JKLC:SECTL:SE:23

1st August 2023

1 BSE Ltd. 2 National Stock Exchange of India Ltd.

Department of Corporate Services “Exchange Plaza”
Phiroze Jeejeebhoy Towers Bandra-Kurla Complex
Dalal Street Bandra (East)
Mumbai – 400 001 Mumbai – 400 051
Security Code No. 500380 Symbol: JKLAKSHMI, Series : EQ
Through: BSE Listing Centre Through: NEAPS

Dear Sir/ Madam,

Re: Intimation for 83rd AGM, Integrated Annual Report and Cut-off date for E-voting

1. We have to inform you that the 83rd Annual General Meeting (AGM) of the Company will be
held on Thursday, the 24th August 2023 at 2:30 P.M. Indian Standard Time through Video
Conferencing (VC)/ Other Audio Visual Means (OAVM), in accordance with the relevant circulars
issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India.

2. Pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements)

Regulations, 2015 (Listing Regulations) read with Schedule V of the said Regulations, we submit
herewith Integrated Annual Report for the Financial Year ended 31st March 2023 and the Notice
convening the 83rd AGM, being sent to the Members by email whose email addresses are registered
with the Company/Depository Participant(s). The Integrated Annual Report and Notice of the AGM
are also uploaded on the website of the Company at www.jklakshmicement.com.

3. In compliance with the provisions of Section 108 of the Companies Act, 2013 read with Rule
20 of the Companies (Management and Administration) Rules 2014 and Regulation 44 of the Listing
Regulations, the Company is pleased to provide the Members, facility to exercise their right to vote
at the 83rd AGM by electronic means and the business mentioned in the AGM’s Notice may be
transacted through e-Voting services provided by Central Depository Services (India) Limited. The
details such as manner of casting vote through e-Voting, attending the AGM through VC /OAVM and
registering / updating email addresses etc. have been set out in the Notice of the AGM.

Admin Office: Nehru house, 4, Bahadur Shah Zafar Marg, New Delhi-110 002: Phone: 66001142 / 66001112; E-mail; jklc.customercare@jkmail.com;
Website: www.jklakshmicement.com, CIN: L74999RJ1938PLC019511
Regd. & Works Office: Jaykaypuram, Dist. Sirohi, Rajasthan; Phone: 02971-244409/ 244410; Fax: 02971-244417; E-mail: lakshmi_cement@lc.jkmail.com
Secretarial Deptt: Gulab Bhawan (Rear Wing) 3rd Floor, 6A Bahadur Shah Zafar Marg, New Delhi-110002; E-mail:jklc.investors@jkmail.com
4. The Company has fixed 17th August 2023 as the 'cut-off date' for ascertaining the names of
the Members, holding shares either in physical form or in dematerialized form, who will be entitled to
cast their votes electronically during 18th August 2023 (10.00 A.M.) to 23rd August 2023 (5.00 P.M.),
i.e. remote e-Voting and also during the AGM in respect of business to be transacted at the aforesaid
AGM.

You are requested to disseminate the above intimation on your website.

Thanking you
Yours faithfully,
For JK Lakshmi Cement Limited
Digitally signed by
AMIT AMIT CHAURASIA
CHAURASIA Date: 2023.08.01
16:39:14 +05'30'

(Amit Chaurasia)
Company Secretary

Encl: a.a.
Cc:
National Securities Depository Ltd. (E-mail: manish.sharma@nsdl.co.in)
Central Depository Services (India) Ltd. (E-mail: GreenInitiative@cdslindia.com)
MCS Share Transfer Agent Ltd. (E-mail: admin@mcsregistrars.com)

Admin Office: Nehru house, 4, Bahadur Shah Zafar Marg, New Delhi-110 002: Phone: 66001142 / 66001112; E-mail; jklc.customercare@jkmail.com;
Website: www.jklakshmicement.com, CIN: L74999RJ1938PLC019511
Regd. & Works Office: Jaykaypuram, Dist. Sirohi, Rajasthan; Phone: 02971-244409/ 244410; Fax: 02971-244417; E-mail: lakshmi_cement@lc.jkmail.com
Secretarial Deptt: Gulab Bhawan (Rear Wing) 3rd Floor, 6A Bahadur Shah Zafar Marg, New Delhi-110002; E-mail:jklc.investors@jkmail.com
 CIN: L74999RJ1938PLC019511
Nehru House, 4, Bahadur Shah Zafar Marg, New Delhi -110 002
Email: jklc.investors@jkmail.com; Website: www.jklakshmicement.com
Phone: 91-11-68201862-866-894

NOTICE
NOTICE is hereby given that the 83rd Annual General the Financial Year ended 31st March 2023, which
Meeting of the Members of JK LAKSHMI CEMENT LIMITED exceeds fty percent of the total annual remuneration
will be held on Thursday, the 24th August 2023 at 2:30 P.M. payable to all Non-executive Directors of the Company.
Indian Standard Time, through Video Conferencing (VC)/ RESOLVED FURTHER that the Board of Directors of the
Other Audio Visual Means (OAVM), to transact the Company or any committee thereof be and is hereby
following business: authorized to do all acts, deeds, matters and things as it
1. To receive, consider and adopt the Audited Financial may deem necessary and/or expedient to give effect to
Statements of the Company (including audited this Resolution, including but not limited to settle any
consolidated nancial statements) for the Financial question or difculty in connection therewith and
Year ended 31st March 2023 and the Reports of the incidental thereto.”
Board of Directors and Auditors thereon. 5. To consider and if thought t to pass, the following as
2. To declare Dividend. an Ordinary Resolution:
3. To consider and if thought t to pass, the following as a “RESOLVED that pursuant to the provisions of Section
Special Resolution: 148 of the Companies Act, 2013 and the Companies
“RESOLVED that pursuant to the provisions of Section (Audit and Auditors) Rules, 2014, including any
152 of the Companies Act, 2013 (the Act) & statutory modication or re-enactment thereof for the
Regulations 17(1A) and 27 of the SEBI (Listing time being in force, remuneration of M/s R.J. Goel &
Obligations and Disclosure Requirements) Regulations, Co., the Cost Accountants, appointed by the Board of
2015 and other applicable provisions, if any, including Directors of the Company as the Cost Auditors, to
any statutory modication or re-enactment thereof for conduct the audit of the cost records of the Company
the time being in force, consent of the Members of the for the Financial Year 2023-24 commencing 1st April
Company be and is hereby accorded for re- 2023, of ` 2.25 Lakh (Rupees Two Lakh and Twenty
appointment of Shri Bharat Hari Singhania (DIN: Five Thousand) only per annum, excluding GST, as
00041156), Chairman, aged 85 years, as Director of applicable and reimbursement of travelling and other
the Company liable to retire by rotation and out-of-pocket expenses actually incurred by the said
continuation of his appointment as Non-executive Auditors in connection with the Cost Audit, be and is
Director of the Company on the terms and conditions hereby ratied and conrmed.
as set out in the Statement under Section 102 of the Act RESOLVED FURTHER that the Board of Directors of the
annexed hereto. Company be and is hereby authorised to do all acts,
RESOLVED FURTHER that the Board of Directors of the deeds and things as may be deemed necessary and/ or
Company or any committee thereof be and is hereby expedient to give effect to this Resolution.”
authorized to do all acts, deeds, matters and things as it 6. To consider and if thought t to pass, the following as a
may deem necessary and/or expedient to give effect to Special Resolution:
this Resolution, including but not limited to settle any "RESOLVED that in supersession of the resolution
question or difculty in connection therewith and passed by the Company at the Annual General Meeting
incidental thereto.” held on 17th August 2022, pursuant to the provisions of
4. To consider and if thought t to pass, the following as a Section 180(1)(c) and other applicable provisions, if
Special Resolution: any, of the Companies Act, 2013, including any
“RESOLVED that pursuant to the provisions of statutory modication or re-enactment thereof for the
Regulation 17(6)(ca) of the SEBI (Listing Obligations time being in force, consent of the Members of the
and Disclosure Requirements) Regulations, 2015 and Company be and is hereby accorded to the Board of
other applicable provisions, if any, including any Directors of the Company, including a Committee
statutory modication or re-enactment thereof, for the thereof (hereinafter referred to as the ‘Board’) for
time being in force, consent of the Members of the borrowing moneys (apart from temporary loans
Company be and is hereby accorded for payment of obtained from the Company's Bankers in the ordinary
annual remuneration to Shri Bharat Hari Singhania, course of business), in excess of the aggregate of its
Chairman (Non-executive Director) of the Company, for paid-up share capital, securities premium and free

01
 reserves, that is to say, reserves not set apart for any the respective Financial Institutions, Banks and other
specic purpose, as the Board may, from time to time, Lending Institutions and Debenture holders and/or
deem necessary and/or expedient for the purpose of Trustees under the Loan/Subscription Agreement(s)
the Company, provided that the sum or sums so entered into/to be entered into by the Company in
borrowed and remaining outstanding at any one time respect of the said Loans, Debentures or other nancial
on account of principal shall not exceed in the instruments or assistance.
aggregate ` 7,000 Crore (Rupees Seven Thousand RESOLVED FURTHER that the Board of the Company, be
Crore) only. and is hereby authorised to nalise the terms and
RESOLVED FURTHER that the Board of the Company be conditions with the Financial Institutions, Banks and
and is hereby authorized to do all acts, deeds, matters other Lending Institutions or Funds/ Lenders or
and things as it may deem necessary and/or expedient Debenture Trustees and the documents for creating
to give effect to this Resolution, including but not mortgage(s) and/or charge(s) as aforesaid and to do all
limited to settle any question or difculty in connection acts, deeds, matters and things as it may deem
therewith and incidental thereto.” necessary and/or expedient to give effect to this
7. To consider and if thought t to pass, the following as a Resolution, including but not limited to settle any
Special Resolution: question or difculty in connection therewith and
incidental thereto.”
"RESOLVED that in supersession of the resolution
passed by the Company at the Annual General Meeting 8. To consider and if thought t to pass, the following as a
held on 17th August 2022, pursuant to the provisions of Special Resolution:
Section 180(1)(a) and other applicable provisions, if “RESOLVED that pursuant to the provisions of Section
any, of the Companies Act, 2013, including any 186 of the Companies Act, 2013 (the Act) read with the
statutory modication or re-enactment thereof for the Companies (Meetings of Board and its Powers) Rules,
time being in force, consent of the Members of the 2014 and other applicable provisions, if any, of the Act,
Company be and is hereby accorded to the Board of including any statutory modication or re-enactment
Directors of the Company, including a Committee thereof for the time being in force and subject to such
thereof (hereinafter referred to as the ‘Board’) to approvals as may be required in this regard, consent of
mortgage and/or charge (by way of rst, second or the Members of the Company be and is hereby
other subservient charge as may be agreed to between accorded to the Board of Directors of the Company,
the Company and the Lenders and/or Debenture including a Committee thereof (hereinafter referred to
Trustees), all the immovable and movable properties, as the ‘Board’) to: (i) give any loan to any person or
present and future, pertaining to any one or more of other body corporate; (ii) give any guarantee or provide
the Company's Units and/or any other Undertakings of security in connection with a loan to any other body
the Company wheresoever situate and the whole or corporate or person; and (iii) acquire by way of
substantially the whole of any one or more of the said subscription, purchase or otherwise, the securities of
Units and / or Undertakings of the Company, to or in any other body corporate, from time to time in one or
favour of any Financial Institution, Bank and other more tranches, as the Board at its absolute discretion
Lending Institution or Fund, Trustee for Debentures, to deem benecial and in the interest of the Company, in
secure their respective Rupee and Foreign Currency excess of the limits prescribed under Section 186 of the
Loans or other Financial assistance lent, granted and Act, for an amount not exceeding `10,000 Crore
advanced or agreed to be lent, granted and advanced (Rupees Ten Thousand Crore) only, outstanding at any
to the Company or the Debentures, Bonds or other point of time, notwithstanding that the aggregate
nancial instruments issued and allotted or as may be amount of loans & guarantees given or security
issued by the Company and subscribed to or agreed to provided and investments made, along with the
be subscribed to by such Institutions/Banks/Funds, or investments, loans, guarantees or security proposed to
any other persons, of such amount(s) not exceeding be made or given by the Board may exceed the limits
` 7,000 Crore (Rupees Seven Thousand Crore) only, prescribed under Section 186 of the Act.
in the aggregate, on account of principal, together RESOLVED FURTHER that the Board of the Company be
with interest thereon at the respective agreed and is hereby authorized to do all acts, deeds, matters
rates, compound interest, additional interest, and things as it may deem necessary and/or expedient
liquidated damages, commitment charges, premia on to give effect to this Resolution, including but not
prepayment, remuneration of the Trustees, costs, limited to settle any question or difculty in connection
charges and other moneys payable by the Company to therewith and incidental thereto.

Regd. Ofce:
Jaykaypuram-307 019 By Order of the Board
Distt. Sirohi (Rajasthan)
Amit Chaurasia
Date: 27th July, 2023 Company Secretary

02
NOTES
(1) The Statement pursuant to Section 102 of the Committee, Nomination and Remuneration Committee
Companies Act, 2013 (Act) in respect of Item Nos. 3 to 8 and Stakeholders Relationship Committee, Auditors etc.
of the Notice set out above, is annexed hereto. who are allowed to attend the AGM without restriction
(2) The Ministry of Corporate Affairs (MCA) has vide its on account of rst come rst served basis.
General Circular No. 20/2020 dated 5th May 2020 (6) The Register of Directors and Key Managerial Personnel
read with General Circular No. 10/2022 dated 28th and their shareholding maintained under Section 170 of
December 2022, allowed companies whose Annual the Act, the Register of Contracts or Arrangements in
General Meetings (AGMs) are due in the year 2023, to which the Directors are interested maintained under
conduct their AGMs on or before 30th September 2023, Section 189 of the Act and the relevant documents
in accordance with the requirements laid down in para referred to in the Notice will be available electronically
3 and 4 of the General Circular No. 20/2020 (MCA for inspection by the Members during the AGM.
Circulars). The Securities and Exchange Board of India All the documents referred to in this Notice will also be
(SEBI) also issued a Circular No. SEBI/HO/CFD/PoD- available electronically for inspection without any fee by
2/P/CIR/2023/4 dated 5th January 2023 (SEBI Circular). In the Members from the date of circulation of this Notice
compliance with these Circulars, provisions of the Act up to the date of the AGM.
and the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (SEBI Listing Members seeking to inspect such documents can send
Regulations), the 83rd Annual General Meeting (AGM) of an e-mail to jklc.investors@jkmail.com.
the Company is being conducted through VC/OAVM Further, Members seeking any information with regard
Facility, which does not require physical presence of to the accounts or any matter to be considered at
Members at a common venue. The deemed venue for the AGM, are requested to write to the Company
the 83rd AGM shall be the Registered Ofce of the on or before 17th August 2023 through email at
Company. jklc.investors@jkmail.com . The same will be replied by
(3) Pursuant to the provisions of the Act, a Member entitled the Company suitably.
to attend and vote at the AGM is entitled to appoint a (7) Dispatch of Notice of AGM and Annual Report
proxy to attend and vote on his/her behalf and the proxy through electronic mode: In compliance with the MCA
need not be a Member of the Company. Since this AGM Circulars and SEBI Circular, Notice of the AGM along
is being held through VC/OAVM pursuant to the MCA with the Annual Report 2022-23 is being sent only
and SEBI Circulars, physical attendance of Members has through electronic mode to those Members whose
been dispensed with. Accordingly, the facility for email addresses are registered with the Company/
appointment of proxies by the Members will not be Depository Participants (DP) unless any Member has
available for the AGM. Hence, Proxy Form and requested for a physical copy of the same. Members may
Attendance Slip including Route Map are not annexed note that the Notice and Annual Report 2022-23 will
to this Notice. also be available on the Company’s website at
(4) Institutional / Corporate Members (i.e. other than www.jklakshmicement.com; website of the Stock
individuals, HUF, NRI, etc.) are required to send a Exchanges i.e. BSE Limited and National Stock
scanned copy (PDF / JPG Format) of their respective Exchange of India Limited at www.bseindia.com and
Board or governing body Resolution / Authorization www.nseindia.com respectively. Notice is also available
etc., authorizing their representative to attend the AGM on the website of Depository i.e. Central Depository
through VC / OAVM on their behalf and to vote through Services (India) Limited (CDSL) at www.evotingindia.com.
e-Voting. The said Resolution / Authorization shall be In case any member is desirous of obtaining hard copy of
sent at jklc.investors@jkmail.com. the Annual Report for the Financial Year 2022-23
(5) The Members can join the AGM held through VC/OAVM and Notice of the 83rd AGM of the Company, may
fteen (15) minutes before and after the scheduled time send request to the Company’s email address at
of the commencement of the Meeting by following the jklc.investors@jkmail.com mentioning Folio No./DP ID
procedure mentioned in this Notice. The facility of and Client ID.
participation at the AGM through VC/OAVM will be For receiving Notice and Annual Report from the
made available to at least 1,000 Members on rst come Company electronically, Members are requested to write
rst served basis. This will not include large Shareholders to the Company with details of Folio number/DP ID/
(holding 2% or more shareholding), Promoter/ Promoter Client ID and attaching a self-attested copy of PAN at
group members, Institutional Investors, Directors, Key jklc.investors@jkmail.com or admin@mcsregistrars.com.
Managerial Personnel, the Chairpersons of the Audit

03
(8) INSTRUCTIONS FOR E-VOTING AND JOINING THE module shall be disabled by CDSL for voting
AGM THROUGH VC/ OVAM ARE AS FOLLOWS: thereafter.
(A) In compliance with the provisions of Section 108 of the (ii) Members who have already voted prior to the
Act read with Rule 20 of the Companies (Management meeting date would not be entitled to vote on the
and Administration) Rules, 2014, Regulation 44 of the date of AGM.
SEBI Listing Regulations and SEBI Circular No. (C) Login method for remote e-Voting and joining virtual
SEBI/HO/CFD/CMD/CIR/P/2020/242 dated 9th December meeting for Individual Members holding securities in
2020 in relation to e-Voting Facility provided by Listed demat mode.
Entities, the Company is pleased to provide Members,
In terms of SEBI Circular no. SEBI/HO/CFD/CMD/CIR/P/
facility to exercise their right to vote at the 83rd AGM by
2020/242 dated 9th December 2020 on e-Voting facility
electronic means and the business may be transacted
provided by Listed Entities, e-Voting process has been
through remote e-Voting services provided by CDSL. enabled for all the individual demat account holders, by
Remote e-Voting is optional. The facility of e-Voting shall way of single login credential, through their demat
also be made available at the AGM and Members accounts / websites of Depositories / Depository
attending the AGM who have not cast their vote by Participants (DPs) in order to increase the efciency of
remote e-Voting shall be able to exercise their right to the voting process. Individual demat account holders
cast vote during the AGM. would be able to cast their vote without having to
(B) The instructions for Members for remote e-Voting are register again with the e-Voting service provider (ESP),
as under: thereby, not only facilitating seamless authentication
but also ease and convenience of participating in
(i) The remote e-Voting period begins on Friday, e-Voting process. Members are advised to register /
18th August 2023 (10:00 A.M.) and ends on update their mobile number and e-mail ID with their
Wednesday, 23rd August 2023 (5:00 P.M.). During DPs in order to access e-Voting facility and/or attend
this period, Members of the Company, holding the AGM.
shares either in physical form or in dematerialized
form, as on Thursday, 17th August 2023 i.e. cut-off Individual Members holding securities in demat mode
date, may cast their vote electronically. The e-Voting are allowed to vote through their demat account
maintained with Depositories and DPs.

Type of Members Login Method

Individual Members Users who have opted for Easi/Easiest
holding shares in Demat
mode with CDSL (i) Members, can login through their existing user id and password. Option will be made
available to reach e-Voting page without any further authentication. The users to login to
Easi / Easiest are requested to visit CDSL website www.cdslindia.com and click on login icon
& New System Myeasi Tab.
(ii) After successful login the Easi / Easiest user will be able to see the e-Voting option for
eligible companies where the e-Voting is in progress as per the information provided by
company. On clicking the e-Voting option, the user will be able to see e-Voting page of the
e-Voting service provider for casting your vote during the remote e-Voting period or joining
virtual meeting and voting during the meeting. Additionally, there are also links provided to
access the system of all e-Voting Service Providers, so that the user can visit the e-Voting
service providers’ website directly.
Option to register is available at CDSL website www.cdslindia.com and click on login and New
System Myeasi Tab and then click on registration option.
Alternatively, the user can directly access e-Voting page by providing Demat Account Number
and PAN from a e-Voting link available on www.cdslindia.com home page. The system will
authenticate the user by sending OTP on registered Mobile and Email as recorded in the Demat
Account. After successful authentication, user will be able to see the e-Voting option where the
e-Voting is in progress and also able to directly access the system of all e-Voting Service Providers.
Individual Members Users registered for NSDL IDeAS facility:
holding shares in demat
mode with NSDL (i) Open web browser by typing the URL: https://eservices.nsdl.com either on a Personal
Computer or on a mobile. Once the home page of e-Services is launched, click on the
“Benecial Owner” icon under “Login” which is available under ‘IDeAS’ section.

04
Type of Members Login Method
(ii) A new screen will open. You will have to enter your User ID and Password. After successful
authentication, you will be able to see e-Voting services.
(iii) Click on “Access to e-Voting” under e-Voting services and you will be able to see e-Voting
page. Click on company name or e-Voting service provider name and you will be
re-directed to e-Voting service provider website for casting your vote during the remote
e-Voting period or joining virtual meeting and voting during the meeting.
Users not registered for IDeAS e-Services:
If the user is not registered for IDeAS e-Services, option to register is available at
https://eservices.nsdl.com. Select “Register Online for IDeAS” Portal or click at
https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp
(i) Visit the e-Voting website of NSDL. After successfully registering on IDeAS, open web browser
by typing the URL: https://www.evoting.nsdl.com/ either on a Personal Computer or on a
mobile. Once the home page of e-Voting system is launched, click on the icon “Login” which is
available under ‘Shareholder/Member’ section.
(ii) A new screen will open. You will have to enter your User ID (i.e. your sixteen digit demat
account number held with NSDL), Password/OTP and a Verication Code as shown on the
screen. After successful authentication, you will be redirected to NSDL Depository site
wherein you can see e-Voting page.
(iii) Click on company name or e-Voting service provider name and you will be redirected to
e-Voting service provider website for casting your vote during the remote e-Voting period
or joining virtual meeting and voting during the meeting.
Individual Members You can also login using the login credentials of your demat account through your Depository
(holding Shares in demat Participant registered with NSDL / CDSL for e-Voting facility. After successful login, you will be
mode) login through able to see e-Voting option.
their Depository
Participants (DPs) Once you click on e-Voting option, you will be redirected to NSDL / CDSL Depository website
after successful authentication, wherein you can see e-Voting feature.
Click on company name or e-Voting service provider name and you will be redirected to
e-Voting service provider website for casting your vote during the remote e-Voting period or
joining virtual meeting and voting during the meeting.

Important note: Members who are unable to retrieve user ID / Password are advised to use Forget user ID and Password option
available at abovementioned website(s).
Individual Members holding shares in demat mode who need assistance for any technical issues related to login through
Depository i.e. NSDL and CDSL may reach out to below helpdesk:

Login type Helpdesk details

Individual Members holding shares in Demat Members facing any technical issue in login can contact CDSL helpdesk
mode with CDSL by sending a request at helpdesk.evoting@cdslindia.com or contact at
toll free no. 1800 22 55 33
Individual Members holding shares in Demat Members facing any technical issue in login can contact NSDL helpdesk
mode with NSDL by sending a request at evoting@nsdl.co.in or call at toll free no.:
022-4886 7000 and 022-2499 7000

(D) Login method for e-Voting and joining virtual meeting by Members (other than Individual Members) holding shares
in Demat mode and all Members holding shares in Physical mode
The Members should log on to the e-Voting website www.evotingindia.com
Click on “Shareholders/Members” module.
Now enter your User ID
(i) For CDSL: 16 digits beneciary ID;

05
 (ii) For NSDL: 8 Character DP ID followed by 8 Digits Client ID;
(iii) Members holding Shares in Physical Form should enter Folio Number registered with the Company.
(iv) Next enter the Image Verication as displayed and Click on Login.
(v) If you are holding shares in Demat form and had logged on to www.evotingindia.com and voted on an earlier
e-Voting of any company, then your existing password is to be used.
(vi) If you are a rst time user follow the steps given below:

For Members holding shares in Demat Form (other than Individuals) and Physical Form
PAN Enter your 10 digit alpha-numeric PAN issued by Income Tax Department (Applicable for both
Demat Members as well as Physical Members)
Members who have not updated their PAN with the Company/Depository Participant are
requested to use the sequence number sent by Company/MCS Share Transfer Agent Ltd.,
Registrar and Share Transfer Agent (RTA) or contact Company/RTA.
Dividend Bank Details OR Enter the Dividend Bank Details or Date of Birth (in dd/mm/yyyy format) as recorded in your
Date of Birth (DOB) demat account or in the Company’s records in order to login. If both the details are not
recorded with the depository or company, please enter the member id / folio number in the
Dividend Bank details eld.

(vii) After entering these details appropriately, click on “SUBMIT” tab.

(viii) Members holding shares in physical form will then directly reach the Company selection screen. However, Member
holding shares in demat form will now reach ‘Password Creation’ menu wherein they are required to mandatorily
enter their login password in the new password eld. Kindly note that this password is to be also used by the demat
holders for voting on resolutions of any other company on which they are eligible to vote, provided that company
opts for e-voting through CDSL platform. It is strongly recommended not to share your password with any other
person and take utmost care to keep your password condential.
(ix) For Members holding shares in physical form, the details can be used only for e-Voting on the resolutions contained
in this Notice.
(x) Click on the EVSN for JK Lakshmi Cement Limited.
(xi) On the voting page, you will see “RESOLUTION DESCRIPTION” and against the same the option “YES/NO” for voting.
Select the option YES or NO as desired. The option YES implies that you assent to the Resolution and option NO
implies that you dissent to the Resolution.
(xii) Click on the “RESOLUTIONS FILE LINK” if you wish to view the entire Resolution details.
(xiii) After selecting the resolution which you have decided to vote on, click on “SUBMIT”. A conrmation box will be
displayed. If you wish to conrm your vote, click on “OK”, else to change your vote, click on “CANCEL” and
accordingly modify your vote.
(xiv) Once you “CONFIRM” your vote on the resolution, you will not be allowed to modify your vote.
(xv) You can also take a print of the votes cast by clicking on “Click here to print” option on the Voting page.
(xvi) If a demat account holder has forgotten the login password, enter the User ID and the image verication code and
click on Forgot Password and enter the details as prompted by the system.
(9) Information and Instructions for Members attending the AGM through VC/OVAM are as under:
(A) Member will be provided with a facility to attend the AGM through VC/OAVM through the CDSL e-Voting system. The
link for VC/OAVM will be available in Shareholder/ Members login where the EVSN of Company will be displayed.
(B) Members are encouraged to join the Meeting through Laptops / IPads for better experience.
(C) Further, Members will be required to allow Camera and use Internet with a good speed to avoid any disturbance
during the meeting.
(D) Please note that Participants connecting from Mobile Devices or Tablets or through Laptops connecting via Mobile
Hotspot may experience Audio/Video loss due to uctuation in their respective network. It is therefore
recommended to use Stable Wi-Fi or LAN Connection to mitigate any kind of aforesaid glitches.

06
 (E) Members who would like to express their views/ask questions during the AGM may register themselves as a speaker
by sending their request during 16th August 2023 to 20th August 2023, mentioning their name, demat account
number/folio number, registered email id and mobile number at jklc.investors@jkmail.com. The Members who do
not wish to speak during the AGM but have queries may send their queries on or before 17th August 2023
mentioning their name, demat account number/folio number, email id and mobile number at
jklc.investors@jkmail.com. These queries will be replied by the Company suitably.
(F) Those Members who have registered themselves as a speaker will only be allowed to express their views/ask
questions during the meeting. The Company reserves the right to restrict the number of questions and number of
speakers, depending upon availability of time as appropriate for smooth conduct of the AGM.
(G) In case of joint holders attending the Meeting, only such joint holder who is higher in the order of names will be
entitled to vote at the AGM.
(10) Members attending the AGM through VC / OAVM shall be reckoned for the purpose of quorum under Section 103 of
the Act.
(11) Instructions for Members for e-Voting during the AGM are as under:-
(A) The procedure for e-Voting on the day of the AGM is same as the instructions mentioned above for remote e-Voting.
(B) Only those Members, who are present in the AGM through VC/OAVM facility and have not casted their vote on the
Resolutions through remote e-Voting and are otherwise not barred from doing so, shall be eligible to vote through
e-Voting system available during the AGM.
(C) If Votes are cast by the Members through the e-Voting available during the AGM and if the same Members have not
participated in the meeting through VC/OAVM facility, then the votes cast by such Members shall be considered
invalid as the facility of e-Voting during the meeting is available only to the Members attending the meeting.
(D) Members who have voted through remote e-Voting will be eligible to attend the AGM. However, they will not be
eligible to vote at the AGM.
(12) Other Common Instructions:
(A) Facility for Non – Individual Members and Custodians – Remote e-Voting.
• Non-Individual Members (i.e. other than Individuals, HUF, NRI etc.) and Custodians are required to log on to
www.evotingindia.com and register themselves in the “Corporates” module.
• A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed to
helpdesk.evoting@cdslindia.com.
• After receiving the login details a Compliance User should be created using the admin login and password. The
Compliance User would be able to link the account(s) for which they wish to vote on.
• The list of accounts linked in the login will be mapped automatically and can be delink in case of any wrong
mapping.
• A scanned copy of the Board Resolution and Power of Attorney (POA) which they have issued in favour of the
Custodian, if any, should be uploaded in PDF format in the system for the scrutinizer to verify the same.
• Alternatively, Non Individual Members are required to send the relevant Board Resolution/Authority letter etc.
together with attested specimen signature of the duly authorized signatory who are authorized to vote, to the
Scrutinizer and to the Company at the email address at jklc.investors@jkmail.com, if they have voted from
individual tab and not uploaded same in the CDSL e-voting system for the scrutinizer to verify the same.
(B) If you have any queries or issues regarding attending AGM & e-Voting from the e-Voting System, you may refer the
Frequently Asked Questions (“FAQs”) and e-Voting manual available at www.evotingindia.com, under HELP
section or contact Mr. Rakesh Dalvi, Sr. Manager, Central Depository Services (India) Limited, A Wing,
25th Floor , Marathon Futurex, Mafatlal Mill Compounds, N M Joshi Marg, Lower Parel (East), M u m b a i - 4 0 0 0 1 3
o r s e n d a n e m a i l t o helpdesk.evoting@cdslindia.com or call on 1800225533.
(C) The voting rights of Members shall be in proportion to their shareholding in the paid up equity share capital of the
Company as on the Cut-off date and a person who is not a Member as on the Cut-off date should treat the Notice for
information purpose only.
(D) Any person, who acquires shares of the Company and become Member of the Company after dispatch of the Notice
and holding shares as on the cut-off date may follow the same instructions as mentioned above for e-Voting.
(E) The Company has opted to provide the same electronic voting system at the Meeting, as used during remote
e-Voting, and the said facility shall be operational till all the resolutions proposed in the Notice are considered and
voted upon at the Meeting and may be used for voting only by the Members holding shares as on the cut-off date
who are attending the Meeting and who have not already cast their vote(s) through remote e-Voting.

07
 (F) The Company has appointed Shri Ronak Jhuthawat (Certicate of Practice No. 12094) of M/s Ronak Jhuthawat &
Co., Company Secretary in practice, as Scrutinizer to scrutinize the process of remote e-Voting and voting on the
date of AGM in a fair and transparent manner.
(G) The Scrutiniser will, after the conclusion of e-Voting at the Meeting, scrutinise the votes cast at the Meeting and
votes cast through remote e-Voting, make a consolidated Scrutiniser’s Report and submit the same to the Chairman
of the Company or a person authorized by him in writing, who shall countersign the same. The results declared
along with the consolidated Scrutinizer’s Report shall be placed on the Company’s website at
https://www.jklakshmicement.com/ and on the website of CDSL www.evotingindia.com and shall simultaneously
be forwarded to the Stock Exchanges. The results of the voting will also be displayed at the Notice Board at the
Registered and the Administrative Ofce of the Company.
(H) A person whose name is recorded in the Register of Members or in the Register of Benecial Owners maintained by
the Depositories as on the cut-off date and who has not cast vote by remote e-Voting and being present at the AGM
only shall be entitled to vote at the AGM.
(13) The Register of Members and the Share Transfer Books of the Company shall remain closed from 12th August 2023 to
24th August 2023 (both days inclusive).
(14) Dividend: The dividend of ` 3.75 per Equity Share of ` 5/- each (75%) as recommended by the Board of Directors, if
declared at the AGM, will be paid within three to four weeks of the date of the AGM. In respect of Shares held in physical
mode, the Dividend will be paid to the Members whose names are borne on the Company’s Register of Members on
11th August 2023 and in respect of Shares held in dematerialised form, the Dividend will be paid to all the Benecial Owners
(‘BOs’) as at the end of the day on 11th August 2023 as per the list of the BOs to be received from the Depositories for
this purpose.
Pursuant to Finance Act, 2020, dividend income is taxable in the hands of Members w.e.f. 1st April, 2020 and the Company
is required to deduct tax at source from dividend paid to Members at the prescribed rates. For the prescribed rates for
various categories, please refer to the Finance Act, 2020 and the amendments thereof as well as our detailed
communication already sent to the Members through E-mail which is available at https://www.jklakshmicement.com/tds-
communication-2023-24/. The Members are requested to update their PAN with their Depository Participant (if shares held
in electronic form) and Company / RTA (if shares held in physical form).
STATEMENT UNDER SECTION 102 OF THE COMPANIES ACT, 2013
Item No. 3 & 4
The Members of the Company at the Annual General Meeting (AGM) held on 26th August 2021 had already approved
continuation of Shri Bharat Hari Singhania (DIN 00041156), Chairman, aged 85 years, as a Non-executive, Non-Independent
Director of the Company w.e.f 1st October 2021, liable to retire by rotation. Pursuant to the provisions of Section 152 of the
Companies Act, 2013 (Act), Shri Singhania shall retire by rotation at this AGM and being eligible, has offered himself for re-
appointment as Director of the Company, liable to retire by rotation. Pursuant to the provisions of Regulation 17(1A) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI Listing Regulations’), the Company is required to take
approval of the Members by means of a Special Resolution to appoint a person or continue the directorship of any person as a
Non-executive Director who has attained the age of seventy-ve years.
Shri Bharat Hari Singhania is an Industrialist with over 66 years of experience in managing various industries including Cement,
Automotive Tyres, Paper, Jute, Synthetics, Paints, high yielding Hybrid Seeds, Audio Magnetic Tapes, Sugar etc. Shri Singhania is
the President of JK Organisation, an Industrial Group founded over 100 years ago. The Group is a multi-business, multi-product
and multi-location group. Shri Singhania being one of the constituents of the Promoter Group, has been Managing Director of
the Company since 1994 and elevated to the position of Chairman in 2013. In 2021, Shri Singhania stepped down from the
position of Managing Director and on the request of the Board of Directors, Shri Singhania agreed to continue as Non-Executive
Chairman w.e.f. 1st October 2021 and render his services to the Company, from time to time, on strategic and development issues
and other matters of importance.
Shri Bharat Hari Singhania is involved in policy planning, vision and strategy and long-term developmental activities of the
Company. With a progressive attitude and inherent leadership skills, Shri Singhania has provided strategic direction to the
Company and immensely contributed in its functioning and growth besides Corporate Governance and Board coordination.
Under the visionary leadership of Shri Bharat Hari Singhania, the Company has undertaken various Capacity Expansion Projects
and also made a foray into other value added products viz. RMC, POP, AAC Blocks etc. The Company has achieved new milestones
in its efciency improvement. Further, under the mature guidance of Shri Singhania, the Company continues to be one of the least
cost producers of Cement in the country. The efciency parameters of the Company with respect to power consumption and fuel
consumption continues to be one of the best in the industry. The Company’s captive power generation has also touched a new
high thereby reducing our cost of operations besides enabling to meet the renewable energy obligation. Under his able
leadership, the Revival & Rehabilitation Project of Udaipur Cement Works Ltd., a material subsidiary of the Company (UCWL),
completed at a Capex of ` 825 Crore by refurbishing the Clinker line and adding another Cement Mill to take its Cement Capacity

08
to 1.6 Million Tonnes with Clinker Capacity of 1.2 Million Tonnes. UCWL has since turned around into a Protable Company. In
2021, UCWL had completed a Balancing Project of Enhancing Clinker Capacity to 1.5 Million Tonnes and Cement Capacity to 2.2
Million Tonnes. Further, UCWL has taken up implementation of an Expansion Project for putting up a New Clinker Line of 1.50
Million Tonnes and Additional Cement Capacity of 2.50 Million Tonnes. The Project envisages a Capital Outlay of ` 1,650 Crore
and is expected to be implemented in 2024. After the completion of this Expansion Project, UCWL’s Clinker capacity would stand
increased to 3 Million Tonnes and Cement capacity to 4.70 Million Tonnes.
Shri Bharat Hari Singhania has laid great emphasis on promoting better services to the Shareholders and took several investor
friendly measures with a view to reward the Shareholders including successful completion of Buy-Back in February 2013. The
Company has also been regularly paying dividend to the Shareholders since 2006-07. The Company is meeting all its statutory
obligations for all the years under his leadership. The Company has not made any default in repayment of its nancial obligations.
The Company does not have grievances of investors/ shareholders, except few minor grievances of routine nature.
As Chairman of the Board, Shri Singhania harmoniously conducts the meetings, actively participates in discussions and ensures
that the polices, processes and compliances are strengthened in the Company, benchmarked with the best and duly observed.
Shri Singhania has held the business strong in the midst of intensifying competition in the cement industry. Shri Singhania ensures
that the Board size and constitution are in conformity with the Company’s size and the SEBI Listing Regulations, including setting
up of various Board’s Committees and dening their role and responsibilities, in compliance of the Act and the SEBI Listing
Regulations.
Shri Bharat Hari Singhania is also the Chairman of JK Paper Ltd., JK Agri Genetics Ltd. & Bengal & Assam Company Ltd. and
Director of JK Tyre & Industries Ltd. (Listed companies). Further, he is also Director of several other companies and Chancellor of JK
Lakshmipat University, Jaipur. He is past President of Indian Chamber of Commerce and past Chairman of Indian Jute Mills
Association & Indian Jute Industries Research Association, Kolkata and has been involved with a large number of industry and
professional bodies. Shri Singhania has been a member of various Government bodies and Trade delegations. He has travelled
widely in India & overseas and has intense knowledge of various industries and nance sector. Besides, Shri Singhania is heading
various philanthropic organisations of JK Group such as Lakshmipat Singhania Education Foundation, Lakshmipat Singhania
Medical Foundation and Pushpawati Singhania Hospital & Research Institute. He is also actively associated with many other
Academic Institutions which are run by JK Group. Shri Singhania has a passion for promoting educational institutions, CSR, health
care, cultural and philanthropic activities in various parts of the country.
Considering Shri Bharat Hari Singhania’s deep knowledge of the industry and rich business experience, the Board strongly believes
that it will be in the best interest of the Company to continue Shri Singhania, Chairman, as Non-executive Director of the
Company. To enable Shri Singhania to discharge his duties as Non-executive Chairman of the Company effectively and smoothly,
he is entitled to maintain a Chairman's ofce at Company’s expense and allowed reimbursement of expenses incurred in
performance of his duties, as permitted under Regulation 27 read with schedule II, Part-E (Para A) of the SEBI Listing Regulations.
Accordingly, as recommended by the Nomination and Remuneration Committee and approved by the Board of Directors (Board)
of the Company, he would continue to be reimbursed certain expenses incurred for ofcial purposes such as travelling,
maintenance of Chairman's ofce with support staff and facilities, including free furnished residential accommodation and other
amenities; car with driver, club membership, reimbursement of medical expenses in India or abroad, telephone and
communication facilities and such other reimbursements, as may be decided by the Board from time to time.
Further, pursuant to Regulation 17(6)(ca) of the SEBI Listing Regulations, a listed entity is required to obtain approval of the
members of the company by way of special resolution for payment of annual remuneration to a single non-executive director
exceeding fty percent of the total annual remuneration payable to all non-executive directors of the company. Shri Bharat Hari
Singhania is to be paid a Commission of ` 250 Lakh for the Financial Year ended 31st March 2023, which is within the limits
prescribed under the Act, as already approved by the Members of the Company at AGM held on 26th August 2021. Since the
annual remuneration payable to Shri Singhania, Chairman (Non-executive Director) exceeds fty percent of the total annual
remuneration payable to all Non-executive Directors of the Company for the Financial Year ended 31st March 2023, approval of
the Members of the Company is also required by way of Special Resolution for payment of above annual remuneration to
Shri Singhania. As a Non-executive Chairman of the Company, Shri Singhania continues to make his services available to the
Company from time to time and has been providing valuable guidance on various Strategic & Development Issues and other
matters of importance. Further, Shri Singhania’s extensive experience of various industries, including the Cement Industry has
been instrumental in helping the Company towards both short term growth as well as long term sustainability. Shri Singhania
invests considerable time in reviewing the operations and performance of the Company and his interactions with senior leaders
and his role in building a talent pool in the Company, contributes to maximise stakeholders’ value. Against the above services
being rendered by Shri Singhania on a continuous basis, he is not drawing any xed remuneration from the Company.
Considering the stature of Shri Singhania and his contribution as Chairman of the Company as explained above, the Board deems
it appropriate to recognise his contribution and deems it fair to remunerate him with the above proposed remuneration.
The Resolutions are accordingly recommended for approval of the Members by means of Special Resolutions.
Except Shri Bharat Hari Singhania, Chairman & Dr. Raghupati Singhania (Brother of Shri Bharat Hari Singhania), Director and their
relatives to the extent of their shareholding, if any, in the Company, none of the other Directors, Key Managerial Personnel of the
Company and/or their relatives are in any way concerned or interested, nancially or otherwise in the aforesaid Special
Resolutions.

09
The other disclosures relating to Shri Bharat Hari Singhania, as required under the SEBI Listing Regulations and Secretarial
Standard-2 issued by the Institute of Company Secretary of India are as under:
Shri Bharat Hari Singhania, Graduate, appointed on the Board of the Company w.e.f 30th March 1994. He does not hold
Membership/ Chairmanship of Audit Committee and Stakeholders Relationship Committee of other Public companies. He has not
resigned from the directorship of any listed company in last three years. He holds 2,06,872 Equity Shares of the Company
[including 24 shares held as Karta of Shri Bharat Hari Singhania (HUF)]. He has attended all the four Board Meetings held during
the F.Y. 2022-23. Remuneration drawn: For the F.Y. 2022-23, sitting fees of ` 6.65 Lakh has been paid to him for attending Board /
Committees’ Meetings. Remuneration proposed: He will be paid Sitting Fees for attending the Board / Committees’ Meetings and
Commission on Net Prots, if any.
Item No. 5
The Board of Directors of the Company at its meeting held on 19th May 2023, appointed M/s R.J. Goel & Co., Cost Accountants as
the Cost Auditors, as recommended by the Audit Committee, to conduct the Cost Audit of the cost records of the Company for
the Financial Year 2023-24 commencing from 1st April 2023 at a remuneration as mentioned in the Resolution.
Pursuant to Section 148 of the Companies Act, 2013, remuneration payable to the Cost Auditors is required to be ratied by the
Members of the Company. The Resolution is accordingly recommended for approval of the Members by means of an Ordinary
Resolution.
None of the Directors, Key Managerial Personnel of the Company and/or their relatives are in any way concerned or interested,
nancially or otherwise, in the aforesaid Resolution.
Item No. 6
The Members of the Company at Annual General Meeting (AGM) held on 17th August 2022, had authorised the Board of
Directors of the Company to continue to borrow for the purposes of the Company, moneys in excess of its paid-up share capital,
securities premium and free reserves, upto an amount not exceeding ` 4,000 Crore, at any point of time pursuant to Section
180(1)(c) of the Companies Act, 2013 (Act).
As on date, the actual sanctioned borrowing limits to the Company (inclusive of undrawn limits) by various Lenders / Financial
Institutions are approx. ` 3,400 Crore, which is within the limit of ` 4,000 Crore approved by the Members of the Company at
their AGM held on 17th August 2022.
In order to achieve long term strategic and business objectives, the Company is exploring various organic and inorganic growth
opportunities, including Expansion Projects envisaged by the Company from time to time. With a view to facilitate funding of the
above growth opportunities by way of issuance of Bonds / Debentures and / or availing nancial assistance by way of Term Loans,
Working Capital arrangements, etc., it is considered necessary to increase the said borrowing limit to ` 7,000 Crore in the
aggregate, outstanding at any point of time.
Pursuant to Section 180(1)(c) of the Act, the Board can exercise borrowing powers, in excess of its paid-up share capital, securities
premium and free reserves, with the approval of Members of the Company by way of a Special Resolution. The Resolution is
accordingly recommended for approval of the Members as aforesaid.
None of the Directors, Key Managerial Personnel of the Company and/or their relatives are concerned or interested, nancially or
otherwise, in the aforesaid Resolution.
Item No. 7
The Members of the Company at Annual General Meeting held on 17th August 2022, had authorised the Board of Directors of the
Company to continue to create mortgage and/or charge on the immovable and movable properties of the Company in favour of
the Lenders to secure their nancial assistance not exceeding ` 4,000 Crore, in the aggregate, pursuant to Section 180(1)(a) of the
Companies Act, 2013 (Act).
With a view to meet the increasing requirements of funds to achieve long term strategic and business objectives of the Company
as mentioned in the Statement under Section 102 of the Act of Resolution at Sr. No. 6 of this Notice, it may have to resort to
further borrowings from Financial and other Lending Institutions upto a limit of ` 7,000 Crore in the aggregate, at any point of
time. As security for such borrowings, immovable or movable properties of the Company pertaining to any one or more of the
Units and/or Undertakings may have to be mortgaged/ charged in favour of Financial & other Lending Institutions, Lenders and
Debenture Trustees.
Pursuant to Section 180(1)(a) of the Act, the Board can exercise power to create mortgage and/or charge on the immovable and
movable properties of the Company, with the approval of Members of the Company by way of a Special Resolution. The
Resolution is accordingly recommended for approval of the Members as aforesaid.
None of the Directors, Key Managerial Personnel of the Company and/or their relatives are concerned or interested, nancially or
otherwise, in the aforesaid Resolution.

10
Item No. 8
In order to capitulate the various opportunities of the prevailing industry and also to achieve long term strategic & business
objectives of the Company as mentioned in the Statement under Section 102 of the Act of Resolution at Sr. No. 6 of this Notice,
the Board of Directors of the Company propose to make investments in other body corporate(s) or grant loans, give guarantees or
provide security to any other person or body corporate, as and when required.
Pursuant to Section 186 of the Companies Act, 2013 (Act) read with the Rules made thereunder, the Company is permitted to:
(a) give any loan to any person or other body corporate; (b) give any guarantee or provide security in connection with a loan to any
other body corporate or person; and (c) acquire by way of subscription, purchase or otherwise, the securities of any other body
corporate, in excess of 60% of its paid-up share capital, free reserves and securities premium account or 100% of its free reserves
and securities premium account, whichever is more, with approval of Members of the company by way of a Special Resolution.
As per the Audited Balance Sheet of the Company as at 31st March 2023, 60% of the paid-up share capital, free reserves and
securities premium account aggregates to ` 1,624.32 Crore whereas 100% of its free reserve and securities premium account
aggregates to ` 2,648.35 Crore. As at 31st March 2023, the aggregate value of the loans & guarantees given and investments
made in other body corporates is ` 2,429.85 Crore. Thus, the maximum limit available to the Company under Section 186(2) for
giving loans, guarantees & providing security and making investments is ` 218.50 Crore only. Since the amount required to
achieve long term strategic and business objectives will exceed the limit presently available under Section 186(2) of the Act,
Members’ approval is sought by way of a Special Resolution to give loans, make investments and/or provide guarantees/ security
upto an amount not exceeding ` 10,000 Crore, outstanding at any point of time. The resolution is accordingly recommended for
approval of Members as aforesaid.
None of the Directors, Key Managerial Personnel of the Company and/or their relatives are concerned or interested, nancially or
otherwise, in the aforesaid Resolution.

Regd. Ofce:
Jaykaypuram-307 019 By Order of the Board
Distt. Sirohi (Rajasthan)
Amit Chaurasia
Date: 27th July, 2023 Company Secretary

11
 FOR ATTENTION OF THE MEMBERS

(1) Members are requested to intimate and/or update changes, if any, pertaining to their name and KYC details such as postal
address, e-mail address, telephone/mobile numbers, Permanent Account Number (PAN), nominations, bank details such as,
name of the bank, branch details, bank account number, MICR code, IFSC code, etc.:
a. For shares held in electronic form: to their Depository Participants (DPs);
b. For shares held in physical form: to the Company’s Registrar & Share Transfer Agent (RTA), MCS Limited
(Unit: JK Lakshmi Cement Limited), Kind Attention: Shri Ajay Dalal, F-65, First Floor, Okhla Industrial Area, Phase-I, New
Delhi-110 020, e-mail:admin@mcsregistrars.com, Ph: 011-41406149-50 in prescribed Form ISR-1 and other forms
pursuant to SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/37 dated 16th March 2023. The Company has
already sent letters to all the shareholders for furnishing the required details to RTA. Members may access the said Letter
and relevant Forms available on the website of the Company at https://www.jklakshmicement.com/kyc-documents/.
Members may note that effective from 1st October2023, any service request or complaint received from the Member, will
not be processed by RTA till the aforesaid details/ documents are provided to RTA. The Folios wherein any of the above
cited documents/ details are not available on or after 1st October 2023, shall be frozen by RTA. Frozen Folios shall be
converted to normal status upon receipt of the above documents/ details or dematerialization of Shares.
(2) Members may note that SEBI vide its Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2023/8 dated 25th January 2022 has
mandated the listed companies to issue securities in dematerialized form only while processing service requests viz. Issue of
duplicate securities certicate; claim from unclaimed suspense account; renewal/ exchange of securities certicate;
endorsement; sub-division/splitting of securities certicate; consolidation of securities certicates/folios; transmission and
transposition. Accordingly, Members are requested to make service requests by submitting a duly lled and signed Form ISR –
4, the format of which is available on the website of the Company at https://www.jklakshmicement.com/kyc-documents/.
It may be noted that after 1st October, 2023 any service request can be processed only after the Folio is KYC Compliant.
(3) Investor Grievances can be lodged electronically with the RTA. Please log on to www.mcsregistrars.com and click on Investors
Services to register your queries/ grievances which will be promptly responded by the RTA. Please write to the
Company Secretary at Secretarial Department at Gulab Bhawan (Rear Block), 3rd Floor, 6A, Bahadur Shah Zafar Marg,
New Delhi- 110 002 or E-mail: jklc.investors@jkmail.com., in case RTA’s response is not received within a week’s time.
(4) Members holding shares in physical form, in identical order of names, in more than one folio are requested to send to the
Company or the RTA, the details of such folios together with the Share Certicates along with the requisite KYC Documents
and form for consolidating their holdings in one folio. Requests for consolidation of Share Certicates shall be processed in
dematerialized form.
(5) Investor Education and Protection Fund:
(a) Unclaimed Dividend – Transfer to Investor Education and Protection Fund
Pursuant to Sections 124, 125 and other applicable provisions, if any, of the Companies Act, 2013 (Act) read with
Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (IEPF Rules),
amended from time to time, the unclaimed dividend shall be transferred to the Investor Education and Protection Fund
(IEPF) within 30 days from the due date of transfer i.e. on expiry of 7 years from the date of transfer of such dividend to the
Unpaid Dividend Account of the Company.
Accordingly, the unclaimed dividend will be transferred to the IEPF as under:

Dividend Due date for transfer to the IEPF

Financial Year ended 31.03.2015 – 40% Dividend 31st October 2022

Financial Year ended 31.03.2016 – 5% Dividend 11th October 2023

Financial Year ended 31.03.2017 – 15% Dividend 11th October 2024

Financial Year ended 31.03.2018 – 15% Dividend 12th October 2025

Financial Year ended 31.03.2019 – 15% Dividend 4th October 2026

Interim Dividend during Financial Year ended 31.03.2020 - 50% Dividend 19th April 2027

Financial Year ended 31.03.2021 – 75% Dividend 30th September 2028

Financial Year ended 31.03.2022 – 100% Dividend 22nd September 2029

12
 Members who have not claimed their dividend for the said Financial Years may write to the Company Secretary for
payment at the Secretarial Department at Gulab Bhawan (Rear Block), 3rd Floor, 6A, Bahadur Shah Zafar Marg,
New Delhi- 110 002.
(b) Pursuant to Section 124(6) of the Act read with the IEPF Rules, as amended, the Company has, during Financial Year
2022-23, transferred all the shares in respect of which dividend had remained unpaid/unclaimed for seven consecutive
years or more to IEPF Authority within the prescribed time. The details of shares transferred to the IEPF Authority are
available on the website of the Company.
With respect to dividend and shares due for transfer in the Financial Year 2023-24, the Company has sent notices to all
the Members whose dividends are lying unclaimed for seven consecutive years or more to claim the same at the earliest.
(c) Members may note that shares as well as unclaimed dividend transferred to the IEPF Authority can be claimed back.
Concerned Members are advised to visit the web link: http://iepf.gov.in/ or contact the Company for claiming the shares
and / or refund of dividend from the IEPF Authority.
(d) Special assistance to senior citizen claimants: - IEPF Authority has launched a special window facility for senior citizens of
age 75 years and above. The Company supports the aforesaid initiative and will facilitate all such claimants in ling form
IEPF-5 as well as their e-verication report on priority with Ministry of Corporate Affairs. All such senior citizen claimants
may write to jklc.investors@jkmail.com for the required assistance.
(6) Nomination: Pursuant to Section 72 of the Companies Act, 2013 and relevant SEBI Circular, the facility for making
nomination is available for the Members in respect of the shares held by them. Members who have not yet registered their
nomination are requested to register the same by submitting Form No. SH-13. If a Member desires to opt out or cancel the
earlier nomination and record a fresh nomination, he/ she may submit the same in Form ISR-3 or SH-14 as the case may be.
The said forms can be downloaded from the Company’s website at https://www.jklakshmicement.com/kyc-documents/.
Members are requested to submit the said details to their DP in case the shares are held by them in dematerialized form and
to RTA in case the shares are held in physical form.
(7) SEBI vide its notication dated 24th January 2022, has mandated that all requests for transfer of securities including
transmission and transposition requests shall be processed only in dematerialized form. In view of the same and to eliminate
all risks associated with physical shares and avail various benets of dematerialization, Members are advised to dematerialize
the shares held by them in physical form. Members can contact the Company’s RTA for assistance in this regard.
Dematerialisation facility is available both on NSDL and CDSL. Company’s ISIN is INE786A01032.
(8) Members are requested to quote their Folio No. / DP ID- Client ID and details of shares held in physical/dematerialised forms,
e-mail IDs and Telephone / Fax Nos. for prompt reply to their communications.
(9) SEBI vide its Circular dated 30th May 2022 has prescribed Standard Operating Procedures for dispute resolution under the
Stock Exchange arbitration mechanism for a dispute between a Listed Company and/or RTA and its Shareholder(s) /
Investor(s). The said circular is available on the website of the Company at www.jklakshmicement.com

13
Accelerating the Capital Footprint

Social and
Relationship
Capital
About the Report

Our approach to Integrated Reporting Approach to Materiality

This rst Integrated Annual Report of JK Lakshmi Cement Limited (JKLC) We have succinctly applied the principles of materiality in assessing
provides detailed disclosures on our strategy, governance and what information is of interest to our stakeholders and should be
prospects, through which we have brought in greater transparency in included in our Integrated Annual Report. We have thus focused in this
sharing information on our material issues and strategic performance. It report on the issues, opportunities and challenges that have a material
contains information and disclosures that are aimed at enabling impact on our business and our ability to deliver sustained value to our
investors to make an informed assessment of the Company’s ability to shareholders and key stakeholders. We consider an issue to be material
create and deliver holistic value. if it can substantively affect the Organisation’s ability to create value
over the short, medium and long term. We have considered the impacts
As part of our commitment to providing disclosures that go above and
of these material issues on our business and also how our business
beyond the requirements of the law, we have based our Integrated
impacts these issues within our sphere of inuence. Material matters
Annual Report on the Integrated Reporting (IR) principles, a global
communicate organisation’s long-term business strategies and goals,
standard for best practices in corporate reporting. With each passing
as well as its short-medium term business plans. We take inputs from all
year, we continue to add more disclosures to our report to give all of our
our business units and key stakeholders to identify the potential
stakeholders meaningful information on how we create value using
material matters and accordingly prioritise the material issues in order of
diverse capitals so they can make informed decisions.
their relevance and potential impacts.
Reporting Boundary
Forward-looking Statements
The information covered in the report is for the year April 1st, 2022 -
In this Integrated Annual Report, we have disclosed information to
March 31st, 2023 and encompasses all key facets of JKLC’s primary
enable investors and shareholders to comprehend our prospects and
operations, including the 2 integrated cement manufacturing units and
take informed investment decisions. This report and other statements -
four grinding units. The key material aspects identied and discussed
written and oral - that we periodically make, contain information that
are relevant to the operations of the Company, as well as its value chain
set out anticipated results based on the JKLC Management’s plans and
partners, customers, communities and other stakeholders. We have
assumptions. We have tried, wherever possible, to identify such
detailed the Company’s performance trend over a two to three years’
statements by using words such as ‘anticipate’, ‘estimate’, ‘expects’,
period, wherever relevant, to give investors a clear understanding about
‘projects’, ‘intends’, ‘plans’, ‘believes’ and words of similar substance in
the Key Performance Indicators (KPIs) that are contributing to the value
connection with any discussion of future performance. We cannot
creation.
guarantee that all projections will be realised, although we believe we
Reporting Principles have been prudent in our assumptions. The achievement of results is
subject to risks, uncertainties and even inaccurate assumptions. Should
This Integrated Annual Report is guided by the framework of the
any known or unknown risk or uncertainty materialise, or should
International Integrated Reporting Council (IIRC). Some data related to
underlying assumptions prove inaccurate, actual results could vary
this Integrated Annual Report might be management estimates. Other
materially from those anticipated, estimated or projected. We
statutory reports, including the Board’s Report, Corporate Governance
undertake no obligation to publicly update any forward-looking
Report and Business Responsibility and Sustainability Report are as per
statements, whether as a result of new information, future events or
the Companies Act, 2013; SEBI (Listing Obligations and Disclosure
otherwise, given the dynamic nature of the topics considered for
Requirements) Regulations, 2015 and the prescribed Secretarial
discussion.
Standards.
Feedback
Your comments and feedback are of great importance to us. We would
be glad to address any queries or observations that you may have with
regard to our various future-aligned initiatives, our performance or this
report.
 Integrated Report Statutory Report Financial Statement

Corporate Information

BOARD OF DIRECTORS

BHARAT HARI SINGHANIA

CHAIRMAN

VINITA SINGHANIA
VICE CHAIRMAN & MANAGING DIRECTOR

Dr. RAGHUPATI SINGHANIA

DIRECTOR

N. G. KHAITAN
INDEPENDENT DIRECTOR

Amb. BHASWATI MUKHERJEE

INDEPENDENT DIRECTOR

RAVI JHUNJHUNWALA
INDEPENDENT DIRECTOR

S. R. BANSAL
INDEPENDENT DIRECTOR

ARUN KUMAR SHUKLA

PRESIDENT & DIRECTOR

SUDHIR A. BIDKAR
CHIEF FINANCIAL OFFICER

AMIT CHAURASIA
COMPANY SECRETARY

REGISTERED OFFICE
JAYKAYPURAM, DISTRICT SIROHI, RAJASTHAN - 307 019

ADMINISTRATIVE OFFICE
NEHRU HOUSE, 4, BAHADUR SHAH ZAFAR MARG, NEW DELHI - 110 002

MANUFACTURING PLANTS AUDITORS

S. S. KOTHARI MEHTA & COMPANY
RAJASTHAN BASANTGARH, JAYKAYPURAM, DISTRICT SIROHI - 307 019 CHARTERED ACCOUNTANTS

CHHATTISGARH MALPURI KHURD, AHIWARA, DISTRICT DURG - 491 001 BANKERS

STATE BANK OF INDIA | IDBI BANK LTD.
GUJARAT MOTIBHOYAN, KALOL, DISTRICT GANDHINAGAR - 382 010
AXIS BANK LTD. | INDIAN BANK
GUJARAT VILLAGE DASTAN, TALUKA PALSANA, DISTRICT SURAT - 394 310 HDFC BANK LTD.

HARYANA VILLAGE BAJITPUR, P.O. JHAMRI, DISTRICT JHAJJAR - 124 507 WEBSITE
www.jklakshmicement.com
ODISHA RADHASHYAMPUR, P.O. - KHUNTUNI, DISTRICT CUTTACK - 754 297
CIN:L74999RJ1938PLC019511
UTTAR PRADESH ANUP SHOR ROAD, VILLAGE NAGAULA, ALIGARH - 202 126

INTEGRATED ANNUAL REPORT 2022-23 01

 Concept
ACCELERATING THE CAPITAL FOOTPRINT
In this fast-paced market place, things change in the blink of an eye.
While the macro-economic landscape is moving towards a
sustainable growth, the micro-economic situation of market,
channel partners, inuencers and customers’ behaviour is rapidly
getting more complex and personalised.
Cement Industry in India is at the cusp of responsible mining,
manufacturing and business operations. Responsibility towards
people and environment, and company’s performance are now
two sides of the same coin.
Given the backdrop, JK Lakshmi Cement Ltd. has blended the core
of its business with sustainable goals and at the same time has
stepped on the accelerator to be future-ready.
Traditionally, nancial and manufactured capitals were always the
mainstay of the business; however, now intellectual, human,
natural and social and relationship capitals are the foundations on
which nancial and manufactured capitals are built.
Our research is now focused on value-added products, creating
best out of waste, blended cement and sustainable technologies.
On the digital front there is fast-paced innovation on development
and implementation of APPs, ERP solutions, IOT, etc. to integrate
business across the value chain. With strict compliance of UN
Human Rights, we are a zero discrimination and equal opportunity
organisation for all. While our technical services team is in constant
pursuit of nding innovative ways to keep our customers engaged,
our eld force and regional teams engage with channel partners
and inuencers in most prompt manner on a regular basis.
Resilient efforts are on to continuously protect the environment and
do the business responsibly. Whether it is usage of alternate fuels,
alternate raw materials, renewable energy or energy conservation
or reducing carbon footprints, we are in a constant state of rapid
evolution and implementation. Our commitment towards the
community is unwavering and we have invested more than what is
mandated. These efforts encompass providing education, better
health and hygiene, training, employment opportunities,
empowerment, etc. to the disadvantaged communities in and
around our business footprints.
Securing an accelerated impetus on all the capitals, JK Lakshmi
Cement Ltd. is committed to a better future for the people, planet
and company.
This Integrated Annual Report discloses transparently how
JK Lakshmi Cement Ltd. has added value to each and every capital
footprint with immense responsibility, perseverance and
commitment.

02 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Contents
Integrated Reports
JK Lakshmi Cement Limited at a Glance 04

Chairman’s Message 06

VCMD’s Message 08

Governance 10

Performance Highlights 18

Our Product Portfolio 20

Our Operational Reach 22

Strategic Objectives 24

Introducing our Capitals 26

Risk and Risk Mitigation 28

Stakeholder Engagement 32

Materiality Assessment 34

Financial Capital 36

Intellectual Capital 42

Manufactured Capital 48

Human Capital 58

Natural Capital 68

Social and Relationship Capital 78

Statutory Reports
Board’s Report 91

Management Discussion and Analysis 107

Report on Corporate Governance 111

Business Responsibility and Sustainability Report 124

Financial Statements
Standalone Financial Statements 160

Consolidated Financial Statements 220

INTEGRATED ANNUAL REPORT 2022-23 03

 JK Lakshmi Cement Limited at a Glance
Legacy. Growth. Commitment.
FY 2022-23 (Standalone)

Cement Capacity – 11.70 MMTPA

Clinker Capacity – 6.87 MMTPA

Power Generation Capacity – 142.3 MW

Turnover – ` 6,133 Crore

EBIDTA – ` 767 Crore

PAT – ` 330.77 Crore

Net Worth – ` 2,724 Crore

Market Capitalisation – ` 9,307 Crore

"The key to growth is the introduction of higher

Vision | Mission | Core Values dimensions of consciousness into our awareness."
- Lao Tzu

To be a protably growing, innovative and caring company

Vision To become a signicantly relevant player in the mind of customers

Achieve operational excellence

Be a workplace of choice - attract, retain and grow talent pool of change leaders

Achieve growth in sales and prot; higher than comparable sized players
Mission
Create superior value for the customer through premium products and brand positioning

Continuously enhance shareholders' wealth and be a preferred portfolio among investors

Be a socially responsible corporate citizen

Caring for people

Core values Integrity including intellectual honesty, openness, fairness and trust

Commitment to excellence

04 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Our Journey
Create. Augment. Sustain.

1982 2017
1st Integrated Plant Surat GU Commissioned
at Sirohi - 1.4 Mn MT
Total Capacity - 0.5 Mn MT Total Capacity - 10.0 Mn MT

2001 2017
Capacity Augmentation Capacity Addition
at Sirohi at Durg - 0.9 Mn MT
Capacity - 2.4 Mn MT Total Capacity - 10.9 Mn MT

2017
Successfully Commissioned
2009 Integrated Plant of
Capacity Addition 1.6 Mn MT under Company’s
at Sirohi Subsidiary - UCWL
Capacity - 4.2 Mn MT Total Capacity 12.5 Mn MT

2009
Kalol Grinding Unit 2019
Commissioned - Odisha GU Commissioned
0.5 Mn MT - 0.8 Mn MT
Total Capacity - 4.7 Mn MT Total Capacity - 13.30 Mn MT

2021
2012 Capacity at UCWL Plant
Jharli GU Commissioned increased from
- 1.3 Mn MT 1.6 Mn MT to 2.2 Mn MT
Total Capacity - 6.0 Mn MT Total Capacity – Appox. 14 Mn MT

2022
2015 Waste Heat Recovery Capacity
2nd Integrated Plant at our Power Plant increased
at Durg - 1.8 Mn MT from 29 MW to 31 MW
Total Capacity - 7.8 Mn MT Total Capacity - Approx. 14 Mn MT

2015 2023
Capacity Addition Waste Heat Recovery Capacity
at Sirohi - 0.5 Mn MT increased to 39.4 MW
Total Capacity - 8.3 Mn MT Total Capacity - Approx. 14 Mn MT

2016
Capacity Addition at
Kalol - 0.3 Mn MT
Total Capacity - 8.6 Mn MT

INTEGRATED ANNUAL REPORT 2022-23 05

 Chairman’s Message
Dear Stakeholders,
Over the past two years, the global economy has
grappled with a multitude of overlapping crises,
including trade wars, the pandemic, geo-political
conicts such as the war in Ukraine and the
subsequent lockdowns in China. These challenges
have created a complex landscape, further
compounded by liquidity troubles arising from a
series of global bank crises. Although efforts have
been made to mitigate the effects, these ongoing
uncertainties have had an impact on customer and
business condence, consequently impacting
economic growth.

The GDP data reveals that India has emerged from the pandemic in a
more resilient manner than initially anticipated, with consistent
momentum in growth observed since FY 2021–22. Notably, the
growth gures for FY 2021–22 have been revised upward from 8.7%
to 9.1%, indicating a more robust rebound.
Despite the prevailing global slowdown, numerous market analysts
hold the belief that the current era holds great potential for India,
positioning it as a dominant player at the World stage. This assertion
is substantiated by compelling reasons and empirical evidence.
Recent data revisions by India indicate that the Nation's economic
performance has surpassed previous estimates, even in the face of
persistent global uncertainties. The International Monetary Fund
(IMF) further projects India's growth to reach 5.9% in FY 2023–24
and sustain an average growth rate of 6.1% over the next ve years;
underscoring the Country's resilience and prospects for long-term
economic advancement.
The attractiveness of India as an investment destination is something
that cannot be understated. At JK Lakshmi Cement Ltd., we are
committed to intensifying our capital footprint across six key
verticals, with a steadfast focus on augmenting the value of our
human capital through people-centric initiatives. We also strive to
enhance our manufacturing excellence, thereby strengthening our
manufactured capital. Simultaneously, we are dedicated to fostering
green growth, recognising the signicance of preserving our natural
capital. In addition, our commitment to community development
ensures the growth of our social capital, while our relentless pursuit
of innovation bolsters our intellectual capital. Ultimately, our
endeavours are geared towards driving improvements in both our
top-line as well as our bottom-line performance; reinforcing our
nancial capital.
During FY 2022-23, your company reached a signicant milestone
by attaining its consolidated EBITDA of ` 896 crore. This highlights

06 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

our robust commitment to operational excellence, efciency, our business processes. This has resulted in tangible value creation,
sustained progress and solid performance in the market. This enhanced operational efciency and a distinctively superior
noteworthy accomplishment exemplies the collective efforts and customer experience. With condence, I afrm that our forward-
dedication of our team at JK Lakshmi Cement Ltd. thinking approach will continue to propel us ahead, maintaining our
competitive edge in this dynamic business landscape.
Sustainability lies at the heart of your company's ethos, permeating
all aspects of our business ventures. We steadfastly uphold our I extend my heartfelt appreciation to the team members of
commitment to achieving net-zero targets by 2047. In our pursuit of JK Lakshmi Cement Ltd. for their signicant achievements in the
sustainability, we have actively engaged with esteemed global FY 2022-23. We have experienced signicant growth, with a notable
agencies and industry associations such as UNGC, SBTi, RE100, 11% increase in consolidated volume compared to the previous year,
EP100 and GCCA. Through these collaborations, we validate and resulting in an impressive sales gure of approximately 11 million
continually reduce our greenhouse gas emissions, ensuring our tonnes of consolidated cement sales. I am delighted by the
operations align with the highest environmental standards. widespread adoption of commendable and innovative practices
throughout our organisation. Moreover, I take immense pride in the
We have taken signicant steps towards sustainability and a greener
numerous prestigious awards and accolades received by all our
future. Promoting LNG trucks in our logistics operations has reduced
plants, which reect the dedication of our team in delivering
CO2 emissions. Our water positivity level is currently 4X, targeting 5X
exceptional quality output in every assigned task. Congratulations to
by 2025. Achieving a Thermal Substitution Rate (TSR) of 4.1%, we
each and every team member for their invaluable contributions.
aim for 20% TSR by 2030. Renewable energy usage reached 37% in
FY 2022-23, with the installation of oating solar panels, a rst in Warm Regards,
the Indian Cement Industry and in the state of Rajasthan.
As a responsible entity, your company has consistently prioritised
community development through its wide range of CSR initiatives.
Our commitment to social performance improvement extends
across the entire value chain. Our CSR vision aims to foster strong
community relationships and create sustainable positive change in
the quality of life for neighbouring communities. We strive to
achieve this through innovative solutions in areas such as health,
education, livelihoods and rural development.
I am delighted to witness JK Lakshmi Cement Ltd.’s exemplary
leadership in the realm of digitalisation; as we wholeheartedly
BHARAT HARI SINGHANIA
embrace the deployment of cutting-edge technologies. Our
Chairman
dedicated teams have successfully executed multiple digital projects,
enabling us to access information at lightning speed and optimise

INTEGRATED ANNUAL REPORT 2022-23 07

 VCMD’S Message
Dear Stakeholders, Associates and Team JKLC, short period, requiring businesses to adapt with speed and
adapt with utmost agility. Robust self-belief and resilience are
It is my privilege to present to you the Integrated Annual
the keys to success in times of uncertainty and challenge. It is
Report for FY 2022-23, a testament to the unwavering
indeed creditable that amidst these macro-economic and
commitment of our team.
geo-political upheavals, India has managed to stay the course in
As we navigate the post-pandemic era, we nd ourselves at a its quest for growth.
crossroads, shaping a redened future. While the global Your company has also performed well while operating within
economy rebounds, we face new challenges including the constraints. At this juncture, we remain committed to
geo-political tensions, inationary headwinds as well as advancing our country's interests and expressing solidarity with
extended supply chain disruptions. Our journey into the the Nation and its leadership.
future will be shaped by our ability to adapt to the new
normal and address emerging challenges with agility, India's cement production has grown by around 9% in
innovative capabilities, inclusivity and resilience. FY 2022-23 and is expected to continue its momentum with 8%
growth over the next couple of years. The growing housing
The COVID-19 crisis, despite its disruptive nature, has imparted sector, which typically accounts for 60-65% of India's cement
multiple invaluable lessons that will drive transformative change consumption, along with the Government’s clear focus on
moving forward. We witnessed ground-breaking technology, infrastructure development, comprising 25% of cement
extraordinary human fortitude and unprecedented scale of consumption, will remain the key demand drivers.
collaboration, telling a story of hope and resilience and our
collective ability to rise above every adversity. The Black Swan Infrastructure-led investments and mass residential projects will
event also accentuated the undercurrents of digital and keep India’s cement demand strong, according to Moody’s
sustainability as predominant megatrends that will continue to Investors Service report. Also, continued large investments in
shape the future. Recognising the need to scale new horizons of roads and infrastructure projects will fuel cement demand. The
competitiveness, your company has pivoted with agility and Government has launched signicant infrastructure mega
resilience to navigate through the dynamic environment with projects such as the ambitious Bharatmala Pariyojana,
consumer-centricity, seizing market opportunities and executing Sagarmala Project, Smart Cities Mission, AMRUT (Atal Mission
proactive strategic interventions. for Rejuvenation and Urban Transformation) and PMAY
(Pradhan Mantri Awas Yojana); providing a boost to the
Recent years have been relentless with the global pandemic, industry.
military conicts, growing inequality and supply chain
shortages. We have condensed decades of experience into a Infra push and increasing housing demand resulted in domestic
consumption of cement in FY 2022-23 at an estimated 390
million tons, up from 360 million tons in FY 2021-22. This is
projected to surpass 500 million tons by the end of FY 2026-27.
Despite near-term challenges like heightened competition, fuel
price ination, increased interest rates and commodity ination,
the outlook remains promising. JKLC is well-prepared to
navigate these challenges and I am condent that the business
will continue to strengthen and be future-ready.

Performance Review
In a year marked by several disruptions, your company has
delivered a creditable performance and registered appreciable
recovery across key performance parameters.
JKLC recorded revenues of ` 6,071 crore during FY 2022-23,
registering a growth of 20%. This growth was aided by higher
volumes with improved manufacturing activity amidst a volatile
macro backdrop.
The Net Prot After Tax stood at ` 331 crore during
FY 2022-23, lower than the previous year mainly due to volatility
in the market and stagnant prices. Thanks to robust operating
cash ows, our capital employed metrics have reported
progress, leading to improved return ratios. We have also repaid
borrowings during this year, making our company a Net Debt-
Free company. Your company continues to focus on shareholder
value creation by capturing cost-efciencies and leveraging

08 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

technology for productivity gains. Our strategically diversied Expansion and Innovation
business portfolio, geographical dispersion, robust balance The progress of our value-added products vertical played a
sheet and strong presence in the market are reliable signposts crucial role in our success. With a remarkable growth of 26% in
pointing to a brighter future. Additionally, our committed the top line in FY 2022-23, driven by increased capacity
workforce and proven execution strengths enable a seamless utilisation and strategic expansions, our RMC, AAC Blocks,
transition to a more digitally evolved work environment. Gypsum Plaster, Putty and Mortars segments have ourished.
Strategic Plan Notably, we also saw the acquisition of the AAC block plant in
Our strategic plan continues to guide the growth of the Aligarh and the expansion of our RMC business in key markets
Company. We are moving ahead with a series of actions toward like Gurgaon, Bhavnagar and Delhi NCR. Additionally, a
this, which includes the following: greeneld putty plant at Alwar is being set up and will be
commissioned in FY 2023-24, paving the way for capacity
4 Setting up a project for capacity expansion of 1.5 mn. tons enhancement.
of clinker and 2.50 mn. tons of cement capacity at our Group Your company is committed to offering ‘SMART’ building
company UCWL solutions with contemporary, sustainable, ready-to-use and
4 Installing solar power plants at Sirohi, Durg and UCWL to time-saving products facilitating faster and cleaner
further reduce power cost construction. With the increasing demand for these innovative
solutions, we foresee signicant growth and plan to expand our
4 Improving efciency parameters to become one of the
product line accordingly. Our vision is to become the best-in-
Industry's best performers
class construction solutions provider company.
4 Committing to becoming a net-zero company by 2047 Community Well-being
4 Maintaining our position as one of the least-cost producers Creating an inclusive society is a fundamental business
of cement in the Industry responsibility we strongly believe in. JKLC has been unwavering
in its commitment to enhancing the lives of marginalised
4 Expanding our capacity to 30 million tons by 2030 and
communities near its plant locations through high-impact and
ranking among the top 5 EBIDTA / ton earning cement
need-based CSR projects in key areas of nation-building such as
companies in the Industry
education, healthcare, skill development, livelihood
Sustainable Growth intervention, water and sanitation, rural development and
As a responsible corporation, JKLC is striving to drive its business environmental conservation.
sustainably through focused action, collaboration, advocacy Through our CSR initiatives, we have positively impacted over
and thought leadership. Resource efciency and circularity are 2,25,000 lives and received the Golden Peacock Award for CSR
the foundation of our sustainability programme. Over the past excellence at our Durg unit. Amongst the various awards and
decade, we have prioritised energy and water efciencies. accolades received by the organisation, your company has also
We are continuously reducing emissions and working towards been recognised as the fastest-growing company in the large
carbon neutrality across Scopes 1, 2, and 3. We are committed category at the 6th Indian Cement Review Awards 2023.
to Science Based Target Initiatives. On renewable power, our I take this opportunity to acknowledge the contributions of the
green power share (on a consolidated basis), has increased to team members, channel partners and supplier partners. Their
37% of the total power requirement in FY 2022-23. By 2040, we achievements, collectively and individually, amidst tough times
aim to meet all our electrical energy requirements through make me proud. I also take this opportunity to thank you for
renewable energy, as committed to RE100. We have also your continuing trust and support. As we reect on our
committed to doubling our energy productivity by 2040, based performance, we are well poised to embrace newer
on the 2014-15 baseline, as part of EP100. opportunities and overcome challenges as we stride condently
To further enhance the circular economy, JKLC is working on towards a successful future for JK Lakshmi Cement Ltd.
utilising alternative fuels at its integrated units and our thermal
substitution rate has gone up to about 4.1% in FY 2022-23 with Warm Regards,
rm plans to take it up to 20% by FY 2029-30. Rolling out of the
LNG eet of trucks for our logistics operations will reduce 270
metric tons of CO2 per annum.
We have, under the carbon offset programme, migrated over
1,84,000 rural families from traditional cooking to sustainable
cooking methods, helping reduce deforestation and air
pollution, as well as enhancing the health of the women of the
households.
Water is a precious resource and to preserve planet’s lifeline we
have taken the target of becoming 5 times water positive by VINITA SINGHANIA
FY 2024-25. Vice Chairman & Managing Director

INTEGRATED ANNUAL REPORT 2022-23 09

 Governance at JK Lakshmi Cement
Ensuring transparency with credibility.
JK Lakshmi Cement’s Philosophy In nutshell, the philosophy can be described as observing of
Corporate Governance is an integral part of values, ethics and best business practices with the ultimate aim of enhancing long-term
business practices followed by the Company. The core values of the shareholders’ value and commitment to high standard of business
Company are: ethics by following best corporate governance norms in true letter
and spirit.
4 Commitment to excellence and customer satisfaction
4 Maximising long-term shareholders’ value
4 Socially valued enterprise
4 Caring for people and environment

Corporate Governance Framework

Board of Directors

Board Committees

Audit Nomination and Stakeholders’ Corporate Social Risk Committee

Remuneration Relationship Responsibility Management of Directors

Senior Management Team

100% attendance of the Directors in all the Board Meetings held during the FY 2022-23

Board’s Composition: The Company is compliant of regulatory further extends to the Suppliers / Contractors / NGOs / Others, as
requirements and is comprised of adequate number of Executive applicable, and any other event which would adversely affect the
and Non-executive Directors as also Independent and Non- interests of the business of the Company. Therefore, the Company
independent Directors. encourages its Suppliers / Contractors / NGOs / Others to practice
to the same extent in a fair manner.
Skills / Expertise / Competencies: All the Board Members
possess core skills / expertise / competencies required in the context Performance Evaluation: The Nomination and Remuneration
of the Company's business and sector that enable them to make Committee has specied the manner for effective evaluation of
effective contribution to the Board and its Committees. performance of the Board, its Committees and individual Directors
in accordance with the specied performance criteria. Also,
Compliance Management: The Board periodically reviews
Independent Directors assess the performance of the
Compliance Reports of all laws applicable to the Company and the
Non-independent Directors, Board as a whole and the Chairman.
steps taken by the Company to rectify instances of non-
compliances, if any. With a view to foster an improved compliance
reporting and monitoring in the Company, the Company has a
web-based legal compliance tool. Further, legal risks are monitored
and mitigated through regular review of changes in the regulatory
framework.
Succession Planning : Plans are in place for orderly succession for
appointments to the Board and to Senior Management.
Code of Conduct / Ethics and Transparency / Vigil Mechanisim
The Company also has in place a “Code of Conduct for Board
Members and Senior Management”. The Company has in place a
“Code of Corporate Ethics and Conduct” reiterating its
commitment to maintain the highest standards in its interface with
stakeholders and clearly lays down the core values and corporate
ethics to be practiced by its entire management cadre. The
Company also has in place a policy on Vigil Mechanism (Whistle
Blower Policy) for the Directors and Employees of the Company to
report their genuine concerns or grievances. The said Codes / Policy

10 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

KEY BOARD POLICIES

Nomination and Policy on Materiality of Related Party Corporate Social Dividend

Remuneration Policy Transactions (’RPTs’) and on dealing with RPTs Responsibility Policy Distribution Policy

Vilgil Mechanism / Code of Conduct for Board Members and Policy for determining Materiality of Events
Whistle Blower Policy Senior Management

Code of Practices and For more details about JK Lakshmi Cement’s Policies, visit:
Procedures for Fair https://www.jklakshmicement.com/companies-policies-other-information/
Disclosure of UPSI

Prevention of Sexual Harassment: The Company is Services to Investors: The Company lays great emphasis on
sensitive to women employees at workplace. The Company has a promoting better services to the Investors and take several
formal policy to ensure safety of women and prevention of investor-friendly measures from time-to-time. The Company is
sexual harassment and has set up Internal Complaints regular in paying dividend to its Shareholders since 2006-07.
Committee (ICC) at its work place(s) to redress the complaints of The Company has not made any default in repayment of its
women employees. ZERO complaints have been led and no nancial obligations. The Company does not have grievances of
complaint is pending with ICC. investors / shareholders, except few minor grievances of routine
nature.

INTEGRATED ANNUAL REPORT 2022-23 11

 Governance
Ethics. Excellence. Integrity.
Board of Directors

Shri Bharat Hari Singhania, 85 years, is an Smt. Vinita Singhania, 71 years, is a

Industrialist with over 66 years of experience in businesswoman and an industrialist, with diversied
managing various industries including cement, and rich business experience. Smt. Singhania has been
automotive tyres, paper, jute, synthetics, paints, high the Director of several industrial and other companies.
yielding hybrid seeds, audio magnetic tapes, sugar, etc. She has a long experience of managing cement business
Shri Singhania is the President of JK Organisation, an and actively interacts with various associations of
Industrial Group founded over 100 years ago. The cement industry on important issues. Smt. Singhania is
Group is a multi-business, multi-product and multi- on the Board of the Company since 1989, became
location Group. Shri Singhania being one of the Managing Director of the Company in 2001 and was
constituents of the Promoter Group, was Managing elevated to the position of Vice Chairman & Managing
Director of the Company since 1994 and elevated to the Director in 2013. She is also on the Board of JK Paper
position of Chairman in 2013. Effective from 1st October, Ltd., Bengal & Assam Company Ltd., Udaipur Cement
2021, Shri Singhania is a Non-Executive Chairman of the Works Ltd., HEG Ltd. and various other companies.
Company, rendering his services from time to time, on Smt. Singhania looks after planning, coordination and
strategic and development issues and other matters of overall operations of the Company, interaction with
importance. Shri Singhania is involved in policy associations of the cement industry and Human
planning, vision and strategy and long-term Resource Development (HRD) function of the Company.
developmental activities of the Company. With a She has been instrumental in shaping the HR culture of
progressive attitude and inherent leadership skills, the Company. Further, Smt. Singhania takes keen
Shri Singhania has provided strategic direction to the interest in promoting CSR activities ever since the
Company and immensely contributed in its functioning Company commenced operations. It is also noteworthy
and growth besides corporate governance and Board to mention that the Company has been regularly
coordination. He is also the Chairman of JK Paper Ltd., receiving awards in different categories, such as -
JK Agri Genetics Ltd. as well as Bengal & Assam e n v i r o n m e n t , s a f e t y, q u a l i t y, C S R , H R , e t c .
Company Ltd., Director of JK Tyre & Industries Ltd. & Smt. Singhania has the distinction of being the rst
several other companies and Chancellor of JK woman President of Cement Manufacturers Association
Lakshmipat University, Jaipur. He is past President of (CMA) as well as National Council for Cement and
Indian Chamber of Commerce and former Chairman of Building Materials (NCBM). She was elected
Indian Jute Mills Association and Indian Jute Industries unanimously as the President of the CMA in October
Research Association, Kolkata and has been involved 2009. She has been conferred with ‘Woman of the Year’
with a large number of industry and professional bodies. by Uday India; Construction Woman of the Year 2016 by
Shri Singhania has been a member of various Construction Times and Most Powerful Woman of the
Government bodies and trade delegations. He has Year by India Today. Adding yet another accolade to her
travelled widely in India & overseas and has intense long list of achievements, Smt. Singhania was the much
knowledge of various industries and nance sector. deserved recipient of the Mahatma Gandhi Award on
Besides, Shri Singhania is heading various philanthropic 1st October, 2019 for her innumerable accomplishments
organisations of JK Group such as Lakshmipat Singhania and keen business acumen at the helm of JK Lakshmi
Education Foundation, Lakshmipat Singhania Medical Cement Ltd. In 2022, she was conferred with Ladies
Foundation and Pushpawati Singhania Hospital & FICCI FLO Awards of Excellence for excellence in
Research Institute. He is also actively associated with Entrepreneurship and also received the ‘Best Family
many other Academic Institutions which are run by JK Business Led by a Woman Award’ by Money Control Pro
Group. Shri Singhania has a passion for promoting (Network18).
educational institutions, CSR, healthcare, cultural and
philanthropic activities in various parts of the country.

12 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Dr. Raghupati Singhania, 76 years, is an industrialist Shri N. G. Khaitan, 72 years, an attorney-at-Law, is a

with about 56 years’ experience in managing various leading solicitor and practicing advocate. Shri Khaitan is
industries including automotive tyres and tubes, power a Senior Partner of M/s Khaitan & Co., Kolkata, a
transmission - v belts, conveyor belting, automotive belts, renowned Law Firm and has more than 50 years’
oil seals, industrial electronics and material handling experience in legal profession. He is on the Board of the
system, hybrid seeds, steel products, etc. He is on the Board Company since 1993 and currently is an Independent
of the Company since 1991. He is the Chairman & Director of the Company. He specialises, inter alia, in
Managing Director of JK Tyre & Industries Limited and also corporate and arbitration matters, commercial and civil
the Chairman of J.K. Fenner (India) Limited and Cavendish litigation, mergers and acquisitions and joint ventures.
Industries Limited. He is former Chairman of Automotive Shri Khaitan is on the Board of various companies,
Tyre Manufacturers’ Association and former President of including AGI Greenpac Ltd., Mangalam Cement Ltd.,
PHD Chamber of Commerce & Industry. He is also Shyam Metalics and Energy Ltd etc. He is President of
associated with number of institutes in the medical Indian Council of Arbitration, New Delhi. Shri Khaitan is
research and education sectors, besides serving number of President of Bharat Chamber of Commerce and a
trades and industry bodies such as CII, ASSOCHAM and National Executive Member of the Federation of Indian
CAPAXIL in various capacities. He has been conferred with Chambers of Commerce and Industry (FICCI).
Doctorate of Science by Mohanlal Sukhadia University,
Udaipur for his outstanding contribution in Education,
Training and Research in the eld of Elastomer, Polymers
and Tyres. Dr. Singhania has been also inducted into the
“TIA Hall of Fame 2015” on 2nd November 2015, which is
the highest honour any individual in the tyre industry can
achieve in the world. In the special issue of Business Today
(1st January, 2017), Dr. Singhania has also been listed
amongst India’s best CEOs. Dr. Singhania also received
Industry Leadership Award from Indo-American Chamber
of Commerce. During the FY 2018-19, H.E. the President of
Mexico bestowed the Mexican Order of the Aztec Eagle on
Dr. Raghupati Singhania, which is the highest distinction
awarded by the Mexican Government to foreigners in
recognition of their outstanding services to Mexico or to
humanity. This is the rst time that this highest distinction
has been conferred on a foreign national business person.
Dr. Singhania has been recognised as ‘The Extraordinaire’
for his leadership and contribution to the industry by Brand
Vision Summit 2018. He has been conferred with Lifetime
Achievement Award 2019, by the Udaipur Chamber of
Commerce and Industry (UCCI) for visionary leadership,
determination, humanitarianism and exemplary
community services undertaken in Rajasthan. He has been
conferred with Lifetime Achievement Award at
Manufacturing Today India Conference & Awards 2019. He
has been recognised as ‘Business Leader of the Decade’ by
Indo American Chamber of Commerce and conferred with
the Economic Times ‘Inspiring CEOs 2022 Award’. He has
also been conferred with Lifetime Achievement Award by
PHD Chamber of Commerce and Industry and another
award – ‘SEVA Bhushan’ by SEVA Bharti.

INTEGRATED ANNUAL REPORT 2022-23 13

 Governance
Ethics. Excellence. Integrity.
Board of Directors

Ambassador Bhaswati Mukherjee, 70 years, is a Shri Ravi Jhunjhunwala, 67 years, has a Bachelor’s
post graduate (rst class) in History from Delhi University Degree in Commerce and an MBA from the Centre
and has a degree (superior) in French History and D’etudes Industrielles (CEI), Geneva, which is now
Civilisation from Sorbonne University, France. known as IMI, Lausanne. He plays signicant roles in LNJ
Ms. Mukherjee joined the Indian Foreign Service in 1976 Bhilwara Group companies. He is the Chairman & CEO
and was India's Ambassador to UNESCO, Paris, from of HEG Ltd., a prominent company of the group, and is
2004 to 2010 and subsequently, India's Ambassador to also the Chairman of the group’s two hydroelectric
The Netherlands, from 2010 to 2013. She completed power companies.
FICCI's course on 'Woman and Corporate Governance'.
The LNJ Bhilwara Group is a diversied business
She cleared the Ministry of Corporate Affairs Online
conglomerate with an annual turnover of over ` 9,120
Prociency Test for Independent Directors with
crore ($ 1.20 billion). Mr. Jhunjhunwala has been a
distinction in October 2020. She has served as an
member of our Board since 2012 and currently serves as
Independent Director in Sona BLW Precision Forgings
an Independent Director. In addition to his role at HEG
Ltd. till August 2019 and Jindal Stainless Ltd. till 14th July,
Ltd., he also serves as a Director on the Board of several
2023. Apart from Petronet LNG Ltd., she is presently also
other esteemed companies, including RSWM Ltd. BSL
serving as an Independent Director on the Board of
Ltd. Bhilwara Energy Ltd, India Glycols Ltd. TACC Ltd.
Udaipur Cement Works Ltd. and Jindal Ferrous Ltd. She
Maral Overseas and Sabhyata Foundation.
has been elected as the Woman President of India
Habitat Centre in March 2023. A prolic writer, she has
authored 3 books. 'India and EU: an Insider View'
commissioned by Indian Council of World Affairs, a
leading Indian think tank and published in August 2018
in English and Hindi is a best seller. Her second book, also
a best seller ‘India and EU in a Turbulent World’ was
published by Palgrave Macmillan in 2020. Her latest
book, 'Bengal and its Partition: an Inside Story' published
by Rupa Publications and released in March 2021, is a
global best seller. Her latest book on ‘Indenture and its
Route: a Relentless Quest for Identity’ for Rupa
Publications will be released in October 2023. She has
also published over 100 articles, columns, reports and
monographs in leading national and international
publications. A natural orator, Ms. Mukherjee is a
political commentator on television on Indian Culture
and Civilisation, the India EU relationship, Brexit, India's
interests in the Indo Pacic, the Chemical Weapons
regime, nuclear issues and the changing contours of
India's Foreign Policy, apart from security issues of
concern to India.

14 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Shri Sadhu Ram Bansal, 67 years, is a Post Shri Arun Kumar Shukla, 53 years, is a highly
Graduate (English), Certied Associate of the Indian accomplished professional with extensive experience in
Institute of Bankers and Associate of the Indian Institute the cement and steel industries. He has a Bachelor's
of Banking and Finance. He joined the Board of the degree in Civil Engineering and is an alumnus of IIM
Company as an Independent Director w.e.f. 1st July 2022. Calcutta. He also completed a general management
He is a banking & nance professional and a competent program from INSEAD, France. With nearly three
administrator with over 35 years of extensive experience decades of experience in leadership positions, Shri
in banking in various capacities. He is an Independent Shukla has held various important roles across different
Director of Hindusthan Speciality Chemicals, functions, including Sales & Marketing, Manufacturing,
Hindusthan Urban Infrastructure Ltd., KEI Industries Project Execution, and Technical Services.
Limited, FIITJEE Ltd., and GMR Airports Infrastructure In February 2021, Shri Shukla joined JK Lakshmi Cement
Ltd. He was the Chairman & Managing Director of Ltd. as President and was elevated to President &
Corporation Bank and Executive Director of Punjab Director and inducted into the Board of Directors w.e.f.
National Bank, held Field General Manager and other 1st August, 2022. Shri Shukla is highly regarded for his
posts in Bank of Baroda, and was Chief General Manager ability to turn around businesses in complex and
(on deputation) of India Infrastructure Finance competitive environments.
Company Ltd.
During his tenure at JK Lakshmi Cement, Shri Shukla has
achieved remarkable accomplishments. He has set new
benchmarks for operational performance and has
implemented digitalisation initiatives to drive efciency
throughout the value chain. Additionally, he has
focused on excellence in manufacturing and supply
chain management.
Shri Shukla has implemented various strategic
initiatives, including enhancing channel capabilities,
effective price management, optimising product, and
geographic mix, and promoting sustainability and
environmental, social, and governance (ESG) practices.
He has also emphasised the use of green fuel to support
a circular economy.
Furthermore, Shri Shukla has played a crucial role in
establishing JK Lakshmi Cement's strategic growth plans
and sustainable competitive advantage for the next
decade. His vision and strategic direction have been
instrumental in shaping the company's future and
ensuring its success in the dynamic cement industry.

INTEGRATED ANNUAL REPORT 2022-23 15

 Governance
Driving performance with passion.
CORE TEAM

Rich experience in corporate Rich experience of managing Rich experience in sourcing of

nance, secretarial & commercial corporate Laws’ compliances, Prime fuel, alternative fuel,
matters. He is Fellow Member of Compliance systems, governance Project procurements, stores &
both ‘The Institute of Chartered matters, restructuring and spares, raw materials, packaging,
Accountants of India’ & ‘The corporate actions relating to fund in-bound logistics, as part of
Institute of Company Secretaries raising, etc. complete sourcing solution.
of India’.

Shri Sudhir A. Bidkar Shri Amit Chaurasia Shri S. Ramesh

Chief Financial Ofcer Company Secretary Sr. V. P. (Materials)
Experience: 40+ Years Experience: 21+ Years Experience: 43+ Years

Rich experience in various cement Rich experience in cement A result-oriented professional

plants across India in project manufacturing and cement quality with proven track record of
implementation, modernisation assurance. PhD in geopolymer accomplishing consistent growth
and efciency improvement. technology. Published research in business. Have been associated
Responsible for administrative, papers in international journals with cement industry since last
technical and commercial on geopolymer and uses 27 years and worked in major
functions of the integrated units. of supplementary cementitious Indian markets.
material.
Shri Mukul Srivastva Dr. S. K. Saxena Shri Ranjeev Sharan
Unit Head - Durg Plant Unit Head - Sirohi Plant Chief - Sales
Experience: 32+ Years Experience: 40+ Years Experience: 30+ Years

16 JK LAKSHMI CEMENT LTD.

Integrated Report Statutory Report Financial Statement

INTEGRATED ANNUAL REPORT 2022-23 17

 Performance Highlights
Creating Excellence. Maximising Value.
OPERATIONAL PERFORMANCE
Actual Production Data for last Five Financial Years Capacity Utilisation
FY Actual Clinker Actual Cement Clinker Cap. Cement Cap.
Production Production Utilisation Utilisation
(Million Metric Tons) (Million Metric Tons)

FY18-19 6.45 8.35 98% 77%

FY19-20 6.34 7.78 95% 69%
FY20-21 5.98 8.30 89% 71%
FY21-22 6.62 8.62 96% 74%
FY22-23 6.72 9.38 98% 80%

POWER CONSUMPTION (Kwh / MT of Cement) FUEL CONSUMPTION (K.Cal. / Kg of Clinker)

701 701 701

700 700

70

69 69 69

68

2018-19 2019-20 2020-21 2021-22 2022-23 2018-19 2019-20 2020-21 2021-22 2022-23

FINANCIAL PERFORMANCE

` in Crore ` in Crore
TURNOVER EBIDTA
864 869

6,133
767
722
5,108

4,459
3,940 4,094

472

2018-19 2019-20 2020-21 2021-22 2022-23 2018-19 2019-20 2020-21 2021-22 2022-23

18 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

FINANCIAL PERFORMANCE

` in Crore ` in Crore
NET WORTH 2,724
MARKET CAPITALISATION
9,307
2,452

2,079

1,713 5,549
5,089
1,523
4,091

2,303

2018-19 2019-20 2020-21 2021-22 2022-23 2018-19 2019-20 2020-21 2021-22 2022-23

RETURN ON CAPITAL EMPLOYED RETURN ON NET WORTH

21% 20%
19%
18%
17%
16%
15%
13%

9%

5%

2018-19 2019-20 2020-21 2021-22 2022-23 2018-19 2019-20 2020-21 2021-22 2022-23

INTEGRATED ANNUAL REPORT 2022-23 19

 Our Product Portfolio
Delivering Delight. Exceeding Expectations.
JK Lakshmi Cement Ltd. has a wide product portfolio catering to the varied construction requirements of the discerning customers. It is our
endeavour to become a complete solution provider to the customer looking to make his dream home.
The product range includes an array of cement products like Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Slag
Cement (PSC) and newly introduced Composite Cement.
In addition to cement products, we provide a host of value-added products and services viz. Ready-mix Concrete, Gypsum Plaster, Wall Putty,
Autoclaved Aerated Blocks, Construction Chemicals and Adhesives.

JK Lakshmi Cement JKLC Sixer Cement Platinum Heavy Duty Cement

is an eco-friendly cement that can be used is determined to make each futuristic is a specialist in ‘Heavy Duty Nirmaan’ of
for various construction needs. This construction better, stronger and more any type of construction. High reactive
cement is used in construction of durable. It has been formulated with the y-ash resists sulphates and chloride
buildings, independent houses, hotels, best technology and has come across as a attacks; protecting reinforced bars from
bridges, airports, dams, etc. It is an ideal premium product. This ultra-modern the menace of rust. The result being your
choice for constructing sustainable product is made to full the increasing house remains fresh as ever and durable
buildings as this cement helps the needs of construction processes in for years.
structures to remain strong and durable. modern times.
Available in – OPC, PPC, PCC Available in - OPC, PPC, PCC Available in – OPC, PPC, PCC

20 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi PRO+ Cement Super Sixer Weather Guard Cement Platinum Supremo Cement
is an innovative premium product that has is specially made to overcome unique Its Particle Packing Technology produces
transformed the realm of construction. Indian construction problems with its extra solid concrete compared to regular
Based on an analysis of worldwide trends superior strength and weather guarding cement and keeps the problem of leakage
and consumer insights of India, a team of qualities which makes your home ‘Har and dampness away. Its packaging is
dedicated professionals worked on the Mausam Mai Not Out’. It is a premium tamper-proof and assures easy handling
formulation of this revolutionary product. product manufactured with advanced and clean storage, making sure that
It has attained the distinction of being the EPS, which gives protection from the every house build from this has a strong
No. 1 premium cement in Northern India. extreme weather conditions, dampness roof.
on wall / oor, delay in construction due to
initial strength and rusting on rebar.
Available in – PPC, PSC, PCC Available in – PPC Available in – PPC, PCC

Value-added
Products

JK Lakshmiplast Gypsum Plaster - is a superior quality gypsum Separation' and 'Horizontal Autoclaving' capable of delivering
plaster with exceptional whiteness that can do wonders for home unmatched consistency in the product quality.
interiors. From decorative cornices, ceiling owers, ornamental
JK Smartbond Mortar - is a ready-to-mix jointing material for
columns to re-resistant cladding for structural steel work,
joining AAC blocks, y-ash bricks, concrete blocks, etc. It comes with
JK Lakshmiplast is the most ideal solution.
water proong and self-curing polymers that are made from cement
JK Lakshmiplast Smart Wall Putty - is a contemporary solution to and graded aggregates.
cover unevenness and pin holes on surfaces. It is typically used as a
JK Lakshmi Smart Serv Cement - is a premium service, equipped
ller / sealing agent and applied before painting of the wall in both
with latest technology-enabled features like GPS tracker, quality
internal and external applications.
check sensor, anti-theft lock, etc. It's a funnel-shaped silo for storage
JK Lakshmi Power Mix Ready Mix Concrete - is made of high- and distribution of upto 5-7 tons of cement.
end concrete technology. It is the perfect blend of aesthetic qualities
JK Lakshmi Smart White Cement - gives the nest whiteness with
that results in high standards of construction. With the introduction
the smoothest nish and can be used on all internal and external
of such a path-breaking innovation in the realm of building
surfaces.
materials, architects and individual house builders are independently
creating textures, surfaces and shapes that were complex and JK Lakshmiplast Smart Wall Primer - primer is a water-based
impossible to create before. undercoat which provides ideal nish to the interior walls after the
nishing paint. It blocks out stains and odours, seals the wall and
JK Smartblox Autoclaved Aerated Concrete (AAC) Blocks - are
provides smooth surface.
produced in a state-of-the-art plant with German machinery and
technology, incorporating technological innovations such as 'Green

INTEGRATED ANNUAL REPORT 2022-23 21

 Our Operational Reach
Expanding presence sustainably.

22 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

JKLC and UCWL Plants

Jharli
(Grinding Unit and AAC Block Plant) Aligarh
(AAC Block Plant)

UCWL
(Integrated Unit)

Jaykaypuram
(Integrated Unit)
Kalol
(Grinding Unit)

Durg
Surat (Integrated Unit)
(Grinding Unit)
Cuttack
(Grinding Unit)

INTEGRATED ANNUAL REPORT 2022-23 23

 Strategic Objectives
Cementing tomorrow, today.
JKLC Strategic Business Direction

The Company is a renowned and well-established name in With formidable cement brands like JK Lakshmi PRO+, JK
the Indian Cement Industry and has a formidable Sixer Cement, JK Lakshmi Platinum and Platinum Heavy
presence in Northern, Western and Eastern India’s cement Duty (Steel Guard), the Company offers impeccable
markets. The rst plant was set up in 1982 and today, the quality products for customers. The Company aspires to
Company has modern and fully computerised, integrated be a leading company in the Indian Cement Industry while
cement plants at Jaykaypuram, in the Sirohi district of maintaining a clear focus on social upliftment and
Rajasthan; at Dabok, in the Udaipur district of Rajasthan (a environment protection for inclusive growth and a
unit of subsidiary of the Company) and at Ahiwara, in the realisation of the truly empowered society.
Durg district of Chhattisgarh. Besides, there are four split
location grinding units in Gujarat, Haryana and Odisha.

Strategic Ambition by 2030

4 Use of emerging digital trends to drive value and efciencies

To reach 30 million tons
capacity by 2030 and 4 Continued focus on development of people capabilities and
be among the Top Five work on future-ready organisation
EBIDTA/Ton earning
cement companies.
4 Adherence to the road map to achieve leadership position in
ESG risk rating

4 Implementation of laid down road map to achieve renewable

energy and AFR targets

4 Reinforce and consolidate our image of responsible corporate

citizen through value adding and impactful CSR activities
4 Build capacity to achieve road map for volume and EBIDTA
4 Revisit vision and mission to make it more inspirational and
4 Consolidate leadership position in manufacturing efciency
engaging
4 Efcient supply chain management to drive value without
4 Setting up a project for capacity expansion of 1.5 Mn. Tons of
compromising on customer satisfaction
clinker capacity and 2.50 Mn. Tons of cement capacity at our
4 Continued focus on VAP and the road map for VAP portfolio Group company UCWL
expansion
4 Installing solar power plants at Sirohi, Durg and UCWL to
4 Institute research and development eco-system to come out further reduce power cost
with new and green products
4 Committing to becoming a net-zero company by 2047
4 Continuous watch on the emerging raw material supply
4 To further enhance the circular economy, JKLC is working on
situation and work on multiple procurement scenarios
utilising alternative fuels at its integrated units and our thermal
4 Improve BEI through marketing strategic road map substitution rate has gone up to about 5% in FY 2022-23 with
rm plans to take it up to 20% by FY 2029-30

24 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Achievements

JKLC recorded revenues of ` 6,071 crore during FY 2022-23, registering a

growth of 20%. This growth was aided by higher volumes with improved
manufacturing activity amidst a volatile macro backdrop

Robust operating cash ows. Our capital employed metrics have reported
progress, leading to improved return ratios. We have also repaid borrowings
during this year making our company a net debt-free company

Green power share (on a consolidated basis), has increased to 37% of the
total power requirement in FY 2022-23

Our Commitment To ESG

To take our ESG drive to the next level, we at JK Lakshmi Cement 4 Ep100 - Under EP100 membership, we have taken the target of
Ltd., have undertaken several memberships to meet sustainable doubling our energy productivity by 2040 from the baseline
goals and to reduce our carbon footprint. These memberships and year 2015 at group level.
our commitments are as follows:
4 UN Global Compact - Under the membership of UNGC we are
4 SBTi - Under the science-based target initiative we are willing to committed to demonstrating progress made against the Ten
limit the global temperature rise to 1.5°C above pre-industrial Principles of the UN Global Compact and the Sustainable
level and we are also committed to net-zero targets. Development Goals (SDGs).
4 Re100 - We have set the target to meet 100% of our total 4 GCCA-India - To align our sustainable goals and to develop our
electrical energy requirements through renewable energy by targets in line with Indian cement industries, we have taken the
2040 and the same has been committed to RE100 at group level. membership of GCCA-India on group level basis.

Best ESG Performance in Renewable Energy - JKLC as an Best ESG Performance in Community Engagement and
Organisation Empowerment - JKLC as an Organisation

INTEGRATED ANNUAL REPORT 2022-23 25

 Introducing Our Capitals

Financial Capital Intellectual Capital

A well-balanced funding mix (debt and equity) that is used to Our ability to create competitive products and gain market share is made
maintain and increase value across all capitals. possible by our scientic expertise, research and development (R&D)
capabilities, information technology infrastructure and digitalisation.
` in Crore
Inputs Inputs
Equity 58.85 Sales Effectiveness
Other Equity 2,664.89 Digital Transformation
Net Worth 2,723.74 Continuous Improvements
Debt 811.23 Manufacturing Excellence
Fixed Asset 2,772.22
Outcomes
Outcomes Enhanced Customer Experience
Revenue ` 6,133.28 Crore Enhanced Decision Making
EBIDTA ` 766.50 Crore Enhanced Efciency
PAT ` 330.77 Crore Responsible Production
ROCE 16%
Debt : Equity Ratio 0.3 Times
EPS ` 28.11
Social and Relationship Capital

To maintain our status as a long-term partner of choice and maintain

our operating licence, we work collaboratively with the communities,
supply chain partners and customers.
Manufactured Capital Inputs
Infrastructure, including buildings, warehousing, logistics centres, Mandatory Spend ` 939.13 Lakhs
and physical assets, allow us to guarantee effective operations and Total CSR Expenditure ` 939.15 Lakhs
produce long-term benets.
Outcomes
Inputs
Total Direct Beneciaries 1.84 Lakhs
Total Manufacturing Capacity

Installed Capacity (MT)

JKLC-Sirohi 48,85,000
JKLC-Durg 19,80,000

Outcomes
Plant-wise Production (MT)
Clinker-JKLC-Sirohi 49,86,780
Clinker-JKLC-Durg 17,29,000

26 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Human Capital Natural Capital

Our ability to produce value is made possible by Natural resources, both renewable and non-renewable, that we
our personnel's knowledge, abilities, experience employ in our operations, create social and economic value as well as
and motivation. a positive impact on the environment.

Inputs Inputs
Employees on Roll 1,476 Total Fuel Used 2,23,50,590 GJ

Permanent Workers 223 Total Water Used 11,52,045 KL

Other than Permanent Workers 2,069 Total Electrical Energy Consumed 24,23,080 GJ
Non - renewable Energy Used 15,83,703 GJ
Renewable Energy Consumed 8,39,377 GJ
Outcome
Attrition Rate: Talent Attrition ≤ 1% , Voluntary Attrition ≤ 8% Outcomes
New Joinees 170 Total Waste Recycled 16.70 MT
Training Man-days ≥ 4 Days per Person per Year Total Waste Reused 30810.50 MT

INTEGRATED ANNUAL REPORT 2022-23 27

 Risk and Risk Mitigation
Managing uncertainty.
Risk Management Process

Risk Identication Risk Categorisation Assessment of Identied Risks Risk Mitigation Risk Reporting and Disclosure

Monitoring of Risk Mitigation Efforts

Integration with Strategy and Business Plan

4 Risk management process enables JK Lakshmi Cement to identify, assess and manage risks. It is the responsibility of everyone in the
organisation and it applies to all functions and operations in the organisation.
4 The Company’s risk management system is always evolving. It is an ongoing process, and it is recognised that the level and extent of the risk management
system will evolve commensurate with the development and growth of the Company’s activities. The risk management
system is a ‘living’ system and the documentation that supports it is regularly reviewed and updated in order to keep current with
Company circumstances.

Risk Categories
Production Potential Safety Raw Material Mining Lease
Hazard

Human
Resource Attrition Risk

Sales & Retention of

Business Risks Marketing Market Risk channel partners

IT Risk &
Cybersecurity
Risks
Logistics &
Operations

Regulatory and Non-compliance,

Regulatory Changes &
Compliance Risks Litigation

Newly
Newly Identied Newly Newly
General Risks Identied Other Risks
Identied ESG Risks
Identied
Risks (I) Risks
& (E) Risks (I) & (E) Risks (I) & (E)

Increase in the costs of raw material, power and fuel due to ination or global price trends may impact protability. The Company is employing
various means to reduce the impact of rising costs through better fuel sourcing, dynamic fuel mix capabilities to capitalise on changing trends in
price and the use of alternative fuels. A focus on achieving better operating efciencies and reducing coal and power consumption continues as a
way of life. The Company continues to evaluate and assess long-term strategic solutions from waste heat recovery systems to solar energy, from
alternative fuel to alternative sources, etc. to manage costs in the medium and long term.
One of the concerns and expectations in the industry is whenever the GST council meets, the industry eagerly hopes that the cement will be put
under lower tax slabs than the slab of 28%. In the 49th GST Council meeting held on 18th February 2023, there was hope that the Council might
lower the GST rate, however, it did not come up with the tment committee. Ever since the introduction of GST, the Council is periodically
reviewing the tax rates and is consistently bringing more and more commodities under lower tax slabs. Cement is now one of the very few
commodities that is in highest tax slab and understandably because it is not easy for the Government of the day to let lose the tax cow. Like always,
the Industry prefers to be positive and keep its hope alive for a favourable outcome.
The Company has made various efforts to increase its market presence and market share in its natural markets, as well as in economically benecial
markets. It is putting all efforts into considerably shrinking the lead distances to optimise logistics cost further and increase the share of blended
cement in its product portfolio. These measures would provide the Company cushion to absorb the impact of increase in various costs.

28 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Business Risks

SR. RISK RISK DESCRIPTION MITIGATION STRATEGY

NO.
1 Production Risk - • Critical equipment failure • Occupational Health and Safety Management System (all units
• Explosion in boiler/coal mill are ISO 45001:2018 certied)
Potential Safety • Explosion in storage of • Engineering control as well as active and passive re protection
Hazard explosive & oil for prevention of re and explosion (continuous monitoring of
• Fire & electrocution: critical parameters like temp & CO, Nitrogen purging system,
It can cause loss of people re stop, re retardant coating, deployment of re
& production extinguishers and re hydrant system with real time
monitoring through IoT)
• Structure stability testing and certication by competent
authority

2 Production Risk - • Exponential increase in • Change in fuel mix – reduced petcoke blend from 90% to 70%
petcoke price • Further increase in petcoke % in fuel mix whenever prices are
Availability of Raw
• Uncertainty in Availability conducive
Material & Price
of Dry Fly Ash • Investment plan for higher possible use of AFR
Fluctuation
• Wet y ash dryer and feeding system
• Wet y ash material handling system
• Strategic Tie ups with captive power plants

3 Production Risk - • With depleting reserves at • Aggressively participate in the auction of the mining leases. We
existing mines, availability of have secured few mines in some of the auctions.
Availability of limestone may be a risk for • Continuously represent to the government for necessary policy
Limestone continued production. amendments so that auction of the existing mines can be held
Limestone is the basic raw well before their expiry
material for cement
manufacturing and its
consistent availability at
optimum cost is essential
for existing and future plant
requirements.

4 Human Resource • Attrition of key people may • Maintaining good HR practices and innovative initiatives to
adversely impact business keep the morale high
strategy • Provide growth opportunities
• Focus on rotation of existing people with different roles /
locations
• Preparing the leadership pipeline across all key roles

5 Market Risk • Industry is still having a higher • Focus on adding quality network which can ensure consistent
(Macro Level) un-utilised capacity than volume, for which we will focus on adding more Elite & Above
demand, thus there is class dealers and focus on reducing the dealer churn
extreme volatility in demand • Continuously enhance proportion of our sales in the core
• Irrational variation in inter- markets improving our premium product and trade sales
state prices can affect • A strong inbuilt governance mechanism is in place to check and
inter-state movement of control inltration with blacklisting parties and penalty
cement imposition to inter-state unethically trading parties
• Changing construction • Continue to expand our value added products business to
practices & increasing use of foray into other construction solutions, mitigating possible
substitute material may cement demand decrease.
negatively impact Cement
demand

INTEGRATED ANNUAL REPORT 2022-23 29

 Business Risks

SR. RISK RISK DESCRIPTION MITIGATION STRATEGY

NO.
6 Retention of • Competitors continuously • Intense engagement with partners using various digital
Star Dealers / Channel target channel partners initiatives and latest technology.
Partners that will affect market share • Long-term incentives
• Reward for loyalty with revamped loyalty program and app

7 IT Risk • Application / Network • Alternative architecture is in place for IT Network to mitigate

Outage risk scenarios due to any sort of network outage.
• Risks due to potential • Disaster Recovery plan is in place for critical applications to
vulnerabilities in applications ensure non-interruption in business processes.
and IT Infrastructure

8 Cybersecurity • Potential vulnerabilities in • Comprehensive Technical Vulnerability Assessment and

applications and IT Penetration Test (VAPT) Audit has been done to proactively
infrastructure identify and address any potential weaknesses in our publicly
• Cybersecurity awareness exposed applications / services and IT infrastructure.
Gap in Employees – Data • Risk-based Vulnerability Management (RBVM) solution has been
leakage, unauthorised nalized to be implemented to discover, prioritise, remediate,
usage of Company’s and report on vulnerabilities to reduce the risk at high velocity.
assets etc. • As part of Cyber Threat Intelligence (CTI), independent internet-
• Risks due to weakened based passive intelligence gathering has been performed to
preventive and detective discover cyber and social risks for the Company
controls for IT & application • For strengthening people-centric security, cyber drill has been
recently conducted. A Cybersecurity Awareness Training course
has also been designed.
• Information Security Controls are getting evaluated as per
compliance to ISO/IEC 27001:2022 Standard.

9 Logistics & • Shift of railway focus to coal • Appropriate actions are being taken.
Operations Risks industry has created
shortage of BOXN wagons,
resulting into increase in
logistics costs

30 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Regulatory, Compliance and General Risks

SR. RISK RISK DESCRIPTION MITIGATION STRATEGY

NO.
10 Non Compliance, • Non compliance of • Robust system is in place to track and comply with regulatory
Regulatory changes applicable regulations may changes
& Litigations lead to imposition of • Systems and process are in place to minimise areas of
penalties, suspension of litigation
operations and reputational
damage

11 Newly Identied • Reputation damage can be • Make reputational risk a part of the strategy
Brand Reputation catastrophic, as reputation • Control processes via standardisation, technology, policies, and
Risk is one of the Company’s procedures reduce the likelihood and severity of events that
biggest assets. could cause reputational damage
• Focus on positive image building and communication
• Create response and contingency plans

12 Others Risks • Risk of fraud, embezzlement • Robust internal control for strict checks & balance system, and
and misappropriation of wide scope of audit by internal auditor and rotation of
Company’s resources. internal auditors
• Natural risk or acute market • Adequate checks and balances being provided in the ERP
risk that are sudden like system, SAP, SFDC data protection
Covid 19, market demand • Checking of all debits in all bank accounts on a daily basis.
shrinkage events like wars • Insurance policy is already in place for all the plants to cover the
or natural calamities natural risks
• Business product diversication and geo-expansion to hedge
the domestic market risks

13 ESG Risk Climate change impact, carbon, • Invest in energy-efcient technologies and alternative fuels to
emissions, health & safety, reduce carbon intensity
transparency & disclosure, • Explore carbon capture and storage (CCS) technologies to
stakeholder engagement, capture and store CO2 emissions
harmonious co-existence with • Implement energy management systems to optimise energy use
community and others and reduce waste
• Increase the use of renewable energy sources & Conduct energy
audits to identify efciency improvements and prioritize
investments.
• Implement water management strategies to recycle and reuse
water within the production process wherever feasible.
• Establish comprehensive health and safety programs with clear
policies and procedures.
• Regularly train employees on safety protocols and provide
necessary protective equipment.
• Implement environmental monitoring & control measures to
minimise emissions, dust and noise.
• Engage in transparent and proactive communication with local
communities.
• Support community development initiatives and contribute to
local infrastructure improvements.
• Ensure compliance with labour laws, including fair wages,
working hours, and employee benets
• Compliance of corporate governance norms.

INTEGRATED ANNUAL REPORT 2022-23 31

 Stakeholder Engagement
Partnering for value creation.

At JK Lakshmi Cement Ltd., we stay engaged with our groups and ensure meaningful outcomes. We remain dedicated to
internal and external stakeholders who are safeguarding the health, safety, welfare, and professional growth of
our internal stakeholders, while delivering quality, accountability,
fundamental to the success of our business. We
responsible business conduct, as well as ensuring sensitivity to social
proactively seek their valuable insights to understand
and environmental concerns for our external stakeholders.
their needs and expectations. This approach goes a
long way in helping us address emerging trends, Our efforts to create sustained value are manifested by our regular
engagement with our stakeholders. This helps us understand their
manage and mitigate business risks and make use of
needs and expectations, gain better insights into our opportunities,
existing market opportunities. Our key stakeholders
and reduce risks to our operations. Established systems and processes
are identied based on the value and expectations help us identify, prioritise and address the needs and concerns of our
generated by them and their impact on the business. stakeholders across all plant locations and other sites of operations.
Various engagement processes such as customer satisfaction surveys,
We believe an effective stakeholder engagement process is necessary
supplier meets or visits to plants, employee engagement events,
to achieve our business and sustainability goals and promote
regular meets with dealers and investors help us stay in touch with
inclusive growth. Identifying and mapping the relevant internal and
our stakeholders and develop strong relationships with them. This
external stakeholders are key to this process. We engage with both
has created a win-win situation for us as this relationship contributes
internal and external stakeholders. Our engagement process gives us
to and supports the development of each other.
insight into the operating environment, keeps us abreast of the latest
market trends and customer needs, and helps us understand our We have a stakeholder engagement matrix that outlines how we
growth opportunities. This enables us to recalibrate our strategy in engage with each stakeholder group, the frequency and channel of
accordance with the needs and expectations of our stakeholder engagement and communications.

Shareholders Institutional Industry associations, Employees

investors knowledge partners & workers

Our Stakeholders

Customers Value chain Communites Statutory body

partners

32 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Stakeholder Engagement Matrix

Stakeholder Frequency of Engagement Key concerns Feedback

engagement mechanisms raised mechanism

Shareholders Regularly Emails, letters, SMS, Disseminating and Meetings,

newspapers, meetings, sharing of information action plans
company website, with the shareholders
stock exchange, with a view to update
other statutory and also to seek their
authority, road shows approval

Institutional investors Need based Annual general ROI and ESG Interactive
meetings, quarterly performance communication
concalls, presentation
on website

Industry associations, Need based Meetings, Policy advocacy, Interactions, meetings,

knowledge partners communication technology and best seminar & conference
practice sharing, ESG,
awards and
recognitions

Employees & workers Daily, weekly, monthly, Road shows, emails, Employee well being, Performance annually,
need based meetings, career development, appraisals, satisfaction
communication from grievance handling, surveys, other meeting
top management conducive work forums
environment & good
culture, training &
development, industry
scenario

Customers Need based Road shows, feedback Complaints handling, Customer satisfaction
periodically surveys, customer product surveys and
needs, social media, communications communicating with
campaigns, customer customers
meets

Value chain partners Daily, weekly, monthly, Meetings, phone calls, Customer relationship, Meetings, interactions
annually, need based emails product knowledge,
quality & timely
delivery, EHS & social
policy deployment

Communities Daily, weekly, monthly, Meetings, messages Community Interactions, surveys,

need based development, impact assessment
employment &
livelihoods, support
for health, water,
education, sanitation
etc. for quality of life

Statutory body Need based Interactions, industry Compliance, industry Interactions

forum meets, concerns, government
compliance report expectations

INTEGRATED ANNUAL REPORT 2022-23 33

 Materiality Assessment
Addressing your concerns.
Materiality Analysis
Stakeholder inclusiveness is central to the materiality determination organisational processes like risk assessment studies, nancial reports
process. For JK Lakshmi Cement, the stakeholder engagement - both and sustainability reports using disclosure frameworks was
internal and external - inuences the organisation’s activities, considered in the process. The outcome of all of them has been the
product and services. It forms the basis to identify and prioritise basis for determination of key material aspects and further reporting
materiality aspects. We review the progress on material aspects on their performances and targets for our stakeholders.
concerning our stakeholders on an on-going basis and communicate Identication of relevant stakeholders and their selection was done
the progress on the same through various channels. Periodic based on whether they were external / internal, the mode of
discussions, reviews with the senior leadership help us focus our engagement, key aspects and concerns related to them, and the
attention on prioritising and meeting the expectations of the frequency of interaction
stakeholder fraternity. In FY 2022-23, a list of all issues that could be
material for our businesses was identied from the above-mentioned Prioritisation of material topics:
sources. Subsequently, the material topics were plotted based on The materiality process resulted in the emergence of a list of material
their importance to stakeholders and their impact on business in a topics signicant for JKLC - a list prioritised by the stakeholder groups
graphical presentation. we engaged with and which reected the sustainability context of
the Company. The overall selection of the nal material topics was
Stakeholder interaction and identication of material
done considering the impact that each one could create across the
issues: value chain. The reporting principles on stakeholder inclusiveness,
In the FY 2014 -16, a stakeholder interaction exercise was conducted sustainability context, materiality and completeness were also
across our operations, covering senior management and mid-level ensured throughout the process. The stakeholders’ engagement
management, to identify and understand their concerns among the process played an important role in identifying and prioritising the
identied universe of material topics. The exercise included internal key material aspects for the Company on important fronts like CSR,
stakeholders of the Company from various functions like operations, supply chain, legal and others. The materiality matrix was plotted
power, environment, mines, accounts, purchase, health & safety, with total 55 identied issues. Out of the total identied material
CSR, marketing services and others. Following the same, we issues, 12 have been considered to be of high concern to Company’s
conducted an extensive review of literature to identify issues business prole and stakeholders. Addressing these issues is an
considered as material and identied as risks by our business peers. essential part of our business strategy and risk mitigation efforts. The
We also tried to understand expectations expressed in international set of material topics determined are the same in this report and the
standards and agreements. Information was drawn from annual previous Sustainability Report. We believe that these are relevant
reports, sustainability reports and ISO 26000 guidance on social material topics as they also reect our vision, action plans and
responsibility. An internal perspective on risks – as identied through progress towards the diverse challenges faced by us across various
aspects of sustainability.

The Company has identied detailed risks on key material aspects that relate to all dimensions of sustainability to
mitigate and create opportunity through innovation and consistency. Some key risks identied out of material
aspects are given below:

12 Materiality Issues:
• Economic value and business performance
• Customer satisfaction
• Integrity and transparency
• Compliance to regulation
• Human capital development
• Operational efciency `
• Occupational health and safety
• Energy and emissions
• Water management
• Resource conservation
• Supply chain management
• Operational efciency

34 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Material Aspect Business Risk Financial Risk

Economic Value & Business Poor business performance affects Poor business performance implies
Performance employee morale, productivity and reduced business opportunities for an
innovation. It further hampers the enterprise, meaning lower dividends for
reputation of the Company. shareholders and increased cost of capital.

Customer Satisfaction Insufcient initiatives towards sustaining Inadequate initiatives towards sustaining
customer satisfaction hampers customer customer satisfaction implies lower
loyalty, leading to reduced market revenue from sales.
reputation and lower revenue from sales.

Integrity and Transparency Economic crimes such as corruption and Unethical acts by an enterprise can bring
bribery are unethical and consistently about substantial reputational damage
harmful to a Company’s intangible to a Company hence affecting its future
assets such as reputation, business earnings besides regulatory penalties.
relationships and staff morale.

Compliance to Regulation Involvement of an enterprise in cases of Sanctions and nancial penalties may be
non-compliance may lead to reduced imposed on an enterprise by the
trust from stakeholders. Additionally regulatory authorities for acts of non-
business units may face closure due to compliance.
non-compliance.

Human Capital Development Lack of human capital development Insufcient investment towards
initiatives will lead to reduced employee employee development will hamper the
productivity and poor turn-around time, Company’s overall performance and its
leading to weak performance at the progress towards its strategic targets
operational level. leading to decline in revenues.

Community Development Lack of community development An enterprise may incur nes in case of
initiatives can bring about hostility and insufcient investment towards
unrest among the local community, thus community development programme.
endangering the Company’s social
license to operate.

Occupational Health and Safety Insufcient investment towards ensuring Lower performance not only poses
occupational health and safety of threat to a Company’s reputation and
employees has a direct negative impact staff morale, but also results in
on labour costs through lower increased operating costs in the form of
productivity. nes and other contingent liabilities.

Energy and Emissions An enterprise having a poor track record The regulatory authorities may impose
in energy consumption and emissions penalties on the enterprise due to poor
management is likely to experience energy and emissions performance.
reduced trust from investors and
stakeholders.

Water Management Lack of water management initiatives Purchasing water from external sources
will lead to depletion of water resources would lead to higher operating costs
in an area and impacting social and and reduced margins for the enterprise.
biodiversity value.

Resource Conservation Poor resource management will have Quality resource will be expensive and
impact on Company’s long lasting scarce in future which will impact the
existence and performance, it will also production cost leading to lower
lead to resource depletion. protability for stakeholders.

Supply chain management Unsustainable supply chain and its Poor supply chain management implies
inefcient management impacts business reduced protability and business
performance in terms of top-line and opportunities for an enterprise, meaning
bottom-line and may be a reputational lower dividends and increased cost.
risk for the Company.

Operational Efciency Low operational efciency results in High operational cost impacts the
high cost and reduced competitiveness. protability of the Company.

INTEGRATED ANNUAL REPORT 2022-23 35

 Financial
C apitalMaximising Value. Fortifying Future.
Strengthening our growth footprint.
At JK Lakshmi Cement, we are committed to creating higher value
for all stakeholders through ethical and sustainable practices. The
Company has demonstrated resilience and durability, even in the
face of a challenging external environment. Our meticulous nancial
management approach translates into higher productivity,
protability and long-term growth. By leveraging a strong balance
sheet, achieved through cost-optimisation and access to
cost-effective capital, we have been able to explore numerous
opportunities in a dynamic operational landscape.
In the nancial year, we continued to demonstrate
remarkable strength by increasing our revenue while
effectively achieving our business objectives. Furthermore,
we successfully completed a capital raise, securing essential
resources to drive our future growth initiatives. In FY 2022-
23, the Company also accomplished the remarkable feat of
becoming a ‘Net Debt-free Company’, strengthening our
position for future growth and nancial stability.
To ensure continuous progress, we consistently benchmark our
operational Key Performance Indicators (KPIs) against both
internal and external standards. This diligent evaluation enables
us to enhance productivity and maximise yields. Our operational
excellence strategy is further bolstered by the remarkable
strength of our unique marketing initiatives and continuous
digital programmes. These initiatives have not only expanded
our consumer touchpoints but have also signicantly extended
our reach, creating a gateway for future growth as we continue
to position ourselves as leaders in our industry.

36 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Focus Areas FY 2022-23

Business Strategy

Market
Capitalisation of
over ` 9,300 Crore

Innovation

A Net Debt-free
Company as of
31st March, 2023

Economic Value

Long-term Rating at
AA (Double A) with
Highlights FY 2022-23 a stable outlook

`
Credit Rating of
` A1+ (A One Plus)
for its short-term
Crossed ` 6,000
Crore turnover borrowings

Gross Debt to
Sales growth at `
EBIDTA Ratio at
12% as against all- ` 1.06 times as of
India growth of 9% 31st March, 2023

One of the least- Net Debt to EBIDTA

cost producers Ratio is at negative
of cement in the levels as of 31st
Industry March, 2023

INTEGRATED ANNUAL REPORT 2022-23 37

 Financial Capital - Revenue and Sales Growth
Breaking barriers. Sustaining success.
During FY 2022-23, turnover of the Company registered a healthy growth of 20% to cross ` 6,000 Crore mark. The Company’s cement sales
growth was about 12% as against all-India cement growth of 9%. Further, the Company’s capacity utilisation for FY 2022-23 at 80% was higher
than the Industry average during the year.

` in Crore ` in Crore
TURNOVER EBIDTA
864 869

6,133
767
722
5,108

4,459
3,940 4,094

472

2018-19 2019-20 2020-21 2021-22 2022-23 2018-19 2019-20 2020-21 2021-22 2022-23

Least-cost Producer
JK Lakshmi Cement Ltd. is known in the Financial Market and amongst the Investors’ Community as one of the least-cost producer of cement in
the Industry. Its efciency parameters in terms of both the power and fuel consumption are one of the best in the Industry.

POWER CONSUMPTION (Kwh / MT of Cement) FUEL CONSUMPTION (K.Cal. / Kg of Clinker)

701 701 701

700 700

70

69 69 69

68

2018-19 2019-20 2020-21 2021-22 2022-23 2018-19 2019-20 2020-21 2021-22 2022-23

38 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Market Capitalisation
The Company has always been endeavouring to increase its Total Shareholders’ Return (TSR). Apart from maintaining consistently high dividend
rate, the Company has also been rewarding the Shareholders through growth in its share price. During the year, the Company’s market
capitalisation shot up by over 68% and crossed the landmark market capitalisation of ` 10,000 Crore, before settling at year-end capitalisation of
over ` 9,300 Crore.

` in Crore
DIVIDEND (%) MARKET CAPITALISATION
9,307

100%

75% 75% 5,549

5,089

50% 4,091

2,303
15%

2018-19 2019-20 2020-21 2021-22 2022-23 2018-19 2019-20 2020-21 2021-22 2022-23

` in Crore
NET WORTH 2,724

2,452

2,079

1,713
1,523

2018-19 2019-20 2020-21 2021-22 2022-23

INTEGRATED ANNUAL REPORT 2022-23 39

 Financial Capital - Net Debt-free Company
The Company has continuously been focusing on reducing its debt over the last several years. It has been able to bring down its Net Debt down
from ` 1,662 Crore as of 31st March, 2017 to a meagre ` 73 Crore over a period of 5 years upto 31st March, 2022. The Company has become a
‘Net Debt-free Company’ as of 31st March, 2023.

GROSS AND NET DEBT

` in Crore

2,171

2,020

1,662
1,613
1,568
1,467

1,232
1,125
1,018
963
811

396

73
-74
31-3-17 31-3-18 31-3-19 31-3-20 31-3-21 31-3-22 31-3-23

Gross Debt Net Debt

With the reduction in debt, the leveraging of the Company has come
down from 1.57 times as of 31st March, 2017 to 0.3 times as of
31st March, 2023. Similarly, the Net Debt Equity Ratio of the
Company has fallen from 1.2 times as of 31st March, 2017 to
negative levels as of 31st March, 2023.

DEBT:EQUITY AND NET DEBT:EQUITY

` in Crore
1.57

1.39

1.2
1.08
1.06

0.86
0.81

0.59
0.54

0.39
0.3
0.19

0.03 -0.03

31-3-17 31-3-18 31-3-19 31-3-20 31-3-21 31-3-22 31-3-23

Debt:Equity Net Debt:Equity

40 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Credit Rating
Based on the continuous deleveraging of the Company, the Rating The Company continues to enjoy the highest possible credit rating of
Agencies, CRISIL Ratings Ltd. and CARE Ratings Ltd. have re-afrmed A1+ (A One Plus) for its short-term borrowings from CRISIL and
company’s long-term rating at AA (Double A) with a stable CARE.
outlook. The re-afrmation of the Rating by the Rating Agencies is The Company Treasury Corpus as of 31st March, 2023 stood at ` 884
based on strong operating performance backed by the Company’s Crore which is higher than its Gross Debt of ` 811 Crore. The
robust revenue growth across its various markets, improved cost Company continues to deploy its treasury corpus judiciously in
efciencies and sales realisations. The re-afrmation in the Rating various tax-efcient debt instruments to garner good returns for the
also considers various improvements in the Operational Risk Prole Company. This comfortable liquidity position would enable the
of UCWL; with the Company’s healthy contribution of cash accruals Company to stand on a rm footing to reach its mission of achieving
at consolidated level. cement capacity of 30 Million Tons Per Annum by year 2030 by
Further the improved operational performance together with growing organically as well as in-organically.
company’s de-leveraging has enabled it to bring down its Gross Debt The Company continues to make detailed presentations on its
to EBIDTA Ratio from 4.99 times as of 31st March, 2017 to 1.06 times operational and nancial performance periodically to the Investors,
as of 31st March, 2023. Similarly, the Net Debt to EBIDTA Ratio has Bankers and other Stakeholders through interactions by way of
come down from 3.82 times as of 31st March, 2017 to negative levels quarterly concalls and roadshows both in India and abroad.
as of 31st March, 2023.

“Our aim is wealth maximisation for all

GROSS DEBT AND NET DEBT TO EBIDTA stakeholders through increased Economic Value
Added (EVA) and Market Value Added (MVA)”
4.99
Sudhir A Bidkar
CFO, JK Lakshmi Cement Ltd.
4.21
3.82

3.27 3.42

2.61

2.03

1.41 1.30
1.11 1.06

0.46
0.08 -0.10
31-3-17 31-3-18 31-3-19 31-3-20 31-3-21 31-3-22 31-3-23
Gross Debt:EBIDTA Net Debt:EBIDTA CFO addressing the Stakeholders

INTEGRATED ANNUAL REPORT 2022-23 41

 Intellectual
C apitalInnovating to stay ahead of times.
Implementing future-forward sustainable
business solutions across the value chain.
Our innovative capabilities, rapid digitalisation and aggressive
brand-building have always kept us ahead of the competition. One
of the keys to our success is innovation.
Our R&D centres at our various plants, our IT Innovation Lab and the
Centre of Excellence (CoE) are our pillars of Intellectual Capital. Our
central team collaborates closely with our network of regional team
members to encourage innovation across our markets. They, in turn
work with our commercial teams to serve our customers' building
needs from concept to completion. Our building experts are in
constant touch with our end-users and inuencers (masons,
engineers) and apprise them with the latest building technologies.
Our experts in articial intelligence and data mining are the
backbone of insights and informed decisions, and contribute
signicantly to the innovation drive.

42 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Focus Areas FY 2022-23

Improving Quality
Innovation of Production

Identifying and
Executing
Continuous
Sustainable Improvements that
Products will Generate Value

Prime Focal Areas Key Achievements FY 2022-23

Sales Effectiveness
4 Live EBITDA
Tracking
4 9 Box Grid Sales
Geo Mix
Sales
Effectiveness 4 Channel Mix
Analysis Tool
4 Salespedia -
Responsive
Dashboards,
Analytical
Reports, Insights
4 Sales Academy for
Digital Employees
Transformation 4 Rewards and
Recognition
Contest

Empowering
Businesses through
Digital Engine
4 Leading
Increasing Development
Productivity and Roll-out of
Mobile
APPs for Internal
and External
Stakeholders
as part of
multiplying
our Digital Reach
through Salesforce
Reducing Costs 4 WhatsApp
Chatbot- VANI

INTEGRATED ANNUAL REPORT 2022-23 43

 Intellectual Capital - Centre of Excellence (CoE)
Inspiring introspection. Igniting innovation.
Our Centre of Excellence (CoE) team at JK Lakshmi Cement acts with a purpose at the core to achieve business transformation by adopting and
implementing critical processes, technologies, or applications to help the Company become more efcient. The team helps business focus and
align its current resources and expertise around a specic capability to accomplish and sustain world-class performance and value.
By embracing digital technologies and fostering a culture of innovation, JK Lakshmi Cement is working to generate new ideas, explore creative
solutions and drive continuous improvement. This enables the Company to adapt to market
changes, identify new business opportunities and stay ahead of competitors. The primary
objectives aligned with digital transformation are enhancing operational efciency, staying
competitive, improving decision-making capabilities, enhancing customer experience,
strengthening supply chain, fostering innovation and promoting sustainability within the
organisation.
In the last year, CoE leveraged its project management abilities and ideas from functional
specialists inside and outside the Company to make a long-term impact by fostering a culture
of continuous improvement throughout the organisation. We have undertaken various
efforts in the last year to improve our processes, as well as foster an environment of
intrapreneurship and enable people to uncover their potential and speed up-skilling. Internal
employee KRAs, business objectives and the back-end IT environment were adjusted to
match our customers' expectations. The team took advantage of the chance to consolidate
best practices and new technologies while utilising data-driven decisions to improve
customer experience and engagement.

Projects Executed
Sales Excellence
Sales operations matter and the keyword for us is every day efciency - enhancing business
impact without spending more time and money. The Salesforce CRM makes this possible by
supporting sales leaders and ofcers with optimised technology that drives strategy and
more productive work. Sales team is provided with tools like performance dashboards and
automated forecasting that support planning and key decisions.
4 EBITDA ‘Live’ Tool - Real time structured approach to capitalise the opportunity
4 9 Box Grid - Where districts are prioritised based on key dimensions viz. market
attractiveness and JKLCs ability to score high
4 Channel Mix Analysis Tool – Identies counter-wise distribution of % share and
potential to increase the share to drive impact
4 Salespedia - Platform for all our business needs with responsive dashboards, analytical
reports and insights; providing a high-level view of the most important metrics 4 WhatsApp Chatbot - VAANI: The
4 Sales Academy - Platform to help accelerate up-skilling, recognise achievements and Chatbot VANI is a one-stop solution for
craft experiences for employees to discover their true potential our dealers with many user-friendly
4 Rewards and Recognition - Monthly and annual contests running successfully for past features. This 24x7 virtual assistant is
1 year with monetary appreciation and backed by automated digital dashboards and available in English, Hindi and Gujarati
reports for performance enablement 4 Dealer Onboarding Process

Analytics and Data Science

We have taken analytics enablement to the next level for facilitating INSTRUMENT COLLECT PROCESS ORGANISE LEARN

business in decision making and creating new business models. Best-

in-class scientic methods, processes, algorithms and emerging
technologies are getting used to extract insights from structured and Ops
unstructured data. A large volume of data is getting processed to
Sales Self
identify patterns using data science, machine learning and articial Data Service
intelligence techniques. Lake Marketing

This year, we have progressed a lot in using computer vision Products

algorithms to interpret and understand digital images and videos.
Our computer vision applications include object recognition, facial
recognition, imaging analysis, vehicle number plate recognition and
personal protective equipment compliance. Here deep learning CONSISTENT TRUSTED ACCESSIBLE
algorithms are heavily used to solve complex vision tasks

44 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Data Lake and Data Warehouse

A unied analytics platform has been built to collect, organise, process and consume data. Native connectors and CDC technologies are used /
explored for seamless and instantaneous extraction of data. Dataiku, a data science platform is used for organising and processing of data. QLIK,
Tableau and Power BI are used for visualisation and consumption of information. We are aggressively working on governance, transformation and
security of information systems to make information available to concerned decision maker in real time.

Self-serving Analytics
Self-serving Analytics is the outcome which is most appreciated in our organisation. Rather than engaging in development of dashboards
and reports, this new central IT function is helping business teams to groom them on how they can generate their own dashboards and
reports. No-code platform like Dataiku have played a very critical role in democratising usage of analytics across organisation.

Conversational AI
In user interface and experience, we have taken another leap to move from mobile-based user interface to conversational interface in most of our
digital applications. Below is the roadmap that has helped us in the journey of improving user experience.
Newer developments in conversational AI space have been very instrumental in our swifter migration from mobile-based user interface to
conversational interface.
For customers, we have launched WhatsApp based Chatbot “VAANI” to improve experience of our digital technology usage; for which we have
partnered with Yellow AI. For internal employees, conversational AI platforms have been provided by using MS Team.

Trends in User Interface or

User Experience
Chatbot
Conversational Future is
Chatbot is replacing Metaverse
and adding values
to user experience
Mobile and efciency
2012 to 2020
onwards users'
started interacting
Website more on mobile-
Multi-tier System 2004 to 2012 was the based application
Initially user interactions era of Website when
were happening through user interaction was
interface (Client) provided happening with
by application websites

INTEGRATED ANNUAL REPORT 2022-23 45

 Intellectual Capital - Information Protection
and Cybersecurity
Information Security Programme Technology: To safeguard our digital assets, we employ cutting-
As we are going digital in every space of operations and are edge cybersecurity technologies. Our network infrastructure is
increasingly interconnected with the outer world, the signicance of fortied with rewalls, intrusion detection and prevention systems,
robust information security measures is of paramount importance. and advanced threat intelligence tools. We leverage encryption and
As a sensible and trusted company, we recognise the critical multi-factor authentication to secure sensitive data and our
importance of protecting our digital assets, sensitive data and endpoints are protected with next-generation antivirus and end
ensuring the privacy and trust of our stakeholders. point detection, and response solutions. Continuous monitoring
and vulnerability scanning are conducted to identify and remediate
Information security programme at JK Lakshmi Cement consists any potential weaknesses.
of, but not limited to:
Addition to above-mentioned, robust physical security controls are
4 Cyber Security Strategy 4 Data Protection and Privacy implemented to protect physical assets such as servers, data-centres
4 Third-Party Risk Management 4 Incident Response and Remediation and access points through measures like surveillance systems, access
The core focus of these verticals is to mitigate risks for safeguarding controls and security guards.
our operations and protect personal data we are possessing of our
Data Protection and Privacy
stakeholders.
Protecting the privacy of our stakeholders' personal information is of
Cyber Security Strategy utmost importance to us. We adhere to applicable data protection
At JK Lakshmi Cement, we have established a comprehensive laws and regulations, ensuring that data is collected, processed and
cybersecurity strategy that encompasses proactive prevention, stored securely as well as transparently. We have implemented data
continuous monitoring, rapid incident response and continual access controls, encryption protocols and secure data transfer
improvement. Our strategy is built upon three pillars: People, Process mechanisms to safeguard sensitive information.
and Technology.
Third-Party Risk Management
People: We recognise that our employees are the rst line of We recognise that our ecosystem extends beyond our internal
defense against cyber threats. We invest in cybersecurity awareness operations. Engaging with third-party vendors and partners
and training programmes to educate our workforce on best introduces additional cybersecurity risks. We have established
practices, safe online behaviour and the evolving threat landscape. stringent vendor risk management protocols, including due-
Moreover, we conduct ‘Phishing Attack Simulation’ as a secret diligence assessments, contractual agreements and regular audits to
exercise to examine the response of all the employees to this attack, ensure that our partners adhere to highest security standards. By
followed by calculating the employee vulnerability score. closely managing third-party risks, we minimise the potential for
Process: Robust processes and policies are the foundation of our supply chain attacks and data breaches.
cybersecurity framework. We have established a dedicated Incident Response and Remediation
cybersecurity function under designated CISO, who is responsible for
designing, developing, implementing and monitoring security We have a well-dened incident response plan in place to tackle any cyber
controls across our organisation. Regular risk assessments and incident. Our plan includes clear roles and responsibilities, escalation
audits help us identify vulnerabilities and ensure compliance with procedures and communication protocols to enable swift and effective
industry standards and regulations. We have also implemented an response and recovery. Regularly tested business continuity and disaster
incident response plan to facilitate timely and effective responses to recovery plans ensure minimal disruption to our operations in the face of
security incidents. an incident. Also, our digital assets are completely insured against any
cyber compromise with leading insurers of the Country.

46 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Research and Development

4 R&D centres established at Jaykaypuram and Jhajjar Grinding Pozzo Pro+
Units. These R&D centres got recognition / registered on 1st April,
Pozzo Pro+ is a versatile product and is a direct additive during
2015 with DSIR (Ministry of Science and Technology, New Delhi)
concrete production. Actual research product was developed with
4 JKLC collaborated with academia of IIT, New Delhi for the efcient utilisation of waste materials. It is a green product and will
development of new and eco-friendly future products and an be used as performance enhancer of concrete.
MoU was signed on 15th September, 2015. Various compatibility
The patent for Pozzo Pro+ on Cementing Additives and method of
and characterisation studies were carried out at IIT, New Delhi and
manufacturing was led on 31st May, 2017 and awarded on 10th
JKLC R&D Unit. Commercial production of these products
February, 2023 for a term of 20 years by the Patent Ofce,
commenced on 6th October, 2016 at JKLC, Sirohi and Jhajjar
Government of India.
Grinding Units
4 A new performance-enhancing “Additive” for concrete was Partnering with Planet
commercially manufactured at JKLC Jhajjar Unit. This project was True to its reputation as a thought leader, JK Lakshmi Cement added
executed successfully by the joint team of JK Lakshmi Cement and India's rst green LNG truck eet to carry its products. This event's
IIT, New Delhi ag-off ceremony was widely reported in national journals, boosting
JK Lakshmi Cement's brand value and establishing its credentials as a
responsible business. We also strive to showcase the Company's
initiatives in many elds such as CSR, sustainability and
manufacturing on digital media platforms such as social media and
news websites. This has aided us in developing a positive business
image among stakeholders.

Brand Reach through Innovative Methods

We have signicantly raised the salience of our brand by engaging
with new-age digital marketing in addition to traditional avenues of
brand promotion. We use digital media platforms extensively for
product promotion and consumer-driven initiatives. This has
increased brand visibility, accelerated market response, broadened
consumer involvement and secured more customer impact.

INTEGRATED ANNUAL REPORT 2022-23 47

 Manufactured
C apital
Transforming Processes.
Thinking Eco-Alternatives.
Strengthening our operational footprint.
JK Lakshmi Cement is deeply committed to conducting its operations
and logistics in a sustainable manner. Our strategy, driven by cutting-
edge technology and innovation, further solidies our position as
the foremost producer of sustainable cement; contributing to a
self-sufcient nation.
Safety and sustainability are paramount in our operations. We
prioritise the strengthening of processes and protocols to ensure
zero harm to our employees and the environment. Additionally, we
are actively working towards the implementation of a circular
economy by maximising the utilisation of waste materials; aligning
with our goals for sustainable development. These additions are
supported by an integrated supply chain, which further reinforces
our commitment to sustainability across our operations.
Harnessing the potential of innovation, digital transformation,
industry 4.0 and sustainable operations, we are paving the way for a
future where our operations thrive and we continue to deliver eco-
conscious, high-quality products.

JK Lakshmi Cement: Pioneering Value-added Products

JK Lakshmi Cement is a pioneer in introducing Autoclaved Aerated
Concrete (AAC) blocks which are more sustainable alternatives to
traditional clay bricks as they help reduce energy consumption,
improved thermal insulation and utilise industrial waste. Our AAC
blocks have received prestigious certications such as Green Pro and
Green Products & Services Council, highlighting their eco-friendly
nature. Moreover, our blended cement has also been granted the
Green Products & Services Council certication by CII. In addition to
AAC blocks, we provide a wide range of value-added construction
solutions to our customers. These include Ready-mix Concrete
(RMC), Gypsum Plaster (commonly known as Plaster of Paris) and
White Cement based Wall Putty. We have expanded the footprint of
these products in newer geographical areas and also added product
variants in each category to offer superior and smart product options
to our customers.

48 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Our way of being, working, and thriving

Our decarbonisation roadmap focuses on differentiating our offerings through commercial low-carbon products; adding value to customers. We
prioritise products and services based on our climate change opportunities assessment. Our cement portfolio includes products with signicantly
lower clinker content compared to Ordinary Portland Cement (OPC). These products utilise materials like y-ash, slag, limestone and pozzolana,
resulting in reduced carbon footprint, energy consumption and raw material usage in cement manufacturing.
To thrive, we adapt through technological advancements, optimising resource utilisation, developing processess and positively impacting lives.
We combine the strengths of a mature company with the exibility to modernise and meet evolving demands.

Highlights FY 2022-23

Focus Areas FY 2022-23

2 Integrated
Cement Plants
and 4 Grinding
Units across India

Capacity
Optimisation
11.7 MTPA
Cement
Production
Capacity

Capacity
Expansion

Pan-India
presence in 18
States and UTs

Sustainable
Production

80% Cement
Capacity
Utilisation

Responsible
Mining

98% Clinker
Capacity
Utilisation

Cost
35% Share of Optimisation
Renewable
Energy in Total
Power
Requirement

INTEGRATED ANNUAL REPORT 2022-23 49

 Manufactured Capital - Plants’ Performance
Advancing production. Achieving excellence.
At JK Lakshmi Cement, cement manufacturing process involves several stages. First, raw materials like limestone are quarried and crushed to a
limited size for homogenisation. Next, the blended raw materials are ground into a ne powder. The powdered raw material is preheated
using waste heat and then subjected to high temperatures in a rotary kiln for clinkerisation. The resulting clinker is cooled rapidly, ground into
a ne powder and mixed with gypsum. The nal cement is stored, packaged and undergoes quality control measures throughout the process.

Production Capacity
FY Clinker Production Capacity (MMT) Cement Production Capacity (MMT)
FY 18-19 6.60 10.90
FY 19-20 6.70 11.30
FY 20-21 6.70 11.70
FY 21-22 6.87 11.70
FY 22-23 6.87 11.70

Actual Production Data for Last Five Financial Years

FY Actual Clinker Actual Cement Clinker Cap. Cement Cap.
Production Production Utilisation Utilisation
(Million Metric Tons) (Million Metric Tons)

FY 18-19 6.45 8.35 98% 77%

FY 19-20 6.34 7.78 95% 69%
FY 20-21 5.98 8.30 89% 71%
FY 21-22 6.62 8.62 96% 74%
FY 22-23 6.72 9.38 98% 80%

50 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Plants’ Snapshot

Sirohi
The JK Lakshmi Cement Jaykaypuram plant is located in the
southwest part of Rajasthan in the district of Sirohi. It has three
kilns, which share an annual clinker production capacity of 4.8
million tons / annum. The plant employs a dry process for
cement production. Kiln-1 has a rated capacity of 4,500 TPD,
while Kiln-2 and Kiln-3 both have a capacity of 5,000 TPD. All
three kiln lines are equipped with the latest generation IKN
Cooler and Kiln-2 and Kiln-3 utilise the latest generation Pillard
Burner. For raw meal requirements, the plant has three VRM
(Vertical Roller Mills) and one Ball Mill, all equipped with the
latest generation classiers. The plant has a fully digitalised
quality lab and an online PSD analyser for quality control
purposes.

Durg
JK Lakshmi Cement's Durg plant, a modern cement plant,
operates on a dry cement process. Spread over 1,200 acres, the
plant has a production capacity of 1.98 million metric tons per
annum (MMTPA) of clinker and 2.7 MMTPA of cement. It
incorporates advanced technology and equipment, including a
5-stage inline calciner preheater to efciently produce cement
while minimising environmental impact. The plant offers
advantages such as lower energy and water consumption and
the ability to use different types of fuels in the kiln. In terms of
technology, AI is utilised in several areas of cement
manufacturing at the Durg Plant, including process
optimisation with Smarta-MPC, predictive maintenance
through AI-based sensors and energy management using
probus-based energy meters with signals available in the
Distributed Control System (DCS).

INTEGRATED ANNUAL REPORT 2022-23 51

 Manufactured Capital - Plants’ Snapshot

Surat
The ongoing expansion project aims to increase the capacity of
the facility from 1.5 MMTPA to 3.0 MMTPA pending approval
from the SEIAA committee. Additionally, the installation of a
new elevator for additive feeding is expected to be completed
by 31st August, 2023, reducing costs and increasing additive
consumption. A new re hydrant system is also scheduled to be
installed by the same date. The manufacturing process utilises
cement grinding equipment such as VRPM and BALL MILL.
Furthermore, the implementation of IoT / OMS sensors enables
real-time monitoring of critical equipment, while vibration
motors are installed at various locations to prevent the
formation of hard coatings.

Jhajjar
Sr No. Achievement Remark
1 Switch to 90% AFR Saved ` 25 per M3
(Mustered husk) in place of
fossil fuel (coal)
2 Installed LP compressor for Saved ` 2 per MT
y-ash unloading to reduce
power consumption
3 Increase productivity of Feed increased by
cement mill-I by feeding dry 5 TPH for PPC
y-ash at mill outlet grinding
4 Installed rotary screen at AAC Increased average
blocks plant for better plant blocks 15 M3 / day
efciency
5 100 % statutory
compliance at the unit level
6 Achieved target of zero
accident at workplace

52 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Manufactured Capital - Plants’ Snapshot

Cuttack
JK Lakshmi Cement Cuttack Grinding Unit, a cement ball mill
plant, covers 122 acres of green space. Since its
commissioning, 19,300 plantations have been done, resulting
in a clean environment. The Company has achieved several
milestones, including optimising the usage of phosho gypsum
and colouring agents based on market requirements. We have
also maximised natural resources for material drying and
implemented an energy monitoring system for efcient power
management. Other accomplishments include power-saving
measures, such as implementing solenoid valves, proximity
arrangements, automatic lighting controls, acoustic horns and
auto re suppression systems for safety compliance.

Kalol
The Kalol Plant achieved a signicant increase in production,
with a year-on-year (Y-O-Y) growth of 80,352 metric tons (MT),
representing a 16.6% increase; as well as a notable increase in
despatches, with a Y-O-Y growth of 81,713 MT, equivalent to a
16.9% increase. As it achieved lowest specic water
consumption of 0.016 KL per metric ton since its
commissioning, the total plant power was also reduced by
0.92 units per ton. The plant has attained the highest reliability
factor of 99.60% since commissioning.

INTEGRATED ANNUAL REPORT 2022-23 53

 Manufactured Capital - Sustainable Production
JK Lakshmi Cement continually improves operational excellence through various efforts
across parameters such as environmental protection, safety culture and quality
consciousness. We rmly believe that the decisions we make today lay the foundation for
future. The Company is well-aligned with the infrastructure and sustainability demands of
the Country.

Power Generation Capacity

FY TPP WHRS SOLAR WIND - Through
(In MW) (In MW) (In MW) Open Access (In MW)
FY18-19 54 23 10.3 0
FY19-20 74 23 10,3 4
FY20-21 74 23 22.4 4
FY21-22 74 33.4 22.9 4
FY22-23 74 33.4 30.9 4

Specic Electrical Energy Consumption

FY Specic Electrical Energy Consumption Specic Electrical Energy
upto Clinkerisation excluding Crusher Consumption for Cement
(kWh / MT Clinker) Grinding (kWh / MT Cement)
FY18-19 45.61 35.23
FY19-20 46.30 35.76
FY20-21 47.03 36.59
FY21-22 46.26 36.49
FY22-23 45.62 36.87
In FY 2022-23 the cement grinding power increased due to change in product mix

54 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Case Studies
Increasing the use of Carbonecous Shale at Sirohi 18.4
Plant AFR Usage on Sustainable Basis
AFR by wt%
Challenge: The cement sector incurs substantial energy-related
expenses, primarily attributed to fossil fuels and electricity, which
account for a signicant portion (30-40%) of the Industry's variable 12.1
costs. Rising costs of pet coke, a commonly used fuel, necessitated
the exploration of cost-effective alternatives to maintain protability 9
without compromising kiln operations.
Solution: By leveraging carbonaceous shale, a coal byproduct
4.6

till May 2023

predominantly composed of minerals and organic carbon, the
Company identied an opportunity to substitute pet coke and
achieve a dual objective of cost reduction and environmental impact
mitigation. Carbonaceous shale, extracted alongside coal during
production, had been previously considered a troublesome gangue FY 20-21 FY 21-22 FY 22-23 FY 23-24
material, occupying considerable land space and posing
environmental risks. By increasing the consumption of
carbonaceous shale by 9.87%, the Company achieved a substantial
cost advantage of approximately ` 1/1000 Kcal over imported AFR Usage on Sustainable Basis
pet coke. AFR by TSR 5.9
Enhancing Sustainable Fuel Utilisation at Durg Plant
Opportunity: At the Durg unit, we are strongly committed to 4.12
reducing our reliance on fossil fuels by incorporating Alternative
Fuels and Raw Material (AFR) in our operations. The team has been
focused on nding a solution to enhance the usage of AFR. 2.5
Outcome : The journey started with a weight percentage of 4.6%

till May 2023

and a TSR (Thermal Substitution Rate) of 0.9% in FY 2020-21. Last
year, the Durg unit achieved a TSR of 4.0%. The Plant has also 0.9
explored various types of waste such as jute waste, coconut, wooden
chips, ue dust, dolachar, bag lter dust, press mud and spent
carbon. FY 20-21 FY 21-22 FY 22-23 FY 23-24

INTEGRATED ANNUAL REPORT 2022-23 55

 Manufactured Capital - Mining And Logistics
Mining Approach Ever Highest Evacuation: Logistic strategies and proper
on-ground execution by the team ensured that all plants of the
The mine is being developed according to the Mining Plan for the
organisation achieved their every highest dispatch. Role of our
conservation of minerals and sustainable development. Generally,
transporters, who were already motivated by appreciation from
our mining strategy is to operate mines using scientic methods,
JK Lakshmi’s top management, was immense in achieving the
with bench heights of 9 metres and 6 metres, and bench widths of
ever-highest dispatches.
15 - 25 metres, as per DGMS guidelines for the safety of personnel
and machinery. For blasting, we use SME (Site Mix Emulsion), Nonel, Distribution Cost Reduction: In nancial year the whole logistics
Detonating Fuse, Cast Booster, Prime, Gel and Electronic Detonator team worked with the sales team and the plant team to collaborate
to reduce ground vibration, noise and optimise the utilisation of and picked up all the areas where we were doing lower than industry
explosive energy. In the mines, ramps have a gradient of 1:16 for average and brought ourselves at par with industry by doing efcient
transporting limestone from the Pit to the Crusher. Production is operations, including depot utilisation, cost optimisation, waste
carried out by all 5 benches to meet the Plant's requirements with the control, right sourcing and mode mix secondary optimisation. All of
desired quality and quantity. The dispatch of crushed limestone is these initiatives resulted into signicant logistics cost reduction
accomplished through tippers (articulated and static) with a eet of year- on-year.
8 km. to the Stacker, which passes through public roads. On average, Control on Pilferages: Movement of cement across the border
we have the potential to dispatch 9,000+ tons in a day while from low price market to high price market was damaging our brand
ensuring safety. image, destroying our margins and business of our dealers working
in the high price markets. To solve this problem, we came up with the
idea of printing customer code on the Cement Bags so that we can
identify and remove those customers involved into such malpractice
and control it. This helped us reducing the malpractice signicantly.
Logistics Control Tower: To ensure that none of our truck starting
from our factory engage into any kind of malpractice, we had
initiated a logistics control tower last year and ensured that all
culprits are penalised. This also gives us the real time visibility of all
our trips.

Logistics
In cement industry logistics have always played a crucial role;
sometimes for service, sometimes for cost reduction and sometimes
bringing competitive advantage by adopting both. We as an
organisation, continuously act in a manner that we remain one of
the top-class logistics service provider in the Cement Industry. There
are a lot of initiatives that we had taken, which were rst in the
Industry.
Bulk Cement Supply through Rake: We are pioneers in adopting
bulk cement dispatch through rail in cost-effective manner in our
cluster; showcasing outstanding performance in volume, efciency,
quality control and customer satisfaction. Our average dispatch is Key Transporters and JKLC Ofcials at AARAMBH
4-5 rakes per month to the Western Region.
Green Pahal, Behtar Kal: JK Lakshmi Cement became the rst
company in India to add LNG fuelled trucks in its eet for clinker
transportation. This was to ensure that CO2 emission can be curbed
by replacing diesel-based trucks to LNG. These trucks were
manufactured by Blue Energy Motors and transported through
Greenline Logistics. These trucks reduces SOx, NOx by almost 100%
and CO2 by more than 40%. After seeing success of these trucks at JK
Lakshmi Cement, many other companies have also started using
LNG based trucks. This was our “Green pahal, for Behtar kal”.
Transporter Engagement Programme: Transporters are key to
our business success. A forum called "AARAMBH" - Transporters'
Forum, was organised; a rst of it’s kind in the industry in Udaipur to
recognise their efforts. VCMD and President and other senior
ofcials participated in the event to reinforce our care towards our
transporters community.
Flag Off - ‘Green Pahal, Behtar Kal’

56 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Digitisation of Logistic Awards

Operations - Raftaar Sirohi Plant
4 23rd National Awards for Excellence in Energy
Management-CII
4 Rajasthan Best Employer Awards 2022
4 Gold Award in 3rd TIOL National Taxation Award 2022
4 AFR Co-processed 2021 (Platinum)
4 AFR Co-processed Average 2016-2020 (Platinum)
4 5 Star Rating Award for the Year 2021-22 by Indian Bureau
of Mines

Jhajjar Plant
4 Safety Innovation Award – 2022 in the 19 th Safety
Convention
4 Two Quality Circles won Par Excellence Award in NCQC 2022
Company started its digital transformation journey in logistics 4 Two Quality Circles won Gold Award in CCQC 2022
around 5-6 years back. Last year we brought all such initiatives under
4 Indian CSR Awards for Best Women Employment Initiative of
one single umbrella called “Raftaar”. A unied platform, Raftaar,
the year 2022
enables us to manage supply chain more effectively, resulting in
improved efciency, reduced costs and enhanced customers’ service 4 FAME National Award for Outstanding ‘Environment
level. There are total 6 steps under which we had been working at Excellence’ in cement industry
different levels of maturity to digitise the processes. 4 Gold Award for Occupational Health & Safety ( 2022 ) from
Demand forecasting and planning: This is running very Sustainable Development Foundation
smoothly and our system is quite robust; with more than 70% 4 Safety Innovation Award - 2022 by the Institution of
accuracy at minutest level. Engineers (India)
Demand allocation from plant to market - Network Optimiser: 4 National Award for Energy Excellence in Indian Cement
The system has been under use for last 4 years now and has got Industry by NCCBM
matured. Last year itself it garnered value of more than ` 5 Crore over
the previous year. This was denitely because of the system / data Cuttack Plant
backed decision making in monthly S&OP meeting.
4 Two Quality Circles bagged Gold Awards at Bhilai-Durg
Service based real time order allocation model: System is and one team bagged the Distinguish Award in NCQC
under implementation that will ensure that we shall be able to
provide the committed service to our customers from the most
Kalol Plant
optimum source.
4 Grow Care India Environment Award for ‘Environment
Transportation Management System at plants and dumps: Excellence’ in Cement Industry - Kalol
Company implemented Oracle Transport Management (OTM)
System, one of the best TMS system across the World. It is rst in the
Cement Industry. Across all plants, OTM has already been
implemented that is driving performance-based and transparent
Looking into the future
culture among transporters. The system is capable to provide all the Our company is focused on long-term success and expansion
control in the hand of transporter / handling agent on one single through green investments, innovation and digitisation. Our teams
platform starting from the registration of transporter / handling are actively working on decarbonisation initiatives, including carbon
capture and storage pilots, hydrogen utilisation and the production
agent to the payment and reconciliation.
of calcined clays for lower CO2 cement. We support start-ups in
Along with OTM implementation, company is also working to developing next-generation decarbonisation concepts and participate
remove bottlenecks in the system to increase the throughput and in industry platforms and consortiums. Our upcoming projects aim to
enhance the service level for the Customers using digital tools and digitalise the customer experience and optimise the integrated supply
IoT based solution. chain. We are committed to nurturing and empowering our talent to
drive the Group's commercial and technological transformation and
Track and Trace of the trucks moving out of the Plant: address future challenges.
Company is working with almost 80% tracking through GPS / SIM-
based system with capability to identify the back unloading cases Priorities for 2024
based on certain AI / ML based logics. Control tower at HO also helps 4 Generating value through innovation, decarbonising our sales
in acting immediately against the defaulters. This will help in and digitising our operations as quickly as possible
increasing the transparency and serviceability to the Customers. 4 Continue to emphasise the operations' safety quotient.,
particularly in contractor safety systems
Digital acknowledgement and payment to the Transporter:
4 Enhancing efforts on biodiversity and water management,
This is an attempt to cut down a very old inefcient process of
recycling, reducing air emissions and circular economy
collecting POD from the Customers and then bill submission by
transporters. This digital EPOD system will ensure that dispatch to 4 Constantly innovating and improving to do more for our
payment cycle can be reduced signicantly for the Transporters. customers, our people and the communities in which we
operate and the world

INTEGRATED ANNUAL REPORT 2022-23 57

 Human
C apital
Reinforcing Safety. Nurturing Diversity.
Strengthening our talent footprint.
At JK Lakshmi Cement, our people stand at the core of our success,
embodying the ethos of our business. We are dedicated to fostering a
work environment that thrives on care, trust and respect.

Our HR Strategy embodies the ethos of JK Lakshmi Cement:

Where ‘Caring partners the Growth’. We rmly believe that the growth of
our organisation is interwoven with the growth and well-being of our
employees. We treat each individual with utmost respect; creating a
harmonious and inclusive workplace that inspires personal and
professional development.

HR Values:
CARE
4 Compassion 4 Attitude

4 Respect 4 Encouragement

Core Focus Areas:

4 Building People and Organisation Capability

4 Quality of Manpower Resources

4 Talent Management and Improvement in Quality of MCS

4 Performance Management and Goal Setting

4 Employee Engagement, Well-being, Benets, Recognition and Retention

4 Enhancing Company External HR Brand Value

4 Health and Safety

4 Diversity and Inclusion

4 Human Rights

58 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report

Highlights FY 2022-23 Key Numbers FY 2022-23

In FY 2022-23, our primary objective revolved around cultivating a
diverse and highly inspired workforce while providing them with
enhanced well-being and capability building opportunities. We
advanced further in the digitisation of our HR operations towards
more robust processes. 1476 Permanent
Employees and
223 Permanent
Focus Areas FY 2022-23 Workers

A diverse workforce
to execute Zero Man-days
long-term strategy Lost

4.1 Man-days /
Healthcare Person Training

Highest
Building People Engagement
and Organisation Level across JKO
Capability @ 89%

Conferred with
the “Dream
Companies to
Work for -
Manufacturing -
Digitalising HR Cement 2022”
Operations by ET Now and
World HRD
Congress

Enabling
Infrastructure

Social Reform

INTEGRATED ANNUAL REPORT 2022-23 59

 Human Capital - Strategy and Priorities
Unlocking potential. Unleashing productivity.
JK Lakshmi Cement Ltd. follows a well-dened HR framework for the strategy. In the nancial year, the Company’s top human resource
development of its HR strategy, which involves gathering and priorities included:
comprehending external environmental trends, collecting relevant 4 Building human and organisational capabilities to scale up
needs and expectations, and formulating an HR strategy new business
accordingly. This process is carefully deliberated and executed with 4 Restructuring to drive operational synergies in tandem with
the full support and involvement of the Senior Leadership Team to organisational transformation
ensure thoroughness and effectiveness in development of the HR 4 Greater investments in digital initiatives and new skills

Key Human Resource Drivers and Goals (Short / Medium / Long)

Drivers KRA Focus Area / Leading Action Target / KPI

Be Amongst TOP 5 Organisation of Future / • Study, analyse and implement new age • Implementation of E&Y
Companies in Terms of Future Readiness aspects for future readiness of the recommendation in the
EBIDTA / Ton organisation through recommendation agreed timeframe with full
of Ernst & Young HR Study involvement of stakeholders

Raising Performance Best-in-class Productivity • Hired candidate’s performance in • 80% (60% in cluster 1 &
Bar in the Company of MCS cluster 1/2 (over 1 year) 20% in cluster 2)
• Improvement in age prole • Average age (JKLC) targeted
at 38 years

• Attrition rate • Talent attrition ≤ 1%

Voluntary attrition ≤ 8%

• Continue to groom 3rd & 4th internal • Every strategic role to have
talent as successor to leadership two choice of successors of
positions younger age

Maintaining Zero Man-days Loss • Man-days loss due to IR issues • Zero Man-days loss
Harmonious • Tactfully ascertaining changing • HR and CSR partnership to
Industrial Relations aspiration of nearby community prepare effectively for future
requirements.

Raising Human Capital Rapid Skill Building • Development of competitive skill and • Training Man-days ≥ 4 days
Capability in product knowledge amongst per person per year
the Company employees such as critical thinking,
digital skills, soft skills, etc.

• Customised skill development and • 16 hours of dedicated

multi-skilling programmes with focus programme for concerned
on increasing productivity particularly employee per year
on following areas:
a. Customer Orientation • 1 Training per Quarter for all
b. Electrical to Instrumentation Sales and Technical Services
and Vice-Versa Team on basics of cement,
c. Operations to Projects sales and business orientation

• Greater exposure of functional /

technical / managerial skills

• Greater integration of MCS in new

operation zones

Digitisation for an Automation for higher • Project Sudhar: A process excellence • Time saving and cost saving
agile organisation productivity initiative for integration and synergy in
various systems running parallelly like • Automation of statutory
SAP, Sales Force, E-joining Portal, etc. compliances (labour laws)

• Statutory Compliances • Strengthening of following

areas:
• Strengthening of existing Contract a. Masking
Labour Management System b. Central Database
c. Detailed Deployment
Report

60 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Attracting and Nurturing Talent

At JK Lakshmi Cement, hiring individuals with the right ethos is just For an enhanced new joinee experience, we have
as important as hiring those with the right capabilities. To ensure E–joining and robust onboarding / induction of
this, several measures are in place from selection to development. new hires.
For positions up to the level of DGM, candidates undergo rigorous A robust organisational system is in place for fast hiring, seamless
screening including online assessments and panel interviews. GM onboarding and high-performance delivery to stakeholders. After
and above candidates go through an Assessment Centre with successful induction and two performance appraisals, high-
external assessors and interviews, including one with the Senior performing employees are given the opportunity to participate in a
Management. Further, skill and culture tment related tests (paper Mini Assessment Centre. This centre evaluates and develops their
and pencil) are also administered to assess the overall tment and competencies according to the JKO Emerging Leadership
long-term growth prospects of the candidates with the Company. Competency Model. Other development interventions include
individual development plans, training, job rotation, projects, CSR
exposure and themed competitions in teams.

INTEGRATED ANNUAL REPORT 2022-23 61

 Human Capital - Capability Building
In the nancial year, JK Lakshmi Cement remained dedicated to Our Talent Management System aims to identify, develop and
developing talented individuals with the following objectives in motivate skilled employees. It follows the "Grow Your Timber"
mind: philosophy for internal leadership pipeline, aligning talent with
4 Support a culture of innovation future company needs and bridging gaps through strategic
planning and action. Once selected, the identied candidates
4 Talent management
undergo development at centres in partnership with world leaders at
4 Supporting business by leveraging human capital various levels.
4 Training for effective engagement
4 Being brand ambassadors

The decisions about leadership development and performance

improvement are made through a Strategic Business Plan, Goal
Setting Workshop and various Management Committee Meetings.
In order to align development efforts with the business goals, talent
development plans and programmes are aligned with Strategic
Business Plan (SBP) of the Company. The contents of trainings are
designed by internal / external faculty and duly validated by HODs
and HR to enhance or improve the following operational excellence
parameters:
Training Man-days:
4 Production
4.1 man-days / person
4 Sales Volume
4 Net Sales One Training Per Quarter is
Realisation conducted for all Sales and Technical
Services Team on basics of cement,
4 Protability
sales and business orientation
4 Dealer Network
4 Innovation and
Creativity

62 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Building future-ready capabilities for a rapidly rapport with colleagues. More interactive exercises, role plays,
changing world debates and impactful videos were used to help participants
internalise knowledge for effective application at work.
In order to prepare our workforce to navigate the evolving business
landscape with the power of adaptability, agility and innovation, we Connecting with Future Talent
prioritised continuous learning to help them acquire new skills and We focus on fostering connections with educational institutions and
knowledge relevant to their roles. We achieved this by providing providing valuable insights to students through lectures,
contemporary concepts through various platforms; ensuring they presentations, seminars, job fairs and industrial training
are equipped for the future. opportunities. In the nancial year, the Company undertook various
4 Customised Outbound Skill Development Programme initiatives to attract top talent from reputed B-Schools and
organised at Jim Corbett (Uttarakhand) Engineering Colleges.

4 Customer Orientation Programme for sales and technical

services employees under project ‘Mission 60’ Senior Executives' Visits: Delivering presentations at educational
institutions, conferences and workshops on management, technical
4 Basics of cement and technical aspects
elds and industry practices
4 Behavioural training on JKO Leadership Competencies such Industry Tours: Organising plant visits for B-schools and
as executing with agility, partnership building and proactive Engineering Colleges students for practical exposure to real-world
customer support applications and processes
4 Finance for non-nance employees Industrial Trainees: Inviting trainees each year to learn under expert
4 Workmen Development Programme under the theme guidance, gaining hands-on experience
‘Hamari Company, Hamari Shakti’ Thought Leadership: Holding key positions in prestigious
associations such as FICCI, CII, QCFI and ISTD
The programmes are aimed to foster strong bonds and lasting
connections among participants, while enhancing leadership skills, Job Fair Participation: Actively engaging in local job fairs to attract
trust-building, goal-oriented mindset, conict resolution and fresh and experienced talent

Performance Management & Goal Setting

Our Performance Management System is built on four pillars: Performance Planning, Performance Managing, Performance Appraisal and
Performance Development. Following the 80-20 Rule, we prioritise business and individual development by setting joint targets, fostering
inter-departmental collaboration, providing feedback and encouraging self-reection. Regular discussions with superiors and HR facilitators
guide and support both personal and organisational growth. Performance is reviewed semi-annually and annually by superiors and HR facilitators
to support individual and organisational growth.
Employee Engagement
Our company has continually enhanced the span, scope and nature of employee engagement initiatives to align with evolving employee
aspirations. This differentiated approach yields high impacts on performance, productivity and retention levels, as supported by robust data.

Employee Volunteerism

Health and Wellness

Communication with Leaders

Sports and Recreation

Employee
Engagement Work Culture

Family Values and Oneness

Operational Excellence

Safety Initiatives

JK Lakshmi Cement Ltd. stands out with the highest engagement level across JKO, reaching an impressive 89%.
This exceptional gure reects the Company's remarkable employee morale, motivation and loyalty.

INTEGRATED ANNUAL REPORT 2022-23 63

 Human Capital - Safety and Health
Safety is ingrained in our processes at JK Lakshmi Cement, guiding
every action to create a secure work environment with zero risks.
Measures like safety training, awareness building and safety
OH&S Vision
processes ensure a secure work environment; preventing accidents,
injuries and illnesses. The Company also encourages its subsidiaries, To be a recognised leading company
vendors and dealers to implement health and safety measures. promoting healthy and safe workplace
A proactive hazard identication process is in place to conduct for achieving goal of ‘Zero Harm’
SAP-based Hazard Identication and Risk Assessment. Safety
systems are constantly monitored, including HAZOP study and re OH&S Mission
load assessment, with control measures implemented. Regular To develop and implement user-friendly and
safety committee meetings are held to ensure Occupational Health effective OH&S Management System that ts to
and Safety (OHS) and address identied hazards. the organisation and drive Risk Prevention Culture
JK Lakshmi Cement is aligned to various OHS standards:
ISO 9001:2015 for Quality Management System | ISO 14001:2015
for Environment Management System | ISO 50001:2018 for Energy
Management System | ISO 45001:2018 for Occupational Health & The environment policy applies to the Company's operational spaces
Safety Management System and aims to promote a healthy environment on the premises and in
the surrounding area.
Safety is more than just a priority;
it is ingrained in the culture.

Journey of Excellence
in Safety
4 PTW, LOTOTO, 4 BBS Imp 4 HIRA, TBT, BBS 4 CSM System 4 Plant Safety Insp.
Emergency Plan (Apr 2012) Observation and NM (Oct 2015) Module (Apr 2016)
and PPE Standard Module (Apr 2014) 4 Safety Visit APP
4 FE RFID Tagging (Sep 2016)
for Insp. and Maint. 4 Utility Inspection
(Nov 2014) APP (Sep 2016)

(Since inception
2012 2014 2015 2016
of plant)

2017 2018 2019 2020 2021

4 Logistic Safety 4 FE Legal Record 4 LOTOTO Digitisation 4 APP for Permit to 4 Digitisation of
Mgt. System Auto Generation (Feb 2019) Work (Jun 2020) Emergency
(Mar 2017) (Jun 2018) 4 Logistic Safety APP 4 Contractor Safety Management
4 Kiosk for Self 4 Safety Department (April 2019) Visit APP System (Jan 2021)
Assisted Learning KRA Monitoring 4 DSO KRA Monitoring (Dec 2020)
(Aug 2017) System with Daily System (Apr 2019) 4 PPE Compliance
Self Appraisal Monitoring APP
(Jun 2018) 4 Standard for
Scaffolding (Dec 2020)
(Apr 2019)
4 Hydrant System IOT
for 24X7 Monitoring
(Aug 2019)

64 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Making Safety a Way of Life at Operations

In FY 2022-23, multiple safety initiatives were implemented to High-Risk and Height Work:
ensure compliance with safety standards, address potential hazards
and embed a culture of well-being. 4 Use CCTV cameras for remote monitoring

4 Employ Suspended Rope Platforms (SRP System) for inspection

COVID-19 Measures:
and repair work on silos and chimneys
100% of our employees are vaccinated with a double dose for
4 Equip mining equipment with various safety features like
COVID-19.
cameras, proximity sensors and emergency braking systems
Safety Forums and Protocols: 4 Utilise water mist systems and vacuum sweeping machines for
dust suppression
4 Formation of safety and risk forums, including EHS Policy, CFT,
Risk Mitigation Team and Safety Committee
Medical Facilities and Health Awareness:
4 Regular Internal & External Audit and Assessments
4 Dispensary, doctor, ambulance and rst-aid facility inside the
4 Safety Golden Rules: Familiarise employees, visitors and business factory
partners with safety policies, procedures and guidelines
4 Nearby chemist shop for emergency medical needs
4 Distribute "Surksha Margdarshika" safety manual and "Agni
4 Equipped facilities with 300 mA digital X-ray machine with CR,
Suraksha Margdarshika" re safety pocket guide
Audiometry booth, Spirometry equipment, Oxygen
4 Display key SOPs and do's and don'ts prominently concentrators, CBC counters, etc.

4 Disease / Health awareness sessions, webinars and workshops

Fire Safety Preparedness: conducted periodically
4 Fire Hydrant and Smoke Detector System installed 4 Regular health check-ups facilitated for all employees at our own
4 Periodic mock drills conducted for re and other identied Occupational Health Centre as well as network hospitals
emergencies

4 Utilise Kevlar suits for heat and ame protection

4 Pre-recorded audio alarms for alerts during cyclone

unblocking and conveyor start-ups

4 Ensure healthiness of portable re extinguishers with RFID

tagging

Well-being Programmes:
4 Managing stress and holistic health workshops

4 Gym room and fortnightly yoga sessions

4 Acupressure camp held quarterly

4 Club House canteen / cafeteria for employees

Safety Equipment and Training:

4 Workers and drivers trained in adopting various behaviour-based
safety practices

4 Personal Protective Equipment (PPE) provided to employees for

workplace safety

4 Digital Emergency Management System and Installation of CCTV

Cameras

4 Trainings to educate employees on the proper use of tools,

equipment and machinery

4 Labels and signs at hazardous areas and materials with

appropriate signage

4 Staff trained in administering rst aid identied and rst-aid kit

placed at conspicuous locations with marking

INTEGRATED ANNUAL REPORT 2022-23 65

 Human Capital - Diversity and Inclusion
JKLC believes synergising strengths by integrating best talent across Initiatives undertaken:
decades, nationalities, cultures, ethnicities, skills and capabilities
into our human capital. We are equal opportunity player irrespective 4 Established mentorship programme for the female
of culture, gender, race, colour, religion, national origin, physical or executives in our organisation to provide them platform to excel
mental disability, or age and adopts practices to address the same. 4 POSH compliance and ICC to safeguard the interest of women
We actively monitor and improve our Human Rights Policy at the
Company level; promoting diversity and creating an inclusive work 4 Induction of female staff at shop oor
environment that supports the holistic well-being of our diverse
workforce through progressive and inclusive systems, procedures 4 Hiring based on merit
and culture. 4 Recruiting people from nearby villages and small towns, and
educate them by giving various required training for their
FY 2022-23 | Key Performing Indicators
betterment
1.11 % of Female Employees
4 Fresh campus recruitments of GETs / MTs from across India
9.18% of Female Workers providing equitable opportunities
16 hours of dedicated programme for the concerned 4 Equal treatment for contractual / outsourced employees with
employee per year access to organisation facilities (canteen, transport, dispensary,
health check-up, etc.)
A diverse combination of academic and professional talents has also 4 Equal opportunities provided to employees on various occasions
been fostered at the Board level. The Board of Directors comprises such as Energy Conservation Day, World Environment Day,
directors from several industries, including banking and insurance, National Safety Week, Mines Safety Week, etc. to showcase their
corporate / business, audit services, public policy and political unique skills of creativity
history, cement sector, emerging markets and nance, legal services,
technology and IT.

Our actions speak volumes; exemplied by the remarkable Human Rights

leadership of VCMD Smt. Vinita Ji Singhania. An inspiring
gure in the manufacturing industry, she is forging the road Human rights are integral to our strategy. We believe in promoting
untravelled as the rst female president of the Cement the fundamental rights and liberties of employees as outlined in the
Manufacturers Association. Recognised with numerous Indian Constitution, forming the bedrock of our business ethics. We
accolades, she has made an indelible mark through her respect the human rights of our workforce, communities and
exceptional contributions to both the industry and society as a stakeholders, including contractors and suppliers. Our processes are
whole. aligned with recognised frameworks.

We encourage our staff to take maternity and paternity leave to The Company is committed to:
share parental responsibilities. Values such as inclusion and ethical
behaviour, instilled by senior management, create a pleasant, safe, 4 Prohibiting all forms of harmful child labour, forced / trafcked

and inclusive workplace, fostering freedom of expression and labour, discrimination and harassment
independent thinking.
4 POSH: SHAW committee is in force to take care of the Sexual
Harassment at Workplace, which meets quarterly to review and
No incidents of racism or violence were reported in quarterly returns are sent to The District Programme Ofcer
the prior scal year.
4 All employees have right to freedom to practice their religion and
professional endeavours

4 All employees have right to freedom of professional expression

and suggestions

4 All employees must live with social dignity

The national legislation of India governs fundamental human rights

issues, such as child labour, forced labour and sexual harassment.
JKLC ensures compliance with the laws of the land. In addition to the
legislative framework mentioned above, we have internal
committees dedicated to addressing human rights issues related to
child labour, sexual harassment and more.

66 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Awards and Recognition

Conferred with the

'Dream Companies to Recognised with the
Work for - Manufacturing Rajasthan 'Best Employer
- Cement 2022' award by Brand Awards 2022' at
ET Now and World HRD the World HRD Congress
Congress in 2022

Awarded the 13th Exceed Occupational Health & Received Safety Innovation Awards - 2022 from The
Safety Gold AWARD - 2022 (Kalol) Institution of Engineers (India) at two locations (Jhajjar
and Kalol)

Honoured with the Received the Apex India Occupational Health &
Golden Peacock Occupational Health & Safety Safety Award 2022
Award - 2022 instituted by IOD (Durg)

INTEGRATED ANNUAL REPORT 2022-23 67

 Natural
C apitalConserving Resources. Enriching Ecosystem.
Strengthening our green footprint.
Now is the time, more than ever, to take urgent actions to preserve our
natural capital. As one of the leading cement companies in India,
sustainability lies at the very heart of our vision and values. We rmly
believe that ensuring environmentally-friendly growth is the only path to
pursue progress.
Cement production is a resource-intensive and energy-demanding
process. To truly make a difference, JK Lakshmi Cement is prioritising
resource conservation, responsible consumption and resource
rejuvenation throughout our operations. Each year, we relentlessly
advance on the path of environmental stewardship, adopting strategies
that are more resolute than ever before and mitigating increasing impact
on the climate.

Highlights FY 2022-23
4 35% Share of Green Power in Total Power Requirement

4 4X Water Positive

4 Total Water Discharged (in kilolitres): 0

4 GHG Emissions: 554 Net CO2 (Kg / Ton Cement Equivalent)

- Total Scope 1 Emissions: 53,80,820 MTCO2e

- Total Scope 2 Emissions: 4,34,543 MTCO2e
4 Thermal Substitution Rate: 4.11%

4 Total Electricity Consumption (Renewable Energy): 8,39,377 GJ

4 Total Waste Reused and Recycled: 30,827.20 MT

4 68% Blended Cement

68 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Highlights FY 2022-23
We acknowledge the concerns surrounding the
environmental impact of our production processes,
product utilisation and end-of-life product disposal;
particularly as we operate in the challenging ‘hard-to-
abate’ sector. Embracing the principles of circularity, we
have woven environmental sustainability into the very fabric
of our business.

Focus Areas FY 2022-23

Water Management
4 Water Conservation
4 Water and Sanitation
4 Water Recycling
4 Zero Water Discharge
4 Water Efcient Technologies
4 Rainwater Harvesting

Climate Change
4 Reducing our Carbon Footprint
4 Emissions Management
4 Thermal Substitution Rate
4 Increasing Share of Renewable Energy

Energy and Emissions

4 Energy Efciency
4 Environmental Impact Assessments
4 No Net Loss

Circular Economy
4 Waste Management
4 Recycled or Reused Input Material
4 Industrial Waste to Blended Cement
4 Industrial Waste as an Alternative Fuel
4 Municipal Solid Waste as an
Alternative Fuel
4 Concrete Recycling
Biodiversity

INTEGRATED ANNUAL REPORT 2022-23 69

 Natural Capital - Climate Change
Exploring alternatives. Enhancing efciencies.
As part of our climate action strategy, we are shifting towards using JK Lakshmi Cement has signicantly enhanced its utilisation of
alternate fuels and raw materials, installing solar and wind power renewable energy; accounting for 35% of the total power
plants, Waste Heat Recovery Systems (WHRS) and sourcing requirement in FY 2022-23. We are well on track to surpass the 50%
renewable energy through Power Purchase Agreements (PPA). A milestone by the year 2025 with the aim of achieving a renewable
strategic roadmap has been developed to reduce our carbon energy share of 80% or more by the year 2030.
footprints to achieve sustainable growth. Renewable Energy Projects at Premises
Reducing Carbon Footprint To reduce our carbon footprint, all our plants have started using
Our operations' primary sources of Greenhouse Gas Emissions (GHG renewable energy sources by setting up a solar power plant at
emissions) are cement production, raw material, and nished their plant premises. In addition, we have tied up with various
product transportation. Our primary goal is to manufacture offset wind and solar power suppliers to use wind and solar
products with a low-carbon footprint. Our sustainability and power instead of using electricity generated from coal-red
roadmap for climate action clearly dene the targets aligned with power plants.
the prioritised strategic areas to build a low-carbon future and high CDM and Veried Carbon Standard (VCS) Projects
resiliency to climate change. JK Lakshmi Cement has further outlined its commitments and
Increasing Share of Renewable Energy targets concerning the commitments made by the Nation at the
COP26 event in 2021. We are registered with various Clean
Green Power Development Mechanism (CDM) and Voluntary Carbon
Standards (VCS) [now Verra] projects with United Nations
Share of Renewable Energy in Total Installed Framework Convention on Climate Change (UNFCCC); working
Captive Power Capacity (MW) at JK Lakshmi Cement proactively towards mitigating climate change
CDM Projects:
JKLC - Captive Power (149 MW)
4 Replacement of fossil fuel by biomass in Pyro-Processing,
Rajasthan
74
4 15 MW Waste Heat Recovery based power generation,
Rajasthan
36* 4 II6 MW Solar PV-based power generation, Rajasthan
35
Verra (VCS) Projects:
4 Bundled Manufacturing Solar PV-based power plants
4
4 AAC Blocks
WHR Solar Wind TTP
Share of Green Energy in Total Power requirement is
35% at JK Lakshmi Cement
*WHRs Capacity as per Turbine Designed Capacity and 4 MW PPA for
Hybrid Power

70 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

GHG Emissions Performance

YEAR ON YEAR REDUCTION IN GHG EMISSIONS
584
576

558
554

FY 20 FY 21 FY 22 FY 23
Net CO2 (Kg / Ton Cement Equivalent)

Over the years, our company has achieved a notable decrease in

emissions. To further reduce our Scope-I CO2 emissions, we are
focusing on maximising the utilisation of alternative fuels to
reduce our dependency on conventional fuels. Additionally,
procure locally to try to minimise distance between source and
project sites and have initiated the use of LNG trucks in our
logistic operations to reduce our Scope-III CO2 emissions.

Prioritising Internal Carbon Pricing in Strategic

Planning
JKLC is prioritising internal carbon pricing in its long-term strategy
planning to transition to a carbon-neutral future. This helps the
company assess opportunities and risks related to greenhouse gas
regulations and move towards net-zero emissions. Carbon pricing
drives low-carbon investments in energy-efcient technologies and
alternative fuels, lowering JKLC's product carbon footprint. The
Company incorporates carbon pricing in its CAPEX policy to evaluate
climate change related investments. It analyses nancial risks from
rising CO2 costs and assesses each CAPEX project’s contribution to
decarbonisation goals. This ensures that JKLC's investments align
with its commitment to sustainability.

Harnessing Renewable Energy

In our commitment to harness the power of renewable energy, we implemented a 500 KWp solar power plant at Cuttack grinding unit to utilise
renewable energy. This endeavour marks a milestone in switching to clean and sustainable energy sources. Additionally, we commissioned an
8 MWp solar project at Sirohi unit, contributing to 44% of the unit's total electricity requirement from renewable sources. Going ahead, we have
placed an order for a 56 MWp solar project in Open Access Group Captive mode for our Durg unit; aiming to full approximately 80% of our total
electricity needs through renewable energy.

INTEGRATED ANNUAL REPORT 2022-23 71

 Natural Capital - Circular Economy
We are committed to the circular economy, conserving resources,
reducing CO2 emissions and managing waste efciently. In FY 2022-
23, we implemented comprehensive circular economy practices and
programmes throughout all our operations. By restricting the
disposal of waste in landlls, we actively contribute to the
preservation of natural resources and the mitigation of climate
change. Our focus rmly remains on producing environmentally
benecial slag-based cement, reinforcing our commitment as a
sustainable manufacturer.

KEY HIGHLIGHTS:
4 100% of hazardous waste generated from auxiliary processes
(such as used oil, used grease, etc.) is recycled through authorised
recyclers approved by the Central / State Pollution Control Board
4 Solid organic waste is converted into nutrient-rich compost and
vermicompost
4 100% of domestic wastewater generated is treated in Sewage
Treatment Plants (STPs) and the treated water is utilised for
plantation and greenbelt development
4 100% of y-ash, generated as waste from captive power plants, is
utilised in the production of blended cement

72 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Waste Management
We uphold our ambition of zero waste to landlls through active Pollution Control Board (CPCB). Additionally, we employ
minimisation combined with technology investment in recycling and hazardous waste from other industries as alternative fuel and raw
streamlining systems and processes. While there is a constant effort materials (AFR) in our cement manufacturing process.
to reduce waste generated through the adoption of sustainable
practices in operations, the biggest differentiator is the in-campus 4 We have adopted the Vermicompost process in our plant to
treatment of all the organic waste (comprising food waste, garden convert organic waste into nutrient-rich Vermicompost.
waste and STP sludge); following a true net-zero approach. Additionally, we have used 5-year-old lab-tested cemented cubes
Embracing the concept of 'waste to wealth, we wholeheartedly to create walkways. In our efforts to reduce paper waste, we
adopt the ‘Reduce - Reuse - Recycle’ (3Rs) principle since the follow paperless processes through the implementation of the
project’s inception. S/4HANA SAP system. We have also implemented a closed-loop
cement manufacturing process, ensuring that any waste
Waste Generation vs Recycling FY 2022-23 FY 2021-22 generated during manufacturing is utilised within the cement
Total Waste Generated (MT) 33,646.44 66,606.01 manufacturing process.
Total Waste Recovered (MT) 30,827.20 64,581.27

Key initiatives undertaken by the Company in FY

2022-23 to ensure effective Waste Management
4 JK Lakshmi Cement applied for Extended Producers
Responsibility (EPR) registration under the Plastic Waste
Management (PWM) Rules 2016 as amended. We have achieved
the 25% target for FY 2021-22 and we have achieved the 70%
target for FY 2022-23. Our product, cement, is packaged in
Polypropylene (PP) bags that are often reused for construction or
storage purposes. We do not reclaim the same material used in
our product packaging material but the discarded plastic bags are
recycled by authorised waste recyclers. JKLC efciently utilises
waste as Refused Derived Fuels (RDFs) in co-processing cement
kilns. Additionally, we have successfully met our targets with the
assistance of recyclers authorized by CPCB.
4 Our cement manufacturing process does not generate any
e-waste. However, e-waste is produced solely through ofce
operations, and it is sold to registered recyclers approved by
Central Pollution Control Board (CPCB).
4 During cement manufacturing, we utilise only the used oil
generated by operational machinery in our plant. This used oil,
considered hazardous waste, is stored at designated locations
within our plant boundary. We sell this used oil to recyclers
authorised by the State Pollution Control Board (SPCB) or Central

INTEGRATED ANNUAL REPORT 2022-23 73

 Natural Capital - Alternate Raw Materials
Recycled or Re-used Input Material 70% of the raw materials used for cement production, such as
Fly-ash, Gypsum and Slag, are sourced sustainably. This sustainable
At JKLC, we continuously prioritise the substitution of hazardous and
sourcing eliminates the need for an equivalent amount of virgin natural
toxic chemicals in our products with environmentally friendly
resources. The Company has a policy in place for sustainable sourcing
alternatives. Therefore, our products are completely free from such
and utilises a digital vendor registration process. This process requires
harmful substances. Moreover, we have successfully incorporated
vendors to provide information on sustainability aspects such as social
alternative raw materials like y-ash, chemical gypsum and
accountability, ESG (Environmental, Social and Governance) factors,
granulated slag in our cement production processes.
waste management and ISO registrations. Vendors can only proceed
with registration upon successful completion of the survey.
Input Material Recycled or Re-used Input Material to
Total Material Product Category Reclaimed Products and their Packaging
FY 2022-23 FY 2021-22 Material as % of Total Products sold in
respective Category
Chemical Gypsum 4% 4%
/Gypsum Waste Cement and PP Bags 25% (FY 2021-22)
Fly-ash 18% 20% 70% (FY 2022-23)

Red Ochre 1% 2%
Marble Waste 1% 1% Sustainable Sourcing
Iron Slag 2% 2% JK Lakshmi Cement places a strong emphasis on sustainable
Granulated Slag 1% 1% sourcing during its procurement practices through focusing on four
core key areas:

Considering safety and environmental aspects

alongside commercial considerations when
nalising vendors

Striving to source raw materials from optimised

low-lead sources

Prioritising transportation through rail mode

whenever possible, to further minimise its
carbon footprint

Co-processing various industrial wastes,

effectively replacing virgin raw materials and
natural resources to mitigate environmental
hazards and risks

JK Lakshmi Cement prioritises suppliers who reduce their

environmental impacts and compliance with applicable laws and
regulations. We also hold the right to exclude suppliers who do not
exhibit the aforesaid measures.
We realise that sustainable sourcing is
an ongoing process that continually
evolves and are committed to
upholding practices in line with these
evolving standards.

74 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Energy Efciency
Embracing energy efciency is no longer just a necessity, it is both an Performance, Achieve and Trade Mechanism
imminent responsibility and a compelling opportunity. By
Our Sirohi and Durg plants are registered as Designated Consumers
revolutionising traditional processes, exploring renewable energy
(DCs) under the Performance, Achieve and Trade (PAT) Scheme of the
sources and implementing advanced technologies, we are unlocking
Government of India. Durg was registered in PAT Cycle III with a
a new era of sustainable production at our plants and premises. By
baseline year of 2015-16. The assessment year was FY 2019-20 and
doing so, we are minimising our ecological footprint while
all targets were successfully met in Cycle III. In the case of Sirohi,
maximising productivity and protability.
during PAT Cycle I, we were assigned a target to reduce SEC (Specic
Energy conservation remains our utmost priority and FY 2022-23 Energy Consumption) by 4.91%, but we surpassed expectations by
served as a strong afrmation of our commitment to conserving achieving a reduction of 14.77%. As a result, we obtained the
energy; with the implementation of numerous measures across 38,987 Certicates for exceeding the target.
multiple units.
In PAT Cycle II, our target was to reduce SEC by 4.8%, but we only
Major Conservation Measures: achieved a reduction of 2.33%. To compensate for the shortfall, we
utilised banked certicates from PAT Cycle I. Currently, we are in PAT
4 Installing Iteca Seal in the kiln to reduce the ingress of false air
Cycle VII and our goal is to reduce SEC by 3.4%. Our roadmap to
through the kiln inlet seal
achieve this includes increasing the use of renewable energy,
4 Optimising the kiln cooler for improved efciency enhancing the utilisation of Alternative Fuel and Raw Materials (AFR)
4 Upgrading the motors of the cement mill from IE0 (low-efciency and improving plant energy efciency.
with IE3 (high-efciency) motors
4 Replacing low-efciency ID fans with high-efciency fans in the
In FY 2022-23, independent assessment / evaluation
Waste Heat Recovery System (WHR) to enhance performance / assurance were carried out by several external
agencies:
4 Installing a Waste Heat Recovery System to capture and utilise
waste heat generated 4 National Productivity Council (Across JKLC locations)
4 Converting CPH (Condensing Pre-Heater) coils to economizer 4 Bureau Veritas (India) Pvt. Ltd. (For Kalol and Surat Plants)
coils in the WHR system to improve heat recovery 4 DN.VGL (Across locations)
4 Incorporating a Variable Frequency Drive (VFD) in the bag lter 4 TUV NORD CERT GmbH (For Durg and Cuttack Plants)
fan of the packing plant to reduce power consumption
4 Vexil Business Process Services Pvt. Ltd.
4 Optimising the thermal power plant at low load conditions (For Sirohi and Jhajjar Plants)
through fuel mix optimisation and size reduction measures
4 Replacing conventional lights with LED (Light Emitting Diode)
lights for energy efciency
Total GHG avoided by the
Energy Efciency Measures ( MTCO2e) 2,915.2
Total Investments (` Crore) 32.96

Awards and Recognition

JK Lakshmi Cement has been

bestowed with some of the
most prestigious awards at
both national, as well as the
international levels.

NCCBM Second Best Award First Consolation Prize for FAME National Award for
for Energy Excellence in Environment Excellence in Environment Management -
Grinding Units 2022-23 Grinding Units 2022-23 2022- 23

INTEGRATED ANNUAL REPORT 2022-23 75

 Natural Capital - Water Positivity
Water Management Rainwater Harvesting
Effective water management inside and outside the premises of our
Rainwater harvesting is a fundamental approach to sustainable
sites is an important aspect of our environmental performance and
water management. In this regard, the installation of a scientically
sustainability strategy. Our management approach and policy
designed ‘cooling tower’ is a signicant milestone. By harnessing
reinforce our dedication to preserving water resources in and around
natural rainwater for the makeup of the cooling tower, the
our sites, focusing on quantity conservation and maintaining water
consumption of fresh water can be effectively minimised, thereby
quality. We are committed to minimise freshwater withdrawal and
reducing the dependence on fresh water.
consumption by implementing recycling systems and promoting
responsible and efcient water usage and discharge practices. The Zero Liquid Discharge
specic water usage at the Sirohi and Durg sites was 0.16 and 0.07 / The Cement manufacturing process primarily employs a dry method
ton of cement, respectively. requiring direct utilisation of water. Water is utilised for industrial
cooling purposes and no wastewater is generated during the
JK Lakshmi Cement is a water-positive business, cement manufacturing process. JKLC maintains its Zero Liquid
with a water positivity index of 4.0(P), signifying Discharge (ZLD) status by implementing various measures.
that we produce more water than we need. Our Specically, Sewage Treatment Plants (STPs) are strategically placed
goal is to achieve a ve-fold increase in water to handle domestic sewage, while Efuent Treatment Plants (ETPs)
positivity by the year 2025. effectively treat wastewater generated from automobile workshops.
The treated water is subjected to 100% recycling to ensure
compliance with ZLD requirements. This recycled water is
Water Positive Index (JKLC): The Company’s target is to subsequently reused for essential purposes such as dust suppression
become 5 times water positive by FY 25. 5X and greenbelt development.

4X 4X

3X 3X

FY 20 FY 21 FY 22 FY 23 FY 25

76 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Thermal Substitution Rate Biodiversity

Biodiversity is of paramount importance as it underpins the stability
In FY 2022-23, JKLC has achieved and resilience of ecosystems, directly impacting crucial factors such
a TSR% of 4.1% as water supply, food availability, natural resources and
temperature regulation. Moreover, it plays a pivotal role in
sustaining business operations and supply chains; exposing us to
considerable risks. We prioritise biodiversity preservation as an
To enhance the TSR%, we have ordered pre integral part of our business decision-making process;
and co-processing facilities strengthening our commitment to stakeholders, particularly the
local communities.

Key Highlights:
TSR% to be increased to 20% at JKLC
4 NA 16.29-hectare area has been developed as a green belt to
by FY 2029-30
balance emissions and prevent topsoil erosion
4 The Forest Department has been provided with one vehicle to
watch and monitor elephant movements for anti-depredation
We are currently working on enhancing the AFR (Alternative Fuel purposes
and Raw Material) capability at our Sirohi plant. Our goal is to
achieve a Thermal Substitution Rate (TSR) of 20% by FY 2029-30. To 4 A corpus fund of ` 4.06 Crore has been provided to the
kickstart this initiative, we have placed an order for an AFR pre and Forest Department to undertake activities aimed at preventing
co-processing system for one of our kilns in Sirohi. Additionally, we wildlife depredation and related activities
have begun renovating our existing AFR facilities in two other kilns 4 The Company is implementing various Corporate Social
at Sirohi. In the rst phase of the project, we aim to increase our TSR Responsibility (CSR) activities in the villages near the plants,
to 12% and in the second phase, we will further raise it to the providing support to other stakeholders in their development
desired 20% level. initiatives
4 As part of our plantation drive initiative, we distribute free
plants and saplings every year, not only to schools but also to
villages, police stations and communities. Additionally, free
Tree Guards are distributed to protect the plants. We
understand that trees are the perfect solution to mitigate
Greenhouse Gas (GHG) emissions

INTEGRATED ANNUAL REPORT 2022-23 77

 Social and
Relationship
C apital
Cementing Relationships. Connecting Hearts.
Strengthening our trust footprint.
Building trusting relationship with our communities, customers and
suppliers is critical for commercial success. Our Social and
Relationship Capital directs us to priortise the interest of our
stakeholders. At JK Lakshmi Cement, our relationship with
stakeholders is not just a responsibility but also an opportunity. It
allows us to build trust, foster collaboration, drive innovation and
contribute positively to the communities in which we operate and
the country at large. Our stakeholders encompass employees,
partners, customers, suppliers, Government bodies, investors and
local communities, each with unique requirements and
expectations. Effectively addressing these diverse needs is our
responsibility. We continue to spearhead a range of systematic
engagement and intervention initiatives on a continual basis.
While building a circle of trust paves the way for nurturing mutually
benecial relationships; at JK Lakshmi Cement, the greater goal is to
accelerate sustainable growth and build a brighter and equitable
future for all.

78 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Highlights FY 2022-23
During the nancial year, JK Lakshmi Cement made
signicant investments that had a positive impact on
the lives of numerous community beneciaries.
Additionally, the Company achieved notable
milestones by embracing new engagement
platforms and expanding its loyalty programme to The Company was honoured with the
reach a wider range of dealers.
prestigious title of ‘The Economic Times
I c o n i c B r a n d o f t h e Ye a r 2 0 2 2 ’

Focus Areas FY 2022-23

` 939.15 Lakhs of
Investment
Community
Working towards
the overall
well-being of the
Society

Directly impacted
lives of 1,84,281
Customers
Beneciaries
Working
towards
Customer
Satisfaction and
Loyalty
More than 50% of
Beneciaries are
Vulnerable and
Marginalised Supply Chain
Families / Individuals Working towards
a Mutually
Benecial and
Sustainable
Business
Relationship
2nd Cement
Company to
reach 500K
Followers on
Facebook

92% Dealers
covered in
Loyalty
Programme

INTEGRATED ANNUAL REPORT 2022-23 79

 Social and Relationship Capital - Community ` in Lakhs
Working towards the overall Project FY 2022-23 FY 2021-22
well-being of the Society. JK Lakshmi Aarogya 82.81 61.55
JK Lakshmi Vidya 162.08 60.45
At our core, we uphold ethical values and strive for economic
development while enhancing the lives of our workforce, their JK Lakshmi Aajivika and 458.96 49.93
families and the wider community. We believe that the Company's JK Lakshmi Kaushal Prashikshan
long-term viability and ability to produce value are tied to how much JK Lakshmi Swajal and Swacchta 81.69 56.17
it contributes to the life of communities in which it operates. The
JK Lakshmi Gramin Vikas 153.61 182.95
commitment to corporate social responsibility at JK Lakshmi Cement
is exemplied through a comprehensive life cycle approach, COVID Relief Activities in the Neighbourhood - 57.73
encompassing projects that cater to the needs of all age groups. Total 939.15 468.78
From pregnant mothers to infants, children, youth, adults and the
elderly, we have designed and delivered impactful CSR initiatives. These purpose-driven projects were meticulously designed
and implemented to address the specic needs of
Vision: marginalized and vulnerable families. Not only did they make
a tangible difference in people's lives, but they also aligned
To strengthen community relationship and to bring
with and contributed to the broader Sustainable
sustainable change in quality of life of neighbourhood
community through innovative solutions in Health, Development Goals 2030. By undertaking initiatives that
Education, Livelihoods and Rural Development. both address community needs and align with the SDGs, we
are able to create a lasting impact and contribute to the
Thrust Areas: global guidelines and milestones.
4 Health, Water and Sanitation
4 Education Majority of our beneciaries are from vulnerable
and marginalised groups
4 Livelihoods and Skill Development
4 Rural Development S.No. CSR Project No. of Person directly
Since inception, long before the CSR Law came into Beneted / Impacted
existence, we made it a priority and commitment to serve 1. JK Lakshmi Aarogya 59,732
society and improve the quality of life for communities at 2. JK Lakshmi Vidya 10,366
large. The concept of socially responsible business is deeply
3. JK Lakshmi Aajivika and 11,939
ingrained in our corporate DNA from the very beginning.
JK Lakshmi Kaushal Prashikshan
Over the years, we have been at the forefront, pioneering
and delivering numerous CSR projects for those in need 4. JK Lakshmi Swajal and Swacchta 48,335
and vulnerable communities and families. 5. JK Lakshmi Gramin Vikas 53,909
Total Beneciaries 1,84,281
Haryana
Jharli, Jhajjar More than 50% targeting of vulnerable and marginalised
families / individuals in all projects
Rajasthan
Pindwara, Sirohi

Gujarat % of Vulnerable and Marginalised Beneciaries

Kalol(Gandhinagar)

JK Lakshmi JK Lakshmi
67%
Gramin Vikas Aarogya
38%

JK Lakshmi
Gujarat
Surat
Swajal and
Swacchta 54% 66%
Odisha JK Lakshmi
Cuttack Vidhya

Chhattisgarh
Durg
JK Lakshmi
Aajivika 85%

Each year, we directly impact the lives of over 2.25 lakh

individuals across our business operations, bringing
about positive and meaningful changes.

80 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Aarogya Project

Overview:
The JK Lakshmi Aarogya Project is aimed to provide timely, high-
quality and free / low-cost medical services to communities residing
near the plants. The key objectives were to improve overall well-
being, reduce the Infants Mortality Rate (IMR), increase registration
of Antenatal Care (ANC) Mothers in the rst trimester, promote
institutional deliveries, ensure zero maternal mortality, encourage
family planning methods and provide nutritional support to
vulnerable MDR-TB patients.
Interventions:
Naya Savera for improving Mother and Child Health (Sirohi)
Support the holistic development of adolescents in Jaykaypuram and
4 Conducted a total of 772 medical camps, beneting 25,516 Durg through a series of awareness sessions, eye camps,
patients (Sirohi, Durg and Cuttack) haemoglobin tests, dental camps and reproductive tract infection
4 Undertook 7,564 home visits for prenatal care, postnatal care treatments.
and neonatal care; beneting 7,607 individuals (Sirohi) Outcomes:
4 Organised two batches of training sessions on home-based By implementing these interventions, the JK Lakshmi Aarogya Project
natal care and growth monitoring for 60 Aanganwadi Workers successfully addressed various healthcare needs and achieved
(Sirohi) positive outcomes for the community. The initiative directly
Door-to-Door Garbage Management (Durg) impacted thousands of individuals, improving their access to
healthcare services, promoting healthy pregnancies, ensuring safe
Implemented daily door-to-door garbage management, deliveries, enhancing family planning practices and providing critical
beneting more than 10,000 families nutritional support to MDR-TB patients.
Nutritional Support for MDR-TB Patients (Surat, Kalol) Furthermore, the project deepened its bond with inuencers in
4 Provided 552 food kits to the most needy and neglected Multi marketing zones and logistics, conducting a total of 165 medical
Drug Resistant (MDR)-TB patients, following WHO camps that benetted 11,762 patients. Three eye camps were
recommendations organised, provided eye care services to 245 truck drivers and
4 Established a partnership with the District Health Department of two HIV/AIDS awareness programmes were conducted,
Gandhinagar and Surat beneting 169 truck drivers.

INTEGRATED ANNUAL REPORT 2022-23 81

 Social and Relationship Capital - JK Lakshmi Vidya Project
Enhancing Education. Empowering Communities.
JK Lakshmi Cement has made a signicant impact on education with Project Vidya's comprehensive interventions. We universalised schooling,
supported drop-outs, improved quality learning, scholarships, coaching, infrastructure enhancement and career counselling.

Support to Pre-school Education 4 Supported number of Aanganwadi centres for making them child-friendly

Universalising 12 years of schooling and 4 Out-of-school enrolment for 84 tribal children, including 40 girls
supporting drop-outs for completing education 4 Drop-out Support for 84 drop-outs, empowering them to complete their education

Supporting Government Schools 4 Sponsored 5 teachers for improved Teacher-Student ratio beneting 300 students
for quality learning 4 Provided 100 test papers to Std IX and X students, facilitating their exam readiness
4 Distributed 2,035 school bags in 21 Government schools
4 Organised 28 medical camps, offering general, dental, eye and haemoglobin check-ups
for 6,865 students

Improving learning and supporting students 4 Meritorious scholarships to 174 deserving students
for sustaining education 4 Remedial classes for 122 students (50% girls) from Std I-X
4 Entrance Exam coaching for 80 Std XII students, with a focus on JEE, NEET and PNT
entrance exams
4 Coaching to 115 Std V students (50% girls)
4 NMMS Scholarship coaching for students (67% girls) for the NMMS Scholarship exam,
with 15 students passing and receiving a monthly scholarship
4 Educational visits for 47 students from Government high-school
4 Archery training to 25 tribal students from 2 Government schools

Improving school infrastructure and making 4 Beneted 3,003 students through improvements in school infrastructure
Aanganwadi centres child-friendly 4 Renovated 8 Aanganwadi Centers, beneting 542 children
4 Career counselling and guidance for students of Std X-XII
4 Conducted pre-assessment and career counselling sessions by certied counsellors
for 545 students from 4 schools (Std X to XII)
4 Provided personal career counselling with parental
guidance to 467 students (55% girls)

Scholarship support to needy and 4 Total 487 students received scholarship

meritorious students under
JK Lakshmi Vidya Scholarship Programme

Career counselling and guidance programme 4 Total of 545 students from standard X to XII benetted from structured career counselling
classes

82 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Aajivika Project

Empowering Skilling Development and Income Generation.

JK Lakshmi Cement’s Aajivika Project successfully enhanced livelihoods, promoted income generation and empowered individuals and
communities. Through skill development, business support and agricultural interventions, the project positively impacted the lives of numerous
beneciaries, creating a more sustainable and self-reliant society.

From school drop-outs to corporate employees: In partnership with the Head Held High Foundation, a 4-month employability-linked training
programme initiated for local youths in Jaykaypuram and Durg units. 70 youths (35 males and 35
females) successfully completed the training; out of them 46 (65%) secured placements while
6 were supported for self-employment

Promoting small business: Supported 203 individuals, including 43% women, in starting small businesses

Women empowerment: 1,056 women beneted from the training, leading to improved livelihoods, economic
independence and the ability to provide for their families

Youth livelihood training: Total of 273 youths beneted from various skill trainings

Support for agriculture development: 1,178 farmers received multiple forms of support to enhance agricultural productivity and income

Livestock development: Awareness camps, poultry training for 2,633 animal rearers, door-to-door visits for primary
treatment of cattle and camps for deworming, rst-aid and vaccination for 13,823 animals
were conducted

Mobile veterinary unit service: Mobile veterinary unit to provide doorstep veterinary services for livestock care

INTEGRATED ANNUAL REPORT 2022-23 83

 Social and Relationship Capital - JK Lakshmi Swajal
and Swacchta Project
Strengthening Water Infrastructure. Improving Health and Wellness.

Implementation
Water Tanks:
Provided water tanks to number of water scarce villages during
peak summer
Water Hut:
Established in remote areas as a convenient water source
Water Conservation:
Deepened and cleaned existing ponds for improved water storage
Renovation of Water Harvesting Structures:
Restored check-dams and reservoirs for efcient water
management

Impact
Improved Health:
Reduced waterborne diseases, beneting the community
Sustainable Water Management:
Enhanced conservation and utilisation practices
Community Empowerment:
Enabled healthier lifestyles and personal development
Environmental Benets:
Preserved and restored the local ecosystem

JK Lakshmi
Gramin Vikas Project
Strengthening Relationships.
Facilitating Community
Engagement.
Through the effective prioritisation of rural development and active
engagement with stakeholders, the Gramin Vikas Project aims at
improving quality of life through improved rural infrastructure,
connectivity, productive capacity and linkages to the markets.

Implementation
Development of Community Park
Project Muskaan for Elders
Construction of a Community Hall

Impact
Improved the Physical Infrastructure
Fostered a sense of social cohesion within the villages,
resulting in a more dynamic and empowered Rural Society

84 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Caring for people and being a socially responsible citizen are core organisational values
which drive corporate social responsibility at JK Lakshmi Cement Ltd. As an organisation, we strongly believe
that building an inclusive society and contributing to the empowerment of underprivileged communities are
at the core of nation building. Our business priorities co-exist with the commitment to bring transformative
changes in the lives of underprivileged through focused and well-executed CSR programmes in collaboration
with the local community.
Smt. Vinita Singhania
Vice Chairman and Managing Director

I thank JK Lakshmi Cement for In a remarkable journey of empowerment, Nirmala's life underwent a profound
arranging this training. I have transformation through the unwavering support and training provided by JK Lakshmi
witnessed not only the Cement. Earning a substantial income of around `13,000-15,000 per month, Nirmala's
transformation it has brought to accomplishments were recognised on International Women's Day when she received the
my life but also the benets it has prestigious "Women with Wings" award from the Deputy Commissioner of Jhajjar. Her story
bestowed upon others. stands as a shining example of resilience and triumph for one and all.

Annapurna, a resident of nearby community with her family of eight was determined to
Thanks to JK Lakshmi CSR programme,
improve her situation. She enrolled in the Basic Sewing Training program offered by our I can now save money after
project. With initial challenges of limited orders, the CSR team stepped in to assist her. Today, managing household expenses. I am
Annapurna has transformed her life, earning a steady income of ` 8,000-10,000 per month grateful for the nancial support
through her sewing skills. Her success is a testament to the power of skill development. provided to many women like me
when no one helped before.

Jayshri, a 26-year-old divorcee and mother of two, completed a four-month employability

Now I am scared to think how training in January 2023. She now works as an executive with a company, earning a monthly
my life and my kids' lives would
salary of ` 18,675. Her journey from a small village to professional success is an inspiration,
have been without this.
showcasing the power of determination and resilience.
Thanks to JKLC for the support.

18-year-old Ms. Kaali from a village near our plant became a role model by securing a job at a
company after employability training. Despite economic constraints, she realised her dream Today, I am a changed person,
of working for a reputable rm, earning a salary of ` 12,000. more condent and ready to
conquer the world.

Leading Responsibly.
Attracting Accolades
JK Lakshmi Cement received prestigious
awards which not only brought immense
pride to the Company but also reafrmed our
belief in the transformative power of CSR.

Durg Unit: Golden Peacock Award Jharli Unit: Indian CSR Award for
2022 for CSR Excellence in the Best Women Employment Initiative
Cement Sector of the Year (Corporate)

INTEGRATED ANNUAL REPORT 2022-23 85

 Social and Relationship Capital - Customers
Working towards customer satisfaction and loyalty.
Through dedicated efforts focused on performance-driven brand building, the Company has successfully cultivated a signicant brand reputation
among customers, ensuring a lasting impression. Our commitment to sustaining brand recognition in the minds of customers and occupying a
premium position has remained unwavering.

Brand Building Trade-centric Business

JK Lakshmi Cement demonstrated its strong FY 2021-22 2022-23
brand presence as an Associate Sponsor during
the India vs Bangladesh Cricket Series. The Trade % 57% 56%
Company effectively utilised various on-ground Non-trade % 43% 44%
properties, gaining signicant visibility and
exposure. Similarly, the brand enjoyed notable
prominence through perimeter branding during
the India vs England Cricket Series.
Notable campaigns included special days based L
Band campaigns like Union Budget, PM Speech
on Independence Day and Rath Yatra in Odisha.
We also utilised an innovative Channel Flipping
Bug on Tata Sky and Airtel DTH during the T20
World Cup.
The Company’s collaboration with Indian Cricket
continued as we proudly welcomed Indian Cricket
Team Captain, Rohit Sharma, as our brand
ambassador.
‘India Ka Best Performer’ campaign was
developed highlighting the exemplary
performance of both JK Lakshmi and Rohit
Sharma. The campaign featured three lms with
Rohit in the lead role and garnered 2.5 M views
(5.8 M impressions) on YouTube and 2.7 M views
(6 M impressions) on Facebook.

86 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Customer Engagement
JK Lakshmi Cement's digital media presence and outdoor Milestones and recognitions
communication were strategically centered around captivating
4 2 n d highest number of followers on Facebook in the
the target audience through impactful campaigns, engaging
Cement Industry
contests and compelling content. As a result of our dedication to
fostering engagement, the initiatives received well-deserved 4 Awarded as the ‘Brand of the Year 2022’ award
recognition and prestigious awards. 4 Recognised as ‘Economic Times Iconic Brand of the year 2022’
Digital Media Outcomes 4 Recognised as the ‘3rd fastest growing Indian Cement Company
in the large category, at the 6th Indian Cement Review Awards
4 Became the 2nd Cement Company to reach 500K followers on Ceremony in Hyderabad’
Facebook with 33% increase in followers during the year
4 20% increase in followers on LinkedIn with 8th position in
the Industry
4 54% increase in followers on Instagram with 7th position in
the Industry
4 105% increase in followers on Twitter - 3rd position amongst
industry brands
4 Ran a dealership-lead generation campaign through which 16
new dealers were made

Outdoor Communications Initiatives

JK Lakshmi Cement’s brand was reinforced throughout its market
through effective use of various outdoor mediums.
4 450+ nos. of hoardings across highways, inside city and places
of high congregation
4 1.2 Crore+ sq. ft wall painting / shop painting
4 1300+ nos. of impact wall paintings
4 Launched campaign of JK Lakshmi Cement in East UP with
innovative displays: metro pillars, metro track bridge panels,
trafc booths, bus shelters and unipoles with impact display
4 OOH campaigns at airports - Ahmedabad, Raipur and Udaipur
4 Innovative low oor bus campaign in Udaipur

Given the utmost importance of our brand's visibility

in the States where our plant is situated, we
emphasise on extensive outdoor advertising.

INTEGRATED ANNUAL REPORT 2022-23 87

 Social and Relationship Capital - Customers
Technical Service Cell
Our Technical Service Cell comprises of qualied civil engineers who
provide pre and post-sales support. They aim to create brand
awareness and generate demand by conducting site visits,
addressing customer complaints within 24-36 hours and
demonstrating product attributes.
We emphasise durability through services like cover blocks,
shuttering tapes and slab supervision. We also offer Design Mix of
concrete based on local materials. Our efforts have successfully
converted numerous sites from competing brands. Additionally, we
operate Mobile Concrete Labs, providing quality checks and testing
services at construction sites.
Various demand generation activities undertaken during
FY 2022-23 are listed below:
4 2.69 lakh+ site visits
4 12,500+ site guidance activities
4 33,500+ product quality demos
4 16,075+ slab supervisions
4 235+ individual household builder meets with participation of
5,470+ IHB
4 2.09+ lakh tons conversion through 25,216 sites
4 1,880+ road shows

Channel Partners’ Support

Working towards synergistic
and sustainable partnerships.
Fostering strong collaborations was made possible by JK Lakshmi
Cement effective channel partner’s management. through strategic
alliances, exceptional technical support and network management.
Dealers and Depots
FY 2021-22 2022-23
No. of Dealers 4,993 5,189
No. of Depots 241 265

We focus on delighting our channel partners by ensuring that they

remain motivated, engaged and satised by working with us. We
ensure brand visibility around the catchment areas of their shops
through wall and shop painting. Additionally, in-shop branding,
merchandising items, display standees and boards help us maintain
the brand visibility at their shops.
Some of the initiatives undertaken
in FY 2022-23 include:
4 2,500+ dealer boards
4 3,000+ retailer and small consignee boards
4 440+ dealer shop hoardings
4 500+ in-shop branding

88 JK LAKSHMI CEMENT LTD.

 Integrated Report Statutory Report Financial Statement

Loyalty Programme
We have implemented a loyalty programme
called JK Lakshmi SKY specically designed
for our dealers. The primary goals of this
programme is to enhance product sales,
motivate participants, foster engagement
and provide aspirational value. We have
introduced exciting new ways for members
to earn bonus points and incorporated
additional touchpoints.
To enhance the sense of belonging and
exclusivity, we have renamed the dealer
categories as Royal, Elite, Aristocrat and Classic
Clubs for increased dealer participation.
In FY 2022-23, we introduced a prestigious
tier called the "President Club" exclusively
reserved for exceptional achievers. Members
of this club receive special benets, exclusive
gifts and recognition throughout the year.
They were also privileged to attend an
exclusive Meet and Greet programme with
our esteemed brand Ambassador, Rohit
Sharma.
Some notable highlights of
FY 2022-23 are:
4 92% dealers covered in loyalty programme
4 Fullled complete redemption of all
loyalty programme members
4 71% increase in the President’s Club
members
4 Pe r s o n a l i s e d i n n o v a t i v e g i f t s f o r
President Club members
4 Engagement campaigns - ‘Diwali Dil Se’,
‘Hit it’ with Rohit and show your hidden
talent with a participation rate of 20%
members

During the year, we engaged with our

channel partners in various ways to
motivate, incentivise and re-energise them
by conducting various engagements across
our markets viz. live matches, dealer
conferences, achiever’s conclave, festive
celebration, etc.

Inuencers’ Relationship
To strengthen relationships with masons and contractors, we developed a mobile APP-based loyalty programme with over 1 lakh members. The
programme incentivises them to recommend our products and we continually engage with them. One initiative is hosting quizzes on our APP to
enhance their technical knowledge and craftsmanship. We also organise competitions for the children of programme members, providing a
holistic experience. Moreover, we offer accidental insurance to members under a group personal accident policy. We regularly conduct training
sessions and meetings for contractors, enabling skill development and knowledge of construction practices. Health camps are also organised for
masons, contractors and their families as part of our CSR activities. To honour Engineer Dr. M. Visvesvaraya, we celebrated Engineers' Day
throughout September with various events and meetings. We launched the "JK Lakshmi SAMMAN" loyalty programme for architects and
engineers, enrolling over 3,000 professionals. Additionally, knowledge sharing sessions were held for architects and engineers to facilitate valuable
information exchange.

Inuencer engagement activities implemented in FY 2022-23:

4 735+ mason meets 4 1,300+ concrete labour gang meets
4 1,045+ contractor meets 4 44+ architect and engineers’ meetings
4 2,467+ shop counter meets of contractors and masons 4 2,510+ engineers’ engagement

INTEGRATED ANNUAL REPORT 2022-23 89

 Statutory
Reports and
Financial
Statements

90 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

BOARD’S REPORT

Dear Members, During the FY 2022-23, the Cement Industry grew by 9%. The
rd
Your Directors are pleased to present the 83 Annual Report growth was higher in the rst quarter on a lower base of the
along with the Audited Financial Statements of the Company previous year due to pandemic-related issues. Cement
for the Financial Year ended 31st March 2023. growth in the second quarter moderated after the base of the
same quarter in the previous year corrected. In the third
FINANCIAL RESULTS
` in Crore quarter, demand was good after a slowdown in October
2022 due to festivals. In the fourth quarter, demand tapered
Particulars 2022-23 2021-22
off resulting in a low single-digit growth.
Sales & Other Income 6,133.28 5,108.03
In FY 2022-23, your Company achieved a growth of 9% in its
Prot before Interest, 766.50 868.52 cement production and 12% in its cement sales. The
Depreciation & Tax (EBIDTA) combined growth of cement and clinker stood at 7%. The
Prot before Depreciation & 675.00 772.21 Company improved its Cement capacity utilisation to 80% in
Tax (PBDT) FY 2022-23 from 74% in FY 2021-22, while Company
Prot after Tax (PAT) 330.23 417.56 achieved 89% capacity utilisation in the last quarter of FY
2022-23. The Grinding Units at Surat, Kalol, Jharli and
DIVIDEND Cuttack have also shown remarkable resilience in bouncing
Yours Directors are pleased to recommend a Dividend of back to normal. At Udaipur Cement Works Limited,
` 3.75 per Equity Share (75%) on the Equity Share Capital of a subsidiary of the Company, Cement production rose by
` 58.85 Crore for the Financial Year ended 31st March 2023. about 13%.
Total Dividend outgo will be ` 44.13 Crore. The Dividend is The Company has witnessed a sharp rise in fuel prices
subject to the approval of the Members at the ensuing (Petcoke and coal), diesel prices and other input costs which
Annual General Meeting (AGM) and also subject to have signicantly impacted the protability. This has
deduction of tax at source, as may be applicable. The increased our freight cost both for outward materials as well
Dividend pay-out is in accordance with the Dividend as for inputs. As there is considerable overhang of the cement
Distribution Policy of the Company. supplies over the demand, we found it hard to pass on the
increase in inputs costs to the customers. To reduce the
RESERVES AND APPROPRIATIONS
surging cost impact on margins, the Company has been
The amount available for appropriation including Surplus for assiduously working on adopting innovative solutions such as
the Year stood at ` 1,658.70 Crore. The Directors propose this waste heat recovery, solar or renewable energy and
to be appropriated as under: improving its operational efciencies at all levels and
` in Crore
maximizing its realisation per tonne by optimising the
Particulars 2022-23 2021-22 product mix, introduction of new brands and augmenting
Dividend 58.84 44.13 the distribution network and optimising its distribution cost.
The Company could maintain its Net realization despite price
Surplus carried to Balance Sheet 1,599.86 1,328.47
corrections being seen in major markets.
Total 1,658.70 1,372.60
The Company has always followed the philosophy of
PERFORMANCE REVIEW sustainable growth. Share of renewable energy at 47% in
India became the fastest-growing major economy at ~ 7% in our total energy basket is amongst the best in the industry
FY 22-23, despite the three shocks of COVID-19, Russian- and we have set a target of achieving above 87% share in
Ukraine conict and the Central Banks across economies led total energy consumption by FY 2024-25. Similarly, we are
by Federal Reserve responding with synchronised policy rate continuously working to increase the use of Alternative Fuels
hikes to curb ination, leading to appreciation of US Dollar and Raw Materials (AFR); reduce water consumption; and
and the widening of the Current Account Decits in net reduce carbon emissions. It may be noted that through
importing economies. Increased investment in infrastructure various measures taken in this regard, the Company has been
sector provides a critical push to the potential growth of the able to reduce CO2 emissions. In Scope I, we have been able to
economy. The outlay for capital expenditure in FY 2022-23 reduce CO2 emission to 554 kg per ton of cement equivalent
was increased sharply by 35.4% from ` 5.5 Lakh Crore in the in FY 2022-23 from 558 kg per ton of cement equivalent in
previous year (2021-22) to ` 7.5 Lakh Crore, of which FY 2021-22. Similarly in Scope II, we have been able to reduce
approximately 67% has been spent from April to December CO2 emission to 45 kg per ton of cement equivalent in
2022 as per the Economic Survey 2022-23. FY 2022-23 from 64 kg per ton of cement equivalent in
FY 2021-22.

INTEGRATED ANNUAL REPORT 2022-23 91

Our specic water consumption is also one of the lowest in both CRISIL and CARE for its Short-term borrowings.
the industry and we aim to become 5 times water positive by KEY HIGHLIGHTS: FINANCIAL YEAR 2022-23
the FY 2024 -25.
During the Financial Year 2022-23, the Company has
These measures towards sustainable operations shall stand in achieved several new landmarks, few of which are given
good stead in time to come and help the Company to raise hereunder: -
nances at a lower cost for its future growth plans and
1. Turnover crossed ` 6,000 Crore.
ambitions.
- Turnover at ` 6,071 Crore increased by 20% during
The Company registered an EBIDTA of ` 766.50 Crore as
FY 2022-23.
against ` 868.52 Crore in the previous Financial Year, while
the Net Prot is at ` 330.23 Crore as against ` 417.56 Crore in - Sales Volume increased by 7%.
the previous Financial Year. - All Grinding Units achieved record Production and
SUSTAINABILITY Dispatches.
At JK Lakshmi Cement Limited, sustainability has always been 2. Net Debt Free Company
at its core of business strategy and operations. The company - Reduced Borrowings by ` 175 Crore.
has always believed in being “Lean and Green”. This
- Increased Liquidity.
approach has helped us to reduce our specic energy
consumption in our product manufacturing. On the other - Improved Leveraging and Other Financial Ratios.
hand, this has helped us to reach renewable energy usage - Reduction in Interest Costs.
percentage to around 47%. The Company has consistently
3. Reduction in Interest Cost by 5 %
strived to reduce dependence on conventional fuel for heat
requirement in our processes and this has helped us in - Interest Cost reduced from ` 96 Crore to ` 92 Crore.
achieving the Thermal Substitution Rate (TSR) level to 4.11%. - Prepayment of Loans.
In order to give impetus to our Sustainability agenda, the
- Efcient Working Capital Management.
Company has taken a signicant step in promoting LNG
trucks in our logistic operations which has helped to reduce - Reduced Borrowings for Working Capital.
CO2 emission by 51.96 MT in just ve months, which is a 4. Green Initiatives
benchmark step for greener future and sustainable - Commissioned a 7 MW Solar Power Plant at Sirohi,
development. Your Company is also approximately 4 times Rajasthan.
water positive.
- Another 7 MW Solar Power Plant planned in the
To further push our sustainability agenda, the Company has coming year.
voluntarily taken the memberships of various global agencies
- Commissioned the rst of its kind a Floating Solar
like UNGC, SBTi, RE100, EP100 and GCCA-India. These
Power Plant of 1 MW at UCWL.
agencies drive global sustainability agenda and help
companies to achieve their sustainable goals. 5. Supply Chain Management
As a responsible entity, the Company has always taken steps - Implemented OTM system for Efcient Logistics
for community developments through its various CSR Management.
initiatives and the social performance improvement covers its - First Cement Company to deploy LNG trucks to
entire value chain which has been the commitment of the reduce CO2 emissions.
Company.
- Deployed Bulk Containers for dispatches.
NET DEBT FREE COMPANY
6. Increased ESG Culture
The Company has continuously been focussing for last several
- Reduction of CO2 emission across Plants.
years on reducing its debt and has now become a Net Debt
Free Company as of 31st March 2023. The Treasury Corpus of - Share of Renewable Energy increased to 47%
the Company as of 31st March 2023, now exceed its Total (consolidated).
Borrowings as on that date. - Increased use of AFR.
CREDIT RATING - Reduced Water consumption.
Efcient Debt Management and improvement in various 7. Brand Building
Operating parameters has enabled the Company to maintain
- Increased share of premium products.
its Long-term Credit Rating from CRISIL and CARE at AA
(Double A) with a Stable Outlook. The Company continues to - Leveraged Digital media and increased Customer
enjoy the highest possible rating of A1+ (A One Plus) from connectivity across segments.

92 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

- Increased Product positioning and Market share in components of Internal Financial Controls as stated in the
key markets. Guidance Note on the Audit of Internal Financial Controls
8. Digitalization over Financial Reporting issued by the Institute of Chartered
Accountants of India. Based on such assessments carried out
- Rapid digitalization across functions.
by the Management, no reportable material weaknesses in
- Optimization of Systems and Processes. the adequacy in the System of Operations of Internal Financial
- Plant Efciency improvement. Controls were observed during the year.

- Efcient Capital Working Management. CORPORATE SOCIAL RESPONSIBILITY

9. Focus on Value Added Products (VAP) Your Company is a socially responsible corporate citizen
which truly believes that business priorities co-exist with
- VAP recorded 28% growth in Turnover to ` 478
commitment for inclusive development. Since its inception
Crore.
and well before the Corporate Social Responsibility (CSR) law
- Increased Market Share. come into existence, serving the Society towards improving
- Focus of Market Penetration. the quality of life of the communities at large has been a
priority and commitment for the Company. The concept of
AWARDS AND RECOGNITIONS
socially responsible business is deeply ingrained in our
Your Company has been bestowed with prestigious awards corporate DNA right from the inception and we have been
on both national as well as international level. Some of the pioneering and delivering multiple need based and high
accolades and awards received during the year are as follows: impact CSR projects for needy and vulnerable communities &
• “Brand of the year 2022” Award. families living around our business operations. The
Company’s CSR vision clearly states to strengthen community
• Rajasthan - "Best Employer Brand Awards 2022”,
relationship and to bring sustainable change in the quality of
awarded at World HRD Congress.
life of neighbourhood community through innovative
• 3rd Fastest Growing Cement Company in the Large solutions in Education, Health, Water & Sanitation, Skills
Category at the 6th Indian Cement Review Awards Development, Livelihood Promotion and Rural Development.
2023.
CSR is the continuing commitment by the Company to
• “Golden Peacock Business Excellence Award for the year behave ethically and contribute to economic development,
2023”. while improving the quality of life of the work force, their
PROGRESS OF THE PROJECTS AND EXPANSIONS families as well as of the local community and society at large.
Udaipur Cement Works Ltd; the Expansion Project is The Company has adopted life cycle approach and had
progressing satisfactorily and is expected to be commissioned designed & delivered various CSR projects for all age groups –
in 2024. pregnant mothers, infants, children, youth, adults and old
age people. Through its various need based and high impact
INTERNAL FINANCIAL CONTROLS
CSR projects, the Company has been able to directly impact
The Company has in place a strong Internal Financial Control and bring positive changes in the lives of more than 1.80 lakh
System, Policies and Procedures which ensures accuracy and people spread across its business operations.
completeness of Accounting Records and helps also in timely
During the reporting period, the Company designed and
preparation of the reliable Financial Statements. These
implemented community need based CSR projects and
Internal Financial Control Systems are designed for
targeted marginalised & vulnerable families with an aim to
safeguarding the assets of the Company and for the
improve their lives through projects like JK Lakshmi Aarogya,
prevention and detection of errors & frauds commensurate
Vidya, Aajivika, Swajal & Swachhta, Gramin Vikas, Kaushal
with the size, nature and complexities of the Operations of
Prashikshan, etc. These projects have been aligned and
the Company. These Policies and Procedures were found by
contributed to various Sustainable Development Goals 2030.
the Statutory Auditors of the Company to be adequate for
Some of the key initiatives during the reporting period were
smooth, orderly & efcient conduct of the business of the
launch of JK Lakshmi Vidya Scholarship on “Vidyasaarathi
Company.
Portal” in partnership with NSDL & TISS, organising career
The Company has in place specic Standard Operating counselling program for the students of standard X to XII in
Practices (SOPs) for its various functions. These SOPs are Government Senior Secondary Schools, job linked skill
periodically reviewed by the External and Internal Auditors of development training for school & college dropouts, launch
the Company and exceptions are reported for corrective of mobile veterinary unit for livestock improvement and
actions. setting up skill training centre in partnership with District
The Internal Financial Control Systems are regularly reviewed Child Welfare Ofce, Jhajjar, Haryana among others. To give
to ensure their effectiveness, taking into account the essential big impetus to skilling & livelihoods, the Company started

INTEGRATED ANNUAL REPORT 2022-23 93

setting up of skill development centre at its plant in Pindwara, Company’s plants. Company’s CSR initiatives have been able
Sirohi, Rajasthan. to bring qualitative changes in the lives of the communities
The Company demonstrated its commitment towards CSR around its plant locations. One of the key impacts has been
and implemented several “Ongoing Projects” in thrust areas empowerment of women due to improvement in their
of Health, Water & Sanitation, Education, Skilling & income resulting into their higher familial and societal status.
Livelihood and Rural development. Under Project Aarogya, Your Company is also promoting employee engagement in
medical camps were organized, reproductive and child health various CSR projects to create socially responsible behaviour
services were delivered at the doorsteps to reduce maternal among its employees. Number of employees were provided
and infant’s mortality among tribal communities, while at appreciation certicates for their contribution to CSR
few locations, food kits were provided to Multi-Drug activities around various plant locations.
Resistant -TB patients from poor families to improve their The Company received number of accolades and awards for
nutritional status for speedy recovery. Company undertook its meaningful and life-changing CSR initiatives during the
activities for holistic development of adolescents under year. Company’s Durg unit received “Golden Peacock Award
Project Vidya (Education) and also organized bridge and 2022 for CSR Excellence” in Cement Sector and Jharli unit
remedial classes for out-of-school and school drop-out received “Indian CSR Award for Best Women Employment
children for their mainstreaming into government schools, Initiative of the Year (Corporate)”.
supported government schools for improvement in physical
The Company has requisite Corporate Social Responsibility
& classroom infrastructure and facilities, provided various
Policy in accordance with the provisions of the Companies
types of support to students and continued our support to
Act, 2013 (Act) and Rules made thereunder, as amended.
school’s working for Special children and their families.
The CSR Policy along with brief description of CSR projects
Students were provided scholarships to support their school,
is disclosed on the website of the Company at
college and technical education like ITI, Polytechnic, Nursing
www.jklakshmicement.com.
and B. Ed. Under Project Aajivika, the Company undertook
multiple on-farm and off-farm activities including small The Annual Report on the CSR activities undertaken by the
enterprise development, skill trainings and vocational Company during the Financial Year under review, in the
trainings to support youth and families to ensure sustainable prescribed format, is annexed to this Report as Annexure ‘A’.
income. The Company has undertaken several activities for RELATED PARTY TRANSACTIONS
empowering women especially tribal women in the areas of
During the Financial Year ended 31st March 2023, all the
education and for income generation through providing
contracts or arrangements or transactions entered into by the
them trainings on various trades & skills like Madhubani
Company with the Related Parties were in the ordinary course
painting, food processing, computer, stitching, beautician,
of business and on an arm’s length basis and were in
etc. Under JK Lakshmi Gramin Vikas Project, the Company
compliance with the applicable provisions of the Act and the
supported infrastructure development in the nearby
SEBI (Listing Obligations and Disclosure Requirements)
communities. Under JK Lakshmi Swajal & Swachhta project,
Regulations, 2015 (Listing Regulations).
the Company’s initiatives include setting up water facilities
for domestic use, repair of anicut for watershed Form AOC-2 containing the details of the material Related
development, pond deepening, setting up of water huts, Party Transactions entered into during the Financial Year
provision of water tanks and recharging of water bodies, 2022-23 as per the Related Party Transactions Policy (RPT
fogging, door to door garbage management among others. Policy) is attached as Annexure ‘B’ to this Report and forms
These initiatives in the CSR beneted number of part of it. The RPT Policy is available on the website of the
disadvantaged, vulnerable and economically marginalized Company.
communities like Scheduled Castes and Scheduled Tribes, PARTICULARS OF LOANS, GUARANTEES OR INVESTMENT
Below Poverty Line families, small and marginal farmers,
The particulars of loans given, guarantees or securities
landless groups, women-headed families, special children,
provided, and investments made as required under Section
person suffering with chronic diseases like MDR-TB and youth
186 of the Act are given in the Notes to Financial Statements.
with no skills for either employability or resources for small
business. The Company also strategically endeavoured CONSERVATION OF ENERGY, ETC.
towards facilitating “last-mile-connectivity” for the poor to The details as required under Section 134(3)(m) of the Act
access various State and Central Govt. Schemes aimed at read with the Companies (Accounts) Rules, 2014 are annexed
poverty alleviation. to this Report as Annexure ‘C’ and forms part of it.
One of the breakthrough achievements during the reporting AUDITORS & THEIR REPORTS
period has been increased coverage and outreach which has
(a) Statutory Auditors
impacted thousands of families in the villages around the
In accordance with the provisions of the Act and Rules

94 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

made there under, M/s S.S. Kothari Mehta & Company, along with relevant documents and separate audited
Chartered Accountants, were re-appointed as Statutory accounts in respect of subsidiaries are available on the
Auditors of the Company for their second term of ve website of the Company.
consecutive years from the conclusion of the 80th AGM During the Financial Year under review, no Company has
held on 28th August 2020 until the conclusion of the 85th become or ceased to be your Company’s subsidiary or joint
AGM to be held in the year 2025. venture or associate.
The observations of the Auditors in their Report on DEPOSITS
Accounts and the Financial Statements, read with the
Pursuant to the approval of Members by means of a Special
relevant notes are self-explanatory. The Auditors’ Report
Resolution passed at the AGM held on 4th September 2014,
does not contain any qualication, reservation, adverse
the Company has continued to accept deposits from the
remark or disclaimer. Further, no fraud has been
public, in accordance with the provisions of the Act and the
reported by the Auditors to the Audit Committee or the
Rules made thereunder.
Board.
The particulars in respect of the deposits covered under
(b) Secretarial Auditor
Chapter V of the said Act, for the Financial Year ended
Pursuant to the provisions of Section 204 of the Act, the 31st March 2023 are as under:-
Board of Directors appointed Shri Namo Narain
(a) Accepted during the year: ` 20.94 Crore;
Agarwal, Company Secretary in Practice, as Secretarial
Auditor to carry out Secretarial Audit of the Company (b) Remained unclaimed as at the end of the year: ` 0.42
for the Financial Year 2022-23. Crore;
The Report given by him for the said Financial Year in the (c) Default in repayment of deposits or payment of interest
prescribed format is annexed to this Report as Annexure thereon at the beginning of the year and at the end of
‘D’. The Secretarial Audit Report does not contain any the year: Nil;
qualication, reservation, adverse remark or disclaimer. (d) Details of deposits which are not in compliance with the
(c) Cost Auditors requirements of Chapter V of the said Act: Nil.
M/s R.J. Goel & Co., Cost Accountants, conducted the PARTICULARS OF REMUNERATION
Audit of cost records of the Company for the Financial Disclosure of the ratio of the remuneration of each Director to
Year 2021-22 and as required, Cost Audit Report was the median employee’s remuneration and other requisite
duly led with the Ministry of Corporate Affairs, details pursuant to Section 197(12) of the Act read with Rule
Government of India. The Company has duly 5 (1) of the Companies (Appointment and Remuneration of
maintained requisite Cost Accounts and Records Managerial Personnel) Rules, 2014, is annexed to this Report
pursuant to Section 148(1) of the Act. as Annexure ‘E’.Further, particulars of employees pursuant to
The Audit of the cost records of the Company for the Rule 5(2) & (3) of the above Rules, form part of this Report.
Financial Year 2022-23 is being conducted by the said However, in terms of provisions of Section 136 of the Act, the
rm and the Report will be duly led. Annual Report including Accounts for the Financial Year
2022-23, is being sent to all the Members of the Company
CONSOLIDATED FINANCIAL STATEMENTS
and others entitled there to, excluding the said Particulars of
The consolidated nancial statements of your Company for employees. The said information is available for inspection at
the Financial Year 2022-23 have been prepared in accordance the Registered Ofce of the Company during business hours
with the Act read with the Rules made thereunder and on working days of the Company upto the ensuing AGM. Any
applicable Indian Accounting Standards. The audited Member interested in obtaining such particulars may write to
consolidated nancial statements together with Auditors’ the Company Secretary.
Report form part of the Annual Report.
ANNUAL RETURN
In compliance with Section 129(3) of the Act and Rule 8 of the
The Annual Return as required under Section 92 and
Companies (Accounts) Rules, 2014, a report on the
Section 134 of the Act read with Rules made thereunder
performance and nancial position of each of the subsidiaries
is available on the website of the Company at
and associate included in the consolidated nancial
https://www.jklakshmicement.com/annual-return/
statements is presented in a separate section in the Annual
Report. Please refer AOC-1 annexed to the nancial DIRECTORS AND KEY MANAGERIAL PERSONNEL
statements in the Annual Report. Pursuant to Section 152 of the Act, Shri Bharat Hari Singhania
Pursuant to the provisions of Section 136 of the Act, the (DIN: 00041156) retires by rotation at the ensuing AGM and
nancial statements, the consolidated nancial statements being eligible has offered himself for re-appointment. The
Board recommends his re-appointment.

INTEGRATED ANNUAL REPORT 2022-23 95

The Members at the AGM held on 17th August 2022 had Business Responsibility and Sustainability Report of the
approved appointment of Shri Sadhu Ram Bansal (DIN: Company for the Financial Year 2022-23 in the prescribed
06471984) as an Independent Director for a term of three format, giving an overview of the initiatives taken by the
consecutive years w.e.f. 1st July 2022 and Shri Arun Kumar Company for Environmental, Social and Governance
Shukla (DIN: 09604989) as President & Director of the perspective and disclosures regarding the performance of the
Company for a term of three years w.e.f. 1st August 2022 and Company against nine principles of the ‘National Guidelines
he was appointed by the Board of Directors as Key Managerial on Responsible Business Conduct’, is given in a separate
Person from the said date. Further, during the year under section of the Annual Report and forms a part of it.
review, Dr. K.N. Memani (DIN: 00020696), Independent C O R P O R AT E G O V E R N A N C E & M A N A G E M E N T
Director, resigned from the Board of Directors of the DISCUSSION AND ANALYSIS
Company w.e.f. 26th April 2022, due to personal reason
Your Company reafrms its commitment to the highest
including health; Dr. Shailendra Chouksey (DIN: 00040282)
standards of corporate governance practices. Pursuant to the
and Shri Sushil Kumar Wali (DIN: 00044890) ceased to be
Listing Regulations, Management Discussion and Analysis
Directors of the Company w.e.f. 1st August 2022 after expiry
and Corporate Governance Report along with Statutory
of their term of ofce as Whole-time Directors on 31st July
Auditors’ Certicate regarding compliance of conditions of
2022 and Shri B.V. Bhargava (DIN : 00001823) ceased to be a
Corporate Governance are made part of this Report as
Director of the Company w.e.f. 31st August 2022 on
Annexure ‘F’ & 'G’ respectively.
completion of his second term as an Independent Director on
30th August 2022. The Corporate Governance Report which forms part of this
Report, inter alia, covers the following:
The Board has also taken on record the declarations and
conrmations received from all the Independent Directors of (a) Particulars of the four Board Meetings held during the
the Company regarding their independence pursuant to Financial Year under review;
Section 149 of the Act and Regulation 16 of the Listing (b) Salient features of the Nomination and Remuneration
Regulations. Policy;
Shri Amit Chaurasia, appointed as the Company Secretary, a (c) The manner in which formal annual evaluation of the
whole time Key Managerial Person, of the Company w.e.f. performance of the Board of Directors, of its Committees
1st September 2022, in place of Shri Brijesh Kumar Daga, and of individual Directors has been made;
Sr. Vice President & Secretary of the Company who ceased to
(d) The details with respect to composition of Audit
be the Company Secretary with effect from the said date.
Committee and establishment of Vigil Mechanism;
There were no other changes in the Directors/Key Managerial
(e) Details regarding Risk Management Committee;
Personnel of the Company during the year under review.
(f) Dividend Distribution Policy;
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE
REGULATORS OR COURTS OR TRIBUNALS (g) Disclosures in relation to the Sexual Harassment of
Women at Workplace (Prevention, Prohibition and
During the Financial Year under review, there were no
Redressal) Act, 2013.
signicant and material orders passed by the Regulators or
Courts or Tribunals which could impact the going concern COMPLIANCE OF SECRETARIAL STANDARDS
status of the Company and its future operations. Further, no Based on the Secretarial Audit Report of the Secretarial
application was made or no proceeding was pending as at Auditor, the Company has duly complied with the applicable
the end of the year under the Insolvency and Bankruptcy Secretarial Standards on Meetings of Board of Directors and
Code, 2016. General Meetings issued by the Institute of Company
MATERIAL CHANGES AND COMMITMENTS Secretaries of India.

There have been no material changes and commitments DIRECTORS’ RESPONSIBILITY STATEMENT
affecting the nancial position of the Company which have As required under Section 134(3)(c) of the Act, your Directors
occurred between the end of the nancial year of the state that:-
Company and the date of this report.
(a) In the preparation of the Annual Accounts, the
CHANGE IN THE NATURE OF BUSINESS applicable accounting standards have been followed
During the Financial Year under review, there was no change along with proper explanation relating to material
in the nature of business of the Company. departures;

BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT (b) such accounting policies have been selected and applied
consistently and judgments and estimates made are
Pursuant to Regulation 34(2)(f) of the Listing Regulations, the
reasonable and prudent so as to give a true and fair view

96 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

of the state of affairs of the Company at the end of the that such systems are adequate and operating
Financial Year and of the prot and loss of the Company effectively.
for that period; ACKNOWLEDGEMENTS
(c) Proper and sufcient care have been taken for the Your Directors wish to place on record and acknowledge their
maintenance of adequate accounting records in appreciation for the continued support and valuable co-
accordance with the provisions of the said Act for operation received from the Financial Institutions, Banks,
safeguarding the assets of the Company and for Government Authorities, Dealers, Suppliers, Business
preventing and detecting fraud and other irregularities; Associates and Company’s valued Customers and the
(d) The annual accounts have been prepared on a going esteemed Members for the faith they continue to repose in
concern basis; the Company.
(e) The internal nancial controls to be followed by the Your Directors also record their appreciation for the
Company have been laid down and that such internal dedication and hard work put in by “Team-JK Lakshmi”,
nancial controls are adequate and were operating which has enabled the Company to continue its growth
effectively; and journey in these challenging times.
(f) The proper systems to ensure compliance with the
provisions of all applicable laws have been devised and

On behalf of the Board of Directors

Place: New Delhi Bharat Hari Singhania

Date: 19th May 2023 Chairman

INTEGRATED ANNUAL REPORT 2022-23 97

ANNEXURE 'A' TO BOARD'S REPORT

ANNUAL REPORT ON THE CSR ACTIVITIES UNDERTAKEN BY THE COMPANY DURING THE FINANCIAL YEAR ENDED
31st MARCH 2023.
1. Brief outline on CSR Policy of the Company: considering the recommendations of the CSR
The philosophy of giving back to the society was laid Committee. The CSR Policy also lays down the guiding
down by the founding fathers of JK Group over a principles for selection, implementation, and
century ago and the Group takes this as a moral monitoring of activities as well as formulation of the
responsibility to build a better society through Annual Action Plan to carry out CSR Projects by the
contributing towards community services as well as Company. During the year, the Policy was amended to
working towards uplifting and empowering the align with the changes notied by Ministry of Corporate
disadvantaged sections of the society. The Mission Affairs vide its Notication dated 20th September 2022
statement of the Company unequivocally state to be a with respect to implementation of CSR activities.
“socially responsible corporate citizen”. For JK Lakshmi The CSR Policy of the Company strongly reects the
Cement Ltd., the business priorities coexist with the commitment towards inclusive growth and
commitment for extending the help to the poor and the development. The vision of the Company’s CSR is “to
needy. This realization had given our organization a strengthen community relationship and to bring
great opportunity to systematically develop and adopt sustainable change in quality of life of neighborhood
an effective CSR approach to implement multiple community through innovative solutions in Education,
interventions in the surrounding area of our business Health, Livelihoods and Community Development”.
and plant locations. The major CSR thrust areas of the Company are Health;
The Corporate Social Responsibility Policy (the Policy or Water & Sanitation; Education; Skill development and
the CSR Policy) has been framed in accordance with Livelihoods; Environment sustainability and Rural
Section 135 of the Companies Act, 2013 (the Act) and development.
the Companies (Corporate Social Responsibility Policy) The Company’s CSR Policy clearly delineates on
Rules, 2014 (the Rules) as amended from time to time. formulation and implementation of CSR projects and
The Policy shall apply to all CSR projects and activities to activities; its approval by the Board; monitoring;
be undertaken by the Company and contains the documentation; impact assessment and disclosures.
approach and direction given by the Board of Directors,

2. Composition of CSR Committee:

Sl. Name of Director Designation/ Number of meetings Number of meetings
No. Nature of Directorship of CSR Committee of CSR Committee
held during the year attended during the year
1 Smt. Vinita Singhania Chairperson/Executive Director 2 2
2 Shri Arun Kumar Shukla^ Member/ Executive Director 1 -
3 Amb. Bhaswati Mukherjee Member/ Independent Director 2 2
4 Dr. Shailendra Chouksey* Member/Executive Director 1 1
5 Shri Sushil Kumar Wali* Member/ Executive Director 1 1
st
^ Shri Arun Kumar Shukla,appointed as Member of the Committee w.e.f. 1 August 2022.
* Dr. Shailendra Chouksey and Shri Sushil Kumar Wali, ceased to be Members of the Committee, consequent to cessation of
their directorships of the Company w.e.f. 1st August 2022, on completion of their existing terms as Whole-time Directors on
31st July 2022.

3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the Board are
disclosed on the website of the company:
Composition of CSR Committee: https://www.jklakshmicement.com/listing-composition-of-committees/
CSR Policy and CSR Projects: https://www.jklakshmicement.com/CSRCompositionPolicy.pdf

98 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

4. Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects carried out in pursuance
of sub-rule (3) of rule 8, if applicable.: Not Applicable
5. (a) Average net prot of the company as per section 135(5) : ` 46,956.00 Lakh
(b) Two percent of average net prot of the company as per section135(5) : ` 939.13 Lakh
(c) Surplus arising out of the CSR projects or programmes or activities of the previous nancial years. : Nil
(d) Amount required to be setoff for the nancial year, if any : Nil
(e) Total CSR obligation for the nancial year [(b)+(c)-(d)] : ` 939.13 Lakh
6. (a) Amount spent on CSR Projects (Both Ongoing & Other than Ongoing Projects):
During the reporting period, the Company implemented Ongoing projects such as JK Lakshmi Aarogya, JK Lakshmi
Vidya, JK Lakshmi Aajivika, JK Lakshmi Kaushal Prarshikshan, JK Lakshmi Swajal & Swachhta and JK Lakshmi Gramin
Vikas. A total amount of ` 916.81 Lakh has been spent on these Ongoing Projects.
(b) Amount spent in Administrative Overheads : ` 22.34 Lakh
(c) Amount spent on Impact Assessment, if applicable : Not Applicable
(d) Total amount spent for the Financial Year [(a)+(b)+(c)] : ` 939.15 Lakh
(e) CSR amount spent or unspent for the nancial year : Not Applicable

Total Amount Spent Amount Unspent (in ` / Lakh)

for the Financial Year Total Amount transferred to ‘Unspent Amount transferred to any fund specied under
(in `/ Lakh) CSR Account’ as per section 135(6). Schedule VII as per second proviso to section135(5)
Amount Date of transfer Name of the Fund Amount Date of transfer
939.15 N.A. N.A. N.A. N.A. N.A.

(f) Excess amount for set off, if any : Not Applicable

7. Details of Unspent CSR amount for the preceding three nancial years
1 2 3 4 5 6 7 8
Sl. Preceding Amount Balance Amount Amount transferred Amount Deciency,
No. Financial transferred Amount Spent to a Fund as specied remaining to if any
Year(s) to Unspent CSR in Unspent CSR in the under Schedule VII be spent in
Account under Account under Financial as per second proviso succeeding
sub-section(6) sub-section(6) Year to sub-section (5) of Financial
of section 135 of section 135 (in `/Lakh) section 135, if any Years
(in `/Lakh) (in `/Lakh) (in `/Lakh)
Amount Date of
(in `/ Lakh) Transfer
1. 2021-22 144.99 122.58 22.41 N.A. N.A. 122.58 N.A.

8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in
the Financial Year:
Yes No

9. Specify the reason(s), if the company has failed to spend two percent of the average net prot as per section 135(5):
Not Applicable .

Vinita Singhania Arun Kumar Shukla

Chairperson, CSR Committee President & Director

Place: New Delhi

Date: 19th May 2023

INTEGRATED ANNUAL REPORT 2022-23 99

ANNEXURE ‘B’ TO BOARD'S REPORT
Form No. AOC-2
(Pursuant to clause (h) of sub-section (3) of Section 134 of the Companies Act, 2013 and
Rule 8(2) of the Companies (Accounts) Rules, 2014)
This Form pertains to the disclosure of particulars of contracts/arrangements entered into by the Company with related parties
referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm’s length transactions under fourth
proviso thereto.
1. Details of contracts or arrangements or transactions not at arm’s length basis: NIL
2. Details of material contracts or arrangement or transactions at arm’s length basis for the Financial Year ended 31st March
2023 are as follows:
Name of Related Nature of contracts/ Duration of Salient terms of the Date(s) of Transaction
Party and Nature arrangements/ contracts/ contracts or approval by Amount
of relationship transactions arrangements/ arrangements or the Board, (` in Crore)
transactions transactions including including
the value, if any committee,
if any
Udaipur Cement Clinker Sale & others June 2013 Sale of Clinker/other N.A.* 5.70
Works Ltd. – ongoing at Arm’s length price
Subsidiary Company
Udaipur Cement Sale of Cement June 2018 Sale of Cement at N.A.* 261.93
Works Ltd. – ongoing Arm’s length price
Subsidiary Company
Udaipur Cement Sale of June 2018 Sale of Petcoke/Coal etc. N.A.* 123.28
Works Ltd. – Petcoke/Coal etc. ongoing at Arm’s length price
Subsidiary Company
Udaipur Cement Purchase of Cement August 2018 Purchase of Cement N.A.* 571.88
Works Ltd. – & others onwards at Arm’s length price
Subsidiary Company
Udaipur Cement Corporate Guarantee Upto Corporate Guarantee given 27th May 2022 750.00
Works Ltd. – Given FY 2036-37 on behalf of UCWL to &
Subsidiary Company Lenders of UCWL to secure 22nd August
(UCWL) the nancial assistance 2022
granted to UCWL in respect
of its Expansion Project
Udaipur Cement Loan Given One Year upto Interest rate of 8% p.a. 2nd January 85.40
Works Ltd. – 1st January, Amount will be utilised 2023
Subsidiary Company 2024 for implementation of
(UCWL) UCWL’s ongoing Cement
Expansion Project and the
repayment of said amount
along with interest accrued
and/or due thereon shall be
adjusted against the Share
Application money to be
paid by the Company as
Promoter’s Contribution
against its Rights Entitlement
in the proposed Rights
Issue of UCWL.
* Not applicable since the contract was entered into in the ordinary course of business and on arm’s length basis, market rate.
Note: All transactions with Udaipur Cement Works Ltd. have been disclosed irrespective of whether they are covered under
Section 188 of the Companies Act, 2013 or not. No advance was paid for any transaction mentioned above.
On behalf of the Board of Directors

Place: New Delhi Bharat Hari Singhania

Date: 19th May 2023 Chairman

100 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

ANNEXURE 'C' TO BOARD'S REPORT

A. Conservation of Energy
(I) Steps taken for Conservation of Energy
Energy conservation dictates show efciently a Company can conduct its operations. Energy conservation has always
been in the top priority of the Company and recognized the importance of energy conservation in decreasing the
harmful effects of Global Warming and climate change.
Major energy conservation initiatives/steps taken during 2022-23
• Installation of Latest generation classier in Coal Mills.
• Installation of VFD in Raw Mill
• Optimisation of Armour ring angle in VRM
• Installation of Fresh air damper in RM-3
• Optimisation of Grinding Media pattern in Ball Mill
• Belt weigher installation on mill outlet belt conveyor
• Installation of Weigh feeder in Place of Vibro feeder in Coal reclaimer circuit
• Reduction in false air ingress across VRM Circuit
• Mill separator seal gap has been minimized by Loctite material in RM-3
• Modication in WHR with additional arrangement of sealing and installation of Additional wear resistant plate,to
reduce in false air percentage in the boiler and increase boiler tube life.
• Through continuous monitoring & optimizing of cement mill & VRPM auxiliary, reduced 11KW/Hr. in auxiliary
power thereby saving of 75250 KWH units which accounts for 61705 Kg CO2eq GHG reduction per year.
• Panel Cooling Fans replaced with low power exhaust fans in siemens MV VFD.
• Installation of VFD in cooling tower motor installed.
• Bag lter fan removed in VRPM section resulting in power, savings of 18619 KWH units which accounts for 15258
Kg CO2eq GHG reduction per year.
• Installation Temperature Control System for all exhaust fans in substation.
• Install Low Pressure switch in Bag Filters Purging system.
• VFD Cooling fan on/off with interlock of VFD feedback.
• Fluidization Air Blower control through new logic interlock.
• Joined RE100 and EP100; becomes 4th Global Cement Company to Pledge 100% Renewable Energy by 2040.
Targeted to be carbon neutral by 2047-Durg
• 10th Indian Headquartered company to join RE100
• 11th Indian Headquartered company to join EP100
(II) Steps taken by the company for utilizing alternate sources of energy.
• Uses of Biomass in Thermal Power Plant.
• Installation of 7 MW Solar Plant.
• Increase in % co processing of Hazardous waste.
• Low voltage VFD panel of motor and installed in AFR feeding belt for optimum feeding of solid AFR.
• Continuous development in the Existing solid AFR for enhance TSR %, in kiln and CPP Boiler.
• Increase in use of Renewable Energy Resources.
(III) Capital Investment on energy conservation equipment

Sr. No. Equipment Name Investment Amount Saving/ year

(` in Lakh) (` in Lakh)
1 Installation of Latest generation classier in Coal Mills 424 37
2 Installation of VFD in Raw Mill 6.5 4.7

INTEGRATED ANNUAL REPORT 2022-23 101

B. Technology Absorption

(I) Efforts made towards technology absorption

• Installation of Latest generation classier in Coal Mills.

• In house modication in control wiring of GRID/20 MW/WHR to sustain 20 MW TPP in house load during grid
disturbance to avoid black-out condition.

Additional In-house arrangement made as a backup power supply for kiln auxiliary drive during black out condition,
for Kiln operational safety.

• Adopting Model predictive Control for Kiln operation, doing all feasible efforts for sustainable operation of kiln with
MPC for Thermal and Electrical energy saving, in existing Process.

• For mitigate unwanted shutdown and breakdown, resulting improving plant utilization Factor and Availability by
real time monitoring sensors.

• Installation of IOT /OMS sensors for real time monitoring of critical equipment to enhance availability.

• Installed vibration motors at various locations of VRPM Elevator & Silo Feed Elevator to control formation of coating
and ensure continuous plant operation.

• 1400 KW motor replaced with 1250 KW motor in VRPM main drive to improve operational efciency of VRPM.

• Installation of IOT /OMS sensors for real time monitoring of critical equipment to enhance availability.

• Installation of Nitrogen injection system for re prevention at transformer

(II) Benets derived like product improvement, cost reduction, product development or import substitution.

• Enhanced output from upgraded classier.

• Reduction of Contract Demand due to consistent availability of WHR, Solar and Thermal Power Plant.

• Shifting of CBA from plant to mines, resulting in consistency in limestone quality. It is related to kiln operation,
availability and clinker quality.

• Optimized and Enhanced Coal Firing Capacity for Kiln in reference to AF ring in calciner.

• Operating with Cost-feasibility Fuel Mix. for KILN and CPP.

• Reducing power cost by Operating of Power plant with feasible power Mix and Maximum use of in power plant.

• Modication of coal ring system for high ASH coal consumption in KILN.

• Maximum utilization VRM for Cement Grinding.

• Maximum Production of COC at 20 %.

• Exploring and Adopting AI and ML in the process.

• 13% LF Slag replaced with Granulated slag resulting ` 37.7 Lakh saving.

(III) In case of imported technology (imported during the last three years reckoned from the beginning of nancial
year):

a. The details of Technology Imported

• Flue Gas Desulphurization (FGD) for Captive Power Plant (CPP) at Sirohi.

b. The year of import

Particulars Year of Import

FGD for TPP at Sirohi 2021-22

102 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

c. Whether the technology has been fully absorbed: Yes

d. If not fully absorbed, areas where absorption has not taken place and reason thereof: Not Aplicable
(IV) The expenditure incurred on Research and Development:
S. No. Particulars Amount (` in Crore)
1. Capital Expenditure -
2. Revenue Expense 7.63
Total 7.63

C. Foreign Exchange Earnings and Outgo

S.No. Particulars Amount (` in Crore)

1. Foreign Exchange Earnings -
2. Foreign Exchange Used (CIF value of Imports of Fuel, Stores & Spares, 711.08
Capital Goods, Consultancy Charges, Know-How Fee, etc.)

On behalf of the Board of Directors

Place: New Delhi Bharat Hari Singhania

Date: 19th May 2023 Chairman

INTEGRATED ANNUAL REPORT 2022-23 103

ANNEXURE 'D' TO BOARD'S REPORT
SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR
ENDED 31ST MARCH 2023
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014]
To, (a) The Securities and Exchange Board of India (Listing
The Members, Obligations and Disclosure Requirements)
JK Lakshmi Cement Limited Regulations, 2015.
Jaykaypuram (b) The Securities and Exchange Board of India
District Sirohi - 307019 (Rajasthan) (Substantial Acquisition of Shares and Takeovers)
I have conducted the secretarial audit of the compliance of Regulations, 2011;
applicable statutory provisions and the adherence to good (c) The Securities and Exchange Board of India
corporate practices by JK Lakshmi Cement Limited (Prohibition of Insider Trading) Regulations, 2015;
(CIN: L74999RJ1938PLC019511) (hereinafter called ‘the (d) The Securities and Exchange Board of India (Issue of
Company’). Secretarial Audit was conducted in a manner that Capital and Disclosure Requirements) Regulations,
provided me a reasonable basis for evaluating the corporate 2018; (not applicable to the Company during the
conducts/ statutory compliances and expressing my opinion audit period)
thereon.
(e) Securities and Exchange Board of India (Issue and
Based on my verication of the Company’s books, papers, Listing of Non-Convertible Securities) Regulations,
minute books, forms and returns led and other records 2021;
maintained by the Company and also the information
(f) The Securities and Exchange Board of India
provided by the Company, its ofcers, agents and authorized
(Registrars to an Issue and Share Transfer Agents)
representatives during the conduct of secretarial audit,
Regulations, 1993 regarding the Companies Act
I hereby report that in my opinion, the Company has, during
and dealing with client;
the audit period covering the nancial year ended on
31st March 2023 (Audit Period), complied with the statutory (g) Securities and Exchange Board of India (Share Based
provisions listed hereunder and also that the Company has Employee Benets and Sweat Equity) Regulations,
proper Board-processes and compliance-mechanism in place 2021 (Not applicable to the Company during the
to the extent, in the manner and subject to the reporting Audit Period);
made hereinafter: (h) The Securities and Exchange Board of India
I have examined the books, papers, minute books, forms and (Delisting of Equity Shares) Regulations, 2021 -
returns led and other records maintained by the Company (Not applicable to the Company during the
for the nancial year ended on 31st March 2023, according to Audit Period),
the provisions of: (i) The Securities and Exchange Board of India
(i) The Companies Act, 2013 (the Act) and the rules made (Buyback of Securities) Regulations, 2018- (Not
there under; applicable to the Company during the Audit
Period);
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)
and the rules made thereunder; (vi) Management has identied and conrmed the
following laws as being specically applicable to the
(iii) The Depositories Act, 1996 and the Regulations and
Company and complied with:
Bye-laws framed there under;
(a) Mines and Mineral (Regulation and Development)
(iv) Foreign Exchange Management Act, 1999 and the rules
Act, 1957 read with Mineral Conservation and
and regulations made thereunder to the extent of
Development Rules, 1988
Foreign Direct Investment, Overseas Direct Investment
and External Commercial Borrowings; (b) Mines Act, 1952 read with Mines Rules, 1955

(v) The following Regulations and Guidelines prescribed (c) Cement Cess Rules, 1993 and
under the Securities and Exchange Board of India Act, (d) Bureau of Indian Standards Act, 2016 and Cement
1992 (‘SEBI Act’):- (Quality Control) Order made thereunder

104 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

I have also examined compliance with the applicable clauses I further report that, during the audit period, no major events
of the following: have taken place, except the following:
(i) Mandatory Secretarial Standard 1 and Secretarial - Members of the Company, in terms of sections 180
Standard 2 issued by the Institute of Company (1)(c) and 180 (1) (a) of the Act, authorised the Board
Secretaries of India, of Directors for borrowing monies upto Rs. 4,000
(ii) The Listing Agreement(s) entered into by the crores and creating security by mortgage or charge in
Company with the Stock Exchanges. favour of the lenders, vide special resolutions passed
at their Annual General Meeting on 17th August 2022.
During the period under review, the Company has complied
with the provisions of the Acts, Rules, Regulations, This report is to be read alongwith the following-
Guidelines, Standards, etc. as mentioned above. 1. Maintenance of secretarial records is the responsibility
I further report that: of the management of the Company. My responsibility
is to express an opinion on these secretarial records
The Board of Directors of the Company is duly constituted
based on my audit.
with proper balance of Executive Directors, Non-Executive
Directors and Independent Directors. Changes that took 2. I have followed the audit practices and processes as
place in the composition of Board of Directors with respect to were appropriate to obtain reasonable assurance about
Executive and Independent directors during the audit period, the correctness of the contents of the secretarial
were in accordance with provisions of the Act and the SEBI records. The verication was done on test basis to
Regulations. ensure that correct facts are reected in secretarial
records. I believe that the processes and practices, I
Adequate Notice is given to all directors to schedule the
followed provide a reasonable basis for my opinion.
Board/ Committee Meetings. Agenda and detailed notes on
agenda were sent at least seven days in advance and a system 3. I have not veried the correctness and appropriateness
exists for seeking and obtaining further information and of nancial records and Books of Accounts of the
clarications on the agenda items before the meeting and for company.
meaningful participation at the Meeting. 4. Whereever required, I have obtained the Management
All decisions at Board Meetings and Committee Meetings are representation about the compliance of laws, rules and
carried out unanimously as recorded in the Minutes of the regulations and happening of events etc.
Meetings of the Board of Directors or Committee of the 5. The compliance of the provisions of Corporate and
Board, as the case may be. other applicable laws, rules, regulations, standards is
I further report that, based on review of compliance the responsibility of management. My examination was
mechanism established by the Company and on the basis of limited to the verication of procedures on test basis.
compliance certicates issued by the Company Executives 6. The Secretarial Audit report is neither an assurance as to
and taken on record by the Board of Directors and Audit the future viability of the Company nor of the efcacy or
Committee at their meetings, there are adequate systems and effectiveness with which the management has
processes in the Company commensurate with the size and conducted the affairs of the company.
operations of the Company to monitor and ensure
compliance with applicable laws, rules, regulations and
guidelines.

Place: New Delhi Namo Narain Agarwal

Date: 13th May 2023 Secretarial Auditor
UDIN: F000234E000303119 FCS No. 234, CP No. 3331

INTEGRATED ANNUAL REPORT 2022-23 105

ANNEXURE 'E' TO THE BOARD'S REPORT

Disclosure pursuant to Section 197(12) of the Companies (13.65%) (vii) Shri B.V. Bhargava, Ceased to be director
Act, 2013 read with Rule 5(1) of the Companies w.e.f. 31.08.2022- (61.79%) (viii) Amb. Bhaswati
(Appointment and Remuneration of Managerial Mukherjee- (16.53%) (ix) Shri Ravi Jhunjhunwala-
Personnel) Rules, 2014 for the Financial Year ended (14.89%) (x) Shri Nand Gopal Khaitan - (11.68%) (xi)
31st March 2023: Shri Sadhu Ram Bansal, Director w.e.f. 01.07.2022-
100% (xii) Shri S.A. Bidkar, CFO - 8.24% (xiii) Shri B.K.
A. The ratio of the remuneration of each director to the
Daga, Sr. VP & CS, Ceased to be Company Secretary
median remuneration of the employees of the
w.e.f 01.09.2022- (55.51%) (xiv) Shri Amit Chaurasia,
Company for the nancial year
Company Secretary w.e.f. 01.09.2022- 100%
Non-Executive Directors: Shri Bharat Hari Singhania,
C. The percentage increase in the median remuneration
Chairman, 34.13; Shri Nand Gopal Khaitan, 2.01;
of employees is 8.53%.
Shri Ravi Jhunjhunwala, 1.82; Dr. Raghupati Singhania,
1.85; Dr. K.N. Memani, Nil (Ceased to be director w.e.f. D. The number of permanent employees on the rolls of
26.04.2022); Shri B.V. Bhargava, 0.82 (Ceased to be Company - 1,699.
director w.e.f. 31.08.2022); Shri Sadhu Ram Bansal, E. Average percentile increase already made in the
Director w.e.f. 01.07.2022 - 1.28 and Amb. Bhaswati salaries of employees other than the managerial
Mukherjee, 1.61. personnel in the last nancial year and its
Executive Directors: Smt. Vinita Singhania, VC&MD, comparison with the percentile increase in the
228.50; Shri Arun Kumar Shukla, President & Director managerial remuneration and justication thereof
w.e.f 01.08.2022 - 25.48; Shri Sushil Kumar Wali, 15.63 and point out if there are any exceptional
(Ceased to be director w.e.f 01.08.2022) and circumstances for increase in the managerial
Dr. Shailendra Chouksey, 15.60 (Ceased to be director remuneration – During the Financial Year 2022-23 on
w.e.f 01.08.2022). an average employee received an annual increment of
B. The percentage increase/ (decrease) in remuneration 9% with individual increment varying from 0 to 20%.

of each Director, Chief Executive Ofcer, Chief There was decrease of 36.56% in managerial

Financial Ofcer, Company Secretary in the nancial remuneration during the current nancial year. Such

year – (i) Shri Bharat Hari Singhania, Chairman- decrease was mainly attributable to decrease in

(71.48%) (ii) Smt. Vinita Singhania, VC & MD- (11.45%) commission & ceasing to be the Executive Directors.

(iii) Shri Arun Kumar Shukla, President & Director w.e.f. F. Afrmation that the remuneration is as per the
01.08.2022 - 100% (iv) Dr. Shailendra Chouksey, Ceased remuneration policy: We afrm that the remuneration
to be director w.e.f 01.08.2022 - (71.94%) (v) Shri paid during the Financial Year 2022-23 is as per the
Sushil Kumar Wali, Ceased to be director w.e.f. Nomination and Remuneration Policy of the Company.
01.08.2022 - (71.93%) (vi) Dr. Raghupati Singhania-

On behalf of the Board of Directors

Place: New Delhi Bharat Hari Singhania

Date: 19th May 2023 Chairman

106 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

ANNEXURE 'F' TO THE BOARD’S REPORT

MANAGEMENT DISCUSSION AND ANALYSIS
OUTLOOK FOR INDIAN ECONOMY, INDUSTRY STRUCTURE FY23 reaching 590-595 million tons of Pan India cement
& DEVELOPMENTS capacity. Lower double-digit demand should see a rise in
The Financial Year 2022-23 started when global uncertainties capacity utilisation by about 2% to ~ 66% level.
were rife. Barely had the pandemic receded and the Russia- Industry is likely to see ~9% to ~10% y-o-y volume growth in
Ukraine war broke out in February 2022, that led to a sharp FY23, supported by sustained demand from infrastructure
rose in the prices of food, fuel, and fertiliser. They remained at projects and recovery in individual housing demand. Long
elevated levels for several months. The risk of another round term growth expectations to be in the range of ~7% to 8%
of supply chain disruptions emerged, but they were not as mainly based on higher projected growth coming from these
severe as feared. Nonetheless, both the price and the two segments. The current global uncertainty and fear of
availability of essential commodities had the potential to dent global recession due to prolonged Russia-Ukraine war is likely
the industry’s optimism on consolidating the recovery of to cast its shadow in the construction sector further. The
FY22 and further accelerating it. Despite all the above industry which is already grappling with the impact of
challenges, it is fair to say that the Indian Economy recovered phenomenal rise in fuel and transportation costs would nd it
well and staged a broad-based come back across sectors to difcult to pass on the cost increase to the market when the
get back to the pre-pandemic growth path in FY23. Overall, off take is low.
Gross Value Added (GVA) by the Industrial Sector, based on Key energy items like Pet coke/Coal were marginally down vs
data available for the rst half of the FY23, rose 3.7%, which FY 22 average, but owing to the higher cost inventory,
is higher than the average growth of 2.8% achieved in H1 of benets are unlikely to percolate fully. Additionally, after a
the last decade. While India’s retail ination rate peaked at gap of two years, busy season surcharge (@ 15%) was
7.8% in April 2022, above the RBI’s upper tolerance limit of reintroduced by railways from October-22, which has
6%, the overshoot of ination above the upper end of the impacted the freight costs. Diesel price trend has been
target range in India was however one of the lowest in sideways in past few months and is a relief. Due to divergent
the world. and volatile trends in major cost items, individual companies'
With high allocation under the Union Budget 2022-23 for costs are likely to be inuenced by inventory levels and rail mix
infrastructure, affordable housing government schemes such of each company. Further, the acquisition by large cement
as MGNREGA, PM Garib Kalyan Rozgar Abhiyan and Road & players and competitive posture has brought some
Railway projects to fuel the economy, the domestic cement turbulence in the market. In an uncertain environment, most
industry poised for a volume surge and boost the demand for manufacturers have been focussing more on volumes than
cement. Under the housing for all segment, 8 million on prices to mitigate high costs. Industry is attempting to
households were identied under Pradhan Mantri Awas close the gap between billing and transactional prices for
Yojana (PMAY), both rural & urban and ~ ` 48,000 Crore was better transparency and working capital utilisation with the
allocated for the purpose. The Government also approved an channel.
outlay of ~ ` 1,99,107 Crore for the Ministry of Road Going forward, while FY24 appears to be a year full of
Transport and Highways and this step is likely to boost the opportunities as well as uncertainties and challenges;
demand for cement. In the FY 23, Indian Government built however, we remain optimistic for the outlook for the cement
5.28 million houses under the agship rural housing scheme sector which according to us would rmly remain in long-
which was 25% higher than the houses built in the FY 22 and term trajectory of sustainable annual growth ranging from
has proposed to build 5.73 million houses by FY 24, to 6% to 8%. As per CRISIL Ratings, the Indian cement industry
achieve the target to build 29.5 million houses under PMAY. is likely to add ~80 million tonnes (MT) capacity by FY24, the
India’s cement production and consumption both grew by ~ highest since the last 10 years, driven by increasing spending
9% in FY23 on a y-o-y basis, driven by the Government’s push on housing and infrastructure activities. Overall, the Outlook
for infrastructure development and increased real estate for the cement industry is very positive. The increasing
activity. EBITDA margins of cement players declined by almost demand for infrastructure and green construction materials
10% y-o-y in H1FY23 mostly due to an increase in power and will help to drive signicant growth in the coming years.
fuel cost on the back of a sharp surge in coal prices. Limestone FINANCIAL PERFORMANCE
prices also escalated during H1FY23. There has been a 3%
y-o-y increase on an average in wholesale cement prices in During the Financial Year 2022-23, the Company’s Cement
FY23. While the prices have remained attish in Q3, Q4 Production was higher by 9% at 93.82 lac tonnes as against
witnessed a further marginal decline in prices. As projected, 86.16 lac tonnes achieved during the last Financial Year. The
industry was likely to add 30-35 million tons of capacity in Company’s Sales during the Financial Year ended 31st March

INTEGRATED ANNUAL REPORT 2022-23 107

2023 were up by 7% at 107.58 lac tonnes against 100.94 lac tonnes logged in the last Financial Year.
The Turnover of the Company during the Financial Year 2022-23 increased by 20% from ` 5,108 Crore in Financial Year 2021-22
to ` 6,133 Crore in Financial Year 2022-23. The Company registered an EBIDTA of ` 767 Crore as against
` 869 Crore in the previous Financial Year, while the Net Prot is at ` 330 Crore as against ` 418 Crore in the previous Financial Year.
KEY CHANGES IN FINANCIAL INDICATORS
The various Financial Ratios for the year under review as compared to the same of the previous Financial Year are given hereunder:

Sl. Particulars Unit As at As at Comments

No. 31.3.2023 31.3.2022
1 Operating Prot Margin % 12% 16% Reduction in Operating Prot primarily
emanating from steep increase in the Fuel &
Other Input costs.
2 Net Prot Margin % 5.44% 8.28% Reduction in Net Prot primarily emanating
from steep increase in the Fuel & Other Input costs.
3 Return on Net-Worth % 12.76% 18.43% Reduction in Net Prot due to steep increase
in Fuel & Other Input costs and higher Net Worth.
4 Interest Coverage Ratio Times 8.38 9.02 Reduction in Operating Prot due to steep
increase in Fuel & Other Input costs.
5 Debt Service Coverage Ratio Times 2.72 2.01 Reduced Debt Repayment obligation during
the Current Year.
6 Current Ratio Times 1.39 1.34 Improved Liquidity position & better Working
Capital Management
7 Debt Equity Ratio Times 0.30 0.39 Reduced Leverage through Debt Repayment.
8 Net Debt Equity Ratio Times -0.03 0.03 Reduced Leverage & higher Liquidity
9 Net Debt to EBIDTA Times -0.10 0.08 Reduced Leverage & higher Liquidity
10 Inventory Turnover Times 10 12 Better Working Capital Management
11 Debtors Turnover Times 164 146 Increased in Turnover

OPPORTUNITIES AND THREATS Increases in diesel prices have adversely impacted logistics
The cement industry has seen an uptrend in volume growth cost of the industry. Companies have been trying new
because of the economic recovery, urban housing demand, initiatives like CNG/LNG vehicles that will bring efciency as
Government’s thrust towards infrastructure and rural well as cost relief for road transportation. This will also be a
development considering the 2024 elections and fast- greener alternative thus reducing the carbon footprint.
tracking of infrastructure projects like metro, roads and Rising competition is limiting price increases, which have
highways. largely remained range bound despite good demand
While residential and commercial construction will continue numbers in FY22-23. This is leading to a focus on volume
to be pivotal in the growth of Cement demand, industry's real push by the manufacturers coupled with efciency
boost will come from an increase in the pace of Infrastructure improvement projects.
creation and housing sectors. Higher allocation to The Union Budget 2023-24 announced, 33% increase in
infrastructure and expediting the tendering process in allocation for key infrastructure sectors, 66% higher outlay
highway projects have the ability to generate a positive for PMAY, highest ever outlay for railways in the last decade,
sentiment for cement industry. and plans for 50 new airports. Each of these are expected to
The Government of India is strongly focused on infrastructure further boost the already robust demand for cement. Cement
development to boost economic growth and is aiming for demand is expected to ride on Infrastructure and housing
100 smart cities. The Government also intends to expand the push. Increased outlay for infrastructure, housing and
capacity of railways and the facilities for handling and storage logistics are all positive for the cement sector, as is the focus
to ease the transportation of cement and reduce on green energy, which should help to reduce costs.
transportation cost. These measures would lead to an The cement industry outlook is mixed with near-term
increased construction activity, thereby boosting cement challenges weighing on the mind of cement company’s
demand. The cement demand in India is estimated to cross executives. The rise in energy and transportation costs, along
500 MT by FY 2027. As India has a high quantity and quality with continued pressures from environment regulations, are
of limestone deposits throughout the country, the cement top concerns. Additionally, overcapacity in China has led to
industry promises a high growth potential. increased exports of cement to other countries, which further

108 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

complicates the global market landscape. Despite these INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY
challenges, there are also opportunities for growth in the The Company believes that a strong Internal Control
coming years as demand for cement is projected to grow framework is an important pillar of Corporate Governance.
faster than the announced capacity additions. Organisations The Company has a well-dened Internal Control System
which are able to capitalize on these trends will be well commensurate with the size, scale and complexities of the
positioned for success in the future. operations to support the Business Operations and also to
RISKS AND CONCERNS ensure Statutory Compliances. These Internal Control
Risks are unavoidable aspect of doing business. In fact, Systems are periodically tested for their effectiveness by the
fructication of certain risks also sometimes presents tactical Management and by the Statutory & Internal Auditors of the
opportunities. However, with a view to manage its risks Company. These Internal Control Systems were found to be
appropriately in the long term, the Company actively identify, operating effectively during the year.
analyse and address key risks through a robust risk The Company has retained the services of our past Statutory
management programme. The Company has a strong risk Auditors to conduct internal audit for its all-integrated plants
management framework that enables regular and active and also some of the split location Grinding Units. In
monitoring of business activities for identication, addition, the Company also has an Independent In-house
assessment and mitigation of potential internal or external Internal Audit Department which is manned by Experienced
risks. Our commitment to strong ethical values and high Professionals. This Internal Audit Department carries out the
levels of personal and organisational integrity adds a further Internal Audit based on a Systematic Audit Plan covering all
layer of risk mitigation to our operations. key functions and aspects of the Business. This Audit Plan is
Increase in the costs of raw material, power and fuel due to approved by the Audit Committee at the start of the Financial
ination or global price trends may impact protability. The Year. The Company has also engaged services of certain
Company is employing various means to reduce the impact of External Audit Firms for conducting Audit of its key Regional
rising costs through better fuel sourcing, dynamic fuel mix Ofces & Depots. The Internal Audit Reports, of the external
capabilities to capitalise on changing trends in price and the as well as In-house Audit Teams, are reviewed by the Top
use of alternative fuels. A focus on achieving better operating Management and are placed before the Audit Committee of
efciencies and reducing coal and power consumption Directors. The Audit Committee undertakes a total review of
continues as a way of life. The Company continues to evaluate the audit observations and the actions taken by the
and assess long term strategic solutions from waste heat Management on all the ndings of the Internal Auditors. The
recovery systems to solar energy, from alternate fuel to implementation of the recommendations of the Internal
alternate sources, etc. to manage costs in the medium and Auditors is regularly reviewed and monitored by the Senior
long term. Management and the Action Taken Report is placed
periodically before the Audit Committee. The Company also
One of the concern and the expectations in Industry has is has an Internal Risk Management Committee comprising of
when each time, the GST council meets, the Industry eagerly Functional Heads. This Committee meets on a quarterly basis
hopes that the cement will be put under lower tax slabs than to evaluate the risk as also the mitigation plan put in place to
the sin slab of 28%. In the 49th GST Council meeting held on minimise the impact of various internal and external risks to
18th February 2023, it was hoped that the Council may lower the Company's business. In addition, there is a Risk
the GST rate, however, it did not come up with the tment Management Committee at the Board Level to review the
committee. Ever since the introduction of GST, the council is various risks which impact the Company's operations and the
periodically reviewing the tax rates and is consistently management plan to meet those risks.
bringing more and more commodities under lower tax slabs.
Cement is now one of the very few commodities that is in The Company also has a robust MIS system and Budgetary
highest tax slab and understandably because it is not easy for Control System under which the operating and nancial
the Government of the day to let lose the tax cow. Like always, performances are reviewed on a monthly basis. The variations
the Industry prefers to be positive and keep its hope alive for a with the budget are analysed and corrective actions are taken
favourable outcome. to minimize the variations with the Budget wherever
shortfalls are noticed. Further, the Company has also put in
Your Company has made various efforts to increase its market place Legal Compliance Monitoring Tool to ensure timely
presence and market share in its natural markets and in the compliance of all the applicable Statutes at its different
markets that are more economically benecial. It is putting all locations.
efforts to considerably shrink the lead distances to optimise
logistics cost further and increase the share of blended HUMAN RESOURCE - “OUR PEOPLE, OUR BIGGEST
cement in its product portfolio. These measures would STRENGTH”
provide the Company cushion to absorb the impact of Our people are our biggest strength and the cornerstone of
increase in various costs. our business which we have always strived and believed to
create a work environment of care, trust and respect.

INTEGRATED ANNUAL REPORT 2022-23 109

Post COVID-19, we have endeavoured by leveraging the Continuing with the Vision & Mission focused on Human
technology to create an environment of incessant Capital, Customers, Innovation, Technology, the Company
communication with our employees at all levels, customers has kept pace with competition and exceeded in specic
and stakeholders, in keeping them engaged and aligned with domains. The journey of nurturing, grooming and preparing
business requirements with health and safety on top priority internal talents with the development opportunities,
all the time. Company organized Development Centre in partnership with
On the human resources front, our HR policies and guidelines world leaders across the levels with post assessment support
are designed in a way that encourages teamwork and through world renowned assessment development centre
synergistic approach thereby strengthening agility, future agency for talent management to build a pipeline of young
readiness and enhancing employee experience. Our inclusive leaders for future readiness and strengthen its ‘Grow Your
and progressive culture helps to motivate employees, Own Timber’ approach for leadership roles by rewarding and
strengthen the leadership pipeline, attract young talent, providing a well-dened growth path.
deliver results, grow market share and the operating Millennials are encouraged, prepared, and enabled to
protability of the company. manage bigger chunk of areas and markets. It is aligned with
Company is well prepared digitally to take on the challenges assessing expectations of young generation and
of the new world by enhancing latest digital capability incorporating in the culture/HR strategy especially career
building of our people through trainings and certication growth strategies, R&R strategy to keep up with ambitions of
programmes. HR processes like Individual Development Plan, employees/new age workforce.
Recruitment & E-Joining, Performance Management System, Tactfully ascertaining changing aspiration of nearby
Conrmation and Separation have been digitalized for community through HR & CSR partnership to prepare
enhanced productivity and employee experience. effectively for future along with a tacit commitment for a pro-
On Employee Engagement front, key initiatives taken are longed mutually benecial association, has resulted into its
Sharing of Success Stories – To boost up morale and high level of retention of talents and harmonious industrial
motivation of the best performer and to motivate other Team relations for last 25+ years. The details of Number of people
Members, Har Ghar Tiranga (Tricolour in every household) employed are given in Annexure - E to Board's Report.
Programme – On the occasion of India’s 75th Independence The results of sustained people practices have been
Day, SANGAM - Interzone Quiz competition to create feeling instrumental in JK Lakshmi Cement Ltd. being emerged with
of One Team One Family, Skip – Level meetings, BANDHAN – Highest Engagement Level across JKO Businesses @89% in
an employee connect initiative, UDAAN Competition, Virtual Employee Engagement Survey (March 2022) which is a
Family Engagement - “MANN KI BAAT”, ensuring mental & reection of high morale, motivation and loyalty amongst
psychological wellbeing of employees and their family employees and exhibits the importance we have placed on
members, Leadership & Personality Development, etc. our teammates and the way our employees are groomed,
Innovations in information and communication technologies nurtured, developed and retained.
have changed the way of working like VC&MD’s CAUTIONARY STATEMENT
Communication Meeting across all locations with all levels The Management Discussion and Analysis contains forward-
and of Top Leaders with the team members and other work looking statements, which may be identied by the use of
groups using virtual platform, transition towards a more words in that direction or connoting the same. All statements
digital working, etc. that address expectations or projections about the future
Augmenting our human capital and investing in our people including but not limited to statements about your
towards their all-round development has always been a Company’s strategy for growth, product development,
passion at JK Lakshmi Cement Ltd. In line with the same, market positions, expenditures and nancial results are
Outbound Skill Development & Customer Orientation forward looking statements.
Programme, Technical & Behavioral trainings (Internal & Your Company’s actual results, performance and
external), Physical & Mental Well Being sessions with achievements could thus differ materially from those
Company’s doctors, Safety & health and family-oriented projected in such forward looking statements. The Company
subjects with employees as well as Dealers/ channel partners assumes no responsibility to publicly amend, modify or revise
including their family members have created a win-win work any forward-looking statements on the basis of any
environment. subsequent development, information or events.

110 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

ANNEXURE 'G' TO THE BOARD'S REPORT

REPORT ON CORPORATE GOVERNANCE
1. COMPANY’S PHILOSOPHY ON CODE OF Corporate Ethics and Conduct reiterating its
GOVERNANCE commitment to maintain the highest standards in its
Corporate Governance is an integral part of values, interface with stakeholders and clearly laying down the
ethics and best business practices followed by the core values and corporate ethics to be practiced by its
Company. The core values of the Company are: entire management cadre.

• commitment to excellence and customer satisfaction; 2. BOARD OF DIRECTORS

• maximising long term shareholders’ value; As on 31st March 2023, the Board of Directors of the
Company consists of Eight Directors comprising two
• socially valued enterprise; and
Executive Directors and six Non-executive Directors
• caring for people and environment. (NED) out of which four are Independent Directors
In nutshell, the philosophy can be described as (IND). Four Board Meetings were held during the
observing of business practices with the ultimate aim of Financial Year ended 31st March 2023 i.e. on 18th May
enhancing long term Shareholders’ value and 2022, 27 th July 2022, 3 rd November 2022 and
commitment to high standard of business ethics by 10th February 2023. Attendance and other details of the
following best corporate governance norms in true Directors for the Financial Year ended 31st March 2023
letter and spirit. The Company has in place a Code of are given below:

Name of the Directors DIN Category No. of Board Whether No. of Directorships and
Meetings last AGM Committee Memberships/
Attended attended Chairmanships held
(17.8.2022) in other companies
Director- Committee Committee
ships $ Memberships Chairmanships
@ @
(1) (2) (3) (4) (5) (6) (7) (8)

Shri Bharat Hari Singhania, Chairman 00041156 NED 4 No 4 - -

Smt. Vinita Singhania, 00042983 Executive 4 Yes 5 - -
Vice Chairman & Managing Director
Shri Nand Gopal Khaitan 00020588 IND 4 Yes 6 7 2
Dr. Raghupati Singhania 00036129 NED 4 Yes 7 2 1
Shri Ravi Jhunjhunwala 00060972 IND 4 No 9 5 2
Amb. Bhaswati Mukherjee 07173244 IND 4 Yes 3 4 2
Shri Sadhu Ram Bansal# 06471984 IND 3 Yes 5 7 2
Shri Arun Kumar Shukla^ 09604989 Executive 2 Yes 1 - -
President & Director
Shri B. V. Bhargava* 00001823 IND 2 No *
Dr. Shailendra Chouksey, 00040282 Executive 2 &
Whole Time Director&
Shri Sushil Kumar Wali, 00044890 Executive 2 &
Whole Time Director&
Dr. Kashi Nath Memani~ 00020696 IND ~

$ Excluding Private companies, Foreign companies and companies under Section 8 of the Companies Act, 2013 (Act). Independent
directorships held by the Directors are in accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
(‘Listing Regulations’).
@Only covers Memberships / Chairmanships of Audit Committee and Stakeholders’ Relationship Committee.
#Shri Sadhu Ram Bansal was appointed as an Independent Director on the Board of Directors of the Company w.e.f. 1st July 2022.
^ Shri Arun Kumar Shukla, President of the Company was appointed as ‘President & Director’ on the Board of Directors of the Company
w.e.f. 1st August 2022.

INTEGRATED ANNUAL REPORT 2022-23 111

*Shri B.V. Bhargava ceased to be Director of the Company w.e.f. 31st August 2022, on completion of his second term as an Independent
Director on 30th August 2022.
& Dr. Shailendra Chouksey and Shri Sushil Kumar Wali ceased to be Directors of the Company w.e.f. 1st August 2022, on completion of
their existing term as Whole-time Directors on 31st July 2022.
~ Dr. Kashi Nath Memani had resigned from the Board of Directors of the Company w.e.f. 26th April 2022, before expiry of his term in
August 2022.

Details of other Listed companies where Directors of the Company are Directors and their category of directorship
(as on 31st March 2023) are as under:-
Sl. No Name of Directors Name of Listed Company Category of Directorship
1 Shri Bharat Hari Singhania JK Agri Genetics Limited Non- Executive
JK Paper Limited Non- Executive
JK Tyre & Industries Limited Non- Executive
Bengal & Assam Company Limited Non- Executive
2 Smt. Vinita Singhania JK Paper Limited Non- Executive
HEG Limited Non- Executive
Udaipur Cement Works Limited Non- Executive
Bengal & Assam Company Limited Non- Executive
3 Shri Nand Gopal Khaitan Mangalam Cement Limited Independent
Reliance Chemotex Industries Limited Non- Executive
India Power Corporation Limited Independent
Agi Greenpac Limited Independent
Hindware Home Innovation Limited Independent
Shyam Metalics and Energy Limited Independent
4 Dr. Raghupati Singhania JK Agri Genetics Limited Non-Executive
Radico Khaitan Limited Independent
JK Tyre & Industries Limited Executive
Bengal & Assam Company Limited Non-Executive
5 Shri Ravi Jhunjhunwala HEG Limited Executive
RSWM Limited Non-Executive
Maral Overseas Limited Non-Executive
BSL Limited Non-Executive
India Glycols Limited Independent
6 Amb. Bhaswati Mukherjee Jindal Stainless Limited Independent
Udaipur Cement Works Limited Independent
Petronet LNG Limited Independent
7 Shri Sadhu Ram Bansal Hindusthan Urban Infrastructure Limited Independent
KEI Industries Limited Independent
GMR Airports Infrastructure Limited Independent
Note: Shri Arun Kumar Shukla, President & Director does not hold directorship in any other Listed company.

The Board conrms that in its opinion, all the Independent governance expertise; (v) technology/ knowledge pertaining
Directors of the Company fulll the conditions specied in the to Cement industry; (vi) commercial experience; (vii)
Listing Regulations and are independent of the management community service, sustainability and corporate social
of the Company. responsibility; and (viii) quality and safety experience.
The Board has identied the following as core skills/expertise/ All the Board Members possess above skills collectively that
competencies required in the context of the Company's enable them to make effective contribution to the Board and
business and sector for it to function effectively:- its Committees. The core skills of individual Directors are: (a)
(i) nancial and accounting knowledge; (ii) strategic the Executive Directors of the Company; namely- Smt. Vinita
expertise; (iii) risk governance; (iv) legal & corporate Singhania is an Industrialist and Entrepreneur with long

112 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

diversied Industry experience including Cement & Paper, 4,43,348 shares [includes 1,30,316 shares held as Karta of
etc.; Shri Arun Kumar Shukla - Professional having technical Dr. Raghupati Singhania (HUF)].
knowledge pertaining to Cement industry, Quality, Safety, Amb. Bhaswati Mukherjee, Shri Ravi Jhunjhunwala and Shri
Risk governance, Sustainability and Community service, with Sadhu Ram Bansal do not hold any share in the Company.
experience in Commercial, Marketing, improving plant
efciency parameters and xed cost reductions, etc. (b) the The Company does not have any outstanding convertible
Non-executive Directors of the Company; namely- Shri Bharat instruments.
Hari Singhania, Dr. Raghupati Singhania and Shri Ravi 3. SEPARATE MEETING OF THE INDEPENDENT
Jhunjhunwala are eminent Industrialists and Entrepreneurs DIRECTORS
with long diversied Industry experience; Shri Nand Gopal
In accordance with the provisions of Schedule IV to the
Khaitan – Attorney -At-Law having Corporate Governance
Act and Regulation 25 of the Listing Regulations, a
Expertise and experience in Corporate and Arbitration
separate meeting of the Independent Directors of the
matters, Commercial and Civil litigation, Merger &
Company was held on 10th February 2023. Shri Nand
Acquisitions and Joint Ventures coupled with Financial and
Gopal Khaitan was unanimously elected as Chairman of
Accounting Knowledge; Amb. Bhaswati Mukherjee – former
the meeting and all the Independent Directors of the
Ambassador of India to Netherlands, Educationist and a
Company were present at the said Meeting.
prolic Writer having rich experience on International
Relations, Human Rights and Community Service and Shri 4. FAMILIARISATION PROGRAMME FOR INDEPENDENT
Sadhu Ram Bansal, Ex Chairman & Managing Director of DIRECTORS
Corporation Bank and Executive Director of Punjab National In accordance with the provisions of Regulation 25(7) of
Bank, having wide Banking & Financial knowledge and a the Listing Regulations, the Company has been
competent Administrator. conducting various familiarisation programmes. The
The Board periodically reviews Compliance Reports of all laws details of such familiarisation programmes for
applicable to the Company and the steps taken by the Independent Directors have been disclosed on the
Company to rectify instances of non-compliances, if any. website of the Company and the weblink is
With a view to foster an improved compliance reporting and https://www.jklakshmicement.com/Familiarisation-
monitoring in the Company, the Company has a web based Sheet.pdf
legal compliance tool called “Compliance Manager” 5. PERFORMANCE EVALUATION
developed by Ernst & Young (EY), which is working effectively.
As required, the Nomination and Remuneration
Further, legal risks are monitored and mitigated through
Committee of Directors specied the manner for
regular review of changes in the regulatory framework. The
effective evaluation of performance of the Board, its
Board is also satised that plans are in place for orderly
Committees and individual Directors in accordance with
succession for appointments to the Board and to Senior
the provisions of the Act and the Listing Regulations.
management.
The Board of Directors has made formal annual
The Company has a Code of Conduct for Management Cadre
evaluation of its own performance and that of its
Staff (including Executive Directors), which is strictly adhered
committees and individual Directors (including
to. In terms of the provisions of Regulation 17(5) of the Listing
Independent Directors) pursuant to the provisions of
Regulations and contemporary practices of good Corporate
the Act and the corporate governance requirements as
Governance, a Code of Conduct was laid down by the Board
prescribed under the Listing Regulations.
for all the Board Members and Senior Management of the
Company. The said Code is available on the Company’s Performance of the Board was evaluated after seeking
website (www.jklakshmicement.com). All the Board inputs from all the Directors on the basis of the criteria
Members and Senior Management Personnel have afrmed such as adequacy of its composition and structure,
compliance with the said Code. This Report contains a effectiveness of board processes, information and
declaration to this effect signed by Smt. Vinita Singhania, functioning, etc. The performance of the committees
Vice Chairman & Managing Director. was evaluated by the Board after seeking inputs from
the committee members on the basis of criteria such as
Relationship between Directors inter-se: Shri Bharat Hari
composition of committees, terms of reference of
Singhania and Dr. Raghupati Singhania are brothers. None of
committees, effectiveness of the committee meetings,
the other Directors are related to each other within the
participation of the members of the committee in the
meaning of the Act.
meetings, etc.
The number of Equity Shares of ` 5/- each held by the Non-
The Board carried out evaluation of the performance of
executive Directors as on 31st March 2023 are: Shri Bharat
individual Directors (including Independent Directors)
Hari Singhania – 2,06,872 shares (includes 24 shares held as
on the basis of criteria such as attendance and effective
Karta of Shri Bharat Hari Singhania [HUF]), Shri Nand Gopal
participation and contributions at the meetings of the
Khaitan – 15,948 shares and Dr. Raghupati Singhania –

INTEGRATED ANNUAL REPORT 2022-23 113

 Board and its committees, exercise of his / her duties There is no other material reason for his resignation
with due & reasonable care, skill and diligence, etc. other than stated above.
In a separate meeting of the Independent Directors of 7. AUDIT COMMITTEE
the Company, performance of the Non-independent The Company has an Audit Committee of Directors
Directors, performance of the Board as a whole and since 1987. The composition and the ‘Terms of
performance of the Chairman was evaluated, taking Reference’ of the Committee are in conformity with the
into account the views of Executive and Non- executive provisions of Section 177 of the Act and Regulation 18
Directors of the Company. The Chairman of the Meeting of the Listing Regulations as amended from time
of the Independent Directors apprised the Board about to time.
the evaluation carried by it and that the Independent
Directors were fully satised in this regard. The Committee consists of four Directors, out of which
three are Independent Directors (IND) and one is Non-
6. RESIGNATION OF AN INDEPENDENT DIRECTOR executive Director (NED). Four meetings of the Audit
Dr. Kashi Nath Memani (DIN: 00020696), an Committee were held during the Financial Year ended
Independent Director had resigned from the Board of 31st March 2023.
Directors of the Company, w.e.f. 26th April 2022 due to
the personal reason including health.

Dates of the Meetings and the number of Members attended:

Date of Meetings Number of Members attended

th
18 May 2022 4
27th July 2022 4
3rd November 2022 4
10th February 2023 4

The names of the Members of the Committee and their attendance at the Meetings:
Name Status No. of Meetings attended
Shri Nand Gopal Khaitan Chairman, IND 4
Dr. Raghupati Singhania NED 4
Shri Ravi Jhunjhunwala IND 4
Shri B.V. Bhargava# IND 2
Shri Sadhu Ram Bansal$ IND 2
# Shri B.V. Bhargava ceased to be a Member of the Committee, consequent to cessation of his directorship of the Company w.e.f.
31st August 2022, on completion of his second term as an Independent Director on 30th August 2022.
th
$ Shri Sadhu Ram Bansal appointed as a Member of the Committee w.e.f. 27 July 2022.

The Audit Committee Meetings were attended by the Chief Financial Ofcer, the Head of Internal Audit, Company Secretary and
the Statutory Auditors. The Company Secretary acts as the Secretary to the Committee.
8. STAKEHOLDERS RELATIONSHIP COMMITTEE
The Company has a Stakeholders Relationship Committee at the Board level which consists of four Directors, comprising
two Non-executive Directors (NED), one Independent Director (IND) and one Executive Director (ED). The composition and
the ‘Terms of Reference’ of the Committee are in conformity with the provisions of Section 178 of the Act and Regulation 20
of the Listing Regulations as amended from time to time.

Dates of the Meetings and the number of Members attended:

Date of Meetings Number of Members attended
18th May 2022 4
27th July 2022 4
3rd November 2022 4
10th February, 2023 4

114 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

The names of the Members of the Committee and their attendance at the Meetings:
Name Status No. of Meetings attended
Dr. Raghupati Singhania Chairman, NED 4
Shri Nand Gopal Khaitan IND 4
Shri Bharat Hari Singhania NED 4
Dr. Shailendra Chouksey* ED 2
Shri Arun Kumar Shukla^ ED 2

* Dr. Shailendra Chouksey ceased to be a Member of the Committee, consequent to cessation of his directorship of the Company w.e.f.
1st August 2022, on completion of his existing term as Whole-time Director on 31st July 2022.
^ Shri Arun Kumar Shukla appointed as a Member of the Committee w.e.f. 1st August 2022.

Shri Amit Chaurasia, Company Secretary, is the Compliance Ofcer who oversees the investors’ grievances including related to
transmission of shares, non-receipt of balance sheet and dividends, etc. During the Financial Year ended 31st March 2023, the
Company received 12 complaints from the investors and the same were resolved to the satisfaction of investors.
The Board of Directors has delegated the power of transmission of shares and related matters to ‘Share Transfer Committee’. The
share transmission and requests of other related matters are attended as required. All valid requests for transmission of shares in
physical form and requests of other related matters were processed in time and there were no pending transmission of shares or
other related matters. During the Financial Year ended 31st March 2023, 17 Meetings of the Share Transfer Committee were held.
9. NOMINATION AND REMUNERATION COMMITTEE
As on 31st March 2023, the Company has a ‘Nomination and Remuneration Committee’ comprising three Directors,
including two Independent Directors (IND) and one Non-executive Director (NED). The composition and the ‘Terms of
Reference’ of the Committee are in conformity with the provisions of Section 178 of the Act and Regulation 19 of the Listing
Regulations as amended from time to time.

Dates of the Meetings and the number of Members attended:

Date of Meetings Number of Members attended
18th May 2022 4
27th July 2022 4

The names of the Members of the Committee and their attendance at the Meetings:
Name Status No. of Meetings attended
Shri Nand Gopal Khaitan Chairman, IND 2
Shri B.V.Bhargava# IND 2
Shri Ravi Jhunjhunwala IND 2
Shri Bharat Hari Singhania NED 2
# Shri B.V. Bhargava ceased to be a Member of the Committee, consequent to cessation of his directorship of the Company w.e.f.
31st August 2022, on completion of his second term as an Independent Director on 30th August 2022.

10. NOMINATION AND REMUNERATION POLICY

The Company’s Nomination and Remuneration Policy for the Directors, Key Managerial Personnel and other employees of
the Company, inter alia, species the role and the criteria for determining qualications, positive attributes and
independence of a Director as well as a policy on Board Diversity. The Policy is available at the website of the Company and
the weblink is https://www.jklakshmicement.com/NRC_Policy.pdf. The salient features of the Policy are as follows:
(i) The role of the Nomination and Remuneration Committee of Directors (the Committee) shall, include formulation of
criteria for determining qualications, positive attributes and independence of a Director and recommending to the
Board of Directors a policy relating to the nomination and remuneration for the Directors, Key Managerial Personnel
and other employees; formulation of criteria for evaluation of Independent Directors and the Board; recommendation
to the Board of Directors of all remuneration, in whatever form, payable to senior management and for every
appointment of an Independent Director, evaluation of the balance of skills, knowledge and experience on the Board
and on the basis of such evaluation, prepare a description of the role and capabilities required of an Independent
Director.

INTEGRATED ANNUAL REPORT 2022-23 115

 (ii) The Committee shall take into consideration the following criteria for recommending to the Board appointment of any
Director of the Company: (a) Qualications & experience; (b) Positive attributes like - respect for Company’s core values,
professional integrity, strategic capability with business vision, etc.; (c) In case the proposed appointee is an
Independent Director, he/she should fulll the criteria for appointment as Independent Director as per the applicable
laws & regulations; (d) The incumbent should not be disqualied for appointment as Director pursuant to the
provisions of applicable Laws.
(iii) The Committee will recommend to the Board appropriate compensation to be paid to Executive Directors subject to
the provisions of the Act, Listing Regulations and other applicable laws & regulations. The Committee shall periodically
review the compensation of such Directors in relation to other comparable companies and other relevant factors.
Proposed changes, if any, in the compensation of such Directors shall be reviewed by the Committee subject to
approval of the Board.
(iv) The Board will review the performance of the Board of Directors, its Committees and individual Director as per the
parameters and manner of performance evaluation specied by the Committee from time to time.
(v) The Committee will review from time to time Board diversity to bring in professional performance in different areas of
operations, transparency, corporate governance, nancial management, risk assessment & mitigation strategy and
human resource management in the Company. The Company will keep succession planning and board diversity in
mind in recommending any new name of Director for appointment to the Board.
(vi) The eligibility criteria for appointment of Key Managerial Personnel (KMPs) and other senior management personnel
shall vary for different positions depending upon the job description of the relevant position. In particular, the position
of KMPs shall be lled by senior personnel having relevant qualications and experience. The compensation structure
for KMPs and other senior management personnel shall be as per Company’s remuneration structure taking into
account factors such as level of experience, qualication and suitability which shall be reasonable and sufcient to
attract, retain and motivate them. The remuneration would be linked to appropriate performance benchmarks. The
remuneration may consist of xed and incentive pay reecting short and long-term performance objectives
appropriate to the working of the Company and its goals.
11. RISK MANAGEMENT COMMITTEE
As on 31st March 2023, the Risk Management Committee (RMC) consists ve Members, comprising three Directors
including two Executive Directors (ED), one Independent Director (IND) and other two are the Senior Executives (SE) of the
Company. The composition and the ‘Terms of Reference’ of the Committee are in conformity with the provisions of
Regulation 21 of the Listing Regulations, which broadly include: Formulation of Risk Management Policy (Policy) covering
identication of major internal and external risks, particularly the nancial, operational, sectoral, sustainability (ESG related
risks), information & cyber security risks, Business Continuity Plan and measures to monitor and review risk management
and mitigation plan of the Company; oversee implementation and review of the Policy and inform Board on the
effectiveness of the risk management framework, etc.

Dates of the Meetings and the number of Members attended:

Date of Meetings Number of Members attended

15th July 2022 5
th
10 January 2023 5

The names of the Members of the Committee and their attendance at the Meetings:
Name Status No. of Meetings attended
Shri N.G Khaitan Chairman, IND 2
Smt. Vinita Singhania ED 2
Dr. Shailendra Chouksey& ED 1
Shri Sushil Kumar Wali& ED -
Shri Arun Kumar Shukla! ED 2
Shri S.A. Bidkar SE 2
Shri S. Ramesh SE 1

& Dr. Shailendra Chouksey and Shri Sushil Kumar Wali ceased to be Members of the Committee, consequent to cessation of their
directorships of the Company w.e.f. 1st August 2022, on completion of their existing term as Whole-time Directors on 31st July 2022.
! Shri Arun Kumar Shukla, President of the Company, appointed as President & Director w.e.f. 1st August 2022.

116 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

In addition, the Company has an Internal Risk Management Committee since 2005, comprising President & Director and Senior
Executives which meets on a quarterly basis and evaluates the efcacy of the framework relating to risk identication and its
mitigation and keep the Board informed.
12. REMUNERATION PAID TO DIRECTORS
(i) Executive Directors: (` in Crore)
Sl. Name of Directors Particulars of Remuneration
No Salary Perquisites Others (mainly Commission Total
etc. contribution to payable
Provident Fund)
1. Smt. Vinita Singhania 8.00 2.45 0.08 11.00 21.53
Vice Chairman & Managing Director
2. Dr. Shailendra Chouksey 0.60 0.85 0.02 - 1.47
Whole-time Director (upto 31st July 2022)
3. Shri Sushil Kumar Wali 0.60 0.85 0.02 - 1.47
Whole-time Director (upto 31st July 2022)
4. Shri Arun Kumar Shukla 0.60 1.15 0.14 0.50 2.39
President & Director
(appointed w.e.f. 1st August 2022)

The Tenure of Ofce of the Managing Director and the ‘President & Director’ is ve years and three years, respectively
from their respective dates of appointment. In the case of Executive Directors, their notice period is six months.
Severance Fees for the Managing Director is remuneration for the unexpired residue of her term or three years,
whichever is shorter. Further, the Company does not have Sweat Equity/Scheme for stock option.
(ii) Non-executive Directors:
During the Financial Year 2022-23, the Company paid sitting fees aggregating to ` 33.00 Lakh to all the Non-executive
Directors (NEDs) for attending the meetings of the Board and Committees of Directors of the Company. Commission
payable to NEDs is ` 312.00 Lakh; Shri Bharat Hari Singhania, Chairman - ` 250.00 Lakh, `12.00 Lakh each to Shri Nand
Gopal Khaitan, Amb. Bhaswati Mukherjee, Dr. Raghupati Singhania and Shri Ravi Jhunjhunwala, ` 5.00 Lakh to Shri B.V.
Bhargava and ` 9.00 Lakh to Shri Sadhu Ram Bansal. The NEDs did not have any other material pecuniary relationship or
transactions vis-à-vis the Company during the year except as stated above.
13. GENERAL BODY MEETINGS
Location and time for the last three Annual General Meetings (AGMs) of the Company were:
Year Location Date Time
2019- 20 Video Conferencing/Other Audio Visual Means 28th August 2020 2.30 P.M.
2020-21 Video Conferencing/Other Audio Visual Means 26th August 2021 2.30 P.M.
th
2021-22 Video Conferencing/Other Audio Visual Means 17 August 2022 2.30 P.M.
Details of Special Resolutions passed in the previous three AGMs: Special Resolutions for: (1)Borrowing of monies of
upto ` 3,500 Crore and creation of security/charge for the borrowed funds of upto ` 3,500 Crore, were passed in the
AGM held on 28th August 2020. (2) (a) Re-appointment of Smt. Vinita Singhania as Managing Director for a period of
ve years w.e.f. 1st August 2021; (b) Continuation of directorship of Dr. Raghupati Singhania, as Non-executive, Non-
Independent Director liable to retire by rotation; (c) Adoption of new set of Articles of Association of the Company;
(d) Re-appointment of Amb. Bhaswati Mukherjee as an Independent Director for a second term of ve consecutive years
w.e.f., 28th March 2022;(e) Continuation of Shri Bharat Hari Singhania, Chairman, as Non-Executive, Non Independent
Director, liable to retire by rotation; (f) Payment of remuneration by way of commission or otherwise to Non-executive
Directors (including Independent Directors) not exceeding three percent of the annual net prots of the Company for
each nancial year, were passed in the AGM held on 26th August 2021. (3) (a) Appointment of Shri Sadhu Ram Bansal, as
an Independent Director of the Company for a term of three consecutive years with effect from 1st July 2022;
(b) Appointment of Shri Arun Kumar Shukla as ‘President & Director’ of the Company for a period of three years w.e.f.
1st August 2022; (c) Borrowing of monies of upto ` 4,000 Crore and creation of security/charge for the borrowed funds
of upto ` 4,000 Crore, were passed in the AGM held on 17th August 2022.
During the Financial Year 2022-23, no resolution was put through Postal Ballot. No Special Resolution passed last year
through Postal Ballot. There is no immediate proposal for passing any Special Resolution through Postal Ballot.

INTEGRATED ANNUAL REPORT 2022-23 117

14. DISCLOSURES
(i) Related Party Transactions: Disclosures on materially signicant related party transactions that may have potential
conict with the interests of the Company at large: None
Suitable disclosures as required by Ind AS- 24 – Related Party Transactions have been made in the Annual Report.
All the Related Party Transactions are dealt with in accordance with the provisions of the Act and Regulation 23 of the
Listing Regulations.
The Company has also formulated a policy on the materiality of Related Party Transactions and on dealing with
Related Party Transactions. This Policy is available on the website of the Company and the weblink for the same is
https://www.jklakshmicement.com/JKLC-RPT-Policy.pdf
(ii) Details of non-compliance by the Company, penalties and strictures imposed on the Company by Stock
Exchanges or SEBI or any Statutory Authority, on any matter related to capital markets, during the last three
years: There were no cases of non-compliance of any matter related to capital markets during the last three years.
(iii) Vigil Mechanism/Whistle Blower Policy: The Board of Directors of the Company at its meeting held on 25th July 2014
had established a Policy on Vigil Mechanism for the Directors and Employees of the Company to report their genuine
concerns or grievances relating to actual or suspected fraud, unethical behavior, violation of the Company’s Code of
Conduct or Ethics Policy, and any other event which would adversely affect the interests of the business of the Company.
Whistle Blowers may send their concerns/complaints to the Chairman of Audit Committee in a sealed envelope marked
condential, for appropriate action. The details of establishment of such mechanism has been also disclosed on the
website of the Company. During the year, no concerns or any fraud were reported. Further, it is afrmed that no
personnel has been denied access to the Audit Committee.
(iv) Prevention of Sexual Harassment of Women at Workplace: Your Company is sensitive to women employees at
workplace. As required under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013, the Company has a formal policy to ensure safety of women and prevention of sexual harassment and has set
up Internal Complaints Committee (ICC) at its work place(s) to redress the complaints of women employees.
During the year, there was no complaint led with ICC and no complaint pending as on 31st March 2023.
(v) Disclosure of commodity price risks and commodity hedging activities: As a part of Risk Management Policy, the
Company has identied uctuations in major commodity prices as one of the risks. To mitigate the same, the Company
undertakes commodity hedging in the form of advance procurement when the prices are perceived to be low and also
enters into advance buying contracts as strategic sourcing initiative in order to ensure availability of raw material and
prices under check.
Requisite details pursuant to SEBI Circular dated 15th November 2018: For the Financial Year 2022-23, Company’s
exposure in petcoke and coal was more than 10% of the total cost of production. Board of Directors considered Petcoke
and Coal as ‘Material’ commodities for the purpose of disclosure as required under the aforesaid
SEBI Circular.
(a) Total exposure of the Company to commodities: ` 1,227 Crore.
(b) Exposure of the Company to various commodities:

Commodity Exposure in Exposure in % of such exposure hedged through commodity derivatives

Name ` towards Quantity terms
the particular towards the
commodity particular
commodity
Domestic market International market Total
OTC Exchange OTC Exchange
Petcoke 789 Crore 3.99 Lakh MT Nil Nil Nil Nil Not Applicable
Coal 438 Crore 6.07 Lakh MT Nil Nil Nil Nil Not Applicable

(c) Commodity risks faced by the Company during the year: Nil
(vi) Details of utilization of funds raised through preferential allotment or qualied institutions placement as
specied under Regulation 32(7A): During the Financial Year ended 31st March 2023; the Company has not raised
funds through Preferential Allotment or through Qualied Institutions Placement.

118 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

(vii) Certicate: The Company has received a certicate dated 8th May 2023 from Shri Namo Narain Agarwal, Company
Secretary in Practice (FCS No: 234, CP No. 3331) that none of the Directors on the Board of JK Lakshmi Cement Ltd.
have been debarred or disqualied from being appointed or continuing as Directors of the companies by the Securities
and Exchange Board of India/Ministry of Corporate Affairs or any such statutory authority.
(viii) Subsidiary Companies: The Financial Statements, in particular, the investments made by the unlisted subsidiary
companies, if any, are reviewed by the Audit Committee.
The minutes of the Board Meetings of the unlisted subsidiary companies are placed at the Board Meeting of the
Company. A statement of all signicant transactions and arrangements entered into by the unlisted subsidiary
companies, if any, are also placed at the Board Meeting of the Company.
Udaipur Cement Works Limited (UCWL), a listed entity, incorporated on 15th March 1993 at Jaipur and currently having
registered ofce at Shripati Nagar, CFA, P.O. Dabok, Udaipur, Rajasthan-313022, is a material subsidiary as dened in
Regulation 16 of the Listing Regulations and the relevant requirements have been duly complied with. M/s Bansilal
Shah & Co., Chartered Accountants are Statutory Auditors of UCWL, re-appointed for a second term of ve
consecutive years, at the AGM held on 17th August 2019 w.e.f. the said date.
The Company has formulated a policy for determining material subsidiary as required under above Regulation and
the same is disclosed on the Company’s Website. The web link is https://www.jklakshmicement.com/Policy-for-
Determining-Material-Subsidiary.pdf
(ix) Credit Ratings
Ratings to various facilities of the Company by Rating Agencies are as under:
Sl. Facility Rated Outstanding Rating Agency Rating Assigned
No. Amount as on
(` Crore) 31.3.2023
(` Crore)
A Long Term Bank Facilities
1 Long Term Bank facilities 1,054.50 688.93 CARE Ratings Ltd. CARE AA; Stable (Double A;
Outlook Stable)
2 Long Term Bank facilities 998.99 688.93 CRISIL Ltd. CRISIL AA; Stable (Double A;
Outlook Stable)
3 Fixed Deposits 100.00 65.31 CARE Ratings Ltd. CARE AA (FD); Stable (Double
A [Fixed Deposits];
Outlook Stable)
4 Fixed Deposits 100.00 65.31 CRISIL Ltd. CRISIL FAA+ ; Stable (F Double
A : Outlook Stable)
B Short Term Bank Facilities
1 Short Term Bank Facilities 1,100.00 - CARE Ratings Ltd. CARE A1(+) (A One Plus)
2 Short Term Bank Facilities 1,100.00 - CRISIL Ltd. CRISIL A1(+) (A One Plus)
3 Commercial Paper 175.00 - CARE Ratings Ltd. CARE A1(+) (A One Plus)
4 Commercial Paper 175.00 - CRISIL Ltd. CRISIL A1(+) (A One Plus)

(x) Dividend Distribution Policy: The Company has framed a Dividend Distribution Policy as required under Regulation
43A of the Listing Regulations. The Policy has been posted on the website of the Company and the web-link is
https://www.jklakshmicement.com/Dividend-Distribution-Policy.pdf
(xi) There were no instances where the Board had not accepted any recommendation of any Committee of the Board
during the Financial Year ended 31st March 2023.
(xii) Total fees for all services paid by the Company and its subsidiaries, on a consolidated basis, to the Statutory
Auditors and all entities in the network rm/network entity of which the Statutory Auditor is a part: Details
relating to fees paid to the Statutory Auditors are given in Note 51 to the Standalone Financial Statements. No fee has
been paid by any of the subsidiaries to the said Statutory Auditors. Further, no fee was paid by any of the subsidiaries or
by the Company to any entity in the network rm/network entity of which the Statutory Auditor is a part.
(xiii) Disclosure by the Company and its subsidiaries of ‘Loans and advances in the nature of loans to rm/companies
in which Directors are interested by name and amount’: Nil.

INTEGRATED ANNUAL REPORT 2022-23 119

15. MEANS OF COMMUNICATION
Quarterly, Half-yearly and Annual nancial Results are generally published in the leading English newspapers, including, The
Economic Times, Financial Express, Business Standard, Hindustan Times, Hindu Business Line & Mint and one regional daily
newspaper namely Rajasthan Patrika (Pali), having wide circulation and promptly furnished to the Stock Exchanges for
display on their respective websites. The results are also displayed on the Company’s website – www.jklakshmicement.com.
Ofcial news releases are also available on the Company’s website.
Presentations made to Institutional Investors or to the Analysts, if any, are promptly displayed on the website of the Company.
16. GENERAL SHAREHOLDERS’ INFORMATION
(i) Registered Ofce
Jaykaypuram- 307 019, Distt. Sirohi, Rajasthan.
(ii) Annual General Meeting (AGM)
(a) Date,Time and Venue: Please refer to Notice of the AGM
(b) A brief resume and other particulars of the Director seeking appointment/ re-appointment at the aforesaid AGM is
given in the Explanatory Statement to the Notice convening the said AGM.
(iii) Financial Year: April 1 to March 31.
(iv) Financial Calendar (Tentative)
Financial Reporting
• for the quarter ending 30.06.2023
• for the half-year ending 30.09.2023 Within 45 days of the end of the quarter
• for the quarter ending 31.12.2023
• for the year ending 31.03.2024 (Audited) Within 60 days of the end of the nancial year.
• Annual General Meeting for the Financial Year Between July to September 2024
ending 2023-24
(v) Dividend Payment Date: Within three to four weeks of conclusion of AGM.
(vi) Date of Book Closure: Refer AGM Notice.
(vii) Names and address of Stock Exchanges where Equity Shares of the Company are listed: The Equity Shares of the
Company (Face Value: ` 5/- each) are listed on:
BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001.
National Stock Exchange of India Ltd., Exchange Plaza, Bandra-Kurla Complex, Bandra (East), Mumbai-400 051.
The Annual Listing Fees for the nancial year 2023-24 has been paid to both the aforesaid Stock Exchanges.
The securities of the Company are never suspended from trading.
(viii) Security Code for Company’s Equity Shares on Stock Exchanges and ISIN:
BSE – 500380 and NSE – JKLAKSHMI, ISIN: INE786A01032.
(ix) Stock Market Price Data
Months (2022-23) BSE Ltd. National Stock Exchange
(`) of India Ltd. (NSE) (`)
HIGH LOW HIGH LOW
April 2022 483.00 430.80 483.20 431.00
May 2022 505.95 368.65 505.80 366.25
June 2022 460.15 382.10 461.00 382.80
July 2022 467.00 412.10 467.00 412.00
August 2022 483.70 443.00 483.85 438.95
September 2022 683.85 464.20 684.50 465.10
October 2022 588.80 528.00 589.15 527.65
November 2022 719.05 543.60 719.10 549.05
December 2022 897.00 710.00 896.90 710.20
January 2023 824.10 701.25 824.35 702.10
February 2023 808.00 667.05 809.00 667.00
March 2023 797.00 646.40 798.40 646.35

120 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Ltd. Share Performance v/s BSE Sensex

JKLC's Closing Share Price BSE Sensex Closing

180.00
Relative Value to 100

160.00

140.00

120.00

100.00

80.00
Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23

Month & Year

(x) Distribution of Shareholding as on 31st March 2023

No. of Equity Shares No. of Equity Shares of ` 5/- each % No. of Shareholders %
1-500 58,54,629 4.97 1,15,885 97.00
501-1,000 14,79,288 1.26 1,979 1.66
1,001-5,000 25,06,695 2.13 1,193 1.00
5,001-10,000 11,43,182 0.97 156 0.13
10,001 & above 10,66,86,272 90.67 255 0.21
TOTAL 11,76,70,066 100.00 1,19,468 100.00

(xi) Share Transfer System

Pursuant to the provisions of the Listing Regulations, as amended vide SEBI’s Notications dated 30th November 2018 and
24th January 2022, read with SEBI’s Circular dated 25th January 2022, transfer of shares in physical form is not permitted.
Accordingly, transfer of shares shall be processed only in the dematerialised form with a depository. Further, transmission or
transposition of shares held in physical or dematerialised form shall also be effected only in dematerialised form. On receipt
of any request for duplicate issue / renewal / exchange / endorsement / sub-division / splitting / consolidation / transmission /
transposition of share certicate by the Company, our RTA will issue a “Letter of Conrmation” in the prescribed format to
effect issuance of shares in dematerialised form.

(xii) Dematerialisation of Shares and Liquidity

The Equity Shares of the Company are actively traded on Shares held in Physical/Demat Form
BSE and NSE. Trading in the Equity Shares of the (with NSDL & CDSL) as on 31st March 2023
Company is permitted only in dematerialised form. Physical 0.70%
Shareholders may therefore, in their own interest, CDSL
dematerialise their physical shares, with any one of the 5.24%
Depositories namely NSDL and CDSL. The ISIN for Equity
Shares of the Company for both the depositories is
INE786A01032. As on 31st March 2023, 99.30% of the
Equity Shares stand dematerialised. It may be noted that
in respect of shares held in demat form, all the requests NSDL
for nomination, change of address, ECS, Bank Particulars 94.06%
and rematerialisation etc. shall be made only to the
Depository Participant (DP) of the Shareholders.

INTEGRATED ANNUAL REPORT 2022-23 121

(xiii) Outstanding GDRs/ADRs/Warrants/Options or any Governance under the Listing Regulations, as
Convertible instruments, conversion date and likely applicable.
impact on Equity: As on 31st March 2023– NIL. (xviii) Adoption of discretionary requirements specied in
(xiv) Commodity price risk or Foreign Exchange risk and Part E of Schedule II to the Listing Regulations (a) The
Board: The Chairman of the Company is Non-executive
hedging activities: During the Financial Year ended
w.e.f. 1st October 2021.The Members at the Annual
31st March 2023, the Company has managed the General Meeting held on 26th August 2021 have
foreign exchange risk and hedged to the extent approved maintenance of Chairman’s Ofce pursuant
considered necessary through forward contracts. to Regulation 27(1) of the Listing Regulations;
(xv) Plant and AAC Block Locations: (b) Shareholder Rights: Half-yearly and other
q u a r t e r l y  n a n c i a l r es u l t s a r e p u b l i s h e d i n
(1) JK Lakshmi Cement
newspapers and uploaded on Company’s website
Jaykaypuram, www.jklakshmicement.com. At present, the half yearly
Dist. Sirohi - 307 019 (Rajasthan) nancial performance and the summary of the
(2) JK Lakshmi Cement signicant events in last six months are not sent to each
household of Shareholders; (c) Modied opinion(s) in
Malpuri Khurd, Ahiwara,
audit report: The Company has had a regime of
District Durg-491001 (Chhattisgarh) nancial statements with unmodied opinion of
(3) JK Lakshmi Cement Auditors; (d) Separate posts of Chairperson and the
Motibhoyan, Kalol Managing Director or the Chief Executive Ofcer:
District Gandhi Nagar – 382010 (Gujarat) Shri Bharat Hari Singhania, Chairman, is a Non-
Executive Director and is not related to the Managing
(4) JK Lakshmi Cement Director of the Company; (e) Reporting of Internal
& Autoclaved Aerated Concrete (AAC) Block Unit Auditor: The Internal Auditor of the Company submits
Village Bajitpur, P.O. Jhamri, his Internal Audit Report to the Audit Committee on
District Jhajjar-124507 (Haryana) quarterly basis.
(5) JK Lakshmi Cement (xix) The Company has complied with all the applicable
Village Dastan, Taluka Palsana, requirements specied in Regulations 17 to 27 and
District Surat-394310 (Gujarat) clauses (b) to (i) of sub–regulation (2) of Regulation 46
(6) JK Lakshmi Cement of the Listing Regulations.
Village Ghantikhal, Radhashyampur, (xx) (a) Transfer of Shares to IEPF Authority:
P. O. Khuntuni, District Cuttack-754 297 (Odisha)
In accordance with the Section 124(6) of the Act read
(7) JK Lakshmi Cement with the Investor Education and Protection Fund
Autoclaved Aerated Concrete (AAC) Block Unit Authority (Accounting, Audit, Transfer and Refund)
Jawn, Anup Shar Road, Village Nagaula, Rules, 2016, as amended (IEPFA Rules), the Company
Aligarh - 202126 has transferred 66,043 Equity Shares to the demat
account of Investor Education and Protection Fund
(xvi) Address for correspondence regarding share
Authority (IEPF) Authority, during the year. The details
related matters
of such Shareholders are available on the Website of
(1) JK Lakshmi Cement Limited the Company at www.jklakshmicement.com. The said
Secretarial Department, shares can be claimed back by the Shareholders from
Gulab Bhawan, 3rd Floor (Rear Block), the IEPF Authority as per the procedure laid down in the
6A, Bahadur Shah Zafar Marg, IEPFA Rules.
New Delhi- 110 002
(b) Information in terms of Schedule V (F) of the Listing
Ph:(011) 6820 1862
Regulations:
Contact Person: Shri Amit Chaurasia
(E-mail: jklc.investors@jkmail.com) The Company does not have any share in the demat
suspense account or unclaimed suspense account.
(2) Registrar & Share Transfer Agent (RTA) –
MCS Share Transfer Agent Ltd. 17. DECLARATION
F-65, First Floor, Okhla Industrial Area,
This is to conrm that for the Financial Year ended
Phase – I, New Delhi – 110 020,
31 st March 2023, all the Directors and Senior
Ph. (011) 41406149-50,
Management Personnel of the Company have afrmed
Fax No. (011) 41709881
compliance with the Code of Conduct for Directors and
E-mail: admin@mcsregistrars.com
Senior Management adopted by the Board.
Contact Person: Shri Ajay Dalal
E-mail: ajay.dalal@mcsregistrars.com
(xvii) This Corporate Governance Report of the Company for
the Financial Year ended 31st March 2023 is in Vinita Singhania
compliance with the requirements of Corporate Vice Chairman & Managing Director

122 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

AUDITORS' CERTIFICATE ON CORPORATE GOVERNANCE

To,
The Members of
JK Lakshmi Cement Limited
New Delhi

We have examined the compliance of conditions of Corporate Governance by JK Lakshmi Cement Limited (“the Company”), as
stipulated under Regulations 17 to 27, clauses (b) to (i) of sub regulation (2) of Regulation 46 and para C, D and E of Schedule V of
the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing
Regulations”) for the nancial year ended March 31, 2023.

Management’s Responsibility for compliance with the conditions of Listing Regulations

The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited to
the review of procedures and implementation thereof adopted by the Company for ensuring compliance of the conditions of
Corporate Governance as stipulated in the said Regulations. This certicate is neither an assurance as to the future viability of the
Company nor of the efcacy or effectiveness with which the management has conducted the affairs of the Company.

Auditors’ Responsibility

We conducted our examination in accordance with the Guidance Note on Reports or Certicates for Special Purposes issued by
the Institute of Chartered Accountants of India. The Guidance Note requires that we comply with the ethical requirements of the
Code of Ethics issued by the Institute of Chartered Accountants of India. We have complied with the relevant applicable
requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical
Financial Information, and Other Assurance and Related Services Engagements.

Opinion

In our opinion, and to the best of our information and according to explanations given to us, we certify that the Company has
complied with the conditions of Corporate Governance as stipulated in the SEBI Listing Regulations for the nancial year ended
March 31, 2023.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efciency or
effectiveness with which the Management has conducted the affairs of the Company.

Restriction on use

The certicate is addressed and provided to the members of the Company solely for the purpose to enable the Company to comply
with the requirement of the Listing Regulations, and it should not be used by any other person or for any other purpose.
Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this
certicate is shown or into whose hands it may come without our prior consent in writing.

For S. S. KOTHARI MEHTA & COMPANY

Chartered Accountants
FRN - 000756N

Place: New Delhi Sunil Wahal

Date: 19th May 2023 Partner
UDIN: 23087294BGTGTV6657 Membership No. 087294

INTEGRATED ANNUAL REPORT 2022-23 123

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
SECTION A: GENERAL DISCLOSURES
I. Details of the listed entity
1. Corporate Identity Number (CIN) of the Listed Entity : L74999RJ1938PLC019511
2. Name of the Listed Entity : JK Lakshmi Cement Ltd.
3. Year of Incorporation : 1938
4. Registered Ofce Address : Jaykaypuram, Distt.: Sirohi- 307 019, Rajasthan
5. Corporate Address : Nehru house, 4, Bahadur Shah Zafar Marg,
New Delhi-110 002
6. E-mail : lakshmi_cement@lc.jkmail.com
7. Telephone : Ph. No.: 02971-244409/244410
Fax No.: 02971-244417
8. Website : www.jklakshmicement.com
9. Financial Year for which reporting is being done : 1st April 2022- 31st March 2023
10. Name of the Stock Exchange(s) where shares are listed : BSE Ltd.
National Stock Exchange of India Ltd.
11. Paid-up Capital : ` 58.85 Crores
12. Name and contact details (telephone, email address) Shri Arun Kumar Shukla
of the person who may be contacted in case of any President & Director
queries on the BRSR report : Tel. Number - +91 11 68201877
E-mail id : arun.shukla@jkmail.com
13. Reporting boundary - Are the disclosures under this : The disclosures under this Report are made on a
report made on a standalone basis (i.e. only for the standalone basis.
entity) or on a consolidated basis (i.e. for the entity
and all the entities which form a part of its
consolidated nancial statements, taken together)

II. Products / services

14. Details of business activities (accounting for 90% of the turnover):

S. No. Description of Main Activity Description of Business Activity % of Turnover of the entity
1. Cement Manufacturing Cement Manufacturing & Selling 92%

15. Products / Services sold by the entity (accounting for 90% of the entity’s Turnover):

S. No. Product/Service NIC Code % of total Turnover contributed

1. Cement & Clinker 2394 92%

III Operations
16. Number of locations where plants and/or operations / ofces of the entity are situated:

Location Number of plants Number of ofces Total

National 2 Integrated Cement Plants & 4 Grinding Units 28 34
International - - -

124 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

17. Markets served by the entity:

a. Number of locations
Locations Number
National (No. of States) 18 States & UTs
International (No. of Countries) One (Only India)

b. What is the contribution of exports as a percentage of the total turnover of the entity?
Not applicable as the Company is not exporting cement.
c. A brief on types of customers
Trade customers- IHB- Individual home builders who built their home on a plot of land
Non-Trade- Institutional customers -entities who buy cement from the Company for various housing and commercial /
government projects.

IV. Employees
18. Details as at the end of Financial Year:
a. Employees and workers (including differently abled):
S. No. Particulars Total Male Female
(A) No.(B) %(B/A) No.(C) %(C/A)
EMPLOYEES
1. Permanent (D) 1476 1461 99% 15 1%
2. Other than Permanent (E) 0 0 0 0 0
3. Total employees (D+E) 1476 1461 99% 15 1%
WORKERS
4. Permanent (F) 223 223 100% 0 0
5. Other than Permanent (G) 2069 1871 90% 198 10%
6. Total workers (F+G) 2292 2094 91% 198 9%

b. Differently abled Employees and Workers:

S. No. Particulars Total Male Female
(A) No.(B) %(B/A) No.(C) %(C/A)
DIFFERENTLY ABLED EMPLOYEES
1. Permanent(D) 0 0 0 0 0
2. Other than Permanent (E) 0 0 0 0 0
3. Total differently abled 0 0 0 0 0
employees (D+E)
DIFFERENTLY ABLED WORKERS
4. Permanent(F) 0 0 0 0 0
5. Other than permanent (G) 0 0 0 0 0
6. Total differently abled workers 0 0 0 0 0
(F+G)

INTEGRATED ANNUAL REPORT 2022-23 125

19. Participation / Inclusion / Representation of women

Total (A) No. and percentage of Females

No.(B) %(B/A)
Board of Directors 8 2 25%
Key Management Personnel * 4 1 25%
* Including two Executive Directors

20. Turnover rate for permanent employees and workers

(Disclose trends for the past 3 years)

FY 2022-23 FY 2021-22 FY 2020-21

(Turnover rate in (Turnover rate in (Turnover rate in the year
current FY) previous FY) prior to the previous FY)
Male Female Total Male Female Total Male Female Total
Permanent Employees 9.7% 0.3% 10.0% 10.2% 0 10.2% 10.3% 0.4% 10.7%
Permanent Workers 1.28% 0 1.28% 0 0 0 0 0 0

V. Holding, Subsidiary and Associate Companies (including joint ventures)

21. (a) Names of holding / subsidiary / associate companies / joint ventures

S. Name of the holding* / Indicate whether % of shares Does the entity indicated at
No. subsidiary /associate companies / holding*/ Subsidiary/ held by column A, participate in the
joint ventures (A) Associate/ listed Business Responsibility
Joint Venture entity initiatives of the listed
entity? Yes/No)
1. Hansdeep Industries & Trading Subsidiary 100% No
Company Ltd.
2. Udaipur Cement Works Ltd. Subsidiary Equity -72.54% No
3. Ram Kanta Properties Pvt. Ltd. Subsidiary 100%^ No
4. Dwarkesh Energy Ltd. Associate Equity – 35% No

* The Company does not have any holding company; ^ Wholly Owned Subsidiary of Hansdeep Industries & Trading Company Ltd.

VI. CSRDetails
22. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: (Yes/No): Yes
(ii) Turnover (in `) 6071.05 Crores
(iii) Net worth (in `) 2723.74 Crores

VII. Transparency and Disclosures Compliances

23. Complaints / Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible
Business Conduct:

126 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

Stakeholder group Grievance FY 2022-23 FY 2021-22

from whom Redressal Current Financial Year Previous Financial Year
complaint is received Mechanism in
Place (Yes/No)
(If Yes, then Number of Number of Rem- Number of Number of Remarks
provide web-link complaints complaints arks complaints complaints
for grievance led during pending led during pending
redress policy) the year resolution the year resolution
at close at close
of the year of the year
Communities NIL NIL NIL NIL NIL
Investors (other than NIL NIL NIL NIL NIL
shareholders)
Shareholders Yes** 12 0 ** 10 1 **
www.jklaksh (Pending
micement.com Complaint
resolved)
Employees and workers NIL NIL NIL NIL NIL NIL
Customers 178 178 NIL All 173 NIL All
Resol Resolved
ved
Value Chain Partners NIL NIL NIL NIL NIL
Other – Community NIL NIL NIL NIL NIL NIL

** The Company has a dedicated Manager level employee who regularly keeps a track of the complaints received from shareholders and promptly
responds (say 3 to 5 days) to the Complainant to ensure that the complaint is resolved immediately to the satisfaction of the Shareholder without
any delay. All the complaints of shareholders received during a quarter, if any and actions taken thereon are placed before a Board level
Committee, constituted under Regulation 20 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 178 of
the Companies Act, 2013.

24. Over view of the entity’s material responsible business conduct issues

Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social
matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or
mitigate the risk along-with its nancial implications, as per the following format

The Company has identied various risks on key material aspects that relate to all dimensions of sustainability to mitigate and
create opportunity through innovation and consistency. Some key risks identied out of material aspects are given below:

S. Material Indicate Rationale for identifying the In case of risk, Financial

No. issue whether risk/ opportunity approach to implications of
identied risk or adapt or the risk or
opportunity mitigate opportunity
(R/O) (Indicate positive
or negative
implications)
1. Economic Value R Poor business performance affects To be among the Negative
& Business employee morale, productivity and top ve EBDITA
Performance innovation. It further hampers the players in the
reputation of the Company and implies industry
reduced business opportunities for an
enterprise, meaning lower dividends for
shareholders and increased cost of capital.

INTEGRATED ANNUAL REPORT 2022-23 127

S. Material Indicate Rationale for identifying the In case of risk, Financial
No. issue whether risk/ opportunity approach to implications of
identied risk or adapt or the risk or
opportunity mitigate opportunity
(R/O) (Indicate positive
or negative
implications)
2. Customer R Lack of initiatives towards sustaining Company has Negative
Satisfaction customer satisfaction hampers customer key focus on the
loyalty, leading to reduced market customer
reputation and lower revenue from sales. centricity and
robust mechanism
to resolve their
grievances
3. Integrity and R Unethical acts by an enterprise can bring Policies in place. Negative
Transparency about substantial reputational damage to
a Company, hence affecting its future
earnings besides regulatory penalties.
4. Compliance to R Sanctions and nancial penalties may be Strong internal Negative
Regulations imposed on an enterprise by the regulatory compliance system
authorities for acts of non-compliance. in place
5. Human Capital R Lack of human capital development Various initiatives Negative
Development initiatives will lead to reduced employee
productivity and poor turn-around time,
leading to weak performance at the
operational level. Also hampers Company’s
overall performance and progress towards
its strategic targets, leading to decline
in revenues.
6. Community R Lack of community development initiatives Strong CSR Negative
Development can bring about hostility and unrest among initiatives
the local community, thus endangering the
Company’s social license to operate.
7. Occupational R Insufcient investment towards ensuring Maintain Zero Negative
Health and occupational health and safety of employees Loss Time Injury
Safety has a direct negative impact on labour Frequency Rate
costs through lower productivity. Lower (LTIFR)
performance not only poses threat to a
Company’s reputation and staff morale,
but also results in increased operating
costs in the form of nes and other
contingent liabilities.
8. Energy and R Having a poor track record in energy Increased usage Negative
Emissions consumption and emissions management of solar and other
is likely to experience reduced trust from renewable source
investors and stakeholders. The regulatory of energy
authorities may impose penalties on the
Company due to poor energy and
emissions performance.

128 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

S. Material Indicate Rationale for identifying the In case of risk, Financial

No. issue whether risk/ opportunity approach to implications of
identied risk or adapt or the risk or
opportunity mitigate opportunity
(R/O) (Indicate positive
or negative
implications)
9. Water R Lack of water management initiatives will Various water Negative
Management lead to depletion of water resources in an stewardship
area and impacting social and projects
biodiversity value.
10. Resource R Poor resource management will have Enhanced use of Negative
Conservation impact on Company’s long lasting Alternative Fuel
existence and performance, it will also and Raw Material
lead to resource depletion. (AFR) and pro-
active resource
conservation
initiatives
11. Sustainable O Build sustainable Supply chain and Focus on Positive
Supply chain mitigate disruption and reputational sustainable
partners risks sourcing

SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting the
NGRBC Principles and Core Elements.
Disclosure P P P P P P P P P
Questions 1 2 3 4 5 6 7 8 9
Policy and management processes
1. a. Whether your entity’s policy / policies cover each principle Yes Yes Yes Yes Yes Yes Yes Yes Yes
and its core elements of the NGRBCs. (Yes/No)
b. Has the policy been approved by the Board? (Yes/No) Yes Yes Yes Yes Yes Yes Yes Yes Yes
NOTE: These policies, have been signed approved by
President & Director of the Company.
c. Web Link of the Policies, if available It has been the Company’s practice to upload all the
policies on the intranet for the information and
implementation by internal stakeholders. The Code
of Conduct for Board Members and Senior
Management and other relevant policies are available
on the website of the Company at
https://www.jklakshmicement.com/code-of-conduct/
and https://www.jklakshmicement.com/companies-
policies-other-information/
Weblink of ESG/ sustainability policy is below-
https://www.jklakshmicement.com/esg-policies/
2. Whether the entity has translated the policy into procedures. Yes Yes Yes Yes Yes Yes Yes Yes Yes
(Yes /No)
3. Do the enlisted policies extend to your value chain partners? Yes Yes Yes Yes Yes Yes Yes Yes Yes
(Yes/No)
4. Name of the national and international codes / certications / The policies are based on all the above prescribed
labels / standards (e.g. Forest Stewardship Council, Fair trade, principles. The key focus of these policies is to follow
Rainforest Alliance, Trustea) standards (e.g. SA8000, OHSAS, the spirit of national and international standards like
ISO, BIS) adopted by your entity and mapped to each principle. ISO45001; UNGC Guidelines; GRI Standards; WBCSD
and others wherever applicable.

INTEGRATED ANNUAL REPORT 2022-23 129

 P1- Quality management (ISO 9001:2015)
P2- Quality management (ISO 9001:2015); Energy
management (ISO50001:2018); Occupational
Health and Safety management (ISO45001:2018);
Environment Management (ISO14001:2015) NABL
Lab (ISO/IEC 17025) PPC [IS 1489 (PART 2)];
Composite (IS 16415: 2015); Slag (IS 455: 2015);
OPC (IS 269:2015) Green certication
P3- Quality management (ISO 9001:2015) Energy
management (ISO50001:2018) ;Occupational
Health and Safety management (ISO45001:2018);
Environment Management (ISO14001:2015)
P4- Quality Management (ISO 9001:2015)
P5- Quality Management (ISO 9001:2015)
P6- Energy management (ISO50001:2018) ;
Occupational Health and Safety Management
(ISO45001:2018)
P7- Quality Management (ISO 9001:2015)
P8- Quality Management (ISO 9001:2015); Energy
Management (ISO50001:2018); Occupational
Health and Safety management (ISO45001:2018);
Environment Management (ISO14001:2015)
P9- Quality management (ISO 9001:2015)
5. Specic commitments, goals and targets set by the entity with Goals and targets are set annually which are derived
dened timelines, if any. from Company Strategic Business Plan. Specic
sustainability targets have been identied and the
timelines for achieving carbon neutrality are being
dened. All other specic targets – long term and
short term -are periodically reviewed and approved
by management.
6. Performance of the entity against the specic commitments, For all identied KPIs, performance reviews are
goals and targets along-with reasons in case the same are conducted on annual basis by the top management
not met. in Business Review Meetings.
Governance, leadership and oversight
7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and
achievements (listed entity has exibility regarding the placement of this disclosure)
Being a responsible cement manufacturing Company, we at JK Lakshmi Cement Ltd. (JKLC) are committed for the BRSR and
ESG principles, inclusive growth, UN Sustainable Development Goals and other commitments of the nation. We are
committed to continuously strive for improving our ESG performance by not only mitigating social and environmental
negative impacts but by creating positive externalities through our business operations.
8. Details of the highest authority responsible for implementation Shri Arun Kumar Shukla
and oversight of the Business Responsibility policy(ies). President & Director
9. Does the entity have a specied Committee of the Board / Please refer response given at Question No. 8.
Director responsible for decision making on sustainability related
issues? (Yes / No). If yes, provide details.

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 Integrated Report Statutory Report Financial Statement

10. Details of Review of NGRBCs by the Company:

Subject for Review Indicate whether review was undertaken Frequency
by Director/Committee of the Board/ (Annually/Halfyearly/Quarterly/
Any other Committee Any other – please specify)
P P P P P P P P P P P P P P P P P P
1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
Performance against above Performance review of selected key KPIs Annually
policies and follow up action are conducted by President & Director at
the dened frequency.
Compliance with statutory Senior leadership team Quarterly
requirements of relevance
to the principles and
rectication of any
non-compliances
11. Has the entity carried out independent assessment / evaluation of the P P P P P P P P P
working of its policies by an external agency? (Yes/No). If yes, provide 1 2 3 4 5 6 7 8 9
name of the agency. Independent assessment has not been done
yet as we have been in the process of policy
formation, deployment and its
dissemination. This will be planned at an
appropriate time. However, the respective
functions evaluate the policy on regular
basis internally based on the inputs
received from stakeholders.

12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated: Not Applicable (NA)
Questions P P P P P P P P P
1 2 3 1 5 6 7 8 9
The entity does not consider the Principles material to its business - - - - - - - - -
(Yes/No)
The entity is not at a stage where it is in a position to formulate and - - - - - - - - -
implement the policies on specied principles (Yes/No)
The entity does not have the nancial or/ human and technical - - - - - - - - -
resources available for the task (Yes/No)
It is planned to be done in the next nancial year (Yes/No) - - - - - - - - -
Any other reason (please specify) - - - - - - - - -

SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE

This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core Elements with key
processes and decisions. The information sought is categorized as “Essential” and “Leadership”. While the essential indicators are
expected to be disclosed by every entity that is mandated to le this report, the leadership indicators may be voluntarily disclosed
by entities which aspire to progress to a higher level in their quest to be socially, environmentally and ethically responsible.

PRINCIPLE 1: Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent
and Accountable.
Essential Indicators
1. Percentage coverage by training and awareness programmes on any of the Principles during the nancial year:

INTEGRATED ANNUAL REPORT 2022-23 131

Segment Total number of Topics/principles covered under the training and % age of persons in
training and its impact respective category
awareness covered by the
programmes held awareness programmes
Board of 2 (i) Updates on Sustainability initiatives including CSR 100%
Directors / initiatives undertaken.
Key Managerial 4 (ii) Updates on Whistle Blower Mechanism and Code of 100%
Personnel Conduct for Members of Board and Senior Management.
The Board members has been updated with the above
and the underlying principles thereby adding values.
Employees 271 Ethics; code of conduct; safety; JKLC core values; vision; 100%
other than mission; competencies; Emergency plan; ERP; waste
BOD and KMPs management; 5S; Sustainability; Whistle Blower;
Prevention of Sexual Harassment at workplace and others
Workers 3,265 Safety trainings; H & S; Emergency; Hazards; Waste 100%
Management; First Aid; Mission; Core Values and others

2. Details of nes / penalties / punishment / award / compounding fees / settlement amount paid in proceedings (by the
entity or by directors / KMPs) with regulators / law enforcement agencies / judicial institutions, in the nancial year, in
the following format (Note: the entity shall make disclosures on the basis of materiality as specied in Regulation 30
of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):

Monetary
NGRBC Name of the Amount Brief of the Case Has an
Principle regulatory/ (In `) Appeal
enforcement been led
Penalty/Fine Principle 9 Competition 6.55 Competition Commission of India (CCI) vide Yes
Commission Crores its order dated 19th January 2017 had imposed
of India a penalty on certain cement companies
including a penalty of ` 6.55 Crores on the
Company pursuant to a reference led by the
Government of Haryana. The Company has
led an appeal with Competition Appellate
Tribunal (COMPAT) against the said order.
COMPAT has granted a stay on CCI’s order.
After the merger of COMPAT with National
Company Law Appellate Tribunal (NCLAT), the
Company’s case also stands transferred to NCLAT.
Based on the legal opinion, the Company
believes that it has a good case in the matter.
Settlement - - - - -
Compounding - - - - -
fee
Non-Monetary
NGRBC Name of the Amount Brief of the Case Has an
Principle regulatory/ (In INR) Appeal
enforcement been led
Imprisonment - - - - -
Punishment - - - - -

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 Integrated Report Statutory Report Financial Statement

3. Of the instances disclosed in Question 2 above, details of the Appeal / Revision preferred in cases where monetary or
non-monetary action has been appealed.
Case details Name of the regulatory / enforcement agencies/ Judicial institutions
The Competition Commission of India All the seven companies led appeal before Competition Appellate Tribunal
nally vide order dated 19-1-2017 held (now transferred to National Company Law Appellate Tribunal). JK Lakshmi
seven cement companies guilty of bid Cement was rst to le the appeal bearing no.- Transfer Appeal (Appellate
rigging and imposed ne of Rs. 205.73 Tribunal) (Competition) No 39 of 2017 (earlier appeal no. 2 of 2017 before
in aggregate on them out of which COMPAT). The appeal is yet to be heard and nally disposed.
JKLC alone has been penalized for
` 6.55 crores. We are ethically, and socially responsible Company and we very strongly
reiterate that we have never been a part of bid rigging or any other
wrongdoing in our business practices and would like to reassure to all our
stakeholders that the Company has never indulged or was part of any bid
rigging or has undertaken any unfair practices.
4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a
web-link to the policy.
Yes, we do have a policy. In addition, the required steps to ensure proper reporting of such incidents have been given in Vigil
Mechanism /Whistle Blower Policy.
https://www.jklakshmicement.com/wp-content/uploads/2023/05/Anti-Bribery-Policy.pdf
https://www.jklakshmicement.com/Vigil-Mechanism.pdf
5. Number of Directors / KMPs /employees / workers against whom disciplinary action was taken by any law
enforcement agency for the charges of bribery /corruption:

FY 2022-23 (Current Financial Year) FY2021-22 (Previous Financial Year)

Directors Nil Nil
KMPs Nil Nil
Employees Nil Nil
Workers Nil Nil
6. Details of complaints with regard to conict of interest:
FY 2022-23 FY2021-22
(Current Financial Year) (Previous Financial Year)
Number Remarks Number Remarks
Number of complaints received in relation to NIL N.A. NIL N.A.
issues of Conict of Interest of the Directors
Number of complaints received in relation to NIL N.A. NIL N.A.
issues of Conict of Interest of the KMPs
7. Provide details of any corrective action taken or underway on issues related to nes /penalties / action taken by
regulators / law enforcement agencies / judicial institutions, on cases of corruption and conicts of interest.
NIL
Leadership Indicators
1. Awareness programmes conducted for value chain partners on any of the Principles during the nancial year:
Total number of awareness Topics/ principles covered % age of value chain partners covered (by value of
programmes held under the training business done with such partners) under the awareness
programmes
Nil Nil Nil
Being a responsible organization we have been discussing and creating awareness among our stakeholders through formal
and informal channels. We plan to conduct structured trainings and awareness programs for our value chain partners in
coming years.
2. Does the entity have processes in place to avoid/ manage conict of interests involving members of the Board?
(Yes/No) If Yes, provide details of the same.
Yes, we do have a process in place which is governed by the “Code of Conduct for Members of the Board and Senior
Management” of JK Lakshmi Cement Ltd. Web link to the same is: https://www.jklakshmicement.com/code-of-conduct/

INTEGRATED ANNUAL REPORT 2022-23 133

PRINCIPLE 2: Businesses should provide goods and services in a manner that is sustainable and safe.
Essential Indicators
1. Percentage of R&D and capital expenditure (capex) investments in specic technologies to improve the
environmental and social impacts of product and processes to total R&D and capex investments made by the entity,
respectively.
FY 2022-23 FY 2021-22 Details of improvement in environment
Current Financial Year Previous Financial Year and social impacts
R & D (`) 7.63 Crores 7.43 Crores Company's R & D is engaged in developing
innovative green products, process
improvement in cement manufacture,
reduction in carbon emission and developing
alternative building materials.
Capex (`) 74.45 Crores 160.82 Crores
2. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No)
Yes, the Company has a sustainable sourcing policy in place. We have digital vendor registration process in place which
mandates vendors to provide information while registration on sustainability aspects like “Social accountability, ESG
aspects, wastes management, ISO’s registration, etc.”. On successful completion of survey, vendors can only proceed
further for registration.
b. If yes, what percentage of inputs were sourced sustainably?
70% of input Raw Material sourced (i.e., Flyash / Gypsum except natural / Slag etc.), successfully eliminating the similar
amount of requirement of virgin natural resource of raw material required for production of cement is attributable as
industrial waste sustainable sourced materials.
3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life,
for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.
We believe in "waste to wealth” and from the very beginning of the project, we adopted the “Reduce -Reuse – Recycle (3Rs) "
principle.
• JKLC as brand owner has applied for registration against Extended Producer Responsibility (EPR) under Plastic Waste
Management Rules, 2016 & as amended. As per EPR guidelines, we have achieved 25% target for FY 2021-22 and 70%
target for FY 2022-23. The major product of JKLC is Cement, which is packed in cement bags. In most of the cases these bags
are reused for construction purpose as well as for storing other items like grains, fodder etc. Plastic bags once discarded are
also recycled by waste recyclers to make new bags. JKLC utilizes waste in form of Refused Derived Fuels (RDFs) in Co-
processing Cement Kiln. Furthermore, we have also met our targets with the help of CPCB authorized recyclers.
• Ours is a Cement product so there is no E-waste generated from the manufacturing process. However, the only E-waste
generated is from the ofce operations and whatever E-Waste generated is being sold to the CPCB registered recyclers.
• During cement manufacturing, only used oil generated from operational machinery (hazardous waste) from our plant.
Used oil is stored at identied best isolation locations in plant boundary which is sold to SPCB/CPCB authorized recyclers.
Moreover, we are utilizing hazardous waste as an alternative fuel and raw materials (AFR) in our cement manufacturing
process, generated as waste/byproduct from other industries.
• We have adopted Vermi compost process in our plant to convert organic waste into nutrient rich Vermi compost. We
have also used 5 years old lab tested cemented cubes to make walkway. We follow paperless processes through
adoption of S4HANA SAP system in our work to reduce generation of paper waste. We have adopted a closed loop
cement manufacturing process. If any case whatever waste generated from the manufacturing process, it is being
utilized in cement manufacturing process.
4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes/No). If yes, whether the
waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control
Boards? If not, provide steps taken to address the same.
Yes. Extended Producer Responsibility (EPR ) is applicable to us. We have submitted the waste collection plan, which is in line
with the EPR plan, to concerned State pollution Control Boards and Central Pollution Control Board. As per EPR guidelines,
we have achieved 25% target for FY 2021-22 and 70% target for FY 2022-23.

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 Integrated Report Statutory Report Financial Statement

Leadership Indicators
1. Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for manufacturing
industry) or for its services (for service industry)? If yes, provide details in the following format?
NIC Name of % of total Boundary for which Whether conducted Results communicated in
Code Product / Turnover the Life Cycle Perspective / by independent public domain (Yes/No)
Service contributed Assessment was conducted external agency If yes, provide the
(Yes/No) web-link.
We have planned for LCA of our products in the coming years.

2. If there are any signicant social or environmental concerns and/or risks arising from production or disposal of your
products / services, as identied in the Life Cycle Perspective / Assessments (LCA) or through any other means, briey
describe the same along-with action taken to mitigate the same.
Name of Product/ Service Description of the risk/ concern Action Taken
NA NA NA

3. Percentage of recycled or reused in put material to total material (by value) used in production (for manufacturing
industry) or providing services (for service industry).
Indicate input material Recycled or re-used input material to total material
FY 2022-23 FY 2021-22
Current Financial Year Previous Financial Year
Chemical Gypsum /Gypsum Waste 4% 4%
Fly ash 18% 20%
Red Ochre 1% 2%
Marble Waste 1% 1%
Calcite 0% 0%
Iron Slage 2% 2%
Granulated Slag 1% 1%
FF Slag 0% 0%
Block Dust/Flyash -Rubber 0% 0%

4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and
safely disposed, as per the following format:
FY 2022-23 FY 2021-22
Current Financial Year Previous Financial Year
Re-used Recycled Safely disposed Re-used Recycled Safely Disposed
Plastics (including packaging) NA NA NA NA NA NA
E-waste NA NA NA NA NA NA
Hazardous waste NA NA NA NA NA NA
Other waste NA NA NA NA NA NA

Note: - JKLC as brand owner manufacture Cement and Clinker where only Polypropylene (PP) bags are being used to pack cement
products. We do not reclaim the same material used in our product packaging material but through CPCB authorized recyclers,
we recycle the plastic packaging materials as per the guidelines of Extended Producer Responsibility (EPR ). EPR is applicable to us.
As per EPR guidelines, we have achieved 25% target for FY 2021-22 and 70% target for FY 2022-23.

INTEGRATED ANNUAL REPORT 2022-23 135

5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category.
Indicate Product Category Reclaimed products and their packaging material as % of total products sold
in respective category
Cement and PP Bags 25% ( FY 2021-22)
70% ( FY 2022-23)
Note: - JKLC as brand owner manufacture Cement and Clinker where only Polypropylene (PP) bags are being used to pack cement
products. We do not reclaim the same material used in our product packaging material but through CPCB authorized recyclers,
we recycle the plastic packaging materials as per the guidelines of Extended Producer Responsibility(EPR). EPR is applicable to us.
As per EPR guidelines, we have achieved 25% target for FY 2021-22 and 70% target for FY 2022-23.

PRINCIPLE 3: Businesses should respect and promote the well-beingofallemployees, including those in their value chains
Essential Indicators
1. a. Details of measures for the well-being of employees:
% of employees covered by
Category Total Health Accident Maternity Paternity Day Care
(A) insurance insurance benets Benets facilities
Number(B) %(B /A) Number(C) %(C/A) Number(D) %(D/A) Number(E) % (E /A) Number(F) % (F /A)
Permanent employees
Male 1461 1461 100% 1461 100% NA NA NA NA NA NA
Female 15 15 100% 15 100% 15 100% NA NA 15 100%
Total 1476 1476 100% 1476 100% 15 1% NA NA 15 1%
Other than Permanent employees
Male 0 0 0 0 0 0 0 0 0 0 0
Female 0 0 0 0 0 0 0 0 0 0 0
Total 0 0 0 0 0 0 0 0 0 0 0

b. Details of measures for the well-being of workers:

% of workers covered by
Category Total Health Accident Maternity Paternity Day Care
(A) insurance insurance benets Benets facilities
Number(B) %(B /A) Number(C) %(C/A) Number(D) %(D/A) Number(E) % (E /A) Number(F) % (F /A)
Permanent workers
Male 223 223 100% 223 100% NA NA NA NA NA NA
Female 0 NA NA NA NA NA NA NA NA NA NA
Total 223 223 100% 223 100% NA NA NA NA NA NA
Other than Permanent workers
Male 1871 1871 100% 1871 100% NA NA NA NA NA NA
Female 198 198 100% 198 100% 198 100% NA NA 198 100%
Total 2069 2069 100% 2069 100% 198 10% NA NA 198 10%

2. Details of retirement benets, for Current FY and Previous Financial Year.

FY 2022-23 FY 2021-22
Current Financial Year Previous Financial Year
No. of employees No. of workers Deducted and No. of employees No. of workers Deducted and
Benets covered as a % of covered as a % deposited with covered as a % of covered as a % deposited with
total employees of total workers the authority total employees of total workers the authority
(Y/N/N.A.) (Y/N/N.A.)
PF 100% 100% Yes 100% 100% Yes
Gratuity 100% 100% Yes 100% 100% Yes
ESI As Per Act As Per Act Yes As Per Act As Per Act Yes
Others- NA NA NA NA NA NA
please
specify

136 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

3. Accessibility of workplaces
Are the premises / ofces of the entity accessible to differently abled employees and workers, as per the requirements of the
Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard.
Yes the Company has a policy on diversity and inclusion and the actions are being taken.
4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide
a web-link to the policy.
Yes, the Company is committed to being an equal opportunity employer and ensure an inclusive workplace for all. The
policy is being developed.
5. Return to work and Retention rates of permanent employees and workers that took parental leave.
Permanent Employees Permanent Workers
Gender Return to work rate Retention rate Return to work rate Retention rate
Male N.A. N.A. N.A. N.A.
Female 100% 100% N.A. N.A.
Total 100% 100% N.A. N.A.

6. Is there a mechanism available to receive and redress grievances for the following categories of employees and
worker? If yes, give details of the mechanism in brief.
Yes/No
(If Yes, then give details of the mechanism in brief)
Permanent Workers Company's policy and Union Meetings
Other than Permanent workers Grievance Handling Mechanism
Permanent employees As a part of our open and transparent culture, we follow open door policy. So
every employee can share their concerns to their functional heads or leaders at
any point in time.
Oher than Permanent Employees They can directly approach the respective HODs/ In Charge and the same is
addressed by the respective HODs/ In Charge.

7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:
Category FY 2022-23 FY 2021-22
Current Financial Year Previous Financial Year
Total employees/ No. of employees/ %(B/ A) Total employees/ No. of employees/ %(D/C)
workers in workers in workers in workers in
respective category respective category, respective category respective category,
(A) who are part of (C) who are part of
association (s) or association (s) or
Union (B) Union (D)
Total
Permanent 342 0 0 352 0 0
Employees
- Male 338 0 0 347 0 0
- Female 4 0 0 5 0 0
Total
Permanent 219 219 100% 218 218 100%
Workers
- Male 219 219 100% 218 218 100%
- Female 0 0 0 0 0 0

INTEGRATED ANNUAL REPORT 2022-23 137

8. Details of training given to employees and workers:
Category FY 2022-23 FY 2021-22
Current Financial Year Previous Financial Year
Total On Health Safety On Skill Total On Health Safety On Skill
(A) Measures Upgradation (D) Measures Upgradation
No. (B) %(B /A) No. (C) %(C/A) No. (E) % (E /D) No. (F) % (F /D)
Employees
Male 1461 1461 100% 1271 87% 1445 1445 100% 1277 88%
Female 15 15 100% 14 93% 17 17 100% 15 88%
Total 1476 1476 100% 1285 87% 1462 1462 100% 1292 88%
Workers
Male 223 223 100% 198 89% 218 184 84% 177 81%
Female 0 0 0 0 0 0 0 0 0 0
Total 223 223 100% 198 89% 218 184 84% 177 81%

9. Details of performance and career development reviews of employees and worker:

Category FY 2022-23 FY 2021-22
Current Financial Year Previous Financial Year
Total (A) No.(B) % (B/A) Total (C) No. (D) % (D/C)
Employees
Male 1461 1461 100% 1445 1445 100%
Female 15 15 100% 17 17 100%
Total 1476 1476 100% 1462 1462 100%
Workers
Male 223 223 100% 218 218 100%
Female 0 0 0 0 0 0
Total 223 223 100% 218 218 100%

10. Health and safety management system:

a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/No).
If yes, the coverage such system?
JKLC is ISO 45001:2018 certied Company and Occupational Health and Safety Management system is implemented.
All the integrated units as well as grinding units including marketing operations are ISO 45001:2018 certied
b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis
by the entity?
JKLC has a process for hazard identication that is ongoing and proactive. The processes consider the criteria as per
Clause 6.1.2.1 of ISO 45001:2018. HIRA module is there in SAP system for carrying out Hazard identication and Risk
Assessment and is available online for shopoor use. HAZOP study is done for SNCR system and Fire load assessment is
done for deployment of active and passive control measures.
c. Whether you have processes for workers to report the work related hazards and to remove themselves from such
risks. (Y/N)
Yes, our commitment reects in our OH&S policy, We encourage our employees to report identied near miss incidents
through digital platform i.e., near miss reporting system, BBS observation module and Safety visit app as well as near
miss reporting form available in hard form. We have Suggestion scheme for suggestions including safety suggestion
and section level safety committee meetings are conducted monthly and apex level safety committee meetings are
conducted quarterly for ensuring occupational health and safety and address identied work-related hazards.
d. Do the employees / worker of the entity have access to non-occupational medical and healthcare services?
(Yes/No)
Yes, all the employees including workmen have access to non-occupational & healthcare services in our plants. We have
fully equipped Occupational Health Centers (OHC) in our township. Our OHC is opened for all staffs including workmen
& their family members.

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 Integrated Report Statutory Report Financial Statement

Our OHC have following facilities:

• One well experienced & certied doctor & two nurses (Male & Female) always available.
• X-Ray, lab & ECG facility.
• Separate wards for male & female.
11. Details of safety related incidents, in the following format:

Safety Incident/Number Category FY 2022-23 FY 2021-22

Current Financial Year Previous Financial Year
Lost Time Injury Frequency Rate (LTIFR) Employees 0 0
(per one million-person hours worked)
Workers 0 0.18
Total recordable work-related injuries Employees 0 0
Workers 0 2
No. of fatalities Employees 0 0
Workers 0 0
High consequence work-related injury or ill-health Employees 0 0
(excluding fatalities)
(Permanent disability and occupational disease) Workers 0 0

12. Describe the measures taken by the entity to ensure a safe and healthy workplace.
Caring for people is one of our core values and we aim for Zero Harm. Our OH&S Vision is “To be a recognized leading
Company promoting healthy and safe workplace for achieving goal of “Zero Harm”” and OH&S Mission is “To develop and
implement user friendly and effective OH&S Management System that ts to the organization and drive Risk Prevention
Culture”. We sustained plant operations by identifying potential area proactively and address them in user friendly manner
through digitalizing business processes. Some key initiatives include -
a) Learning kiosk for self-assisted learning.
b) Digital SAP based system for Hazard Identication and Risk Assessment, TBT & BBS Observation.
c) Digital SAP based system for capturing Near Miss incidence and ensure elimination of its root cause.
d) Digital SAP based system for plant safety inspection.
e) Mobile app for safety inspection of utilities and portable equipment and machines.
f) Mobile app for safety visit.
g) Digital system for permit to work and LOTOTO (Lock out tag out and try out).
h) RFID tagging system for ensuring healthy condition of reghting equipment and generation of all legal records.
i) Digital SAP based KRA monitoring system for line function as well as safety function.
j) Mobile app for logistic safety.
k) Mobile app for Contractor site safety inspection and PPE compliance audit.
l) Hydrant system IOT for 24X7 healthiness monitoring.
m) Digital system for emergency mock drill.
n) Safety manual and Standards.
Through the effective implementation of Safety Management System, JKLC has built safety culture which has incubated
safety in the day-to-day activities. It covers safety in all aspects of plants and facilities i.e., to control loss to personnel,
equipment, material, and environment. With the top management driven approach, these systems are effectively
implemented and being sustained according to the highest standard in the industry. Hazard identication & risk
assessment, SOP’s, Training, BBS, Incident management system, near miss reporting, Safety observation visit, logistic safety
inspection through app, Safe start-up & shutdown procedures, Emergency response plans, Management of Change,
Statutory compliances audits and need base Safety training are major elements of Safety Management System implemented
at JKLC.

INTEGRATED ANNUAL REPORT 2022-23 139

 All our efforts have been recognized by several awards-
• National Award form DGFASALI, Ministry of Labor and Employment Government of India
• 1st Level: Sarvashreshtha Suraksha Puraskar “Golden Trophy” in Group D, by National Safety Council of India in 2021
• Outstanding achievement in the Industrial Safety by DISH Labour Dept. Govt. of Chhattisgarh in 2022
• Golden Peacock Occupational Health & Safety Award 2022
13. Number of Complaints on the following made by employees and workers
FY 2022-23 FY 2021-22
Current Financial Year Previous Financial Year
Filed during Pending resolution Remarks Filed during Pending resolution Remarks
the year at the end of year the year at the end of year
Working Conditions 0 0 0 0 0 0
Health & Safety 0 0 0 0 0 0

14. Assessments for the year:

% of your plants and ofces that were assessed
(by entity or statutory authorities or third parties)
Health and safety practices 100%
Working Conditions 100%
15. Provide details of any corrective action taken or underway to address safety-relatedincidents (if any) and on signicant risks /
concerns arising from assessments of health & safety practices and working conditions.
To address the signicant risk arising from the assessment of health safety and working conditions, following measures have
been taken-
• Ventilation study of Packing plant and Thermal power plant at Sirohi plant
• Installation of 300mA digital X-ray machine at Sirohi plant
• Installation of auto analyzer at Sirohi Plant
• Installation of oxygen concentrator at Sirohi plant
• Occupational health checkup
• Health camps like ENT, HIV-Aids, TB screening etc.
• Surveillance system for trafc control
• Centralized monitoring station for re detection and alarm system
• Biometric access control for electrical load center for ensuring authorized entry.
• Fire retardant coating on cables and sealing of cable entry points
• Hydrant system IOT for 24X7 monitoring
• Auto re suppression system for IT data center, transformers, coal mill AFR feeding system.
• Animation videos for mines safety, visitor safety and drivers safety
• Use of Kevlar suit for high-risk jobs at kiln
• Engineering controls in mining equipment like front blind spot camera, rear & front proximity sensor, rear view camera,
advanced emergency braking system, down hill speed control and hill hold system etc.
• Mist system for crusher dump hopper
• Audio visual alarms and interlocks
• RCCB for electrical safety
• Display of visuals and models
• On the job observation, appreciation and inuencing commitment for safe behavior.
Leadership Indicators
1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N) (B)
Workers (Y/N).
Yes the Company extends life insurance and compensatory package in the event of death of both employees and workers.
Employees are covered under social security laws like PF & ESI which ensures benet (Compensatory package) in the event of
death of employees & workers.
2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by the value
chain partners. Nil

140 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

3. Provide the number of employees / workers having suffered high consequence work-related injury / ill-health / fatalities (as
reported in Q11 of Essential Indicators above),who have been are rehabilitated and placed in suitable employment or whose
family members have been placed in suitable employment.

Total no. of affected No. of employees/ workers that are rehabilitated and
employees / workers placed in suitable employment or whose family
members have been placed in suitable Employment
FY 2022-23 FY 2021-22 FY 2022-23 FY 2021-22
Employees 0 0 0 0
Workers 0 0 0 0
4. Does the entity provide transition assistance programs to facilitate continued employ ability and the management of
career endings resulting from retirement or termination of employment?
Yes, as per the business requirement.
5. Details on assessment of value chain partners
% of value chain partners (by value of business done
with such partners) that were assessed
Health and safety practices No assessment was done during FY 2022-23. However, these
considerations are standard terms of our contracts to maintain the best
standard of health & safety practices.
Working Conditions No assessment done during FY 2022-23. However, we are planning to
conduct in near future.
6. Provide details of any corrective actions taken or under way to address signicant risks/ concerns arising from
assessments of health and safety practices and working conditions of value chain partners.
The cement industry involves a variety of hazards like Dust; Chemicals; High temperatures; Heavy machinery; Electrical
hazards; Slip trip & Falls; Noise; Manual handling etc. that can lead to serious injuries or fatalities. To mitigate these hazards,
proper safety procedures are implemented, necessary personal protective equipment (PPE) are provided to workers, and it is
ensured that workers are properly trained to perform their jobs safely.
Safety culture is developed through implementation of Behavior Based Safety Management System. Risk assessments are
conducted on a regular basis to ensure that safety measures are effective. Safety policies and procedures, that are designed
to ensure safe and healthy work place aimed at Zero Harm are communicated to all employees, implemented at shopoor
and are being updated regularly to reect changing conditions. Safety training is imparted to all employees, including new
hires and contractors at regular interval. Equipment and facilities are maintained in safe to use condition through periodical
audits and inspection. Employees and contract workers are encouraged to report of hazards and near miss cases.
Occupational disease prevention is ensured through workplace hygiene monitoring, engineering control, implementation
of work practices, training and awareness, use of appropriate PPE and medical examination.
Workers participation and consultation is ensured in safety management by involving them in Hazard identication and Risk
Assessment, safety observation, safety committee meeting, CFT meeting and safety suggestion etc.

PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders
Essential Indicators
1. Describe the processes for identifying key stakeholder groups of the entity.
The Company has strong business commitment towards shared value creation for various stakeholders and have
accordingly mapped its internal and external stakeholders. The Company interacts with its various stakeholders throughout
the year to ensure sustainable and harmonious relations. The Company's internal stakeholders include employees, whereas
external stakeholders include business partners / suppliers, customers, communities around business operations, society,
competitors, shareholders/ investors, and the governments.
Details are available in the Corporate Sustainability Report for the FYs 2016-18 at the Company website:
https://www.jklakshmicement.com/the-sustainability-report/
The Company regularly engages with all its relevant stakeholders to create a positive impact across its value chain, and it has
been running multiple programs under its CSR Health; Water & Sanitation; Education; Skilling & Livelihoods and Rural
Development initiatives to bring transformational changes in the lives of vulnerable and the marginalized sections of society.

INTEGRATED ANNUAL REPORT 2022-23 141

2. List stakeholder groups identied as key for your entity and the frequency of engagement with each stakeholder
group.

Stakeholder Whether identied Channels of communication Frequency of engagement Purpose and scope of
Group as Vulnerable & (Email, SMS, Newspaper, (Annually/ Half yearly/ engagement including
Marginalized Pamphlets, Advertisement, Quarterly/ others – key topics and
Group (Yes/ No) Community Meetings, please specify) concerns raised
Notice Board, Website), during such
Other engagement
Shareholders No Email, letters SMS, Regularly through Disseminating and
Newspapers, Meetings, Company’s Website and sharing of information
Company Website, Stock website of Stock Exchange, with the shareholders
Exchange, other Statutory through Annual General with a view to update
Authority, Roadshows Meetings and also to seek their
approval etc. as may be
required.
Institutional No Annual General Meetings, Need based ROI and ESG
Investors Quarterly Concalls, performance
Presentation on Website
Investors other No Roadshows, Email, Regularly -
than Newspaper, Company
shareholders Website
Employees & No Roadshows, Email, Meetings, Daily, Weekly, Monthly, Employee well being,
Workers Communication from Top Annually, Need Based career development,
Management grievance handling,
industry scenario
Customers No Roadshows, Feedback surveys, Need based- periodically Complaints handling,
Customer needs, Social media, product
Campaigns, Customer meets communications
Value Chain No Meetings, phone calls, Weekly, monthly, annually, Customer relationship,
Partners emails need based product knowledge
Communities Yes Meetings, message Daily, weekly, monthly, Community
need based development including
health, water, education,
sanitation etc.
Statutory No Interactions, industry forum Need based Compliance, industry
Body meets, compliance report concerns, government
expectations

Leadership Indicators
1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social
topics or if consultation is delegated, how is feed back from such consultations provided to the Board.
Please refer to the stakeholder engagement section of Integrated Annual Report (IAR).
2 Whether stakeholder consultation is used to support the identication and management of environmental, and
social topics (Yes / No). If so, provide details of instances as to how the inputs received from stakeholders on these
topics were incorporated into policies and activities of the entity.
Please refer to the stakeholder engagement section of integrated annual report.
3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/
marginalized stakeholder groups.
JKLC consciously acts as a responsible corporate citizen and engages with the marginalized and vulnerable sections of the
society. Our major engagement channels are with local communities and other stakeholders like masons, petty contractors,
drivers etc., benetting through our CSR interventions. We engage with them frequently through need assessment and
other participatory methods to understand their needs and impact of our interventions. We have also provided essential
COVID 19 relief to our various stakeholders such as communities around our plants, masons, employees, workmen and
business partners. Please refer to CSR report and Social & Relationship Capital section in the IAR for further details.

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 Integrated Report Statutory Report Financial Statement

PRINCIPLE 5: Businesses should respect and promote human rights

Essential Indicators
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the
following format
Category FY 2022-23 FY 2021-22
Current Financial Year Previous Financial Year
Total (A) No. employees/workers % (B/A) Total (C) No. employees/workers % (D/C)
covered (B) covered (D)
Employees
Permanent 1476 1033 70% 1462 950 65%
Other than 0 0 0 0 0 0
permanent
Total Employees 1476 1033 70% 1462 950 65%
Workers
Permanent 223 110 49% 218 98 45%
Other than 2069 1035 50% 2076 934 45%
permanent
Total Workers 2292 1145 50% 2294 1032 45%

2. Details of minimum wages paid to employees and workers, in the following format:
Category FY 2022-23 FY 2021-22
Current Financial Year Previous Financial Year
Total Equal to More then Total Equal to More then
(A) Minimum Wage Minimum Wage (D) Minimum Wage Minimum Wage
No. (B) %(B /A) No. (C) %(C/A) No. (E) % (E /D) No. (F) % (F /D)
Employees
Permanent 1476 0 0 1476 100% 1462 0 0 1462 100%
Male 1461 0 0 1461 100% 1445 0 0 1445 100%
Female 15 0 0 15 100% 17 0 0 17 100%
Other than 0 0 0 0 0 0 0 0 0 0
Permanent
Male 0 0 0 0 0 0 0 0 0 0
Female 0 0 0 0 0 0 0 0 0 0
Workers
Permanent 223 0 0 223 100% 218 0 0 218 100%
Male 223 0 0 223 100% 218 0 0 218 100%
Female 0 0 0 0 0 0 0 0 0 0
Other than 2069 683 33% 1386 67% 2076 816 39% 1260 61%
Permanent
Male 1871 485 26% 1386 74% 1865 605 32% 1260 68%
Female 198 198 100% 0 0 211 211 100% 0 0

3. Details of remuneration/salary/wages, in the following format:

S. Particulars Male Female
No. Number Median remuneration/ Number Median remuneration/
salary/ wages of salary/ wages of
respective category respective category
1 Board of Directors (BoD) - 1 2,39,97,695 1 21,52,47,675
Executive Director (ED)*
2 BOD - Non EDs** 5 17,40,000 1 15,15,000
3 Key Managerial Personnel (KMP)*** 2 4,16,88,593 - -
4 Employees other than BoD and KMP 1458 10,58,184 14 12,13,968
5 Workers 223 5,45,999 - -
* The remuneration of two Executive Directors (ED), who relinquished their ofce w.e.f. from 01.08.2022, is not considered
in median calculation as their remuneration is only for the part of year.

INTEGRATED ANNUAL REPORT 2022-23 143

 ** The remuneration of one Non Executive Director, who relinquished his ofce w.e.f. from 31.08.2022, is not considered in
median calculation as his remuneration is only for the part of year.
*** The median remuneration of one Executive Director (KMP) is covered as a part of Board of Directors, therefore not
included in the median remuneration paid to KMP and the remuneration of one KMP, who relinquished his ofce w.e.f from
01.09.2022, is not considered in median calculation as his remuneration is only for the part of year.
4. Do you have a focal point (Individual/Committee) responsible for addressing human rights impacts or issues caused
or contributed to by the business?(Yes/No)
The fundamental human rights issues are governed by the national legislations of India for instance child labour, forced
labour, sexual harassment etc. JKLC complies with laws of the land. In addition to above legislative framework we have
internal committees to take care of human rights issues pertaining to child labour, sexual harassment etc.
5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
We comply with law of the land. In addition to the national legislative framework we have internal committees to take care
of human rights issues pertaining to child labour, sexual harassment etc.
6. Number of Complaints on the following made by employees and workers:
Category FY 2022-23 FY 2021-22
Current Financial Year Previous Financial Year
Filed during Pending resolution Remarks Filed during Pending resolution Remarks
the year at the end of year the year at the end of year
Sexual Harassment NIL NIL NIL NIL NIL NIL
Discrimination at workplace NIL NIL NIL NIL NIL NIL
Child Labour NIL NIL NIL NIL NIL NIL
Forced Labour / Involuntary Labour NIL NIL NIL NIL NIL NIL
Wages NIL NIL NIL NIL NIL NIL
Other human rights related issues NIL NIL NIL NIL NIL NIL

7. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
We have Code of Conduct and SHAW Policy. Additionally, we have education program on harassment and code of conduct for
all the employees at all levels. We also follow the philosophy of protection of whistle blowers.
8. Do human rights requirements form part of your business agreements and contracts?(Yes/No)
Yes, in consonance with applicable legislation and rules made thereunder. The same has been made a part of our
agreements and contracts.
9. Assessments for the year
% of your plants and ofces that were assessed
(by entity or statutory authorities or third parties)
Child labour Nil
Forced / involuntary labour Nil
Sexual harassment Nil
Discrimination at workplace Nil
Wages Nil
Others–please specify -

10. Provide details of any corrective actions taken or underway to address signicant risks / concerns arising from the
assessments at Question 9 above.
Not applicable.
The Company ensures proper screening of potential suppliers and partners that there are no child labour and forced/
involuntary labour. Our contracts with our value chain partners prohibit employment of child labour and forced/ involuntary
labour. The Company strives to be a discrimination free Company and we do not allow discrimination & harassment based
on religion, gender, cast disability, nationality, sexual orientation, race and age. In addition, we also expect all our value chain
partners to uphold these principles and include guidelines on human rights in all our contracts.

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 Integrated Report Statutory Report Financial Statement

Leadership Indicators
1. Details of a business process being modied/introduced as a result of addressing human rights grievances/
complaints.
No complaints so far and therefore not applicable.
2. Details of the scope and coverage of any Human rights due-diligence conducted.
The Company has internal control mechanisms to ensure human rights due-diligence. All external contracts contain strict
guidelines on human rights issues and compliance is monitored constantly. No third party due diligence conducted for
human right, in the current nancial year.
3. Is the premise/ofce of the entity accessible to differently abled visitors, as per the requirements of the Rights of
Persons with Disabilities Act, 2016?
The Company is taking steps in this direction.
4. Details on assessment of value chain partners
% of value chain partners (by value of business done with such
partners) that were assessed
Sexual Harassment Nil
Discrimination at workplace Nil
Child Labour Nil
Forced Labour / Involuntary Labour Nil
Wages Nil
Others–please specify -

5. Provide details of any corrective actions taken or underway to address signicant risks / concerns arising from the
assessments at Question 4 above.
Not applicable for the current year but the Company intend to undertake assessment of vale chain partners in the coming
years.

PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment
Essential Indicators
1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:
Parameter FY 2022-23 FY 2021-22
(Current Financial Year) (Previous Financial Year)
Total electricity consumption (A) (In GJ) 2423080 2300410
Total fuel consumption (B) (In GJ) 22350590 24151012
Energy consumption through other sources (C) NA NA
Total energy consumption (A+B+C) (In GJ) 24773670 26451422
Energy intensity per rupee of turnover 0.0004080 0.000525
(Total energy consumption/turnover in rupees) (in GJ/Rs.)
Energy intensity (optional) – the relevant metric may be - -
selected by the entity
Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name
of the external agency.
CII Bench marking study was conducted at our Integrated Plants at Sirohi and Durg in FY 2021-22.
2. Does the entity have any sites / facilities identied as designated consumers (DCs) under the Performance, Achieve
and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme
have been achieved. In case targets have not been achieved, provide the remedial action taken, if any.
Yes, JKLC-Sirohi & JKLC-Durg units are registered as designated consumers (DCs) under the Performance, Achieve and Trade
(PAT) scheme of the Government of India.

INTEGRATED ANNUAL REPORT 2022-23 145

 JKLC – Durg was registered in PAT III cycle with base line year 2015-16 under which the assessment year 2019-20. All the
targets were complied in cycle III.
JKLC Sirohi- During PAT Cycle-1 we were given the target to reduce SEC by 4.91% against that we have reduced SEC by
14.77%. We got 38987 certicates exceeding the target.
In PAT cycle-2 we were given the target to reduce SEC by 4.8% but we have reduced only 2.33% & Banked certicates in PAT
Cycle I is used for compliance in shortfall. Now we are in PAT Cycle-7 , we have to reduce SEC by 3.4% and to achieve this our
Road map includes increase in usages of renewable energy; increase in usages of AFR and plant energy efciency
improvement.
3. Provide details of the following disclosures related to water, in the following format
Parameter FY 2022-23 FY 2021-22
(Current Financial Year) (Previous Financial Year)
Water withdrawal by source (in kilolitres)
(i) Surface water 419357 577718
(ii) Ground water 731891 614255
(iii) Thirdparty water 0 0
(iv) Seawater/desalinatedwater 0 0
(v) Others 797 539
Total volume of water withdrawal 1152045 1192512
(in kilo litres) (i+ii+iii +iv+v)
Total volume of water consumption (in kilolitres) 1152045 1192512
Water intensity per rupee of turnover 0.0000190 0.0000237
(Water consumed / turnover) (in KL/Rs.)
Water intensity (optional) – - -
the relevant metric may be selected by the entity
Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name
of the external agency.
Yes. The names of the external agencies are mentioned below:
• National Productivity Council (For entire JKLC locations)
• Bureau Veritas (India) Pvt. Ltd. (For Kalol & Surat Plants)
• DN.VGL (For entire locations)
• TUV NORD CERT GmbH (For Durg and Cuttack plants)
• Vexil Business Process Services Private Limited (For Sirohi& Jhajjar plants)
4. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and
implementation.
Cement manufacturing is a dry process thus there is direct utilization of water in the process. Water is only being used for
industrial cooling purposes. And there is no wastewater generated from cement manufacturing process. JKLC is
maintaining its status of a Zero Liquid Discharge Unit (ZLD). We have placed Sewage Treatment Plants (STPs) for domestic
sewage and Efuent Treatment Plants (ETPs) for wastewater generated from automobile workshops. We recycled 100%
treated water to maintain ZLD. Treated water is being reused in Dust suppression, Greenbelt development, etc.

5. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format
Parameter Please specify unit FY 2022- 23 FY 2021-22
(Current Financial Year) (Previous Financial Year)
NOx Ton/Annum 1342 1313
Sox Ton/Annum 258 289
Particulate matter (PM) Ton/Annum 17 28
Persistent organic pollutants(POP) Ton/Annum BDL BDL
Volatile organic compounds(VOC) Ton/Annum BDL BDL
Hazardous air pollutants(HAP) Ton/Annum BDL BDL
Others – please specify Ton/Annum BDL BDL

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 Integrated Report Statutory Report Financial Statement

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name
of the external agency.
Yes. Third party monitoring is an external agency for calibration of Stack and monitoring for emission during Co-processing of
AFR in Integrated Cement Plants. Names of Other External Agencies are Bureau Veritas (India) Pvt. Ltd., TUV NORD CERT GmbH
and Vexil Business Process Services Private Limited.

6. Provide details of green house gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format:
Parameter Unit FY 2022- 23 FY 2021-22
(Current Financial Year) (Previous Financial Year)
Total Scope 1 emissions (Break-up of the Metric tonnes of 5380820 5299169
GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, CO2 equivalent
NF3, if available)
Total Scope 2 emissions (Break-up of the Metric tonnes of 434543 603374
GHG into CO2, CH4, N2O, HFCs,PFCs, SF6, CO2 equivalent
NF3, if available)
Total Scope 1 and Scope 2 emissions per 5815363 5902543
rupee of Turnover
Total Scope 1 and Scope 2 emission intensity 0.09579 0.11710
(optional) – the relevant metric may be selected
by the entity (in Kg CO2/ ` turnover)
Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name
of the external agency.
No
7. Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details.
• Yes. In order to reduce our carbon footprint, all our plants have started using renewable energy sources by setting up a
solar power plant at their plant premises. In addition, we have tied up with various off set wind and solar power suppliers
to use wind and solar power instead of using electricity generated from coal red power plants.
• JK Lakshmi Cement Ltd. prefers to procure from suppliers who are proactive in reducing their environmental impacts and
expects its suppliers to comply with relevant laws and regulations. JK Lakshmi Cement Ltd. has the right to exclude
suppliers who do not exhibit the aforesaid measures. We buy local materials and try to minimize distance between source
& project site to reduce transportation emission.
• Under our Plantation Drive initiative, we distribute free plants and saplings every year not only to schools but also to the
villages, police stations, and communities and distribute free Tree Guards for the plants. As we know that trees are the
perfect solution to mitigate GHG emission.
8. Provide details related to waste management by the entity, in the following format
Parameter FY 2022- 23 FY 2021-22
(Current Financial Year) (Previous Financial Year)
Total Waste generated ( in metric tonnes)
Plastic waste (A) 29.53 41.69
E-waste (B) 0.186 3.52
Bio-medical waste (C) 0.192 0.180
Construction and demolition waste (D) 0 0
Battery waste (E) 14.40 8.13
Radio active waste (F) 0 0
Other Hazardous waste. Please specify, if any. (G) 33.51 30.75
Other Non-hazardous waste generated (H). Please specify, if any. 33568.63 66521.77
(Break-up by composition i.e. by materials relevant to the sector)
Total (A+B+C+D+E+F+G+H) 33646.44 66606.01
For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations
(in metric tonnes)
Category of waste
(i) Recycled 16.70 29.77
(ii) Re-used 30810.50 64551.50
(iii) Other recovery operations 0 0
Total 30827.20 64581.27

INTEGRATED ANNUAL REPORT 2022-23 147

Parameter FY 2022- 23 FY 2021-22
(Current Financial Year) (Previous Financial Year)
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category of waste
(i) Incineration 0.19 0.17
(ii) Landlling 0 0
(iii) Other disposal operations 2815.71 2025.00
Total 2815.90 2025.17
Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name
of the external agency.
Yes. External Agencies are GEM enviro & Mobi trash for PP bags recycle. Names of Other External Agencies are Bureau Veritas
(India) Pvt. Ltd., DN.VGL, TUV NORD CERT GmbH and Vexil Business Process Services Private Limited.
9. Briey describe the waste management practices adopted in your establishments. Describe the strategy adopted by
your company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices
adopted to manage such wastes.
• As such there is no hazardous waste generation from cement manufacturing process other than Used Oil from machinery
operation. During cement manufacturing, only used oil generated from operational machinery (hazardous waste) from
our plant. Used oil is stored at identied best isolation locations in plant boundary which is sold to SPCB/CPCB authorized
recyclers. Moreover, we are utilizing hazardous waste as an alternative fuel and raw materials (AFR) in our cement
manufacturing process, generated as waste/byproduct from other industries.
• JKLC always strives to replace hazardous and toxic chemicals in our products with eco-friendly alternatives. As such, our
products do not use any hazardous and toxic chemicals. We have also used alternative raw materials (Fly ash, Chemical
gypsum, Granulated slag etc.) in cement production.
• We believe in "waste to wealth” and from the very beginning of the project, we adopted the “Reduce -Reuse - Recycle "
principle. Separate bins with labels are placed at dedicated points in the plant for waste collection and then according to
the type of the waste, we will proceed for its reuse and recycling.
We have also implemented below Best Practices for Better Waste Management in our plant.

Waste Name Best Practice

Organic Waste/ Food Food Waste Indication board placed at canteen is being used to sensitize employees
Waste / Plantation Waste about the importance of food and minimize the wastage of food. We collect organic waste
like food waste, plantation waste etc., and then use in our in-house developed vermi
compost system to make organic compost in our plant.
Construction Waste/ Utilization of lab tested cement cubes in making of roads and landscape structures.
Tested Cement Cubes
Used oil We reuse the used oil in oiling and greasing of various mechanical parts and left one is sold it
to the CPCB authorized vendors.
Discarded Single Use Utilization of discarded single use plastic bottles and drums in plantation activities.
Plastic Bottles
Paper Waste Adopting paperless processes such as online issue voucher & PR system, Work permit system,
Safety Audit etc. We reuse paper waste in in-house developed vermi compost system.
Metal Waste We sell the metal waste to the authorized recycler for recycling purpose.
Liquid Waste/ Sewage/ The only liquid waste which is generated in our plant is sewage. Our plant is ZERO LIQIUD
Wastewater DISCHARGE UNIT. We collect and treat wastewater through Sewage Treatment Plants and then
this treated water is being utilized in greenbelt development activities in our plant.
Co-processing Utilization of wastes such as POP, y ash, Chemical Gypsum (hazardous waste), y ash, etc. which
are generated in other industries. So, by utilizing it, we are reducing the burden on the landll.
Cow Dung Flowerpot In nurseries, conventionally plastic bags are used to grow plant saplings. There are many
Machine disadvantages associated with plastic bags like not being bio-degradable, having nil porosity,
and hence not being ecofriendly. Moreover, after germination, the bag has to be torn off to
facilitate root growth and in case the bag is not torn properly the plant gets damaged. The
cow dung pots decompose to provide the necessary nutrients for plants such as nitrogen,
phosphorous and potassium.

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10. If the entity has operations/ofces in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries,
biosphere reserves, wetlands, biodiversity hotspots, forests,coastal regulation zones etc.) where environmental
approvals / clearances are required, please specify details in the following format
S. No. Location of Type of operations Whether the conditions of environmental approval/
operations/ofces clearance are being complied with? (Y/N) If no, the
reasons thereof and corrective action taken, if any.
1. J K Lakshmi Cement Limited Cement Grinding Yes
Village-Ghantikhal, Unit
Radheshyampur, Cuttack, Odisha.

11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the
current nancial year:
Name and brief EIA Date Whether conducted Results Relevant
details of project Notication by independent communicated Weblink
No. external agency in public domain
(Yes/No) (Yes/No)
Proposed expansion of Stand- As per EIA 27.01.2023 Yes Yes https://environmentclearance.nic.
Alone Cement Manufacturing Notication M/s. Ecogreen Enviro in/ proposal_status_state.aspx?pid
(Clinker Grinding) Unit from 1.5 2006 Services (Nabet =ClosedEC&statename=Gujarat
MMTPA to 3.0 MMTPA by Accrediated)
M/s. JK Lakshmi Cement Limited NABET/EIA/2023/
Proposal No: IA0070, Valid Till-
SIA/GJ/IND1/415108/2023 22.12.2023

12. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water
(Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment Protection Act
and Rules thereunder (Y/N).If not, provide details of all such non-compliances,in the following format:
We have complied with all applicable environmental law/ regulations/ guidelines in India; such as the Water (Prevention and
Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment Protection Act and Rules thereunder.
S. No. Specify the law/regulation/ Provide details of Any nes/penalties/action Corrective action taken,
guidelines which was not the non-compliance taken by regulatory agencies if any
complied with such as pollution control
boards or by courts
NA NA NA NA NA

Leadership Indicators
1. Provide break-up of the total energy consumed (in Joules or multiples) from renewable and non-renewable sources,
in the following format.
Parameter FY 2022-23 FY 2021-22
(Current Financial Year) (Previous Financial Year)
From renewable sources
Total electricity consumption (A) (In GJ) 839377 698174
Total fuel consumption (B) (In GJ) 1040895 834890
Energy consumption through other sources (C)
Total energy consumed from renewable sources (A+B+C) (In GJ) 1880272 1533064
From non-renewable sources
Total electricity consumption (D) (In GJ) 1583703 1602237
Total fuel consumption (E) (In GJ) 21309695 23316122
Energy consumption through other sources (F)
Total energy consumed from non-renewable sources (D+E+F) 22893398 24918358
Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes,
name of the external agency.
CII Bench marking study was conducted at our Integrated Plants at Sirohi and Durg in FY 2021-22.

INTEGRATED ANNUAL REPORT 2022-23 149

2. Provide the following details related to water discharged
Parameter FY 2022-23 FY 2021-22
(Current Financial Year) (Previous Financial Year)
Water discharge by destination and level of treatment (in kilo litres)
(i) To Surface water
- No treatment 0 0
- With treatment – please specify level of Treatment 0 0
(ii) To Ground water
- No treatment 0 0
- With treatment – please specify level of Treatment 0 0
(iii) To Sea water
- No treatment 0 0
- With treatment – please specify level of Treatment 0 0
(iv) Sent to third-parties
- No treatment 0 0
- With treatment – please specify level of Treatment 0 0
(v) Others
- No treatment 0 0
- With treatment – please specify level of Treatment 0 0
Total water discharged (in kilo litres) 0 0

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes,
name of the external agency.
Yes. Names of External Agencies are Bureau Veritas (India) Pvt. Ltd. , National Productivity Council, DN.VGL, TUV NORD CERT
GmbH and Vexil Business Process Services Private Limited.
3. Water withdrawal, consumption and discharge in areas of waters tress (in kilo litres): Not Applicable
For each facility /plant located in areas of water stress, provide the following information:
(i) Name of the area:
(ii) Nature of operations:
(iii) Water withdrawal, consumption and discharge in the following format:
Parameter FY 2022-23 FY 2021-22
(Current Financial Year) (Previous Financial Year)
Water withdrawal by source (in kilo litres)
(i) Surface water - -
(ii) Ground water - -
(iii) Third party water - -
(iv) Seawater/desalinated water - -
(v) Others - -
Total volume of water withdrawal (in kilo litres) - -
Total volume of water consumption (in kilo litres) - -
Water intensity per rupee of turnover - -
(Water consumed/turnover) (KL/ `)
Water intensity (optional) – the relevant metric may be selected - -
by the Entity
Water discharge by destination and level of treatment (in kilo litres)
(i) Into Surface water
- No treatment - -
- With treatment – please specify level of treatment - -
(ii) Into Ground water
- No treatment - -
- With treatment – please specify level of treatment - -

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 Integrated Report Statutory Report Financial Statement

Parameter FY 2022-23 FY 2021-22

(Current Financial Year) (Previous Financial Year)
(iii) Into Seawater
- No treatment - -
- With treatment – please specify level of treatment - -
(iv) Sent to third-parties
- No treatment - -
- With treatment – please specify level of treatment - -
(v) Others
- No treatment - -
- With treatment – please specify level of treatment - -
Total water discharged (in kilo litres)
Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes,
name of the external agency.
4. Please provide details of total Scope 3 emissions & its intensity, in the following format:

Parameter Unit FY 2022- 23 FY 2021-22

(Current Financial Year) (Previous Financial Year)
Total Scope 3 emissions (Break-up of the GHG Metric tonnes of 125528 132557
into CO2, CH4, N2O, HFCs, PFCs, SF6,NF3, CO2
if available) equivalent
Total Scope 3 emissions per rupee of turnover Kg CO2/ ` 0.0020676 0.0026297
Total Scope 3 emission intensity (optional) – - - -
the relevant metric may be selected by the entity

Remarks: For FY 2022-23 under Scope -3 emissions, we have considered CO2 emissions in upstream & downstream logistics
operations and through employee commuting. However, FY 2022 we have inventorised CO2 emission through upstream and
downstream logistics operations.
Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name
of the external agency. NO
5. With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide details
of signicant direct & indirect impact of the entity on biodiversity in such areas along-with prevention and
remediation activities.
Below are the major impact & mitigation measures of Wildlife Conservation Plan of our plant for which the information has
been provided in Question 10.
Major Impact
• Impact on Soil & Air due to sound & pollution arising from plant operation.
• Sound from machinery and heavy vehicles may hamper natural movement of wildlife animals.
• The dust emission from plant may hamper the life of ora and fauna.
Some of the major mitigation and remedial measures undertaken by the Company are as below-
• 16.29-hectare area developed as green belt which balance the emission and prevent topsoil corrosion.
• One vehicle provided to the Forest department to watch & monitor elephant movement for the purpose of anti-
depredation.
• Corpus fund of ` 4.06 Crores provided to the Forest department to undertake activities to prevent wildlife depredation
and related activities.
• Company is implementing various CSR activities in the plant nearby villages and providing support to other stakeholders
in their development initiatives.

INTEGRATED ANNUAL REPORT 2022-23 151

6. If the entity has undertaken any specic initiatives or used innovative technology or solutions to improve resource
efciency, or reduce impact due to emissions / efuent discharge / waste generated, please provide details of the
same as well as out come of such initiatives, as per the following format:
S. Initiative undertaken Details of the initiative (Web-link, if any, may be Outcome of
No. provided along-with summary) the initiative
1 Use of Energy Efcient We have installed LED lights in all locations of JKLC. Reduction in
Light – LED Lights GHG emissions.
2 Installation of scientically Natural Rainwater is being used in Cooling Tower to makeup Water Conservation
designed “COOLING TOWER” so that usage of freshwater consumption can be reduced.
3 All possible structures are “Noise and dust emission reduced”:- All possible structures To reduce noise and
covered with acrylic sheet are covered with acrylic sheet as under: dust emission
a) Raw material unloading /loading and storage area is covered
b) All the transfer points are fully enclosed and are equipped
with bag lter, wherever required.
c) All conveyor belts are provided with the conveyor covers to
reduce dust emission.
4 Installation solar cleaning Optimum water is being utilized in cleaning activities Water Conservation.
machine. of solar panels. Promote usage of
renewable energy
source.
5 Packaged Type Sewage Domestic purpose used water was collected through the Fresh water
Treatment Plant pipeline and treated with STP Water treated from STP is used conservation.
for the greenbelt development and gardening purpose
6 Rainwater harvesting Utilize rainwater in plant operation instead of fresh water. Conserve natural
resources.
7 Chemical Gypsum/Gypsum More usage chemical gypsum in cement manufacturing. Conserve natural
waste Consumption resources & to reduce
land pollution.
8 Production: -PPC replaced We have promoted Composite production to replace PPC. Reduction in GHG
with Composite Cement footprint. To reduce
clinker consumption.
Conserve natural
resources
9 Greenbelt Development We have developed more than 34% of greenbelt. Trees Combat Climate
Change
Trees help keep
environment clean
and provide oxygen.
10 Lowest Water Consumption We installed all possible location ow control valve. Installed To reduce Fresh Water
“DIGITAL WATER METERS” for day-to-day monitoring of water requirements and
consumption in plant for carrying out the water audit in plant. conserve natural
Pipelines laid over ground or just one meter underground to resources.
identify water leakage easily.
11 Use of Fly ash Based AAC- Fly ash based AAC Blocks were used in building construction in Green Building
Blocks & Bricks instead of place of Red Mud Bricks, which resulted in saving of natural Initiative and Reduce
Red mud Bricks virgin red mud resource. GHG emission
12 In-house developed Unused land in plant premises near weight bridge has been Promote organic
Organic Vegetable Farm developed as Farm for Organic Vegetable which will be used in farming without
cooking for ofcer’s mess. using any chemical
Employees get pure vegetable and healthy food, and it will
ultimately improve health of an employee.
13 Occupancy sensors and Occupancy Sensors and Transparent sheets have been provided Energy Conservation
Transparent sheets in all Ofces to switch off the Lights automatically when there
is no one in the ofce.
14 VFD Installation of VFD in Screw Compressor Energy Conservation.
Reduce GHG footprint.

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S. Initiative undertaken Details of the initiative (Web-link, if any, may be Outcome of

No. provided along-with summary) the initiative
15 Power Saving Operation of Timer based operation of water cooler Energy Conservation.
Water Cooler Reduce GHG footprint.
16 Logic Based Operation of The water pump operates only when the inlet temperature of Energy Conservation.
Water Pump in Cooling water, coming into the cooling tower, reaches more than and Reduce GHG
Tower equal to 32 ‘C. So by doing this, we are saving the power. footprint.
17 Power Saving Operation of Earlier the clinker rst stored in clinker silo then from that it Energy Conservation.
Clinker Feeding System was transferred to clinker hopper. Now due to clinker of clinker Reduce GHG
Feeding System, the clinker is directly stored in hopper. footprint.
18 VFD Installation of VFD in water pump system of cooling tower Energy Conservation.
Reduce GHG footprint.
19 VFD Installation of VFD with CA Fan Motor Energy Conservation.
Reduce GHG footprint.
20 Water Saving Green belt Drip Irrigation and Sprinkler System for watering plants to Water Conservation
development activities reduce the water consumption Initiative
21 Water Permit System Water Permit System to control misuse or overuse of water. Sensitize Employees
Every water discharge point is locked and opened once the and workers towards
permit with the meter reading is taken. water conservation
22 Air Cooled Heat Exchanger Replaced the Water Cool Heat Exchangers with Air Cooled Water Conservation
Heat Exchangers to eliminate the use of water in the cooling Initiative
process. By doing this we are reducing the consumption
of water.
23 Rotary Screw Compressor Replaced the Reciprocating Compressor with Rotary Screw Water Conservation
Compressor which is an oil cooled compressor so there is no Initiative
water used for cooling of the Rotary Screw Compressor.
By doing this we are reducing the consumption of water.
24 Paperless initiative Adopting paperless processes such as online issue voucher Waste Management
& PR system, Work permit system, Safety Audit etc. initiative
25 Reuse of Construction waste Utilization of lab tested cement cubes in making of roads Waste Management
and landscape structures. initiative
26 Environmental Heroes Token of Appreciation is given to the workers who have Sensitize Employees
done outstanding work for the conservation of environment and workers towards
in the plant like water/ power/ solid waste management/ environment
maintain greenery/ cleanliness / Plantation etc. conservation
27 Installation of LP compressor Installation of LP compressor in Cement Mill section for Step towards
in place of HP compressor y ash unloading, resulting in power savings. sustainability
28 SNCR Installed to control the Ammonia based SNCR system has been installed at integrated After Installation of
NOx emission from Kiln units to control the Nox emission from kiln. SNCR the Nox
emission is in under
the prescribed
standard
29 Road Sweeping machine Mechanically Road sweeping machines are under operation Fugitive Dust Emission
to control the fugitive dust emission from plant premises. is in under limit
30 Solar power installed It is a pollution free and causes no greenhouse gases to be We are conserving
at plant premises. emitted after installation Natural Resources
through installation
of Solar plant
31 Optimization of waste heat Optimization of waste heat recovery system by installation of Reduction in heat
recovery system hot air recirculation to reduce heat consumption and CO2 consumption,
emission and increase in power generation for Kiln Reduction in CO2
emission and increase
in power generation
32 Increased utilization of Increased utilization of Alternative Fuel in Kilns viz. TDI Tar, Reduced consumption
Alternative Fuel Paint Sludge, CETP Sludge, Plastic Waste, Biomass, RDF uff, of Coal, Reduction in
De-Oiled cake, etc. in integrated plants. CO2 emission

INTEGRATED ANNUAL REPORT 2022-23 153

S. Initiative undertaken Details of the initiative (Web-link, if any, may be Outcome of
No. provided along-with summary) the initiative
33 Installation of PTFE Bags Installed the most efcient pollution control devices i.e. Reduction in
PTFE glass ber lter bags Particulate Matter
emission
34 Natural resource Burning agricultural waste (biomass) into kilns for natural Reduction in Green
conservation resource conservation (such as fossil fuel) and minimizing House Gas Emission
greenhouse gas emission during clinkerization in integrated units.
35 Installation of CEMS Installation of Online Continuous Emission Monitoring system. Continuous
monitoring of source
Emission
36 Installation of CAAQMS Installed Continuous Ambient Air quality monitoring station for Continuous
Stations monitoring of ambient air quality data are being communicated monitoring of
to PCB. Ambient Air Quality
37 Installation of Waste Heat Installation of Waste Heat Recovery Power Plants. It saves Reduction in CO2
Recovery Power Plant natural resources and reduces Carbon dioxide emission. emission. Conserve
natural resources.
38 Installation of FGD Plant in Flue Gas Desulphurization (FGD) plant is installed for removal Reduction SO2
Captive Power Plant. of Sulphur dioxide from ue gases. emission
7. Does the entity have a business continuity and disaster management plan? Give details in100 words/ weblink.
Yes, we do have emergency prevention and preparedness plan in line with the State Factories Rules, and we conduct mock
drill at regular interval. The Emergency plan contains information about preliminary hazard analysis, details of site,
Emergency sites identied, Central Control Center (CCC), Incident control center (ICC), Handling of an emergency / disaster,
List of certied trained rst aider, location wise summary of re ghting equipment, specications of re ghting
equipment, location wise summary of re detection and alarm system, Fireghting instructions, Building emergency
evacuation plan, rst aid measure for electrical shock / cardiac arrest, wound, fracture, burn, chemical burn, snake bite, dog
bite, honey bee bite, chocking, details of OHC paramedical staff and facilities and mutual aid agreement etc.
8. Disclose any signicant adverse impact to the environment, arising from the value chain of the entity. What
mitigation or adaptation measures have been taken by the entity in this regard.
• There is no signicant adverse impact to the environment, arising from the value chain of the entity because JK Lakshmi
Cement Ltd. prefers to procure from suppliers who are proactive in reducing their environmental impacts and expects its
suppliers to comply with relevant laws and regulations.
• We are niche sustainable developer & has adopted sustainable purchase policy encompassing:
• Our products are Greenpro certied, and our rst preference is to buy Greenpro Certied Products.
• Emission reduction - Buy local materials, try to minimize distance between source & project site.
• Forest/Environmental protection: Buy Refrigerant free from CFC/HCFC/Halons and asbestos free products.
• Health & safety - Buy low VOC paints, sealants and adhesives.
• Conserve resources - Buy materials having more recycled content.
• Avoid products having hazardous materials & encourage companies meeting safety standards & reliability.
• Maximize purchase of nationally or internationally or IGBC certied sustainable products.
9. Percentage of value chain partners (by value of business done with such partners) that were assessed for
environmental impacts.
Not Applicable

PRINCIPLE 7 Businesses, when engaging in inuencing public and regulatory policy, should do so in a manner that is
responsible and transparent
Essential Indicators
1. a. Number of afliations with trade and industry chambers/associations.
10
b. List the top 10 trade and industry chambers/associations (determined based on the total members of such body)
the entity is a member of / afliated to.

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S. Name of the trade and industry Reach of trade and industry

No. chambers/associations chambers/associations (State/National)
1 Cement Manufacturers Association National
2 PHD Chamber of Commerce & Industry National
3 Rajasthan Chamber of Commerce State
4 Udaipur Chamber of Commerce State
5 Federation of Indian Mineral National
6 Coal Consumer’s Association of India National
7 Indian Chamber of Commerce National
8 National Safety Council National
9 Ready Mixed Concrete Manufacturers National
10 GCCA India (P) Ltd. National

2. Provide details of corrective action taken or underway on any issues related to anti-competitive conduct by the entity,
based on adverse orders from regulatory authorities.
Name of authority Brief of the case Corrective action taken
Competition Competition Commission of India (CCI) vide its All the seven companies led appeal before
Commission of India order dated 19th January 2017 had imposed a Competition Appellate Tribunal (now transferred
penalty on certain cement companies including to National Company Law Appellate Tribunal).
a penalty of ` 6.55 Crores on the Company JK Lakshmi cement was rst to le the appeal
pursuant to a reference led by the Government bearing no.- Transfer Appeal (Appellate Tribunal)
of Haryana. The Company has led an appeal (Competition) No 39 of 2017 (earlier appeal no 2
with Competition Appellate Tribunal (COMPAT) of 2017 before COMPAT). The appeal is yet to be
against the said order. COMPAT has granted a heard and nally disposed.
stay on CCI’s order. After the merger of COMPAT
with National Company Law Appellate Tribunal We are ethically, and socially responsible
(NCLAT), the Company’s case also stands Company and we very strongly reiterate that we
transferred to NCLAT. have never been a part of bid rigging or any other
wrongdoing in our business practices and
Based on the legal opinion, the Company would like to reassure to all our stakeholders that
believes that it has a good case in the matter. the Company has never indulged or was part of
any bid rigging or has undertaken any unfair
practices.

Leadership Indicators
1. Details of public policy positions advocated by the entity:

S. No. Public policy Method resorted Whether information Frequency of Review Web Link,
advocated for such advocacy available in public by Board (Annually/ if available
domain? (Yes/No) Half yearly/ Quarterly/
Others- please specify)
1. Renewable energy/ Industry associations - Opportunity based/ -
AFR & bodies Need based
2. Alternative building Seminars - Need / opportunity based -
materials
3. Carbon emission Seminars - Need based -
reduction in cement
industry
4. Water conservation Industry associations - Opportunity based -
& bodies

INTEGRATED ANNUAL REPORT 2022-23 155

PRINCIPLE 8: Businesses should promote inclusive growth and equitable development.
Essential Indicators
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the
current nancial year.

Name and brief SIA Date of Whether conducted Results Relevant

details of project Notication No. Notication by independent communicated in Web Link
external agency public domain
(Yes/No) (Yes/ No)

Not Applicable

2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being under taken by
your entity, in the following format.

S. Name of project State District No. of Project % of PAFs covered Amount paid to
No for which R&R Affected Families by R & R PAFs in the FY
is ongoing ( PAFs) ( In INR)

Not Applicable

3. Describe the mechanisms to receive and redress grievances of the community.

The CSR team visits communities on day-to-day basis and meet various stakeholders including beneciaries, panchayat
representatives and others. The process of continuous engagement with the community is an ongoing process. The
frequency of the engagement and interaction depends on nature of the stakeholder like project beneciaries in local
communities do happen on daily and weekly basis whereas that of panchayats and government line departments do
happen on fortnightly and monthly basis. These day-to-day interactions help the CSR team to gather feedbacks and
complaints if any. The feedback is used to improve and modify CSR projects. This system is an informal one and has helped
to resolve issues and response to the demands of stakeholders to their satisfaction. The Company also undertakes
materiality analysis on time-to-time basis as a part of its sustainability reporting initiatives. Based on this respective
departments undertake engagement and activities to address materiality issues. Plants have a system of monthly review of
all departments who have external stakeholders’ interface.
4. Percentage of input material (inputs to total inputs by value) sourced from suppliers: The Company ensures to source all
raw materials locally whichever feasible.

FY 2022-23 FY 2021-22
Current Financial Year Previous Financial Year
Directly sourced from MSMEs / small producers PP Bags 71% PP Bags 75%
Sourced directly from within the district and neighbouring districts AFR 18% AFR 24%

Leadership Indicators
1. Provide details of actions taken to mitigate any negative social impacts identied in the Social Impact Assessments
(Reference: Question1of Essential Indicators above):
Not Applicable
Details of negative social impact identied Corrective action taken

Not Applicable

2. Provide the following information on CSR projects under taken by your entity in designated aspirational districts as
identied by government bodies:
S. No. State Aspirational District Amount spent (In INR)
1. Rajasthan Sirohi 2,37,57,000

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3. (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising
marginalized / vulnerable groups? (Yes/No)
No preferential policy.
(b) From which marginalized / vulnerable groups do you procure? Not applicable
(c) What percentage of total procurement (by value) does it constitute? Not Applicable
4. Details of the benets derived and shared from the intellectual properties owned or acquired by your entity (in the
current nancial year), based on traditional knowledge.
S. No. Intellectual Property based on Owned/ Benet of Basis
traditional knowledge calculating Acquired
shared (Yes/No) (Yes /No) benet share
Not Applicable

5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes
where in usage of traditional knowledge is involved. Not Applicable
Name of authority Brief of the Case Corrective action taken
Not Applicable

6. Details of beneciaries of CSR Projects

S. No. CSR Project No.of persons benetted % of beneciaries from vulnerable
from CSR Projects and marginalized groups
1 JK Lakshmi Aarogya Project 59732 67%
2 JK Lakshmi Vidya Project 10366 66%
3 JK Lakshmi Aajivika Project 11939 85%
4 JK Lakshmi Swajal&Swachhta Project 48335 54%
5 JK Lakshmi Gramin Vikas Project 53909 39%

PRINCIPLE 9: Businesses should engage with and provide value to their consumers in a responsible manner
Essential Indicators
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
Company has provided various platforms, involving a pre-dened escalation matrix, where Customer can share his
grievances in following ways as nd appropriate by him-
a) Contacting through authorised dealer
b) Customer care helpline
c) Web site
d) E-mail
Company is having its technical service unit comprising qualied civil engineers. Product related complaints are directly sent
to Company’s technical services unit. On receipt, Company ofcials visit the customer within 24 to 36 hours. They interact
with Customer and understand the nature of complaint. They collect all needful information including Customer details ,
Complaint nature, Purchase date, application period, Construction methodology as adopted etc. to diagnose the causes.
The demonstration of the quality check, where required, is also done. Customer is explained and assisted by way of
explaining good construction practices including tips to make structure durable. The details of examination and
demonstration is shared with the Customer. If needed, Cement testing is done either at own plant or NABL accredited third
party lab. Test results of samples are communicated and shared with customer. All the complaints are compiled in Feedback
register & shared with Plant head & Quality Control head for doing the needful at their end on monthly basis.
Further, Company also organises programs, face to face interaction and circulates literatures to inform and educate the
Consumers about safe and responsible usage /safe handling of the products to create awareness about different ways to
adopt safe construction practices and correct application procedure & precautionary measures while handling / application
of cement related items.

INTEGRATED ANNUAL REPORT 2022-23 157

2. Turnover of products and/or services as a percentage of turnover from all products/service that carry information
about.
As a percentage to total turnover
Environmental and social parameters relevant to the – product All necessary information as per regulatory
Safe and responsible usage requirements are disclosed on all our products.
Recycling and /or safe disposal Information on cement bags are governed by
BIS guidelines.

3. Number of consumer complaints in respect of the following.

FY 2022-23 Remarks FY 2021-22 Remarks
(Current Financial Year) (Previous Financial Year)
Received Pending Received Pending
during resolution at during resolution at
the year end of year the year end of year
Data privacy 0 0 No complaint 0 0 No complain
received from the received from the
customers on data customers on data
cyber security cyber security
Advertising 0 0 No complaint 0 0 No complain
received received
Cyber-security 0 0 No complaint 0 0 No complain
received received
Delivery of essential NA NA NA NA NA NA
Services
Restrictive Trade 0 0 No complaint 0 0 No complain
Practices received received
Unfair Trade 0 0 No complaint 0 0 No complain
Practices received received
Other (Related 178 0 Resolved 173 0 Resolved
to Quality)

4. Details of instances of product recalls on account of safety issues.

Number Reasons for recall
Voluntary recalls 0 NA
Forced recalls 0 NA

5. Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available,
provide a web-link of the policy.
Yes the Company has a policy on cyber security and data privacy. Weblink is: https://www.jklakshmicement.com/wp-
content/uploads/2023/05/cyber-security-policy.pdf
6. Provide details of any corrective actions taken or under way on issues relating to advertising, and delivery of essential
services; cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty / action
taken by regulatory authorities on safety of products/ services.
One incident for an attempt to breach IT system was recorded in the year 2022-23. However, the attempt was neutralized
before any damage. No data breach for personally identiable information or any other types of information had happened
during year 2022-23.
We have not received any complaint relating to advertising, product recalls or safety of products. Since there were no
complaints there was no need of any corrective action. However, we always strive to ensure that best quality products are
delivered to our customers and we ensure all feedback from our stakeholders is considered in our business processes.

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Leadership Indicators
1. Channels/ platforms where in formation on products and services of the entity can be accessed (provide weblink, if
available).
https://www.jklakshmicement.com/types-of-cement-products/
https://www.jklakshmicement.com/value-added-solutions/
2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.
• On-site services for raw material testing and product application, through Technical Mobile Van.
• Site supervision services to educate customers on right construction methodologies and practices.
• Advise on good construction practices through meets, leaets, brochures etc.
• Training to mason and contractors on good construction practices.
• Product usage tips released through social media.
• Trainings by technical service department.
3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.
We don’t fall under Essential Service Maintenance.
4. Does the entity display product information on the product over and above what is mandated as per local laws?
(Yes/No/NotApplicable) If yes, provide details in brief. Did your entity carry out any survey with regard to consumer
satisfaction relating to the major products / services of the entity, signicant locations of operation of the entity or the
entity as a whole? (Yes/No)
We follow BIS Regulations for the product packaging and information to be contained in the product packaging. However,
in few cases product benets are also displayed on the cement bag. The Company has various channels to gather
information from the customers on its products. Additionally the cross-functional team visits the markets and take feedback
from various customers and stakeholders on regular intervals.
5. Provide the following information relating to data breaches.
a. Number of instances of data breaches along - with Impact
One incident for an attempt to breach IT system was recorded in the year 2022-23. However, the attempt was
neutralized before any damage.
b. Percentage of data breaches involving personally identiable in formation of customers.
No data breach for personally identiable information or any other types of information had happened during year
2022-23.

INTEGRATED ANNUAL REPORT 2022-23 159

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF JK LAKSHMI CEMENT LIMITED standalone nancial statements section of our report. We are
Report on the Audit of the Standalone Financial Statements independent of the Company in accordance with the ‘Code of
Ethics’ issued by the Institute of Chartered Accountants of
Opinion
India (ICAI) together with the independence requirements
We have audited the accompanying standalone nancial that are relevant to our audit of the standalone nancial
statements of JK Lakshmi Cement Limited (“the Company”), statements under the provisions of the Act and the Rules
which comprise the balance sheet as at March 31, 2023, the made thereunder, and we have fullled our other ethical
statement of prot and loss (including other comprehensive responsibilities in accordance with these requirements and
loss), the statement of changes in equity and the cash ows the ICAI’s Code of Ethics. We believe that the audit evidence
statement for the year then ended, and a summary of the we have obtained is sufcient and appropriate to provide a
signicant accounting policies and other explanatory basis for our audit opinion on the standalone nancial
information (hereinafter referred to as the “standalone statements.
nancial statements”).
Key Audit Matters
In our opinion and to the best of our information and
Key audit matters are those matters that, in our professional
according to the explanations given to us, the aforesaid
judgment, were of most signicance in our audit of the
standalone nancial statements give the information
standalone nancial statements for the nancial year ended
required by the Companies Act, 2013 (the ‘Act’) in the
March 31, 2023. These matters were addressed in the context
manner so required and give a true and fair view in
of our audit of the standalone nancial statements as a
conformity with the Indian Accounting Standards (‘Ind AS’)
whole, and in forming our opinion thereon, and we do not
prescribed under section 133 of the Act read with the
provide a separate opinion on these matters.
Companies (Indian Accounting Standards) Rules, 2015, as
amended, and other accounting principles generally We have determined the matters described below to be the
accepted in India, of the state of affairs of the Company as at key audit matters to be communicated in our report. We have
March 31, 2023, its prot including other comprehensive fullled the responsibilities described in the Auditor’s
loss, changes in equity and its cash ows for the year ended responsibilities for the audit of the standalone nancial
on that date. statements section of our report, including in relation to
these matters. Accordingly, our audit included the
Basis for opinion
performance of procedures designed to respond to our
We conducted our audit of the standalone nancial assessment of the risks of material misstatement of the
statements in accordance with the Standards on Auditing standalone nancial statements. The results of our audit
(SAs) specied under section 143(10) of the Act. Our procedures, including the procedures performed to address
responsibilities under those Standards are further described the matters below, provide the basis for our audit opinion on
in the Auditor’s Responsibilities for the Audit of the the accompanying nancial statements.

Key Audit Matters

1 Revenue recognition - Discounts, incentives, Our procedures included:
rebates etc. For recognition of revenue:
• Recognition, measurement, presentation and disclosure • We performed walkthroughs to understand the
as per Ind AS-115 “Revenue from Contracts with key processes and identify key controls related
Customers”. Ind AS 115 “Revenue from Contracts with
(Refer Sub-note No III. (13) of Note 1 of Accounting Policy). Customers”
• We performed revenue cut-off testing, by
• Revenue is measured net of discounts, incentives, reference to bill dates of sales recorded either
rebates etc. given to the customers on the Company’s side of the nancial year end had legally
sales. completed; and
• Selected a sample of sales contracts and read,
• Due to the Company’s presence different marketing analyze and identied the distinct performance
regions within the country and the competitive business obligations in these contracts.

160 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

Key Audit Matters

environment, the assessment of the various types of For Recognition of discount, incentive, and rebate
discounts, incentives and rebate schemes, is material
and considered to be complex and judgmental. • Assessing the appropriateness of the Company’s
accounting policies relating to discounts,
• Therefore, there is a risk of revenue being misstated as incentives, rebates, etc by comparing with
a result of faulty estimations over discounts, incentives, applicable accounting standards.
and rebates. • Assessing the design and testing the
implementation and operating effectiveness of
• Given the judgement required to estimate the amount Company’s internal controls over the approvals,
of provisions, this is a key audit matter. calculation, provision and disbursement of
discounts, incentives and rebates.
• Obtaining management’s calculations for
discounts, incentives and rebates accruals under
applicable schemes on a sample basis and
comparing the accruals made with the approved
schemes.
• Obtaining and inspecting, on a sample basis,
supporting documentation for discounts,
incentives and rebates recorded and disbursed
during the year as well as credit notes issued after
the year end date to determine whether these
were recorded appropriately.
• Comparing the historical trend of payments and
reversal of discounts, incentives and rebates to
provisions made to determine the
appropriateness of current year provisions.
• Examining manual journals posted to discounts,
rebates and incentives to identify unusual or
irregular items.
Based on our audit procedures we have concluded
that revenue, discount, incentive and rebates is
appropriately recognized, and that there was no
evidence of management bias.
2 Evaluation of uncertain civil and indirect tax positions Our Procedure included:
and recoverability of amount deposited under
protest as recoverable Obtained details of completed tax assessments of
earlier years and demands as on March 31, 2023
The Company has material uncertain civil and indirect tax from management. We have done assessment of the
positions including matters under dispute which involves managements underlying assumptions in estimating
signicant judgment to determine the possible outcome the tax provision and the possible outcome of the
of these disputes. disputes.
The eventual outcome of these litigations is uncertain, Based on management estimates and Independent
and the positions taken by the management are based legal opinion taken by Management of the
on the application of signicant judgement and Company, the liability against these matters are not
estimation. The review of these matters requires yet certain hence the same has been shown as
application and interpretation of tax laws and reference contingent liability in the current nancial
to applicable judicial pronouncements. statements.
Based on management judgement and the advice from Our procedures on verication of the management’s
legal and tax consultants and considering the merits assessment of these matters included:

INTEGRATED ANNUAL REPORT 2022-23 161

 of the case, the Company has recognized provisions • Understanding and evaluating process and
wherever required and for the balance matters, where controls designed and implemented by the
the management expects favourable outcome, management including testing of relevant
these litigations have been disclosed as controls.
contingent liabilities in the nancial statements • Gaining an understanding of the civil and tax
unless the possibility of out ow of resources related litigations through discussions with the
is considered to be remote. management, including the signicant
developments, additions and settlements during
Given the uncertainty and application of the year and subsequent to 31 March 2023.
signicant judgment in this area in terms of • Inspecting demand notices received from various
the eventual outcome of litigations, we tax authorities and evaluating the Company’s
determined this to be a key audit matter. written responses to those matters.
• Evaluating the management’s assessment on the
likely outcome and potential magnitude by
involving experts on complex or signicant
matters as considered necessary; and
• Assessing the adequacy of the Company’s
disclosures.
We did not identify any signicant exceptions to the
management’s assessment of the ongoing civil,
income tax and indirect tax litigations as a result of
the above procedures.

Information Other than the Standalone Financial and other accounting principles generally accepted in India.
Statements and Auditor’s Report Thereon This responsibility also includes maintenance of adequate
The Company’s Board of Directors is responsible for the accounting records in accordance with the provisions of the
preparation of the other information. The other information Act for safeguarding the assets of the Company and for
comprises the information included in the Company’s Annual preventing and detecting frauds and other irregularities;
Report but does not include the standalone nancial selection and application of appropriate accounting policies;
statements and our auditor’s report thereon. making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of
Our opinion on the standalone nancial statements does not
adequate internal nancial controls, that were operating
cover the other information and we do not express any form
effectively for ensuring the accuracy and completeness of the
of assurance conclusion thereon.
accounting records, relevant to the preparation and
In connection with our audit of the standalone nancial presentation of the standalone nancial statements that give
statements, our responsibility is to read the other information a true and fair view and are free from material misstatement,
and, in doing so, consider whether the other information is whether due to fraud or error.
materially inconsistent with the nancial statements or our
In preparing the standalone nancial statements,
knowledge obtained in the audit or otherwise appears to be
management is responsible for assessing the Company’s
materially misstated.
ability to continue as a going concern, disclosing, as
If, based on the work we have performed, we conclude that applicable, matters related to going concern and using the
there is a material misstatement of this other information, we going concern basis of accounting unless management either
are required to report that fact. We have nothing to report in intends to liquidate the Company or to cease operations, or
this regard. has no realistic alternative but to do so.
Management’s Responsibility for the Standalone The Board of Directors is responsible for overseeing the
Financial Statements Company’s nancial reporting process.
The Company’s Board of Directors is responsible for the Auditor’s Responsibilities for the Audit of the Standalone
matters stated in section 134(5) of the Act with respect to the Financial Statements
preparation of these standalone nancial statements that
Our objectives are to obtain reasonable assurance about
give a true and fair view of the nancial position, nancial
whether the standalone nancial statements as a whole are
performance, total comprehensive income, changes in equity
free from material misstatement, whether due to fraud or
and cash ows of the Company in accordance with the Ind AS
error, and to issue an auditor’s report that includes our

162 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

opinion. Reasonable assurance is a high level of assurance but timing of the audit and signicant audit ndings, including
is not a guarantee that an audit conducted in accordance any signicant deciencies in internal control that we identify
with SAs will always detect a material misstatement when it during our audit.
exists. Misstatements can arise from fraud or error and are We also provide those charged with governance with a
considered material, if individually or in the aggregate, they statement that we have complied with relevant ethical
could reasonably be expected to inuence the economic requirements regarding independence, and to communicate
decisions of users taken on the basis of these standalone with them all relationships and other matters that may
nancial statements. reasonably be thought to bear on our independence, and
As part of an audit in accordance with SAs, we exercise where applicable, related safeguards.
professional judgment and maintain professional skepticism From the matters communicated with those charged with
throughout the audit. We also: governance, we determine those matters that were of most
• Identify and assess the risks of material misstatement of signicance in the audit of the standalone nancial
the standalone nancial statements, whether due to statements for the year ended March 31, 2023, and are
fraud or error, design and perform audit procedures therefore the key audit matters. We describe these matters in
responsive to those risks, and obtain audit evidence that our auditor’s report unless law or regulation precludes public
is sufcient and appropriate to provide a basis for our disclosure about the matter or when, in extremely rare
opinion. The risk of not detecting a material circumstances, we determine that a matter should not be
misstatement resulting from fraud is higher than for communicated in our report because the adverse
one resulting from error, as fraud may involve collusion, consequences of doing so would reasonably be expected to
forgery, intentional omissions, misrepresentations, or outweigh the public interest benets of such
the override of internal control. communication.
• Obtain an understanding of internal nancial controls Report on Other Legal and Regulatory Requirements
relevant to the audit in order to design audit procedures 1 As required by the Companies (Auditor’s Report) Order,
that are appropriate in the circumstances. Under 2020 (“the Order”) issued by the Central Government in
section 143(3)(i) of the Act, we are also responsible for terms of Section 143(11) of the Act, we give in
expressing our opinion on whether the Company has “Annexure A” a statement on the matters specied in
adequate internal nancial controls system in place and paragraphs 3 and 4 of the Order.
the operating effectiveness of such controls.
2 As required by Section 143(3) of the Act, based on our
• Evaluate the appropriateness of accounting policies audit we report that:
used and the reasonableness of accounting estimates
a) We have sought and obtained all the information
and related disclosures made by management.
and explanations which to the best of our
• Conclude on the appropriateness of management’s use knowledge and belief were necessary for the
of the going concern basis of accounting and, based on purposes of our audit;
the audit evidence obtained, whether a material
b) In our opinion, proper books of account as
uncertainty exists related to events or conditions that
required by law have been kept by the Company so
may cast signicant doubt on the Company’s ability to
far as it appears from our examination of those
continue as a going concern. If we conclude that a
books;
material uncertainty exists, we are required to draw
attention in our auditor’s report to the related c) The balance sheet, the statement of prot and loss
disclosures in the standalone nancial statements or, if including other comprehensive income/(loss),
such disclosures are inadequate, to modify our opinion. statement of changes in equity and the statement
Our conclusions are based on the audit evidence of cash ows dealt with by this Report are in
obtained up to the date of our auditor’s report. agreement with the relevant books of accounts;
However, future events or conditions may cause the d) In our opinion, the aforesaid standalone nancial
Company to cease to continue as a going concern. statements comply with the Accounting Standards
• Evaluate the overall presentation, structure and content specied under Section 133 of the Act, read with
of the standalone nancial statements, including the relevant rules made thereunder, as amended and
disclosures, and whether the standalone nancial other accounting principles generally accepted in
statements represent the underlying transactions and India;
events in a manner that achieves fair presentation. e) On the basis of the written representations
We communicate with those charged with governance received from the directors as on March 31, 2023,
regarding, among other matters, the planned scope and taken on record by the Board of Directors, none of

INTEGRATED ANNUAL REPORT 2022-23 163

 the directors is disqualied as on March 31, 2023, funds have been received by the Company
from being appointed as a director in terms of from any person or entity, including foreign
Section 164 (2) of the Act; entities (“Funding Parties”), with the
f) With respect to the adequacy of the internal understanding, whether recorded in
nancial controls over nancial reporting of the writing or otherwise, that the Company
Company and the operating effectiveness of such shall, whether, directly or indirectly, lend or
controls, refer to our separate Report in “Annexure invest in other persons or entities identied
B”. Our report expresses an unmodied opinion on in any manner whatsoever by or on behalf
the adequacy and operating effectiveness of the of the Funding Party (“Ultimate
Company’s internal nancial controls over Beneciaries”) or provide any guarantee,
nancial reporting; security or the like on behalf of the Ultimate
Beneciaries; and
g) In our opinion, the managerial remuneration for
the year ended March 31, 2023, has been paid / c) Based on such audit procedures that were
provided by the Company to its directors in considered reasonable and appropriate in
accordance with the provisions of Section 197 the circumstances, nothing has come to
read with Schedule V to the Act; our notice that has caused us to believe
that the representations under sub-clause
h) With respect to the other matters to be included in
iv (a) and iv (b) contain any material
the Auditor’s Report in accordance with Rule 11 of
misstatement.
the Companies (Audit and Auditors) Rules, 2014,
as amended in our opinion and to the best of our v. a) The nal dividend relating to nancial year
information and according to the explanations 2021-22 declared or paid during the year
given to us: ended March 31, 2023, by the Company is in
compliance with section 123 of the Act.
i. The Company has disclosed the impact of
pending litigations as at March 31, 2023, on b) As stated in Note 50 to the accompanying
its nancial position in its standalone nancial standalone nancial statements, the Board of
statements- Refer note 54, 55, 56 and 57; Directors of the Company have proposed nal
dividend for the year ended March 31, 2023,
ii. The Company has made provision, as required
which is subject to the approval of the
under the applicable law or accounting
members at the ensuing Annual General
standards, for material foreseeable losses, if
Meeting. The dividend declared is in
any, on long-term contracts including
accordance with section 123 of the Act to the
derivative contracts.
extent it applies to declaration of dividend.
iii. There has been no delay in transferring
vi. Proviso to Rule 3(1) of the Companies (Accounts)
amounts, required to be transferred, to the
Rules, 2014 for maintaining books of account
Investor Education and Protection Fund by the
using accounting software which has a feature of
Company.
recording audit trail (edit log) facility is applicable
iv. a) The management has represented that, to to the Company with effect from April 1, 2023,
the best of its knowledge and belief, no and accordingly, reporting under Rule 11(g) of
funds have been advanced or loaned or Companies (Audit and Auditors) Rules, 2014
invested by the Company to or in any other is not applicable for the nancial year ended
person or entities, including foreign March 31, 2023.
entities (“Intermediaries”), with the
understanding, whether recorded in For S. S. KOTHARI MEHTA & COMPANY
writing or otherwise, that the Intermediary Chartered Accountants
shall, whether, directly or indirectly lend or ICAI Firm Registration No. 000756N
invest in other persons or entities identied
in any manner whatsoever by or on behalf SUNIL WAHAL
of the Company (“Ultimate Beneciaries”) Partner
or provide any guarantee, security or the Membership No:- 087294
like on behalf of the Ultimate Beneciaries;
b) The management has represented that, to Place: New Delhi
the best of its knowledge and belief, no Date: May 19, 2023
UDIN: 23087294BGTGTT4900

164 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

Annexure A to the Independent Auditors’ Report to the members of JK Lakshmi Cement Limited dated May 19, 2023.
Report on the matters specied in paragraph 3 of the Companies (Auditor’s Report) Order, 2020 (“the Order’) issued by the
Central Government of India in terms of section 143(11) of the Companies Act, 2013 (“the Act”) as referred to in
paragraph 1 of ‘Report on Other Legal and Regulatory Requirements’ section.
(i) (a)(A) The Company has maintained proper records showing full particulars including quantitative details and situation of
property, plant and equipment.
(a)(B) The Company has maintained proper records showing full particulars of intangibles assets.
(b) The Company has a regular program of physical verication of its property, plant and equipment. All property, plant
and equipment have been veried by the management according to the program. No material discrepancies were
noticed on such verication undertaken during the year.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, the title deeds of immovable properties (other than properties where the Company is the lessee and the
lease agreements are duly executed in favor of the lessee)are held in the name of the Company except as stated in
noted no. 2 of the standalone nancial statements.
Description of Gross Carrying Held in the Whether promoter, Period held indicate Reason for not being held in the
Prpoerty (Value in name of director or their range, where name of company
` Crore) relative or employee appropriate
Lease Hold Land 4.02 Bihar Industrial No July'2015 BIADA has given a notice to the
Development Company on 30.06.2020 that the
Authority (BIADA). amount paid by Company is
forfeited. Against the Company’s
appeal the Hon’ble High Court has
directed BIADA to relook into
allotment of alternative land.
BIADA has agreed vide letter
dtd- 25.03.2022 for allotment of
fresh land elsewhere can be
looked into.
(d) The Company has not revalued its property, plant and equipment (including right of use assets) or intangible assets
during the year ended March 31, 2023.
(e) There are no proceedings initiated or are pending against the Company for holding any benami property under the
Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
(ii) (a) The management has conducted physical verication of inventory including inventory lying with third parties at
reasonable intervals during the year. In our opinion the coverage and the procedure of such verication by the
management is appropriate. No Discrepancies of 10% or more in aggregate for each class of inventory were noticed on
such physical verication.
(b) As disclosed in note 72(vii) to the standalone nancial statements, the Company has been sanctioned working capital
limits in excess of Rs. ve crores in aggregate from banks and/or nancial institutions during the year on the basis of
security of current assets of the Company. The Company has not utilized limit during the year. The quarterly returns of
current assets led by the Company with banks does not have material variances with books of account.
(iii) (a) During the year the Company has provided loans and provided guarantee to companies, rms, Limited Liability
Partnerships or any other parties. Details is as follows:

Amount ` in crores
Guarantees Security Loans
Aggregate amount granted/ provided
during the year
- Subsidiaries 750 - 85.40
- Joint Ventures - - -
- Associates - - -
- Others - - -
Balance outstanding as at balance sheet
date in respect of above cases
- Subsidiaries 1052.13 - 85.40
- Joint Ventures - - -
- Associates - - -
- Others - - 20.65

INTEGRATED ANNUAL REPORT 2022-23 165

 (b) In our opinion and according to the information and explanation given to us, the terms and conditions of the grant of all
loans, guarantees provided and investments made are, prima facie, not prejudicial to the interest of the Company.
Further, the Company has not given any security or provided any advances in the nature of loans during the year.
(c) In respect of loan(s) and advance in the nature of loans granted to companies, rms, Limited Liability Partnerships or any
other parties, the schedule of repayment of principal and payment of interest has been stipulated and the repayment or
receipts are regular.
(d) There are no amounts of loans and advances in the nature of loans granted to companies or any other parties which are
overdue for more than ninety days.
(e) There were no loans or advance in the nature of loan granted to companies, rms, Limited Liability Partnerships or any
other parties, which was fallen due during the year, that have been renewed or extended or fresh loans granted to settle
the overdues of existing loans given to the same parties.
(f) The Company has not granted any loans or advances in the nature of loans, either repayable on demand or without
specifying any terms or period of repayment to companies, accordingly, the requirement to report on clause 3(iii)(f) of
the Order is not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, provisions of Section 185 and 186 of the Act,
wherever applicable, in respect of loans to directors including entities in which they are interested and in respect of loans and
advances given, investments made and, guarantees, and securities given have been complied with by the Company.
(v) In our opinion and according to the information and explanations given to us, the Company has complied with the directive
issued by the Reserve Bank of India and the provisions of Section 73 to76 of the Act or any other relevant provisions of the
Act and the rules framed there under (to the extent applicable) with regard to deposits accepted from public. We have been
informed that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any Court or other Tribunal in this regard.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central
Government for the maintenance of cost records under section 148(1) of the Act in respect of the Company’s products to
which the said rules are made applicable and are of the opinion that prima facie, the prescribed records have been made and
maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they
are accurate or complete.
(vii) (a) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues
including goods and services tax, provident fund, employees’ state insurance, income-tax, sales-tax, service tax, duty of
customs, duty of excise, value added tax, cess and other statutory dues with the appropriate authorities to the extent
applicable and there are no undisputed statutory dues payable as at March 31, 2023, for a period of more than six
months from the date they become payable.
(b) According to the records and information & explanations given to us, certain dues in respect of goods and services tax,
provident fund, employees’ state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value
added tax, cess, and other statutory dues that have not been deposited with the appropriate authorities on account of
dispute and the forum where the dispute is pending are given below:

Name of the Nature of Amount Period Forum where the

Statue the Dues in Rs crore dispute is pending
Sales Tax Act Sales Tax 0.43 1992-1994
8.08 2005-2006 Rajasthan High Court,
0.42 1995-2000 Jodhpur
23.83 2015- 2020
1.90 2020-2021 Bilaspur High Court
Total Sales Tax 34.66
Rajasthan Finance Act, 2006 and Land Tax on 10.46 2006 to 2012-13 Hon'ble Supreme Court
Rajasthan Finance Act, 2020 Mining & Non- 1.04 2019-20
Mining land 2.01 2020-21 Rajasthan High Court, Jodhpur
2.01 2021-22
2.72 2022-23
Total Land Tax 18.24
Entry Tax Exemption Entry Tax 4.77 2014-2017 Bilaspur High Court
(Entry Tax Act, 1976)
Total Entry Tax 4.77

166 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

Name of the Nature of Amount Period Forum where the

Statue the Dues in Rs crore dispute is pending
Central Excise Act Excise Duty 1.77 2015-2018 Add Commissioner, Jodhpur
Cess on mining 1.22 1996-97 Rajasthan High Court, Jodhpur
dispatches
Cenvat on Clean 2.28 2015-2017 CESTAT
Energy Cess
Coal Cess 6.59 2017-2022 DGGI Raipur
Total Excise 11.86
Finance Act , 1994 Service Tax 6.64 2013-2014 Rajasthan High Court, Jodhpur
2.95 2016-18 CESTAT, New Delhi
Total Service Tax 9.59
Goods and Service Tax Act, GST on 2.33 2017-2021 Additional Commissioner
2017 Development and (Preventive)
Environment Cess
Total Goods and 2.33
Service Tax
Income Tax Act Income Tax 1.67 2012-15 Commissioner of Income Tax,
Kolkata
TCS on DMF 0.56 2016-19 Bilaspur High Court
Total Income Tax 2.23
Others:
The Mines and Minerals National Mineral 0.80 August 2015 to Revision Application before
(Development and Regulation) Exploration Fund May 2015 Revisionary Authority, Ministry
Act of Mines, New Delhi
Environment and Health Cess Cess on 35.62 2008 to 2017 Supreme Court
(Rajasthan Finance Act, 2008; limestone
Rajasthan Environment and extraction
Health Cess Rules, 2008)
The Chhatisgarh Gram Panchayat Road dispatches 9.78 April 15- Mar 19 Bilaspur High Court
Terminal Tax (Chhattisgarh of clinker
Panchayat Raj Act, 1993)
Electricity Duty Act Electricity Duty 6.05 Nov'17 to Chief Electrical Inspector –
on WHR/CPP Sept'22 Raipur
Plant
Electricity Duty 13.03 March'15 to Asst. Comm. Commercial
on WHR/CPP March'23 Taxes, Sirohi
Plant
E. Duty/WC/ 29.12 July 10 to July 13 Jodhpur High Court
Cross Subsidy
Cross Subsidy 1.67 2022-23 Jodhpur High Court
on Solar Power
purchase
Total others 96.07

(viii) The Company has not surrendered or disclosed any transaction, previously unrecorded in the books of account, in the tax
assessments under the Income Tax Act, 1961 as income during the year. Accordingly, the requirement to report on clause
3(viii) of the Order is not applicable to the Company.
(ix) (a) The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to
any lender.

INTEGRATED ANNUAL REPORT 2022-23 167

 (b) The Company has not been declared willful defaulter by any bank or nancial institution or government or any
government authority.
(c) Term loans were applied for the purpose for which the loans were obtained.
(d) On an overall examination of the nancial statements of the Company, no funds raised on short-term basis have
been used for long-term purposes by the Company.
(e) On an overall examination of the nancial statements of the Company, the Company has not taken any funds from
any entity or person on account of or to meet the obligations of its subsidiaries or associates.
(f) The Company has not raised loans during the year on the pledge of securities held in its subsidiaries or associate
companies. Hence, the requirement to report on clause (ix)(f) of the Order is not applicable to the Company.
(x) (a) The Company has not raised any money during the year by way of initial public offer / further public offer (including
debt instruments) hence, the requirement to report on clause 3(x)(a) of the Order is not applicable to the Company.
(b) The Company has not made any preferential allotment or private placement of shares /fully or partially or optionally
convertible debentures during the year under audit and hence, the requirement to report on clause 3(x)(b) of the
Order is not applicable to the Company.
(xi) (a) No fraud by the Company or no fraud on the Company has been noticed or reported during the year.
(b) During the year, no report under sub-section (12) of section 143 of the Companies Act, 2013 has been led by [cost
auditor/ secretarial auditor or by us] in Form ADT – 4 as prescribed under Rule 13 of Companies (Audit and Auditors)
Rules, 2014 with the Central Government.
(c) As represented to us by the management, there are no whistle blower complaints received by the Company during
the year.
(xii) (a) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3(xii)(a) to 3(xii)(c) of the
order are not applicable to the Company and hence not commented upon.
(xiii) In our opinion and according to the information and explanations given to us, the Company is in compliance with section
177 and 188 of the Act where applicable, for all transactions with the related parties and the details of related parties
transactions have been disclosed in the standalone nancial statements as required by the applicable Indian Accounting
standards.
(xiv) (a) The Company has an internal audit system commensurate with the size and nature of its business.
(b) The internal audit reports of the Company issued till the date of the audit report, for the period under audit have
been considered by us.
(xv) According to the information and explanations given by the management, the Company has not entered into any non-
cash transactions with directors or persons connected with him as referred to in Section 192 of the Act.
(xvi) (a) The provisions of section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934) are not applicable to the Company.
Accordingly, the requirement to report on clause (xvi)(a) of the Order is not applicable to the Company.
(b) The Company has not conducted any Non-Banking Financial or Housing Finance activities without obtained a valid
Certicate of Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act, 1934.
(c) The Company is not a Core Investment Company as dened in the regulations made by Reserve Bank of India.
Accordingly, the requirement to report on clause 3(xvi) of the Order is not applicable to the Company.
(d) The Group has two Core Investment Company as part of the Group.
(xvii) The Company has not incurred cash losses in the current nancial year and preceding nancial year.
(xviii) There has been no resignation of the statutory auditors during the year and accordingly requirement to report on Clause
3(xviii) of the Order is not applicable to the Company.
(xix) On the basis of the nancial ratios disclosed in note 52 to the standalone nancial statements, ageing and expected dates
of realization of nancial assets and payment of nancial liabilities, other information accompanying the nancial
statements, our knowledge of the Board of Directors and management plans and based on our examination of the
evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material
uncertainty exists as on the date of the audit report that Company is not capable of meeting its liabilities existing at the
date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however,

168 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on
the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling
due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall
due.
(xx) (a) In respect of other than ongoing projects, there are no unspent amounts that are required to be transferred to a fund
specied in Schedule VII of the Companies Act (the Act), in compliance with second proviso to sub section 5 of
section 135 of the Act. This matter has been disclosed in note 62(a) to the standalone nancial statements.
(xx) (b) There are no unspent amounts in respect of ongoing projects, that are required to be transferred to a special account
in compliance of provision of sub section (6) of section 135 of Companies Act. This matter has been disclosed in note
62(a) to the standalone nancial statements.
(xxi) The reporting under clause 3(xxi) of the Order is not applicable in respect of audit of standalone nancial statements of the
Company. Accordingly, no comment has been included in respect of said clause under this report.

For S. S. KOTHARI MEHTA & COMPANY

Chartered Accountants
ICAI Firm Registration No. 000756N

Place: New Delhi SUNIL WAHAL

Date: May 19, 2023 Partner
UDIN: 23087294BGTGTT4900 Membership No:- 087294

INTEGRATED ANNUAL REPORT 2022-23 169

Annexure B to the Independent Auditors’ Report to the Members of JK Lakshmi Cement Limited dated May 19, 2023 on its
standalone nancial statements

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the
Act”) as referred to in paragraph 2(f) of ‘Report on Other Legal and Regulatory Requirements’ section

We have audited the internal nancial controls over nancial reporting of JK Lakshmi Cement Limited (“the Company”) as of
March 31, 2023, in conjunction with our audit of the standalone nancial statements of the Company for the year ended on
that date.

Management’s Responsibility for Internal Financial Controls

The Company’s Management is responsible for establishing and maintaining internal nancial controls based on “the internal
control over nancial reporting criteria established by the Company considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India” (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal
nancial controls that were operating effectively for ensuring the orderly and efcient conduct of its business, including
adherence to the Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of reliable nancial information, as required
under the Act.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's internal nancial controls over nancial reporting based on our audit.

We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the “Guidance Note”) and the Standards on Auditing as specied under section 143(10) of the Act, to the extent applicable to an
audit of internal nancial controls, both applicable to an audit of Internal Financial Controls and both issued by the ICAI. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal nancial controls over nancial reporting was established and
maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal nancial controls system
over nancial reporting and their operating effectiveness.

Our audit of internal nancial controls over nancial reporting included obtaining an understanding of internal nancial controls
over nancial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement,
including the assessment of the risks of material misstatement of the nancial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufcient and appropriate to provide a basis for our audit opinion on the
Company’s internal nancial controls system over nancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal nancial control over nancial reporting is a process designed to provide reasonable assurance regarding
the reliability of nancial reporting and the preparation of nancial statements for external purposes in accordance with generally
accepted accounting principles. A company's internal nancial control over nancial reporting includes those policies and
procedures that:

a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reect the transactions and
dispositions of the assets of the company;

b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of nancial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the
company are being made only in accordance with authorizations of management and directors of the company; and

c) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company's assets that could have a material effect on the nancial statements.

170 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal nancial controls over nancial reporting, including the possibility of collusion or
improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also,
projections of any evaluation of the internal nancial controls over nancial reporting to future periods are subject to the risk that
the internal nancial control over nancial reporting may become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, to the best of our information and according to the explanations, given to us the Company has, in all material
respects, an adequate internal nancial controls system over nancial reporting and such internal nancial controls over nancial
reporting were operating effectively as at March 31, 2023, based on the internal control over nancial reporting criteria
established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the ICAI.

For S. S. KOTHARI MEHTA & COMPANY

Chartered Accountants
ICAI Firm Registration No. 000756N

Place: New Delhi SUNIL WAHAL

Date: May 19, 2023 Partner
UDIN: 23087294BGTGTT4900 Membership No:- 087294

INTEGRATED ANNUAL REPORT 2022-23 171

JK Lakshmi Cement Limited
Balance Sheet as at 31st March 2023 ` In Crore (10 Million)
Note No. As at As at
31st March 2023 31st March 2022
ASSETS
(1) Non-current Assets
(a) Property, Plant and Equipment 2 2,701.47 2,719.21
(b) Capital work-in-progress 3 64.92 112.13
(c) Investment Property 4 0.50 0.53
(d) Intangible Assets 5 5.33 4.41
(e) Financial Assets
(i) Investments 6 414.08 389.91
(ii) Loans 7 17.32 19.71
(iii) Others 8 79.00 33.05
(f) Other Non-Current Assets 9 45.23 26.49
3,327.85 3,305.44
(2) Current Assets
(a) Inventories 10 700.40 491.19
(b) Financial Assets
(i) Investments 11 510.24 548.03
(ii) Trade Receivables 12 60.51 34.48
(iii) Cash and Cash Equivalents 13 138.92 67.13
(iv) Bank Balance other than (iii) 14 195.79 271.70
(v) Loans 15 88.73 23.33
(vi) Others 16 20.63 14.43
(c) Other Current Assets 17 163.06 83.27
(d) Current Tax Assets (Net) 31 5.04 -
1,883.32 1,533.56
TOTAL ASSETS 5,211.17 4,839.00
EQUITY AND LIABILITIES
EQUITY
(a) Equity Share Capital 18 58.85 58.85
(b) Other Equity 2,664.89 2,393.50
2,723.74 2,452.35
LIABILITIES
(1) Non-current Liabilities
(a) Financial Liabilities
(i) Borrowings 19 556.42 774.22
(ii) Lease Liabilities 20 23.90 21.05
(iii) Other Financial Liabilities 21 290.97 244.58
(b) Provisions 22 15.59 11.05
(c) Deferred Tax Liabilities (Net) 23 159.57 94.33
(d) Other Non-Current Liabilities 24 90.65 94.27
1,137.10 1,239.50
(2) Current Liabilities
(a) Financial Liabilities
(i) Borrowings 25 254.81 188.67
(ii) Lease Liabilities 26 9.52 8.96
(iii) Trade Payables 27
Micro and Small Enterprises 16.28 8.78
Others 495.68 289.55
(iii) Other Financial Liabilities 28 327.55 352.20
(b) Other Current Liabilities 29 241.45 283.33
(c) Provisions 30 5.04 15.25
(d) Current Tax Liabilities (Net) 31 - 0.41
1,350.33 1,147.15
TOTAL EQUITY AND LIABILITIES 5,211.17 4,839.00

Signicant Accounting Policies 1 For and on behalf of the Board of Directors

Notes on nancial statements 2-74 B.H. SINGHANIA Chairman
As per our report of even date VINITA SINGHANIA Vice Chairman & Managing Director
For S. S. KOTHARI MEHTA & COMPANY

}
Chartered Accountants Dr. R.P. SINGHANIA
Firm Registration No.: 000756N N.G. KHAITAN
SUNIL WAHAL SUDHIR A. BIDKAR RAVI JHUNJHUNWALA Directors
Partner Chief Financial Ofcer SADHU RAM BANSAL
Membership No.: 087294 BHASWATI MUKHERJEE
Place: New Delhi AMIT CHAURASIA
Date: 19th May, 2023 Company Secretary ARUN KUMAR SHUKLA President & Director

172 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Statement of Prot and Loss for the year ended 31st March 2023 ` In Crore (10 Million)
Note No. For the year ended For the year ended
March 31 2023 March 31 2022

I. Revenue from Operations 32 6,071.05 5,040.78

II. Other Income 33 62.23 67.25
III. Total Income (I+II) 6,133.28 5,108.03
IV. Expenses :-
Cost of Materials Consumed 34 925.69 806.97
Purchases of Stock-in-Trade 35 689.25 478.12
Change in Inventories of Finished Goods,
Work-in-Progress and Stock - in - Trade 36 (33.20) (46.80)
Employee Benets Expense 37 349.13 326.44
Power and Fuel 38 1,543.91 1,065.64
Transport, Clearing & Forwarding Charges 39 1,208.60 1,042.82
Finance Costs 40 91.50 96.31
Depreciation and Amortization Expense 41 193.54 190.52
Other Expenses 42 683.40 566.32
Total Expenses (IV) 5,651.82 4,526.34
V. Prot before Exceptional Items and Tax (III-IV) 481.46 581.69
VI. Exceptional Items 71 - 23.39
VII. Prot before tax (V-VI) 481.46 558.30
VIII. Tax Expense 49
(1) Current Tax 147.80 143.76
(2) Deferred Tax 2.26 (41.21)
(3) Tax Adjustments for Earlier Years 0.63 29.53
Total Tax Expense (VIII) 150.69 132.08
IX. Prot for the Year 330.77 426.22
X Other Comprehensive Income/(Loss)
Items that Will Not be Reclassied to Prot or Loss in Subsequent Periods
(1) Re-measurement (losses)/Gain on dened benet plans (0.83) (13.32)
(2) Income tax effect 0.29 4.66
Total Other Comprehensive Income/(Loss) (X) (0.54) (8.66)
XI Total Comprehensive Income For The Year (IX + X) 330.23 417.56
XII Earnings per equity share (Face Value of ` 5 each) 43
Basic Earnings per equity share (`): 28.11 36.22
Diluted Earnings per equity share (`): 28.11 36.22

Signicant Accounting Policies 1 For and on behalf of the Board of Directors

Notes on nancial statements 2-74 B.H. SINGHANIA Chairman
As per our report of even date VINITA SINGHANIA Vice Chairman & Managing Director
For S. S. KOTHARI MEHTA & COMPANY

}
Chartered Accountants Dr. R.P. SINGHANIA
Firm Registration No.: 000756N N.G. KHAITAN
SUNIL WAHAL SUDHIR A. BIDKAR RAVI JHUNJHUNWALA Directors
Partner Chief Financial Ofcer SADHU RAM BANSAL
Membership No.: 087294 BHASWATI MUKHERJEE
Place: New Delhi AMIT CHAURASIA
Date: 19th May, 2023 Company Secretary ARUN KUMAR SHUKLA President & Director

INTEGRATED ANNUAL REPORT 2022-23 173

JK Lakshmi Cement Limited
Statement of Changes in Equity for the year ended 31st March, 2023
A. Equity Share Capital ` In Crore (10 Million)
st st
Particulars As at 1 Change during As at 31 Change during As at 31st
April 2021 the year March 2022 the year March 2023
Equity Shares (with equal rights) 117,670,066
(Previous year 117,670,066) of ` 5 each 58.84 - 58.84 - 58.84
fully paid up
Add: Forfeited Shares 0.01 - 0.01 - 0.01
Total 58.85 - 58.85 - 58.85

B. Other Equity ` In Crore (10 Million)

Reserves and Surplus Items of Other
Comprehensive
Income, that will
Capital Securities Debenture General Retained not be reclassied
Particulars Redemption Premium Redemption Reserve Earnings to Statement of Total
Reserve Reserve Prot and Loss
Re-measurement
of Net Dened
Benet Plans

Balance as at 1st April'2021 25.64 88.65 37.50 950.74 917.43 0.11 2,020.07
Prot for the Year - - - - 426.22 - 426.22
Dividend payment - - - - (44.13) - (44.13)
Transfer from Debenture
Redemption Reserve - - (37.50) - 37.50 - -
Other Comprehensive Income/(Loss) - - - - - (8.66) (8.66)
Balance as at 31st March'2022 25.64 88.65 - 950.74 1,337.02 (8.55) 2,393.50
Prot for the Year - - - - 330.77 - 330.77
Dividend payment - - - - (58.84) - (58.84)
Other Comprehensive Income/(Loss) - - - - - (0.54) (0.54)
Balance as at 31st March'2023 25.64 88.65 - 950.74 1,608.95 (9.09) 2,664.89

Signicant Accounting Policies 1 For and on behalf of the Board of Directors

Notes on nancial statements 2-74 B.H. SINGHANIA Chairman
As per our report of even date VINITA SINGHANIA Vice Chairman & Managing Director
For S. S. KOTHARI MEHTA & COMPANY

}
Chartered Accountants Dr. R.P. SINGHANIA
Firm Registration No.: 000756N N.G. KHAITAN
SUNIL WAHAL SUDHIR A. BIDKAR RAVI JHUNJHUNWALA Directors
Partner Chief Financial Ofcer SADHU RAM BANSAL
Membership No.: 087294 BHASWATI MUKHERJEE
Place: New Delhi AMIT CHAURASIA
Date: 19th May, 2023 Company Secretary ARUN KUMAR SHUKLA President & Director

174 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023

Company Overview, Basis of Preparation &

Signicant Accounting Policies
Note-1

I. Corporate & General Information

JK Lakshmi Cement Limited (“the Company’’) is domiciled and incorporated in India and its Shares are publicly traded on the
National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The Registered Ofce of the Company is situated at
Jaykaypuram, Basantgarh, Distt. :Sirohi- 307 019, Rajasthan.
The Company is a leading manufacturer and supplier of Cement and Cementitious products like RMC & AAC Blocks with
manufacturing facilities in the State of Rajasthan, Chattisgarh, Gujarat, Haryana, Uttar Pradesh and Odisha. The Company
began its journey in 1982 by setting-up a Cement Plant with a modest Capacity of 0.50 Million Tonnes at Sirohi in the State
of Rajasthan. Over the years, the Cement capacity has grown to the present level of 11.70 Million Tonnes. The Company is
the rst Cement Manufacturer in North India to introduce coloured bags and registered as ISO 9200. The Company’s
Technical Service Cell provides construction solutions to its customers & carries out regular & innovative contact
programmes with Individual House Builders, Masons and other Business Associates to keep in tune with their needs and
requirements.
These Financial Statements were approved and adopted by the Board of Directors of the Company in their meeting held on
May 19, 2023.
II. Basis of Preparation of Financial Statements
(i) Statement of Compliance
The Financial Statements have been prepared in accordance with Indian Accounting Standards (IND AS) as prescribed
under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 as
amended time to time and relevant provisions of the Companies Act, 2013 and presentation requirements of Division
II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III). The Financial Statements comply with
IND AS notied by Ministry of Company Affairs (“MCA”). The Company has consistently applied all the accounting
policies and applicable Ind AS used in the preparation for all periods presented.
(ii) Basis of Preparation
The signicant accounting policies used in preparing the Financial Statements are set out in Note no. III of the Notes to
the Standalone Financial Statements. Company’s Financial Statements are presented in Indian Rupees (`), which is
also its functional currency.
(iii) Basis of Measurement
The Financial Statements have been prepared on accrual basis and under the historical cost convention except for the
items that have been measured at fair value as required by relevant IND AS.
(iv) Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date (As per Ind AS 113) and other Fair Value measurement have
been done as per its respective standards.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non- nancial asset takes in to account a market participant’s ability to generate
economic benets by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.
For the purpose of Fair Value disclosures, the Company has determined classes of Assets and Liabilities on the basis of
the nature, characteristics and risks of the Asset or Liability and the level of the Fair Value Hierarchy in which they fall.
(v) Current & Non-Current Classications
The Company presents assets and liabilities in the balance sheet based on current/ non-current classication.
An asset is treated as current when it is expected to be realised or intended to be sold or consumed in normal
operating cycle, held primarily for the purpose of trading, expected to be realised within twelve months after the
reporting period, or Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period

INTEGRATED ANNUAL REPORT 2022-23 175

JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023

A liability is current when It is expected to be settled in normal operating cycle, It is held primarily for the purpose of
trading, It is due to be settled within twelve months after the reporting period, or there is no unconditional right to
defer the settlement of the liability for at least twelve months after the reporting period.
The terms of the liability that could, at the option of the counterparty, result in its settlement by the issue of equity
instruments do not affect its classication.
All other assets/ liabilities are classied as non-current
Deferred tax assets and liabilities are classied as non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The company has identied twelve months as its operating cycle
(vi) Signicant Accounting Judgements, Estimates and Assumptions
The preparation of these Financial Statements requires management judgements, estimates and assumptions that
affect the application of Accounting Policies, the Accounting disclosures made and the reports amounts of Assets,
Liabilities, Income and Expenses. The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to Accounting estimates are recognised in the period in which the estimates are revised and any future
periods effected pursuant to such revision.
III. Signicant Accounting Policies
(1) Property, Plant and Equipment
Property, Plant and Equipment (PPE) are stated at cost net of tax/duty credit availed, less accumulated depreciation
and accumulated impairment losses, if any. Cost includes expenses directly attributable to bringing the Asset to their
location and conditions necessary for it to be capable of operating in the manner intended by the management.
Subsequent cost are included in the asset’s carrying amount or recognized as separate asset, as appropriate, only
when it is probable that is future economic benets associated with the item will ow to the company and the cost of
the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is
derecognized when replaced. All other repairs and maintenance are charged to prot or loss during the reporting
period in which they are incurred.
Assets in the course of construction are capitalized in capital work in progress account. At the point when an asset is
capable of operating in the manner intended by the management, the cost of erection/ construction is transferred to
the appropriate category of property, plant and equipment cost (net of income and including pre-operative cost /
expenses) associated with the commissioning of an asset are capitalized until the period of commissioning has been
completed and the asset is ready of its intended use.
Property, Plant and Equipment are eliminated from Financial Statement, either on disposal or when retired from active
use. Losses arising in the case of retirement of Property, plant and equipment and gains or losses arising from disposal
of property, plant and equipment are recognized in Statement of Prot and Loss in the year of occurrence.
Depreciation methods, estimated useful lives and residual value.
Deprecation is calculated using the Straight Line Method (SLM) to allocate their cost, net of their residual values, over
their estimated useful lives as specied in Schedule II to Companies Act, 2013, except for Captive Power Plants, Split
Grinding Units, Vehicles & Locomotives, ofce equipment and Furniture & Fixtures which is provided on Written Down
Value Method (WDV) as per the said schedule. Depreciation on RMC is provided considering estimated useful life of 6
years on SLM basis.
The assets residual values, useful lives and methods of depreciation are reviewed at each nancial year end and
adjusted prospectively, if appropriate.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in
Statement of Prot or Loss within other gains / (losses).
Depreciation on impaired assets is provided on the basis of their residual useful life.
(2) Investment Properties
Property that is held for long-term rentals yields or for capital appreciation or both, and that is not occupied by the
Company, is classied as investment property. Investment property is measured initially at its cost, including related
transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalized to the asset’s carrying
amount only when it is probable that future economic benets associated with the expenditure will ow to the
Company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed
when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is
derecognized.

176 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023

Investment properties are depreciated using the Straight Line Method (SLM) over their estimated useful lives. The
useful live has been determined based on technical evaluation performed by the management’s expert.
The Residual value, useful lives and depreciation method of investment properties are reviewed, and adjusted on
Prospective basis as appropriate, at each nancial year end. The effects of any revision are included in the Statement of
Prot and Loss when the changes arise.
(3) Intangible Assets
Intangibles Assets are recognized if the future economic benets attributable to the Assets are expected to ow to the
Company and the cost of the asset can be measured reliably.
Internally generated intangibles, excluding capitalized developments costs, are not capitalized and the related
expenditure is reected in Statement of Prot and Loss in the period in which the expenditure is incurred.
The useful lives of Intangibles Assets are assessed as either nite or indenite. The amortization period and the
amortization method for an Intangible Asset with a nite useful life are reviewed atleast at the end of each reporting
period. Changes in the expected useful life or the expected pattern of consumption of future economic benets
embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as
changes in accounting estimates.
Intangible Asset with nite lives are amortized over the useful economic life and assessed for impairment whenever
there is an indication that the Intangible Asset may be impaired.
Intangible Assets are amortized as follows:
• Computer Software & Mining Right : Over a period of ve years
Intangibles Assets with indenite useful lives, if any are not amortised, but are tested for impairment annually , either
individually or at the cash-generating unit level. The assessment of indenite useful life is reviewed annually to
determine whether indenite life continues to be supportable. If not, the change in useful life from indenite to nite
life is made on prospective basis.
Gain or losses arising from derecognition of an Intangible Asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognized in the statement of prot and loss when
the asset is derecognized.
(4) Research and Development Cost
Revenue Expenditure on Research and Development is charged to Statement of Prot and Loss and Capital
Expenditure is added to Property, Plant and Equipment.
However, Development expenditure on new product is capitalized as Intangible Asset.
(5) Inventories
Inventories are carried in the balance sheet as follows :
a) Raw Materials, Packing Materials, : At cost, on weighted average basis.
construction Materials, Stores & Spares.
b) Work-in Progress – Manufacturing : At Lower of Cost of Material, plus appropriate
production Overheads and Net Realizable Value.
c) Finished Goods – Manufacturing : At Lower of Cost of Materials plus Appropriate
Production Overheads and Net Realizable Value.
d) Finished goods – Trading : At lower of cost, on Weighted Average Basis and
Net Realizable Value.

The cost of inventories have been computed to include all cost of purchases, cost of conversion and other related costs
incurred in bringing the inventories to their present location and condition. Slow and non-moving material, obsolete,
defective inventories are duly provided for and valued at net realizable value. Goods and materials in transit are valued
at actual cost incurred upto the date of Balance Sheet. Materials and supplies held for use in the production of
inventories are not written down if the nished products in which they will be used are expected to be sold at or
above cost.
Net Realisable Value is the estimated Selling Price in the ordinary course of business, less estimated costs of
completion and estimated costs necessary to make the sale.
(6) Cash and Cash Equivalents
Cash and Cash Equivalents includes cash on hand, deposits held at call with Banks / Financial Institutions, other short-
term, highly liquid investments which are subject to an insignicant risk of changes in value.

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JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023

(7) Impairment of Assets

The carrying amounts of Property, Plant & Equipment, Intangible Assets and Investment Properties are reviewed at
each Balance Sheet date to assess impairment, if any, based on internal / external factors. An impairment loss is
recognised, as an expense in the Statement of Prot & Loss, wherever the carrying amount of the Asset or Cash
Generating Unit (CGU) exceeds its recoverable amount. The impairment loss recognised in prior accounting period is
reversed, if there has been an improvement in recoverable amount in subsequent years.Recoverable amount is
determined:-
• In the case of an Individual Asset, at the higher of the Fair Value less cost to sell and the value in use; and
• In the case of cash generating unit (a group of assets that generates identied, independent cash ows) at the
higher of cash generating unit’s fair value less cost to sell and the value in use.
In assessing value in use, the estimated future cash ows are discounted to their present value using a pre-tax discount
rate that reects current market assessments of the time value of money and the risks specic to the asset. In
determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions
can be identied, and appropriate valuation model is used.
These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or
other available fair value indicators.
(8) Foreign Currency Translations & Transitions
(i) Functional and Presentation Currency
The Company’s nancial statements are presented in INR, which is also the Company’s Functional and
Presentation Currency.
(ii) Transaction and Balance
Foreign currency transactions are recorded at exchange rates prevailing on the date of transaction. Monetary
Assets and liabilities related to foreign currency transactions are stated at exchange rate prevailing at the end of
the year and exchange difference in respect thereof is recognised to Statement of Prot & Loss.
(9) Financial Instruments
A Financial Instrument is any contract that gives rise to a nancial asset of one entity and a nancial liability or equity
instrument of another entity.
1. Financial Assets
1.1 Denition
Financial Assets include Cash and Cash Equivalents, Trade and Other Receivables, Investments in Securities and
other eligible Current and Non-Current Assets.
At initial recognition, all nancial assets are measured at fair value. The classication is reviewed at the end of
each reporting period.
(i) Financial Assets at Amortised Cost
At the date of initial recognition, are held to collect contractual cash ows of principal and interest on
principal amount outstanding on specied dates. These nancial assets are intended to be held until
maturity. Therefore, they are subsequently measured at amortized cost by applying the Effective Interest
Rate (EIR) method to the gross carrying amount of the nancial asset. The EIR amortization is included as
interest income in the statement of prot or loss. The losses arising from impairment are recognized in the
Statement of Prot or Loss.
(ii) Financial Assets at Fair value through Other Comprehensive Income
At the date of initial recognition, are held to collect contractual cash ows of principal and interest on
principal amount outstanding on specied dates, as well as held for selling. Therefore, they are
subsequently measured at each reporting date at fair value, with all fair value movements recognized in
Other Comprehensive Income (OCI). Interest income calculated using the effective interest rate (EIR)
method, impairment gain or loss and foreign exchange gain or loss are recognized in the Statement of Prot
and Loss. On derecognition of the asset, cumulative gain or loss previously recognized in Other
Comprehensive Income is reclassied from the OCI to Statement of Prot and Loss.
(iii) Financial Assets at Fair value through Prot or Loss (FVTPL)
At the date of initial recognition, Financial assets are held for trading, or which are measured neither at
Amortized Cost nor at Fair Value through OCI. Therefore, they are subsequently measured at each reporting
date at fair value, with all fair value movements recognized in the Statement of Prot and Loss.

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JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023

1.2 Trade Receivables

A Receivable is classied as a ‘trade receivable’ if it is in respect to the amount due from customers on account of
goods sold or services rendered in the ordinary course of business Trade Receivables are initially recognized at
their Transaction Value as reduced by provision for impairment, if any. For some trade receivables the Company
may obtain security in the form of guarantee, security deposit or letter of credit which can be called upon if the
counterparty is in default under the terms of the agreement. For trade receivables and contract assets, the
Company applies a simplied approach in calculating ECLs. Therefore, the Company does not track changes in
credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date.
1.3 Investment in Equity Shares
Investment in Equity Securities are initially measured at cost. Any subsequent fair value gain or loss is recognized
through Statement of Prot and Loss if such investments in Equity Securities are held for trading purposes. The
fair value gains or losses of all other Equity Securities are recognized in Other Comprehensive Income.
1.4 Investment in Associates, Joint Ventures and Subsidiaries
The Company has accounted for its investment in subsidiaries, associates and joint venture at cost.
1.5 Derecognition of Financial Assets
A Financial Asset is primarily derecognized when:
• The right to receive cash ows from asset has expired, or
• The Company has transferred its right to receive cash ows from the asset or has assumed an obligation to
pay the received cash ows in full without material delay to a third party under a “pass-through”
arrangement and either:
a) The Company has transferred substantially all the risks and rewards of the asset, or
b) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
When the Company has transferred its right to receive cash ows from an asset or has entered into a pass through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has
neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the
asset, the Company continues to recognize the transferred asset to the extent of the Company’s continuing
involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the
associated liability are measured on a basis that reects the rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of
the original carrying amount of the asset and the maximum amount of consideration that the Company could be
required to repay.
2. Financial Liabilities
2.1 Denition
Financial liabilities include Long-term and Short-term Borrowings, Trade and Other payables and Other eligible
Current and Non-current Liabilities.
(a) Initial Recognition and Measurement
All nancial liabilities are recognized initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
The Company’s nancial liabilities include trade and other payables, loans and borrowings including bank
overdrafts, and derivative nancial instruments.
(b) Subsequent Measurement
The measurement of nancial liabilities depends on their classication, as described below :
i) Financial Liabilities at Fair Value through Prot or Loss
Financial liabilities at fair value through prot or loss include nancial liabilities held for trading. The
Company has designated any nancial liabilities upon initial measurement recognition at fair value
through prot or loss. Financial liabilities at fair value through prot or loss are at each reporting date at
fair value with all the changes recognized in the Statement of Prot and Loss.
ii) Financial Liabilities measured at Amortized Cost
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized
cost using the effective interest rate method (‘’EIR’’) except for those designated in an effective hedging

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JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023

relationship. The carrying value of borrowings that are designated as hedged items in fair value hedges
that would otherwise be carried at amortized cost are adjusted to record changes in fair values
attributable to the risks that are hedged in effective hedging relationship.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fee or
costs that are an integral part of the EIR. The EIR amortization is included in nance costs in the
Statement of Prot and Loss.
2.2 Loans and Borrowings
After initial recognition, interest-bearing borrowings are subsequently measured at amortized cost using
the effective interest rate method. Any difference between the proceeds (net of transaction costs) and the
redemption amount is recognized in Statement of Prot and Loss over the period of the borrowings using
the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction
costs of the loan to the extent that it is probable that some or all of the facility will be drawn down.
Borrowings are classied as current liabilities unless the Company has an unconditional right to defer
settlement of the liability for at least twelve months after the reporting period.
2.3 Financial Guarantee Contracts
Financial guarantee contracts issued by the Company are those contracts that require a payment to be made
to reimburse the holder for a loss it incurs because the specied debtor fails to make a payment when due in
accordance with the terms of a debt instrument. Financial guarantee contracts are recognized initially as a
liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined
as per impairment requirements of Ind AS 109 and the amount initially recognized less cumulative
amortization.
2.4 Trade and Other Payables
A payable is classied as trade payable if it is in respect of the amount due on account of goods purchased or
services received in the normal course of business. These amounts represent liabilities for goods and services
provided to the Company prior to the end of nancial year which are unpaid. Trade and other payables are
presented as current liabilities unless payment is not due within 12 months after the reporting period. They
are recognized initially at their fair value and subsequently measured at amortized cost using the effective
interest method.
2.5 De-recognition of Financial Liability
A Financial Liability is derecognized when the obligation under the liability is discharged or cancelled or
expires. The difference between the carrying amount of a nancial liability that has been extinguished or
transferred to another party and the consideration paid, including any non-cash assets transferred or
liabilities assumed, is recognized in prot or loss as other income or nance costs.
3. Offsetting of Financial Instruments
Financial Assets and Financial Liabilities are offset and the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset the recognized amounts and there is an intention to
settle on a net basis, to realize the assets and settle the liabilities simultaneously.
4. Derivative Financial Instruments
The Company uses derivative nancial instruments, such as forward contracts and interest rate swaps to hedge
its foreign currency risks and interest rate risks. Derivative nancial instruments are initially recognized at fair
value on the date a derivative contract is entered into and are subsequently re-measured at their fair value at the
end of each period. The method of recognizing the resulting gain or loss depends on whether the derivative is
designated as a hedging instrument, and if so, on the nature of the item being hedged. Any gains or losses
arising from changes in the fair value of derivatives are taken directly to prot or loss.
(10) Grants
Grants from the Government are recognised when there is reasonable assurance that all underlying conditions will be
complied with and that the grant will be received.
When loans or similar assistance are provided by Government or related institutions, with an interest rate below the
current applicable market rate, the effect of this favorable interest is regarded as a government grant. The loan or
assistance is initially recognised and measured at fair value and the government grant is measured as the difference
between the initial carrying value of the loan and the proceeds received. That grant is recognised in the Statement of
Prot and Loss under ‘other income’. The loan is subsequently measured as per the accounting policy applicable to
nancial liabilities.

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JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023

Government grants related to assets, including non-monetary grants at fair value, are presented in the balance sheet
by recording the grant as deferred income which is released to the Statement of Prot and Loss on a systematic basis
over the useful life of the asset.
Grants related to income are recognised as income on a systematic basis in the Statement of Prot and Loss over the
periods necessary to match them with the related costs, which they are intended to compensate and are presented as
‘other income’.
(11) Equity Share Capital
Ordinary Shares are classied as Equity. Incremental costs net of taxes directly attributable to the issue of new equity
shares are reduced from Retained Earnings, net of taxes.
(12) Provisions, Contingent liabilities and Contingent Assets
i) General
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outow of resources embodying economic benets will be required to settle the
obligation and a reliable estimate of the amount of the obligation. When the Company expects some or all of a
provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a
separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is
presented in the statement of prot and loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre tax rate that
reects, when appropriate, the risks specic to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as a nance cost.
ii) Contingent Liability
Contingent Liability is disclosed in the case of:
• A present obligation arising from past events, when it is not probable that an outow of resources will be
required to settle the obligation.
• A present obligation arising from past events, when no reliable estimate is possible:
• A possible obligation arising from past events, unless the probability of outow of resources is remote.
Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.
iii) Other Litigation Claims
Provision for litigation related obligation represents liabilities that are expected to materialize in respect of
matters in appeal.
iv) Onerous Contracts
A provision for onerous contracts is measured at the present value of the lower of expected costs of terminating
the contract and the expected cost of continuing with the contract. Before a provision is established, the
Company recognizes impairment on the Assets with the contract.
v) Contingent Asset
A Contingent Asset is a possible asset that arises from past events and whose existence will be conrmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
entity. Contingent Assets are disclosed in the Financial Statements by way of notes to accounts when an inow of
economic benets is probable.
(13) Revenue Recognition
Revenue towards satisfaction of a performance obligation is measured at the amount of Transaction price (Net of
variable consideration) allocated to that performance obligation. The transaction price of goods sold& services
rendered is net of variable consideration on account of various discounts & schemes offered by the Company as part of
the contract.
i) Sale of Goods
Revenue is recognized upon transfer of control of promised goods or services to customers at transaction price
(net of taxes and duties).
Taxes collected on behalf of the government are excluded from revenue. Revenue is recognised to the extent it is
probable that the economic benets will ow to the Company and the revenue and costs, if applicable, can be
measured reliably

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Notes to Standalone Financial Statements for the Year ended March 31, 2023

ii) Non-Cash Incentives

The Company provides Non-Cash incentives at Fair Value to customers. These benets are passed on to
customers on satisfaction of various conditions of various sales schemes. Consideration received is allocated
between the products sold and non-cash incentives to be issued to customers. Fair value of the non-cash incentive is
determined by applying principle of Ind AS 113 i.e. at market rate. A contract liability for the non-cash incentive is
recognised at the time of sale.
iii) Power Distribution
Revenue from Power Distribution business is accounted on the basis of billings to the customers and includes
unbilled revenues accrued up to the end of accounting year. Customers are billed as per the tariff rates issued by
Electricity Regulatory Commission.
iv) Dividend Income
Dividend income is recognized when the right to receive dividend is established, which becomes certain after
shareholders’ approval.
v) Lease Income
Lease Agreements where the risk and rewards incidental to the ownership of an asset substantially vest with the
lessor are recognized as operating leases. Leases rentals are recognized on straight –line basis as per the terms of
the agreements in the statement of prot and loss.
vi) Interest Income
For all Financial instruments measured at amortized cost, interest income is recorded using Effective Interest
Rate (EIR), which is the rate that exactly discounts the estimated future cash payments or receipts through the
expected life of the Financial Instrument or a shorter period, where appropriate, to the net carrying amount of
the Financial Asset. Interest income is included in other income in Statement of Prot and Loss.
vii) Renewable Energy Certicate
Renewable Energy Certicate (REC) benets are recognized in Statement of Prot & Loss on Sale of REC. Income
from Sale of RECs is recognized on the delivery to the Customers’ Account.
viii) Export Benet
Export incentives, Duty Drawbacks and other benets are recognized in the Statement of Prot and Loss on
Accrual Basis.
(14) Employees Benets
i) Dened Contribution Plans
Contributions to the employees’ regional Provident Fund, Superannuation Fund, Employees Pension Scheme
and Employees’ State Insurance are recognized as dened contribution plan and charged as expenses during the
period in which the employees perform the services. The Company has no obligation, other than the
contribution payable to the respective funds. The Company recognises contribution payable to these schemes as
an expense, when an employee renders the related service. If the contribution payable to the scheme for service
received before the balance sheet date exceeds the contribution already paid, the decit payable to the scheme is
recognised as a liability after deducting the contribution already paid. If the contribution already paid exceeds
the contribution due for services received before the balance sheet date, then excess is recognised as an asset to
the extent that the pre-payment will lead to, for example, a reduction in future payment or a cash refund.
ii) Dened Benet Plans
Retirement benets in the form of Gratuity and Leave Encashment are considered as dened benet plan and
determined on actuarial valuation using the Projected Unit Credit Method at the balance sheet date. Actuarial Gains
or Losses through re-measurement of the net obligation of a dened benet liability or asset is recognized in Other
Comprehensive Income. Such re-measurements are not reclassied to Statement of Prot and Loss in subsequent
periods.
The Provident Fund Contribution other than contribution to Employees’ Regional Provident Fund, is made to
trust administered by the trustees. The interest rate to the members of the trust shall not be lower than the
statutory rate declared by the Central Government under Employees’ Provident Fund and Miscellaneous
Provision Act, 1952. The Employer shall make good deciency, if any.
iii) Short-term Employee Benets
Short Term Benets are charged off at the undiscounted amount in the year in which the related service
is rendered.

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JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023

iv) Long-Term Employee Benet

Compensated absences which are not expected to occur within twelve months after the end of the period in
which the employee renders the related services are recognized as a liability at the present value of the dened
benet obligation at the balance sheet date. Annual Leaves can either be availed or enchased subject to
restriction on the maximum accumulation of Leaves.
v) Termination Benets
Termination Benets are recognized as an expense in the period in which they are incurred.
The Company shall recognize a liability and expense for termination benets at the earlier of the following dates:
(a) When the entity can no longer withdraw the offer of those benets; and
(b) When the entity recognizes costs for a restructuring that is within the scope of Ind AS 37 and involves the
payment of termination benets.
(15) Borrowing Costs
(1) Borrowing Costs that are specically attributable to the acquisition, construction, or production of a Qualifying
Asset are capitalized as a part of the cost of such Asset till such time the asset is ready for its intended use or sale.
A Qualifying Asset is an asset that necessarily requires a substantial period of time (generally over twelve months)
to get ready for its intended use or sale.
The Borrowing Cost consists of Interest & Other Incidental costs that the Company incurs in connection with the
borrowing of such Funds.
(2) For general borrowing used for the purpose of obtaining a Qualifying Asset, the amount of borrowing costs
eligible for capitalization is determined by applying a capitalization rate to the expenditures on that asset. The
capitalization rate is the weighted average of the borrowing costs applicable to the borrowings of the Company
that are outstanding during the period, other than borrowings made specically for the purpose of obtaining a
qualifying asset. The amount of borrowing costs capitalized during a period does not exceed the amount of
borrowing cost incurred during that period.
(3) Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing
costs. All other borrowing costs are recognized as expense in the period in which they are incurred.
(16) Leases
The Company assesses at contract inception whether a contract or part of contract is, or contains, a lease. That is, if
the contract conveys the right to control the use of an identied asset for a period of time in exchange for
consideration.
a) Company as a Lessee
The Company applies a single recognition and measurement approach for all leases, except for short-term
leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-
of-use assets representing the right to use the underlying assets.
i) Right-Of-Use Assets
The Company recognises Right-Of-Use assets at the commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use Assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any re-measurement of lease liabilities. The cost of
Right-Of-Use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date less any lease incentives received. Right-of-use Assets
are depreciated on a straight-line basis from the commencement date over the shorter of the lease term and
the estimated useful lives of the Assets.
If ownership of the Leased Asset transfers to the Company at the end of the lease term or the cost reects
the exercise of a purchase option, depreciation is calculated using the estimated useful life of the Asset.
ii) Lease Liabilities
At the commencement date of the lease, the Company recognises Lease Liabilities measured at the present
value of lease payments to be made over the lease term. The lease payments include xed payments
(including in-substance xed payments) less any lease incentives receivable, variable lease payments that
depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease
payments also include the exercise price of a purchase option reasonably certain to be exercised by the
Company and payments of penalties for terminating the lease, if the lease term reects the Company
exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are

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JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023

recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or
condition that triggers the payment occurs.
In calculating the present value of lease payments, the Company uses its existing weighted average cost of
capital (WACC) rate at the lease commencement date because the interest rate implicit in the lease is not
readily determinable. After the commencement date, the amount of lease liabilities is increased to reect
the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease
liabilities is re-measured if there is a modication, a change in the lease term, a change in the lease payments
(e.g., changes to future payments resulting from a change in an index or rate used to determine such lease
payments) or a change in the assessment of an option to purchase the underlying asset.
Lease liabilities have been presented as a separate line and Right-of-use assets have been presented under
Property Plant and Equipment in the balance sheet. Lease payments have been classied as cash used in
nancing activities.
i) Short-Term Leases and Leases of Low-Value Assets
The Company has elected not to recognise Right-of-Use Assets and Lease Liabilities for short term leases of
all assets that have a lease term of 12 months or less and leases of low-value assets. The Company recognises
the lease payments associated with these leases as an expense on a straight-line basis over the lease.
b) Company as a Lessor
Lease income from Operating Leases where the Company is a Lessor is recognized in income on a straight-line
basis over the lease term unless the recipients are structured to increase in line with expected general ination to
compensate for the expected inationary cost increases. The respective Leased Assets are included in the Balance
Sheet based on their nature.
(17) Taxes on Income
a) Current Tax
i) Tax on Income for the Current Period is determined on the basis of estimated taxable income and tax credits
computed in accordance with the provisions of the relevant tax laws and based on the expected outcome
of assessments / appeals.
ii) Current Income Tax relating to items recognized directly in equity is recognized in equity and not in the
statement of prot and loss .Management periodically evaluates positions taken in the tax returns with respect
to situations in which applicable tax regulations are subject to interpretation and establishes provisions where
appropriate.
b) Deferred Tax
Deferred Tax is provided using the Balance Sheet Approach on temporary differences at the reporting date
between the tax bases of assets and liabilities and their carrying amounts for nancial reporting purposes at the
reporting date.
The carrying amount of Deferred Tax Assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufcient taxable prot will be available to allow all or part of the Deferred Tax Asset
to be utilized. Unrecognized Deferred Tax Assets are reassessed at each reporting date and are recognized to
the extent that it has become probable that future taxable prots will allow the deferred tax asset to be
recovered.
Deferred Tax Assets and Liabilities are measured at the tax rates that are expected to apply in the year when the
asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Deferred Tax relating to items recognized outside the Statement of Prot and Loss is recognized outside the
Statement of Prot and Loss.
Deferred Tax items are recognized in correlation to the underlying transaction either in Other Comprehensive
Income or directly in Equity.
The break-up of the major components of the Deferred Tax Assets and Liabilities as at Balance Sheet date has
been arrived at after setting off deferred tax assets and liabilities where the Company have a legally enforceable
right to set-off assets against liabilities and where such assets and liabilities relate to taxes on income levied by
the same governing taxation laws.
(18) Exceptional Items
On certain non-recurring occasions, the size, type or incidence of an item of income or expense, pertaining to the
ordinary activities of the Company is such that its disclosure improves the understanding of the performance of the

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Notes to Standalone Financial Statements for the Year ended March 31, 2023

Company, such income or expense is classied as an exceptional item and accordingly, disclosed in the notes
accompanying to the nancial statements.
(19) Earnings Per Share (EPS)
i) Basic Earnings Per Share
Basic Earnings Per Share is calculated by dividing
• The Prot or Loss attributable to Equity Shareholders of the Company by the Weighted Average number of
Equity Shares outstanding during the Financial Year, adjusted for bonus elements in Equity Shares issued
during the Year.
ii) Diluted Earnings Per Share
Diluted Earnings Per Share adjusts the gures used in the determination of basic earnings per share to take into account
• The after Income Tax Effect of interest and other nancing costs associated with dilutive potential equity
shares, and the Weighted Average number of additional Equity Shares that would have been outstanding
assuming the conversion of all dilutive potential Equity Shares.
(20) Segment Accounting
The Company is engaged primarily into manufacturing of Cement. The Company has only one business segment as
identied by management namely Cementious Materials.
Segments have been identied taking into account nature of product and differential risk and returns of the segment.
The business segments are reviewed by the Vice Chairman & Managing Director (Chief Operating Decision Maker).
The Chief Operational Decision Maker monitors the operating results of its business Segments separately for the
purpose of making decisions about resource allocation and performance assessment. Segment performance is
evaluated based on each segments prot or loss and is measured consistently with prot or loss in the nancial
statements.
(21) Cash dividend
The Company recognises a Liability to pay dividend to Equity Holders of the Company when the distribution is
authorised and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a
distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in
Other Equity. Interim Dividends are recognised as a Liability on the date of declaration by the Company's Board of
Directors.
(22) Recent Pronouncements
Recent pronouncements Ministry of Corporate Affairs (“MCA”) noties new standard or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023,
MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian
Accounting Standards) Amendment Rules, 2023, applicable from April 1, 2023, as below:
Ind AS 1 – Presentation of Financial Statements The amendments require companies to disclose their material
accounting policies rather than their signicant accounting policies. Accounting policy information, together with
other information, is material when it can reasonably be expected to inuence decisions of primary users of general
purpose nancial statements. The Company does not expect this amendment to have any signicant impact in its
nancial statements.
Ind AS 12 – Income Taxes The amendments clarify how companies account for deferred tax on transactions such as
leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in
paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial
recognition, give rise to equal taxable and deductible temporary differences. The Company is evaluating the impact, if
any, in its nancial statements.
Ind AS 8 – Accounting Policies, Changes in Accounting Estimates and Errors The amendments will help entities to
distinguish between accounting policies and accounting estimates. The denition of a change in accounting
estimates has been replaced with a denition of accounting estimates. Under the new denition, accounting
estimates are “monetary amounts in nancial statements that are subject to measurement uncertainty”. Entities
develop accounting estimates if accounting policies require items in nancial statements to be measured in a way that
involves measurement uncertainty. The Company does not expect this amendment to have any signicant impact in
its nancial statements.

INTEGRATED ANNUAL REPORT 2022-23 185

JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023

Note-2 Property, Plant and Equipment

` In Crore (10 Million)
Right of Use
Particulars Freehold Leasehold Leasehold Buildings Plant and Furniture Ofce Vehicles Railway Total
Land Land Building & Equipment and Equip- and Siding
Machinery Fixtures ments Locomotives
Gross Block
As at 1st April'2021 261.30 62.87 17.60 229.91 3,079.05 6.61 9.81 29.30 11.10 3,707.55
Additions/Adjustments 15.39 11.32 16.86 12.21 181.89 0.12 1.09 7.62 4.75 251.25
Disposals/Adjustments - - - 0.05 0.49 - - 5.68 - 6.22
As at 31st March'2022 276.69 74.19 34.46 242.07 3,260.45 6.73 10.90 31.24 15.85 3,952.58
Additions/Adjustments 34.89 0.07 13.32 12.04 102.60 0.21 0.98 13.72 0.85 178.68
Disposals/Adjustments - - 4.36 - 15.24 0.02 0.34 9.63 - 29.59
As at 31st March'2023 311.58 74.26 43.42 254.11 3,347.81 6.92 11.54 35.33 16.70 4,101.67
Accumulated Depreciation
As at 1st April'2021 - 3.88 4.75 74.07 934.29 3.79 6.08 17.61 4.11 1,048.58
Charged For the Year - 1.05 6.69 11.95 162.23 0.69 1.49 4.46 0.73 189.29
On Disposal - - 0.01 0.19 - - 4.30 - 4.50
As at 31st March'2022 - 4.93 11.44 86.01 1,096.33 4.48 7.57 17.77 4.84 1,233.37
Charged For the Year - 1.19 10.51 11.92 159.41 0.55 1.31 5.85 1.02 191.76
On Disposal - - 4.36 - 12.77 0.01 0.27 7.52 - 24.92
As at 31st March'2023 - 6.12 17.59 97.93 1,242.97 5.02 8.61 16.09 5.86 1,400.20
Net Carrying Amount
As at 31st March'2022 276.69 69.26 23.02 156.06 2,164.12 2.25 3.33 13.47 11.01 2,719.21
As at 31st March'2023 311.58 68.14 25.83 156.18 2,104.84 1.90 2.93 19.24 10.84 2,701.47
1) The Title Deeds of all the Immovable Properties (other than properties where the Company is the lessee and the lease
agreements are duly executed in favour of the lessee) disclosed in the nancial statements are held in the name of the
Company, except the following
Description of Gross Carrying Gross Carrying Held in the Whether Period held Reason for not being held in the
Prpoerty Value As at Value As at name of promoter, indicate range, name of company
31st 31st director or where
March'2023 March'2022 their relative appropriate
or employee
Lease Hold Land 4.02 4.02 Bihar Industrial No July'2015 BIADA has given a notice to the
Development Company on 30.06.2020 that the
Authority amount paid by the Company
(BIADA). towards Leasehold Land has been
forfeited. Aggrieved by the BIADA’s
notice, the Company had moved to
Hon’ble Patna High Court in 2020.
The Hon’ble High Court has
directed BIADA to relook into the
allotment of an alternate Land. On
refusal of BIADA to give any
alternate Land, the Company has
led a case against BIADA at
Hon’ble Patna High Court in
January 2023 for adjudication of
the matter.

2) The Company has lease contracts for various buildings and plants used in its operations. Lease of buildings and plants have
lease terms between 2 year to 10 years. The Company also has certain lease with lease terms of 12 months and less. The
Company applies the 'short term leases' recognition exemption for these leases.

186 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023

The following are the amounts recognised in Statement of Prot and Loss as per IND AS 116 ` In Crore (10 Million)
Year Ended Year Ended
March 31 2023 March 31 2022
Depreciation expense of Right Of Use Assets 11.70 7.74
Interest Expense on Lease Liabilities 3.66 3.36
Expense relating to Leases of Short-term / Low Value Assets
(included in Other Expenses) 10.61 10.45
Total Amount recognised in Statement of Prot and Loss 25.97 21.55

Amounts recognised in Statement of Cash Flows: ` In Crore (10 Million)

Particulars Year Ended Year Ended
March 31 2023 March 31 2022
Total Cash Outow for Leases 24.18 19.49
Financing Activities
Repayment of Principal 9.91 5.68
Repayment of Interest 3.66 3.36
Operating Activities
Short Term / Low Value Assets Lease Payment 10.61 10.45

The following is the movement in lease liabilities during the year ended March 31, 2023 and March 31, 2022:
` In Crore (10 Million)
Particulars Year Ended Year Ended
March 31 2023 March 31 2022
Balance at the beginning 30.01 18.83
Addition during the year 13.32 16.86
Finance cost accrued during the period 3.66 3.36
Payment of lease liabilities (13.57) (9.04)
Balance at the end 33.42 30.01
Non Current (Refer Note 20) 23.90 21.05
Current (Refer Note 26) 9.52 8.96

Note-3 Capital-Work-in-Progress (CWIP)

` In Crore (10 Million)
Particulars As at March 31 2023 As at March 31 2022
Capital Work in Progress (Gross) 162.72 209.93
Impiarment allowance (97.80) (97.80)
Capital Work in Progress (Net) 64.92 112.13

Movement in capital-work-in-progress As at March 31 2023 As at March 31 2022

Opening balance (Gross) 112.13 227.50
Addition during the year 65.46 123.01
Capitalised during the year 112.67 201.73
Less: Provision for Impairment @ - (36.65)
Closing balance (Net) 64.92 112.13
'@ Exceptional item includes nil (Previous year ` 36.65 crore) represents diminution in the value of Capital-Work-In-Progress due
to impairment of Carrying Cost of an Asset Under Construction at the Company's Durg Cement Plant.

INTEGRATED ANNUAL REPORT 2022-23 187

JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023

Capital Work in Progress (CWIP) Ageing ` In Crore (10 Million)

Particulars Less than 1 year 1-2 year 2-3 year More than 3 year Total
As on 31st March'23
Projects in Progress 17.13 2.21 - - 19.34
Projects Temporarily Supsended (refer note 2) 45.58 45.58
Total 17.13 2.21 - 45.58 64.92
As on 31st March'22
Projects in Progress 58.47 7.16 0.82 0.10 66.55
Projects Temporarily Supsended - - - 45.58 45.58
Total 58.47 7.16 0.82 45.68 112.13
2) The Suspended Project is expected to be completed in next 2-3 years.
3) There are no Projects as on reporting date which has exceeded cost as compared to its Original cost. The Projects temporarily
Suspended are overdue for completion.

Note-4 Investment Property

` In Crore (10 Million)

Particulars Freehold Land Leasehold Land Buildings Total
Gross Block
As at 1st April'2021 ` 31,797 0.04 0.71 0.76
Additions/Adjustments - - 0.14 0.14
Disposals/Adjustments ` 1,230 - - ` 1,230
As at 31st March'2022 ` 30,567 0.04 0.85 0.90
Additions/Adjustments - - - -
Disposals/Adjustments ` 30,567 - - -
As at 31st March'2023 `0 0.04 0.85 0.90
Accumulated Depreciation
As at 1st April'2021 - ` 38,904 0.31 0.32
Charged For the Year - ` 6,970 0.05 0.05
On Disposal
As at 31st March'2022 - ` 45,874 0.36 0.37
Charged For the Year - ` 3,494 0.03 0.03
On Disposal - - - -
As at 31st March'2023 - ` 49,368 0.39 0.39
Net Carrying Amount
As at 31st March'2022 ` 30,567 0.03 0.48 0.53
As at 31st March'2023 - 0.03 0.46 0.50
Fair Value*
As at 31st March'2022 0.92
As at 31st March'2023 0.29
Rental Income
For the FY 2021-22 0.65
For the FY 2022-23 0.73
Note : There is no material expenses incurred for the maintenance of investment properties derived out of the same.
*Based upon realisation value as calculated by independent valuer.
Figure in table with ` symbol represents absolute gure.

188 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023

Note-5 Intangible Assets

` In Crore (10 Million)
Particulars Software Mining Rights Total
Gross Block
As at 1st April'2021 7.21 - 7.21
Additions/Adjustments 3.05 - 3.05
Disposals/Adjustments - -
As at 31st March'2022 10.26 - 10.26
Additions/Adjustments 0.52 2.15 2.67
Disposals/Adjustments - - -
As at 31st March'2023 10.78 2.15 12.93
Accumulated Amortisation
As at 1st April'2021 4.67 - 4.67
Charged For the Year 1.18 - 1.18
On Disposal - - -
As at 31st March'2022 5.85 - 5.85
Charged For the Year 1.57 0.18 1.75
On Disposal - - -
As at 31st March'2023 7.42 0.18 7.60
Net Carrying Amount
As at 31st March'2022 4.41 - 4.41
As at 31st March'2023 3.36 1.97 5.33

Note-6 Non Current Investment

` In Crore (10 Million)
As at As at
Particulars 31st March 2023 31st March 2022
Numbers Amount Numbers Amount
Investment in Equity Shares
Subsidiaries- At Cost
Udaipur Cement Works Limited (` 4 each) 225,892,781 128.88 225,892,781 128.88
Udaipur Cement Works Limited - Equity Component* 34.90 34.90
Hansdeep Industries and Trading Co. Ltd. (` 10 each) 116,050,007 116.05 116,050,007 116.05
Associate- At Cost
Dwarkesh Energy Ltd (` 10 each) 350,000 0.35 350,000 0.35
Others- Fair Value through Prot and Loss
V. S. Lignite Power Pvt. Ltd. (` 10 each) # 4,396,136 - 4,396,136 -
Sungaze Power Pvt Ltd. (` 14.66 each) 1,432,308 2.10 1,432,308 2.10
Investment in Preference Shares- Fair Value Through
Prot and Loss
Subsidiary
Udaipur Cement Works Limited (5% cumulative redeemable
preference shares) (` 100000 each) 6,600 56.89 6,600 53.60
Udaipur Cement Works Limited (6% cumulative redeemable
preference shares) (`100 each) 500,000 6.69 500,000 6.39
Associate
Dwarkesh Energy Ltd. (7% optionally convertible cumulative
redeemable preference shares) (` 100 each) 1,100,000 12.95 1,100,000 12.95

INTEGRATED ANNUAL REPORT 2022-23 189

JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023

Note-6 Non Current Investment (Cont.)

` In Crore (10 Million)
As at As at
Particulars 31st March 2023 31st March 2022
Numbers Amount Numbers Amount
Other Investments in Subsidiary
Capital Contribution on account of Financial Guarantee 55.27 34.69
414.08 389.91
Aggregate carrying amount of quoted investment 128.88 128.88
Aggregate market value of quoted investment 587.55 664.12
Aggregate amount of unquoted investment 285.20 261.03
* Equity component of 5%/6% cumulative redeemable preference shares
# Under lien with issuer
Note :- All Investments other than Investment in equity shares of Udaipur Cement Works Limited are unquoted.

` In Crore (10 Million)

As at As at
31st March 2023 31st March 2022

Note-7 Non Current Financial Assets - Loans

Unsecured, Considered Good:
(At amortised cost)
Loan to Related Parties (refer note 61) 2.32 4.71
Loan to Others 15.00 15.00
Secured
Which have Signicant Increase in Credit Risk - -
Credit Impaired - -
17.32 19.71
Note : No loans or advances are due by directors or other ofcers of the Company or
any of them either severally or jointly with any other person. Further, no loans or
advances are due by rms or private companies in which any director is a partner, a
director or a member.

Note-8 Other Non Current Financial Assets (At amortised cost)

Unsecured, Considered Good:
Security Deposits 38.25 30.23
Bank Deposits with remaining maturity for more than 12 months* 40.75 2.82
79.00 33.05
* Includes ` 2.59 crore (previous year ` 2.82 crore) under lien

Note-9 Other Non-Current Assets

Unsecured, Considered Good:
Capital Advances 43.04 24.50
Deferred Expenditure 2.19 1.99
45.23 26.49

190 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023
` In Crore (10 Million)
As at As at
31st March 2023 31st March 2022

Note-10 Inventories (at lower of cost or net realisable value)

Raw Materials 44.17 23.91
Work -in -progress 111.29 86.68
Finished Goods (Including ` 8.23 crore in transit (previous year ` 8.41 crore) 37.53 34.24
Stock-in-Trade 6.55 1.04
Stores and Spares 107.28 96.95
Fuel Stock (Including in transit ` 218.49 crore (previous year ` 65.63 crore) 380.78 229.70
Packing Materials 12.80 18.67
700.40 491.19
For Hypothecation Refer Note 25

Note-11 Current Investment

Investment at fair value through Prot & Loss
Investment in Quoted Non Convertible Debentures 164.09 107.83
Investment in Quoted Mutual Funds 134.47 416.04
Investment in Quoted Bonds & Commercial Paper 211.68 24.16
510.24 548.03
Aggregate book value of Quoted Investments 510.24 548.03
Aggregate market value of Quoted Investments 510.24 548.03
Aggregate book value of unquoted Investments - -

Note-12 Trade Receivables

Considered good - Secured 20.60 9.12
Considered good - Unsecured 39.91 25.36
Which have Signicant Increase in Credit Risk
Credit Impaired 8.59 7.66
Less :- Impairment Allowances (8.59) (7.66)
60.51 34.48
For Hypothecation Refer Note 25
No trade or other receivable are due from directors or other ofcers of the
Company either severally or jointly with any other person. Trade receivables
are non-interest bearing and are generally on terms of 0-90 days.
Trade Receivables Ageing
Outstanding For Following Periods From Due Date of Payment as on 31st March'23
Particulars Not Due Less Than 6 Months to 1 Year to 2 Year to More Than Total
6 Months 1 Year 2 Year 3 Year 3 Years
A. Undisputed
Considered good 25.92 26.75 - - - - 52.67
Credit Impaired - - - 0.16 0.34 2.58 3.08
25.92 26.75 - 0.16 0.34 2.58 55.75
Less Credit Impaired - - - (0.16) (0.34) (2.58) (3.08)
Total 25.92 26.75 - - - - 52.67
B. Disputed
Considered good - - 2.51 2.54 2.51 0.28 7.84
Credit Impaired - - - 1.14 1.04 3.33 5.51
- - 2.51 3.68 3.55 3.60 13.34
Less Credit Impaired - - - (1.14) (1.04) (3.33) (5.51)
Total - - 2.51 2.54 2.51 0.28 7.84
Total (A+B) 25.92 26.75 2.51 2.54 2.51 0.28 60.51

INTEGRATED ANNUAL REPORT 2022-23 191

JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023

Outstanding For Following Periods From Due Date of Payment as on 31st March'22
Particulars Not Due Less Than 6 Months to 1 Year to 2 Year to More Than Total
6 Months 1 Year 2 Year 3 Year 3 Years
A. Undisputed
Considered good 20.44 4.86 0.41 0.02 - - 25.73
Credit Impaired - - 0.05 0.32 1.13 1.67 3.17
20.44 4.86 0.45 0.34 1.13 1.67 28.90
Less Credit Impaired - - (0.05) (0.32) (1.13) (1.67) (3.17)
Total 20.44 4.86 0.41 0.03 - - 25.73
B. Disputed
Considered good 0.34 0.87 1.32 2.55 2.51 1.16 8.75
Credit Impaired - - - 1.06 1.07 2.36 4.49
0.34 0.87 1.32 3.61 3.58 3.52 13.24
Less Credit Impaired - - - (1.06) (1.07) (2.36) (4.49)
Total 0.34 0.87 1.32 2.54 2.50 1.16 8.75
Total (A+B) 20.78 5.73 1.73 2.57 2.50 1.16 34.48

` In Crore (10 Million)

As at As at
31st March 2023 31st March 2022

Note-13 Cash and Cash Equivalents

On Current Account 47.56 39.35
Cheques , Draft on hand/transit 0.94 0.24
Cash on hand 0.42 0.32
Deposits with original maturity for less than 3 months* 90.00 27.22
138.92 67.13
* Includes ` 0.37 crore (previous year ` 0.72) under lien

Note-14 Bank Balances Other than Cash and Cash Equivalents

Deposits with remaining maturity for more than 3 months
but less than 12 months* 194.29 270.31
On Unpaid Dividend Accounts 1.50 1.39
195.79 271.70
* Includes ` 0.37 crore (previous year ` 3.07 crore) under lien

Note-15 Current Financial Assets - Loans

Unsecured, Considered Good:
Loans to Related Party* (refer note 61) 88.73 23.33
88.73 23.33
*Including ` 85.40 crore to Subsidiary (Previous year ` 10.00 crore)

Note-16 Other Current Financial Assets

Unsecured, considered good unless otherwise stated
Receivables (Railway claims, Insurance claims , Subsidy and other receivables)
Considered good - Unsecured 9.00 2.96
Credit Impaired 4.22 4.22
Less: Impairment Allowance (4.22) (4.22)
9.00 2.96
Interest Receivable from Banks and others 11.03 10.84
Advances to Employees 0.60 0.62
Marked to Market Gain (FVTPL) - 0.01
20.63 14.43

192 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023
` In Crore (10 Million)
As at As at
31st March 2023 31st March 2022

Note-17 Other Current Assets (unsecured considered good unless otherwise stated)

Prepaid expenses 9.30 6.51

Balance with Govt. Authorities 20.53 19.34
Other Advances* 132.96 56.68
Deferred Expenditure 0.27 0.74
163.06 83.27
*Includes advances to Subsidiaries amounting of ` 74.49 crore
(previous year ` 8.98 crore) Unsecured, Considered Good, otherwise stated.

Note-18 Equity Share Capital

SHARE CAPITAL
Authorised :
Equity Shares - 250,000,000 (Previous year 250,000,000) of ` 5 each 125.00 125.00
Preference Shares - 5,000,000 ( Previous year 5,000,000) of ` 100 each 50.00 50.00
Unclassied Shares 25.00 25.00
200.00 200.00
Issued, Subscribed and Paid up :
Equity Shares (with equal rights) 117,670,066
(Previous year 117,670,066) of ` 5 each fully paid up 58.84 58.84
Add: Forfeited Shares 0.01 0.01
58.85 58.85

a. Reconciliation of number of Share Outstanding :

Particular 31st March 2023 31st March 2022
Opening Balance 117,670,066 117,670,066
Shares Issued during the year - -
Shares Bought back during the year - -
Shares Outstanding at the end of the year 117,670,066 117,670,066

b. List of shareholders holding more than 5% of the equity share capital of the Company:
Shareholder name 31st March 2023 31st March 2022
Number Number
Bengal & Assam Company Ltd. 52,099,121 52,099,121
Axis Mutual Fund Trustee Ltd. 7,342,519 6,090,240

c. Disclosure of Shareholding of Promoters

As at 31st March'2023 As at 31st March'2022
Name of Promoters* No of Shares % of Total No of Shares % of Total
Number of Number of
Shares Shares
Bengal & Assam Company Limited 52,099,121 44.28 52,099,121 44.28
Shri Bharat Hari Singhania 206,848 0.18 206,848 0.18
Smt. Vinita Singhania 280,058 0.24 280,058 0.24
Total 52,586,027 44.70 52,586,027 44.70
% Change in holding during the year Nil Nil

INTEGRATED ANNUAL REPORT 2022-23 193

JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023

*In addition, as on 31st March 2023, there are 19 entities holding 17,94,632 Equity Shares (1.61%) and as on 31st March 2022,
there are 20 entities holding 17,94,632 Equity Shares (1.61%) , who are constituents of the Promoter Group as per the SEBI (Issue
of Capital and Disclosure Requirements) Regulations, 2018.
d. Terms/ Rights attached to equity shareholders :
i) The Company has only one class of Equity Shares having a par value of Rs 5 per share. Each holder of equity shares is entitled
to one vote per share held.
ii) 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 and are subject to prefrential rights of prefrence shares (if issued)
iii) The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting, except in case of interim dividend.
e. Nature of Reserves :-
Capital Redemption Reserve:- Represents the statutory reserve created when Preference Share Capital is redeemed.
Securities Premium:- Represents the amount received in excess of Par value of Securities.
Debenture Redemption Reserve :- Represents the Statutory Reserve for Non Convertibles Debentures issued by the Company.
f. During the last ve years, the Company has not issued any bonus shares nor are there any shares bought back and issued for
consideration other than cash.
` In Crore (10 Million)
st
Particulars As at 31 March 2023 As at 31st March 2022
Non Current Current* Non Current Current*

Note-19 Non Current Borrowings

SECURED LOANS
Term Loans
From Banks 328.14 154.43 487.51 165.98
From Government 27.03 32.80 53.73 -
Term Loan In Foreign Currency 175.18 28.76 187.36 -
530.35 215.99 728.60 165.98
UNSECURED LOANS
Public Deposits 26.07 34.54 45.62 17.38
26.07 34.54 45.62 17.38

Less:- current maturities of long term debt - 250.53 - 183.36

Shown under Note No- 25
556.42 - 774.22 -
* Due & repayable within one year

1 Term Loan from Bank aggregating to ` 12.35 Crore is secured by way of a First Charge on all the Immovable and Movable
Fixed Assets pertaining to the Company’s Cement Unit in the State of Rajasthan, ranking pari-passu with the charges created
on the said Assets subject to the prior charges in favour of Banks on Specied Assets and Company’s Banks for Working
Capital on Specied Movables Assets. This Term Loan is repayable in 4 equal Quarterly Instalments.
2 Term Loan from a Bank of ` 6.44 Crore is secured by way of an Exclusive First Charge on Immovable & Movable Fixed Assets of
the Company's Cement Grinding Unit in the State of Haryana. This Term Loan is repayable in 3 equal Quarterly Instalments.
3 Term Loan from a Bank of ` 62.81 Crore is secured by way of an Exclusive First Charge on all the Immovable and Movable
Fixed Assets of the Company’s Cement Grinding Unit in the State of Gujarat. This Term Loan is repayable in 11 equal
quarterly instalments
4 Term Loans from Banks aggregating to ` 250.00 Crore are secured by way of a Pari Passu First Charge on all the Immovable
and Movable Fixed Assets of the Company’s Cement Plant in the State of Chattisgarh. These Term Loans from Banks are
repayable in 10 equal Quarterly Instalments.
5 Term Loan from a Bank of ` 82.78 Crore is secured by way of an Exclusive First Charge on Movable Fixed Assets of the
Company's 20 MW Thermal Power Plant at Durg, Chattisgarh. This Term Loan is repayable in 38 unequal Quarterly
Instalments.

194 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023

6 Term Loan from a Bank of ` 69.11 Crore is secured by way of an Exclusive First Charge on all the Immovable & Movable Fixed
Assets of the Company’s Cement Grinding Unit at Cuttack, Odisha. This Term Loan is repayable in 43 equal Quarterly
Instalments.
7 Interest Free Loan (IFL) from The Director of Industries & Commerce, Haryana of ` 68.53 Crore granted to Company in
relation to its Cement Grinding Unit at Jhajjar, Haryana, is secured by Bank Guarantee of equivalent amount and shall be
repaid at the end of 5th year from the respective disbursement dates. The said IFL is recognised on amortised cost basis.
8 Foreign Currency Term Loan (ECB) from a Bank of ` 203.94 Crore are secured by way of a Pari Passu First Charge on all the
Immovable and Movable Fixed Assets pertaining to the Company’s Cement Unit in the State of Rajasthan subject to the prior
charges in favour of Banks on Specied Assets and Company’s Banks for Working Capital on Specied Movables Assets. This
ECB is repayable in 7 unequal Annual Instalments commencing from 28th September 2023
9 Public Deposits represents the Deposits accepted by the Company from Public under its Fixed Deposit Scheme having
maturity of 1, 2 & 3 years from the date of deposits.
10 The above outstanding Term Loans are net of the Processing charges as per IND AS 109

` In Crore (10 Million)

As at As at
31st March 2023 31st March 2022

Note-20 Non Current Lease Liabilities

Lease Liabilities 23.90 21.05
23.90 21.05

Note-21 Other Non Current Financial Liabilities

Trade and other Deposits 190.11 160.34
Other Liabilities 45.59 49.55
Financial Obligation of Corporate Guarantee 55.27 34.69
290.97 244.58

Note-22 Non Current Provisions

Provision for Employees' Benets 15.59 11.05

15.59 11.05

Note-23 Deferred Tax Liabilities/(Assets) (Net)

Deferred Tax Liability
Related to Property, Plant and Equipments 359.34 357.02
Others 11.82 12.60
Less: Deferred Tax Assets
Expenses / Provisions allowable 69.80 64.05
Others 10.57 10.52
MAT Credit Entitlement 131.22 200.72
Deferred Tax Liabilities (Net) 159.57 94.33

Note-24 Other Non-Current Liabilities

Deferred Revenue 1.74 7.42
Liability for Employees Subsidised Car Scheme 5.92 5.87
Government and other dues 82.99 80.98
90.65 94.27

INTEGRATED ANNUAL REPORT 2022-23 195

JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023
` In Crore (10 Million)
As at As at
31st March 2023 31st March 2022

Note-25 Short Term Borrowings

Current maturities of long-term debts (Refer Note-19) 250.53 183.36
Unsecured Loans
Public Deposits 4.28 5.31
254.81 188.67
Note - Working Capital Borrowings from Banks are secured / to be secured by hypothecation of Stocks and Book Debts etc. of the
Company, both present & future and by a second charge on the Movable & Immovable Fixed Assets of the Company’s Cement Plants in
the States of Rajasthan and Chattisgarh (except those assets which are exclusively charged to other lenders)

Note-26 Finance Lease Liabilities

Lease Liabilities 9.52 8.96
9.52 8.96

Note-27 Trade Payables

Micro and Small Enterprises (refer note 64) 16.28 8.78
Others 495.68 289.55
511.96 298.33
Trade Payable Ageing
Outstanding For Following Periods From Due Date of Payment
as on 31st March'23
Particular Not Due Less Than 1-2 years 2-3 More than Total
1 year years 3 year
(i) MSME 13.97 2.24 0.07 0.00 - 16.28
(ii) Others 454.70 38.03 1.67 0.87 0.41 495.68
(iii) Disputed dues - MSME - - - - - -
(iv) Disputed dues - Others - - - - - -
Total 468.67 40.27 1.74 0.87 0.41 511.96
Outstanding For Following Periods From Due Date of Payment
as on 31st March'22
Particular Not Due Less Than 1-2 years 2-3 More than Total
1 year years 3 year
(i) MSME 6.23 2.51 0.03 - 0.01 8.78
(ii) Others 248.39 39.10 1.07 0.50 0.49 289.55
(iii) Disputed dues - MSME - - - - - -
(iv) Disputed dues - Others - - - - - -
Total 254.62 41.61 1.10 0.50 0.50 298.33
` In Crore (10 Million)
As at As at
31st March 2023 31st March 2022
Note-28 Other Current Financial Liabilities (At amortised cost)
Interest Accrued but not due on borrowings 6.24 5.41
Unclaimed Dividends # 1.50 1.39
Unclaimed Matured Public Deposits and Interest # 0.48 1.11
Capital Creditors 2.48 9.65
Other Liabilities (including Rebates to Customers) @ 314.56 334.64
Marked to Market Loss (FVTPL) 2.29 -
327.55 352.20
# Investor Education and Protection Fund will be credited as and when due.
@ nil related to Subsidiary (Previous year ` 3.76 crore)
196 JK Lakshmi Cement Ltd.
 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023
` In Crore (10 Million)
As at As at
31st March 2023 31st March 2022

Note-29 Other Current Liabilities

Advance from Customers 82.02 88.84
Government and other dues 153.75 188.81
Deferred Revenue 5.68 5.68
241.45 283.33

Note-30 Current Provisions

Provision for Employees' Benet 5.04 15.25
5.04 15.25

Note-31 Current Tax Liabilities/(Assets) (Net)

Provision for Taxation (Net of Taxes paid) (5.04) 0.41
(5.04) 0.41

` In Crore (10 Million)

For the year ended For the year ended
31st March 2023 31st March 2022

Note-32 Revenue From Operations@

Revenue from Contracts with Customers
Sale of Products
Cement 5,291.51 4,332.38
Clinker and Value Added Products (VAP) 778.20 705.73
6,069.71 5,038.11
Other Operating Revenues 1.34 2.67
6,071.05 5,040.78
@ Refer note no.70

Note-33 Other Income

Interest Income 27.11 22.85
Interest income from other nanical asset at amortised cost 6.88 7.11
Prot on sale* of (Net of unrealised gain of previous year ` 16.35 crore
(previous year13.58 crore)
Current Investments 15.99 20.78
Prot/(loss) on Sale of Property Plant & Equipments (Net) 0.31 5.28
Other Non - Operating Income 11.94 11.23
62.23 67.25
* Inclusive of fair value gain of ` 4.87 crore (Previous year gain of ` 3.16 crore)

Note-34 Cost of Material Consumed

Raw Material Consumed 925.69 806.97
925.69 806.97
Note-35 Purchse of Stock - in - Trade
Purchase of Traded Goods 689.25 478.12
689.25 478.12

INTEGRATED ANNUAL REPORT 2022-23 197

JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023
` In Crore (10 Million)
For the year ended For the year ended
31st March 2023 31st March 2022

Change In Inventories of Finished Goods,

Note-36
Work - in - Progress and Stock - in - Trade
Opening Stocks
Work -in -Progress 86.68 45.42
Finished Goods 34.24 28.66
Stock-in-Trade 1.04 1.08
121.96 75.16
Closing Stocks
Work -in -Progress 111.29 86.68
Finished Goods 37.53 34.24
Stock-in-Trade 6.55 1.04
155.37 121.96
Less : Preoperative period Stocks (0.21) -
(33.20) (46.80)

Note-37 Employee Benet Expense

Salaries and Wages 294.02 279.76
Contribution to Provident and Other Funds 21.67 18.55
Staff Welfare Expenses 33.44 28.13
349.13 326.44

Note-38 Power and Fuel

Power and Fuel 1,543.91 1,065.64
1,543.91 1,065.64

Note-39 Transport, Clearing & Forwarding charges

Transport, Clearing & Forwarding charges 1,208.60 1,042.82
1,208.60 1,042.82

Note-40 Finance Cost

Interest expenses# 80.21 81.66
Interest expenses at amortised cost 6.10 8.42
Interest on lease liabilities 3.66 3.36
Other borrowing cost 1.53 2.87
91.50 96.31
#net of nance cost capitalised refer note 59

Note-41 Depreciation and Amortization Expense

Depreciation on Property, Plant and Equipment 191.79 189.34
Amortisation on Intangible Assets 1.75 1.18
193.54 190.52

198 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023
` In Crore (10 Million)
For the year ended For the year ended
31st March 2023 31st March 2022

Note-42 Other Expenses

Consumption of Stores and Spares* 144.03 116.54
Consumption of Packing Materials 191.76 185.74
Rent (Net of realisation ` 0.73 crore, previous year ` 0.65 crore ) 10.61 10.45
Repairs to Buildings 6.42 6.24
Repairs to Machinery 56.16 46.05
Insurance 9.45 7.92
Rates and Taxes 4.18 5.07
Commission on Sales 109.81 73.46
Directors' Fee & Commission 4.10 2.00
Provision for Doubtful Debts 0.92 2.14
Advertisement and Sales Promotion 54.82 54.35
Travelling, Consultancy & Misc. expenses etc.# 91.14 56.36
683.40 566.32
* Refer note 62C, # Refer note 51 & 62

Note-43 Earning Per Equity Share

Prot After Tax (PAT) 330.77 426.22
Weighted Average number of Equity Shares Outstanding 117670066 117670066
Basic Earnings per equity share (`): (Face value of ` 5 each) 28.11 36.22
Diluted Earnings per equity share (`): (Face value of ` 5 each) 28.11 36.22

Note-44 Financial Risk Management Objectives and Policies.

The Company realizes that risks are inherent & integral part of any business. The primary focus is to foresee the unpredictability of
nancial market & seek to minimize potential adverse effect on its nancial performance. The Company’s activities are exposed to
a variety of nancial risks from its operations. The key nancial risks include market risk (including foreign currency risk, interest
rate risk and commodity risk etc.), credit risk and liquidity risk.
44.1 Market Risk: Market risk is the risk of loss of future earnings, fair values or future cash ows that may results from change
in the price of a nancial instrument. The value of a nancial instrument may change as result of change in the interest
rates, foreign currency exchange rates, equity prices and other market changes may affect market risk sensitive
instruments. Market risk is attributable to all market risk sensitive nancial instruments and deposits, foreign currency
receivables, payables and loans and borrowings. Market risk comprises mainly three types of risk: interest rate risk,
currency risk and other price risk such as equity price risk and commodity risk.
The Company has an elaborate risk management system to inform board members about risk management and
minimization procedures.
a) Foreign Currency Risk: Foreign currency risk is the risk that the fair value or future cash ows of an exposure will
uctuate because of changes in foreign exchange rates. The Company makes certain imports in foreign currency &
therefore is exposed to foreign exchange risk.
The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company
follows established risk management policies, including the use of derivatives like foreign exchange forward
contracts to hedge exposure to foreign currency risk.
Foreign Currency Sensitivity
The following table demonstrates the sensitivity to a reasonable possible change of US $ with ‘all other variables
held constant. The impact on the Company’s prot/(loss) before tax due to changes in foreign exchange rate :

INTEGRATED ANNUAL REPORT 2022-23 199

JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023
` In Crore (10 Million)
Particulars As at March 31, 2023 As at March 31, 2022
Appreciation in USD + ` 0.25 + ` 0.25
Effect on prot/(loss) before tax (0.95) (0.63)
Depreciation in USD - ` 0.25 - ` 0.25
Effect on prot/(loss) before tax 0.95 0.63

b) Interest Rate Risk:- Interest rate risk is the risk that the fair value of future cash ows of a nancial instrument will
uctuate because of changes in market interest rates. Any changes in the interest rates environment may impact
future rates of borrowing. The Company mitigates this risk by maintaining a proper blend of xed & oating rate
borrowings as also a mix of rupee & foreign currency borrowings. The following table shows the blend of
Company’s xed & oating rate borrowings in Indian rupee & in foreign currency :
` In Crore (10 Million)
S.no. Particulars As at March 31, 2023 As at March 31, 2022
1 Loans in rupees
- Fixed rate 64.89 68.31
- Floating rate 482.57 653.49
- Interest free 59.83 53.73
Total 607.29 775.53
2 Loans in US $
- Fixed rate
- Floating rate - -
203.94 187.36
Total 203.94 187.36
3 Grand Total (1+2) 811.23 962.89

The Company regularly scans the market & interest rate scenario to nd appropriate nancial Instruments &
negotiates with the lenders in order to reduce the effective cost of funding.
Interest Rate Sensitivity: The following table demonstrates the sensitivity to a reasonably possible change in
interest rates on nancial assets affected. With all other variables held constant, the Company's prot/(loss) before
tax is affected through the impact on nance cost with respect to our borrowing, as follows:
` In Crore (10 Million)
Particulars As at March 31, 2023 As at March 31, 2022
Increase in interest in basis points + 25 + 25
Effect on prot/(loss) before tax (1.71) (2.10)
Decrease in interest in basis points - 25 - 25
Effect on prot/(loss) before tax 1.71 2.10
The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable
market environment.
(c) Commodity Price Risk and Sensitivity:
The Company is exposed to the movement in price of key raw materials in domestic and international markets. The
Company manages uctuations in raw material price through hedging in the form of advance procurement when
the prices are perceived to be low and also enters into advance buying contracts as strategic sourcing initiative in
order to keep raw material and prices under check, cost of material is hedged to the extent possible.
44.2 Credit Risk:
Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. The Company
is exposed to credit risk from its operating activities (primarily trade receivables).
Trade Receivables:- Customer credit risk is managed based on Company’s established policy, procedures and controls.
The Company periodically assesses the nancial reliability of customers, taking into account the nancial conditions,
current economic trends, and analysis of historical bad debts and aging of trade receivables. Individual credit risk limits
are set accordingly.

200 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023

The credit risk from the organized and bigger buyers is reduced by securing bank guarantees/letter of credits/part advance
payments/post dated cheques. The outstanding’s of different parties are reviewed periodically at different level of
organization. The outstanding from the trade segment is secured by two tier security – security deposit from the dealer
himself, and our business associates who manage the dealers are also responsible for the outstanding from any of the
dealers in their respective region. Impairment analysis is performed based on historical data at each reporting period on
an individual basis. Foraging of trade receivables refer note 12
Financial Instruments and Deposits with Banks:
The Company considers factors such as track record, size of institution, market reputation and service standards to select
the bank with which balances and deposits are maintained. Generally, balances are maintained with the institutions with
which the Company has also availed borrowings. The Company does not maintain signicant cash and deposit balances
other than those required for its day to day operation.
44.3 Liquidity Risk:
Liquidity risk is the risk that the Company will encounter difculty in meeting the obligations associated with its nancial
liabilities that are settled by delivering cash or another nancial asset. The Company’s approach is to ensure, as far as
possible, that it will have sufcient liquidity to meet its liabilities when due.
The Company relies on a mix of borrowings, and excess operating cash ows to meet its needs for funds. The current
committed lines of credit are sufcient to meet its short to medium term expansion needs. The Company monitors rolling
forecasts of its liquidity requirements to ensure it has sufcient cash to meet operational needs while maintaining
sufcient headroom on its undrawn committed borrowings facilities at all times so that the Company does not breach
borrowing limits or covenants (where applicable) on any of its borrowing facilities.
Maturity Prole of Financial Liabilities:
The following table provides undiscounted cash ows towards nancial liabilities* into relevant maturity based on the
remaining period at the balance sheet to the contractual maturity date.
` In Crore (10 Million)
S.No Particulars Undiscounted Due within Due between Due after Total
amount 1 year 1-5 years 5 years
1 As on March 31, 2023
- Borrowings 822.36 258.01 460.92 103.43 822.36
- Trade Payables 511.96 511.96 - - 511.96
- Other liabilities 563.25 327.55 - 235.70 563.25
- Lease liabilities 41.39 12.44 25.99 2.96 41.39
Total 1938.96 1109.96 486.91 342.09 1938.96
2 As on March 31, 2022
- Borrowings 980.57 188.67 621.75 170.15 980.57
- Trade payables 298.33 298.33 - - 298.33
- Other liabilities 562.09 353.74 7.70 200.65 562.09
- Lease liabilities 39.84 8.96 26.90 3.98 39.84
Total 1880.83 849.70 656.35 374.78 1880.83

Note-45 Capital Risk Management

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the nancial covenants. The Company’s primary objective when managing capital is to ensure that it maintains
an efcient capital structure and healthy capital ratios and safeguard the Company’s ability to continue as a going concern in
order to support its business and provide maximum returns for shareholders. The Company also proposes to maintain an optimal
structure to reduce the cost of capital.
For the purpose of the Company’s capital management, capital includes issued capital, securities premium and all other equity
reserves. Net debt includes, interest bearing loans and borrowings less cash and short term deposits

INTEGRATED ANNUAL REPORT 2022-23 201

JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023
` In Crore (10 Million)
Particulars As at March 31, 2023 As at March 31, 2022
Borrowings 811.22 962.89
Less: Cash and cash equivalents (Including current investments & 844.95 886.86
other bank balances)
Net Debt - 76.03
Equity share capital 58.85 58.85
Other equity 2664.89 2393.50
Total Capital 2723.74 2452.35
Capital and Net Debt 2723.74 2528.38
Gearing Ratio - 3.01%
The Company monitors capital using a gearing ratio, which is net debt divided by total Capital plus net Debt. Net Debt is
calculated as total borrowings including short term and current maturities of long term debt. No changes were made in the
objectives, policies or processes for managing capital during the years ended March 31, 2023 and March 31, 2022.

Note-46 Fair Value of Financial Assets and Liabilities

Set out below, is a comparison by class of the carrying amounts and fair value of the nancial instruments of the companies: -
` In Crore (10 Million)
Particulars March 31, 2023 March 31, 2022
Carrying Fair Carrying Fair
Amount Value Amount Value
A. Financial Assets
(i) At Fair Value through Prot or Loss :-
(a) Investments
- Equity Shares 2.10 2.10 2.10 2.10
- Mutual Funds. 134.47 134.47 416.04 416.04
- NCD’s & others 375.77 375.77 131.99 131.99
- Preference Shares* 111.43 111.43 107.84 107.84
(b) Financial Guarantee 55.27 55.27 34.69 34.69
Total (i) 679.04 679.04 692.66 692.66
(ii) At Amortized Cost :-
a) Bank FDs. 325.04 325.04 300.35 300.35
b) Cash & Bank Balances 50.42 50.42 41.30 41.30
c) Trade Receivables 60.51 60.51 34.48 34.48
d) Loans 106.05 106.05 43.04 43.04
e) Others 58.88 58.88 44.66 44.66
Total (ii) 600.90 600.90 463.83 463.83
Total (A) 1279.94 1279.94 1156.49 1156.49
B. Financial Liabilities
(i) At FVTPL
- Financial Guarantee 55.27 55.27 34.69 34.69
(ii) At Amortized Cost
- Borrowings 811.22 811.22 962.89 962.89
- Trade Payables 511.96 511.96 298.33 298.33
- Other Financial Liabilities 563.25 563.25 562.09 562.09
Total (i+ii) 1886.43 1886.43 1823.31 1823.31
Total (B) 1941.70 1941.70 1858.00 1858.00
*Including equity component.

202 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023

Fair Valuation Techniques:

The Company maintains policies and procedures to value Financial Assets & Financial Liabilities using the best and most relevant
data available. The fair values of the nancial assets and liabilities are included at the amount that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following
methods and assumptions were used to estimate the fair values:-
1. Fair Value of cash and deposits, trade receivables, trade payables, and other current nancial assets and liabilities approximate
their carrying amounts largely due to the short-term maturities of these instruments.
2. Other non-current receivables are evaluated by the Company, based on parameters such as interest rates, individual
creditworthiness of the counterparty etc. Based on this evaluation, allowances are considered to account for the expected
losses of these receivables. As at end of each reporting year, the carrying amounts of such receivables, net of allowances (if
any), are not materially different from their calculated fair values.
3. Fair Value of Investments in quoted Mutual Funds and Equity Shares are based on quoted market price at the reporting date.
The fair value of unquoted investments in Preference Shares are estimated by discounting future cash ows using rates
currently available for debt on similar terms, credit risk and remaining maturities. The fair value of unquoted investments in
equity shares are estimated on net assets basis.
4. Fair Value of borrowings from banks and other non-current nancial liabilities, are estimated by discounting future cash
ows using rates currently available for debt on similar terms and remaining maturities.
5. The Fair Values of Derivatives are calculated using the RBI reference rate as on the reporting date as well as other variable
parameters.
Fair Value Hierarchy:
The following table provides the fair value measurement hierarchy of Company’s asset and liabilities, grouped into Level 1 to Level
3 as described below:
i. Level 1: Quoted prices in active markets.
ii. Level 2: Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.
iii. Level 3: Inputs that are not based on observable market data.
The following table provides the fair value measurement hierarchy of Company’s asset and liabilities, grouped into Level 1 to
Level 3 as described below:
(A) Financial Assets
` In Crore (10 Million)
Particulars Level 1 Level 2 Level 3
As at 31st March’2023
Financial Assets at FVTPL
- Unquoted Equity Shares - - 2.10
- Unquoted Preference Shares - - 111.43
- Mutual Funds 134.47 - -
- NCD and others - 375.77 -
- Financial Guarantee - - 55.27
Total Financial Assets 134.47 375.77 168.80
As at 31st March’2022
Financial Assets at FVTPL
- Unquoted Equity Shares - - 2.10
- Unquoted Preference Shares - - 107.84
- Mutual Funds 416.04 - -
- NCD and others - 131.99 -
- Financial Guarantee - - 34.69
Total Financial assets 416.04 131.99 144.63

INTEGRATED ANNUAL REPORT 2022-23 203

JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023

(B) Financial Liabilities

` In Crore (10 Million)
Particulars Level 1 Level 2 Level 3
As at March 31, 2023
Financial Liabilities at FVTPL
- Financial Guarantee - - 55.27
Total Financial Liabilities - - 55.27
As at March 31, 2022
Financial Liabilities at FVTPL
- Financial Guarantee - - 34.69
Total Financial Liabilities - - 34.69
There have been no transfers between Level 1 ,Level 2 and Level 3 during the year ended March 31, 2023

Note-47 Segment Information:

The Company is engaged primarily into manufacturing of cement. The Company has only one business segment as identied by
management namely cementious materials. Segments have been identied taking into account nature of product and
differential risk and returns of the segment. The business segments are reviewed by the vice chairman & managing director of the
Company (Chief Operating Decision Maker).
Information about major customers
There are no revenues from transactions with a single external customer amounting to 10 per cent or more of an entity’s revenues
during the current and previous year.

Note-48 Deferred Revenue:

` in Crore (10 Million)
Particulars As at 31 March 2023 As at 31st March 2022
st

Opening 13.10 14.95

Deferred during the year - 3.82
Released to prot and loss (5.68) (5.67)
Closing 7.42 13.10
Current 5.68 5.68
Non-Current 1.74 7.42

Note-49 Income Tax Expense:

i. Amount recognized in Statement of Prot and Loss :- ` in Crore (10 Million)

Particulars 2022-23 2021-22

A. Current tax
Current Tax 147.80 143.76
Adjustments in respect of current income tax of previous year 0.63 29.53
Total A 148.43 173.29
B. Deferred tax
Relating to origination and reversal of temporary difference 2.26 (41.21)
Total Deferred Tax (net) 2.26 (41.21)
Total Tax Expense (A + B) 150.69 132.08

ii. Deferred Tax recognized in Other Comprehensive Income (OCI): ` in Crore (10 Million)
Particulars 2022-23 2021-22
Deferred Tax (Gain)/Loss on Dened Benet (0.29) (4.66)

204 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023

iii. Reconciliation of effective tax rate. ` in Crore (10 Million)

Particulars 2022-23 2021-22
Accounting prot/(loss) before Income Tax 481.46 558.30
At Applicable Statutory Income Tax Rate 34.944% 34.944%
Computed Income Tax Expense/(Income) 168.24 195.09
Increase/(reduction) in Taxes on account of :-
Income not taxable (1.54) -
Income not taxable during tax holiday period (14.19) (18.24)
Tax on which deduction is not admissible 9.55 14.30
Previous Year Tax Adjustments 0.63 29.53
Reversal of deferred tax liability on account of change in tax rate@ (12.00) (88.60)
Income Tax Expense/(Income) Reported to Prot & Loss 150.69 132.08
@ The Government of India has inserted a New Section 115 BAA in the Income Tax Act, 1961 which provides an option to
the Company for paying Income Tax at reduced rates, subject to certain conditions. The Company is continuing to provide for
Income Tax at Higher Old Rates, based on available MAT Credit Entitlement & various available exemptions / deductions.
However, the Company has applied the Lower Income Tax Rates on Deferred Tax Assets / Liabilities to the extent there are
expected to be realized or settled in future when the Company may be subjected to Lower Tax Rate and accordingly during
the Year ended 31st March 2023, the Company has reversed the Deferred Tax Liability of ` 12.00 Crores (Previous year
` 88.60 Crores)

iv. Reconciliation of Deferred Tax (liabilities)/Assets (Net) ` in Crore (10 Million)

st
Particulars As at 31 March 2023 As at 31stMarch 2022
Opening balance (94.33) (64.12)
Deferred tax recognized in statement of prot and loss (2.26) 41.21
Other comprehensive income 0.29 4.66
Previous year adjustment (0.63) (29.53)
MAT Credit Utilisation (62.64) (46.55)
Closing balance (159.57) (94.33)

v. Deferred Tax:
Deferred Tax relates to the followings: ` in Crore (10 Million)

Particulars 2022-23 2021-22

Deferred Tax Assets related to:
Brought forward losses set off - -
(Disallowances)/Allowances under Income Tax (0.48) (15.10)
Others 0.05 2.67
MAT Credit Entitlement - -
Total Deferred Tax Assets (0.43) (12.43)
Deferred Tax Liabilities related to:
Property, Plant and Equipment (2.32) 70.30
Others 0.78 (12.00)
Total Deferred Tax Liabilities (1.54) 58.30
Net total movement in Statement of Prot & Loss (1.97) 45.87
Movement in Prot & Loss (2.26) 41.21
Movement in OCI 0.29 4.66

INTEGRATED ANNUAL REPORT 2022-23 205

JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023

Note-50 Dividends
The following dividends were declared and paid by the Company during the year
` in Crore (10 Million)
Particulars 2022-23 2021-22

Final Dividend
For the year ended 31st March’2022 – 100% i.e. ` 5.00 per equity 58.84 44.13
share (31st March’2021 – 75% i.e. ` 3.75 per equity share)
Total 58.87 44.13
th
The following dividends were proposed by the board of directors in their meeting held on 19 May 2023, subject to approval
of shareholders at Annual General Meeting and are not recognized as liability.
` in Crore (10 Million)
Particulars 2022-23 2021-22
For the year ended 31st March’2023 75% i.e. ` 3.75 per equity share 44.13 58.84
per equity share (31st March’2022 – 100% i.e. ` 5.00 per equity share)

Note-51 Amount paid to Auditors

` in Crore (10 Million)
S.No. Particulars 2022-23 2021-22
A Statutory Auditor
Statutory Audit Fee 0.20 0.20
Tax Audit Fees 0.04 0.04
Limited review Fee, GST Audit Fee & other Services 0.07 0.15
Reimbursement of expenses 0.02 0.02
B Total (A) 0.33 0.41
C Cost Auditor
Audit fee 0.02 0.02

Note-52 Ratio Analysis and its elements

S. Particulars Units March March % Explanation

No. 31, 2023 31, 2022 Change
1 Current Ratio (Current Assets / Current Liabilities) Times 1.39 1.34 4%
2 Debt Equity Ratio (Total Debt (Borrowing) / Total Equity) Times 0.30 0.39 -24%
3 Debt Service Coverage Ratio (Earnings before Interest, Times 2.72 2.01 36% A
depreciation and taxes / Interest + Principal Repayment)
4 Return on Equity Ratio % 12.76% 18.43% -31% B
(Prot for the period / Average Total Equity)
5 Inventory Turnover Ratio Times 10.19 12.50 -18%
(Net Revenue from Operations / Average Inventory)
6 Trade Receivable Turnover Ratio (Net Revenue from Times 163.62 146.37 12%
Operations / Average Trade Receivable)
7 Trade Payable Turnover Ratio (Purchases of Goods & Times 12.17 11.44 6%
Services / Average Trade Payable)
8 Net Capital Turnover Ratio (Net Revenue from Times 13.21 25.89 -49% C
Operations / Average Working Capital)
9 Net Prot Ratio (Prot for the period / Revenue % 5.44% 8.28% -34% D
from Operations)

206 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023

S. Particulars Units March March % Explanation

No. 31, 2023 31, 2022 Change
10 Return on Capital Employed (Before Tax) % 15.91% 20.01% -20%
(Earnings before Interest, taxes & Exceptional Items /
Average Capital Employed)
11 Return on Investment % 3.47% 3.75% -8%
(Interest Income on xed deposits, bonds and
debentures + Dividend Income + Prot on sale of
Investments + Prot on fair valuation of Investments
carried at FVTPL / Current Investments + Non Current
Investments + Other bank balances)
Reason for Variance
A. Debt Service Coverage Ratio has improved due to reduced Debt Repayment obligation during the Current Year.
B. Return on Equity has fallen due to reduction in Prot primarily emanating from steep increase in the Fuel & Other Input costs.
C. Net Capital Turnover Ratio has fallen due to higher inventory at the year end.
D. Net Prot Ratio has fallen due to reduction in Prot primarily emanating from steep increase in the fuel & Other Input costs.

Note-53 Estimated amount of contracts remaining to be executed on capital account (net of advances) ` 58.00 crore (previous
year ` 17.61 crore).

Note-54 Contingent Liabilities in respect of claims not accepted by the Company (including matters in appeals) and not
provided for are as follows
` in Crore (10 Million)
st
Particulars 31 March 2023 31st March 2022
a) Service tax 6.64 6.64
b) Sale tax and interest thereon 35.40 93.52
c) Income tax 5.78 5.78
d) Excise duty 1.77 1.83
e) Other matters 19.59 9.30
Total 69.18 117.07

Note-55 In respect of certain disallowances and additions made by the income tax authorities, appeals are pending before the
appellate authorities and adjustment, if any, will be made after the same are nally settled.
Note-56 Contingent liability for non-use of jute bags for cement packing upto June 30, 1997, as per Jute Packaging Materials
(compulsory use of packaging commodities) Act, 1987 is not ascertained and the matter is subjudice. The
Government has excluded cement industry from application of the said order from July 01, 1997.
Note-57 Competition Commission of India (CCI) vide its order dated January 19, 2017 had imposed penalty on certain cement
companies including a penalty of ₹ 6.55 crore on the Company pursuant to a reference led by the government of
Haryana. The Company has led an appeal with Competition Appellate Tribunal (COMPAT) against the said order.
COMPAT has granted a stay on CCI order. After the merger of COMPAT with National Company Law Appellate
Tribunal (NCLAT), the Company’s case also stands transferred to NCLAT.
Although based on legal opinion, the Company believes that it has a good case but out of abundant caution the
Company had been provided full amount during the earlier years.
Note-58 Retirement Benet Obligations
A Expenses Recognised for Dened Contribution Plan ` in Crore (10 Million)
Particulars 2022-23 2021-22
Company's contribution to provident fund 15.63 14.09
Company's contribution to ESI 0.51 0.42
Company's contribution to superannuation fund 1.09 1.04
Total 17.23 15.55

INTEGRATED ANNUAL REPORT 2022-23 207

JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023

B Dened Contribution Plan - Provident Fund

The table below shows a summary of the key results of the report including past results as applicable
` in Crore (10 Million)
Particulars2022-23 31-03-2022
Present Value of obligation 140.77
Fair Value of Plan Assets 132.34
Net Assets/(Liabilty) recognised in Balance Sheet as Provision (8.43)

C Dened benet Plans

Below tables sets forth the changes in the projected benet obligation and plan assets and amounts recognised in the
standalone balance sheet as at March 31, 2023 and March 31, 2022, being the respective measurement dates:
i Change in Present Value of Dened Benet Obligation during the Year ` in Crore (10 Million)
Particulars Gratuity (Funded) Leave Encashment
(Unfunded)
Present value of obligation as on 1st April'21 60.70 14.75
Acquisitions / Transfer in /Transfer Out - -
Current service cost 3.75 1.25
Interest cost 3.95 0.96
Benets paid (18.48) (6.04)
Remeasurement - actuarial loss / (gain) 12.48 1.05
Present value of obligation as on 31st March'22 62.40 11.97
Current service cost 3.73 1.92
Interest cost 4.06 0.77
Benets paid (12.80) (5.67)
Remeasurement - actuarial loss / (gain) 0.31 6.63
Present value of obligation as on 31st March'23 57.70 15.62

ii Change in Fair Value of Plan Assets - Gratuity ` in Crore (10 Million)

Particulars 2022-23 2021-22
Fair value of plan assets at beginning of year 51.64 72.28
Acquisitions / Transfer in /Transfer out - -
Expected return on plan assets 3.36 4.70
Employer contributions 22.80 (6.02)
Benet paid (12.80) (18.48)
Actuarial gain / (loss) (0.52) (0.84)
Fair value of plan assets at end of year 64.48 51.64
Present value of obligation 57.70 62.40
Net funded status of plan (6.78) 10.76
Actual return on plan assets 2.84 3.86

208 JK Lakshmi Cement Ltd.

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JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023

iii Expenses recognised in Statement of Prot and Loss ` in Crore (10 Million)
Particulars Gratuity (Funded) Leave Encashment
(Unfunded)
Current service cost 3.75 1.25
Interest cost 3.95 0.96
Expected return plan assets (4.70) -
Remeasurement - actuarial loss / (gain) - 1.05
For the year ended 31st March'22 3.00 3.26
Actual return on plan assets 3.86 -
Current service cost 3.73 1.92
Interest cost 4.06 0.77
Expected return plan assets (3.36) -
Remeasurement - actuarial loss / (gain) - 6.63
For the year ended 31st March'23 4.43 9.32
Actual return on plan assets 2.84 -

iv Recognised in Other Comprehensive Income

Particulars Gratuity
Remeasurement - actuarial loss/(gain) 13.32
For the year ended 31st March'22
Remeasurement - actuarial loss/(gain) 0.83
For the year ended 31st March'23
v The Principal Actuarial Assumptions used for estimating the Company's Dened obligations are set out below:-
Weighted average actuarial assumptions As at 31st March 2023 As at 31st March 2022
Discount rate 7.00% 6.50%
Expected rate of increase in salary 5.50% 5.50%
Expected rate of return on plan assets 6.50% 6.50%
Mortality rate 100% of IALM (2012--14) 100% of IALM (2012--14)
Expected average remaining working lives of employees (years) 15.84 15.91

The assumption of future salary increase takes into account the ination, seniority, promotion and other relevant factors
such as supply and demand in employment market.

vi Sensitivity analysis ` in Crore (10 Million)

Particulars Change in Increase/(Decrease)
assumption in obligation
Gratuity :-
For the year ended 31st March'22
Discount rate 0.50% (1.59)
-0.50% 1.72
Salary growth rate 0.50% 1.73
-0.50% (1.61)
For the year ended 31st March'23
Discount rate 0.50% (1.61)
-0.50% 1.74
Salary growth rate 0.50% 1.76
-0.50% (1.64)

INTEGRATED ANNUAL REPORT 2022-23 209

JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023
` in Crore (10 Million)
Particulars Change in Increase/(Decrease)
assumption in obligation
Leave Encashment :-
For the year ended 31st March'22
Discount rate 0.50% (0.43)
-0.50% 0.47
Salary growth rate 0.50% 0.47
-0.50% (0.43)
For the year ended 31st March'23
Discount rate 0.50% (0.68)
-0.50% 0.74
Salary growth rate 0.50% 0.74
-0.50% (0.69)

Sensitivities due to mortality & withdrawals are not material & hence imapct of change not calculated.

vii History of experience adjustments is as follows ` in Crore (10 Million)

Particulars Gratuity
For the year ended 31st March'2022
Plan liabilities - loss/(gain) 12.48
Plan assets - gain/(loss) (0.84)
For the year ended 31st March'2023
Plan liabilities - loss/(gain) 0.31
Plan assets - gain/(loss) (0.52)

Estimate of expected benet payments ` in Crore (10 Million)

Particulars Gratuity Leave Encashment
April'2023 - March'2024 22.10 3.81
April'2024 - March'2025 3.18 0.79
April'2025 - March'2026 2.83 0.65
April'2026 - March'2027 2.79 0.58
April'2027 - March'2028 2.73 0.68
April'2028 - March'2029 2.39 0.62
April'2029 onwards 21.68 8.49
Total 57.70 15.62

viii Statement of Employee benet provision ` in Crore (10 Million)

Particulars 2022-23 2021-22
Gratuity 5.26 16.32
Leave encashment 9.32 3.26
Superannuation 1.09 1.04

210 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023

ix Current and Non-Current provision for Gratuity and Leave Encashment

The following table sets out the funded status of the plan and the amounts recognised in the company's balance sheet.
` in Crore (10 Million)
Particulars Gratuity (Funded) Leave Encashment
(Unfunded)
For the year ended 31st March'2022
Current 10.76 4.38
Non current - 7.59
For the year ended 31st March'2023
Current - 3.81
Non current - 11.81
x Employee benet expense ` in Crore (10 Million)
Particulars 2022-23 2021-22
Salary and wages 294.02 279.76
Costs-dened benet plan 4.44 3.11
Costs-dened contribution plan 17.23 15.44
Welfare expense 33.44 28.13
Total 349.13 326.44
OCI presentation of Dened Benet plan
Gratuity is in the nature of dened benet plan, re-measurement gains/(losses) on dened benet plans is shown under OCI
as Items that will not be reclassied to prot or loss and also the income tax effect on the same.
Presentation in Statement of Prot & Loss and Balance Sheet
Expense for service cost, net interest on net dened benet liability (asset) is charged to statement of prot & loss. IND AS 19
does not require segregation of provision in current and non-current, however net dened liability (assets) is shown as
current and non-current provision in balance sheet as per IND AS 1.
Actuarial liability for short term benets (leave encashment cost) is shown as current and non-current provision in balance sheet.
When there is surplus in dened benet plan, company is required to measure the net dened benet asset at the lower of;
the surplus in the dened benet plan and the assets ceiling, determined using the discount rate specied, i.e. market yield at
the end of the reporting period on government bonds, this is applicable for domestic companies, foreign company can use
corporate bonds rate.
The company assesses these assumptions with its projected long-term plans of growth and prevalent industry standards. The
mortality rates used are as published by one of the leading life insurance companies in India.
Capital work in progress includes machinery in stock, construction / erection materials and also
Note-59
include the following pre -operation expenses pending allocation.
` in Crore (10 Million)
2022-23 2021-22
Raw material consumption 4.11 -
Stores & spares consumption 0.51 -
Power & fuel 1.50 -
Repair & Maintenance 0.95 -
Transport ,clearing and forwarding charges 0.87 -
Travelling, consultancy & miscellaneous expenses 0.20 -
Finance costs - 1.71
8.14 1.71
Less: Sale 5.94 -
Increase in stock 0.21 -
1.99 1.71
Add : Expenditure upto previous year - 0.32
Less: Transferred to Property, Plant & Equipment 1.99 2.03

INTEGRATED ANNUAL REPORT 2022-23 211

JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023

Note-60 Expenses charged to cost of material consumed

` in Crore (10 Million)
2022-23 2021-22
Salaries & wages 5.90 4.87
Contribution to provident and other funds 0.39 0.35
Employees' welfare expenses 0.72 0.61
Consumption of stores and spares 40.88 35.05
Power & fuel 9.49 8.26
Repairs to machinery 4.52 3.90
Material handling 119.32 114.29
Insurance 0.11 0.15
Rates and taxes 26.14 25.64
Royalty 80.72 79.59
Miscellaneous expenses 0.88 0.51
Total 289.07 273.22

Note-61 Related Party Disclosure

List of related parties :

a) Direct and step down subsidiary
Hansdeep Industries & Trading Company Limited (HITCL)
Udaipur Cement Works Limited (UCWL)
Ram Kanta Properties Private Limited (RKPPL)
b) Associates
Dwarkesh Energy Limited (DEL)
c) Key management personnels (KMPs)
Shri Bharat Hari Singhania Chairman
Smt. Vinita Singhania Vice Chairman & Managing Director
Shri S.K. Wali (Ceased to be Whole-time director w.e.f. 1st August'22) Whole-time Director
Dr. S. Chouksey (Ceased to be Whole-time director w.e.f. 1st August'22) Whole-time Director
Shri Arun Kumar Shukla (w.e.f. 1st August'22) President and Director
Shri B.V. Bhargava (Ceased to be director w.e.f. 31st August'22) Independent & Non Executive Director
Ms. Bhaswati Mukherjee Independent & Non Executive Director
Shri N.G. Khaitan Independent & Non Executive Director
Dr. K.N. Memani (Ceased to be director w.e.f. 26th April'22) Independent & Non Executive Director
Dr. Raghupati Singhania Non Independent & Non Executive Director
Shri Ravi Jhunjhunwala Independent & Non Executive Director
Shri Sadhu Ram Bansal (w.e.f. 1st July'22) Independent & Non Executive Director
Shri Sudhir A Bidkar Chief Financial Ofcer
Shri Brijesh K Daga (Ceased w.e.f. 1st September'22) Sr. VP & Company Secretary
Shri Amit Chaurasia (w.e.f. 1st September'22) GM & Company Secretary
d) Enterprise which holds more than 20% of Equity share
Bengal & Assam Company Limited (BACL)
e) Trusts under common control
JK Lakshmi Cement Ltd. Compulsory Employees Provident Fund(EPF)
JK Lakshmi Cement Ltd. Ofcers Superannuation Fund(SF)
JK Lakshmi Cement Ltd. Employees Gratuity Fund(GF)

212 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023

The following transactions were carried out with related parties in the ordinary course of business :
` in Crore (10 Million)
Nature of Transactions Refer name from above
UCWL HITCL DEL BACL Trusts UCWL HITCL DEL BACL Trusts

2022-23 2021-22
- Sharing of expenses received 3.20 0.10 0.02 0.09 1.39 0.02 0.04 0.07 -
- Payment of expenses - 1.34 - 2.66 - 1.75 - 2.12 -
- Sale of clinker/cement/others 261.93 - - - 204.66 3.82 - - -
- Purchase of cement/others 571.88 - - - 431.90 - - - -
- Other income 2.51 - - 0.36 1.53 - - 2.49 -
- Loan given 85.40 - - - - - - - -
- Advances given 21.25
- Advances received back - - - 3.33 - - - 3.33 -
- Loan/ICD received back 10.00 - - 10.00 - - - 30.00
- Contribution - - - - 12.73 - - - - 7.57
- Corporate guarantee given on 750.00 - 350.00 -
behalf of
Outstanding as at year end:
- Advance/Balance 44.48 30.01 - - (3.77) 8.98 - - -
Receivable (Payable)
- Loan Receivable 85.40 5.65 10.00 18.04 -
EPF - (Contribution Payable) - - - (0.14) - - - (1.58)
SF - Advance Receivable/ (1.09) 0.67
(Contribution Payable)
GF - Advance Receivable/ 6.78 (10.76)
(Contribution Payable)
- Corporate Guarantee 1,052.13 - 906.27 -
Outstanding

ii) Remuneration Paid to KMPs

Particulars 2022-23 2021-22

Short term employee benets 32.04 50.51
Post employment benets* 5.93 12.32
Other payments 4.10 2.00
Receivable/(Payable) : (12.58) (27.68)
*As the liability for gratuity and leave encashment are provided on actuarial basis for the company as a whole. The
amount pertaining to KMPs are not included above.
The transactions with related parties have been made on terms equivalent to those that prevail in arm's length
transactions.

INTEGRATED ANNUAL REPORT 2022-23 213

JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023

Note-62 a) Disclosure in respect of Corporate Social Responsibility Expenditure: ` in Crore (10 Million)

Particulars 2022-23 2021-22

Amount required to be spent by the company during the year. 9.39 6.14
Amount of expenditure incurred:-
JK Lakshmi Arogya Project (Health) 0.83 1.20
JK Lakshmi Vidya Project (Education) 1.62 0.60
JK Lakshmi Aajivika Project (Livelihood) 4.56 0.48
JK Lakshmi Kaushal Parshikshan Project (Skill Development) 0.03 0.02
JK Lakshmi Swajal & Swachhta Project (Water & Sanitation) 0.82 0.56
JK Lakshmi Gramin Vikas Project (Rural Development) 0.31 1.67
Overhead Expenditure 0.22 0.16
Total 9.39 4.69
Shortfall at the end of year Nil 1.45
Total of previous years shortfall 1.23 1.45

Reason for Shortfall - On account of Ongoing Projects and Deposited in a Separate Bank Account.
b) foreign exchange uctuation of gain (net) ` 1.30 crore (previous year gain (net) ` 4.56 crore).
c) Consumption of stores and spares is net of scrap sale ` 6.66 crore (previous year ` 8.56 crore).
d) Miscellaneous expenses include, contribution of ` 3.00 crore (previous year ` 6.00 crore) made to a political
party/electoral board as prescribed u/s 182 of the Companies Act, 2013
Note-63 Derivative Financial Instruments
The Company uses foreign currency denominated borrowings and foreign exchange forward contracts (including option
contracts - seagull structure) to manage some of its transaction exposures. The foreign exchange forward contracts and
foreign exchange option contracts are not designated as cash ow hedges and are entered into for periods consistent
with foreign currency exposure of the underlying transactions, generally from one to thirty six months.
Foreign Currency Risk
The Company has entered into foreign exchange forward contracts and foreign exchange option contracts with the
intention to reduce the foreign exchange risk on repayment of buyer’s credit and foreign currency loan, these
contracts are not designated in hedge relationships and are measured at fair value through prot or loss.
Forward & Option Contract outstanding for the purpose of hedging at the Balance Sheet Date

S. No. Foreign Currency As at March 31, 2023 As at March 31, 2022

F CY Amount F CY Amount
(Rs Crore) (Rs Crore)
A Forward
USD 5.38 Mn 44.70 Nil Nil
Euro Nil Nil 0.94 Mn 8.03
B Option
USD 11.76 Mn 97.79 Nil Nil

Foreign Currency Exposure not hedged as at the Balance Sheet Date

S. No. Foreign Currency As at March 31, 2023 As at March 31, 2022
F CY Amount F CY Amount
(Rs Crore) (Rs Crore)
1 USD
ECB 21.50 Mn 176.69 25.00 Mn 189.48

214 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023

Note-64 Based on information available with the Company in respect of MSME (‘The Micro Small & Medium Enterprises
Development Act 2006’). The details are as under:
` in Crore (10 Million)
2022-23 2021-22
I. Principal and Interest amount due and remaining unpaid as at 31st March 2023. 16.28 8.78
II. Interest paid in terms of section 16 of the MSME Act during the year - -
III. The amount of Interest due and payable for the period of delay in making payment - -
(which have been paid but beyond the appointed day during the year) but without
adding the interest specied
IV. Payment made beyond the appointed day during the year - -
V. Interest Accrued and unpaid as at 31st March 2023 - -

Note-65 The Company has given Corporate Guarantee to the Bankers of Udaipur Cement Works Limited (UCWL), a 72.54%
subsidiary of the Company for collaterally securing for the following facilities granted by Banks to UCWL
(i) The Term Loans aggregating to ` 1289.79 Crore (Outstanding as on 31.3.2023 is ` 652.13 Crore) (Previous Year :
` 565 Crore - Outstanding ` 506.27 Crore) and
(ii) The Working Capital Facilities of ` 50.00 Crore (Previous Year : ` 50.00 Crore )
The Company has received a Counter Indemnity of ` 1339.79 Crore from UCWL against above Corporate Guarantee
given by the Company
The Company has also given Corporate Guarantee to the Trustee of Guaranteed Rated Listed Redeemable Non
Convertible Debentures of ` 350.00 Crore (Outstanding as on 31.3.2023 is ` 350.00 Crore) (Previous Year : Unlisted
Redeemable Non Convertible Debentures of ` 350.00 Crore (Outstanding as on 31.3.2022 is ` 350.00 Crore)) issued
on Private Placement Basis by its Subsidiary Udaipur Cement Works Ltd. (UCWL). The Company has received a Counter
Indemnity of ` 350.00 Crore from UCWL against this Corporate Guarantee.
Note-66 a. Udaipur Cement Works Ltd (UCWL) (a 72.54% Subsidiary of the Company) is proposing a Rights Issue upto an
amount of ` 450 Crores to part-nance its ongoing Cement Expansion Project. Apart from Subscription to its
Rights Entitlement, the Company shall also be subscribing to any unsubscribed portion of the Public
Shareholding of 27.46% in the Proposed Rights Issue of UCWL. Pending the launch of the Rights Issue by UCWL,
the Company has given an Unsecured Loan of ` 85.40 Crores to UCWL.
b. Hansdeep Industries and Trading Company Ltd,(HITCL) the wholly owned subsidiary of the company (JKLC) has
been declared as Preferred Bidder for one of Limestone Block 4GIIA located at Dist. Nagaur, Rajasthan by
Directorate of Mines & Geology Department, Udaipur. As per the terms of allotment the HITCL has to make total
payments of ` 43.21 Crore. The HITCL has made the payment of ` 8.65 Crore upto 31st March,2023.
This Limestone Mines would be transferred by HITCL to JKLC at some stage, in future, after obtaining requisite
approval from the Government of Rajasthan.
Note-67 a) Loans and Advances pursuant to regulation 23(3) read with schedule of the SEBI (Listing Obligation and
Disclosure Requirements) Regulation 2015
An amount of ` 6.67 crore (including ` 3.33 crore receivable within one year) (previous year ` 10.00 crore)
(maximum balance due ` 10.00 crore, previous year ` 13.34 crore) due from BACL and arising out of an earlier
scheme of reconstruction, arrangement and demerger sanctioned by Hon’ble High Courts of Rajasthan
(Jodhpur) and Delhi. (Loans / Advances to employees as per Company’s policy are not considered.)
b) Loans given as per regulation 34 (3) and 53(f) read with schedule v of SEBI (LODR) regulation of listing
regulation of listing regulation with stock exchanges.
Loan given to Udaipur Cement Works Limited is ` 85.40 crore (previous year ` 10 crore). Maximum balance
outstanding during the year is ` 95.40 crore. ICD given to Bengal & Assam Company Limited is nil crore (previous
year ` 10 crore) Maximum balance outstanding during the year is ` 10 crore (previous year ` 40 crore).

INTEGRATED ANNUAL REPORT 2022-23 215

JK Lakshmi Cement Limited
Notes to Standalone Financial Statements for the Year ended March 31, 2023

c) Disclosure of transaction in pursuant to regulation 34(3) read with schedule V, part A, clause 2 of the SEBI
(Listing Obligation and Disclosure Requirements) Regulation 2015, with promoter/promoter group
companies holding more than 10% of equity share capital of the Company.
Name of Company Nature of transaction and amount
Bengal & Assam Company Limited Refer note 61
d) Details of loans given, investments made and guarantee given covered u/s 186(4) of the Companies
Act 2013.
The company has given loan to Subsidiary, Udaipur Cement Works Ltd (UCWL) amounting to ` 85.40 Crore
(Previous year ` 10 Crore for general business purpose) against the proposed right issue by the Udaipur Cement
Works Ltd. The Company has also given Corporate guarantee of ` 1052.13 Crore to the Bank for a long term loan
and working capital facility availed by its Subsidiary, Udaipur Cement Works Ltd (Previous Year ` 906.27 Crore).
Note-68 During the year the Company has received subsidy of ` 0.21 crore (previous year ` 0.21 crore) in terms of Industrial &
Investment Policy, 2011 (Haryana) towards exemption from electricity duty, which been netted from power & fuel
expenses.
Note-69 A. Impairment review :
Assets are tested for impairment whenever there are any internal or external indicators of impairment.
Impairment test is performed at the level of each Cash Generating Unit (‘CGU’) or groups of CGUs within the
Company at which the assets are monitored for internal management purposes, within an operating segment.
The impairment assessment is based on higher of value in use and value from sale calculations. During the year,
the testing did not result in any impairment in the carrying amount of other assets (except CWIP, refer note 2A).
The measurement of the cash generating units’ value in use is determined based on nancial plans that have been
used by management for internal purposes. The planning horizon reects the assumptions for short to- mid-term
market conditions
Key assumptions used in value-in-use calculations are:
(i) Operating margins (Earnings before interest and taxes),
(ii) Discount Rate and
(iii) Growth Rates and (iv) Capital Expenditure
B. Events occurring after the balance sheet date
No adjusting or signicant non-adjujsting events have occured between the reporting date and date of
authorization of these nancial statements
Note-70 Ind AS 115 disclosures

S. No. Particulars 2022-23 2021-22

1 Contract Balances
Trade Receivables (Refer Note No. 12) 60.51 34.48
Contract Liabilities (Refer Note No. 29) 82.02 88.84
2 Reconciling the amount of revenue recognised during the year
in the statement of prot and loss with the contracted price:
Revenue as per contract prices 6433.40 5349.49
Discounts (363.69) (311.38)
Revenue from contract with customer (Refer Note No. 32) 6069.71 5038.11
3 Revenue recognised that was included in the contract liability
balance at the beginning of the period
Sale of goods 88.84 88.37

Note-71 Exceptional Item of Nil (previous year ` 23.39 crore) includes:

a. Impairment of nil (previous year ` 36.65 crore) in the Carrying Cost of an Asset under construction at Company’s
Cement Plant at Durg.

216 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Standalone Financial Statements for the Year ended March 31, 2023

b. Provision of nil (previous year ` 64.42 crore) made for matters under sub-judice
c. Net of the Provision nil (previous year ` 75.68 crore) written back for the matters under sub-judice settled during
the Year.
Note-72 Other statutory information
i. The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property.
ii. The Company have not traded or invested in Crypto Currency or Virtual Currency during the nancial year.
iii. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
iv. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:
• directly or indirectly lend or invest in other persons or entities identied in any manner whatsoever by or on
behalf of the company (Ultimate Beneciaries) or
• provide any guarantee, security or the like to or on behalf of the Ultimate Beneciaries.
v. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
• directly or indirectly lend or invest in other persons or entities identied in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneciaries) or
• provide any guarantee, security or the like on behalf of the Ultimate Beneciaries
vi. The Company have no such transactions which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in Tax assessments under Income Tax Act, 1961.
vii. The quarterly Return of current assets led by the Company with Bank having no material variances with Books of
Account, through the Company has not utlised limit during the year.
viii. Struck off Companies
` in Crore (10 Million)
Name of the struck Nature of Transaction Balance outstanding Balance outstanding
off Company transactions during the year as at March 31, 2023 as at March 31, 2022
Oriental Engineering
Works Pvt. Ltd. Payable - - 0.01

Note-73 In earlier years, the Company had acquired 35% holding (at a cost of ` 2.10 crore) in M/s. Sungaze Power Private
Limited (SPPL) which has set up a 6.50 MW solar Power Plant under Captive Power Plant (CPP) model at our Durg
Cement Plant in the state of Chhattisgarh. The Company, as a Captive User, has no role & responsibility in the day-to-
day management & operations of SPPL. As such, SPPL has not been considered as an Associate for consolidation
purposes.
Note-74 Previous year’s gures have been re-grouped/re-classied wherever necessary and gures less than ` 50000 have
been shown as actual in bracket.

As per our report of even date For and on behalf of the Board of Directors
For S. S. KOTHARI MEHTA & COMPANY B.H. SINGHANIA Chairman
Chartered Accountants VINITA SINGHANIA Vice Chairman & Managing Director
Firm Registration No.: 000756N

}
Dr. R.P. SINGHANIA
SUNIL WAHAL N.G. KHAITAN
Partner SUDHIR A. BIDKAR RAVI JHUNJHUNWALA Directors
Membership No.: 087294 Chief Financial Ofcer SADHU RAM BANSAL
BHASWATI MUKHERJEE
Place: New Delhi AMIT CHAURASIA
Date: 19th May, 2023 Company Secretary ARUN KUMAR SHUKLA President & Director

INTEGRATED ANNUAL REPORT 2022-23 217

JK Lakshmi Cement Limited
Standalone Cash Flow Statement
For the year ended 31st March, 2023
` In Crore (10 Million)
Particulars For the year ended For the year ended
March 31, 2023 March 31, 2022

A. CASH FLOW FROM OPERATING ACTIVITIES

Net Prot before Tax 481.46 558.30
Adjustments for:
Depreciation and Amortization Expense (net) 193.54 190.52
Interest Income (27.11) (22.85)
Interest income from other nanical asset at amortised cost (6.88) (7.11)
(Prot) / Loss on sale of Property, Plant and Equipment (Net) (0.31) (5.28)
(Prot) / Loss on sale of Current Investments (net) (27.48) (5.10)
(Gain) / Loss on Fair Valuation of Current Investments 11.49 (15.68)
Finance Costs 91.50 96.31
Provision for Doubtful Debts 0.92 2.14
Foreign Exchange Difference (net) (8.29) 0.17
Exceptional Items - (23.39)
Operating Prot before Working Capital changes 708.84 768.03
Adjustments for:
Trade and Other Receivables (175.96) 111.01
Inventories (209.21) (175.70)
Trade and Other Payables 220.89 (65.21)
Cash generated from Operations 544.56 638.13
Income Tax Payments (Net) (90.61) (98.22)
Net Cash from Operating Activities 453.95 539.91
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Property, Plant and Equipment and Intangible Assets (146.51) (119.95)
Sale of Property, Plant and Equipment 4.96 7.00
(Purchase) / Sale of Investments (net) 29.61 (163.52)
Encashment / (Investments) in bank deposits 37.98 41.73
Interest Received 25.77 27.48
Net Cash from / (used in ) Investing Activities (48.19) (207.26)
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Long-term Borrowings - 182.63
Repayment of Long-term Borrowings (173.64) (336.35)
Repayment of Lease Obligation - Principal (9.91) (5.68)
Repayment of Lease Obligation - Interest (3.66) (3.36)
Short-term borrowings (net) (1.03) (8.67)
Interest and Financial charges paid (87.00) (95.47)
Dividend paid (58.73) (44.28)
Net Cash from / (used in) Financing Activities (333.97) (311.18)

218 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Standalone Cash Flow Statement
For the year ended 31st March, 2023
` In Crore (10 Million)
Particulars For the year ended For the year ended
March 31, 2023 March 31, 2022
D. Increase / (Decrease) in
Cash and Cash Equivalents 71.79 21.47
E. Cash and Cash Equivalents as at the beginning of the year 67.13 45.66
F. Cash and Cash Equivalents as at the close of the year 138.92 67.13

Notes:
1. Total Liabilities from Financing Activities Long Term Short Term Long Term Short Term
Opening 957.58 5.31 1110.74 13.98
Cash Flow Changes
Inow / (Repayments) (173.64) (1.03) (153.72) (8.67)
Non - Cash Flow Changes
Others 23.01 - 0.56 -
Closing 806.95 4.28 957.58 5.31

2. Cash and Cash Equivalents include:

- Cash, Cheques in hand and remittances in transit 1.36 0.56
- Balances with Scheduled Banks 137.56 66.57
138.92 67.13

3. The cash ow statement has been prepared under the indirect method as set out in Indian Accounting Standard (Ind AS) 7
Statement of Cash Flows.
4. Previous year's gures have been re-arranged and re-cast wherever necessary.

As per our report of even date For and on behalf of the Board of Directors
For S. S. KOTHARI MEHTA & COMPANY B.H. SINGHANIA Chairman
Chartered Accountants VINITA SINGHANIA Vice Chairman & Managing Director
Firm Registration No.: 000756N

}
Dr. R.P. SINGHANIA
SUNIL WAHAL N.G. KHAITAN
Partner SUDHIR A. BIDKAR RAVI JHUNJHUNWALA Directors
Membership No.: 087294 Chief Financial Ofcer SADHU RAM BANSAL
BHASWATI MUKHERJEE
Place: New Delhi AMIT CHAURASIA
Date: 19th May, 2023 Company Secretary ARUN KUMAR SHUKLA President & Director

INTEGRATED ANNUAL REPORT 2022-23 219

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF JK LAKSHMI CEMENT LIMITED consolidated nancial statements section of our report. We
are independent of the Group and an associate in accordance
Report on the Audit of the Consolidated Financial
with the Code of Ethics issued by the Institute of Chartered
Statements
Accountants of India (ICAI) together with the independence
Opinion requirements that are relevant to our audit of the consolidated
nancial statements under the provisions of the Act and the
We have audited the accompanying consolidated nancial Rules made thereunder, and we have fullled our other ethical
statements of JK Lakshmi Cement Limited (“the Company” responsibilities in accordance with these requirements and the
or “Holding Company”) and its subsidiaries/step down ICAI’s Code of Ethics. We believe that the audit evidence we
subsidiary (the Company and its subsidiaries including step have obtained, and the audit evidence obtained by the other
down subsidiary together referred to as “the Group”) and an auditors in terms of their reports referred to in ‘Other Matters’
associate, which comprise the consolidated balance sheet as paragraph below is sufcient and appropriate to provide a
at March 31, 2023, the consolidated statement of prot and basis for our audit opinion on the consolidated nancial
loss (including other comprehensive loss), the consolidated statements.
statement of changes in equity and the consolidated
statement of cash ows for the year then ended, and a Key Audit Matters
summary of the signicant accounting policies and other
Key audit matters are those matters that, in our professional
explanatory information (hereinafter referred to as the
judgment, were of most signicance in our audit of the
“consolidated nancial statements”).
consolidated nancial statements for the nancial year ended
In our opinion and to the best of our information and March 31, 2023. These matters were addressed in the context
according to the explanations given to us and based on the of our audit of the consolidated nancial statements as a
consideration of reports of the other auditors on separate whole, and in forming our opinion thereon, and we do not
nancial statements of the subsidiaries including step down provide a separate opinion on these matters. For each matter
subsidiary and an associate referred to in the other matters below, our description of how our audit addressed the matter
section below, the aforesaid consolidated nancial is provided in that context.
statements give the information required by the Companies
We have determined the matters described below to be the
Act, 2013 (the “Act”) in the manner so required and give a
key audit matters to be communicated in our report. We have
true and fair view in conformity with Indian Accounting
fullled the responsibilities described in the Auditor’s
Standards (‘Ind AS’) prescribed under Section 133 of the Act
responsibilities for the audit of the consolidated nancial
read with the Companies (Indian Accounting Standards)
statements section of our report, including in relation to these
Rules, 2015, as amended and other accounting principles
matters.
generally accepted in India, of the consolidated state of
affairs of the Group and an associate as at March 31, 2023, its Accordingly, our audit included the performance of
consolidated prot, consolidated comprehensive loss, procedures designed to respond to our assessment of the risks
consolidated changes in equity and its consolidated cash of material misstatement of the consolidated nancial
ows for the year ended on that date. statements. The results of audit procedures performed by us
and by other auditors of components not audited by us, as
Basis for Opinion
reported by them in their audit reports furnished to us by the
We conducted our audit of the consolidated nancial management, including those procedures performed to
statements in accordance with the Standards on Auditing address the matters below, provide the basis for our audit
(SAs) specied under Section 143(10) of the Act. Our opinion on the accompanying consolidated nancial
responsibilities under those Standards are further described statements.
in the Auditor’s Responsibilities for the Audit of the

220 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

Component Key Audit Matters How our audit addressed the key audit matter
1 Holding Revenue recognition, discounts, incentives, Our procedures included:
Company rebates.
and • Recognition of Revenue, measurement,
subsidiary presentation and disclosure as per For recognition of revenue:
Company Ind AS-115 “Revenue from Contracts with
(“Udaipur Customers”. • We performed walkthroughs to understand the
Cement (Refer Sub-note No 13 of Note 1 of key processes and identify key controls related
Works Accounting Policy). Ind AS 115 “Revenue from Contracts with
Limited” or • Revenue is measured net of discounts, Customers”
UCWL) incentives, rebates etc. earned by customers • We performed revenue cut-off testing, by
on the Company’s sales. reference to bill dates of sales recorded either
• Due to the Company’s and UCWL's side of the nancial year end had legally
presence across different marketing regions completed; and
within the country and the competitive • Selected a sample of sales contracts and read,
business environment, the assessment of the analysed and identied the distinct performance
various types of discounts, incentives and obligations in these contracts.
rebate schemes is material and considered
to be complex and judgmental. For Recognition of discount, incentive and rebates
• Therefore, there is a risk of revenue being • Assessing the appropriateness of the Company’s
misstated as a result of faulty estimations accounting policies relating to discounts,
over discounts, incentives, and rebates. incentives, rebates, etc by comparing with
• Given the judgement required to estimate applicable accounting standards.
the amount of provisions, this is a key • Assessing the design and testing the
audit matter. implementation and operating effectiveness of
Company’s internal controls over the approvals,
calculation, provision and disbursement of
discounts, incentives and rebates.
• Obtaining management’s calculations for
discounts, incentives and rebates accruals under
applicable schemes on a sample basis and
comparing the accruals made with the approved
schemes.
• Obtaining and inspecting, on a sample basis,
supporting documentation for discounts,
incentives and rebates recorded and disbursed
during the year as well as credit notes issued after
the year end date to determine whether these
were recorded appropriately.
• Comparing the historical trend of payments and
reversal of discounts, incentives and rebates to
provisions made to determine the
appropriateness of current year provisions.
• Examining manual journals posted to discounts,
rebates and incentives to identify unusual or
irregular items.
Based on our audit procedures we have concluded
that revenue, discount, incentive and rebates is
appropriately recognized, and that there was no
evidence of management bias.

2 Holding Evaluation of uncertain civil and indirect tax Our procedure included:
Company positions and recoverability of amount
deposited under protest as recoverable
The Company has material uncertain civil and Obtained details of completed tax assessments of
indirect tax positions including matters under earlier years and demands as on March 31, 2023
dispute which involves signicant judgment to from management. We have done assessment of the
determine the possible outcome of these managements underlying assumptions in estimating
disputes. the tax provision and the possible outcome of the
disputes.

INTEGRATED ANNUAL REPORT 2022-23 221

 Component Key Audit Matters How our audit addressed the key audit matter
The eventual outcome of these litigations is Based on management estimates and Independent
uncertain, and the positions taken by the legal opinion taken by Management of the
management are based on the application of Company, the liability against these matters are not
signicant judgement and estimation. The yet certain hence the same has been shown as
review of these matters requires application contingent liability in the current nancial
and interpretation of tax laws and reference statements.
to applicable judicial pronouncements.
Based on management judgement and the Our procedures on verication of the management’s
advice from legal and tax consultants and assessment of these matters included:
considering the merits of the case, the
Company has recognized provisions wherever • Understanding and evaluating process and
required and for the balance matters, where controls designed and implemented by the
the management expects favourable outcome, management including testing of relevant
these litigations have been disclosed as controls.
contingent liabilities in the nancial statements • Gaining an understanding of the civil and tax
unless the possibility of out ow of resources related litigations through discussions with the
is considered to be remote. management, including the signicant
developments, additions and settlements during
Given the uncertainty and application of the year and subsequent to 31 March 2023.
signicant judgment in this area in terms of • Inspecting demand notices received from various
the eventual outcome of litigations, we tax authorities and evaluating the Company’s
determined this to be a key audit matter. written responses to those matters.
• Evaluating the management’s assessment on the
likely outcome and potential magnitude by
involving experts on complex or signicant
matters as considered necessary; and
• Assessing the adequacy of the Company’s
disclosures.
We did not identify any signicant exceptions to the
management’s assessment of the ongoing civil,
income tax and indirect tax litigations as a result of
the above procedures.

Information Other than the Consolidated Financial give a true and fair view of the consolidated nancial
Statements and Auditor’s Report Thereon position, consolidated nancial performance, consolidated
The Holding Company’s Board of Directors is responsible for total comprehensive income/(loss), consolidated changes in
the other information. The other information comprises the equity and consolidated cash ows of the Group including an
information included in the Annual Report but does not associate in accordance with the Ind AS and other accounting
include the consolidated nancial statements and our principles generally accepted in India, including the Indian
auditor’s report thereon. Accounting Standards (Ind AS) specied under section 133 of
Our opinion on the consolidated nancial statements does the Act read with the Companies (Indian Accounting
not cover the other information and we do not express any Standards) Rules, 2015, as amended. The respective Board of
form of assurance conclusion thereon. Directors of the companies included in the Group and of an
associate are responsible for maintenance of the adequate
In connection with our audit of the consolidated nancial accounting records in accordance with the provisions of the
statements, our responsibility is to read the other information Act for safeguarding the assets of the Group including an
and, in doing so, consider whether the other information is associate and for preventing and detecting frauds and other
materially inconsistent with the consolidated nancial irregularities; selection and application of appropriate
statement or our knowledge obtained in the audit or accounting policies; making judgments and estimates that
otherwise appears to be materially misstated. If, based on the are reasonable and prudent; and design, implementation and
work we have performed and the reports of the other auditor maintenance of adequate internal nancial controls, that
as furnished to us, we conclude that there is a material were operating effectively for ensuring the accuracy and
misstatement of this other information, we are required to completeness of the accounting records, relevant to the
report that fact. We have nothing to report in this regard. preparation and presentation of the consolidated nancial
Responsibility of the Management and those charged statements that give a true and fair view and are free from
with Governance for the Consolidated Financial material misstatement, whether due to fraud or error which
Statements have been used for the purpose of preparation of the
The Holding Company’s Board of Directors is responsible for consolidated nancial statements by the Directors of the
the matters stated in section 134(5) of the Act with respect to Holding Company, as aforesaid.
preparation of these consolidated nancial statements that

222 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

In preparing the consolidated nancial statements, the statements or, if such disclosures are inadequate, to
respective Board of Directors of the companies included in modify our opinion. Our conclusions are based on the
the Group and an associate are responsible for assessing the audit evidence obtained up to the date of our auditor’s
ability of the Group and of an associate to continue as a going report. However, future events or conditions may cause
concern, disclosing, as applicable, matters related to going the Group and an associate to cease to continue as a
concern and using the going concern basis of accounting going concern.
unless management either intends to liquidate the Group and • Evaluate the overall presentation, structure and content
an associate or to cease operations, or has no realistic of the consolidated nancial statements, including the
alternative but to do so. disclosures, and whether the consolidated nancial
The respective Board of Directors of the companies included statements represent the underlying transactions and
in the Group and of an associate are also responsible for events in a manner that achieves fair presentation.
overseeing the nancial reporting process of the Group and • Obtain sufcient appropriate audit evidence regarding
of an associate. the nancial information of the entities or business
Auditor’s Responsibilities for the Audit of the activities within the Group and an associate to express
Consolidated Financial Statements an opinion on the consolidated nancial statements.
Our objectives are to obtain reasonable assurance about We are responsible for the direction, supervision and
whether the consolidated nancial statements as a whole are performance of the audit of the consolidated nancial
free from material misstatement, whether due to fraud or statements of such entities included in the consolidated
error, and to issue an auditor’s report that includes our nancial statements of which we are the independent
opinion. Reasonable assurance is a high level of assurance but auditors. For the other entities or business activities
is not a guarantee that an audit conducted in accordance included in the consolidated nancial statements,
with SAs will always detect a material misstatement when it which have been audited by the other auditors, such
exists. Misstatements can arise from fraud or error and are other auditors remain responsible for the direction,
considered material if, individually or in the aggregate, they supervision and performance of the audits carried out
could reasonably be expected to inuence the economic by them. We remain solely responsible for our audit
decisions of users taken on the basis of these consolidated opinion.
nancial statements. We communicate with those charged with governance
As part of an audit in accordance with SAs, we exercise regarding, among other matters, the planned scope and
professional judgment and maintain professional scepticism timing of the audit and signicant audit ndings, including
throughout the audit. We also: any signicant deciencies in internal control that we identify
• Identify and assess the risks of material misstatement of during our audit.
the consolidated nancial statements, whether due to We also provide those charged with governance with a
fraud or error, design and perform audit procedures statement that we have complied with relevant ethical
responsive to those risks, and obtain audit evidence that requirements regarding independence, and to communicate
is sufcient and appropriate to provide a basis for our with them all relationships and other matters that may
opinion. The risk of not detecting a material reasonably be thought to bear on our independence, and
misstatement resulting from fraud is higher than for where applicable, related safeguards.
one resulting from error, as fraud may involve collusion, From the matters communicated with those charged with
forgery, intentional omissions, misrepresentations, or governance, we determine those matters that were of most
the override of internal control. signicance in the audit of the consolidated nancial
• Obtain an understanding of internal nancial controls statements of the current period and are therefore the key
relevant to the audit in order to design audit procedures audit matters. We describe these matters in our auditor’s
that are appropriate in the circumstances. Under report unless law or regulation precludes public disclosure
section 143(3)(i) of the Act, we are also responsible for about the matter or when, in extremely rare circumstances,
expressing our opinion on whether the Company and its we determine that a matter should not be communicated in
subsidiaries including step down subsidiary and our report because the adverse consequences of doing so
associate which are companies incorporated in India, would reasonably be expected to outweigh the public
has adequate internal nancial controls system in place interest benets of such communication.
and the operating effectiveness of such controls. Other Matters
• Evaluate the appropriateness of accounting policies i. We did not audit the nancial statements/nancial
used and the reasonableness of accounting estimates information of three (3) subsidiaries/step down
and related disclosures made by management. subsidiary whose nancial statements/nancial
• Conclude on the appropriateness of management’s use information reect total assets of ` 1,931.65 crore as at
of the going concern basis of accounting and, based on March 31, 2023; as well as the total revenue of
the audit evidence obtained, whether a material ` 1,031.40 crore for the year ended March 31, 2023,
uncertainty exists related to events or conditions that and net cash outow amounting to ` 2.88 crore for the
may cast signicant doubt on the ability of the Group year ended March 31, 2023, as considered in these
and an associate to continue as a going concern. If we consolidated nancial statements. These nancial
conclude that a material uncertainty exists, we are statements and other nancial information have been
required to draw attention in our auditor’s report to the audited by other auditors whose audit reports for the
related disclosures in the consolidated nancial year ended March 31, 2023, have been furnished to us

INTEGRATED ANNUAL REPORT 2022-23 223

 by the management, and our opinion on the d) In our opinion, the aforesaid consolidated nancial
consolidated nancial statements, in so far as it relates statements comply with the Ind AS specied under
to the amount and disclosures included in respect of Section 133 of the Act read with relevant rules
these subsidiaries/step down subsidiary and our report made thereunder, as amended and other
in terms of sub-section (3) of Section 143 of the Act, accounting principles generally accepted in India;
insofar as it relates to the aforesaid subsidiaries/step e) On the basis of the written representations received
down subsidiary, is based solely on the report of the from the directors of the Company as on March 31,
other auditors. 2023, taken on record by the Board of Directors of
ii. The consolidated nancial statements also include the the Company and its subsidiaries/step down
Group’s share of prot including other comprehensive subsidiary and an associate incorporated in India
loss of Rs. 0.02 crore for the year ended March 31, and the reports of the statutory auditors of its
2023, in respect of an associate. This nancial subsidiary companies/step down subsidiary and an
statements and other nancial information have been associate incorporated in India, none of the
audited by other auditor whose audit report for the year directors of the Group and an associate is
ended March 31, 2023, have been furnished to us by disqualied as on March 31, 2023 from being
the management, and our opinion on the consolidated appointed as a director in terms of Section 164 (2)
nancial statements, in so far as it relates to the amount of the Act;
and disclosures included in respect of this associate and f) With respect to the adequacy of the internal
our report in terms of sub-section (3) of Section 143 of nancial controls over nancial reporting and the
the Act, insofar as it relates to the aforesaid associate, is operating effectiveness of such controls, refer to
based solely on the report of the other auditor. our separate Report in “Annexure 1” which is based
Our opinion on the consolidated nancial statements above on the auditor’s reports of the Group and an
and our report on the Other Legal and Regulatory associate incorporated in India.
Requirement below, is not modied in respect of above g) In our opinion, the managerial remuneration for the
maters with respect to our reliance on the work done and the year ended March 31, 2023, has been paid /
reports of the other auditors. provided by the Holding Company to their directors
Report on Other Legal and Regulatory Requirements in accordance with the provisions of Section 197
1. As required by the Companies (Auditors’ Report) Order, read with Schedule V to the Act;
2020 (the ‘Order’ or ‘CARO’), issued by the Central h) With respect to the other matters to be included in
Government of India in terms of sub-section (11) of the Auditor’s Report in accordance with Rule 11 of
section 143 of the Act, based on our audit and on the the Companies (Audit and Auditors) Rules, 2014, as
consideration of report of the other auditors on amended in our opinion and to the best of our
separate nancial statements and the other nancial information and according to the explanations
information of the subsidiaries/step down subsidiary given to us and based on the considerations of the
incorporated in India and an associate, there are no reports of the other auditors on separate nancial
matters which require reporting as specied in statements;
paragraph 3(xxi) of the Order. i. The consolidated nancial statement discloses the
2. As required by Section 143(3) of the Act, based on our impact of pending litigations as at March 31, 2023
audit and on the considerations of the reports of the on the consolidated nancial position of the Group
other auditors on separate nancial statements of the and an associate -Refer Note 53, 55 and 56 to the
subsidiaries including step down subsidiary and an consolidated nancial statements;
associate referred to in the Other Matters paragraph ii. The Group did not have any long term contracts
above we report, to the extent applicable, that: including derivative contracts for which there are
a) We have sought and obtained all the information any material foreseeable losses;
and explanations which to the best of our iii. There has been no delay in transferring amounts,
knowledge and belief were necessary for the required to be transferred, to the Investor
purposes of our audit of the aforesaid consolidated Education and Protection Fund by the Company
nancial statements; and its subsidiary companies including step down
b) In our opinion, proper books of account as required subsidiaries and an associate incorporated in India.
by law relating to preparation of the aforesaid iv. a) The respective managements of the Holding
consolidated nancial statements have been kept Company and its subsidiary company (including
so far as it appears from our examination of those step down subsidiaries) and associate Company
books; incorporated in India whose nancial
c) The consolidated balance sheet, the consolidated statements have been audited under the Act
statement of prot and loss (including other have represented to us and the other auditors of
comprehensive loss), consolidated statement of such subsidiaries (including step down
changes in equity and the consolidated statement subsidiary) and associate respectively that, to
of cash ows dealt with by this Report are in the best of their knowledge and belief , as
agreement with the relevant books of account disclosed in Note 69(iv) to the consolidated
maintained for the purpose of preparation of the nancial statements, no funds have been
consolidated nancial statements;

224 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

advanced or loaned or invested (either from or on behalf of the Funding Party (‘Ultimate
borrowed funds or securities premium or any Beneciaries’) or provide any guarantee, security
other sources or kind of funds) by the Holding or the like on behalf of the Ultimate
Company or its subsidiary companies (including Beneciaries; and
step down subsidiary) and its associate company c) Based on such audit procedures performed by us
to or in any person(s) or entity(ies), including and that performed by the auditors of the
foreign entities (‘the intermediaries’), with the subsidiaries (including step down subsidiary)
understanding, whether recorded in writing or and associate, as considered reasonable and
otherwise, that the intermediary shall, whether, appropriate in the circumstances, nothing has
directly or indirectly lend or invest in other come to our or other auditors’ notice that has
persons or entities identied in any manner caused us or the other auditors to believe that
whatsoever by or on behalf of the Holding the management representations under sub-
Company, or any such subsidiary companies clauses (a) and (b) above contain any material
(including step down subsidiaries) or its misstatement.
associate company (‘the Ultimate Beneciaries’) v. a) The nal dividend relating to nancial year
or provide any guarantee, security or the like on 2021-22 paid during the year ended March 31,
behalf the Ultimate Beneciaries; 2023, by the holding Company is in compliance
b) The respective managements of the Holding with section 123 of the Act.
Company and its subsidiary company (including b) As stated in Note 47 to the accompanying
step down subsidiaries) and its associated consolidated nancial statements, the Board of
Company incorporated in India whose nancial Directors of the Holding Company have
statements have been audited under the Act proposed nal dividend for the year ended
have represented to us and the other auditors of March 31, 2023, which is subject to the
such subsidiaries (including step down approval of the members at the ensuing Annual
subsidiary) and associate respectively that, to General Meeting. The dividend declared is in
the best of their knowledge and belief, as accordance with section 123 of the Act to the
disclosed in the Note 69(v) to the accompanying extent it applies to declaration of dividend.
consolidated nancial statements, no funds There is no dividend declared or paid during the
have been received by the Holding Company or year by the subsidiaries/ step down subsidiary
its subsidiary companies (including step down Companies and associate incorporated in India
subsidiary) or its associate Company from any
person(s) or entity(ies), including foreign entities vi. Proviso to Rule 3(1) of the Companies (Accounts)
(‘the Funding Parties’), with the understanding, Rules, 2014 for maintaining books of account using
whether recorded in writing or otherwise, that accounting software which has a feature of
the Holding Company, or any such subsidiary recording audit trail (edit log) facility is applicable to
companies (including step down subsidiary), or the Group and its associate with effect from April 1,
its associate company shall, whether directly or 2023, and accordingly, reporting under Rule 11(g)
indirectly, lend or invest in other persons or of Companies (Audit and Auditors) Rules, 2014 is
entities identied in any manner whatsoever by not applicable for the nancial year ended March
31, 2023.

For S. S. KOTHARI MEHTA & COMPANY

Chartered Accountants
ICAI Firm Registration No. 000756N

Place: New Delhi SUNIL WAHAL

Date: May 19, 2023 Partner
UDIN: 23087294BGTGTU5708 Membership No:- 087294

INTEGRATED ANNUAL REPORT 2022-23 225

Annexure 1 to the Independent Auditors’ Report to the and perform the audit to obtain reasonable assurance about
members of JK Lakshmi Cement Limited dated May 19, whether adequate internal nancial controls over nancial
2023, on its Consolidated Financial Statements reporting was established and maintained and if such
Report on the Internal Financial Controls under Clause (i) controls operated effectively in all material respects.
of Sub-section 3 of Section 143 of the Companies Act, Our audit involves performing procedures to obtain audit
2013 (“the Act”) as referred to in paragraph 2(f) of ‘Report evidence about the adequacy of the internal nancial controls
on Other Legal and Regulatory Requirements’ section. system over nancial reporting and their operating
In conjunction with our audit of the consolidated nancial effectiveness. Our audit of internal nancial controls over
statement of JK Lakshmi Cement Limited as of and for the nancial reporting included obtaining an understanding of
year ended March 31, 2023, we have audited the Internal internal nancial controls over nancial reporting, assessing
Financial Controls over Financial Reporting of JK Lakshmi the risk that a material weakness exists, and testing and
Cement Limited (hereinafter referred to as “the Company” or evaluating the design and operating effectiveness of internal
“Holding Company”) and its subsidiaries/stepdown control based on the assessed risk. The procedures selected
subsidiaries (the Holding Company and its subsidiaries depend on the auditor’s judgement, including the
together referred to as “the Group”) and an associate assessment of the risks of material misstatement of the
Company incorporated in India, for the year ended on that consolidated nancial statements, whether due to fraud or
date. error.

Management’s Responsibility for Internal Financial We believe that the audit evidence we have obtained and the
Controls audit evidence obtained by the other auditors in terms of their
reports referred to in the Other Matters paragraph below, is
The respective Board of Directors of the Holding Company, its
sufcient and appropriate to provide a basis for our audit
subsidiaries/step down subsidiary and an associate which are
opinion on the Group’s and an associate’s internal nancial
companies incorporated in India, are responsible for
controls system over nancial reporting.
establishing and maintaining internal nancial controls based
on the internal control over nancial reporting criteria Meaning of Internal Financial Controls Over Financial
established by the Holding Company, its subsidiaries/step Reporting
down subsidiary and an associate considering the essential A company's internal nancial control over nancial reporting
components of internal control stated in the Guidance Note is a process designed to provide reasonable assurance
on Audit of Internal Financial Controls Over Financial regarding the reliability of nancial reporting and the
Reporting issued by the Institute of Chartered Accountants of preparation of consolidated nancial statements for external
India ( ICAI). These responsibilities include the design, purposes in accordance with generally accepted accounting
implementation and maintenance of adequate internal principles. A company's internal nancial control over
nancial controls that were operating effectively for ensuring nancial reporting includes those policies and procedures
the orderly and efcient conduct of its business, including that:
adherence to the respective Company's policies, the a) pertain to the maintenance of records that, in
safeguarding of its assets, the prevention and detection of reasonable detail, accurately and fairly reect the
frauds and errors, the accuracy and completeness of the transactions and dispositions of the assets of the
accounting records, and the timely preparation of reliable company;
nancial information, as required under the Act.
b) provide reasonable assurance that transactions are
Auditors’ Responsibility recorded as necessary to permit preparation of
Our responsibility is to express an opinion on the Group and consolidated nancial statements in accordance
an associate’s internal nancial controls over nancial with generally accepted accounting principles,
reporting based on our audit. and that receipts and expenditures of the company
We conducted our audit in accordance with the Guidance are being made only in accordance with
Note on Audit of Internal Financial Controls Over Financial authorizations of management and directors of
Reporting (the “Guidance Note”) and the Standards on the company; and
Auditing, issued by ICAI and deemed to be prescribed under c) provide reasonable assurance regarding
section 143(10) of the Act, to the extent applicable to an prevention or timely detection of unauthorized
audit of internal nancial controls, and, both issued by the acquisition, use, or disposition of the company's
Institute of ICAI. Those Standards and the Guidance Note assets that could have a material effect on the
require that we comply with ethical requirements and plan consolidated nancial statements.

226 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

Inherent Limitations of Internal Financial Controls over 2023, based on the internal control over nancial reporting
Financial Reporting criteria established by the holding company including its
Because of the inherent limitations of internal nancial subsidiaries/step down subsidiary and an associate company
controls over nancial reporting, including the possibility of incorporated in India considering the essential components
collusion or improper management override of controls, of internal control stated in the Guidance Note on Audit of
material misstatements due to error or fraud may occur and Internal Financial Controls Over Financial Reporting issued by
not be detected. Also, projections of any evaluation of the the Institute of Chartered Accountants of India.
internal nancial controls over nancial reporting to future Other Matters
periods are subject to the risk that the internal nancial Our aforesaid reports under Section 143(3) (i) of the Act on
control over nancial reporting may become inadequate the adequacy and operating effectiveness of the internal
because of changes in conditions, or that the degree of nancial controls over nancial reporting of Holding
compliance with the policies or procedures may deteriorate. Company, in so far as it relates to separate nancial
Opinion statements of one associate company, two subsidiary
In our opinion, the Group and an associate company companies and one step down subsidiary which are
incorporated in India have maintained, in all material companies incorporated in India, is based on the
respects, an adequate internal nancial controls system over corresponding reports of the auditors of such companies.
nancial reporting and such internal nancial controls over Our audit report is not modied in respect of above matters.
nancial reporting were operating effectively as at March 31,

For S. S. KOTHARI MEHTA & COMPANY

Chartered Accountants
ICAI Firm Registration No. 000756N

Place: New Delhi SUNIL WAHAL

Date: May 19, 2023 Partner
UDIN: 23087294BGTGTU5708 Membership No:- 087294

INTEGRATED ANNUAL REPORT 2022-23 227

JK Lakshmi Cement Limited
Consolidated Balance Sheet as at 31st March 2023 ` In Crore (10 Million)
Note No. As at As at
31st March 2023 31st March 2022
ASSETS
(1) Non-current Assets
(a) Property, Plant and Equipment 2 3,333.85 3,343.32
(b) Capital work-in-progress 2A 890.21 251.18
(c) Investment Properties 3 115.52 115.68
(d) Goodwill 4 72.32 72.32
(e) Other Intangible Assets 4A 5.33 4.41
(f) Investment in an Associate 5 13.00 13.01
(g) Financial Assets
(i) Investments 5 2.10 2.10
(ii) Loans 6 17.32 19.71
(iii) Others 7 88.91 39.44
(h) Other Non-Current Assets 9 77.11 116.91
4,615.67 3,978.08
(2) Current Assets
(a) Inventories 10 841.60 581.00
(b) Financial Assets
(i) Investments 11 511.44 636.93
(ii) Trade Receivables 12 65.42 35.20
(iii) Cash and Cash Equivalents 13 142.94 74.03
(iv) Bank Balance other than (iii) above 14 196.02 498.91
(v) Loans 15 3.33 13.33
(vi) Others 16 22.50 16.46
(c) Current Tax Assets (Net) 17 6.52 1.75
(d) Other Current Assets 18 135.39 90.48
1,925.16 1,948.09
TOTAL ASSETS 6,540.83 5,926.17
EQUITY AND LIABILITIES
EQUITY
(a) Equity Share Capital 19 58.85 58.85
(b) Other Equity 2,745.01 2,446.30
2,803.86 2,505.15
Non Controlling Interest 19A 37.02 26.74
LIABILITIES
(1) Non-current Liabilities
(a) Financial Liabilities
(i) Borrowings 20 1,528.93 1,265.11
(ii) Lease Liabilities 20A 23.90 21.05
(iii) Other Financial Liabilities 21 263.04 235.52
(b) Provisions 22 19.35 13.51
(c) Deferred Tax Liabilities (Net) 8 132.66 53.05
(d) Other Non-Current Liabilities 23 91.52 94.89
2,059.40 1,683.13
(2) Current Liabilities
(a) Financial Liabilities
(i) Borrowings 24 317.38 591.42
(ii) Lease Liabilities 24A 9.52 8.96
(iii) Trade Payables 25
Micro and Small Enterprises 19.00 10.74
Others 567.01 355.25
(iv) Other Financial Liabilities 26 441.54 408.32
(b) Other Current Liabilities 27 280.24 319.80
(c) Provisions 28 5.86 15.78
(d) Current Tax Liabilities (Net) 29 - 0.88
1,640.55 1,711.15
TOTAL EQUITY AND LIABILITIES 6,540.83 5,926.17

Signicant Accounting Policies 1 For and on behalf of the Board of Directors

Notes on nancial statements 2-71 B.H. SINGHANIA Chairman
As per our report of even date VINITA SINGHANIA Vice Chairman & Managing Director
For S. S. KOTHARI MEHTA & COMPANY

}
Chartered Accountants Dr. R.P. SINGHANIA
Firm Registration No.: 000756N N.G. KHAITAN
SUNIL WAHAL SUDHIR A. BIDKAR RAVI JHUNJHUNWALA Directors
Partner Chief Financial Ofcer SADHU RAM BANSAL
Membership No.: 087294 BHASWATI MUKHERJEE
Place: New Delhi AMIT CHAURASIA
Date: 19th May, 2023 Company Secretary ARUN KUMAR SHUKLA President & Director

228 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Consolidated Statement of Prot and Loss for the year ended 31st March 2023 ` In Crore (10 Million)
Note No. For the year ended For the year ended
March 31 2023 March 31 2022
I. Revenue from Operations 30 6,451.50 5,419.89
II. Other Income 31 57.52 68.32
III. Total Income (I+II) 6,509.02 5,488.21
IV. Expenses :
Cost of Materials Consumed 32 934.65 824.23
Purchases of Stock-in-Trade 33 410.57 289.82
Change in inventories of nished goods,
work-in-progress and Stock-in-Trade 34 (40.85) (44.63)
Employee Benets Expense 35 387.72 362.82
Power & Fuel 36 1,893.46 1,289.31
Transport Clearing & Forwarding Charges 37 1,258.21 1,099.41
Finance Costs 38 133.40 142.19
Depreciation and Amortization Expense (Net) 39 228.33 223.47
Other Expenses 40 769.03 648.22
Total Expenses (IV) 5,974.52 4,834.84
V. Prot before Exceptional Items and Tax (III-IV) 534.50 653.37
VI. Share in Prot / (Loss) of Associates (Net of Tax) (0.02) (0.04)
VII. Exceptional Items - (Loss) 68 - (26.99)
VIII. Prot before Tax (V+VI-VII) 534.48 626.34
IX. Tax Expense 46
(1) Current Tax 147.86 144.30
(2) Deferred Tax 16.88 (25.07)
(3) Tax Adjustments for Earlier Years 0.63 29.53
Total Tax Expense (IX) 165.37 148.76
X. Prot for the Year 369.11 477.58
XI. Prot for the Year attributable to
Owners of the Parent 358.62 463.56
Non Controlling Interest 10.49 14.02
369.11 477.58
XII. Other Comprehensive Income
Items that will not be reclassied to Prot or Loss in subsequent periods
(1) Re-measurement (losses)/Gain on dened benet plans (1.85) (13.63)
(2) Income tax effect on above 0.55 4.74
Total Other Comprehensive Income (XII) (1.30) (8.89)
XIII. Total Comprehensive Income For The Year (X + XII) 367.81 468.69
XIV. Total Comprehensive Income For The Year attributable to
Owners of the Parent 62h 357.53 454.75
Non Controlling Interest 10.28 13.94
367.81 468.69
XV. Earnings per share: 40A
Basic Earnings per equity share (`): 30.48 39.39
Diluted Earnings per equity share (`): 30.48 39.39

Signicant Accounting Policies 1 For and on behalf of the Board of Directors

Notes on nancial statements 2-71 B.H. SINGHANIA Chairman
As per our report of even date VINITA SINGHANIA Vice Chairman & Managing Director
For S. S. KOTHARI MEHTA & COMPANY

}
Chartered Accountants Dr. R.P. SINGHANIA
Firm Registration No.: 000756N N.G. KHAITAN
SUNIL WAHAL SUDHIR A. BIDKAR RAVI JHUNJHUNWALA Directors
Partner Chief Financial Ofcer SADHU RAM BANSAL
Membership No.: 087294 BHASWATI MUKHERJEE
Place: New Delhi AMIT CHAURASIA
Date: 19th May, 2023 Company Secretary ARUN KUMAR SHUKLA President & Director

INTEGRATED ANNUAL REPORT 2022-23 229

JK Lakshmi Cement Limited
Consolidated Statement of Changes in Equity
For the year ended 31st March 2023
A. Equity Share Capital ` In Crore (10 Million)
st st
Particulars As at 1 Change during As at 31 Change during As at 31st
April 2021 the year March 2022 the year March 2023
Equity Shares (with equal rights) 117,670,066
(Previous year 117,670,066) of ` 5 each 58.84 - 58.84 - 58.84
fully paid up
Add: Forfeited Shares 0.01 - 0.01 - 0.01
Total 58.85 - 58.85 - 58.85

B. Other Equity ` In Crore (10 Million)

Reserves and Surplus Items of Other
Comprehensive
Income, that will
Capital Securities Debenture General Retained not be reclassied
Particulars Redemption Premium Redemption Reserve Earnings to Statement of Total
Reserve Reserve Prot and Loss
Re-measurement
of Net Dened
Benet Plans

Balance as at 1st April'2021 25.64 88.65 37.50 950.74 934.15 (1.00) 2,035.68
Prot for the Year - - - - 463.56 - 463.56
Dividend payment - - - - (44.13) - (44.13)
Transfer from Debenture
Redemption Reserve - - (37.50) - 37.50 - -
Other Comprehensive Income/(Loss) - - - - - (8.81) (8.81)
Balance as at 31st March'2022 25.64 88.65 - 950.74 1,391.08 (9.81) 2,446.30
Prot for the Year - - - - 358.62 - 358.62
Dividend payment - - - - (58.84) - (58.84)
Other Comprehensive Income/(Loss) - - - - - (1.07) (1.07)
Balance as at 31st March'2023 25.64 88.65 - 950.74 1,690.86 (10.88) 2,745.01

Signicant Accounting Policies 1 For and on behalf of the Board of Directors

Notes on nancial statements 2-71 B.H. SINGHANIA Chairman
As per our report of even date VINITA SINGHANIA Vice Chairman & Managing Director
For S. S. KOTHARI MEHTA & COMPANY

}
Chartered Accountants Dr. R.P. SINGHANIA
Firm Registration No.: 000756N N.G. KHAITAN
SUNIL WAHAL SUDHIR A. BIDKAR RAVI JHUNJHUNWALA Directors
Partner Chief Financial Ofcer SADHU RAM BANSAL
Membership No.: 087294 BHASWATI MUKHERJEE
Place: New Delhi AMIT CHAURASIA
Date: 19th May, 2023 Company Secretary ARUN KUMAR SHUKLA President & Director

230 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Note-1 Group Overview, Basis of Preparation & Signicant Accounting Policies

1.1 (a) The Group Overview:

JK Lakshmi Cement Limited (JKLCL) and its subsidiaries and associate (hereinafter “The Group”), majorly
manufactures and markets Cement, Clinker, RMC and AAC Blocks. The manufacturing facilities of the Group are
situated in India.
These Consolidated nancial statements were approved and adopted by board of directors of the Company in their
meeting held on May 19, 2023.
(b) Statement of Compliance:
The Consolidated Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind
AS) as prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting
Standards) Rules, 2015 and Companies (Indian Accounting Standards) (Amendment) Rules, 2016 and relevant
provisions of the Companies Act, 2013. The Financial Statements comply with IND AS notied by Ministry of
Company Affairs(“MCA”). Company has consistently applied the accounting policies used in the preparation for all
periods presented.
(c ) Basis of preparation of Consolidated Financial Statements:
The Consolidated Financial Statements comprise the Financial Statements of the Company and its Subsidiaries and
Associate as at March 31, 2023. Control is achieved when the Group is exposed, or has rights, to variable returns
from its involvement with the investee and has the ability to affect those returns through its power over the
investee. Specically, the Group controls an investee if and only if the Group has:
- Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the
investee)
- Exposure, or rights, to variable returns from its involvement with the investee, and
- The ability to use its power over the investee to affect its returns
Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and
when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all
relevant facts and circumstances in assessing whether it has power over an investee, including:
- The contractual arrangement with the other vote holders of the investee
- Rights arising from other contractual arrangements
- The Group’s voting rights and potential voting rights
- The size of the Group’s holding of voting rights relative to the size and dispersion of the holdings of the other
voting rights holders
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control. Consolidation of a Subsidiary begins when the Group
obtains control over the Subsidiary and ceases when the Group loses control of the Subsidiary. Assets, liabilities,
income and expenses of a Subsidiary acquired or disposed of during the year are included in the
Consolidated Financial Statements from the date the Group gains control until the date the Group ceases to control
the Subsidiary.
(d) Basis of Preparation
The signicant accounting policies used in preparing the Financial Statements are set out in Note no. III of the Notes
to the Standalone Financial Statements. Company’s Financial Statements are presented in Indian Rupees (`), which
is also its functional currency.
(e ) Basis of Measurement
The Financial Statements have been prepared on accrual basis and under the historical cost convention except for
the items that have been measured at fair value as required by relevant IND AS.
(f) Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date (As per Ind AS 113) and other Fair Value measurement have
been done as per its respective standards.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non- nancial asset takes in to account a market participant’s ability to generate
economic benets by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.

INTEGRATED ANNUAL REPORT 2022-23 231

 For the purpose of Fair Value disclosures, the Company has determined classes of Assets and Liabilities on the basis of
the nature, characteristics and risks of the Asset or Liability and the level of the Fair Value Hierarchy in which they fall.
(g) Current & Non-Current Classications
The Group presents assets and liabilities in the balance sheet based on current/ non-current classication.
An asset is treated as current when it is expected to be realised or intended to be sold or consumed in normal
operating cycle, held primarily for the purpose of trading, expected to be realised within twelve months after the
reporting period, or Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period.
A liability is current when It is expected to be settled in normal operating cycle, It is held primarily for the purpose of
trading, It is due to be settled within twelve months after the reporting period, or there is no unconditional right to
defer the settlement of the liability for at least twelve months after the reporting period.
The terms of the liability that could, at the option of the counterparty, result in its settlement by the issue of equity
instruments do not affect its classication.
All other assets/ liabilities are classied as non-current
Deferred tax assets and liabilities are classied as non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and
cash equivalents. The company has identied twelve months as its operating cycle.
(h) Signicant Accounting Judgements, Estimates and Assumptions
The preparation of these Financial Statements requires management judgements, estimates and assumptions that
affect the application of Accounting Policies, the Accounting disclosures made and the reports amounts of Assets,
Liabilities, Income and Expenses. The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to Accounting estimates are recognised in the period in which the estimates are revised and any future
periods effected pursuant to such revision.
1.2 a) The Consolidated Financial Statements comprises of audited Financial Statements of JK Lakshmi Cement Limited
(Parent Company) and the followings as on 31/03/2023 and 31/03/2022.
Name Proportion of Financial For the period
ownership statements
interest as on
Subsidiaries and Indirect Subsidiary
Hansdeep Industries and Trading Company Ltd.(HITCL) 100% 31/03/2023 12 Months
Udaipur Cement Works Ltd.(UCWL) 72.54% 31/03/2023 12 Months
Ram Kanta Properties Pvt. Ltd. 100% 31/03/2023 12 Months
Associates:
Dwarkesh Energy Ltd.(DEL) 35% 31/03/2023 12 Months

b) The Consolidated Financial Statements have been prepared based on a line-by-line consolidation using uniform
accounting policies for like transactions and other events in similar circumstances. The effects of intra group
transactions are eliminated in consolidation in accordance with IND AS 110 - ‘Consolidated Financial Statement’
notied under section 133 of the Act, read with Companies (Indian Accounting Standards) Rules,2015 as amended
time to time.
c) Non-controlling Interest represents the equity in a subsidiary not attributable, directly or indirectly to a Parent. Non-
controlling interest in the net assets of the subsidiaries being consolidated is identied and presented in the
consolidated Balance Sheet separately from the equity attributable to the Parent’s shareholders and liabilities. Prot
or loss and each component of other comprehensive income are attributed to Parent and to non-controlling
interest. Impact of any signicant and immaterial Non-controlling interest is not considered.
d) In case of associates, where Company holds directly or indirectly through subsidiaries 20% or more equity or / and
exercises signicant inuence, investments are accounted for by using equity method in accordance with IND AS 28
– Investment in Associates and Joint Ventures.
e) Post-acquisition, the Company accounts for its share in the change in net assets of the associate (after eliminating
unrealized prots and losses resulting from transactions between the Company and its Associate to the extent of its
share) through its Statement of Prot and Loss in respect of the change attributable to the associates’ Statement of
Prot and Loss and through its reserves for the balance.
f) The difference between the cost of investment and share of net assets at the time of acquisition of shares in the
subsidiaries and associates is identied in the nancial statements as Goodwill or Capital Reserve as the case
may be.
(g) Business Combination:-Business Combinations are accounted for using the acquisition method. The cost of
acquisition is measured at the aggregate of the fair values at the date of exchange of assets given, liabilities incurred

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 Integrated Report Statutory Report Financial Statement

or assumed and equity instruments issued by the Company in exchange for control of the acquire. The acquiree’s
identiable assets, liabilities and contingent liabilities that meet the recognition criteria are stated at their fair values
at the acquisition date except certain assets and liabilities required to be measured as per the applicable standard.
The interest of non-controlling shareholders in the acquire is initially measured at the non-controlling shareholder’s
proportionate share of the acquiree’s identiable net assets.
1.3 Signicant Accounting Policies
(1) Property, Plant and Equipment
Property, Plant and Equipment (PPE) are stated at cost net of tax/duty credit availed, less accumulated depreciation
and accumulated losses, if any. Cost includes expenses directly attributable to bringing the Asset to their location
and conditions necessary for it to be capable of operating in the manner intended by the management. .
Subsequent cost are included in the asset’s carrying amount or recognized as separate asset, as appropriate, only
when it is probable that is future economic benets associated with the item will ow to the Group and the cost of
the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is
derecognized when replaced. All other repairs and maintenance are charged to prot or loss during the reporting
period in which they are incurred.
Assets in the course of construction are capitalized in capital work in progress account. At the point when an asset
is capable of operating in the manner intended by the management, the cost of erection/ construction is transferred
to the appropriate category of property, plant and equipment cost (net of income and including pre-operative cost /
expenses) associated with the commissioning of an asset are capitalized until the period of commissioning has been
completed and the asset is ready of its intended use.
Property, Plant and Equipment are eliminated from Financial Statement, either on disposal or when retired from
active use. Losses arising in the case of retirement of Property, plant and equipment and gains or losses arising from
disposal of property, plant and equipment are recognized in Statement of Prot and Loss in the year of occurrence.
Depreciation methods, estimated useful lives and residual value.
Deprecation is calculated using the Straight Line Method (SLM) to allocate their cost, net of their residual values,
over their estimated useful lives as specied in Schedule II to Companies Act, 2013, except for Captive Power Plants
and Split Grinding Units, Vehicles & Locomotive, ofce Equipments and Furniture Fixtures which is provided on
Written Down Value Method (WDV) as per the said schedule. Depreciation on RMC is provided considering
estimated useful life of 6 years on SLM basis.
The assets residual values, useful lives and methods of depreciation are reviewed at each nancial year end and
adjusted prospectively, if appropriate.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in
Statement of Prot or Loss.
Depreciation on impaired assets is provided on the basis of their residual useful life.
(2) Investment Properties
Property that is held for long-term rentals yields or for capital appreciation or both, and that is not occupied by the
Group, is classied as investment property. Investment property is measured initially at its cost, including related
transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalized to the asset’s
carrying amount only when it is probable that future economic benets associated with the expenditure will ow to
the Group and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed
when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is
derecognized.
Investment properties are depreciated using the Straight Line Method (SLM) over their estimated useful lives. The
useful live has been determined based on technical evaluation performed by the management’s expert.
The Residual Life, useful lives and depreciation method of investment properties are reviewed, and adjusted on
Prospective basis as appropriate, at each nancial year end. The effects of any revision are included in the Statement
of Prot and Loss when the changes arise.
(3) Intangible Assets
Intangibles Assets are recognized if the future economic benets attributable to the Assets are expected to ow to
the Group and the cost of the asset can be measured reliably.
Internally generated intangibles, excluding capitalized developments costs, are not capitalized and the related
expenditure is reected in Statement of Prot and Loss in the period in which the expenditure is incurred.
The useful lives of Intangibles Assets are assessed as either nite or indenite. The amortization period and the
amortization method for an Intangible Asset with a nite useful life are reviewed atleast at the end of each
reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic
benets embodied in the asset are considered to modify the amortization period or method, as appropriate, and
are treated as changes in accounting estimates.
Intangible Asset with nite lives are amortized over the useful economic life and assessed for impairment whenever
there is an indication that the Intangible Asset may be impaired.

INTEGRATED ANNUAL REPORT 2022-23 233

 Intangible Assets are amortized as follows:
• Computer Software & Mining Rights : Over a period of ve years
Intangibles Assets with indenite useful lives, if any are not amortised, but are tested for impairment annually ,
either individually or at the cash-generating unit level. The assessment of indenite useful life is reviewed annually
to determine whether indenite life continues to be supportable. If not, the change in useful life from indenite to
nite life is made on prospective basis.
Gain or losses arising from derecognition of an Intangible Asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognized in the statement of prot and loss when
the asset is derecognized.
(4) Research and Development Cost
Revenue Expenditure on Research and Development is charged to Statement of Prot and Loss and Capital
Expenditure is added to Property, plant and equipment.
However, Development expenditure on new product is capitalized as intangible asset.
(5) Inventories
Inventories are carried in the balance sheet as follows :
a) Raw Materials, Packing Materials, : At cost, on Weighted Average Basis.
Construction Materials, Stores & Spares.
b) Work-In Progress – Manufacturing : At Lower of Cost of Material, plus appropriate Production
Overheads and Net Realizable Value.
c) Finished Goods – Manufacturing : At Lower of Cost of Materials plus Appropriate Production
Overheads and Net Realizable Value.
d) Finished Goods – Trading : At Lower of Cost, on Weighted Average Basis and Net
Realizable Value.
The cost of inventories have been computed to include all cost of purchases, cost of conversion and other related
costs incurred in bringing the inventories to their present location and condition. Slow and non-moving material,
obsolete, defective inventories are duly provided for and valued at net realizable value. Goods and materials in
transit are valued at actual cost incurred upto the date of Balance Sheet. Materials and supplies held for use in the
production of inventories are not written down if the nished products in which they will be used are expected to be
sold at or above cost.
Net Realisable Value is the estimated Selling Price in the ordinary course of business, less estimated costs of
completion and estimated costs necessary to make the sale.
(6) Cash and Cash Equivalents
Cash and Cash Equivalents includes cash on hand, deposits held at call with Banks / Financial Institutions, other
short-term, highly liquid investments which are subject to an insignicant risk of changes in value.
(7) Impairment of Assets
The carrying amounts of Property, Plant & Equipment, Intangible Assets and Investment Properties are reviewed at
each Balance Sheet date to assess impairment, if any, based on internal / external factors. An impairment loss is
recognised, as an expense in the Statement of Prot & Loss, wherever the carrying amount of the Asset or Cash
Generating Unit (CGU) exceeds its recoverable amount. The impairment loss recognised in prior accounting period
is reversed, if there has been an improvement in recoverable amount in subsequent years. Recoverable amount is
determined :-
• In the case of an Individual Asset, at the higher of the Fair Value less cost to sell and the value in use; and
• In the case of cash generating unit (a group of assets that generates identied, independent cash ows) at the
higher of cash generating unit’s fair value less cost to sell and the value in use.
In assessing value in use, the estimated future cash ows are discounted to their present value using a pre-tax
discount rate that reects current market assessments of the time value of money and the risks specic to the asset.
In determining fair value less costs of disposal, recent market transactions are taken into account. If no such
transactions can be identied, and appropriate valuation model is used.
These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or
other available fair value indicators.
(8) Foreign Currency Translations & Transitions
(i) Functional and Presentation Currency
The Group’s nancial statements are presented in INR, which is also the Group’s Functional and Presentation
Currency.
(ii) Transaction and Balance
Foreign currency transactions are recorded at exchange rates prevailing on the date of transaction. Monetary

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 Integrated Report Statutory Report Financial Statement

Assets and liabilities related to foreign currency transactions are stated at exchange rate prevailing at the end of
the year and exchange difference in respect thereof is recognised to Statement of Prot & Loss.
(9) Financial Instruments
A Financial Instrument is any contract that gives rise to a nancial asset of one entity and a nancial liability or equity
instrument of another entity.
1. Financial Assets
1.1 Denition
Financial Assets include Cash and Cash Equivalents, Trade and Other Receivables, Investments in Securities and
other eligible Current and Non-Current Assets.
At initial recognition, all nancial assets are measured at fair value. The classication is reviewed at the end of
each reporting period.
(i) Financial Assets at Amortised Cost
At the date of initial recognition, are held to collect contractual cash ows of principal and interest on principal
amount outstanding on specied dates. These nancial assets are intended to be held until maturity.
Therefore, they are subsequently measured at amortized cost by applying the Effective Interest Rate (EIR)
method to the gross carrying amount of the nancial asset. The EIR amortization is included as interest income
in the statement of prot or loss. The losses arising from impairment are recognized in the Statement of Prot
or Loss.
(ii) Financial Assets at Fair value through Other Comprehensive Income
At the date of initial recognition, are held to collect contractual cash ows of principal and interest on principal
amount outstanding on specied dates, as well as held for selling. Therefore, they are subsequently measured
at each reporting date at fair value, with all fair value movements recognized in Other Comprehensive Income
(OCI). Interest income calculated using the effective interest rate (EIR) method, impairment gain or loss and
foreign exchange gain or loss are recognized in the Statement of Prot and Loss. On derecognition of the asset,
cumulative gain or loss previously recognized in Other Comprehensive Income is reclassied from the OCI to
Statement of Prot and Loss.
(iii) Financial Assets at Fair value through Prot or Loss (FVTPL)
At the date of initial recognition, Financial assets are held for trading, or which are measured neither at
Amortized Cost nor at Fair Value through OCI. Therefore, they are subsequently measured at each reporting
date at fair value, with all fair value movements recognized in the Statement of Prot and Loss.
1.2 Trade Receivables
A Receivable is classied as a ‘trade receivable’ if it is in respect to the amount due from customers on account
of goods sold or services rendered in the ordinary course of business Trade Receivables are initially recognized
at their Transaction Value as reduced by provision for impairment, if any. For some trade receivables the
Company may obtain security in the form of guarantee, security deposit or letter of credit which can be called
upon if the counterparty is in default under the terms of the agreement. For trade receivables and contract
assets, the Company applies a simplied approach in calculating ECLs. Therefore, the Company does not track
changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date.
1.3 Investment in Equity Shares
Investment in Equity Securities are initially measured at cost. Any subsequent fair value gain or loss is
recognized through Statement of Prot and Loss if such investments in Equity Securities are held for trading
purposes. The fair value gains or losses of all other Equity Securities are recognized in Other Comprehensive
Income.
1.4 Derecognition of Financial Assets
A Financial Asset is primarily derecognized when:
• The right to receive cash ows from asset has expired, or
• The Group has transferred its right to receive cash ows from the asset or has assumed an obligation to pay
the received cash ows in full without material delay to a third party under a “pass-through” arrangement
and either:
a) The Group has transferred substantially all the risks and rewards of the asset, or
b) The Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
When the Group has transferred its right to receive cash ows from an asset or has entered into a pass through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has
neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of
the asset, the Group continues to recognize the transferred asset to the extent of the Group’s continuing
involvement. In that case, the Group also recognizes an associated liability. The transferred asset and the
associated liability are measured on a basis that reects the rights and obligations that the Group has retained.

INTEGRATED ANNUAL REPORT 2022-23 235

 Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower
of the original carrying amount of the asset and the maximum amount of consideration that the Group could
be required to repay.
2. Financial Liabilities
2.1 Denition
Financial Liabilities include Long-term and Short-term Loans and Borrowings, Trade and Other payables and
Other eligible Current and Non-current Liabilities.
(a) Initial Recognition and Measurement
All nancial liabilities are recognized initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
The Group’s Financial Liabilities include trade and other payables, loans and borrowings including bank
overdrafts, and derivative nancial instruments.
(b) Subsequent Measurement
The measurement of Financial Liabilities depends on their classication, as described below :
i) Financial Liabilities at Fair Value through Prot or Loss
Financial Liabilities at fair value through prot or loss include nancial liabilities held for trading. The
Group has not designated any nancial liabilities upon initial measurement recognition at fair value
through prot or loss. Financial liabilities at fair value through prot or loss are at each reporting date at
fair value with all the changes recognized in the Statement of Prot and Loss.
ii) Financial Liabilities measured at Amortized Cost
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized
cost using the effective interest rate method (‘’EIR’’) except for those designated in an effective hedging
relationship. The carrying value of borrowings that are designated as hedged items in fair value hedges
that would otherwise be carried at amortized cost are adjusted to record changes in fair values
attributable to the risks that are hedged in effective hedging relationship.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fee or
costs that are an integral part of the EIR. The EIR amortization is included in nance costs in the Statement
of Prot and Loss.
2.2 Loans and Borrowings
After initial recognition, interest-bearing borrowings are subsequently measured at amortized cost using the
effective interest rate method. Any difference between the proceeds (net of transaction costs) and the
redemption amount is recognized in Statement of Prot and Loss over the period of the borrowings using the
effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs
of the loan to the extent that it is probable that some or all of the facility will be drawn down.
Borrowings are classied as current liabilities unless the Group has an unconditional right to defer settlement
of the liability for at least twelve months after the reporting period.
2.3 Financial Guarantee Contracts
Financial guarantee contracts issued by the Group are those contracts that require a payment to be made to
reimburse the holder for a loss it incurs because the specied debtor fails to make a payment when due in
accordance with the terms of a debt instrument. Financial guarantee contracts are recognized initially as a
liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as
per impairment requirements of Ind AS 109 and the amount initially recognized less cumulative amortization.
2.4 Trade and Other Payables
A payable is classied as trade payable if it is in respect of the amount due on account of goods purchased or
services received in the normal course of business. These amounts represent liabilities for goods and services
provided to the Group prior to the end of nancial year which are unpaid. Trade and other payables are
presented as current liabilities unless payment is not due within 12 months after the reporting period. They are
recognized initially at their fair value and subsequently measured at amortized cost using the effective interest
method.
2.5 De-recognition of Financial Liability
A Financial Liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
The difference between the carrying amount of a nancial liability that has been extinguished or transferred to
another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is
recognized in prot or loss as other income or nance costs.
3. Offsetting of Financial Instruments
Financial Assets and Financial Liabilities are offset and the net amount is reported in the balance sheet if there is

236 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net
basis, to realize the assets and settle the liabilities simultaneously.
4. Derivative Financial Instruments
The Group uses derivative nancial instruments, such as forward contracts and interest rate swaps to hedge its
foreign currency risks and interest rate risks. Derivative nancial instruments are initially recognized at fair value
on the date a derivative contract is entered into and are subsequently re-measured at their fair value at the end
of each period. The method of recognizing the resulting gain or loss depends on whether the derivative is
designated as a hedging instrument, and if so, on the nature of the item being hedged. Any gains or losses
arising from changes in the fair value of derivatives are taken directly to prot or loss.
(10) Grants
Grants from the Government are recognised when there is reasonable assurance that all underlying conditions will
be complied with and that the grant will be received.
When loans or similar assistance are provided by Government or related institutions, with an interest rate below the
current applicable market rate, the effect of this favorable interest is regarded as a government grant. The loan or
assistance is initially recognised and measured at fair value and the government grant is measured as the difference
between the initial carrying value of the loan and the proceeds received. That grant is recognised in the Statement
of Prot and Loss under ‘other operating revenue’. The loan is subsequently measured as per the accounting policy
applicable to nancial liabilities.
Government grants related to assets, including non-monetary grants at fair value, are presented in the balance
sheet by recording the grant as deferred income which is released to the Statement of Prot and Loss on a
systematic basis over the useful life of the asset.
Grants related to income are recognised as income on a systematic basis in the Statement of Prot and Loss over the
periods necessary to match them with the related costs, which they are intended to compensate and are presented
as ‘other operating revenues’.
(11) Equity Share Capital
Ordinary Shares are classied as Equity. Incremental costs net of taxes directly attributable to the issue of new equity
shares are reduced from Retained Earnings, net of taxes.
(12) Provisions, Contingent Liabilities, Contingent Assets and Commitments
i) General
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outow of resources embodying economic benets will be required to settle the
obligation and a reliable estimate of the amount of the obligation. When the Group expects some or all of a
provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a
separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is
presented in the statement of prot and loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre tax rate that
reects, when appropriate, the risks specic to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as a nance cost.
ii) Contingent Liability
Contingent Liability is disclosed in the case of:
• A present obligation arising from past events, when it is not probable that an outow of resources will be
required to settle the obligation.
• A present obligation arising from past events, when no reliable estimate is possible:
• A possible obligation arising from past events, unless the probability of outow of resources is remote.
Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.
iii) Other Litigation Claims
Provision for litigation related obligation represents liabilities that are expected to materialize in respect of
matters in appeal.
iv) Onerous Contracts
A provision for onerous contracts is measured at the present value of the lower of expected costs of terminating
the contract and the expected cost of continuing with the contract. Before a provision is established, the Group
recognizes impairment on the Assets with the contract.
v) Contingent Asset
A Contingent Asset is a possible asset that arises from past events and whose existence will be conrmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the entity. Contingent Assets are disclosed in the Financial Statements by way of notes to accounts when an
inow of economic benets is probable.

INTEGRATED ANNUAL REPORT 2022-23 237

 (13) Revenue Recognition
Revenue towards satisfaction of a performance obligation is measured at the amount of Transaction price (Net of
variable consideration) allocated to that performance obligation. The transaction price of goods sold & services
rendered is net of variable consideration on account of various discounts & schemes offered by the Company as part
of the contract.
i) Sale of Goods
Revenue is recognized upon transfer of control of promised goods or services to customers at transaction price
(net of taxes and duties).
Taxes collected on behalf of the government are excluded from revenue. Revenue is recognised to the extent it
is probable that the economic benets will ow to the Company and the revenue and costs, if applicable, can
be measured reliably.
ii) Non-Cash Incentives
The Group provides Non-Cash Incentives at Fair Value to customers. These benets are passed on to customers
on satisfaction of various conditions of various sales schemes. Consideration received is allocated between the
products sold and non-cash incentives to be issued to customers. Fair value of the non-cash incentive is
determined by applying principle of Ind AS 113 i.e. at market rate. A contract liability for the non-cash incentive
is recognised at the time of sale.
iii) Power Distribution
Revenue from Power Distribution business is accounted on the basis of billings to the customers and includes
unbilled revenues accrued up to the end of accounting year. Customers are billed as per the tariff rates issued
by Electricity Regulatory Commission.
iv) Dividend Income
The Group recognises as income, when the Group’s right to receive dividend is established, which becomes
certain after shareholders’ approval.
v) Lease Income
Lease Agreements where the risk and rewards incidental to the ownership of an asset substantially vest with
the lessor are recognized as operating leases. Leases rentals are recognized on straight –line basis as per the
terms of the agreements in the Statement of Prot and Loss.
vi) Interest Income
For all Financial Instruments measured at amortized cost, interest income is recorded using Effective Interest
Rate (EIR), which is the rate that exactly discounts the estimated future cash payments or receipts through the
expected life of the Financial Instrument or a shorter period, where appropriate, to the net carrying amount of
the Financial Asset. Interest income is included in other income in statement of prot and loss.
vii) Renewable Energy Certicate
Renewable Energy Certicate (REC) benets are recognized in Statement of Prot & Loss on Sale of REC.
Income from Sale of RECs is recognized on the delivery to the Customers’ Account.
viii) Export Benet
Export incentives, Duty Drawbacks and other benets are recognized in the Statement of Prot and Loss on
accrual basis.
(14) Employees Benets
i) Dened Contribution Plans
Contributions to the employees’ regional provident fund, superannuation fund, Employees Pension Scheme and
Employees’ State Insurance are recognized as dened contribution plan and charged as expenses during the
period in which the employees perform the services. The Group has no obligation, other than the contribution
payable to the respective funds. The Group recognises contribution payable to these schemes as an expense, when
an employee renders the related service. If the contribution payable to the scheme for service received before the
balance sheet date exceeds the contribution already paid, the decit payable to the scheme is recognised as a
liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due
for services received before the balance sheet date, then excess is recognised as an asset to the extent that the pre-
payment will lead to, for example, a reduction in future payment or a cash refund.
ii) Dened Benet Plans
Retirement benets in the form of Gratuity and Leave Encashment are considered as dened benet plan and
determined on actuarial valuation using the Projected Unit Credit Method at the balance sheet date. Actuarial
Gains or Losses through re-measurement of the net obligation of a dened benet liability or asset is
recognized in Other Comprehensive Income. Such re-measurements are not reclassied to Statement of Prot
and Loss in subsequent periods.
The Provident Fund Contribution other than contribution to Employees’ Regional Provident Fund, is made to

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 Integrated Report Statutory Report Financial Statement

trust administered by the trustees. The interest rate to the members of the trust shall not be lower than the
statutory rate declared by the Central Government under Employees’ Provident Fund and Miscellaneous
Provision Act, 1952. The Employer shall make good deciency, if any.
iii) Short Term Employee Benets
Short term benets are charged off at the undiscounted amount in the year in which the related service is rendered.
iv) Long Term Employee Benet
Compensated absences which are not expected to occur within twelve months after the end of the period in
which the employee renders the related services are recognized as a liability at the present value of the dened
benet obligation at the balance sheet date. Annual leaves can either be availed or enchased subject to
restriction on the maximum accumulation of leaves.
v) Termination Benets
Termination Benets are recognized as an expense in the period in which they are incurred.
The Group shall recognize a liability and expense for termination benets at the earlier of the following dates:
(a) When the entity can no longer withdraw the offer of those benets; and
(b) When the entity recognizes costs for a restructuring that is within the scope of Ind AS 37 and involves
the payment of termination benets.
(15) Borrowing Costs
(1) Borrowing Costs that are specically attributable to the acquisition, construction, or production of a Qualifying
Asset are capitalized as a part of the cost of such asset till such time the asset is ready for its intended use or sale.
A Qualifying Asset is an asset that necessarily requires a substantial period of time (generally over twelve
months) to get ready for its intended use or sale.
The Borrowing Cost consists of Interest & Other Incidental costs that the Group incurs in connection with the
borrowing of such Funds.
(2) For general borrowing used for the purpose of obtaining a qualifying asset, the amount of borrowing costs
eligible for capitalization is determined by applying a capitalization rate to the expenditures on that asset. The
capitalization rate is the weighted average of the borrowing costs applicable to the borrowings of the Group
that are outstanding during the period, other than borrowings made specically for the purpose of obtaining a
qualifying asset. The amount of borrowing costs capitalized during a period does not exceed the amount of
borrowing cost incurred during that period.
(3) Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing
costs. All other borrowing costs are recognized as expense in the period in which they are incurred.
(16) Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys
the right to control the use of an identied asset for a period of time in exchange for consideration.
a) Group as a Lessee
The Group applies a single recognition and measurement approach for all leases, except for short-term leases
and leases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use
assets representing the right to use the underlying assets.
i) Right-Of-Use Assets
The Group recognises Right-Of-Use Assets at the commencement date Of the lease (i.e., the date the
underlying asset is available for use). Right-Of-Use Assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any re-measurement of Lease Liabilities. The cost of
Right-Of-Use assets includes the amount of Lease Liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date less any lease incentives received. Right-of-use assets are
depreciated on a straight-line basis from the commencement date over the shorter of the lease term and the
estimated useful lives of the Assets.
If ownership of the Leased Asset transfers to the Group at the end of the lease term or the cost reects the
exercise of a purchase option, depreciation is calculated using the estimated useful life of the Asset.
ii) Lease Liabilities
At the commencement date of the lease, the Group recognises Lease Liabilities measured at the present value
of lease payments to be made over the lease term. The lease payments include xed payments (including in-
substance xed payments) less any lease incentives receivable, variable lease payments that depend on an
index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also
include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments
of penalties for terminating the lease, if the lease term reects the Group exercising the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are
incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

INTEGRATED ANNUAL REPORT 2022-23 239

 In calculating the present value of lease payments, the Group uses its existing borrowing rate at the lease
commencement date because the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reect the accretion of interest and reduced
for the lease payments made. In addition, the carrying amount of lease liabilities is re-measured if there is a
modication, a change in the lease term, a change in the lease payments (e.g., changes to future payments
resulting from a change in an index or rate used to determine such lease payments) or a change in the
assessment of an option to purchase the underlying asset.
Lease liabilities have been presented as a separate line and Right-of-use assets have been presented under
Property Plant and Equipment in the balance sheet. Lease payments have been classied as cash used in
nancing activities.
iii) Short-Term Leases and leases of Low-Value Assets
The Group has elected not to recognise Right-Of-Use Assets and Lease liabilities for short term leases of all
assets that have a lease term of 12 months or less and leases of low-value assets. The Group recognises the
lease payments associated with these leases as an expense on a straight-line basis over the lease.
b) Group as a Lessor
Lease income from Operating Leases where the Group is a Lessor is recognized in income on a straight-line
basis over the lease term unless the recipients are structured to increase in line with expected general ination
to compensate for the expected inationary cost increases. The respective Leased Assets are included in the
Balance Sheet based on their nature.
(17) Taxes on Income
a) Current Tax
i) Tax on Income for the Current Period is determined on the basis of estimated taxable income and tax credits
computed in accordance with the provisions of the relevant tax laws and based on the expected outcome
of assessments / appeals.
ii) Current Income Tax relating to items recognized directly in equity is recognized in equity and not in the
statement of prot and loss .Management periodically evaluates positions taken in the tax returns with
respect to situations in which applicable tax regulations are subject to interpretation and establishes
provisions where appropriate.
b) Deferred Tax
Deferred Tax is provided using the Balance Sheet Approach on temporary differences at the reporting date
between the tax bases of assets and liabilities and their carrying amounts for nancial reporting purposes at the
reporting date.
The carrying amount of Deferred Tax Assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufcient taxable prot will be available to allow all or part of the Deferred Tax Asset to be
utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent
that it has become probable that future taxable prots will allow the Deferred Tax Asset to be recovered.
Deferred Tax Assets and Liabilities are measured at the tax rates that are expected to apply in the year when the
asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Deferred Tax relating to items recognized outside the Statement of Prot and Loss is recognized outside the
Statement of Prot and Loss.
Deferred Tax Items are recognized in correlation to the underlying transaction either in other comprehensive
Income or directly in Equity.
The break-up of the major components of the deferred tax assets and liabilities as at balance sheet date has
been arrived at after setting off deferred tax assets and liabilities where the Group have a legally enforceable
right to set-off assets against liabilities and where such assets and liabilities relate to taxes on income levied by
the same governing taxation laws.
(18) Exceptional Items
On certain non-recurring occasions, the size, type or incidence of an item of income or expense, pertaining to the
ordinary activities of the Group is such that its disclosure improves the understanding of the performance of the
Group, such income or expense is classied as an exceptional item and accordingly, disclosed in the notes
accompanying to the nancial statements.
(19) Earnings Per Share (EPS)
i) Basic Earnings Per Share
Basic Earnings Per Share is calculated by dividing
• The Prot or Loss attributable to Equity Shareholders of the Group by the Weighted Average number of
Equity Shares outstanding during the Financial Year, adjusted for bonus elements in Equity Shares issued
during the year.

240 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

ii) Diluted Earnings Per Share

Diluted Earnings Per Share adjusts the gures used in the determination of basic earnings per share to take
into account
• The after Income Tax effect of interest and other nancing costs associated with dilutive potential equity
shares, and the Weighted Average number of additional equity shares that would have been outstanding
assuming the conversion of all dilutive potential Equity Shares.
(20) Segment Accounting
The Group is engaged primarily into manufacturing and trading of Cementious Material. The Group has only one
business segment as identied by management namely Cementious Materials.
Segments have been identied taking into account nature of product and differential risk and returns of the
segment. The business segments are reviewed by the Vice Chairman & Managing Director (Chief Operating
Decision Maker).
The Chief Operational Decision Maker monitors the operating results of its business Segments separately for the
purpose of making decisions about resource allocation and performance assessment. Segment performance is
evaluated based on each segments prot or loss and is measured consistently with prot or loss in the nancial
statements.
(21) Cash Dividend
The Group recognises a Liability to pay Dividend to Equity Holders of the Group when the distribution is authorised
and the distribution is no longer at the discretion of the Group. As per the corporate laws in India, a distribution is
authorised when it is approved by the shareholders. A corresponding amount is recognised directly in Other Equity.
Interim Dividends are recognised as a Liability on the date of declaration by the Company's Board of Directors.
1.4 Recent pronouncement
Ministry of Corporate Affairs (“MCA”) noties new standard or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies
(Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules,
2023, applicable from April 1, 2023, as below:
Ind AS 1 – Presentation of Financial Statements The amendments require companies to disclose their material accounting
policies rather than their signicant accounting policies. Accounting policy information, together with other information,
is material when it can reasonably be expected to inuence decisions of primary users of general purpose nancial
statements. The Company does not expect this amendment to have any signicant impact in its nancial statements.
Ind AS 12 – Income Taxes The amendments clarify how companies account for deferred tax on transactions such as leases
and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15
and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give
rise to equal taxable and deductible temporary differences. The Company is evaluating the impact, if any, in its nancial
statements.
Ind AS 8 – Accounting Policies, Changes in Accounting Estimates and Errors The amendments will help entities to
distinguish between accounting policies and accounting estimates. The denition of a change in accounting estimates has
been replaced with a denition of accounting JK Lakshmi Cement Limited Notes to the Standalone Financial Statement for
the Year ended March 31, 2023 estimates. Under the new denition, accounting estimates are “monetary amounts in
nancial statements that are subject to measurement uncertainty”. Entities develop accounting estimates if accounting
policies require items in nancial statements to be measured in a way that involves measurement uncertainty. The
Company does not expect this amendment to have any signicant impact in its nancial statements.

INTEGRATED ANNUAL REPORT 2022-23 241

JK Lakshmi Cement Limited
Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Note-2 Property, Plant and Equipment

` In Crore (10 Million)
Right of Use
Particulars Freehold Leasehold Leasehold Buildings Plant and Furniture Ofce Vehicles Railway Total
Land Building & Land Equipment and Equip- and Siding
Machinery Fixtures ments Locomotives
Gross Block
As at 1st April'2021 270.25 22.93 57.74 245.27 3,751.05 7.20 10.44 31.63 15.37 4,411.88
Additions/Adjustments 15.61 16.86 11.32 12.43 257.44 0.16 1.21 8.67 7.49 331.19
Disposals/Adjustments - - 0.05 0.49 - - 6.35 - 6.90
As at 31st March'2022 285.86 39.79 69.06 257.65 4,008.00 7.36 11.65 33.95 22.86 4,736.17
Additions/Adjustments 59.74 13.32 0.07 15.10 116.34 0.28 1.56 14.59 0.85 221.85
Disposals/Adjustments - 4.36 - - 15.24 0.02 0.34 10.20 - 30.16
As at 31st March'2023 345.60 48.75 69.13 272.75 4,109.10 7.62 12.87 38.34 23.71 4,927.86
Accumulated Depreciation
As at 1st April'2021 - 5.77 2.85 80.35 1,052.02 4.19 6.58 18.77 4.92 1,175.45
Charged for the year - 7.22 0.53 13.28 192.91 0.73 1.55 4.89 1.00 222.09
On Disposal - - 0.01 0.19 - - 4.49 - 4.69
As at 31st March'2022 - 12.99 3.38 93.62 1,244.74 4.92 8.13 19.17 5.92 1,392.85
Charged For the Year - 10.51 1.19 12.70 192.19 0.59 1.42 6.37 1.47 226.43
On Disposal - 4.36 - - 12.75 0.01 0.28 7.87 - 25.27
As at 31st March'2023 - 19.14 4.57 106.32 1,424.18 5.50 9.27 17.67 7.39 1,594.01
Net Carrying Amount
As at 31st March'2022 285.86 26.80 65.68 164.03 2,763.26 2.44 3.52 14.78 16.94 3,343.32
As at 31st March'2023 345.60 29.61 64.56 166.43 2,684.92 2.12 3.60 20.67 16.32 3,333.85
1) The Title Deeds of all the Immovable Properties (other than properties where the Company is the lessee and the lease
agreements are duly executed in favour of the lessee) disclosed in the nancial statements are held in the name of the
Company, except the following
Description of Gross Carrying Gross Carrying Held in the Whether Period held Reason for not being held in the
Prpoerty Value As at Value As at name of promoter, indicate range, name of company
31st 31st director or where
March'2023 March'2022 their relative appropriate
or employee
Lease Hold Land 4.02 4.02 Bihar Industrial No July'2015 BIADA has given a notice to the
Development Company on 30.06.2020 that the
Authority amount paid by the Company
(BIADA). towards Leasehold Land has been
forfeited. Aggrieved by the BIADA’s
notice, the Company had moved to
Hon’ble Patna High Court in 2020.
The Hon’ble High Court has
directed BIADA to relook into the
allotment of an alternate Land. On
refusal of BIADA to give any
alternate Land, the Company has
led a case against BIADA at
Hon’ble Patna High Court in
January 2023 for adjudication of
the matter.

2) The Group has lease contracts for various buildings and plants used in its operations. Lease of buildings and plants have lease
terms between 2 year to 10 years. The Group also has certain lease with lease terms of 12 months and less. The Group applies
the 'short term leases' recognition exemption for these leases.

242 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Consolidated Financial Statements for the Year ended March 31, 2023

The following are the amounts recognised in Statement of Prot and Loss as per IND AS 116 ` In Crore (10 Million)
Year Ended Year Ended
March 31 2023 March 31 2022
Depreciation expense of Right of Use Assets 11.70 7.75
Interest Expense on Lease Liabilities 3.66 3.36
Expense relating to Leases of Short-term / Low Value Assets
(included in Other Expenses) 11.95 11.89
Total Amount recognised in Statement of Prot and Loss 27.31 23.00

Amounts recognised in Statement of Cash Flows: ` In Crore (10 Million)

Year Ended Year Ended
March 31 2023 March 31 2022
Total Cash Outow for Leases 25.52 20.83
Financing Activities
Repayment of Principal 9.91 5.58
Repayment of Interest 3.66 3.36
Operating Activities
Short Term / Low Value Assets Lease Payment 11.95 11.89

The following is the movement in lease liabilities during the year ended March 31, 2023 and March 31, 2022:
` In Crore (10 Million)
Year Ended Year Ended
March 31 2023 March 31 2022
Balance at the beginning 30.01 18.83
Addition during the year 13.32 16.86
Finance cost accrued during the period 3.66 3.36
Payment of lease liabilities (13.57) (9.04)
Balance at the end 33.42 30.01
Non Current (Refer Note 20A) 23.90 21.05
Current (Refer Note 24A) 9.52 8.96

Note-2A Capital-Work-in-Progress (CWIP)

` In Crore (10 Million)
Movement in capital-work-in-progress As at March 31 2023 As at March 31 2022
Opening balance (Gross) 348.98 334.90
Addition during the year 773.01 294.54
Capitalised during the year (133.98) (280.46)
Provision for impairment (refer note 1 below) (97.80) (97.80)
Closing balance (Net) 890.21 251.18
1) Exceptional item includes Nil (Previous Year Rs 36.65 Crore) represents diminution in the value of capital-work-in-progress due
to impairment of carrying cost of an asset under contruction at the holding company's Durg Cement Plant.

INTEGRATED ANNUAL REPORT 2022-23 243

JK Lakshmi Cement Limited
Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Capital Work in Progress (CWIP) Ageing

Particulars Less than 1 year 1-2 years 2-3 years More than 3 years Total
As on 31st March'23
Projects in Progress 707.24 137.13 0.26 - 844.63
Projects Temporarily Supsended (refer note 2) 45.58 45.58
Total 707.24 137.13 0.26 45.58 890.21
As on 31st March'22
Projects in Progress 196.59 8.09 0.82 0.10 205.60
Projects Temporarily Supsended (refer note 2) 45.58 45.58
Total 196.59 8.09 0.82 45.68 251.18
2) The Suspended project is expected to be completed in next 2-3 years.
3) There are no projects as on reporting period which has exceeded cost as compared to its original cost. The Projects Temporarily
Suspended are overdue for completion.

Note-3 Investment Property

` In Crore (10 Million)

Particulars Freehold Land Leasehold Land Buildings Total
Gross Block
As at 1st April'2021 107.60 0.04 8.50 116.14
Additions/Adjustments - - 0.14 0.14
Disposals/Adjustments ` 2131 - 0.07 0.07
As at 31st March'2022 107.60 0.04 8.57 116.21
Additions/Adjustments - - - -
Disposals/Adjustments ` 30567 - - -
As at 31st March'2023 107.60 0.04 8.57 116.21
Accumulated Depreciation
As at 1st April'2021 - ` 38904 0.34 0.35
Charged For the Year - ` 6970 0.18 0.18
On Disposal - - - -
As at 31st March'2022 - ` 45,874 0.52 0.53
Charged For the Year - ` 3494 0.16 0.16
On Disposal - - - -
As at 31st March'2023 - ` 49,368 0.68 0.69
Net Carrying Amount
As at 31st March'2022 107.60 0.03 8.05 115.68
As at 31st March'2023 107.60 0.03 7.89 115.52
Fair Value*
As at 31st March'2022 126.23
As at 31st March'2023 126.25
Rental Income
For the FY 2021-22 1.07
For the FY 2022-23 1.15

Note : There is no material expenses incurred for the maintenance of investment properties derived out of the same.
Figure with ` symbol represents absolute gure.
*Based upon realisation value as calculated by independent valuer.

244 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Note-4 Goodwill

Goodwill on Consolidations
Goodwill acquired in business combinaton is allocated, at acquisition, to the Cash Generating Units (CGUs) that are expected to
benet from that business combination. The carrying amount of goodwill had been allocated as follows :
` In Crore (10 Million)
As at As at
31st March 2023 31st March 2022
Udaipur Cement Works Limited (UCWL) 72.25 72.25
Ram Kanta Properties Private Limited (RKPPL) 0.07 0.07
Total 72.32 72.32
There is no impairment of the goodwill.
Note-4A Other Intangible Assets ` In Crore (10 Million)
Particulars Software Mining Rights Total
Gross Block
As at 1st April'2021 7.66 - 7.66
Additions/Adjustments 3.05 - 3.05
Disposals/Adjustments - - -
As at 31st March'2022 10.71 - 10.71
Additions/Adjustments 0.52 2.15 2.67
Disposals/Adjustments - - -
As at 31st March'2023 11.23 2.15 13.38
Accumulated Amortisation
As at 1st April'2021 5.10 - 5.10
Charged For the Year 1.20 - 1.20
Disposal - - -
As at 31st March'2022 6.30 - 6.30
Charged For the Year 1.57 0.18 1.75
Disposal - - -
As at 31st March'2023 7.87 0.18 8.05
Net Carrying Amount
As at 31st March'2022 4.41 - 4.41
As at 31st March'2023 3.36 1.97 5.33

Note-5 Investments ` In Crore (10 Million)

As at As at
Particulars 31st March 2023 31st March 2022
Number Amount Number Amount
Investment in an Associate*
Dwarkesh Energy Ltd.
Equity Shares of face value ` 10 unquoted 3,50,000 0.05 3,50,000 0.06
7% Optionally Cumulative Convertible Redeemable
Preference Share of Face Value ` 100/- unquoted 11,00,000 12.95 11,00,000 12.95
Investment in Other Financial Assets 13.00 13.01
Others - Fair Value through Prot and Loss
Sungaze Power Pvt Ltd. (` 14.66/- each) (Refer Note 70) 14,32,308 2.10 14,32,308 2.10
15.10 15.11
Aggregate carrying amount of quoted investments - -
Aggregate market value of quoted investments - -
Aggregate amount of unquoted investments 15.10 15.11
* Share of Post acquisition Loss / Gain has been adjusted in carrying amount.
INTEGRATED ANNUAL REPORT 2022-23 245
JK Lakshmi Cement Limited
Notes to Consolidated Financial Statements for the Year ended March 31, 2023
` In Crore (10 Million)
As at As at
31st March 2023 31st March 2022

Note-6 Non Current Financial Assets - Loans

Unsecured, Considered Good:
(At amortised cost)
Loan to Related Parties (refer note 66) 2.32 4.71
Loan to Others 15.00 15.00
Secured
Which have Signicant Increase in Credit Risk - -
Credit Impaired - -
17.32 19.71
Note : No loans or advances are due by directors or other ofcers of the Company or
any of them either severally or jointly with any other person. Further, no loans or
advances are due by rms or private companies in which any director is a partner, a
director or a member.

Note-7 Other Non Current Financial Assets (At amortised cost)

Unsecured, Considered Good:
Security Deposits 48.15 36.61
Bank Deposits with original maturity for more than 12 months* 40.76 2.83
88.91 39.44
* Includes ` 2.59 crore (previous year ` 2.83 crore) under lien

Note-8 Deferred tax (Asset)/Liabilities (Net)

Deferred Tax Liability
Related to Property, Plant and Equipments 435.95 427.08
Others 11.82 12.60
Less: Deferred Tax Assets
Expenses / Provisions allowable 74.56 67.92
Unabsorbed Depreciation & Brought Forward Business Losses 98.77 107.47
Others 10.56 10.52
MAT Credit Entitlement 131.22 200.72
Deferred Tax (Asset)/Liabilities (Net) 132.66 53.05

Note-9 Other Non-Current Assets

Unsecured, considered good:
Capital Advances * 74.92 114.92
Deferred Expenditure 2.19 1.99
77.11 116.91
* Refer footnote of note 6

Note-10 Inventories (at lower of cost or net realisable value)

Raw Materials (including in transit ` 45126 (previous year ` 0.02 crore) 48.60 27.83
Work -in -progress 126.68 95.62
Finished Goods (including in transit ` 8.23 Crore (previous year ` 8.41 crore) 40.24 35.75
Stock-in -Trade (including in transit ` 0.18 crore (previous year nil) 6.98 1.48
Stores and Spares 137.12 118.33
"Fuel Stock (including in transit ` 241.35 crore (previous year ` 73.90 crore) 466.52 280.97
Packing Materials 15.46 21.02
841.60 581.00
For Hypothecation refer Note 24

246 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Consolidated Financial Statements for the Year ended March 31, 2023
` In Crore (10 Million)
As at As at
31st March 2023 31st March 2022

Note-11 Current Investments

Investment at fair value through Prot & Loss
Investment in quoted Non Convetible Debentures 164.09 107.83
Investment in quoted mutual funds (debt base) 135.67 504.94
Investment in quoted bonds & Commercial Paper 211.68 24.16
511.44 636.93
Aggregate book value of quoted investments 511.44 636.93
Aggregate market value of quoted investments 511.44 636.93
Aggregate book value of unquoted investments - -

Note-12 Trade Receivables @

Considered good - Secured 20.60 9.36
Considered good - Unsecured 44.82 25.84
Which have Signicant Increase in Credit Risk - -
Credit Impaired 8.59 7.66
Less :- Provision/Allowances for doubtful debts (8.59) (7.66)
65.42 35.20
@ Contract Assets as Per IND AS 115
For Hypothecation Refer Note 24
No trade or other receivable are due from directors or other ofcers of the
company either severally or jointly with any other person. Trade receivables
are non-interest bearing and are generally on terms of 0-90 days.
Trade Receivables ageing

Outstanding For Following Periods From Due Date of Payment as on 31st March'23
Particulars Not Due Less Than 6 Months to 1 Year to 2 Year to More Than Total
6 Months 1 Year 2 Year 3 Year 3 Years
A. Undisputed
Considered good 29.44 28.12 0.01 - 0.01 - 57.58
Credit Impaired - - - 0.15 0.34 2.58 3.07
29.44 28.12 0.01 0.15 0.35 2.58 60.65
Less Credit Impaired - - - (0.15) (0.34) (2.58) (3.07)
Total 29.44 28.12 0.01 - 0.01 - 57.58
B. Disputed
Considered good - - 2.51 2.54 2.51 0.28 7.84
Credit Impaired - - - 1.14 1.04 3.33 5.51
- - 2.51 3.68 3.55 3.61 13.35
Less Credit Impaired - - - (1.14) (1.04) (3.33) (5.51)
Total - - 2.51 2.54 2.51 0.28 7.84
Total (A+B) 29.44 28.12 2.52 2.54 2.52 0.28 65.42

INTEGRATED ANNUAL REPORT 2022-23 247

JK Lakshmi Cement Limited
Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Outstanding For Following Periods From Due Date of Payment as on 31st March'22
Particulars Not Due Less Than 6 Months to 1 Year to 2 Year to More Than Total
6 Months 1 Year 2 Year 3 Year 3 Years
A. Undisputed
Considered good 20.92 5.09 0.41 0.02 - - 26.44
Credit Impaired - - 0.05 0.32 1.13 1.67 3.17
20.92 5.09 0.46 0.34 1.13 1.67 29.61
Less Credit Impaired - - (0.05) (0.32) (1.13) (1.67) (3.17)
Total 20.92 5.09 0.41 0.02 - - 26.44
B. Disputed
Considered good 0.34 0.87 1.32 2.55 2.51 1.16 8.76
Credit Impaired - - - 1.06 1.07 2.36 4.49
0.34 0.87 1.32 3.61 3.59 3.52 13.25
Less Credit Impaired - - - (1.05) (1.07) (2.36) (4.49)
Total 0.34 0.87 1.32 2.55 2.51 1.16 8.76
Total (A+B) 21.26 5.96 1.73 2.57 2.51 1.16 35.20

` In Crore (10 Million)

As at As at
31st March 2023 31st March 2022

Note-13 Cash and Cash Equivalents

On Current Account 51.51 46.23
Deposits with original maturity of Less than 3 months * 90.00 27.22
Cheques , Draft on hand/transit 0.94 0.24
Cash on hand 0.49 0.34
142.94 74.03
* includes ` 0.37 crore (previous year 0.72 crore) under lien

Note-14 Bank Balances Other than Cash and Cash Equivalents

Deposits with remaining maturity for more than 3 months
but less than 12 months * 194.52 497.52
On Unpaid Dividend / Interest Accounts 1.50 1.39
196.02 498.91
* includes ` 0.38 crore (previous year 3.08 crore) under lien

Note-15 Current Financial Assets - Loans

Unsecured, Considered Good:
Loans to Related Party (refer Note 63) 3.33 13.33
3.33 13.33

Note-16 Other Current Financial Assets

Unsecured, considered good unless otherwise stated
Receivables ( Railway claims, Insurance claims, Subsidy and other receivables)
Considered good- Unsecured 10.86 4.99
Credit Impaired 4.22 4.22
Less: Provision for doubtful claims (4.22) (4.22)
10.86 4.99
Interest Receivable from Banks and others 11.03 10.84
Advances to Employees (Loans) 0.61 0.63
22.50 16.46

248 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Consolidated Financial Statements for the Year ended March 31, 2023
` In Crore (10 Million)
As at As at
31st March 2023 31st March 2022

Note-17 Current Tax Assets (Net)

Advance Income Tax (Net of Provision) 6.52 1.75
6.52 1.75

Note-18 Other Current Assets

(unsecured considered good unless otherwise stated)
Prepaid expenses 10.80 8.01
Balance with Govt. Authorities 57.35 22.44
Other Advances 66.97 59.29
Deferred Expenditure 0.27 0.74
135.39 90.48

Note-19 Equity Share Capital

SHARE CAPITAL
Authorised :
Equity Shares - 250,000,000 (Previous year 250,000,000) of ` 5 each 125.00 125.00
Preference Shares - 5,000,000 ( Previous year 5,000,000) of `100 each 50.00 50.00
Unclassied Shares 25.00 25.00
200.00 200.00
Issued, Subscribed and Paid up :
Equity Shares (with equal rights) 117,670,066 (Previous year 117,670,066)
of ` 5 each fully paid up 58.84 58.84
Add: Forfeited Shares 0.01 0.01
58.85 58.85

a. Reconciliation of number of Share Outstanding :

Particular 31st March 2023 31st March 2022
Opening Balance 117,670,066 117,670,066
Shares Issued during the year - -
Shares Outstanding at the end of the year 117,670,066 117,670,066

b. List of shareholders holding more than 5% of the equity share capital of the Company:
Shareholder name 31st March 2023 31st March 2022
Number Number
Bengal & Assam Company Ltd. 52,099,121 52,099,121
Axis Mutual Fund Trustee Ltd. 7,342,519 6,090,240

INTEGRATED ANNUAL REPORT 2022-23 249

JK Lakshmi Cement Limited
Notes to Consolidated Financial Statements for the Year ended March 31, 2023
` In Crore (10 Million)
As at As at
31st March 2023 31st March 2022
c. Disclosure of Shareholding of Promoters
As at 31st March'2023 As at 31st March'2022
Name of Promoters No of Shares % of Total No of Shares % of Total
Number of Number of
Shares Shares
Bengal & Assam Company Limited 52,099,121 44.28 52,099,121 44.28
Shri Bharat Hari Singhania 206,848 0.18 206,848 0.18
Smt. Vinita Singhania 280,058 0.24 280,058 0.24
Total 52,586,027 44.70 52,586,027 44.70
% Change in holding during the year Nil Nil

* In addition, as on 31st March 2023, there are 21 entities holding 22,81,538 Equity Shares (2.03%) and as on 31st March 2022,
there are 22 entities holding 22,81,538 Equity Shares (2.03%) , who are constituents of the Promoter Group as per the SEBI (Issue
of Capital and Disclosure Requirements) Regulations, 2018.
d. Terms/ right attached to equity shareholders :
i) The Company has only one class of Equity Shares having a par value of Rs 5 per share. Each holder of equity shares is
entitled to one vote per share.
ii) 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.
iii) The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting, except in case of interim dividend.
e. Nature of Reserves :-
Capital Redemption Reserve:- Represents the statutory reserve created when Preference Share Capital is redeemed.
Securities Premium :- Represents the amount received in excess of Par value of Securities.
Debenture Redemption Reserve :- Represents the Statutory Reserve for Non Convertibles Debentures issued by the Company.
f. During the last ve years, the Company has not issued any bonus shares nor are there any shares bought back and issued for
consideration other than cash.
` In Crore (10 Million)
As at As at
31st March 2023 31st March 2022

Note-19A Non Controlling Interest

Non Controlling Interest at the beginning of the year 26.74 12.80
Prot for the year attributable to Non Controlling Interest 10.49 14.02
Other Comprehensive Loss attributable to Non Controlling Interest -0.21 -0.08
Share of Total Comprehenshive Income
attributable to Non Controlling Interest for the Year 10.28 13.94
Non Controlling Interest at the end of the year 37.02 26.74

250 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Note-20 Non Current Borrowings

` In Crore (10 Million)
st
As at 31 March 2023 As at 31st March 2022
Non Current Current* Non Current Current*
SECURED LOANS
Bonds/Debentures :-
Redeemable Non- Convertible Debentures 350.00 - - 350.00
Term Loans :-
From Banks 950.66 216.99 978.39 218.72
From Government 27.03 32.80 53.74 -
Term Loan In Foreign Currency 175.17 28.76 187.36 -
1502.86 278.55 1219.49 568.72
UNSECURED LOANS
Public Deposits 26.07 34.54 45.62 17.38
26.07 34.54 45.62 17.38
Less:- current maturities of long term debt shown
under Note No- 24 313.09 586.10
1528.93 - 1265.11 -
* Due & Repayable within one year
Parent Company
1 Term Loan from Bank aggregating to ` 12.35 Crore is secured by way of a First Charge on all the Immovable and Movable
Fixed Assets pertaining to the Company’s Cement Unit in the State of Rajasthan, ranking pari-passu with the charges created
on the said Assets subject to the prior charges in favour of Banks on Specied Assets and Company’s Banks for Working
Capital on Specied Movables Assets. This Term Loan is repayable in 4 equal Quarterly Instalments.
2 Term Loan from a Bank of ` 6.44 Crore is secured by way of an Exclusive First Charge on Immovable & Movable Fixed Assets of
the Company's Cement Grinding Unit in the State of Haryana. This Term Loan is repayable in 3 equal Quarterly Instalments.
3 Term Loan from a Bank of ` 62.81 Crore is secured by way of an Exclusive First Charge on all the Immovable and Movable
Fixed Assets of the Company’s Cement Grinding Unit in the State of Gujarat. This Term Loan is repayable in 11 equal quarterly
instalments
4 Term Loans from Banks aggregating to ` 250.00 Crore are secured by way of a Pari Passu First Charge on all the Immovable
and Movable Fixed Assets of the Company’s Cement Plant in the State of Chattisgarh. These Term Loans from Banks are
repayable in 10 equal Quarterly Instalments.
5 Term Loan from a Bank of ` 82.78 Crore is secured by way of an Exclusive First Charge on Movable Fixed Assets of the Company's
20 MW Thermal Power Plant at Durg, Chattisgarh. This Term Loan is repayable in 38 unequal Quarterly Instalments.
6 Term Loan from a Bank of ` 69.11 Crore is secured by way of an Exclusive First Charge on all the Immovable & Movable Fixed
Assets of the Company’s Cement Grinding Unit at Cuttack, Odisha. This Term Loan is repayable in 43 equal Quarterly Instalments.
7 Interest Free Loan (IFL) from The Director of Industries & Commerce, Haryana of ` 68.53 Crore granted to Company in relation
to its Cement Grinding Unit at Jhajjar, Haryana, is secured by Bank Guarantee of equivalent amount and shall be repaid at the
end of 5th year from the respective disbursement dates. The said IFL is recognised on amortised cost basis.
8 Foreign Currency Term Loan (ECB) from a Bank of ` 203.94 Crore are secured by way of a Pari Passu First Charge on all the
Immovable and Movable Fixed Assets pertaining to the Company’s Cement Unit in the State of Rajasthan subject to the prior
charges in favour of Banks on Specied Assets and Company’s Banks for Working Capital on Specied Movables Assets. This
ECB is repayable in 7 unequal Annual Instalments commencing from 28th September 2023.
9 Public Deposits represents the Deposits accepted by the Company from Public under its Fixed Deposit Scheme having maturity
of 1, 2 & 3 years from the date of deposits.
10 The above outstanding Term Loans are net of the Processing charges as per IND AS 109
Subsidiary (Udaipur Cement Works Ltd.)
1 8.96% Guaranteed Rated Secured Listed Redeemable Privately Placed Non Convertible Debentures of ` 350 Crore
are redeemable on 16th March 2025
The NCDs are secured by a Pari Passu First Charge on all the Movable & Immovable Fixed Assets of the Company’s Cement Unit

INTEGRATED ANNUAL REPORT 2022-23 251

JK Lakshmi Cement Limited
Notes to Consolidated Financial Statements for the Year ended March 31, 2023

in the State of Rajasthan and Pari Passu Second Charge on the Current Assets of the Company. The said NCDs are also secured
by a Corporate Guarantee of the Holding Company.
2 Term Loans aggregating to ` 652.13 Crore from Banks are secured by a (i) Pari Passu First Charge on all the Movable &
Immovable Fixed Assets of the Company’s Cement Unit in the State of Rajasthan & (ii) Pari Passu Second Charge on Current
Assets of the Company.
The said Term Loans are also secured by a Corporate Guarantee of the Holding Company.
- Term Loan of ` 67.17 Crore shall be repayable in 26 unequal Quarterly Instalments
- Term Loan of ` 68.00 Crore shall be repayable in 22 unequal Quarterly Instalments
- Term Loan of ` 78.50 Crore shall be repayable in 24 unequal Quarterly Instalments
- Term Loan of ` 211.60 Crore shall be repayable in 28 unequal Quarterly Instalments
- Term Loan of ` 32.50 Crore shall be repayable in 24 equal Quarterly Instalments
- Term Loans of ` 194.36 Crore shall be repayable in 44 unequal Quarterly Instalments commencing from
31st December 2025.
3 Term Loans of ` 38.21 Crore from Banks under Emergency Credit Line Guarantee Scheme (ECLGS) are secured by a (i) Pari
Passu Second Charge on all the Movable & Immovable Fixed Assets of the Company’s Cement Unit in the State of Rajasthan &
(ii) Pari Passu Second Charge on Current Assets of the Company.
` In Crore (10 Million)
As at As at
31st March 2023 31st March 2022

Note-20A Non Current Lease Liabilities

Lease Liabilities 23.90 21.05
23.90 21.05

Note-21 Other Non Current Financial Liabilities

Trade and other Deposits 217.45 185.97
Other Liabilities 45.59 49.55
263.04 235.52

Note-22 Non Current Provisions

Provision for Employees' Benets 19.35 13.51
19.35 13.51

Note-23 Other Non-Current Liabilities

Deferred Revenue * 1.75 7.43
Liability for Employees Subsidised Car Scheme 6.78 6.49
Government & Other Dues 82.99 80.98
91.52 94.89

Note-24 Short Term Borrowings

Current maturities of long-term debts (Refer Note-20) 313.09 586.10
Secured Loans
Unsecured Loans
Public Deposits 4.29 5.32
317.38 591.42
Parent Company
Working capital borrowings from banks are secured / to be secured by Hypothecation of stocks and book debts etc. of the
Company, both present & future and by a second charge on the movable & immovable Fixed Assets of the Company’s Cement
Plants in the States of Rajasthan and Chattisgarh (except those assets which are exclusively charged to other lenders)
Subsidiary Company
Working capital facilities are secured by way of First Pari Passu Charge on the entire Current Assets of the Company and Second
Pari Passu Charge on the Movable & Immovable Fixed Assets of the Company’s Cement Unit in the State of Rajasthan, both
Present and future. The Working Capital facilities are also secured by Corporate Guarantee of Holding Company.

252 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Consolidated Financial Statements for the Year ended March 31, 2023
` In Crore (10 Million)
As at As at
31st March 2023 31st March 2022

Note-24A Non Current Lease Liabilities

Lease Liabilities 9.52 8.96
9.52 8.96

Note-25 Trade Payables

Micro and Small Enterprises (refer note 59) 19.00 10.74
Others 567.01 355.25
586.01 365.99
Trade Payable ageing
Outstanding For Following Periods From Due Date of Payment as on 31st March'23
Particulars Unbilled Not Less Than 1- 2 Year 2-3 Year More Than Total
Due Due 1 Year 3 Years
(i) MSME - 15.74 3.19 0.07 0.00 0.00 19.00
(ii) Others 19.83 481.88 61.16 1.83 1.16 1.15 567.01
(iii) Disputed dues - MSME - - - - - - -
(iv) Disputed dues - Others - - - - - - -
Total 19.83 497.62 64.35 1.90 1.16 1.15 586.01

Outstanding For Following Periods From Due Date of Payment as on 31st March'22
Particulars Unbilled Not Less Than 1- 2 Year 2-3 Year More Than Total
Due Due 1 Year 3 Years
(i) MSME - 7.89 2.82 0.03 0.00 0.00 10.74
(ii) Others 20.61 279.59 49.77 2.89 1.00 1.39 355.25
(iii) Disputed dues - MSME - - - - - - -
(iv) Disputed dues - Others - - - - - - -
Total 20.61 287.48 52.59 2.92 1.00 1.39 365.99

` In Crore (10 Million)

As at As at
31st March 2023 31st March 2022

Note-26 Other Current Financial Liabilities

Interest Accrued but not due on borrowings 18.55 8.08
Unclaimed dividends # 1.50 1.39
Unclaimed matured Public Deposits and interest # 0.48 1.10
Capital Creditors 58.49 16.70
Other liabilities 358.37 381.02
Mark to Market Loss 4.15 0.03
441.54 408.32
# Investor Education and Protection Fund will be credited as and when due.

Note-27 Other Current Liabilities

Advance from Customers 93.88 97.84
Govt. and other dues 180.69 216.29
Deferred Revenue 5.67 5.67
280.24 319.80

INTEGRATED ANNUAL REPORT 2022-23 253

JK Lakshmi Cement Limited
Notes to Consolidated Financial Statements for the Year ended March 31, 2023
` In Crore (10 Million)
As at As at
31st March 2023 31st March 2022

Note-28 Current Provisions

Provision for Employees' Benet 5.86 15.78
5.86 15.78
Note-29 Current Tax Liabilities (Net)
Provision for Taxation (Net of Taxes paid) - 0.88
- 0.88

For the year ended For the year ended

31st March 2023 31st March 2022

Note-30 Revenue From Operations @

Revenue from contracts with customers
Sale of products
Cement 5,662.54 4,689.89
Others 788.66 727.74
Other Operating Revenues 0.30 2.26
6,451.50 5,419.89
@ Refer Note No. 67

Note-31 Other Income

Interest Income 25.53 22.75
Interest income from other nanical asset at amortised cost 6.88 7.11
Prot on sale * of (Net of unrealised gain of ` 16.35 crore (Prev. year ` 13.85 crore))
Current Investments 16.55 24.71
Prot/(loss) on Sale of Assets (Net) 0.31 6.22
Other Non - Operating Income 8.25 7.53
57.52 68.32
* Inclusive of fair value gain of ` 4.70 crore (Previous year gain of ` 2.74 crore)

Note-32 Cost of Material Consumed

Raw Material Consumed 934.65 824.23
934.65 824.23

Note-33 Purchase of Stock - in -Trade

Purchase of Traded goods 410.57 289.82
410.57 289.82
Change In Inventories of Finished Goods,
Note-34
Work-In-Progress and Stock- In -Trade
Opening Stocks
Work in progress 95.62 54.62
Finished Goods 35.75 31.88
Stock-in-Trade 1.48 1.72
132.85 88.22
Closing Stocks
Work in progress 126.68 95.62
Finished Goods 40.24 35.75
Stock-in-Trade 6.98 1.48
173.90 132.85
Less : Preoperative period Stocks (0.20) -
(40.85) (44.63)

254 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Consolidated Financial Statements for the Year ended March 31, 2023
` In Crore (10 Million)
For the year ended For the year ended
31st March 2023 31st March 2022

Note-35 Employee Benets Expense

Salaries and Wages 325.09 309.83
Contribution to Provident and Other Funds 24.36 20.89
Staff Welfare Expenses 38.27 32.10
387.72 362.82

Note-36 Power & Fuel

Power & Fuel 1,893.46 1,289.31
1,893.46 1,289.31

Note-37 Transport, Clearing and Forwarding Charges

Transport, Clearing and Forwanding Charges 1,258.21 1,099.41
1,258.21 1,099.41

Note-38 Finance Costs

Interest expenses * 122.01 127.05
Interest expenses at amortised cost 6.10 8.42
Interest on Lease Liabilities 3.66 3.36
Other borrowing cost 1.63 3.36
133.40 142.19
* net of nance cost capitalised refer note 50

Note-39 Depreciation and Amortization Expense (Net)

Depreciation on Property, Plant and Equipment 226.58 222.27
Amortisation on Intangible Assets 1.75 1.20
228.33 223.47

Note-40 Other Expenses

Consumption of Stores and Spares 159.68 130.86
Consumption of Packing Material 218.90 212.08
Rent (Net of realisation ` 0.75 crore, previous year ` 0.75 crore ) 11.95 11.89
Repairs to Buildings 7.00 6.88
Repairs to Machinery 73.21 58.26
Insurance 10.67 8.92
Rates and Taxes 8.06 8.96
Commission on Sales 113.31 78.18
Directors' Fee & Commission 4.24 2.15
Provision for Doubtful Debts 0.92 2.14
Advertisement and Sales Promotion 62.39 64.55
Travelling, Consultancy & Misc. expenses etc. # 98.70 63.35
769.03 648.22
# Refer note 57, also refer note-48 for remuneration of auditors.

Note-40A Earning Per Equity Share

Prot for the year attributable to Equity Shareholders of Parent 358.62 463.56
Weighted average number of equity shares outstanding 117,670,066 117,670,066
Basic Earnings per equity share (`): (Face value of ` 5 each) 30.48 39.39
Diluted Earnings per equity share (`): (Face value of ` 5 each) 30.48 39.39

INTEGRATED ANNUAL REPORT 2022-23 255

JK Lakshmi Cement Limited
Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Note-41 Financial Risk Management Objectives and Policies.

The Group realizes that risks are inherent & integral part of any business. The primary focus is to foresee the unpredictability of
nancial market & seek to minimize potential adverse effect on its nancial performance. The Group’s activities are exposed to a
variety of nancial risks from its operations. The key nancial risks include market risk (including foreign currency risk, interest rate
risk and commodity risk etc.), credit risk and liquidity risk.
41.1 Market Risk: Market risk is the risk of loss of future earnings, fair values or future cash ows that may results from change
in the price of a nancial instrument. The value of a nancial instrument may change as result of change in the interest
rates, foreign currency exchange rates, equity prices and other market changes may affect market risk sensitive
instruments. Market risk is attributable to all market risk sensitive nancial instruments and deposits, foreign currency
receivables, payables and loans and borrowings. Market risk comprises mainly three types of risk: interest rate risk,
currency risk and other price risk such as equity price risk and commodity risk.
The Group has an elaborate risk management system to inform Board Members about risk management and minimization
procedures.
a) Foreign Currency Risk: Foreign Currency risk is the risk that the fair value or future cash ows of an exposure will
uctuate because of changes in foreign exchange rates. The Group makes certain imports in foreign currency &
therefore is exposed to Foreign Exchange Risk.
The Group evaluates exchange rate exposure arising from foreign currency transactions and the Group follows
established risk management policies, including the use of derivatives like foreign exchange forward contracts to
hedge exposure to foreign currency risk.
Foreign Currency Sensitivity
The following table demonstrates the sensitivity to a reasonable possible change of US $ with all other variables held
constant. The impact on the Group’s Prot/(Loss)Before Tax due to changes in Foreign Exchange Rate :
` in Crore (10 Million)
Particulars As at As at
31st March 2023 31st March 2022
Appreciation in USD + ` 0.25 + ` 0.25
Effect on prot/(loss) before tax (1.04) (0.67)
Depreciation in USD - ` 0.25 - ` 0.25
Effect on prot/(loss) before tax 1.04 0.67
b) Interest Rate Risk :-
Interest rate risk is the risk that the fair value of future cash ows of a nancial instrument will uctuate because of
changes in market interest rates. Any changes in the interest rates environment may impact future rates of
borrowing. The Group mitigates this risk by maintaining a proper blend of Fixed & Floating Rate Borrowings as also a
mix of Rupee & Foreign Currency Borrowings. The following Table shows the blend of Group’s Fixed & Floating Rate
Borrowings in Indian Rupee & in Foreign Currency:
` in Crore (10 Million)
S.No. Particulars As at As at
31st March 2023 31st March 2022
1 Loans in Rupees
- Fixed Rate 64.89 411.91
- Floating Rate 1517.65 1203.53
- Interest Free 59.83 53.73
Total 1642.37 1669.17
2 Loans in US $
- Fixed Rate - -
- Floating Rate 203.94 187.36
Total 203.94 187.36
3 Grand Total (1+2) 1846.31 1856.53

The Group regularly scans the Market & Interest Rate Scenario to nd appropriate Financial Instruments & negotiates with
the Lenders in order to reduce the effective Cost of Funding.

256 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Interest Rate Sensitivity: The following table demonstrates the sensitivity to a reasonably possible change in interest rates
on nancial assets affected. With all other variables held constant, the Group's prot/(loss) before tax is affected through
the impact on nance cost with respect to our borrowing, as follows:
` in Crore (10 Million)
Particulars As at As at
31st March 2023 31st March 2022
Increase in Interest Basis Points + 25 + 25
Effect on Prot/(loss) Before Tax (4.16) (3.47)
Decrease in Interest Basis Points - 25 - 25
Effect on Prot/(loss) Before Tax 4.16 3.47

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable
market environment.
(c) Commodity Price Risk and Sensitivity:
The Group is exposed to the movement in price of key raw materials in domestic and international markets. The
Group manages uctuations in raw material price through hedging in the form of advance procurement when the
prices are perceived to be low and also enters into advance buying contracts as strategic sourcing initiative in order to
keep raw material and prices under check, cost of material is hedged to the extent possible.
41.2 Credit Risk:
Credit Risk arises from the possibility that counter party may not be able to settle their obligations as agreed. The Group is
exposed to credit risk from its operating activities (primarily trade receivables).
Trade Receivable:- Customer Credit Risk is managed based on Group’s established policy, procedures and controls. The
Group periodically assesses the nancial reliability of customers, taking into account the nancial conditions, current
economic trends, and analysis of historical bad debts and aging of trade receivables. Individual credit risk limits are set
accordingly.
The credit risk from the organized and bigger buyers is reduced by securing Bank Guarantees/Letter of Credits/part advance
payments/post dated cheques.The Outstanding’s of different parties are reviewed periodically at different level of
organization. The outstanding from the trade segment is secured by two tier security – security deposit from the dealer
himself, and our business associates who manage the dealers are also responsible for the outstanding from any of the
dealers in their respective region. Impairment analysis is performed based on historical data at each reporting period on an
individual basis. Foraging of trade receivables refer note 12
Financial Instruments and Deposits with Banks:
The Group considers factors such as track record, size of institution, market reputation and service standards to select the
bank with which balances and deposits are maintained. Generally, balances are maintained with the institutions with
which the Group has also availed borrowings. The Group does not maintain signicant cash and deposit balances other
than those required for its day to day operation.
41.3 Liquidity Risk:
Liquidity risk is the risk that the Group will encounter difculty in meeting the obligations associated with its nancial
liabilities that are settled by delivering cash or another nancial asset. The Group’s approach is to ensure, as far as
possible, that it will have sufcient liquidity to meet its liabilities when due.
The Group relies on a mix of borrowings, and excess operating cash ows to meet its needs for funds. The current
committed lines of credit are sufcient to meet its short to medium term expansion needs. The Group monitors rolling
forecasts of its liquidity requirements to ensure it has sufcient cash to meet operational needs while maintaining
sufcient headroom on its undrawn committed borrowings facilities at all times so that the Group does not breach
borrowing limits or covenants (where applicable) on any of its borrowing facilities.
Maturity Prole of Financial Liabilities:
The following Table provides undiscounted cash ows towards nancial liabilitiesinto relevant maturity based on the
remaining period at the balance sheet to the contractual maturity date.

INTEGRATED ANNUAL REPORT 2022-23 257

JK Lakshmi Cement Limited
Notes to Consolidated Financial Statements for the Year ended March 31, 2023

` in Crore (10 Million)

S.No Particulars Carrying Due within Due between Due after Total
Amount 1 Year 1-5 Years 5 Years
1 As on 31st March, 2023
- Borrowings 1857.44 338.77 1258.11 260.56 1857.44
- Trade Payables 586.01 586.01 - - 586.01
- Other Liabilities 704.56 441.52 27.34 235.70 704.56
- Lease Liabilities 41.39 12.44 25.99 2.96 41.39
Total 3189.40 1378.74 1311.44 499.22 3189.40
2 As on 31st March, 2022
- Borrowings 1874.19 591.43 942.68 340.08 1874.19
- Trade Payables 365.99 365.99 - - 365.99
- Other Liabilities 643.84 409.86 33.33 200.65 643.84
- Lease Liabilities 39.84 8.96 26.90 3.98 39.84
Total 2923.86 1376.24 1002.91 544.71 2923.86

Note-42 Capital Risk Management:

The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the nancial covenants. The Group’s primary objective when managing capital is to ensure that it maintains an efcient capital
structure and healthy capital ratios and safeguard the Group’s ability to continue as a going concern in order to support its
business and provide maximum returns for shareholders. The Group also proposes to maintain an optimal structure to reduce the
cost of capital.
For the purpose of the Group’s capital management, capital includes issued capital, securities premium and all other equity
reserves. Net debt includes, interest bearing loans and borrowings less cash and short term deposits.
` in Crore (10 Million)

Particulars As at As at
31st March 2023 31st March 2022
Borrowings 1846.31 1856.53
Less: Cash and Cash equivalents (Including Current Investments &
Other Bank balances) 850.40 1209.92
Net Debt 995.91 646.61
Equity Share Capital 58.85 58.85
Other Equity 2745.01 2446.30
Total Capital 2803.86 2505.15
Capital and Net Debt 3799.77 3151.76
Gearing Ratio 26.21% 20.52%

The Group monitors capital using a gearing ratio, which is Net Debt divided by Total Capital plus Net Debt. Net Debt is
calculated as total borrowings including short term and current maturities of long term debt. No changes were made in
the objectives, policies or processes for managing capital during the years ended March 31, 2023 and March 31, 2022.

258 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Note-43 Fair Value of Financial Assets and Liabilities:

Set out below, is a comparison by class of the carrying amounts and fair value of the nancial instruments of the companies: -

31st March 2023 31st March 2022

Particulars Carrying Fair Carrying Fair
Amount Value Amount Value
A. Financial Assets
(i) At Fair Value through Prot and Loss :-
Investments
- Equity Shares 2.10 2.10 2.10 2.10
- Mutual Funds 135.67 135.67 504.94 504.94
- NCD’s & others 375.77 375.77 131.99 131.99
- Preference Shares 12.95 12.95 12.95 12.95
Total (i) 526.49 526.49 651.98 651.98
(ii) At Amortized Cost :-
a) Bank FDs. 325.28 325.28 527.57 527.57
b) Cash & Bank Balances 54.44 54.44 48.19 48.19
c) Trade Receivables 65.42 65.42 35.20 35.20
d) Loans 20.65 20.65 43.04 43.04
e) Others 70.74 70.74 53.19 53.19
Total (ii) 536.53 536.53 707.19 707.19
Total (A) 1063.02 1063.02 1359.17 1359.17
B. Financial Liabilities
(i) At Amortized Cost
- Borrowings 1846.31 1846.31 1856.53 1856.53
- Trade Payables 586.01 586.01 365.99 365.99
- Other Financial Liabilities 704.56 704.56 643.84 643.84
Total (B) 3136.88 3136.88 2866.36 2866.36

Fair Valuation Techniques:

The Group maintains policies and procedures to value Financial Assets & Financial Liabilities using the best and most relevant data
available. The Fair Values of the Financial Assets and Liabilities are included at the amount that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following
methods and assumptions were used to estimate the fair values:-
1. Fair Value of cash and deposits, trade receivables, trade payables, and other current nancial assets and liabilities
approximate their carrying amounts largely due to the short-term maturities of these instruments.
2. Other non-current receivables are evaluated by the Group, based on parameters such as interest rates, individual
creditworthiness of the counterparty etc. Based on this evaluation, allowances are considered to account for the expected
losses of these receivables. As at end of each reporting year, the carrying amounts of such receivables, net of allowances (if
any), are not materially different from their calculated fair values.
3. Fair value of Investments in quoted mutual funds and equity shares are based on quoted market price at the reporting date.
The fair value of unquoted Investments in preference shares are estimated by discounting future cash ows using rates
currently available for debt on similar terms, credit risk and remaining maturities. The fair value of unquoted Investments in
equity shares are estimated on net assets basis.
4. Fair value of borrowings from banks and other non-current nancial liabilities, are estimated by discounting future cash
ows using rates currently available for debt on similar terms and remaining maturities.
5. The fair values of derivatives are calculated using the RBI reference rate as on the reporting date as well as other variable
parameters.

INTEGRATED ANNUAL REPORT 2022-23 259

JK Lakshmi Cement Limited
Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Fair Value Hierarchy:

The following Table provides the fair value measurement hierarchy of Group’s asset and liabilities, grouped into Level 1 to
Level 3 as described below:
i. Level 1: Quoted prices in active markets.
ii. Level 2: Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.
iii. Level 3: Inputs that are not based on observable market data.
The following Table provides the Fair Value measurement hierarchy of Group’s asset and liabilities, grouped into Level 1 to
Level 2 as described below:
(A) Financial Assets ` in Crore (10 Million)
Particulars Level 1 Level 2 Level 3
As at 31st March’2023
Financial Assets at FVTPL
- Unquoted Equity Shares - - 2.10
- Unquoted Preference Shares - - 12.95
- Mutual Funds 135.67 - -
- NCD and others - 375.77 -
Total Financial Assets 135.67 375.77 15.05
` in Crore (10 Million)
Particulars Level 1 Level 2 Level 3
As at 31st March’2022
Financial Assets at FVTPL
- Unquoted Equity Shares - - 2.10
- Unquoted Preference Shares - - 12.95
- Mutual Funds 504.94 - -
- NCD and others - 131.99 -
Total Financial Assets 504.94 131.99 15.05
There have been no transfers between Level 1 and Level 2 during the year ended March 31, 2023.

Note-44 Segment Information:

The Group is engaged primarily into manufacturing of Cement. The Group has only one business segment as identied by
management namely Cementious Materials. Segments have been identied taking into account nature of product and
differential risk and returns of the segment. The business segments are reviewed by the VC&MD of the Parent Company (Chief
Operating Decision Maker).
Information about major customers
There are no revenues from transactions with a single external customer amounting to 10 per cent or more of a Group’s revenues
during the current and previous year.

Note-45 Deferred Revenue:

` in Crore (10 Million)
Particulars As at As at
March 31 2023 March 31 2022
Opening 13.10 14.95
Deferred during the year - 3.82
Released to prot and loss (5.68) (5.67)
Closing 7.42 13.10
Current 5.67 5.67
Non-Current 1.75 7.43

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JK Lakshmi Cement Limited

Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Note-46 Income Tax Expense:

i. Amount recognized in Statement of Prot and Loss :- ` in Crore (10 Million)
Particulars 2022-23 2021-22
A. Current Tax
Current Tax 147.86 144.30
Adjustments in respect of current income tax of previous year 0.63 29.53
Total A 148.49 173.83
B. Deferred Tax
Relating to origination and reversal of temporary difference 16.88 (25.07)
MAT Credit Entitlements - -
Total Deferred Tax Assets (net) 16.88 (25.07)
Total Tax Expense (A + B) 165.37 148.76
ii. Deferred Tax recognized in Other Comprehensive Income (OCI): ` in Crore (10 Million)
Particulars 2022-23 2021-22
Deferred Tax (Gain)/Loss on dened benet (0.55) (4.74)

iii. Reconciliation of Effective Tax Rate. ` in Crore (10 Million)

Particulars 2022-23 2021-22
Accounting Prot/(Loss) before Income Tax 534.50 626.34
At Applicable Statutory Income Tax Rate 25.17%-34.94% 25.17%-34.94%
Computed Income Tax Expense/(Income) 182.92 212.22
Increase/(Reduction) in taxes on account of :-
Income not taxable (16.16) (16.84)
R & D u/s- 35(2AB) of Income Tax - -
Deferred Tax related to Property, Plant & Equipment & Others 14.62 16.15
Previous Year Tax Adjustments 0.63 29.53
Income not taxable during tax holiday period (14.19) (18.24)
Provision for impairment not considered deductible - -
Tax on which deduction is not admissible 9.55 14.30
Reversal of deferred tax liability on account of change in tax rate@ (12.00) (88.60)
Income Tax on Capital Gain - 0.24
Income Tax Expense/(Income) Reported to the Statement of Prot & Loss 165.37 148.76
@ The Government of India has inserted a New Section 115 BAA in the Income Tax Act, 1961 which provides an option to
the Parent Company for paying Income Tax at reduced rates, subject to certain conditions. The Parent Company is continuing
to provide for Income Tax at Higher Old Rates, based on available MAT Credit Entitlement & various available exemptions /
deductions. However, the Parent Company has applied the Lower Income Tax Rates on Deferred Tax Assets / Liabilities to the
extent there are expected to be realized or settled in future when the Company may be subjected to Lower Tax Rate and
accordingly during the Year ended 31st March 2023, the Parent Company has reversed the Deferred Tax Liability of ` 12 Crore
(Previous Year ` 88.60 Crore).
iv. Reconciliation of Deferred Tax Liabilities (Net) ` in Crore (10 Million)
st
Particulars As at 31 March 2023 As at 31st March 2022
Opening Balance (53.05) (6.78)
Deferred Tax recognized in Statement of Prot and Loss (16.88) 25.07
Other Comprehensive Income 0.55 4.74
Previous year adjustment (0.63) (29.53)
MAT Credit utilization (62.64) (46.55)
Closing Balance (132.66) (53.05)

INTEGRATED ANNUAL REPORT 2022-23 261

JK Lakshmi Cement Limited
Notes to Consolidated Financial Statements for the Year ended March 31, 2023

v. Deferred Tax:
Deferred Tax relates to the followings: ` in Crore (10 Million)
Particulars 2022-23 2021-22
Deferred Tax Assets Related to:-
Brought Forward Losses Setoff (8.70) (11.87)
Disallowances/Allowances Under Income Tax 0.41 (14.02)
Others 0.05 2.67
MAT Credit Entitlement - -
Total Deferred Tax Assets (8.24) (23.22)
Deferred Tax Liabilities Related to:-
Property, Plant and Equipment (8.87) 65.03
Others 0.78 (12.00)
Total Deferred Tax Liabilities (8.09) 53.03
Net Total Movement in Statement of Prot & Loss (16.33) 29.81
Movement in Statement of Prot & Loss (16.88) (25.07)
Movement in OCI (0.55) 4.74

Note-47 Dividends:
The following dividends were declared and paid by the Parent Company during the year:- ` in Crore (10 Million)

Particulars 2022-23 2021-22

Final Dividend
For the year ended 31st March’2022 – 100% i.e.` 5.00 per equity 58.84 44.13
share (31st March’2021 – 75% i.e. ` 3.75 per equity share)
Total 58.84 44.13
th
The following dividends were proposed by the board of directors in their meeting held on 19 May 2023, subject to approval
of shareholders at Annual General Meeting and are not recognized as liability.
` in Crore (10 Million)
Particulars 2022-23 2021-22
For the year ended 31st March’2023 75% i.e. ` 3.75 per equity share 44.13 58.84
(31st March’2022- 100% i.e.` 5.00 per equity share)

Note-48 Amount paid to Auditors

` in Crore (10 Million)
S. No Particulars 2022-23 2021-22
A Statutory Auditor
Statutory audit fee 0.24 0.24
Tax audit fee 0.05 0.05
Limited review fee, GST audit fee & other services 0.08 0.16
Reimbursement of Expenses 0.02 0.02
B Total (A) 0.39 0.47
C Cost Auditors
Audit Fee 0.02 0.02

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JK Lakshmi Cement Limited

Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Note-49 Retirement Benet Obligations:

A. Expenses Recognised for Dened Contribution Plan. ` in Crore (10 Million)
Particulars 2022-23 2021-22
Company's Contribution to Provident Fund 17.51 16.20
Company's Contribution to ESI 0.53 0.43
Company's Contribution to Superannuation Fund 1.16 1.13
Total 19.20 17.76

B Dened Contribution Plan - Provident Fund ` in Crore (10 Million)

Particulars 2022-23
Present Value of Obligation 140.77
Fair value of Plan Assets 132.34
Net Assets/(Liability) recognised in Balance Sheet as Provision (8.43)

C Dened Benet Plans

Below tables sets forth the changes in the projected benet obligation and plan assets and amounts recognised in the
Consolidated Balance Sheet as at March 31, 2023 and March 31, 2022, being the respective measurement dates:

1 Change in Present Value of Dened Benet Obligation during the year ` in Crore (10 Million)
Particulars Gratuity (Funded) Leave Encashment
(Unfunded)
Present Value of obligation as on 1st April'21 65.39 17.20
Current Service Cost 4.28 1.74
Interest Cost 4.26 1.12
Benets Paid (19.36) (6.72)
Remeasurement - actuarial loss / (gain) 12.73 1.48
Present Value of obligation as on 31st March'22 67.30 14.82
Present Value of obligation as on 1st April'22 67.30 14.82
Current Service Cost 4.44 2.58
Interest Cost 4.38 0.96
Benets Paid (13.66) (6.41)
Remeasurement - actuarial loss / (gain) 1.23 7.16
Present Value of obligation as on 31st March'23 63.69 19.11

2 Change in Fair Value of Plan Assets - Gratuity ` in Crore (10 Million)

Particulars 2022-23 2021-22
Fair Value of plan assets at beginning of year 56.40 76.82
Expected Return on plan assets 3.67 4.99
Employer contributions 23.59 (5.14)
Benet paid (13.66) (19.36)
Actuarial gain / (loss) (0.63) (0.91)
Fair Value of plan assets at end of year 69.37 56.40
Present Value of Obligation 63.69 67.30
Net funded status of plan (5.68) 10.90
Actual Return on plan assets 3.04 4.08

INTEGRATED ANNUAL REPORT 2022-23 263

JK Lakshmi Cement Limited
Notes to Consolidated Financial Statements for the Year ended March 31, 2023

3 Expenses recognised in Statement of Prot and Loss ` in Crore (10 Million)

Particulars Gratuity (Funded) Leave Encashment
(Unfunded)
Current Service Cost 4.28 1.74
Interest cost 4.26 1.12
Expected return plan assets (4.99) -
Remeasurement - actuarial loss / (gain) - 1.48
For the year ended 31st March'22 3.55 4.34
Actual return on plan assets 4.08 -
Current Service Cost 4.44 2.58
Interest cost 4.38 0.96
Expected return plan assets (3.67) -
Remeasurement - actuarial loss / (gain) - 7.16
For the year ended 31st March'23 5.15 10.70
Actual return on plan assets 3.04 -

4 Recognised in Other Comprehensive Income ` in Crore (10 Million)

Particulars Gratuity
Remeasurement - Actuarial loss/(gain) 13.63
For the year ended 31st March'22
Remeasurement - Actuarial loss/(gain) 1.85
For the year ended 31st March'23

5 The Principal actuarial assumptions used for estimating the Group's Dened Obligations are set out below :-
Weighted Average Actuarial Assumptions As at 31st March'23 As at 31st March'22
Attrition Rate
Discount Rate 7.00% 6.50%
Expected Rate of increase in salary 5.5% - 7.00% 5.50%
Expected Rate of Return on Plan Assets 6.50% 6.50%
Mortality Rate 100% of IALM (2012--14) 100% of IALM (2012--14)
Expected Average remaining working lives of employees (years) 15.84 to 20.13 16.11
The assumption of future salary increase takes into account the ination, seniority, promotion and other relevant factors
such as supply and demand in employment market.
6 Sensitivity analysis ` in Crore (10 Million)
Particulars Change in Increase/(Decrease)
assumption in obligation
Gratuity :-
For the year ended 31st March'22
Discount rate 0.50% (1.79)
-0.50% 1.94
Salary growth rate 0.50% 1.93
-0.50% (1.80)
For the year ended 31st March'23
Discount rate 0.50% (1.90)
-0.50% 2.04
Salary growth rate 0.50% 2.06
-0.50% (1.93)

264 JK Lakshmi Cement Ltd.

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JK Lakshmi Cement Limited

Notes to Consolidated Financial Statements for the Year ended March 31, 2023
` in Crore (10 Million)
Particulars Change in Increase/(Decrease)
assumption in obligation
Leave Encashment :-
For the year ended 31st March'22
Discount rate 0.50% (0.59)
-0.50% 0.64
Salary growth rate 0.50% 0.64
-0.50% (0.59)
For the year ended 31st March'23
Discount rate 0.50% (0.89)
-0.50% 0.97
Salary growth rate 0.50% 0.97
-0.50% (0.90)
Sensitivities due to mortality & withdrawals are not material & hence imapct of change not calculated.
7 History of experience adjustments is as follows ` in Crore (10 Million)
Particulars Gratuity
For the year ended 31st March'2022
Plan liabilities - loss/(gain) 12.73
Plan assets - gain/(loss) (0.91)
For the year ended 31st March'2023
Plan liabilities - loss/(gain) 0.67
Plan assets - gain/(loss) (0.63)
Estimate of expected benet payments ` in Crore (10 Million)
Particulars Gratuity Leave Encashment
April'2023 - March'2024 22.60 3.81
April'2024 - March'2025 4.02 0.79
April'2025 - March'2026 3.14 0.65
April'2026 - March'2027 2.99 0.59
April'2027 - March'2028 2.90 0.68
April'2028 - March'2029 2.55 0.62
April'2029 onwards 25.51 8.49
Total 63.71 15.63
8 Statement of Employee benet provision ` in Crore (10 Million)
Particulars 2022-23 2021-22
Gratuity 11.25 21.22
Leave Encashment 12.80 6.11
Superannuation 1.09 1.04
Total 25.14 28.37
9 Current and Non-Current provision for Gratuity and Leave Encashment
The following table sets out the funded status of the plan and the amounts recognised in the Group's Balance Sheet.
` in Crore (10 Million)
Particulars Gratuity (Funded) Leave Encashment
(Unfunded)
For the year ended 31st March'2022
Current 11.65 4.77
Non current 4.01 10.05
For the year ended 31st March'2023
Current (6.28) 4.13
Non current 5.49 14.97

INTEGRATED ANNUAL REPORT 2022-23 265

JK Lakshmi Cement Limited
Notes to Consolidated Financial Statements for the Year ended March 31, 2023

10 Employee benet expense ` in Crore (10 Million)

Particulars 2022-23 2021-22
Salary and Wages 325.09 309.83
Costs-dened benet plan 5.16 3.65
Costs-dened contribution plan 19.20 17.24
Welfare expense 38.27 32.10
Total 387.72 362.82

OCI presentation of dened benet plan

Gratuity is in the nature of dened benet plan, Re-measurement gains/(losses) on dened benet plans is shown under
OCI as Items that will not be reclassied to prot or loss and also the income tax effect on the same.
Presentation in Statement of Prot & Loss and Balance Sheet
Expense for service cost, net interest on net dened benet liability (asset) is charged to Statement of Prot & Loss. IND AS 19
does not require segregation of provision in current and non-current, however net dened liability (Assets) is shown as
current and non-current provision in balance sheet as per IND AS 1.
Actuarial liability for short term benets (leave encashment cost) is shown as current and non-current provision in balance sheet.
When there is surplus in dened benet plan, company is required to measure the net dened benet asset at the lower of;
the surplus in the dened benet plan and the assets ceiling, determined using the discount rate specied, i.e. market yield at
the end of the reporting period on Government bonds, this is applicable for domestic companies, foreign company can use
corporate bonds rate.
The Company assesses these assumptions with its projected long-term plans of growth and prevalent industry standards.
The mortality rates used are as published by one of the leading life insurance companies in India.

Capital work in progress includes machinery in stock, construction / erection materials and also
Note-50
include the following pre -operation expenses pending allocation.
` in Crore (10 Million)
2022-23 2021-22
Raw Material Consumed 4.11 -
Stores and Spares 0.51 -
Repair & Maintenance 0.95 -
Power & Fuel 2.24 0.41
Salaries and Wages 5.80 1.97
Staff Welfare expenses 0.03 0.02
Insurance 0.69 0.27
Transport ,Clearing and Forwarding Charges 1.67 0.97
Travelling, Consultancy & Miscellaneous Expenses 0.20 -
Finance costs 31.21 2.99
47.41 6.63
Less: Sale 5.94 -
Increase in Stock 0.20 -
41.27 6.63
Add : Expenditure upto previous year 4.06 2.11
Less: Transferred to Property, Plant & Equipment 1.99 4.68
43.34 4.06

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JK Lakshmi Cement Limited

Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Note-51 Expenses charged to cost of material consumed

` in Crore (10 Million)
2022-23 2021-22
Salaries & Wages 7.78 6.44
Contribution to Provident and Other Funds 0.53 0.48
Employees' Welfare Expenses 1.00 0.85
Consumption of Stores and Spares 58.32 47.11
Power & Fuel 11.51 10.09
Repairs to Machinery 4.52 3.90
Material Handing 136.82 130.59
Insurance 0.11 0.15
Rates and Taxes 26.14 25.64
Royalty 101.34 99.42
Miscellaneous Expenses 2.05 2.18
Total 350.12 326.85

Note-52 Estimated amount of contracts remaining to be executed on capital account (Net of Advances) ` 392.73 crore
(previous year ` 438.36 crore).
Note-53 Contingent liabilities in respect of claims not accepted by the Group (matters in appeals) and not provided for are as
follows :
` in Crore (10 Million)
March 31, 2023 March 31, 2022
a) Service tax 6.64 6.64
b) Sale tax and interest 36.51 93.94
c) Income tax 44.16 5.78
d) Excise duty 1.77 1.83
e) Other matters 21.46 14.18
Total 110.54 122.37

Note-54 In respect of certain disallowances and additions made by the Income Tax Authorities, Appeals are pending before the
Appellate Authorities and adjustment, if any, will be made after the same are nally settled.
Note-55 Contingent liability for non-use of jute bags for Cement packing upto 30th June, 1997, as per Jute Packaging
Materials (Compulsory use of Packaging Commodities) Act, 1987 is not ascertained and the matter is subjudice. The
Government has excluded Cement Industry from application of the said Order from 1st July, 1997.
Note-56 Competition Commission of India (CCI) vide its Order dated 19th Jan, 2017 has imposed penalty on certain Cement
Companies including a Penalty of ₹ 6.55 crore on the Parent Company pursuant to a reference led by the
Government of Haryana. The Parent Company has led an appeal with Competition Appellate Tribunal (COMPAT)
against the said Order. COMPAT has since granted a stay on CCI Order. After the merger of COMPAT with National
Company Law Appellate Tribunal (NCLAT), the Parent Company’s case also stands transferred to NCLAT.
Although based on legal opinion, the Parent Company believes that it has a good case but out of abundant caution
the Parent Company had provided full amount in earlier years.

INTEGRATED ANNUAL REPORT 2022-23 267

JK Lakshmi Cement Limited
Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Note-57 a) Disclosure in respect of Corporate Social Responsibility Expenditure: ` in Crore (10 Million)

Particulars 2022-23 2021-22

Amount required to be spent by the company during the year. 10.35 6.31
Amount of expenditure incurred:-
JK Lakshmi Arogya Project (Health) 0.83 1.20
JK Lakshmi Vidya Project (Education) 1.62 0.60
JK Lakshmi Aajivika Project (Livelihood) 4.56 0.48
JKLakshmi Kaushal Parshikshan Project (Skill Development) 0.03 0.02
JK Lakshmi Swajal & Swachhta Project (Water & Sanitation) 0.82 0.56
JK Lakshmi Gramin Vikas Project (Rural Development) 0.31 1.67
UCWL Aarogya Project 0.27 0.06
UCWL Vidya Project 0.15 0.02
UCWL Aajivika Project 0.18 0.05
UCWL Kaushal Parshikshan Project 0.12 -
UCWL Swajal & Swachhta Project 0.09 -
UCWL Gramin Vikas Project 0.13 0.04
Overhead Expenditure 0.24 0.16
Total 10.35 6.31
Shortfall at the end of year Nil 1.45
Total of previous years shortfall 1.23 1.45

Reason for Shortfall - On account of Ongoing Projects and Deposited in a Separate Bank Account.
b) foreign exchange uctuation of gain (net) ` 1.30 crore (previous year gain (net) ` 4.56 crore).

Note-58 Derivative Financial Instruments

The Company uses foreign currency denominated borrowings and foreign exchange forward contracts (including option
contracts - seagull structure) to manage some of its transaction exposures. The foreign exchange forward contracts and
foreign exchange option contracts are not designated as cash ow hedges and are entered into for periods consistent
with foreign currency exposure of the underlying transactions, generally from one to thirty six months.
Foreign Currency Risk
The Company has entered into foreign exchange forward contracts and foreign exchange option contracts with the
intention to reduce the foreign exchange risk on repayment of buyer’s credit and foreign currency loan, these
contracts are not designated in hedge relationships and are measured at fair value through prot or loss.
Forward & Option Contract outstanding for the purpose of hedging at the Balance Sheet Date

S. No. Foreign Currency As at March 31, 2023 As at March 31, 2022

F CY Amount F CY Amount
(` Crore) (` Crore)
Forward
1 USD 8.78 Mn 73.58 0.61 Mn 4.64
2 Euro Nil Nil 1.86 Mn 15.94
Option
1 USD 11.76 Mn 97.79 Nil Nil

268 JK Lakshmi Cement Ltd.

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JK Lakshmi Cement Limited

Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Foreign Currency Exposure not hedged as at the Balance Sheet Date

S. No. Foreign Currency As at March 31, 2023 As at March 31, 2022
F CY Amount F CY Amount
(` Crore) (` Crore)
1 USD
Euro 21.50 Mn 176.69 25.00 Mn 189.48

Note-59 Based on information available with the Group in respect of MSME (‘The Micro Small & Medium Enterprises
Development Act 2006’). The details are as under:
` in Crore (10 Million)
2022-23 2021-22
i) Principal and Interest amount due and remaining unpaid as at 31st March 2023. 19.00 10.74
ii) Interest paid in terms of section 16 of the MSME Act during the year Nil
(previous year - Nil). - -
iii) The amount of Interest due and payable for the period of delay in making payment
(which have been paid but beyond the appointed day during the year) but without - -
adding the interest specied – Nil (previous year - Nil).
iv) Payment made beyond the appointed day during the year Nil (previous year - Nil). - -
v) Interest Accrued and unpaid as at 31st March 2023 Nil (previous year - Nil). - -

Note-60 The Holding Company has given Corporate Guarantee to the Bankers of Udaipur Cement Works Limited (UCWL),
a 72.54% subsidiary of the Company for collaterally securing for the following facilities granted by Banks to UCWL
(i) The Term Loans aggregating to `1289.79 Crore (Outstanding as on 31.3.2023 is ` 652.13 Crore) (Previous Year
: ` 565 Crore - Outstanding ` 506.27 Crore) and
(ii) The Working Capital Facilities of ` 50.00 Crore (Previous Year : ` 50.00 Crore )
The Company has received a Counter Indemnity of ` 1339.79 Crore from UCWL against above Corporate Guarantee
given by the Company
The Company has also given Corporate Guarantee to the Trustee of Guaranteed Rated Listed Redeemable Non
Convertible Debentures of ` 350.00 Crore (Outstanding as on 31.3.2023 is ` 350.00 Crore) (Previous Year : Unlisted
Redeemable Non Convertible Debentures of ` 350.00 Crore (Outstanding as on 31.3.2022 is ` 350.00 Crore)) issued
on Private Placement Basis by its Subsidiary Udaipur Cement Works Ltd. (UCWL). The Company has received a Counter
Indemnity of ` 350.00 Crore from UCWL against this Corporate Guarantee.
Note-61 Hansdeep Industries and Trading Company Ltd,(HITCL) the wholly owned subsidiary of the company (JKLC) has been
declared as Preferred Bidder for one of Limestone Block 4GIIA located at Dist. Nagaur, Rajasthan by Directorate of
Mines & Geology Department, Udaipur. As per the terms of allotment the HITCL has to make total payments of
` 43.21 Crore. The HITCL has made the payment of ` 8.65 Crore upto 31st March,2023.
This Limestone Mines would be transferred by HITCL to JKLC at some stage, in future, after obtaining requisite
approval from the Government of Rajasthan.
Note-62 a) Loans and Advances pursuant to regulation 23(3) read with schedule of the SEBI (Listing Obligation and
Disclosure Requirements) Regulation 2015
An amount of ` 6.67 crore (including ` 3.33 crore receivable within one year) (previous year ` 10.00 crore)
(maximum balance due ` 10.00 crore, previous year ` 13.34 crore) due from BACL and arising out of an earlier
scheme of reconstruction, arrangement and demerger sanctioned by Hon’ble High Courts of Rajasthan
(Jodhpur) and Delhi.
(Loans / Advances to employees as per Company’s policy are not considered.)
b) Loans given as per regulation 34 (3) and 53(f) read with schedule v of SEBI (LODR) regulation of listing
regulation of listing regulation with stock exchanges.

INTEGRATED ANNUAL REPORT 2022-23 269

JK Lakshmi Cement Limited
Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Loan given to Udaipur Cement Works Limited is nil (previous year ` 10 crore). Maximum balance outstanding
during the year is ` 10 crore. ICD given to Bengal & Assam Company Limited is nil crore (previous year ` 10
crore) Maximum balance outstanding during the year is ` 10 crore (previous year ` 40 crore)
c) Disclosure of transaction in pursuant to regulation 34(3) read with schedule V, part A, clause 2 of the SEBI
(Listing Obligation and Disclosure Requirements) Regulation 2015, with promoter/promoter group companies
holding more than 10% of equity share capital of the Company.
Name of Company Nature of transaction and amount
Bengal & Assam Company Limited Refer note 63
d) Details of loans given, investments made and guarantee given covered u/s 186(4) of the Companies Act 2013.
The company has given loan to Subsidiary, Udaipur Cement Works Ltd (UCWL) amounting to ` 85.40 Crore
(Previous year ` 10 Crore for general business purpose) against the proposed right issue by the Udaipur Cement
Works Ltd. The Company has also given Corporate guarantee of ` 1052.13 Crore to the Bank for a long
term loan and working capital facility availed by its Subsidiary, Udaipur Cement Works Ltd (Previous Year
` 906.27 Crore).
e) With respect to subsidiary UCWL;
a) The liabilities pertaining to the statutory levies and pending legal cases prior to 01.12.1993 (date of takeover of
the cement undertaking from Bajaj Hindustan Limited) will be borne by Bajaj Hindustan Limited.
b) UCWL has opted for the fair value of Property Plant and Equipment on the date of transition to IND AS.
However, to be in line with the Accounting Policy of parent Company, the Company has considered the
nancial statements of UCWL without considering the fair value adjustments in consolidated nancial
statements.
f) Details of Materials Non-Controlling Interest.
Summarized nancial information of UCWL, which has material non-controlling interest: ` in Crore (10 Million)

Particulars As at As at
31st March’23 31st March’22
Assets
Non-Current Assets 1496.73 892.74
Current Assets 199.65 434.58
Liabilities
Non-current Liabilities 1159.67 659.42
Current Liabilities 401.88 570.53
Equity 134.83 97.37
Percentage of Ownership held by Non-controlling Interest 27.46% 27.46%
Accumulated Non controlling Interest 37.02 26.74
Revenue 1032.26 881.10
Net Prot/(Loss) after tax 38.20 51.00
Other Comprehensive Income (net of tax) (0.76) (0.23)
Total Comprehensive Income 37.44 50.77
Total Comprehensive Income allocated to
Non controlling interests 10.28 13.94
Net Cash Inow/(Outow) from Operating Activities 99.41 146.70
Net Cash Inow/(Outow) from Investing Activities (500.42) (243.90)
Net Cash Inow/(Outow) from Financing Activities 171.12 322.35
Net Cash Inow / (Outow) (229.89) 225.15

270 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Consolidated Financial Statements for the Year ended March 31, 2023

g) The summarized aggregate nancial information of associates as follows:- ` in Crore (10 Million)

Particulars As at 31.03.2023 As at 31.03.2022

Carrying Amount of Interest in Associates 13.00 13.01
- Share in Prot /(Loss) (0.02) (0.04)
- Share in Total Comprehensive Income/(Loss) (0.02) (0.04)
- Dividend Received - -

h) Additional information pursuant to Schedule III of Companies Act, 2013 on Consolidated Statement.
For the FY 2022-23
Name of Company Net Assets (TA-TL) Share in Total
Comprehensive Income
As % of Amount As % of Amount
Consolidated ` In Crore Consolidated ` In Crore
Net Assets Total
Comprehensive
Income
Holding Company :-
JK Lakshmi Cement Ltd. 97.14% 2723.74 92.36% 330.23
Subsidiary Company:-
Udaipur Cement Works Ltd. 8.80% 246.85 10.47% 37.44
Hansdeep Industries & Trading Company Ltd. 4.15% 116.45 0.00% -0.01
Ram Kanta Properties P. Ltd. 4.12% 115.60 0.05% 0.18
Non Controlling Interest (1.32%) (37.02) (2.88%) (10.28)
Associates :-
Dwarkesh Energy Ltd. (0.00%) (0.02)
Total Elimination (12.90%) (361.75)
Total 100% 2803.86 100% 357.53

For the FY 2021-22

Name of Company Net Assets (TA-TL) Share in Total
Comprehensive Income
As % of Amount As % of Amount
Consolidated ` In Crore Consolidated ` In Crore
Net Assets Total
Comprehensive
Income
Holding Company :-
JK Lakshmi Cement Ltd. 97.89% 2452.35 91.82% 417.56
Subsidiary Company:-
Udaipur Cement Works Ltd. 7.71% 193.26 11.17% 50.78
Hansdeep Industries & Trading Company Ltd. 4.65% 116.45 0.05% 0.21
Ram Kanta Properties P. Ltd. 4.61% 115.41 0.04% 0.17
Non Controlling Interest (1.07%) (26.74) (3.07%) (13.94)
Associates :-
Dwarkesh Energy Ltd. (0.01%) (0.04)
Total Elimination (13.80%) (345.59) - -
Total 100% 2505.15 100% 454.75

INTEGRATED ANNUAL REPORT 2022-23 271

JK Lakshmi Cement Limited
Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Note-63 Related Party Disclosure

List of Related Parties
I Associates
Dwarkesh Energy Ltd.
II Key Management Personnels (KMPs)
Shri Bharat Hari Singhania Chairman
Smt. Vinita Singhania Vice Chairman & Managing Director
Shri S.K. Wali (Ceased to be Whole-time director w.e.f. 1st August'22) Whole-time Director
Dr. S. Chouksey (Ceased to be Whole-time director w.e.f. 1st August'22) Whole-time Director
Shri Arun Kumar Shukla (w.e.f. 1st August'22) President and Director
Shri B.V. Bhargava (Ceased to be director w.e.f. 31st August'22) Independent & Non Executive Director
Ms. Bhaswati Mukharjee Independent & Non Executive Director
Shri N.G. Khaitan Independent & Non Executive Director
Dr. K.N. Memani (Ceased to be director w.e.f. 26th April'22) Independent & Non Executive Director
Dr. Raghupati Singhania Non Independent & Non Executive Director
Shri Ravi Jhunjhunwala Independent & Non Executive Director
Shri Sadhu Ram Bansal (w.e.f. 1st July'22) Independent & Non Executive Director
Shri Sudhir A Bidkar Chief Financial Ofcer
Shri Brijesh K Daga (Ceased w.e.f. 1st September'22) Sr. VP & Company Secretary
Shri Amit Chaurasia (w.e.f. 1st September'22) GM & Company Secretary
III Enterprise which holds more than 20% of Equity share
Bengal & Assam Company Ltd. (BACL)
IV Trusts under common control
JK Lakshmi Cement Ltd. Compulsory Employees Provident Fund
JK Lakshmi Cement Ltd. Ofcers Superannuation Fund
JK Lakshmi Cement Ltd. Employees Gratuity Fund
JK Udaipur Udyog Ltd. Employees Provident Fund Trust
JK Udaipur Udyog Ltd. Ofcers' Superannuation Fund Trust
JK Udaipur Udyog Ltd. Employees' Group Gratuity Fund Trust

The following transactions were carried out with related parties in the ordinary course of business :
i) ` in Crore (10 Million)
Nature of Transactions Associates Enterprise Trust under Associates Enterprise Trust
which holds common which holds under
more than control more than common
20% of Equity 20% of Equity control
Share Share
2022-23 2021-22
- Sharing of Expenses received 0.02 0.09 - - 0.07 -
- Payment of Expenses - 2.66 - - 2.12 -
- Other Income - 0.36 - - 2.49 -
- ICD given - - - - - -
- Dividend Paid - - - -
- Advances Received back - 3.33 - - 3.33 -
- ICD received back 10.00 30.00
- Contribution - - 12.73 - - 7.57
Outstanding as at year end:
- Loan Receivable 5.65 18.04
- EPF (Contribution Payable) (0.14) (1.58)
- SF (Contribution Payable)/Advance
Receivable (1.09) 0.67
- GF (Contribution Payable)/Advance
Receivable 6.78 (10.76)
- Receivable / (Payable): - -

272 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Consolidated Financial Statements for the Year ended March 31, 2023
` in Crore (10 Million)
ii) Remuneration Paid to KMPs 2022-23 2021-22
Short Term Employee benets 32.04 50.51
Post Employment benets* 32.04 12.32
Other Payments 4.10 2.00
Receivable/(Payable) : (12.58) (27.68)
*As the liability for gratuity and leave encashment are provided on actuarial basis for the company as a whole and payment is
made on actual basis.
The transactions with related parties have been made on terms equivalent to those that prevail in arm's length transactions.

Note-64 JK Lakshmi Cement Ltd., parent Company is listed on Stock Exchanges (BSE/NSE) in India. Parent Company has
prepared standalone nancial statement as required under Companies Act, 2013 and listing requirements. The
standalone nancial statement is available on Parent’s website for public issue.
Note-65 Impairment review :
Assets are tested for impairment whenever there are any internal or external indicators of impairment. Impairment
test is performed at the level of each Cash Generating Unit (‘CGU’) or groups of CGUs within the Company at which
the assets are monitored for internal management purposes, within an operating segment. The impairment
assessment is based on higher of value in use and value from sale calculations. During the year, the testing did not
result in any impairment in the carrying amount of other assets. The measurement of the cash generating units’ value
in use is determined based on nancial plans that have been used by management for internal purposes. The
planning horizon reects the assumptions for short to- mid-term market conditions
Key assumptions used in value-in-use calculations are:-
(i) Operating margins (Earnings before interest and taxes),
(ii) Discount Rate,
(iii) Growth Rates and (iv) Capital Expenditure
Note-66 Events occurring after the Balance Sheet date
No adjusting or signicant non-adjusting events have occurred between the reporting date and date of authorization
of these nancial statements
Note-67 Ind AS 115 disclosures

Sl. No. Particulars 2022-23 2021-22

1 Contract Balances
Trade Receivables ( Refer Note No. 12) 65.42 35.20
Contract Liabilites ( Refer Note No. 29) 93.88 97.84
2 Reconciling the amount of revenue recognised during the year
in the statement of prot and loss with the contracted price:
Revenue as per contract prices 6831.66 5759.722
Discounts -380.46 -342.096
Revenue from contract with customer (Refer Note No. 32) 6451.20 5417.63
3 Revenue recognised that was included in the contract liability
balance at the beginning of the period
Sale of Goods 97.84 95.85

INTEGRATED ANNUAL REPORT 2022-23 273

JK Lakshmi Cement Limited
Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Note-68 I. Exceptional Item of Nil (previous year ` 23.39 Crores), pertaining to Parent Company includes:
a. Impairment of Nil (previous year ` 36.65 Crores )in the Carrying Cost of an Asset under construction at
Parent Company’s Cement Plant at Durg.
b. Provision of Nil (previous year ` 64.42 Crore)made for matters under sub-judice
c. Net of the Provision Nil (previous year ` 75.68 Crores) Written back for the matters under sub-judice settled
during the Year.
II Exceptional Item of Nil (previous year ` 3.60 Crore )pertaining to Subsidiary Company includes;
a. RIPS Benet of Nil (previous year ` 2.52 Crore availed by the Subsidiary Company under the Rajasthan
Investment Promotion Scheme, 2010 on SGST deposited in respect of certain Sales made by the Subsidiary
Company during the earlier nancial year which was adjusted by the Department against existing CST
demand of ` 7.70 Crore under Amnesty Scheme).
b. The Subsidiary Company received a demand notice of Nil (previous year ` 2.55 Crore from AVVNL dated
23.11.2021 demanding Cross Subsidy Surcharge under clause 91.6 of “Rajasthan Electricity Regulatory
Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations,
2020” till Oct’21. Out of which, ` 1.08 Crore pertaining to earlier nancial year has been included in
Exceptional Item).
Note-69 i. The Group does not have any Benami property, where any proceeding has been initiated or pending against the
Group for holding any Benami property.
ii. The Group have not traded or invested in Crypto Currency or Virtual Currency during the nancial year
iii. The Group does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
iv. The Group has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest
in other persons or entities identied in any manner whatsoever by or on behalf of the Group (Ultimate
Beneciaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneciaries
v. The Group has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Group shall: (a) directly or indirectly lend or
invest in other persons or entities identied in any manner whatsoever by or on behalf of the Funding Party (Ultimate
Beneciaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneciaries
vi. The Company have no such transactions which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in Tax assessments under Income Tax Act, 1961.
vii. Struck off Companies in Parent Company.
` in Crore (10 Million)
Name of the struck Nature of Transaction Balance outstanding Balance outstanding
off Company transactions during the year as at March 31, 2023 as at March 31, 2022
Oriental Engineering
Works Pvt. Ltd. Payable - - 0.01

274 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Notes to Consolidated Financial Statements for the Year ended March 31, 2023

Note-70 In earlier years, the Holding Company had acquired 35% holding (at a cost of ` 2.10 crore) in M/s. Sungaze Power
Private Limited (SPPL) which has set up a 6.50 MW solar Power Plant under Captive Power Plant (CPP) model at our
Durg Cement Plant in the state of Chhattisgarh. The Company, as a Captive User, has no role & responsibility in the
day-to-day management & operations of SPPL. As such, SPPL has not been considered as an Associate for
consolidation purposes.
Note-71 a) Some of the Balances of receivables and payables are in process of conrmation.
b) Previous year’s gures have been re-grouped/re-classied wherever necessary and gures less than ` 50000 have
been shown as actual in bracket.

As per our report of even date For and on behalf of the Board of Directors
For S. S. KOTHARI MEHTA & COMPANY B.H. SINGHANIA Chairman
Chartered Accountants VINITA SINGHANIA Vice Chairman & Managing Director
Firm Registration No.: 000756N

}
Dr. R.P. SINGHANIA
SUNIL WAHAL N.G. KHAITAN
Partner SUDHIR A. BIDKAR RAVI JHUNJHUNWALA Directors
Membership No.: 087294 Chief Financial Ofcer SADHU RAM BANSAL
BHASWATI MUKHERJEE
Place: New Delhi AMIT CHAURASIA
Date: 19th May, 2023 Company Secretary ARUN KUMAR SHUKLA President & Director

INTEGRATED ANNUAL REPORT 2022-23 275

JK Lakshmi Cement Limited
Consolidated Cash Flow Statement
For the year ended 31st March, 2023
` In Crore (10 Million)
Particulars For the year ended For the year ended
March 31, 2023 March 31, 2022

A. CASH FLOW FROM OPERATING ACTIVITIES

Net Prot before Tax 534.48 626.34
Adjustments for:
Depreciation and Amortization Expense (net) 228.33 223.47
Interest Income (25.53) (22.75)
Interest income from other nancial asset at amortised cost (6.88) (7.11)
(Prot) / Loss on sale of Property, Plant and Equipment (Net) (0.31) (6.22)
(Prot) / Loss on sale of Current Investments (net) (28.21) (8.60)
(Gain) / Loss on Fair Valuation of Current Investments 11.66 (16.10)
Finance Costs 133.40 142.19
Provision for Doubtful Debts 0.92 2.14
Foreign Exchange Difference (net) (8.29) 0.17
Share in Prot / (Loss) of Associates (Net of Tax) (0.02) (0.04)
Exceptional Items - (26.99)
Operating Prot before Working Capital changes 839.55 906.50
Adjustments for:
Trade and Other Receivables (74.55) 121.21
Inventories (260.60) (214.80)
Trade and Other Payables 220.69 (34.14)
Cash generated from Operations 725.09 778.77
Income Tax Payments (Net) (90.86) (98.81)
Net Cash from Operating Activities 634.23 679.96
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Property, Plant and Equipment and Intangible Assets (737.23) (374.63)
Sale of Property, Plant and Equipment 5.21 8.50
(Purchase) / Sale of Investments (net) 142.05 (150.94)
Encashment / (Investments) in bank deposits 264.96 (175.42)
Interest Received 25.52 27.39
Net Cash from / (used in ) Investing Activities (299.49) (665.10)
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Long-term Borrowings 264.15 596.85
Repayment of Long-term Borrowings (306.17) (384.00)
Repayment of Lease Obligation - Principal (9.91) (5.68)
Repayment of Lease Obligation - Interest (3.66) (3.36)
Short-term borrowings (net) (1.03) (8.66)
Interest and Financial charges paid (150.48) (140.06)
Dividend paid (58.73) (44.28)
Net Cash from / (used in) Financing Activities (265.83) 10.81

276 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

JK Lakshmi Cement Limited

Consolidated Cash Flow Statement
For the year ended 31st March, 2023
` In Crore (10 Million)
Particulars For the year ended For the year ended
March 31, 2023 March 31, 2022
D. Increase / (Decrease) in
Cash and Cash Equivalents 68.91 25.67
E. Cash and Cash Equivalents as at the beginning of the year 74.03 48.36
F. Cash and Cash Equivalents as at the close of the year 142.94 74.03

Notes:
1. Total Liabilities from Financing Activities Long Term Short Term Long Term Short Term
Opening 1851.21 5.32 1639.13 13.98
Cash Flow Changes
Inow / (Repayments) (42.02) (1.03) 212.85 (8.66)
Non - Cash Flow Changes
Others 32.83 - (0.77)
Closing 1842.02 4.29 1851.21 5.32

1. Cash and Cash Equivalents include:

- Cash, Cheques in hand and remittances in transit 1.43 0.58
- Balances with Scheduled Banks 141.51 73.45
142.94 74.03

3. The cash ow statement has been prepared under the indirect method as set out in Indian Accounting Standard (Ind AS) 7
Statement of Cash Flows.
4. Previous year's gures have been re-arranged and re-cast wherever necessary.

As per our report of even date For and on behalf of the Board of Directors
For S. S. KOTHARI MEHTA & COMPANY B.H. SINGHANIA Chairman
Chartered Accountants VINITA SINGHANIA Vice Chairman & Managing Director
Firm Registration No.: 000756N

}
Dr. R.P. SINGHANIA
SUNIL WAHAL N.G. KHAITAN
Partner SUDHIR A. BIDKAR RAVI JHUNJHUNWALA Directors
Membership No.: 087294 Chief Financial Ofcer SADHU RAM BANSAL
BHASWATI MUKHERJEE
Place: New Delhi AMIT CHAURASIA
Date: 19th May, 2023 Company Secretary ARUN KUMAR SHUKLA President & Director

INTEGRATED ANNUAL REPORT 2022-23 277

 AOC-1

Financial Information of Direct & Indirect Subsidiaries and Associate Companies

(Pursuant to rst proviso to section 129(3) read with rule 8 of Companies (Accounts) Rule, 2014)
Part “A”: Subsidiaries

(` in lakh)
Sl.No. Particulars
Name of Subsidiary Hansdeep Ram Kanta Udaipur Cement
Industries & Properties Works Limited
1 Trading Private
Company Limited
Limited
Direct Subsidary Indirect Subsidary Direct Subsidary
2 Reporting period for the subsidiary N.A. N.A. N.A.
concerned, if different from the holding
company's reporting period
3 Reporting Currency INR INR INR
4 Closing Exchange Rate N.A. N.A. N.A.
5 Equity Share Capital 11,605.00 93.40 12,456.39
6 Insrument Entirely Equity in Nature - - -
7 Other Equity 39.91 11,466.38 22,122.81
8 Total Assets 14,647.10 11,571.19 179,532.72
9 Total Liabilities 3,002.19 11.41 144,953.52
10 Investments 49.07 71.24 0
11 Turnover 10.28 42.35 103,227.35
12 Prot / (Loss) before taxation (0.55) 24.22 5,048.55
13 Provision for taxation, DTL/(DTA) 0 5.92 1,461.72
14 Prot / (Loss) after taxation (0.55) 18.30 3,586.83
15 Proposed Dividend - - -
16 % of Shareholding 100 100 72.54

Note:-
1. Name of Subsidiaries which are yet to commence operations – Nil
2. Name of Subsidiaries which have been liquidated or sold during the year – Nil

278 JK Lakshmi Cement Ltd.

 Integrated Report Statutory Report Financial Statement

Part “B” : Associates

Statement pursuant to section 129(3) of the Companies Act, 2013 related to Associates (` in lakh)
Sl. No. Name of Associates Dwarkesh Energy Limited (DEL)
1 Latest audited Balance Sheet Date 31.03.2023
2 Share of Associates held by the Company at the year end :-
No. of Shares (Equity) 350,000
Amount of Investment in Associates 35.00
Extent of Holding (%) 35.00%
3 Description of how there is signicant inuence Holding > 20%
4 Reason why the Associate is not consolidated Consolidated
5 Net worth attributable to shareholding as per latest audited Balance Sheet
6 Prot / (Loss) for the year to DEL 6.48
Considered in Consolidation 2.27
Not Considered in Consolidation 4.21

Note:-
1 Name of Associates which are yet to commence operations – DEL is in the process of setting up the power project of
1320 MW in the state of Madhya Pradesh at Khandwa.
2 Name of Associates which have been liquidated or sold during the year – Nil

SUDHIR A. BIDKAR B.H. SINGHANIA

Chief Financial Ofcer Chairman

VINITA SINGHANIA
Vice Chairman & Managing Director

}
Dr.R.P. SINGHANIA
N.G.KHAITAN
RAVI JHUNJHUNWALA Directors
SADHU RAM BANSAL
BHASWATI MUKHERJEE

AMIT CHAURASIA ARUN KUMAR SHUKLA President & Director

Company Secretary

Place: New Delhi

Date: 19th May, 2023

INTEGRATED ANNUAL REPORT 2022-23 279