some cases bank references. Sale
The Company’s board of directors has overall
limits are established for each customer
responsibility for the establishment and
and reviewed quarterly. Any sales exceeding
oversight of the Company’s risk management
those limits require approval from the Risk
framework. The board of directors has
Management Committee.
established the Risk Management Committee,
which is responsible for developing and
In monitoring customer credit risk, customers
monitoring the Company’s risk management
are Companies according to their credit
policies. The committee reports regularly to
characteristics, including whether they are an
the board of directors on its activities.
individual or a legal entity, their geographic
location, industry and existence of previous
The Company’s risk management policies are financial difficulties. The Company evaluates
established to identify and analyse the risks the concentration of risk with respect to
faced by the Company, to set appropriate trade receivables as low, as its customers are
risk limits and controls and to monitor risks located in several jurisdictions and industries
and adherence to limits. Risk management and operate in largely independent markets.
policies and systems are reviewed regularly to
A default on financial assets is when the
reflect changes in market conditions and the
counterparty fails to make contractual
Company’s activities. The Company, through
payments within 60 days of when they fall
its training and management standards and
due. This definition of default is determined
procedures, aims to maintain a disciplined
by considering the business environment
and constructive control environment in
in which the entity operates and other
which all employees understand their roles
macro-economic factors. The Company
and obligations.
holds bank guarantees/security deposits
The Company's Audit Committee oversees against trade receivables of ` 6764.94 lacs (31
how management monitors compliance with March 2018: ` 5646.56 lacs) and as per the
the Company’s risk management policies and terms and condition of the agreements, the
procedures, and reviews the adequacy of the Company has the right to encash the bank
risk management framework in relation to
NOTES
to the financial statements for the year ended 31st March, 2019
guarantee or adjust the security deposits in payments within 60 days of when they fall
case of defaults. due. This definition of default is determined by
considering the business environment in which
The Company establishes an allowance for
the entity operates and other macro-economic
impairment that represents its expected
factors.
credit losses in respect of trade and
other receivables. The management uses
The Company establishes an allowance for
a simplified approach for the purpose of impairment that represents its expected
computation of expected credit loss for trade credit losses in respect of trade and
receivables other receivables. The management uses
a simplified approach for the purpose of
Expected credit losses are a probability weighted
computation of expected credit loss for trade
estimate of credit losses. Credit losses are
receivables.
measured as the present value of all cash
shortfalls (i.e. the difference between the cash
Expected credit losses are a probability
flows due to the Company in accordance with the weighted estimate of credit losses.
contract and the cash flows that the Company Credit losses are measured as the present
expects to receive). value of all cash shortfalls (i.e. the difference
between the cash flows due to the Company
During the based on specific assessment, the
in accordance with the contract and the cash
Company recognised bad debts and advances
flows that the Company expects to receive).
of ` 3.02 lacs (31 March 2018: ` 9.85 lacs).
The year end trade receivables do not include iii.
Liquidity risk
any amounts with such parties. Liquidity risk is the risk that the Company will
encounter difficulty in meeting the obligations
The maximum exposure to credit risk at the
associated with its financial liabilities that
reporting date is the carrying value of trade
are settled by delivering cash or another
receivables disclosed in Note 9
financial asset. The Company’s approach
Reconciliation of loss allowance provision - to managing liquidity is to ensure, as far as
Trade Receivables possible, that it will have sufficient liquidity to
meet its liabilities when they are due, under
`/Lacs both normal and stressed conditions, without
Particulars As at As at incurring unacceptable losses or risking
March 2019 March 2018 damage to the Company’s reputation.
Opening Balance 959.87 739.12
Prudent liquidity risk management implies
Change in loss 130.10 220.75
maintaining sufficient cash and marketable
allowance
securities and the availability of funding
Closing Balance 1,089.97 959.87
through an adequate amount of committed
Financial instruments and cash deposits credit facilities to meet obligations when due
Credit risk from balances with banks and and to close out market positions. Due to the
financial institutions is managed by the dynamic nature of the underlying businesses,
Company’s treasury department in accordance Company treasury maintains flexibility in
with the Company’s policy. Investments of funding by maintaining availability under
surplus funds are made only with approved committed credit lines.
counterparties and within credit limits
Management monitors rolling forecasts of the
assigned to each counterparty. The limits are
Company’s liquidity position (comprising the
set to minimise the concentration of risks
undrawn borrowing facilities below) and cash
and therefore mitigate financial loss through
and cash equivalents on the basis of expected
counterparty’s potential failure to make
cash flows. This is generally carried out in
payments.
accordance with practice and limits set by
The Company’s maximum exposure to credit the Company. These limits vary by location to
risk for the components of the balance sheet take into account the liquidity of the market
at 31 March 2019 and 31 March 2018 is the in which the entity operates. In addition,
carrying amounts as shown in Note 4,8,10,11 the Company’s liquidity management policy
& 12. The Company has not recorded any involves projecting cash flows in major
further loss during the year in these financial currencies and considering the level of liquid
instruments and cash deposits as these assets necessary to meet these, monitoring
pertains to counter parties of good credit balance sheet liquidity ratios against internal
ratings/credit worthiness. and external regulatory requirements and
maintaining debt financing plans.
A default on financial assets is when the
counterparty fails to make contractual
`/Lacs
Carrying Contractual cash flows
Amounts
2 months 2–12 1–5 More than
31 March Total
or less months years 5 years
2019
Non-derivative financial liabilities
Non Current Borrowings 1,95,648.35 2,00,715.45 - - 1,07,198.79 93,516.66
Other non-current financial 23,891.31 23,891.31 - - 23,891.31 -
liabilities
Short term borrowings 15,981.68 15,981.68 - 15,981.68 - -
Trade payables 69,826.09 69,826.09 46,668.36 23,157.73 - -
Other current financial liabilities 41,606.41 41,606.41 3,589.11 37,881.91 135.39 -
Total non-derivative liabilities 3,46,953.84 3,52,020.94 50,257.47 77,021.32 1,31,225.49 93,516.66
`/Lacs
Carrying Contractual cash flows
Amounts
2 months 2–12 1–5 More than
31 March Total
or less months years 5 years
2018
Non-derivative financial liabilities
Non Current Borrowings 2,06,970.78 2,12,186.54 - - 1,00,117.22 1,12,069.32
Other non-current financial 20,678.88 20,678.88 - - 20,678.88 -
liabilities
Short term borrowings 11,351.76 11,351.76 - 11,351.76 - -
Trade payables 64,305.77 64,305.77 42,716.34 21,589.43 - -
Other current financial liabilities 22,344.82 22,344.82 3,604.13 18,604.24 136.45 -
Total non-derivative liabilities 3,25,652.01 3,30,867.77 46,320.47 51,545.43 1,20,932.55 1,12,069.32
Further the Company issued financial guarantee as disclosed in note 39 for which the possibility of payment
is remote.
iv.
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises of interest rate risk and currency risk.
Financial instruments affected by market risk primarily include trade and other receivables, trade and
other payables and borrowings.
Currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign
exchange rates relates primarily to the Company's operating activities (when revenue or expense is
denominated in a foreign currency). The Company manages its foreign currency risk by taking foreign
currency forward contracts, if required
Exposure to currency risk
The summary quantitative data about the Company’s exposure to currency risk as reported to the
management of the Company is as follows:
NOTES
to the financial statements for the year ended 31st March, 2019
Sensitivity analysis
A reasonably possible strengthening (weakening) of the INR against all other currencies at 31 March
would have affected the measurement of financial instruments denominated in a foreign currency and
affected equity and profit or loss by the amounts shown below. This analysis assumes that all other
variables, in particular interest rates, remain constant.
Nominal Amount
31 March 2019 31 March 2018
Fixed-rate instruments
Financial assets 40,706.21 83,381.71
Financial liabilities 85,435.66 89,462.86
1,26,141.87 1,72,844.57
Variable-rate instruments
Financial assets 99,005.49 35,146.31
Financial liabilities 1,74,317.39 1,66,583.70
2,73,322.88 2,01,730.01
42. DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS DEFINED UNDER THE MSMED, 2006
`/Lacs
As at March 31 As at March 31
March 2019 March 2018
i) Principal amount remaining unpaid to any supplier as at the end of the accounting year 1,051.10 1,227.33
(ii) Interest due thereon remaining unpaid to any supplier as at the end of the accounting year - -
(iii) the amount of interest paid by the buyer in terms of section 16 of the Micro, Small - -
and Medium Enterprises Development Act, 2006, along with the amount of the
payment made to the supplier beyond the appointed day during each accounting year
(iv)The amount of interest due and payable for the year
(v) the amount of further interest remaining due and payable even in the succeeding years,
until such date when the interest dues above are actually paid to the small enterprise,
for the purpose of disallowance of a deductible expenditure under section 23 of the
Micro, Small and Medium Enterprises Development Act, 2006.
Dues to Micro and Small Enterprises have been determined to the extent declarations
received from vendors.
43. IN ADDITION TO THE ABOVE, FOLLOWING ARE THE RECLASSIFICATIONS MADE IN THE PREVIOUS YEAR
FIGURES TO MAKE THEM COMPARABLE/BETTER PRESENTATION WITH THE CURRENT YEAR FIGURES.
`/Lacs
CURRENT LIABILITIES
Trade Payable - Current 64,305.77 41,355.94 Reclassification items
Other financial liabilities 22,344.82 43,752.10 Reclassification items
Other current liabilities 17,651.04 19,011.45 Reclassification items
NOTES
to the financial statements for the year ended 31st March, 2019
45. ASSETS HELD FOR SALE Lessor accounting under Ind AS 116 is
During previous year, the Company had entered substantially unchanged from today’s accounting
into agreement to sell the thermal power plant and under Ind AS 17. Lessors will continue to classify
other DG sets at Rajasthan location as these were all leases using the same classification principle as
not in active use. Accordingly, these assets were in Ind AS 17 and distinguish between two types of
classified as 'held for sale'. Sale of these assets are leases: operating and finance leases.
expected to be completed within next 12 months.
The Company intends to adopt these standards from
1 April 2019. The impact on adoption of Ind AS 116
46. EXCEPTIONAL ITEMS on the financial statements is given below. Ind AS
This represents the loss booked on accounts of 116 also requires lessees and lessors to make more
sale of thermal power plant and other DG sets in extensive disclosures than under Ind AS 17.
previous year.
Transition to Ind AS 116
47. STANDARDS ISSUED BUT NOT YET EFFECTIVE The Company is proposing to use the ‘Modified
The amendments to standards that are issued, but Retrospective Approach’ for transitioning to Ind
not yet effective, up to the date of issuance of the AS 116, and take the cumulative adjustment to
Company’s financial statements are disclosed below. retained earnings, on the date of initial application
The Company intends to adopt these standards, if (April 1, 2019). Accordingly, comparatives for the
applicable, when they become effective. year ending or ended March 31, 2019 will not be
retrospectively adjusted. The Company has elected
The Ministry of Corporate Affairs (MCA) has issued certain available practical expedients on transition.
the Companies (Indian Accounting Standards)
Amendment Rules, 2017 and Companies (Indian The company is evaluating the requirements of
Accounting Standards) Amendment Rules, 2018 the amendment and the effect on the financial
amending the following standard: statements is being evaluated
Ind AS 116 Leases Amendments to Ind AS 12: Income Taxes
Ind AS 116 Leases was notified by MCA on 30 The amendments clarify that the income tax
March 2019 and it replaces Ind AS 17 Leases, consequences of dividends are linked more directly
including appendices thereto. to past transactions or events that generated
distributable profits than to distributions to
Ind AS 116 is effective for annual periods beginning owners. Therefore, an entity recognises the income
on or after 1 April 2019. Ind AS 116 sets out the tax consequences of dividends in profit or loss,
principles for the recognition, measurement, other comprehensive income or equity according
presentation and disclosure of leases and requires to where the entity originally recognised those
lessees to account for all leases under a single past transactions or events.
on-balance sheet model similar to the accounting
for finance leases under Ind AS 17. The standard An entity applies those amendments for annual
includes two recognition exemptions for lessees reporting periods beginning on or after 1
– leases of ‘low-value’ assets (e.g., personal April 2019. Since the Company’s current practice is
computers) and short-term leases (i.e., leases in line with these amendments, the Company does
with a lease term of 12 months or less). At the not expect any effect on its financial statements.
commencement date of a lease, a lessee will Amendments to Ind AS 23: Borrowing Costs
recognise a liability to make lease payments (i.e., The amendments clarify that an entity treats
the lease liability) and an asset representing the as part of general borrowings any borrowing
right to use the underlying asset during the lease originally made to develop a qualifying asset when
term (i.e., the right-of-use asset). Lessees will substantially all of the activities necessary to
be required to separately recognise the interest prepare that asset for its intended use or sale are
expense on the lease liability and the depreciation complete.
expense on the right-of-use asset.
An entity applies those amendments to borrowing
Lessees will be also required to remeasure the costs incurred on or after the beginning of the
lease liability upon the occurrence of certain annual reporting period in which the entity first
events (e.g., a change in the lease term, a change applies those amendments. An entity applies
in future lease payments resulting from a change those amendments for annual reporting periods
in an index or rate used to determine those beginning on or after 1 April 2019. Since the
payments). The lessee will generally recognise the Company’s current practice is in line with these
amount of the remeasurement of the lease liability amendments, the Company does not expect any
as an adjustment to the right-of-use asset. effect on its financial statements.
As per our report of even date.
For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of
Chartered Accountants J K Cement Limited
ICAI Firm Regn. No. 301003E/E300005
REPORT ON THE AUDIT OF THE CONSOLIDATED IND Competition Act 2002 by the Company. The Company
AS FINANCIAL STATEMENTS has filed appeals against the above orders.
Opinion The National Company Law Appellate Tribunal
We have audited the accompanying consolidated ('NCLAT'), on hearing the appeal in the first matter,
Ind AS financial statements of J. K. Cement Limited upheld the decision of CCI for levying the penalty vide
(hereinafter referred to as “the Holding Company”), its its order dated July 25, 2018. Post order of the NCLAT,
subsidiaries (the Holding Company and its subsidiaries CCI issued a revised demand notice dated August 7,
together referred to as “the Group”) comprising of the 2018 of ` 15,492 Lacs consisting of penalty of ` 12,854
consolidated Balance Sheet as at March 31 2019, the Lacs and interest of ` 2,638 Lacs. The Company has
consolidated Statement of Profit and Loss, including filed appeal with Hon'ble Supreme Court against
other comprehensive income, the consolidated Cash the above order. Hon'ble Supreme Court has stayed
Flow Statement and the consolidated Statement of the NCLAT order. While the appeal of the Company
Changes in Equity for the year then ended, and notes to is pending for hearing, the Company backed by a
the consolidated Ind AS financial statements, including legal opinion, believes that it has a good case and
a summary of significant accounting policies and other accordingly no provision has been considered in the
explanatory information (hereinafter referred to as “the books of accounts.
consolidated Ind AS financial statements”).
In the second matter, demand had been stayed
In our opinion and to the best of our information and and the matter is pending for the hearing before
according to the explanations given to us and based NCLAT. While the appeal of the Company is
on the consideration of reports of other auditors pending for hearing, the Company backed by a
on separate financial statements and on the other legal opinion, believes that it has a good case and
financial information of the subsidiaries, the aforesaid accordingly no provision has been considered in the
consolidated Ind AS financial statements give the books of accounts.
information required by the Companies Act, 2013,
Our opinion is not modified in respect of this matter.
as amended (“the Act”) in the manner so required
and give a true and fair view in conformity with the Key Audit Matters
accounting principles generally accepted in India, of Key audit matters are those matters that, in our
the consolidated state of affairs of the Group as at professional judgment, were of most significance in our
March 31, 2019, their consolidated profit including audit of the consolidated Ind AS financial statements
other comprehensive income, their consolidated cash for the financial year ended March 31, 2019.
flows and the consolidated statement of changes in These matters were addressed in the context of our
equity for the year ended on that date. audit of the consolidated Ind AS financial statements
as a whole, and in forming our opinion thereon, and we
Basis for Opinion
do not provide a separate opinion on these matters.
We conducted our audit of the consolidated Ind AS
For each matter below, our description of how our
financial statements in accordance with the Standards
audit addressed the matter is provided in that context.
on Auditing (SAs), as specified under section 143(10)
of the Act. Our responsibilities under those Standards We have determined the matters described below to
are further described in the ‘Auditor’s Responsibilities be the key audit matters to be communicated in our
for the Audit of the Consolidated Ind AS Financial report. We have fulfilled the responsibilities described
Statements’ section of our report. We are independent in the Auditor’s responsibilities for the audit of the
of the Group in accordance with the ‘Code of Ethics’ consolidated Ind AS financial statements section
issued by the Institute of Chartered Accountants of of our report, including in relation to these matters.
India together with the ethical requirements that are Accordingly, our audit included the performance of
relevant to our audit of the financial statements under procedures designed to respond to our assessment of
the provisions of the Act and the Rules thereunder, the risks of material misstatement of the consolidated
and we have fulfilled our other ethical responsibilities Ind AS financial statements. The results of audit
in accordance with these requirements and the Code procedures performed by us and by other auditors of
of Ethics. We believe that the audit evidence we have components not audited by us, as reported by them in
obtained is sufficient and appropriate to provide a their audit reports furnished to us by the management,
basis for our audit opinion on the consolidated Ind AS including those procedures performed to address
financial statements. the matters below, provide the basis for our audit
opinion on the accompanying consolidated Ind AS
Emphasis of Matter
financial statements.
We draw attention to Note 36(A) to the consolidated
Ind AS financial statements wherein it has been stated
that the Competition Commission of India ('CCI')
has imposed penalty of ` 12,854 lacs (‘first matter’)
and ` 928 lacs (‘second matter’) in two separate
orders dated August 31, 2016 and January 19, 2017
respectively for alleged contravention of provisions of
Key audit matters How our audit addressed the key audit matter
Recoverability of carrying value of property, plant and equipment, capital work in progress and intangible assets of J. K.
Cement Works (Fujairah) FZC (a Fellow subsidiary) (as described in note 2 of the consolidated Ind AS financial statements)
As at March 31, 2019, the carrying value of property, plant and • Reviewed the analysis of internal and external factors
equipment, capital work in progress and intangible assets of impacting the entity, whether there were any indicators of
J. K. Cement Works (Fujairah) FZC (a Fellow subsidiary) was impairment in line with Ind AS 36, Impairment of Assets.
` 83,065.33 lacs constituting in total 16.3% of the Group.
• Performed walkthroughs and test of controls, assisted
Recoverable value of property plant and equipment, capital by IT specialists, with specific focus over impairment
work in progress and intangible assets of J.K. Cement Works identification, recognition and measurement controls.
(Fujairah) FZC has been identified as a key audit matter due to:
• Assessed the process and identification of control
• J. K. Cement Works (Fujairah) FZC is incurring losses and its mechanisms operating in the Group related to impairment
entire net worth is eroded and hence there is presence of tests of assets, as well as an understanding of the applied
impairment indicators. accounting policies and procedures, including internal
control environment related to the process of assessing
• The assessment of the recoverable amount of the Company’s
impairment indicators, performing of impairment tests,
Cash Generating Units (CGUs) involves significant judgements
about the future cash flow forecasts and the discount rate recognition and measurement controls
that is applied. Accordingly, the impairment of assets in J. • Obtained and evaluated the valuation model used to
K. Cement (Fujairah) FZC, was determined to be a key audit determine the recoverable amount by assessing the key
matter in our audit of the consolidated Ind AS financial assumptions used by management including:
statements.
- Considering forecasted volumes in relation to asset
development plans.
Key audit matters How our audit addressed the key audit matter
• Reviewed that the management assessment of similar
cases is consistent across the divisions or that differences
in positions taken are adequately justified.
• Assessed the relevant disclosures made within the
consolidated Ind AS financial statements
Revenue Recognition (as described in note 27 of the consolidated Ind AS financial statements)
For the year ended March 31, 2019 the Group has recognized Our audit procedures included the following:
revenue from operations of ` 525,868.04 lacs.
• Considered Group’s revenue recognition policy and its
The Group expects the revenue recognition to occur at point in compliance in terms of Ind AS 115 ‘Revenue from contracts
time when control of the goods is transferred to the customer, with customers’.
generally on delivery of the goods. Accordingly, this requires
the management to establish the fact that control of goods • Assessed the design and tested the operating effectiveness
is transferred at the time of dispatch in accordance with Ind of internal controls related to revenue recognition.
AS 115.The variety of terms that define when title, risk and • Performed sample tests of individual sales transaction and
rewards are transferred to the customer, as well as the high traced to sales invoices, sales orders and other related
value of the transactions, give rise to the risk that revenue is
documents. Further, in respect of the samples tested, we
not recognized in the correct period.
checked that the revenue has been recognized as per the
This area was of most significance in our audit due to the shipping terms.
magnitude of amount of the revenue involved and high number
• Selected sample of sales transactions made pre- and post-
of transactions.
year end, agreeing the period of revenue recognition to third
Revenue is also an important element of how the Group party support, such as transporter invoice and customer
measures its performance, upon which management confirmation of receipt of goods.
is incentivized. The Group focuses on revenue as a key
performance measure, which could create an incentive for • Performed monthly analytical review of revenue by streams
revenue to be recognized before the risk and rewards have been to identify any unusual trends.
transferred. • Obtained confirmations from customers to evaluate
Accordingly, due to the significant risk associated with revenue recognition of revenue.
recognition in accordance with terms of Ind AS 115 ‘Revenue from • Assessed the relevant disclosures made within the
contracts with customers’, it was determined to be a key audit consolidated Ind AS financial statements.
matter in our audit of the consolidated Ind AS financial statements
Deferred Tax Assets with respect to MAT Credit Entitlement (as described in note 20 of the consolidated Ind AS financial statements)
As at March 31, 2019 deferred tax assets in respect of ‘MAT Our audit procedures included the following:
credit entitlement’ recognized in the consolidated Ind AS • Developed an understanding of the nature of the Group’s
financial statements is of ` 26,359.74 lacs. tax structure and of the key tax positions.
Deferred tax assets are recognized for MAT credit available to • Assessed the design and tested the operating effectiveness
the extent that it is probable that the Group will pay normal of internal controls related to recognition of deferred tax
income tax during the specified period, i.e. the period for which assets with respect to MAT credit entitlement.
MAT credit is allowed to be carried forward.
• Obtained the future business plan approved by the Board of
The Group’s ability to recognize deferred tax assets on ‘MAT Directors and assessed the MAT credit position by inter alia
credit entitlement’ is assessed by management at the end of agreeing key inputs to supporting documentation and by
each reporting period, considering forecasts of future normal assessing the significant judgments made by management
taxable profits and if required the Group will write down the in this respect.
asset to the extent that it is no longer probable that it will pay
normal tax during the specified period. The assumptions on • Assessed the Group’s tax planning in relation to the
which these projections are determined by management. recovery of MAT credit assets by comparing the forecasted
taxable profit with historical data and budgets approved by
Given the degree of estimation and judgement involved in the board of directors.
projection of future taxable normal profits and the fact that
if the MAT credit is not utilized within the block of 15 years • Analyzed and tested management’s projections and
(immediately succeeding the assessment year in which the corresponding assumptions used to determine the likelihood
credit was generated) it will lapse, Group management’s that MAT Credit recognized as on the reporting date will be
decision to create deferred tax assets in respect of ‘MAT credit recovered through future tax as per normal provisions.
entitlement’ determined to be a key audit matter in our audit of • Checked the consistency of business plan with the latest
the consolidated Ind AS financial statements. management estimates prepared as a part of the budgeting
process and also the reliability of the process by which the
estimates were computed, by assessing the reasons for
differences between projected and actual performances.
INFORMATION OTHER THAN THE FINANCIAL In preparing the consolidated Ind AS financial
STATEMENTS AND AUDITOR’S REPORT THEREON statements, the respective Board of Directors of the
companies included in the Group are responsible
The Holding Company’s Board of Directors is
for assessing the ability of the Group to continue as
responsible for the other information. The other
a going concern, disclosing, as applicable, matters
information comprises the information included in the
related to going concern and using the going concern
Annual report, but does not include the consolidated
basis of accounting unless management either intends
Ind AS financial statements and our auditor’s
to liquidate the Group or to cease operations, or has no
report thereon.
realistic alternative but to do so.
Our opinion on the consolidated Ind AS financial
Those respective Board of Directors of the companies
statements does not cover the other information
included in the Group are also responsible for
and we do not express any form of assurance
overseeing the financial reporting process of the Group.
conclusion thereon.
In connection with our audit of the consolidated Ind AS AUDITOR’S RESPONSIBILITIES FOR THE AUDIT
financial statements, our responsibility is to read the OF THE CONSOLIDATED IND AS FINANCIAL
other information and, in doing so, consider whether STATEMENTS
such other information is materially inconsistent
Our objectives are to obtain reasonable assurance
with the consolidated Ind AS financial statements
about whether the consolidated Ind AS financial
or our knowledge obtained in the audit or otherwise
statements as a whole are free from material
appears to be materially misstated. If, based on the
misstatement, whether due to fraud or error, and to
work we have performed, we conclude that there is a
issue an auditor’s report that includes our opinion.
material misstatement of this other information, we are
Reasonable assurance is a high level of assurance,
required to report that fact. We have nothing to report
but is not a guarantee that an audit conducted in
in this regard.
accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise
RESPONSIBILITIES OF MANAGEMENT FOR THE
from fraud or error and are considered material if,
CONSOLIDATED IND AS FINANCIAL STATEMENTS
individually or in the aggregate, they could reasonably
The Holding Company’s Board of Directors is be expected to influence the economic decisions of
responsible for the preparation and presentation of users taken on the basis of these consolidated Ind AS
these consolidated Ind AS financial statements in financial statements.
terms of the requirements of the Act that give a true
As part of an audit in accordance with SAs, we exercise
and fair view of the consolidated financial position,
professional judgment and maintain professional
consolidated financial performance including other
skepticism throughout the audit. We also:
comprehensive income, consolidated cash flows and
consolidated statement of changes in equity of the • Identify and assess the risks of material
Group in accordance with the accounting principles misstatement of the consolidated Ind AS financial
generally accepted in India, including the Indian statements, whether due to fraud or error, design
Accounting Standards (Ind AS) specified under section and perform audit procedures responsive to those
133 of the Act read with the Companies (Indian risks, and obtain audit evidence that is sufficient
Accounting Standards) Rules, 2015, as amended. and appropriate to provide a basis for our opinion.
The respective Board of Directors of the companies The risk of not detecting a material misstatement
included in the Group are responsible for maintenance resulting from fraud is higher than for one resulting
of adequate accounting records in accordance with from error, as fraud may involve collusion, forgery,
the provisions of the Act for safeguarding of the assets intentional omissions, misrepresentations, or the
of the Group and for preventing and detecting frauds override of internal control.
and other irregularities; selection and application of
• Obtain an understanding of internal control relevant
appropriate accounting policies; making judgments
to the audit in order to design audit procedures that
and estimates that are reasonable and prudent;
are appropriate in the circumstances. Under section
and the design, implementation and maintenance
143(3)(i) of the Act, we are also responsible for
of adequate internal financial controls, that were
expressing our opinion on whether the Holding
operating effectively for ensuring the accuracy and
Company has adequate internal financial controls
completeness of the accounting records, relevant to
system in place and the operating effectiveness
the preparation and presentation of the consolidated
of such controls.
Ind AS financial statements that give a true and fair
view and are free from material misstatement, whether • Evaluate the appropriateness of accounting policies
due to fraud or error, which have been used for the used and the reasonableness of accounting estimates
purpose of preparation of the consolidated Ind AS and related disclosures made by management.
financial statements by the Directors of the Holding
• Conclude on the appropriateness of management’s
Company, as aforesaid.
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether because the adverse consequences of doing so would
a material uncertainty exists related to events or reasonably be expected to outweigh the public interest
conditions that may cast significant doubt on the benefits of such communication.
ability of the Group to continue as a going concern.
If we conclude that a material uncertainty exists, we OTHER MATTER
are required to draw attention in our auditor’s report
We did not audit the financial statements and other
to the related disclosures in the consolidated Ind
financial information, in respect of 4 subsidiaries
AS financial statements or, if such disclosures are
whose Ind AS financial statements include total assets
inadequate, to modify our opinion. Our conclusions
of ` 106,836.96 lacs as at March 31, 2019, and total
are based on the audit evidence obtained up to the
revenues of ` 27,777.04 lacs and net cash outflows
date of our auditor’s report. However, future events
of ` 3,741.54 lacs for the year ended on that date.
or conditions may cause the Group to cease to
These Ind AS financial statement and other financial
continue as a going concern.
information have been audited by other auditors, which
• Evaluate the overall presentation, structure and financial statements, other financial information and
content of the consolidated Ind AS financial auditor’s reports have been furnished to us by the
statements, including the disclosures, and whether management. Our opinion on the consolidated Ind
the consolidated Ind AS financial statements AS financial statements, in so far as it relates to the
represent the underlying transactions and events in a amounts and disclosures included in respect of these
manner that achieves fair presentation. subsidiaries and our report in terms of sub-sections (3)
of Section 143 of the Act, in so far as it relates to the
• Obtain sufficient appropriate audit evidence regarding
aforesaid subsidiaries is based solely on the report(s) of
the financial information of the entities or business
such other auditors.
activities within the Group to express an opinion
on the consolidated Ind AS financial statements. Certain of these subsidiaries are located outside
We are responsible for the direction, supervision and India whose financial statements and other financial
performance of the audit of the financial statements information have been prepared in accordance with
of such entities included in the consolidated Ind AS accounting principles generally accepted in their
financial statements of which we are the independent respective countries and which have been audited
auditors. For the other entities included in the by other auditors under generally accepted auditing
consolidated Ind AS financial statements, which have standards applicable in their respective countries.
been audited by other auditors, such other auditors The Company’s management has converted the financial
remain responsible for the direction, supervision statements of such subsidiaries located outside India
and performance of the audits carried out by them. from accounting principles generally accepted in their
We remain solely responsible for our audit opinion. respective countries to accounting principles generally
accepted in India. We have audited these conversion
We communicate with those charged with governance
adjustments made by the Company’s management.
of the Holding Company and such other entities
Our opinion in so far as it relates to the balances and
included in the consolidated Ind AS financial
affairs of such subsidiaries located outside India is
statements of which we are the independent auditors
based on the report of other auditors and the conversion
regarding, among other matters, the planned scope
adjustments prepared by the management of the
and timing of the audit and significant audit findings,
Company and audited by us.
including any significant deficiencies in internal control
that we identify during our audit. Our opinion above on the consolidated Ind AS
financial statements, and our report on Other Legal
We also provide those charged with governance with
and Regulatory Requirements below, is not modified
a statement that we have complied with relevant
in respect of the above matters with respect to our
ethical requirements regarding independence, and
reliance on the work done and the reports of the other
to communicate with them all relationships and
auditors and the financial statements and other financial
other matters that may reasonably be thought to
information certified by the Management.
bear on our independence, and where applicable,
related safeguards.
REPORT ON OTHER LEGAL AND REGULATORY
From the matters communicated with those charged REQUIREMENTS
with governance, we determine those matters
As required by Section 143(3) of the Act, based on our
that were of most significance in the audit of the
audit and on the consideration of report of the other
consolidated Ind AS financial statements for the
auditors on separate financial statements and the
financial year ended March 31, 2019 and are therefore
other financial information of subsidiaries, as noted in
the key audit matters. We describe these matters in
the ‘other matter’ paragraph we report, to the extent
our auditor’s report unless law or regulation precludes
applicable, that:
public disclosure about the matter or when, in
extremely rare circumstances, we determine that a (a) We/the other auditors whose report we have
matter should not be communicated in our report relied upon have sought and obtained all the
information and explanations which to the best of (g) In our opinion and based on the consideration
our knowledge and belief were necessary for the of report of other statutory auditor of the
purposes of our audit of the aforesaid consolidated subsidiary, incorporated in India, the managerial
Ind AS financial statements; remuneration for the year ended March 31, 2019
has been provided by the Holding Company and its
(b) In our opinion, proper books of account as required
subsidiary incorporated in India to their directors in
by law relating to preparation of the aforesaid
accordance with the provisions of section 197 read
consolidation of the Ind AS financial statements
with Schedule V to the Companies Act, 2013;
have been kept so far as it appears from our
examination of those books and reports of the (h) With respect to the other matters to be included
other auditors; in the Auditor’s Report in accordance with Rule 11
of the Companies (Audit and Auditors) Rules, 2014,
(c) The Consolidated Balance Sheet, the Consolidated
as amended, in our opinion and to the best of our
Statement of Profit and Loss including the
information and according to the explanations
Statement of Other Comprehensive Income,
given to us and based on the consideration of the
the Consolidated Cash Flow Statement and
report of the other auditors on separate financial
Consolidated Statement of Changes in Equity
statements as also the other financial information
dealt with by this report are in agreement with
of the subsidiaries, as noted in the ‘Other
the books of account maintained for the purpose
matter’ paragraph:
of preparation of the consolidated Ind AS
financial statements; i. The consolidated Ind AS financial statements
disclose the impact of pending litigations on
(d) In our opinion, the aforesaid consolidated Ind AS
its consolidated financial position of the Group
financial statements comply with the Accounting
in its consolidated Ind AS financial statements
Standards specified under Section 133 of the
– Refer Note 36 A to the consolidated Ind AS
Act, read with Companies (Indian Accounting
financial statements;
Standards) Rules, 2015, as amended;
ii. The Group did not have any material
(e) On the basis of the written representations
foreseeable losses in long-term contracts
received from the directors of the Holding
including derivative contracts during the year
Company as on March 31, 2019 taken on record
ended March 31, 2019;
by the Board of Directors of the Holding Company
and the reports of the statutory auditors who iii. There has been no delay in transferring
are appointed under Section 139 of the Act, of amounts, required to be transferred, to the
its subsidiary companies none of the directors Investor Education and Protection Fund by
of the Group’s companies incorporated in India the Holding Company and its subsidiary
is disqualified as on March 31, 2019 from being incorporated in India during the year ended
appointed as a director in terms of Section 164 March 31, 2019.
(2) of the Act;
For S.R. Batliboi & Co. LLP
(f) With respect to the adequacy and the operating Chartered Accountants
effectiveness of the internal financial controls ICAI Firm Registration Number: 301003E/E300005
over financial reporting with reference to these
consolidated Ind AS financial statements of the per Atul Seksaria
Holding Company and its subsidiary company, Place of Signature: Kanpur Partner
incorporated in India, refer to our separate Report Date: May 18, 2019 Membership Number: 086370
in “Annexure 1” to this report;
INHERENT LIMITATIONS OF INTERNAL FINANCIAL Ind AS financial statements were operating effectively
CONTROLS OVER FINANCIAL REPORTING WITH as at March 31,2019, based on the internal control over
REFERENCE TO THESE CONSOLIDATED IND AS financial reporting criteria established by the Holding
FINANCIAL STATEMENTS Company considering the essential components
of internal control stated in the Guidance Note on
Because of the inherent limitations of internal Audit of Internal Financial Controls Over Financial
financial controls over financial reporting with Reporting issued by the Institute of Chartered
reference to these consolidated Ind AS financial Accountants of India.
statements, including the possibility of collusion or
improper management override of controls, material
misstatements due to error or fraud may occur and OTHER MATTERS
not be detected. Also, projections of any evaluation of
Our report under Section 143(3)(i) of the Act on
the internal financial controls over financial reporting
the adequacy and operating effectiveness of the
with reference to these consolidated Ind AS financial
internal financial controls over financial reporting
statements to future periods are subject to the
with reference to these consolidated Ind AS financial
risk that the internal financial control over financial
statements of the Holding Company, insofar as it
reporting with reference to these consolidated Ind
relates to the one subsidiary company, which are
AS financial statements may become inadequate
companies incorporated in India, is based on the
because of changes in conditions, or that the degree
corresponding report of the auditor of such subsidiary,
of compliance with the policies or procedures
incorporated in India.
may deteriorate.
`/Lacs
As at As at
Notes
31 March 2019 31 March 2018
ASSETS
Non-current assets
Property, plant and equipment 2 4,50,736.64 4,41,941.59
Capital work-in-progress 2 56,175.64 10,426.52
Other Intangible assets 3 2,938.34 2,392.42
Financial assets
(i) Investments 4 4,395.34 4,135.57
(ii) Other financial assets 5 5,563.17 3,802.93
Other non-current assets 6 15,646.60 14,456.90
Total non-current assets 5,35,455.73 4,77,155.93
Current assets
Inventories 7 63,654.56 58,980.96
Financial assets
(i) Investments 8 39,431.14 7,757.62
(ii) Trade receivables 9 26,064.77 23,578.91
(iii) Cash and cash equivalents 10 31,521.99 21,133.27
(iv) Bank balances other than (iii) above 11 19,632.18 36,117.04
(v) Other financial assets 12 8,182.78 6,197.18
Current tax assets (net) 13 180.15 757.45
Other current assets 14 17,630.98 13,020.44
Assets held for sale 43 18.09 902.61
Total current assets 2,06,316.64 1,68,445.48
Total assets 7,41,772.37 6,45,601.41
EQUITY AND LIABILITIES
Equity
Equity share capital 15 7,726.83 6,992.72
Other equity 16 2,61,770.47 1,90,494.10
Equity attributable to equity holders of the J K Cement Ltd. 2,69,497.30 1,97,486.82
Total equity 2,69,497.30 1,97,486.82
Liabilities
Non-current liabilities
Financial liabilities
(i) Borrowings 17 2,43,978.83 2,57,410.51
(ii) Other financial liabilities 18 23,891.31 20,678.88
Long-term provisions 19 4,144.82 3,134.92
Deferred tax liabilities (net) 20 31,227.20 26,696.66
Other liabilities 21 8,668.22 9,232.02
Total non-current liabilities 3,11,910.38 3,17,152.99
Current liabilities
Financial liabilities
(i) Borrowings 22 23,815.56 15,646.93
(ii) Trade payables 23
(a) Total outstanding dues of micro enterprises and small enterprises 1,051.10 1,227.33
(b) Total outstanding dues of creditors other than micro enterprises and 71,392.56 65,294.16
small enterprises
(iii) Other financial liabilities 24 47,211.54 29,177.85
Other current liabilities 25 15,876.30 17,730.90
Short-term provisions 26 1,017.63 1,884.43
Total current liabilities 1,60,364.69 1,30,961.60
Total liabilities 4,72,275.07 4,48,114.59
Total equity and liabilities 7,41,772.37 6,45,601.41
Significant Accounting Policies 1
For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of
Chartered Accountants J K Cement Limited
ICAI Firm Regn. No. 301003E/E300005
`/Lacs
For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of
Chartered Accountants J K Cement Limited
ICAI Firm Regn. No. 301003E/E300005
`/Lacs
`/Lacs
Notes :
Cash and cash equivalents includes cash in hand and bank balances including Fixed Deposits.
For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of
Chartered Accountants J K Cement Limited
ICAI Firm Regn. No. 301003E/E300005
As at As at
31 March 2019 31 March 2018
Balance at the beginning of the year (Equity shares of ` 10 each issued, subscribed and fully 6,992.72 6,992.72
paid up)
Changes in equity share capital during the year 734.11 -
Balance at the end of the reporting period (Equity shares of ` 10 each issued, subscribed and 7,726.83 6,992.72
fully paid up)
Surplus
Retained Non-
earnings controlling
Securities Debenture
General (including Total
premium redemption Total interests
reserve Other
account reserve
Comprehensive
Income)
Balance at 31 March 2017 25,988.60 9,955.10 74,325.02 53,807.11 1,64,075.83 398.74 1,64,474.57
Dividend on 3% preference shares 2,385.84 2,385.84 2,385.84
Profit for the year - - - 28,957.50 28,957.50 (398.74) 28,558.76
Other comprehensive income/ (loss) - - - 1,807.95 1,807.95 1,807.95
for the year
Total comprehensive income for the - - - 30,765.45 30,765.45 (398.74) 30,366.71
year
Transfer to/(from) general reserve - 6,000.00 (6,000.00) - -
Transfer to/(from) debenture - 9.40 (9.40) - -
redemption reserve
Dividend paid - (5,594.18) (5,594.18) - (5,594.18)
Dividend distribution tax - (1,138.84) (1,138.84) - (1,138.84)
Balance at 31 March 2018 25,988.60 9,964.50 80,325.02 74,215.98 1,90,494.10 - 1,90,494.10
Profit for the year - - - 26,363.40 26,363.40 - 26,363.40
Other comprehensive income for the - - - 2,052.60 2,052.60 2,052.60
year
Total comprehensive income for the - - - 28,416.00 28,416.00 - 28,416.00
year
Adjustments - - - 1,599.42 1,599.42 - 1,599.42
Transfer to/(from) general reserve - - 10,000.00 (10,000.00) - - -
Transfer to/(from) debenture - (87.60) - 87.60 - -
redemption reserve
Issue proceeds 50,344.58 - - - 50,344.58 - 50,344.58
Share issue expenses (653.52) - - - (653.52) - (653.52)
Dividend paid - - - (6,992.73) (6,992.73) - (6,992.73)
Dividend distribution tax - - - (1,437.38) (1,437.38) - (1,437.38)
Balance at 31 March 2019 75,679.66 9,876.90 90,325.02 85,888.89 2,61,770.47 - 2,61,770.47
For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of
Chartered Accountants J K Cement Limited
ICAI Firm Regn. No. 301003E/E300005
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
1. CORPORATE INFORMATION
These are Group’s separate
financial statements.
I. Reporting Entity
The consolidated financial statement
These financial statements were
comprise statement of JK Cement limited, authorised for issue by the Board of
its subsidiaries and joint venture operation Directors on 18.05.2019.
(collectively, the group) for the year ended 31 (a) The assets and liabilities of foreign operations
March 2019. J K Cement Limited (“J K Cement are translated into INR at the rate of exchange
Limited” or “the Company” or the “Parent”) prevailing at the reporting date and their
is a public limited company domiciled in statements of profit or loss are translated
India and has its registered office at Kamla at exchange rates prevailing at the dates
Tower, Kanpur, Uttar Pradesh – 208 001. J K of the transactions. For practical reasons,
Cement Limited’s equity shares are listed on the group uses an average rate to translate
National Stock Exchange and Bombay Stock income and expense items, if the average rate
Exchange in India. The Company is engaged in approximates the exchange rates at the dates
the manufacturing and selling of Cement and of the transactions. The exchange differences
Cement related products. arising on translation for consolidation are
II. Significant Accounting Policies recognised in OCI. On disposal of a foreign
The Group has consistently applied the operation, the component of OCI relating to
following accounting policies to all periods that particular foreign operation is recognised
presented in the financial statements. in profit or loss.
Country of Holding as on
Name of the Company Nature of Company Date of period consolidation
Incorporation 31.03.2018
J K Cement (Fujairah)FZC Subsidiary U.A.E. 100% Calendar year December 2018
J K Cement Works (Fujairah)FZC Fellow Subsidiary U.A.E. 90% Calendar year December 2018
Jaykaycem Central Ltd Subsidiary India 100% FY 2018-2019
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
5. Classification of Assets and Liabilities as lives, then they are accounted for as a
Current and Non-Current separate items (major components) of
The Group presents assets and liabilities property, plant and equipment.
in the balance sheet based on current/
Any gain/ (loss) on disposal of property, plant
non-current classification. An asset is treated
and equipment is recognized in statement of
as current when it is:
profit and loss.
• E
xpected to be realised or intended
Subsequent Measurement
to be sold or consumed in normal
Subsequent expenditure is capitalised only
operating cycle.
if it is probable that the future economic
• H
eld primarily for the purpose of trading benefits associated with the expenditure will
flow to the Group.
• E
xpected to be realised within twelve
months after the reporting period, or Expenditure during construction period:
Expenditure/Income during construction
• C
ash and cash equivalent unless restricted
period (including financing cost related to
from being exchanged or used to settle a
borrowed funds for construction or acquisition
liability for at least twelve months after the
of qualifying PPE) is included under Capital
reporting period.
Work-in-Progress, and the same is allocated
All other assets are classified as non-current. to the respective PPE on the completion of
their construction. Advances given towards
An liability is treated as current when:
acquisition or construction of PPE outstanding
• I
t is expected to be settled in normal at each reporting date are disclosed as capital
operating cycle advances under “Other non-current assets”.
• I
t is held primarily for the Depreciation
purpose of trading
Depreciation on Property, plant and equipment
(PPE) is calculated using the straight-line
• I
t is due to be settled within twelve months
method (SLM) to allocate their cost, net of
after the reporting period, or
their residual values, over their estimated
• T
here is no unconditional right to defer the useful lives (determined by the management
settlement of the liability for at least twelve based on technical estimates). The assets
months after the reporting period residual values and useful lives are reviewed
and adjusted if appropriate, at the end of each
All other liabilities are classified
reporting period.
as non-current.
Leasehold land is being amortised over the
Deferred tax liabilities are classified as
period of lease tenure.
non-current liabilities.
The management estimates the useful lives
The operating cycle is the time between the
for the property, plant and equipment, except
acquisition of the assets for processing and
leasehold land as follows –
their realisation in cash and cash equivalents.
The Group has identified twelve months as its
operating cycle. Useful Life
Tangible Assets
(In years)
6. Property, plant and equipment Factory building (including roads) 03-30 Years
Recognition and measurement Non factory building 05-60 Years
Items of property, plant and equipment are (including roads)
Plant and machinery 05-40 Years
stated at cost less accumulated depreciation Vehicles 08 Years
and accumulated impairment loss, if any. Furniture and fixtures 10 Years
The cost of assets comprises of purchase Office equipment 05 Years
price and directly attributable cost of bringing Railway sidings 15 Years
the assets to working condition for its
The useful lives of certain plant and
intended use including borrowing cost and
machineries have been considered lower /
incidental expenditure during construction
higher than 15 years. These lives are lower
incurred upto the date when the assets
/ higher those indicated in schedule II of
are ready to use. Capital work-in -progress
Companies Act, 2013.
includes cost of assets at sites, construction
expenditure and interest on the
Freehold mining land is depleted according to
funds deployed. the ‘units of production’ method by reference
to the ratio of extraction of limestone in the
If significant parts of an item of property,
year to the related reserves of limestone.
plant and equipment have different useful
Leasehold land is amortized on a straight line Classifications
basis over the primary lease period.
The Group classifies its financial assets as
subsequently measured at either amortised
Limestone reserves are estimated by the
cost or fair value through other comprehensive
management based on the internal best
income (FVOCI) or fair value through Profit and
estimates or independent expert’s valuation as
Loss Account (FVTPL) on the basis of either
considered appropriate. These estimates are
reviewed at least annually.
Company’s business model for managing
the financial assets or Contractual cash
The management believes that the estimated
flow characteristics of the financial
useful lives are realistic and reflect
assets. at either amortised cost or fair
approximation of the period over which the
value depending
assets are likely to be used.
Business model assessment
7. Intangible assets
The Group makes an assessment of the
Intangible Assets are stated at cost less
objective of a business model in which an
accumulated amortization and impairment
asset is held at an instrument level because
loss, if any. Intangible assets are amortized on
this best reflects the way the business
straight line method basis over the estimated
is managed and information is provided
useful life. Estimated useful life of the
to management.
Software is considered as 3 years.
Debt instruments at amortised cost
Subsequent expenditure is capitalised only
A financial asset is measured at amortised
if it is probable that the future economic
cost only if both of the following
benefits associated with the expenditure will
conditions are met:
flow to the Group.
- I
t is held within a business model whose
Amortisation methods, useful lives and
objective is to hold assets in order to collect
residual value are reviewed at each financial
contractual cash flows.
year end and changes, if any, are accounted
for prospectively. - T
he contractual terms of the financial asset
represent contractual cash flows that are
Amortisation of Mining rights over the period
solely payments of principal and interest.
or respective Mining Agreement.
After initial measurement, such financial
Amortisation of Mining Reserve: On the basis
assets are subsequently measured at
of material extraction (proportion of material
amortised cost using the Effective Interest
extracted per annum to total mining reserve)
Rate (‘EIR’) method. Amortised cost is
8. Financial instruments calculated by taking into account any discount
A financial instrument is any contract that or premium on acquisition and fees or costs
gives rise to asset of one entity and a financial that are an integral part of the EIR. The EIR
liability or equity instrument of another entity. amortisation is included as finance income
Financial instruments also include derivative in the profit or loss. The losses arising
contracts such as foreign currency forward from impairment are recognised in the
contracts, cross currency interest rate swaps, profit or loss.
interest rate swaps and currency options; and
Debt instrument at fair value through Other
embedded derivatives in the host contract.
Comprehensive Income (FVOCI)
Financial Assets
Debt instruments with contractual cash flow
Initial recognition and measurement characteristics that are solely payments of
All financial assets are recognised initially at principal and interest and held in a business
fair value plus, in the case of financial assets model whose objective is achieved by
are not recorded at fair value through profit or both collecting contractual cash flows and
loss, transaction costs that are attributable to selling financial assets are classified to be
the acquisition of the financial assets. measured at FVOCI.
Purchases or sales of financial assets that
Debt instrument at fair value through profit
require delivery of assets within a time frame and loss (FVTPL)
established by regulation or convention in
Any debt instrument, which does not meet the
the market place (regular way trades) are criteria for categorization as at amortized cost
recognized on the trade date, i.e., the date or as at FVOCI, is classified as at FVTPL.
that the Group commits to purchase or
In addition, the Group may elect to classify
sell the asset.
a debt instrument, which otherwise meets
amortized cost or FVOCI criteria, as at FVTPL.
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
However, such election is allowed only if doing amount of the asset and the maximum
so reduces or eliminates a measurement amount of consideration that the Group could
or recognition inconsistency (referred to as be required to repay.
‘accounting mismatch’).
On derecognition of a financial asset, the
Debt instruments included within the FVTPL difference between the carrying amount of
category are measured at fair value with all the asset (or the carrying amount allocated to
changes recognized in the profit and loss. the portion of the asset derecognised) and the
sum of (i) the consideration received (including
Equity Instruments
any new asset obtained less any new liability
All equity instruments in scope of Ind AS
assumed) and (ii) any cumulative gain or loss
109, Financial Instruments are measured
that had been recognised in OCI is recognised
at fair value. On initial recognition an
in profit or loss.
equity investment that is not held for
trading, the Group may irrevocably elect Impairment of financial assets
to present subsequent changes in fair
The Group assesses on a forward looking
value in OCI. This election is made on an basis the expected credit losses associated
investment-by-investment basis. with its assets carried at amortised cost The
impairment methodology applied depends on
All other Financial Instruments are classified
whether there has been a significant increase
as measured at FVTPL.
in credit risk.
Derecognition of financial assets
With regard to trade receivable, the Group
A financial asset (or, where applicable, a
applies the simplified approach as permitted
part of a financial asset or part of a group
by Ind AS 109, Financial Instruments, which
of similar financial assets) is primarily
requires expected lifetime losses to be
derecognised (i.e. removed from the Group’s
recognised from the initial recognition of the
balance sheet) when:
trade receivables.
- T
he rights to receive cash flows from the
Financial liabilities
asset have expired, or
Initial recognition and measurement
- T
he Group has transferred its rights to
Financial liabilities are classified, at initial
receive cash flows from the asset or has recognition, as financial liabilities at fair
assumed an obligation to pay the received value through profit or loss, amortised cost,
cash flows in full without material delay as appropriate.
to a third party under a ‘pass-through’
All financial liabilities are recognised initially at
arrangement; and either (a) the Group
fair value and, in the case of amortised cost,
has transferred substantially all the
net of directly attributable transaction costs.
risks and rewards of the asset, or (b)
the Group has neither transferred nor Subsequent measurement
retained substantially all the risks and
The measurement of financial liabilities
rewards of the asset, but has transferred depends on their classification, as
control of the asset described below:
When the Group has transferred its rights
Financial Liabilities measured at amortised
to receive cash flows from an asset or has cost
entered into a pass-through arrangement,
After initial recognition, interest-bearing loans
it evaluates if and to what extent it has and borrowings are subsequently measured
retained the risks and rewards of ownership. at amortised cost using the EIR method.
When it has neither transferred nor retained Gains and losses are recognised in profit or
substantially all of the risks and rewards loss when the liabilities are derecognised as
of the asset, nor transferred control of the well as through the EIR amortisation process.
asset, the Group continues to recognize the
Amortised cost is calculated by taking
transferred asset to the extent of the Group’s
into account any discount or premium on
continuing involvement. In that case, the
acquisition and fees or costs that are an
Group also recognizes an associated liability.
integral part of the EIR. The EIR amortisation is
The transferred asset and the associated
included as finance costs in the statement of
liability are measured on a basis that
profit and loss.
reflects the rights and obligations that the
Group has retained.
Financial liabilities at fair value through profit
or loss
Continuing involvement that takes the form
Financial liabilities at fair value through profit
of a guarantee over the transferred asset is
or loss include financial liabilities held for
measured at the lower of the original carrying
trading and financial liabilities designated an activity that is significant to its operations.
upon initial recognition as at fair value through If the Group reclassifies financial assets, it
profit or loss. Financial liabilities are classified applies the reclassification prospectively from
as held for trading if they are incurred for the the reclassification date which is the first
purpose of repurchasing in the near term. day of the immediately next reporting period
following the change in business model.
Gains or losses on liabilities held for trading
The Group does not restate any previously
are recognised in the profit or loss.
recognized gains, losses (including impairment
Financial liabilities designated upon initial gains or losses) or interest.
recognition at fair value through statement
9. Inventories
of profit and loss are designated as such
Inventories are valued as follows:
at the initial date of recognition, and only
if the criteria in Ind AS 109 are satisfied.
Raw materials, Lower of cost and net realisable
For liabilities designated at FVTPL, fair value packing value. Cost is determined on
gains/losses attributable to changes in own materials, a moving weighted average
credit risk are recognized in OCI. These gains/ stores and basis. Materials and other items
loss are not subsequently transferred to spares held for use in the production
P&L. However, the Group may transfer the of inventories are at cost not
cumulative gain or loss within equity. All other written down below costs, if
changes in fair value of such liability are finished goods in which they will
recognised in the statement of profit or loss. be incorporated are expected to
be sold at or above cost
Financial guarantee contracts Work-in- Lower of cost and net realisable
Financial guarantee contract issued by the progress, value. Cost includes direct
group is contract that require a payment to finished goods materials, labour and a
be made to reimburse the holder for a loss and traded proportion of manufacturing
it incurs because the specified debtor fails goods overheads. Cost of finished goods
to make a payment when due in accordance includes excise duty, wherever
with the terms of a debt instrument. applicable.
Financial guarantee contracts are recognised Waste At Net Realisable Value
initially as a liability at fair value, adjusted
for transaction costs that are directly
Net realisable value is the estimated selling
attributable to the issuance of the guarantee. price in the ordinary course of business,
Subsequently, the liability is measured at less estimated costs of completion and
the higher of the amount of loss allowance to make the sale.
determined as per impairment requirements
10. Provisions, Contingent Liabilities and Assets
of Ind AS 109 and the transaction amount
Provisions are recognised when the Group has
recognised less cumulative amortisation.
a present legal or constructive obligation as
Derecognition of financial liabilities a result of past events, it is probable that an
The Group derecognises a financial liability outflow of resources will be required to settle
when its contractual obligations are the obligation and the amount can be reliably
discharged or cancelled, or expire. estimated. Provisions are not recognised for
future operating losses.
Reclassification of financial assets
The Group determines classification of
Provisions are measured at the present
financial assets and liabilities on initial value of management’s best estimate of the
recognition. After initial recognition, no expenditure required to settle the present
reclassification is made for financial assets obligation at the end of the reporting period.
which are equity instruments and financial The discount rate used to determine the
liabilities. For financial assets which are debt present value is a pre-tax rate that reflects
instruments, a reclassification is made only current market assessments of the time
if there is a change in the business model value of money and the risks specific to
for managing those assets. Changes to the the liability. The increase in the provision
business model are expected to be infrequent. due to the passage of time is recognised as
The Group ’s senior management determines interest expense.
change in the business model as a result
Where it is not probable that an outflow of
of external or internal changes which are
economic benefits will be required or the
significant to the Group ’s operations.
amount cannot be estimated reliably, the
Such changes are evident to external parties.
obligation is disclosed as a contingent liability,
A change in the business model occurs when
unless the probability of outflow of economic
the Group either begins or ceases to perform
benefits is remote. Possible obligations,
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
whose existence will only be confirmed by the of distribution, price to sell the goods and
occurrence or non-occurrence of one or more bears the risks of obsolescence and loss
future uncertain events not wholly within the in relation to the goods. A receivable is
control of the Group, are also disclosed as recognised by the Group when the goods are
contingent liabilities unless the probability of delivered to the customer or their agent as
outflow of economic benefits is remote. this represents the point in time at which the
right to consideration becomes unconditional,
Contingent Assets are not recognized in the
as only the passage of time is required before
financial statements. However, when the
payment is due. The Group considers the
realization of income is virtually certain, then
effects of variable consideration, the existence
the related asset is not a contingent asset and
of significant financing components, noncash
its recognition is appropriate.
consideration, and consideration payable to the
Mines Restoration Expenditure customer (if any).
The expenditure on restoration of the
Variable consideration
mines based on technical estimates by
If the consideration in a contract includes
Internal/External specialists is recognized in
a variable amount, estimates the amount
the accounts. The total estimated restoration
of consideration to which it will be entitled
expenditure is apportioned over the estimated
in exchange for transferring the goods to
quantity of mineral resources (likely to be made
the customer. The variable consideration
available) and provision is made in the accounts
is estimated at contract inception and
based on minerals mined during the year.
constrained until it is highly probable that a
11. Revenue Recognition significant revenue reversal in the amount of
The Group derives revenues primarily from sale cumulative revenue recognised will not occur
of cement and cement related products. when the associated uncertainty with the
variable consideration is subsequently resolved.
Ind AS 115 “Revenue from Contracts with
The Group recognizes changes in the estimated
Customers” provides a control-based revenue
amount of variable consideration in the period
recognition model and provides a five step
in which the change occurs. Some contracts
application approach to be followed for
for the sale of goods provide customers with
revenue recognition.
volume rebates and pricing incentives, which
• I
dentify the contract(s) with a customer; give rise to variable consideration.
• Identify the performance obligations;
The Group provides retrospective volume
rebates and pricing incentives to certain
• Determine the transaction price;
customers once the quantity of products
• A
llocate the transaction price to the purchased during the period exceeds
performance obligations; a threshold specified in the contract.
Rebates are offset against amounts payable
• R
ecognise revenue when or as an entity
by the customer. To estimate the variable
satisfies performance obligation.
consideration for the expected future rebates,
Revenue from contracts with customers is the Company applies the most expected value
recognised when control of the goods or method for contracts. The selected method
services are transferred to the customer at that best predicts the amount of variable
an amount that reflects the consideration to consideration is primarily driven by the number
which the Company expects to be entitled of volume thresholds contained in the contract.
in exchange for those goods or services. The Group then applies the requirements on
The Company has generally concluded that it constraining estimates of variable consideration
is the principal in its revenue arrangements, and recognises a refund liability for the
except for the agency services, because expected future rebates.
it typically controls the goods or services
Contract balances
before transferring them to the customer.
Trade receivables
Revenue excludes amounts collected on behalf
A receivable represents the Group’s right to an
of third parties.
amount of consideration that is unconditional
Sale of goods (i.e., only the passage of time is required
For sale of goods, revenue is recognised when before payment of the consideration is due).
control of the goods has transferred at a Refer to accounting policies of financial assets
point in time i.e. when the goods have been Financial instruments – initial recognition and
delivered to the specific location (delivery). subsequent measurement.
Following delivery, the customer has full
discretion over the responsibility, manner
Contract liabilities
Government grants that compensate the
A contract liability is the obligation to transfer Group for expenses incurred are recognised
goods or services to a customer for which in profit or loss as income on a systematic
the Company has received consideration basis in the periods in which the expense
(or an amount of consideration is due) is recognised.
from the customer. If a customer pays
Government grants relating to the purchase of
consideration before the Company transfers
property, plant and equipment are included in
goods or services to the customer, a contract
non-current liabilities as deferred income and
liability is recognised when the payment is
are credited to profit or loss on a straight-line
made or the payment is due (whichever is
basis over the expected lives of the related
earlier). Contract liabilities are recognised
assets and presented within other income.
as revenue when the Company performs
under the contract 13. Employee benefits
(A) Short term employee benefits
Cost to obtain a contract
Short-term employee benefits are expensed
The Group pays sales commission to its selling
as the related service is provided. A liability
agents for each contract that they obtain for
is recognised for the amount expected to
the Company. The Group has elected to apply
be paid if the Group has a present legal or
the optional practical expedient for costs to
constructive obligation to pay this amount
obtain a contract which allows the Group
as a result of past service provided by
to immediately expense sales commissions
the employee and the obligation can be
(included in advertisement and sales
estimated reliably.
promotion expense under other expenses)
because the amortization period of the asset (B) Defined contribution plans
that the Group otherwise would have used is Obligations for contributions to defined
one year or less. contribution plans are expensed as the related
service is provided. The Group has following
Costs to fulfil a contract i.e. freight, insurance
defined contribution plans:
and other selling expenses are recognized
as an expense in the period in which related a) Provident fund
revenue is recognised
b) Superannuation scheme
Critical judgements
(C) Defined benefit plans
The Group’s contracts with customers include
The Group‘s net obligation in respect of
promises to transfer goods to the customers.
defined benefit plans is calculated separately
Judgement is required to determine
for each plan by estimating the amount of
the transaction price for the contract.
future benefit that employees have earned
The transaction price could be either a fixed
in the current and prior periods, discounting
amount of customer consideration or variable
that amount and deducting the fair value of
consideration with elements such as schemes,
any plan assets.
incentives, cash discounts, etc. The estimated
amount of variable consideration is adjusted in
The calculation of defined benefit obligations
the transaction price only to the extent that it is performed annually by a qualified actuary
is highly probable that a significant reversal in using the projected unit credit method.
the amount of cumulative revenue recognised When the calculation results in a potential
will not occur and is reassessed at the end of asset for the Group, the recognised asset
each reporting period. is limited to the present value of economic
benefits available in the form of any future
Costs to obtain a contract are generally
refunds from the plan or reductions in
expensed as incurred. The assessment of this
future contributions to the plan. To calculate
criteria requires the application of judgement,
the present value of economic benefits,
in particular when considering if costs
consideration is given to any applicable
generate or enhance resources to be used to
minimum funding requirements.
satisfy future performance obligations and
whether costs are expected to be recovered.
Remeasurement of the net defined benefit
liability, which comprise actuarial gains and
12. Government Grants and Subsidies
losses, the return on plan assets (excluding
Grants from the government are recognised
interest) and the effect of the asset ceiling
at their fair value where there is a reasonable
(if any, excluding interest), are recognised
assurance that the grant will be received
immediately in Other Comprehensive Income.
and the Group will comply with all
Net interest expense (income) on the net
attached conditions.
defined liability (assets) is computed by
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
applying the discount rate, used to measure functional currency at the exchange rate at
the net defined liability (asset), to the net the reporting date. Non-monetary assets
defined liability (asset) at the start of the and liabilities that are measured at fair
financial year after taking into account any value in a foreign currency are translated
changes as a result of contribution and into the functional currency at the exchange
benefit payments during the year. Net interest rate when the fair value was determined.
expense and other expenses related to defined Non-monetary items that are measured based
benefit plans are recognised in profit or loss. on historical cost in a foreign currency are
translated at the exchange rate at the date of
When the benefits of a plan are changed
the transaction. Foreign currency differences
or when a plan is curtailed, the resulting
are generally recognised in profit or loss.
change in benefit that relates to past
service or the gain or loss on curtailment (16)Borrowing Cost
is recognised immediately in profit or loss. Borrowing costs directly attributable to the
The Group recognises gains and losses on the acquisition, construction or production of
settlement of a defined benefit plan when the an asset that necessarily takes a substantial
settlement occurs. period of time to get ready for its intended
use or sale are capitalised as part of the cost
The Group has following defined benefit plans:
of the asset. All other borrowing costs are
(i) Gratuity expensed in the period in which they occur.
The Group provides for its gratuity liability Borrowing costs consist of interest and other
based on actuarial valuation of the gratuity costs that an entity incurs in connection
liability as at the Balance Sheet date, with the borrowing of funds. Borrowing cost
based on Projected Unit Credit Method, also includes exchange differences to the
carried out by an independent actuary and extent regarded as an adjustment to the
contributes to the Gratuity Trust fund formed borrowing costs.
by the Group. The contributions made are
(17) Taxes
recognized as plan assets. The defined benefit
Tax expense comprises current and deferred
obligation as reduced by fair value of plan
tax. It is recognised in profit or loss except
assets is recognized in the Balance Sheet.
to the extent that it relates to items
Re-measurements are recognized in the Other
recognised directly in equity or in Other
Comprehensive Income, net of tax in the year
Comprehensive Income
in which they arise.
i) Current tax
(D) Other long-term employee benefits
Current tax comprises the expected
The Group’s net obligation in respect of
tax payable or receivable on the
long-term employee benefits is the amount
taxable income or loss for the year
of future benefit that employees have
and any adjustment to the tax payable
earned in return for their service in the
or receivable in respect of previous
current and prior periods. That benefit is
years. It is measured using tax rates
discounted to determine its present value.
enacted or substantively enacted at the
Re-measurements are recognised in profit or
reporting date.
loss in the period in which they arise.
Current tax assets and liabilities are offset
The Group has following long term
only if, the Group:
employment benefit plans:
a)
Has a legally enforceable right to set
(i) Leave Liability
off the recognised amounts; and
Leave encashment is payable to eligible
employees at the time of retirement. b)
Intends either to settle on a net
The liability for leave encashment, which is basis, or to realise the asset and
a defined benefit scheme, is provided based settle the liability simultaneously.
on actuarial valuation as at the Balance Sheet
ii) Deferred tax
date, based on Projected Unit Credit Method,
Deferred tax is recognised in respect
carried out by an independent actuary.
of temporary differences between the
(15) Foreign currency transactions carrying amounts of assets and liabilities
Transactions in foreign currencies are for financial reporting purposes and the
translated into the Group ’s functional amounts used for taxation purposes.
currency at the exchange rates at the dates of Deferred tax is not recognised for
the transactions. temporary differences on the initial
recognition of assets or liabilities in
Monetary assets and liabilities denominated
a transaction that is not a business
in foreign currencies are translated into the
combination and that affects neither inflows of other assets or Cash Generating
accounting nor taxable profit nor loss. Units (‘CGUs’).
Deferred tax assets are recognised for
The recoverable amount of an asset or CGU is
unused tax losses, unused tax credits the greater of its value in use and its fair value
and deductible temporary differences to less costs to sell. Value in use is based on the
the extent that it is probable that future estimated future cash flows, discounted to
taxable profits will be available against their present value using a pre-tax discount
which they can be used. Deferred tax rate that reflects current market assessments
assets are reviewed at each reporting date of the time value of money and the risks
and are reduced to the extent that it is specific to the asset or CGU.
no longer probable that the related tax
An impairment loss is recognised if the
benefit will be realised; such reductions
carrying amount of an asset or CGU exceeds
are reversed when the probability of
its recoverable amount.
future taxable profits improves.
Impairment loss in respect of assets other
Unrecognized deferred tax assets are
than goodwill is reversed only to the extent
reassessed at each reporting date and
that the assets carrying amount does not
recognised to the extent that it has
exceed the carrying amount that would
become probable that future taxable
have been determined, net of depreciation
profits will be available against which
or amortisation, if no impairment loss had
they can be used.
been recognised.
Deferred tax is measured at the tax
(19) Segment Reporting
rates that are expected to be applied to
Operating segments are reported in a manner
temporary differences when they reverse,
consistent with the internal reporting provided
using tax rates enacted or substantively
to the chief operating decision maker.
enacted at the reporting date.
The board of directors of the Group has
The measurement of deferred tax reflects
been identified as being the chief operating
the tax consequences that would follow
decision maker by the Management of
from the manner in which the Group
the Group. Refer note 37 for segment
expects, at the reporting date, to recover
information presented.
or settle the carrying amount of its assets
and liabilities. (20) Cash and cash equivalents
Cash and cash equivalents comprise cash at
The carrying amount of deferred tax asset
bank and on hand and short-term deposits
is reviewed on each reporting date.
with original maturities of three months or
Deferred tax assets and liabilities are less that are readily convertible to known
offset only if: amounts of cash and which are subject to an
a) The entity has a legally enforceable insignificant risk of changes in value.
right to set off current tax assets
(21) Leases
against current tax liabilities; and
Leases of property, plant and equipment
b)
The deferred tax assets and the where the Group, as lessee, has substantially
deferred tax liabilities relate to all the risks and rewards of ownership are
income taxes levied by the same classified as finance leases. Finance leases are
taxation authority on the same capitalised at the lease’s inception at the fair
taxable entity. value of the leased property or, if lower, the
present value of the minimum lease payments.
(18) Impairment of non-financial assets
The corresponding rental obligations, net of
At each reporting date, the Group reviews
finance charges, are included in borrowings
the carrying amounts of its non-financial
or other financial liabilities as appropriate.
assets (other than inventories and deferred
Each lease payment is allocated between the
tax assets) to determine whether there is
liability and finance cost. The finance cost is
any indication on impairment. If any such
charged to the profit or loss over the lease
indication exists, then the asset’s recoverable
period so as to produce a constant periodic
amount is estimated.
rate of interest on the remaining balance of
For impairment testing, assets are grouped the liability for each period.
together into the smallest group of assets
Leases in which a significant portion of
that generates cash inflows from continuing
the risks and rewards of ownership are not
use that are largely independent of the cash
transferred to the Group i.e. amount is not
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
significant for revenue or lease paid is below (23) Earnings Per Share (EPS)
than one year or such lease arrangements are Basic earnings per share are computed by
directly charged to revenue mainly godown dividing the profit for the year by the weighted
or official lease accommodation are charged average number of equity shares outstanding
under Rent Head- as lessee are classified during the period. Diluted earnings per shares
as operating leases. Payments made under is computed by dividing the profit for the year
operating leases (net of any incentives by the weighted average number of equity
received from the lessor) are charged to shares considered for deriving basic earnings
profit or loss on a straight-line basis over the per shares and also the weighted average
period of the lease unless the payments are number of equity shares that could have
structured to increase in line with expected been issued upon conversion of all dilutive
general inflation to compensate for the potential equity shares.
lessor’s expected inflationary cost increases.
(22) Exceptional Item:
Items of income or expense of non-routine
are presented separately when their nature
and amount of such significance and is
relevant to an understanding of the entity’s
financial performance.
190
`/Lacs
Tangible Assets
Freehold land 28,950.37 7,439.70 138.20 (0.01) 36,251.86 - - - - 28,950.37 36,251.86
Building 82,870.60 1,901.43 10.91 2,073.16 86,834.28 16,497.32 3,773.80 0.71 202.44 20,472.85 66,373.28 66,361.43
Plant and 4,41,388.62 13,820.28 887.78 6,820.58 4,61,141.70 1,20,906.74 17,735.76 448.54 682.02 1,38,875.98 3,20,481.88 3,22,265.72
equipment (i & iv)
Vehicles 4,095.32 938.05 499.69 56.66 4,590.34 2,067.65 476.20 368.15 27.23 2,202.93 2,027.67 2,387.41
Furniture and 3,892.84 282.99 0.40 (22.48) 4,152.95 2,393.18 332.87 0.03 2.75 2,728.77 1,499.66 1,424.18
fixtures
Office Equipment 517.94 73.85 16.22 1.59 577.16 303.48 73.46 14.91 1.34 363.37 214.46 213.79
Railway sidings 10,542.36 - 60.02 - 10,482.34 2,446.33 690.83 12.67 0.03 3,124.52 8,096.03 7,357.82
Rolling stock 89.43 - - - 89.43 72.04 8.15 - - 80.19 17.39 9.24
Other assets 626.12 136.40 (9.58) 72.79 844.89 409.42 76.27 (4.27) 13.49 503.45 216.70 341.44
Lease hold Land (iii) 17,452.01 641.77 - - 18,093.78 3,387.86 627.17 - (44.99) 3,970.04 14,064.15 14,123.74
Total 5,90,425.61 25,234.47 1,603.64 9,002.29 6,23,058.73 1,48,484.02 23,794.51 840.74 884.31 1,72,322.10 4,41,941.59 4,50,736.64
Capital work-in- 10,426.52 56,723.24 11,025.88 51.75 56,175.63 - - - - - 10,426.52 56,175.64
progress(ii)
Total 6,00,852.13 81,957.71 12,629.52 9,054.04 6,79,234.37 1,48,484.02 23,794.51 840.74 884.31 1,72,322.10 4,52,368.11 5,06,912.28
(31st March 2018 : ` 812.29 lacs) and net block of ` 2,164.61 lacs (31st March 2018 :` 2,270.15 lacs)
(iv) Property, plant & equipment pledged as security: Refer note 17 for information on property, plant & equipment pledged as security by the
company.
(v) The title deeds of immovable properties included in property, plant and equipment are held in the name of the Company except for 1 case of
leasehold land and 4 cases of freehold land amounting to gross block of ` 1,353.07 lacs (net block: ` 70.42 lacs) and gross block of ` 225.64 lacs
(net block: ` 225.64 lacs) respectively as at 31st March, 2019 for which title deeds are in the name of the erstwhile company that merged with the
Company pursuant to a scheme of amalgamation and arrangement as approved by the honourable High Court in earlier years.
(vi) Assets related to thermal power plant and other DG sets at Rajasthan location are decapitalised and kept for final disposal refer note no 45 & 46.
3. OTHER INTANGIBLE ASSETS
`/Lacs
Other Intangible
Assets
Computer Software 840.60 93.12 0.01 933.73 403.13 251.30 (48.46) - 702.89 437.47 230.84
Minning Rights 2,069.75 674.32 - 216.39 2,960.46 114.80 82.31 - 55.85 252.96 1,954.95 2,707.50
Total 2,910.35 767.44 - 216.40 3,894.19 517.93 333.61 (48.46) 55.85 955.85 2,392.42 2,938.34
World of J.K. Cement
191
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
`/Lacs
As at As at
31 March 2019 31 March 2018
4. Non-Current Investments
A. Investment in equity instruments (fully paid-up)
Unquoted (at FVTPL)
- 8000 (31st March 2018 : 8000) equity shares of ReNew Wind Energy AP (Pvt.) Ltd. (Face 8.00 8.00
value ` 10 each)
- 3140101(31st March 2018 : 3140101) equity shares of VS Legnite Power Pvt. Ltd. (Face - -
value ` 10) ##
B. Investment in preference shares (fully paid up) Unquoted (at FVTPL)
- 2785552(31st March 2018 : 2785552) 0.01% cumulative redeemable Preference - -
shares in VS Legnite Power Pvt. Ltd. (Face value ` 10) ##
C. Investment In Mutual Fund (Quoted)(at FVTPL)
5000000 (31st March 2018:5000000) HDFC fmp 1302D Sep2016(1)Regular-Growth 606.90 569.69
-Series-37 Maturity date2020
5000000 (31st March 2018:5000000) HDFC fmp 1188D Mar-2017(1)-Regular-Growth- 576.57 540.32
Series38- Maturity date-29-6-2020
5000000 (31st March 2018:5000000) “UTI FITF Series XXVII - II (1161 days)” 560.10 522.56
5000000 (31st March 2018:5000000) ICICI Prudential Fixed Maturity Plan Series 535.66 508.53
82-1187 Days
5000000 (31st March 2018:5000000) ICICI Prudential Fixed Maturity Plan Series 535.01 501.51
82-1136 Days
1000000 (31st March 2018:Nil)Union Capital Protection Oriented Fund Series 108.05 -
8 (Maturity -11.09.20)
D. Investments in Bonds(Quoted) (at FVTPL)
50 (31st March 2018:50) State bank of India SR-III 8.39% BD perpetual Bonds, Face value 489.64 494.15
per Bond ` 1000000 purchased @991285
50 (31st March 2018:50) State bank of India SR-II 8.75% BD perpetual Bonds, Face value 493.73 499.44
per Bond ` 1000000 purchased @1007773
50 (31st March 2018:50) Punjab National Bank SR- VIII, 8.95% BD perpetual Bonds, Face 481.68 491.37
value per Bond ` 1000000 purchased @1006175
4,395.34 4,135.57
Aggregate amount of market value of quoted investment 4,387.34 4,127.57
Aggregate amount of unquoted investment 8.00 8.00
## The fair value of investment is Nil (31 March 2018: Nil).
`/Lacs
As at As at
31 March 2019 31 March 2018
5. Other Non-Current Financial assets
(unsecured, considered good)
Fixed Deposits* 1,450.81 563.76
Vehicle Loan Recoverable 196.45 143.41
Security Deposits 3,915.91 3,095.76
5,563.17 3,802.93
*
Non Current Fixed Deposits includes deposit of ` 1394.42 Lacs (31 March 2018 : ` 27.16 Lacs) pledged against overdraft /other
commitments.
No loans due by directors or other officers of the Company or any of them either severally or jointly with any other
persons or amounts due by firms or private companies respectively in which any director is a partner or a director
or a member.
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
`/Lacs
As at As at
31 March 2019 31 March 2018
6. Other non-current assets
Capital advances 11,694.86 10,579.16
Advances other than capital advances
Prepaid expenses 1,173.83 1,414.03
Deferred employee compensation 37.43 26.03
Advance to employees 173.81 122.41
Deposit under protest with Govt authorities 2,566.67 2,315.27
15,646.60 14,456.90
No advances are due by directors or other officers of the Company or any of them either severally or jointly with any
other persons or amounts due by firms or private companies respectively in which any director is a partner or a director
or a member.
`/Lacs
As at As at
31 March 2019 31 March 2018
7. Inventories
(Valued at lower of cost and net realisable value)
It includes Project Machinery in Transit of ` 1266.39 Lacs (31st March 2018 : Nil).
*
`/Lacs
As at As at
31 March 2019 31 March 2018
8. Current Investments
Investment in Mutual Funds
Quoted (at FVTPL)
- Nil (31st March 2018 : 6568620.89) units in “ICICI Prudential Regular Income fund” - 1,151.85
- Nil (31st March 2018 : 1774748.873) units in “HDFC Regular Saving – Growth” - 611.12
- Nil(31st March 2018 : 2721606.837) units in Edelweiss Mutual Fund “Edelweiss - 389.06
Government Securities Regular- Growth”
- Nil (31st March 2018 : 9322487.4370) units in “ Axis Regular Saving Fund –Regular Plan - 1,579.11
Growth”
- Nil (31st March 2018 : 73605.432) units in SBI Premier Liquid fund - DIR Plan Growth - 2,005.30
-234958.449 (31st March 2018 : 44082.999) units in HDFC Liquid-DP-Growthoption 8,642.44 1,504.04
-Nil (31st March 2018 : 2353040.835) units in Birla Sun Life(BSL) - 517.14
-225568.133 (31st March 2018 : Nil) units in SBI Liquid Fund Direct- Growth 6,605.92 -
-66116.58 (31st March 2018 : Nil) units in Kotak Liquid Direct Plan Growth 2,502.07 -
-2760585.383 (31st March 2018 : Nil) units in ICICI Prudential Liquid Fund -Direct Plan- 7,630.71 -
Growth
-833029.555 (31st March 2018 : Nil) units in Aditya Birla Sun Life Liquid Fund -Growth- 2,502.72 -
Direct Plan
-318428.385 (31st March 2018 : Nil) units in Axis Liquid Fund - Direct Growth (CFDGG) 6,602.69 -
300000 (31st March 2018:Nil) Union Capital Protection Oriented Fund Series 7 34.44 -
(Maturity - 03.03.20)
Investments in Bonds(Quoted) (at FVTPL)
250 (31st March 2018: Nil)Housing Development Finance Corporation Ltd SR-M 015 9.45 2,508.45 -
NCD 21 AG19, Face value per Bond ` 1000000 purchased @1006015
250 (31st March 2018: Nil) Mahindra & Mahindra Financial Services Ltd SR-BH 2017 NCD 2,401.70 -
26SP19, Face value per Bond ` 1000000 purchased @944793
Aggregate amount of quoted investments 39,431.14 7,757.62
`/Lacs
As at As at
31 March 2019 31 March 2018
9. Trade receivables
Secured
Considered good 12,266.97 10,428.10
Unsecured
Considered good 13,797.80 13,150.81
Considered significant increase in credit Risk 1,089.97 959.87
Less: Credit impaired 1,089.97 959.87
26,064.77 23,578.91
Refer to Note 17 for information on Trade receivables pledged as security by the company.
No trade receivable are due by directors or other officers of the Company or any of them either severally or jointly with any
other persons or amounts due by firms or private companies respectively in which any director is a partner or a director or a
member.
`/Lacs
As at As at
31 March 2019 31 March 2018
10. Cash and cash equivalents
Balance with banks:
- In current accounts 16,256.03 4,818.70
- In EEFC accounts 151.01 41.51
- Fixed deposits with maturity of upto 3 months* 12,629.90 14,060.34
Cash on hand 22.16 41.31
Cheques in hand 2,462.89 2,171.41
31,521.99 21,133.27
`/Lacs
As at As at
31 March 2019 31 March 2018
11. Other bank balances
Earmarked bank balances # 144.60 127.10
Fixed deposits with maturity of more than 3 months but upto one year* 19,487.58 35,989.94
19,632.18 36,117.04
#
Bank balances are against unpaid dividend & unclaimed fraction money
*
Fixed Deposits upto one year include deposit of ` 16,080.74 Lacs (31 March 2018: ` 2,698.08 Lacs) pledged against overdraft /other
commitments.
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
`/Lacs
As at As at
31 March 2019 31 March 2018
12. Other current financial assets
Other loans and advances - significant increase in credit Risk 33.96 33.96
Credit impaired (33.96) (33.96)
- -
Other loans and advances* 7,077.96 4,775.50
Advance to employees 357.22 222.89
Interest accrued 747.60 1,198.79
8,182.78 6,197.18
*
Includes Government Subsidy of ` 6,034,62 Lacs (31 March 2018: ` 3,110.04 Lacs).
Refer to Note 17 for information on other current financial assets pledged as security by the company.
`/Lacs
As at As at
31 March 2019 31 March 2018
13. Current tax assets (net)
Advance tax (Net of provision for income tax of ` 10374.47 lacs 180.15 757.45
(31st March, 2018 : ` 9413.62 lacs)).
180.15 757.45
`/Lacs
As at As at
31 March 2019 31 March 2018
14. Other current assets
Balances with Government authorities 5,449.34 2,431.49
Prepaid expenses 1,330.69 1,301.82
Advance to employees 85.30 88.52
Advances to suppliers 10,749.07 9,184.07
Deferred employee compensation 16.58 14.54
17,630.98 13,020.44
No advances are due by directors or other officers of the company or any of them either severally or jointly with any other
persons or amounts due by firms or private companies respectively in which any director is a partner or a director or a member.
`/Lacs
As at As at
31 March 2019 31 March 2018
15. Equity Share capital
Authorised:
8,00,00,000 (As at 31 March 2018 - 8,00,00,000) equity shares of ` 10/- each 8,000.00 8,000.00
Issued, subscribed & fully paid up:
7,72,68,258 (As at 31 March 2018 - 6,99,27,250) equity Shares of ` 10/- each 7,726.83 6,992.72
7,726.83 6,992.72
a.
Terms and rights attached to equity shares
Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company,
the holders of equity shares will be entitled to receive remaining assets of the company, after distribution
of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the
shareholders. There is no restriction on distribution of dividend. However, same is subject to the approval of
the shareholders in the Annual General Meeting.
b. Reconciliation of number of shares outstanding at the beginning and end of the year :
`/Lacs
Number of
Amount
Shares
Outstanding at the 1 April 2017 6,99,27,250 6,992.72
Equity Shares issued during the year - -
Outstanding at the 31 March 2018 6,99,27,250 6,992.72
Equity Shares issued during the year # 73,41,001 734.11
Outstanding at the 31 March 2019 7,72,68,251 7,726.83
`/Lacs
As at As at
31 March 2019 31 March 2018
16. Other equity
a. Securities premium
Balance at the beginning of the year 25,988.60 25,988.60
Add: Additions during the year# 50,344.58 -
Less:Adjustment during the year# 653.52 -
Balance at the end of the year 75,679.66 25,988.60
b. Debenture redemption reserve
Balance at the beginning of the year 9,964.50 9,955.10
Transfer from /(to) retained earnings (87.60) 9.40
Balance at the end of the year 9,876.90 9,964.50
c. General reserve
Balance at the beginning of the year 80,325.02 74,325.02
Add: Transfer from retained earnings 10,000.00 6,000.00
Balance at the end of the year 90,325.02 80,325.02
d. Retained earnings
Balance at the beginning of the year 74,215.98 53,807.11
Add: Adjustments 1,599.42 2,385.84
Add: Profit for the year 26,363.40 28,957.50
Add: Other Comprehensive income for the year 2,052.60 1,807.95
Less: Transfer to general reserve 10,000.00 6,000.00
Less: Transfer to debenture redemption reserve - 9.40
Add: Transfer from debenture redemption reserve 87.60 -
Less: Dividend on equity shares 6,992.73 5,594.18
Less: Dividend distribution tax on equity shares 1,437.38 1,138.84
85888.89 74215.98
2,61,770.47 1,90,494.10
#The Company through Qualified Institutions Placement (QIP) allotted 73,41,001 Equity Shares (fully paid up)
to the eligible Qualified Institutional Buyers (QIB) at a price of ` 695.80 per equity share of face value of ` 10
each (inclusive of premium of ` 685.80 per equity share) aggregating to ` 51,078.68 lacs. The issue was made
in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2018 as amended. Pursuant to the allotment of equity shares in the QIP, the paid up equity share
capital of the Company has increased from ` 6,992.72 lacs comprising of 6,99,27,250 equity shares to ` 7,726.83
lacs comprising of 7,72,68,251 equity shares. Share issue expenses are charged off against securities premium.
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
In order to achieve this overall objective, the Group’s capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital
structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call
loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and
borrowing in the current period.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31
March 2019 and 31 March 2018
`/Lacs
As at As at
31 March 2019 31 March 2018
17. Borrowings
Secured
Non convertible debentures 51,780.87 58,992.88
Less: Current maturities of non convertible debentures (Refer note 24) 10,950.00 7,300.00
Term loans
From banks 2,11,949.48 2,09,624.11
Less: Current maturities of term loans (Refer note 24) 17,481.68 12,712.50
Vehicle loans 828.29 672.04
Less: Current maturities of vehicle loans (Refer note 24) 446.60 325.13
VAT loans from Government 5,704.32 5,300.66
Unsecured
Deferred sales tax liabilities 3,230.87 3,818.40
Less: Current maturities of deferred sales tax liabilities (Refer note 24) 636.72 659.95
2,43,978.83 2,57,410.51
Carrying Amount
As at
Repayment Year of Rate of As at
Loan’s Securities 31 March
Frequency Maturity Interest p.a. 31 March 2018
2019
1) Secured Non Convertible Debentures
NCD as shown includes ` 119.13 Lacs Annual 2020-21 10.25% 5,400.00 7,200.00
(31 March 2018 ` 207.12 Lacs) towards
amortised expenses.
Non Convertible Debentures(NCDs): ` 51,900.00
lacs (31 March 2018 ` 59,200.00 lacs)
i) Security for NCDs for ` 21,900.00 lacs Annual 2020-21 10.50% 5,400.00 7,200.00
(31 March 2018 ` 29,200.00 lacs)
Secured by first mortgage on the Company’s Annual 2020-21 11.00% 4,200.00 3,660.00
flat at Ahmedabad and also against first pari-
passu charge on the assets specified below:-
Secured by pari-passu first charge on the Annual 2020-21 11.00% 6,900.00 11,140.00
Company's PPE (movable & immovable) by way
of equitable mortgage on immovable Assets
and hypothecation on movable PPE, related to
company's plant at Nimbahera, Mangrol,Gotan
Grey and Katni.
a) Company's Existing Plant at Nimbahera Annual 2023-24 10.50% 8,500.00 8,500.00
having capacity of 3.25 MnTPA. b) Company's
Existing Plant at Mangrol having capacity of
0.75 MnTPA. c) Company's Existing Plant at
Gotan consisting of White Cement plant having
capacity of 0.40 MnTPA and Thermal Power
Plant. d) Company's Existing Thermal power
plant at Bamania.
ii) Security for NCDs for ` 30,000.00 lacs Annual 2023-24 11.00% 11,500.00 11,500.00
(31 March 2018 ` 30,000.00 lacs)
Secured by first mortgage on the Company’s Annual 2025-26 9.65% 10,000.00 10,000.00
flat at Ahmedabad and also against first pari-
passu charge by way of equitable mortgage of
all the immovable assets except mining land
and hypothecation of movable PPE pertaining
to Company’s existing cement plant at village
Muddapur Karnataka
Sub Total (i) 51,900.00 59,200.00
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
`/Lacs
Carrying Amount
As at
Repayment Year of Rate of As at
Loan’s Securities 31 March
Frequency Maturity Interest p.a. 31 March 2018
2019
2) Secured Term Loans from Banks
Term Loan as shown includes ` 301.24
Lacs (31 March 2018 ` 313.13 Lacs) towards
amortised expenses.
Secured by pari-passu first charge on the Quarterly 2019-20 LTMLR 126.02 625.00
Company's PPE (movable & immovable) by way
Quarterly 2019-20 MCLR+0.75% 1,563.55 2,910.70
of equitable mortgage on immovable Assets
and hypothecation on movable PPE ,related Quarterly 2023-24 MCLR+0.50% 7,458.32 8,460.28
to company's existing plant at Nimbahera,
Mangrol,Gotan Grey and Katni . Quarterly 2018-19 MCLR+0.20% - 428.57
i) Company's Existing Plant at Nimbahera having
capacity of 3.25 MnTPA. ii) Company's Existing
Plant at Mangrol having capacity of 0.75
MnTPA. iii) Company's Existing Plant at Gotan
consisting of White Cement plant having
capacity of 0.40 MnTPA and Thermal Power
Plant. iv) Company's Existing Thermal power
plant at Bamania.
Secured by exclusive charge by way of equitable Quarterly 2020-21 MCLR+0.65% 1,364.32 1,541.91
mortgage over the immovable assets and
hypothecation of movable assets pertaining to
the specified properties.
Secured by equitable mortgage of immovable Quarterly 2022-23 LTMLR 3,035.72 3,750.00
properties and hypothecation of movable PPE
pertaining to undertaking of J.K. Cement Works,
Gotan except current assets and vehicles.
Secured by First Pari-passu charge by way Quarterly 2021-22 MCLR+ 0.50% 4,856.87 6,267.50
of equitable mortgage of all the immovable
Quarterly 2021-22 MCLR 350.04 433.30
Properties (except mining land) and
hypothecation of all moveable non current Quarterly 2021-22 MCLR 613.26 757.50
assets, present and future pertaining to J.K.
Cement Works and Thermal power plant,
Muddapur, Karnataka.
Secured by first pari-passu charge by way of Quarterly 2022-23 MCLR+0.50% 2,305.43 3,058.57
equitable mortgage of all the immovable assets
except mining land and hypothecation of all
movable PPE, present and future pertaining to
J.K. Cement Works, Muddapur, Karnataka.
Secured by first pari-passu charge by way of Quarterly 2023-24 MCLR+0.25% 1,417.16 1,718.69
equitable mortgage of all the immovable assets
and hypothecation of all movable PPE, present
and future pertaining to J.K. Cement Works,
Muddapur, Karnataka.
Secured against exclusive charge on entire Quarterly 2023-24 LTMLR 8,300.00 8,800.00
movable PPE (by way of hypothecation) and
on immovable PPE related to the Wall Putty
project at Katni, Madhya Pradesh (excluding
current assets and mining land, if any).
`/Lacs
Carrying Amount
As at
Repayment Year of Rate of As at
Loan’s Securities 31 March
Frequency Maturity Interest p.a. 31 March 2018
2019
First pari-passu charge on the entire movable Quarterly 2024-25 3.25% + 6 53,613.77 54,392.17
and immovable fixed assets pertaining to J.K. Month LIBORE
Cement Works(Fujairah)FZC, UAE as per prevalent
local laws in UAE. Hypothecation of Inventories &
assignment of trade receivables. Assignment of the
rights under the Land Lease Agreement in respect
of lease hold land(both plant and mining land).
Corporate Guarantee of J.K. Cement Limited for
entire tenor of loan. Assignment of Insurance
Contracts/Insurance proceeds arising from the
Insurance Contracts.
Secured by First charge by way of mortgage, on Quarterly 2030-31 MCLR+ 0.50% 1,02,019.86 1,04,254.72
all the immovable properties, both present and
future pertaining to, of the new cement Plants
at Mangrol, Rajasthan (save and except mining
land) including captive power plant of 25 MW
and waste heat recovery based power plant of
10 MW and split Grinding Unit at Jharli, Haryana
and hypothecation of all the movable PPE of the
above plants (save and except Current Assets), Quarterly 2030-31 MCLR+ 0.40% 12,223.41 12,538.33
both present and future and second charge on all
current assets, present and future, pertaining to
the above plants (subject to prior charge created
or to be created on the Current Assets in favour
of the Working Capital Lenders for securing the
Working Capital Facilities.
(i)Secured by pari-passu first charge by way of Quarterly 2033-34 MCLR+ 0.35% 13,002.99 -
equitable mortgage of the immovable properties,
present and future, pertaining to the Mangrol 3rd
Line clinker unit the Mangrol WHR Plant pertaining
to the Aligarh Grinding unit and Balasinor Grinding
unit, Mangrol expanded Grinding unit and
Nimbahera expanded Grinding unit but excluded
the mining land.(ii) Secured by pari passu first
charge by way of hypothecation of the movable
fixed assets pertaining to the Mangrol 3rd Line
clinker unit and the Mangrol WHR Plant, pertaining
to the Aligarh Grinding unit and Balasinor
Grinding unit, Mangrol expanded Grinding unit
and Nimbahera expanded Grinding unit (save
and except the current assets and vehicles),both
present and future, including movable plant
and machinery, furniture, fixtures and all other
movable fixed assets related to aforesaid units.(iii)
Secured by first pari passu second charge by way
of hypothecation of the current assets pertaining
to Mangrol 3rd line clinker unit, Mangrol WHR Plant,
Aligarh Grinding unit, Balasinor Grinding unit,
Mangrol Expanded Grinding unit and Nimbahera
Expanded Grinding unit both present and future.
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
As at As at
31 March 2019 31 March 2018
Cash and cash equivalents 52,460.38 57,686.97
Liquid investments 39,431.14 7,757.62
Current borrowings (53,330.56) (36,644.51)
Non Current borrowings (2,43,978.83) (2,57,410.51)
Net Debt (2,05,417.87) (2,28,610.43)
`/Lacs
As at As at
31 March 2019 31 March 2018
18. Other non-current financial liabilities
Security deposits 23,891.31 20,678.88
23,891.31 20,678.88
`/Lacs
As at As at
31 March 2019 31 March 2018
19. Long-term provisions
Provision for employee benefits (Refer note 38)
- Gratuity 461.44 417.80
- Leave encashment 2,866.95 2,505.57
Provision for mines restoration charges* 816.43 211.55
4,144.82 3,134.92
* Provision for mines restoration charges:
Opening balance 211.55 197.15
Addition during the year 604.88 14.40
Closing balance 816.43 211.55
The Company provides for the expenditure to reclaim the quarries used for mining in the Statement of Profit and
Loss based on the estimated expenditure required to be made towards restoration and rehabilitation at the time
of vacation of mine. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current
best estimates.
`/Lacs
As at As at
31 March 2019 31 March 2018
20. Deferred tax liabilities (net)
A. The balance comprises temporary differences attributable to:
Deferred tax liabilities
Property, plant and equipment 62,612.01 60,057.48
Deferred tax assets
Unabsorbed depreciation & losses 22.33 1,915.62
Employee benefits 1,100.28 965.63
Trade receivables 647.07 343.95
Liability on payment basis 3,255.39 2,763.18
MAT credit entitlement 26,359.74 27,372.44
31,227.20 26,696.66
As at Recognized Recognized in As at
31 March 2017 in P&L OCI 31 March 2018
Deferred tax assets
Unabsorbed depreciation & Losses 9,980.15 (8,064.53) - 1,915.62
Employee benefits 840.63 192.67 (67.67) 965.63
Trade receivables 272.97 70.98 343.95
Liability on expenses 3,291.07 (527.89) 2,763.18
MAT credit entitlement 18,079.26 9,293.18 27,372.44
Sub- Total (a) 32,464.08 964.41 (67.67) 33,360.82
Deferred tax liabilities
Property, plant and equipment 58,450.60 1,606.88 - 60,057.48
Sub-Total (b) 58,450.60 1,606.88 - 60,057.48
Net Deferred Tax Liability (b)-(a) 25,986.52 #642.47 67.67 26,696.66
# Movement included ` 7.99 lacs ( 31 March 2018 ` 293.02 lacs) of earlier year tax adjustment
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
`/Lacs
As at As at
31 March 2019 31 March 2018
21. Other non-current liabilities
Deferred government subsidies
- Deferred income on government grants 8,668.22 9,232.02
8,668.22 9,232.02
Government grants have been received against the purchase of certain items of
property, plant and equipment. There are no unfulfilled conditions or contingencies
attached to these grants.
Opening balance
Current 753.76 606.88
Non current 9,232.02 8,633.01
9,985.78 9,239.89
Received during the year 331.30 1,499.65
Released to statement of profit or loss 834.80 753.76
Closing balance
Current 834.80 753.76
Non-current 8,668.22 9,232.02
9,503.02 9,985.78
`/Lacs
As at As at
31 March 2019 31 March 2018
22. Short term borrowings
Loan repayable on demand (Secured)* 23,815.56 15,646.93
- From banks 23,815.56 15,646.93
*Cash credit account : ` 15,975.40 Lacs (31 March 2018 : ` 11,351.76 Lacs)
Cash credit accounts are secured by first charge on current assets of the Company namely inventories, book
debts, etc. and second charge on PPE of the Company except the PPE pertaining to J.K. Cement Works, Gotan and
the assets having exclusive charge of other lenders.
* Short Term Loan/Over Draft Account : ` 7,833.88 lacs (31 March 2018 : ` 4,295.17 lacs)
Working Capital facilities are secured by first charge on current assets of the Company namely inventories, book
debts etc. and undated cheques covering the exposure.
`/Lacs
As at As at
31 March 2019 31 March 2018
23. Trade payables
(a) Total outstanding dues of micro enterprises and small enterprises (Refer note 45) 1,051.10 1,227.33
(b) Total outstanding dues of creditors other than micro enterprises and small 71,392.56 65,294.16
enterprises
72,443.66 66,521.49
Based on the information available with the Company regarding the status of suppliers as defined under MSMED
Act,2006, there was no principal amount overdue and no interest was payable to the Micro, Small and Medium
Enterprises on 31st March, 2019 as per the the terms of contract.
`/Lacs
As at As at
31 March 2019 31 March 2018
24. Other financial liabilities
Current maturities of long-term debt 29,515.00 20,997.58
Employee dues 1,980.39 1,540.24
Interest accrued but not due on borrowings 1,225.24 1,362.60
Unpaid dividends 135.39 117.88
Unclaimed fraction money 9.22 9.22
Security deposits 1,179.40 1,033.33
Project creditors 11,005.71 686.34
Temporary book overdraft 997.04 54.28
Others* 1,164.15 3,376.38
47,211.54 29,177.85
As at As at
31 March 2019 31 March 2018
25. Other current liabilities
Statutory dues payable 7,876.48 7,685.84
Government grant 814.06 753.76
Advance from customer 6,913.90 9,019.44
Others 271.86 271.86
15,876.30 17,730.90
`/Lacs
As at As at
31 March 2019 31 March 2018
26. Short-term provisions
Employee benefits 1,017.63 1,884.43
1,017.63 1,884.43
`/Lacs
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
Sale of products includes excise duty collected from customers of ` Nil (31 March 2018: ` 16,696.42 lacs). Sale of goods
net of excise duty is ` 5,18,332.49 lacs (31 March 2018: ` 4,80,465.77 lacs). Revenue from operations for periods up to 30
June 2017 includes excise duty. From 1 July 2017 onwards the excise duty and most indirect taxes in India have been replaced
by Goods and Service Tax (GST). The group collects GST on behalf of the Government. Hence, GST is not included in Revenue
from operations. In view of the aforesaid change in indirect taxes, Revenue from operations year ended 31 March 2019 is not
comparable 31 March 2018.
`/Lacs
`/Lacs
`/Lacs
`/Lacs
`/Lacs
`/Lacs
`/Lacs
In Previous year, other expenses were of ` 3,06,334.45 lacs which included ` 16,696.43 lacs as Excise duty, ` 95,213.30 lacs as
Power & Fuel and ` 1,10,607.40 lacs as Freight & forwarding.These have been shown separtely in the statement of Profit & Loss
of current year.
`/Lacs
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
`/Lacs
As at As at
31 March 2019 31 March 2018
36. Contingent liabilities, contingent assets and commitment
A. Contingent liabilities:
(i) Claim against the Company not acknowledged as debts (includes show cause 25,238.68 21,926.41
notices pertaining to excise duty and others) (cash flow is dependent on court
decisions pending at various level.)
(ii) There are numerous interpretative issues relating to the Supreme Court (SC) - -
judgement dated 28th February, 2019 on Provident Fund (PF) on the inclusion
of allowances for the purpose of PF contribution as well as its applicability of
effective date. The Company is evaluating and seeking legal inputs regarding
various interpretative issues and its impact.
Other for which the Company is contingently liable
(iii) In respect of disputed demands for which Appeals are pending with Appellate
Authorities/Courts – no provision has been considered necessary by the
Management
a) Excise duty * 2,239.93 2,143.77
b) Sales and Entry Tax* 6,348.76 5,469.56
c Service Tax* 932.28 1,362.89
d) Income Tax (primarily on account of disallowance of depreciation on 5,874.45 5,450.36
goodwill and additional depreciation on power plants etc.)
(iv) In respect of interest on “Cement Retention Price” realised in earlier years 1,271.81 1,251.43
(v) In respect of penalty of non lifting of fly Ash 1,542.82 1,270.56
(vi) The Competition Commission of India ('CCI') has imposed penalty of ` 12,854 lacs 13,782.00 13,782.00
('first matter') and ` 928 lacs ('second matter') in two separate orders dated August
31, 2016 and January 19, 2017 respectively for alleged contravention of provisions of
Competition Act 2002 by the Company. The Company has filed appeals against the
above orders. The National Company Law Appellate Tribunal ('NCLAT'), on hearing
the appeal in the first matter, upheld the decision of CCI for levying the penalty vide
its order dated July 25, 2018. Post order of the NCLAT, CCI issued a revised demand
notice dated August 7, 2018 of ` 15,492 lacs consisting of penalty of ` 12,854 lacs
and interest of ` 2,638 lacs. The Company has filed appeal with Hon'ble Supreme
Court against the above order. Hon'ble Supreme Court has stayed the NCLAT order.
While the appeal of the Company is pending for hearing, the Company backed by a
legal opinion, believes that it has a good case and accordingly no provision has been
considered in the books of accounts. In the second matter, demand had been stayed
and the matter is pending for the hearing before NCLAT.
(vii) In respect of land tax levied by state Governement of Rajasthan 15.46 206.69
(viii) In respect of demand of Railway Administration pending with Jodhpur High Court 218.86 218.86
(ix) In respect of charges on account of electricity duty, water cess etc. levied by Ajmer 5133.38 4497.04
Vidyut Vitran Nigam Ltd (AVVNL)
(x) In respect of Environmental and Health Cess 324.52 324.52
* Disputes are primarily on account of disallowances of input credits, interest on entry
tax, etc.
B. Commitments
Capital commitment 39,413.22 3,804.91
C. Contingent assets
Insurance Claims 498.00 685.00
of budget, planning, expansion, alliance, joint venture, merger and acquisition, and expansion of any new
facility.
Board of Directors reviews the operating results at company level, accordingly there is only one Reportable
Segment for the Company which is "Cement", hence no specific disclosures have been made.
Entity wide disclosures
A. Information about product total revenue
`/Lacs
38.
EMPLOYEE BENEFITS
The Company contributes to the following post-employment defined benefit plans in India.
(i) Defined Contribution Plans:
The Company makes contributions towards provident fund and superannuation fund to a defined contribution
retirement benefit plan for qualifying employees. Under the plan, the Company is required to contribute a
specified percentage of payroll cost to the retirement benefit plan to fund the benefits.
`/Lacs
For the year ended
31 March 2019 31 March 2018
Contribution to government Provident Fund 1,262.81 1,135.91
Contribution to Superannuation Scheme 453.35 478.06
Contribution to Family Pension Fund 474.87 473.87
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
In case of foreign subsidiaries, the amount required to cover end of service benefits at the ending of the
reporting period are computed pursuant to the United Arab Emirates Federal Labour Law based on the
employees' accumulated period of service and current basic remuneration at that date. Hence the above
details of net defined benefit (asset) liability and its componants do not include the figures of foreign
subisdiaries.
C. Plan assets
The plan assets are managed by the Gratuity Trust formed by the Company. The management of 100%
of the funds is entrusted according to norms of Gratuity Trust, whose pattern of investment is available
with the Company.
`/Lacs
D. Actuarial assumptions
The following were the principal actuarial assumptions at the reporting date (expressed as
weighted averages).
`/Lacs
31 March 2019 31 March 2018
Discount rate 7.30% 7.40%
Expected rate of return on plan assets 8.50% 8.50%
Mortality
Turnover rate : Staff 5% of all ages 5% of all ages
Turnover rate : Worker 1% of all ages 1% of all ages
Expected rate of future salary increase 10% 10%
Assumptions regarding future mortality have been based on published statistics and mortality tables.
At 31 March 2019, the weighted-average duration of the defined benefit obligation was 6 years (as at 31
March 2018: 6 years).
E. Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other
assumptions constant, would have affected the defined benefit obligation by the amounts shown below.
Gratuity
Although the analysis does not take account of the full distribution of cash flows expected under the plan, it
does provide an approximation of the sensitivity of the assumptions shown.
F. Through its defined benefit plans, the company is exposed to a number of risks, the most significant of
which are detailed below:
Asset volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if
plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed
income securities with high grades and in government securities. These are subject to interest rate risk and
the fund manages interest rate risk with derivatives to minimise risk to an acceptable level.
Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially
offset by an increase in the value of the scheme's bond holdings.
Life expectancy: The pension obligations are to provide benefits for the life of the member, so increase
in life expectancy will result in increase in plans liability. This is particularly significant where inflationary
increases result in higher sensitivity to changes in life expectancy.
The Company ensures that the investment positions are managed within an asset-liability matching (ALM)
framework that has been developed to achieve long-term investments that are in line with the obligations
under the employee benefit plans. Within this framework, the group's ALM objective is to match assets to
the pension obligations under the employee benefit plan term fixed interest securities with maturities that
match the benefit payments as they fall due and in the appropriate currency. The Company actively monitors
how the duration and the expected yield of the investments are matching the expected cash outflows arising
from the employee benefit obligations. The Company has not changed the processes used to manage its risks
from previous periods. Investments are well diversified, such that the failure of any single investment would
not have a material impact on the overall level of assets. A large portion of assets at reporting date consists
of government and corporate bonds, although the group also invests in equities, cash and mutual funds.
The group believes that equities offer the best returns over the long term with an acceptable level of risk.
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
(2) a) Following are the transactions with related parties as defined under section 188 of Companies Act
2013 and Ind AS 24.
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
As at As at
Non cancellable operating lease commitments ;
31 March 2019 31 March 2018
Not longer than one year 1,560.66 1,458.09
Longer than one year and not longer than five years 6,561.08 5,832.34
Longer than five years 17,073.33 16,038.94
Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at 31 March 2019:
`/Lacs
Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at 31 March 2018:
`/Lacs
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
Financial instruments and cash deposits procedures, and reviews the adequacy of the
(i) The carrying amounts of trade receivables, risk management framework in relation to
trade payables, Short Term Borrowings, the risks faced by the Company. The Audit
cash and cash equivalents, other bank Committee is assisted in its oversight role
balances, other financial liabilities, and by Internal Audit. Internal Audit undertakes
other financial assets are considered to both regular and ad hoc reviews of risk
be the same as their fair values, due to management controls and procedures, the
their short-term nature. The fair values results of which are reported to the Audit
for security deposits are calculated based Committee.
on cash flows discounted using a current
ii. Credit risk
lending rate.
Credit risk is the risk of financial loss
(ii) T
he fair values of non-current borrowings are to the Company if a customer or
based on discounted cash flows using a current counterparty to a financial instrument
borrowing rate. They are classified as level 3 fails to meet its contractual obligations,
fair values in the fair value hierarchy due to and arises principally from the Company’s
the use of unobservable inputs, including own receivables from customers including
credit risk. deposits with banks and financial
institutions.
(iii) T
he fair value of the financial assets and
liabilities is included at the amount at Trade and other receivables
which the instrument is exchanged in
The Company’s exposure to credit risk
a current transaction between willing is influenced mainly by the individual
parties, other than in a forced or characteristics of each customer.
liquidation sale. However, management also considers the
factors that may influence the credit risk
II. Financial risk management
of its customer base, including the default
The Company has exposure to the following risks
risk of the industry and country in which
arising from financial instruments:
customers operate.
- credit risk; The Risk Management Committee has
established a credit policy under which
- liquidity risk; and
each new customer is analysed individually
- market risk for creditworthiness before the Company’s
standard payment and delivery terms and
i. Risk management framework
conditions are offered. The Company’s
The Company’s board of directors has overall
review includes external ratings, if they are
responsibility for the establishment and
available, and in some cases bank references.
oversight of the Company’s risk management
Sale limits are established for each customer
framework. The board of directors has
and reviewed quarterly. Any sales exceeding
established the Risk Management Committee,
those limits require approval from the Risk
which is responsible for developing
Management Committee.
and monitoring the Company’s risk
management policies. The committee reports
In monitoring customer credit risk, customers
regularly to the board of directors on its
are accompanied according to their credit
activities.
characteristics, including whether they are an
The Company’s risk management policies are individual or a legal entity, their geographic
established to identify and analyse the risks location, industry and existence of previous
faced by the Company, to set appropriate financial difficulties. The Company evaluates
risk limits and controls and to monitor risks the concentration of risk with respect to
and adherence to limits. Risk management trade receivables as low, as its customers
policies and systems are reviewed regularly to are located in several jurisdictions and
reflect changes in market conditions and the industries and operate in largely independent
Company’s activities. The Company, through markets."
its training and management standards and
A default on financial assets is when the
procedures, aims to maintain a disciplined and
counterparty fails to make contractual
constructive control environment in which
payments within 60 days of when they fall
all employees understand their roles and
due. This definition of default is determined by
obligations.
considering the business environment in which
The Company's Audit Committee oversees the entity operates and other macro-economic
how management monitors compliance with factors. The Company holds bank guarantees/
the Company’s risk management policies and security deposits against trade receivables of
` 11266.97 lacs (31 March 2018: ` 10,428.10 has not recorded any further loss during
lacs) and as per the terms and condition of the year in these financial instruments
the agreements, the Company has the right and cash deposits as these pertains to
to encash the bank guarantee or adjust the counter parties of good credit ratings/credit
security deposits in case of defaults. worthiness.
The Company establishes an allowance for
A default on financial assets is when the
impairment that represents its expected counterparty fails to make contractual
credit losses in respect of trade and payments within 60 days of when they fall
other receivables. The management uses due. This definition of default is determined by
a simplified approach for the purpose of considering the business environment in which
computation of expected credit loss for trade the entity operates and other macro-economic
receivables factors
Expected credit losses are a probability
The Company establishes an allowance for
weighted estimate of credit losses. impairment that represents its expected
Credit losses are measured as the present credit losses in respect of trade and
value of all cash shortfalls (i.e. the difference other receivables. The management uses
between the cash flows due to the Company a simplified approach for the purpose of
in accordance with the contract and the computation of expected credit loss for trade
cash flows that the Company expects to receivables
receive).
Expected credit losses are a probability
During the based on specific assessment, weighted estimate of credit losses.
the Company recognised bad debts and Credit losses are measured as the present
advances of ` 3.02 lacs (31 March 2018: value of all cash shortfalls (i.e. the difference
` 9.85 lacs). The year end trade receivables between the cash flows due to the Company
do not include any amounts with in accordance with the contract and the
such parties. cash flows that the Company expects to
receive).
The maximum exposure to credit risk at the
reporting date is the carrying value of trade iii.
Liquidity risk
receivables disclosed in Note 9 Liquidity risk is the risk that the Company
will encounter difficulty in meeting the
Reconciliation of loss allowance provision -
obligations associated with its financial
Trade Receivables
liabilities that are settled by delivering cash
`/Lacs or another financial asset. The Company’s
approach to managing liquidity is to ensure,
Particulars As at As at as far as possible, that it will have sufficient
March 2019 March 2018
liquidity to meet its liabilities when they
Opening Balance 959.87 739.12
are due, under both normal and stressed
Change in loss 130.10 220.75
conditions, without incurring unacceptable
allowance
losses or risking damage to the Company’s
Closing Balance 1,089.97 959.87
reputation.
Financial instruments and cash deposits
Prudent liquidity risk management
Credit risk from balances with banks and implies maintaining sufficient cash and
financial institutions is managed by the marketable securities and the availability
Company’s treasury department in accordance of funding through an adequate amount
with the Company’s policy. Investments of of committed credit facilities to meet
surplus funds are made only with approved obligations when due and to close out
counterparties and within credit limits market positions. Due to the dynamic nature
assigned to each counterparty. The limits of the underlying businesses, Company
are set to minimise the concentration of treasury maintains flexibility in funding by
risks and therefore mitigate financial loss maintaining availability under committed
through counterparty’s potential failure to credit lines.
make payments.
Management monitors rolling forecasts of the
The Company’s maximum exposure to Company’s liquidity position (comprising the
credit risk for the components of the undrawn borrowing facilities below) and cash
balance sheet at 31 March 2019 and 31 and cash equivalents on the basis of expected
March 2018 is the carrying amounts as cash flows. This is generally carried out in
shown in Note 4,8,10,11 & 12. The Company accordance with practice and limits set by
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
the Company. These limits vary by location to currencies and considering the level of liquid
take into account the liquidity of the market assets necessary to meet these, monitoring
in which the entity operates. In addition, balance sheet liquidity ratios against internal
the Company’s liquidity management policy and external regulatory requirements and
involves projecting cash flows in major maintaining debt financing plans.
Further the Company issued financial guarantee as disclosed in note 39 for which the possibility of
payment is remote.
iv.
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises of interest rate risk and currency risk.
Financial instruments affected by market risk primarily include trade and other receivables, trade and
other payables and borrowings.
Currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign
exchange rates relates primarily to the Company's operating activities (when revenue or expense is
denominated in a foreign currency). The Company manages its foreign currency risk by taking foreign
currency forward contracts, if required
Sensitivity analysis
A reasonably possible strengthening (weakening) of the INR against all other currencies at 31 March
would have affected the measurement of financial instruments denominated in a foreign currency and
affected equity and profit or loss by the amounts shown below. This analysis assumes that all other
variables, in particular interest rates, remain constant.
`/Lacs
Nominal Amount
31 March 2019 31 March 2018
Fixed-rate instruments 44,607.00 56,393.55
Financial assets 85,435.66 89,462.86
Financial liabilities 1,30,042.66 1,45,856.41
Variable-rate instruments
Financial assets 37,416.84 10,408.23
Financial liabilities 2,35,765.04 2,25,271.04
2,73,101.88 2,35,679.27
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
42.
CORPORATE SOCIAL RESPONSIBILITY
a. Amount required to be spent by the Company on Corporate Social Responsibility (CSR) activities during
the year was ` 640.26 lacs i.e. 2% of average net profits for last three financial years, calculated as per
section 198 of the Companies Act,2013
b. Corporate Social Responsibility (CSR) activities undertaken during the year is ` 668.97 lacs. Further, no
amount has been spent on construction/acquisition of an asset of the Company and entire amount is
spent on cash basis.
45. DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS DEFINED UNDER THE MSMED, 2006
`/Lacs
46. IN ADDITION TO THE ABOVE, FOLLOWING ARE THE RECLASSIFICATIONS MADE IN THE PREVIOUS YEAR
FIGURES TO MAKE THEM COMPARABLE/BETTER PRESENTATION WITH THE CURRENT YEAR FIGURES.
47(1). A
DDITIONAL INFORMATIONS, AS REQUIRED UNDER SCHEDULE III OF THE COMPANIES ACT,2013 OF
ENTERPRISES CONSOLIDATED AS SUBSIDIARY/JOINT VENTURES
As % of As % of
Amount Amount
Consolidated Consolidated
(` in lacs) (` in lacs)
Assets Profit
Parent
J.K. Cement Ltd. 85.47% 2,30,341.42 123.32% 32,511.18
Subsidiary (Indian)
Jaykaycem Central Ltd. 3.60% 9,693.14 0.01% 3.85
Subsidiary including Fellow Subsidiary (Foreign)
J.K. Cement (Fujairah) FZC & J.K. Cement Works 10.93% 29,462.74 (23.33%) (6,151.63)
(Fujairah) FZC
Minority Interest in Foreign Subsidiary - - - -
Joint Venture
Bander Coal Company - - - -
Total 100.00% 2,69,497.30 100.00% 26,363.40
During the year the Bander Coal Company Pvt. Ltd. was liquidated under the provisions of
Companies Act 2013.
`/Lacs
J.K.Cement (Fujairah) AED 55,610.55 195.59 60,326.04 8.10 60,334.14 4,495.21 32.79 4,528.00 55,430.58 1,176.23 266.26 - 822.16 - 100.00
FZC *
J.K.Cement Works AED 16,942.26 (30,258.95) 83,065.32 14,568.39 97,633.71 93,102.47 17,847.93 1,10,950.40 - 28,467.09 (6,685.22) - (6,685.22) - 90.00
(Fujairah) FZC *
(Fellow Subsidiary) @
Jaykaycem (Central) Ltd. INR 1,092.35 8,600.79 9,091.16 621.67 9,712.83 - 19.68 19.68 - 34.07 16.07 12.22 3.85 - 100.00
Notes:
# Exchange Rate adopted for consolidation ` 19.004030 1 AED
World of J.K. Cement
221
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
48. STANDARDS ISSUED BUT NOT YET EFFECTIVE amount of the remeasurement of the lease liability
as an adjustment to the right-of-use asset.
The amendments to standards that are issued,
Lessor accounting under Ind AS 116 is
but not yet effective, up to the date of issuance
substantially unchanged from today’s accounting
of the Company’s financial statements are
under Ind AS 17. Lessors will continue to classify
disclosed below. The Company intends to adopt
all leases using the same classification principle as
these standards, if applicable, when they become
in Ind AS 17 and distinguish between two types of
effective.
leases: operating and finance leases.
The Ministry of Corporate Affairs (MCA) has The Company intends to adopt these standards
issued the Companies (Indian Accounting from 1 April 2019. The impact on adoption of
Standards) Amendment Rules, 2017 and Ind AS 116 on the financial statements is given
Companies (Indian Accounting Standards) below. Ind AS 116 also requires lessees and
Amendment Rules, 2018 amending the following lessors to make more extensive disclosures than
standard. under Ind AS 17.
Ind AS 116 Leases Transition to Ind AS 116
Ind AS 116 Leases was notified by MCA on 30 The Company is proposing to use the ‘Modified
March 2019 and it replaces Ind AS 17 Leases, Retrospective Approach’ for transitioning to Ind
including appendices thereto. AS 116, and take the cumulative adjustment to
Ind AS 116 is effective for annual periods beginning retained earnings, on the date of initial application
on or after 1 April 2019. Ind AS 116 sets out the (April 1, 2019). Accordingly, comparatives for the
principles for the recognition, measurement, year ending or ended March 31, 2019 will not be
presentation and disclosure of leases and requires retrospectively adjusted. The Company has elected
lessees to account for all leases under a single certain available practical expedients on transition.
on-balance sheet model similar to the accounting The company is evaluating the requirements of
for finance leases under Ind AS 17. The standard the amendment and the effect on the financial
includes two recognition exemptions for lessees statements is being evaluated
– leases of ‘low-value’ assets (e.g., personal
Amendments to Ind AS 12: Income Taxes
computers) and short-term leases (i.e., leases
The amendments clarify that the income tax
with a lease term of 12 months or less). At the
consequences of dividends are linked more directly
commencement date of a lease, a lessee will
to past transactions or events that generated
recognise a liability to make lease payments (i.e.,
distributable profits than to distributions to
the lease liability) and an asset representing the
owners. Therefore, an entity recognises the income
right to use the underlying asset during the lease
tax consequences of dividends in profit or loss,
term (i.e., the right-of-use asset). Lessees will
other comprehensive income or equity according
be required to separately recognise the interest
to where the entity originally recognised those
expense on the lease liability and the depreciation
past transactions or events.
expense on the right-of-use asset.
An entity applies those amendments for annual
Lessees will be also required to remeasure the reporting periods beginning on or after 1
lease liability upon the occurrence of certain April 2019. Since the Company’s current practice is
events (e.g., a change in the lease term, a change in line with these amendments, the Company does
in future lease payments resulting from a change not expect any effect on its financial statements.
in an index or rate used to determine those
payments). The lessee will generally recognise the
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019
Amendments to Ind AS 23: Borrowing Costs annual reporting period in which the entity first
The amendments clarify that an entity treats applies those amendments. An entity applies
as part of general borrowings any borrowing those amendments for annual reporting periods
originally made to develop a qualifying asset beginning on or after 1 April 2019. Since the
when substantially all of the activities necessary Company’s current practice is in line with these
to prepare that asset for its intended use or amendments, the Company does not expect any
sale are complete. effect on its financial statements.
An entity applies those amendments to borrowing
costs incurred on or after the beginning of the
For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of
Chartered Accountants J K Cement Limited
ICAI Firm Regn. No. 301003E/E300005
1. The Ministry of Corporate Affairs has taken 6. The share holders of physical segment who are
‘Green Initiative in the Corporate Governance’ by having identical names in different folios are
allowing paperless compliances by the Companies advised to consolidate their holdings in one folio
and has issued circulars stating that service which will facilitate the investors in receiving
of notice/documents including Annual Report consolidate dividend or non-cash corporate
can be sent by e-mail to its members. In this benefit of future and would reduce un-necessary
regard we solicit your cooperation to update our paper work and service cost.
databank. Members who have not registered so
7. The Investors who have not received Demat credit
far, are requested to register their e-mail address,
of shares allotted under public issue may write to
contact telephone Number, NECS/ECS Mandate in
us by quoting reference of their application no.,
respect of electronic holdings with the Depository
name, address & No. of shares applied for
through their concerned Depository Participants.
Members who hold shares in physical form are 8. Shareholders of physical segment who wish
requested to intimate their e-mail address, to notify change in their address may intimate
contact telephone number at any of our e-mail complete new address with Pin code No.
address viz. (a) shambhu.singh@jkcement.com, (b) by quoting their Folio No. and proof of Address i.e.
rc.srivastava@jkcement.com, (c) investorservices@ copy of telephone/electricity bill or any receipt of
jkcement.com, (d) jkshr@jkcement.com and Municipal Corporation etc.
send NECS/ECS Mandate to the Registered Office
The Shareholders who holds shares in electronic /
of the Company.
(Demat) segment may notify their change in their
2. The equity shares of your company are listed address to the DP with whom they are maintaining
on the Bombay Stock Exchange Ltd. & National a Demat account. No request For change in
Stock Exchange of India Ltd., Mumbai and the address from the holders of Demat segment will
same are compulsorily traded in dematerialized be entertained directly by The Company.
mode. Shareholders who wish to dematerialize
9. The shareholders who wish to make nomination
their shareholdings may send their request on
may send their application on prescribed form
prescribed form (available with DP) alongwith
Under Companies Act 2013 and Rules frame
share certificate(s)/ for dematerialisation through
thereunder. The said form is also available on
depository participant (DP) with whom they are
company’s website www.jkcement.com.
maintaining a demat account. The ISIN of the
Company is INE 823G01014. 10. The Shareholders who holds shares in physical
segment are mandatorily required to notify their
3. The share holders who have not received corporate
updated Bank Account Details for printing on
benefit i.e. share certificates, on account of
the Dividend Warrant as required in Sebi Circular
shares held by them in Jay Kay Enterprises Ltd
No.CIR/MRD/DP/10/2013 dated 21.3.13.
(erstwhile J K Synthetics Ltd), dispatched by the
company during April, 2005 may intimate the
company by quoting reference of Folio No. / DP-ID
and Client ID etc.
4. The share holders who have not received dividend
warrants for the year 2011-12, 2012-13, 2013-14,
2014-15, 2015-16, 2016-17 and 2017-18 on
account of their change in address or any other
reason may write to the Company’s Registrar &
Transfer Agents, Jaykay Enterprises Ltd, Kamla
Tower, Kanpur by quoting reference of their folio
or DP-ID & Client ID.
5. The shareholders who wish to seek any
information, clarification in respect of
share transfer activities or status of their
grievances may write to Company’s Registrar
Transfer Agent, Jaykay Enterprises Ltd, Kamla
Tower, Kanpur at following email address:
shambhu.singh@jkcement.com.
Corporate Information
Board of Directors Key Management Personnel
Yadupati Singhania, Chairman and Managing Director Raghavpat Singhania – Special Executive
Smt. Sushila Devi Singhania Madhavkrishna Singhania – Special Executive
Achintya Karati Abhishek Singhania – Special Executive
Ashok Sinha A.K. Saraogi, President (Corporate Affairs) & CFO
Deepa Gopalan Wadhwa Rajnish Kapur- Business Head –Grey Cement
Jayant Narayan Godbole Niranjan Mishra, Business Head –White Cement
Dr. K.B. Agarwal Ashok Ghosh- President ( Education & CSR)
Kailash Nath Khandelwal Pushpraj Singh- President ( Marketing)- Grey Cement
Paul Heinz Hugentobler Ashish Mehta - President (Marketing)- White Cement
Raj Kumar Lohia S.K.Tejwani, President (Projects)
Saurabh Chandra Anil Kumar Agrawal, Senior Vice President
Suparas Bhandari (Tax & Management Service)
Rajeev Sharma, Unit Head – White Cement, Gotan
Bankers S.K.Rathore, Unit Head- Grey Cement- Rajasthan
Allahabad Bank RBM Tripathi, Unit Head-Grey Cement, Karnataka
Andhra Bank Andleeb Jain, Chief People Officer
Axis Bank Jitendra Singh, Chief Information Officer
Canara Bank Amit Kothari-CEO-(UAE Operations)
Bank of Baroda Ajay Mathur, Head, Marketing & Sales (UAE Operations)
Export Import Bank of India
IDBI Bank Ltd. Asst. Vice President (Legal) & Company Secretary
Indian Bank Shambhu Singh
Jammu & Kashmir Bank
Oriental Bank of Commerce Auditors
State Bank of India M/s S. R. Batliboi & Co, LLP, Chartered Accountants
Union Bank of India Golf View Corporate Tower B, Sector 42,
United Bank of India Sector Road, Gurgaon-122002
National Bank of Fujairah-UAE
Registrar & Share Transfer Agent
Registered & Corporate Office Jaykay Enterprises Ltd.
Kamla Tower, Kanpur - 208001 Kamla Tower, Kanpur-208001
E-mail:jkshr@jkcement.com
Shambhu.singh@jkcement.com
Plants Location
INDIA
Grey Cement Plants Kailash Nagar, Nimbahera, Dist. Chittorgarh, Rajasthan
Mangrol, Dist. Chittorgarh, Rajasthan
Gotan, Dist. Nagaur, Rajasthan
Muddapur, Dist. Bagalkot, Karnataka
Jharli, Dist. Jhajjar, Haryana
Satha, Pargana Morthal, Tehsil: Koil, Dist: Aligarh, UP (under
implementation)
Vadadala, Tehsil: Balasinor, Dist: Mahisagar, Ahmedabad Indore
Highway, Gujrat (under implementation)
White Cement & White Cement based Wall Putty Plant Gotan, Dist. Nagaur, Rajasthan
Village: Rupaund, Tehsil - Badwara, Dist. Katni, M.P
Thermal Power Plants Kailash Nagar, Nimbahera, Dist. Chittorgarh, Rajasthan
Gotan, Dist. Nagaur, Rajasthan
Muddapur, Dist. Bagalkot, Karnataka
Mangrol, Chittorgarh, Rajasthan
Waste Heat Recovery Power Plant (For captive i) Kailash Nagar, Nimbahera, Dist. Chittorgarh, Rajasthan
consumption) ii) Mangrol, Dist. Chitorgarh, Rajasthan
OVERSEAS UNDERTAKEN BY SUBSIDIARY
Dual process White/Grey Cement Plant Plot No.7, Habhab, Tawian Fujairah, UAE
NOTES
to the Consolidated financial statements for the year ended 31st March, 2019