The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.
The average borrowing rate of 8% has been applied to lease liabilities recognised in the balance sheet.
The Company had total cash outflows for leases of H 15.03 Crores (including interest payment of H 4.18 Crores) [31 March 2023: H 12.98 Crores (including interest payment of H 2.85 Crores)]. The Company also had non-cash additions to right-of-use assets and lease liabilities of H 16.32 Crores (31 March 2023 H 20.63 Crores).
Reclassification:
The Company has reclassified Mining rights from head 'Leasehold land' under 'Right-of-use assets' to 'Mining rights' under 'Intangible assets' of H 92.37 Crores (Gross block: H 94.27 Crores; Accumulated depreciation: H 1.90 Crores) as at 01 April 2022. The management believes that such reclassification does not have any material impact on information presented in the balance sheet at the beginning of the preceding period. Accordingly, the Company has not presented third balance sheet in the financial statements.
ii J. K. Cement Works (Fujairah) FZC (‘JKCWF') a step-down subsidiary of J. K. Cement (Fujairah) FZC (‘JKCF') had been incurring losses for the past several years since its incorporation and its net worth had significantly eroded. In the earlier years, based on business valuation of JKCWF by an independent external valuer, the company had recognised provision towards impairment in carrying value of investment in JKCF of H 458.38 Crores as at
31 March 2023. Among other matters, these losses indicate a permanent reduction in value of investments.
During the current year, JKCWF has cancelled 2,26,637 Non-cumulative Redeemable Preferential Shares (‘RPS') of AED 1000 each held by JKCF and JKCF has also cancelled 2,26,637 equity shares of AED 1000 each held by the Company, considering inability of JKCWF/JKCF to repay/service part of RPS/Equity held by JKCF/Company. Post-cancellation, JKCF continue to be wholly owned subsidiary and JKCF continue to hold ninety percent shareholding in JKCWF.
The Company has written off cost amounting to H 404.00 Crores determined on FIFO basis of 2,26,637 cancelled equity shares, net of related impairment provision/ reversal of impairment previously recognised, to the statement of profit and loss. The management has evaluated that there is no additional impairment / further reversal of previously recognised impairment is required.
iii The Company has acquired 100% control in Toshali Cements Private Limited for purchase consideration of H 10.75 Crores on 21 February 2024 and has become wholly owned subsidiary.
iv Converted to equity shares in current year.
v The preference share will be converted to equity shares or redeemed at the option of the Company ay any time on or before expiry of 5 years.
vi The debentures will be converted to equity shares at the option of the Company at any time on or before expiry of 8 years.
a. Terms and rights attached to equity shares
There are only 1 class of equity shares having a par value of H 10 each. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. There is no restriction on distribution of dividend. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.
Aggregate number of equity shares issued as bonus, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date is Nil.
Debenture Redemption Reserve (DRR)
For the debentures issued and outstanding, the Company has created DRR in accordance with requirement of section 71 of the Companies Act 2013. However, pursuant to a Ministry of Corporate Affairs notification dated 16 August 2019 amending Section 71 of the Companies Act, 2013 and Rule 18 (7) of the Companies (Share Capital and Debentures) Rules, 2014, the Company is not required to maintain DRR for debentures issued and accordingly has applied the said change in provision to debentures issued prospectively post 31 March 2020.
General Reserve
The Company appropriates a portion to general reserves out of the profits voluntarily to meet future contingencies. The said reserve is available for payment of dividend to the shareholders as per the provisions of the Act.
Securities Premium
Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
Retained earnings
Retained earnings represents all accumulated net income netted by all dividends paid to shareholders. Retained earnings includes re-measurement gain/(loss) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss. Retained earnings is a free reserve available to the Company.
Other Comprehensive Income
Remeasurement of defined benefit plans
Remeasurements of defined benefit plans represents the following as per Ind AS 19, Employee Benefits:
(a) actuarial gains and losses
(b) the return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset); and
Capital management
For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings (including lease liabilities), less cash and cash equivalent, fixed deposits and current investments.
In order to achieve this overall objective, the company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2024 and 31 March 2023.
Disaggregated revenue information
a. The Company is primarily in the business of manufacture and sale of cement. The product shelf life being short, all sales are made at a point in time and revenue recognised upon satisfaction of the performance obligations which is typically upon dispatch/delivery. The amounts receivable from customers are generally on terms of 0 to 90 days. There is no significant financing component in any transaction with the customers.
b. The Company does not have any remaining performance obligation as contracts entered for sale of goods are for a shorter duration.
c. The Company does not provide performance warranty for products, therefore there is no liability towards performance warranty.
d. The management determines that the segment information reported in Note 38 is sufficient to meet the disclosure objective with respect to disaggregation of revenue under Ind AS 115 Revenue from contract with customers.
|
r<
CO
|
Contingent liabilities, contingent assets and commitments
|
|
|
| |
As at 31 March 2024
|
As at 31 March 2023
|
|
A.
|
Contingent liabilities in respect of:
|
|
|
| |
1.
|
Claim against the Company not acknowledged as debts includes show cause notices pertaining to excise duty, interest which is included in point no. 5 below and others (cash flow is dependent on court decision pending at various level)
|
29.15
|
43.67
|
| |
2.
|
There are numerous interpretative issues relating to the Supreme Court (SC) judgement dated 28 February 2019 on Provident Fund (PF) on the inclusion of allowances for the purpose of PF contribution as well as its applicability of effective date. The Company is evaluating and seeking legal inputs regarding various interpretative issues and its impact. As a matter of caution, the Company has applied the judgement on a prospective basis from the date of the SC order. The Company will update its provision for the period prior to the Supreme Court judgement, on receiving further clarity on the subject.
|
|
|
|
Other for which the Company is contingently liable
|
|
| |
3.
|
In respect of disputed demands for which Appeals are pending with Appellate Authorities/Courts - no provision has been considered necessary by the Management
|
|
|
| |
|
a) Excise duty and Octroi*
|
21.45
|
6.78
|
| |
|
b) GST, Sales Tax and Entry Tax*
|
123.40
|
111.78
|
| |
|
c) Income Tax (primarily on account of disallowance of transfer pricing adjustments for claims u/s 80 IA in respect of power undertakings and corporate guarantee, non grant of MAT credit, erroneous imposition of interest depreciation on goodwill and additional depreciation on power plants etc.)
|
466.96
|
31.88
|
| |
4.
|
In respect of interest on "Cement Retention Price" realised in earlier years
|
13.74
|
13.53
|
| |
5.
|
The Competition Commission of India (‘CCI') has imposed penalty of H 128.54 Crores ('first matter') and H 9.28 Crores ('second matter') in two separate orders dated 31 August 2016 and 19 January 2017 respectively for alleged contravention of provisions of Competition Act 2002 by the Company. The Company has filed appeals against the above orders. The National Company Law Appellate Tribunal (‘NCLAT'), on hearing the appeal in the first matter, upheld the decision of CCI for levying the penalty vide its order dated 25 July 2018. Post order of the NCLAT, CCI issued a revised demand notice dated 7 August 2018 of H 154.92 Crores consisting of penalty of H 128.54 Crores and interest of H 26.38 Crores (included under 'Claim against the Company not acknowledged as debts'). The Company has filed appeal with Hon'ble Supreme Court against the above order. Hon'ble Supreme Court has stayed the NCLAT order.
In the second matter, demand had been stayed and the matter is pending for the hearing before NCLAT.
While the appeal of the Company is pending for hearing, the Company backed by a legal opinion, believes that it has a good case and accordingly no provision has been considered in the books of accounts.
|
137.82
|
137.82
|
| |
6.
|
In respect of land tax levied by state government of Rajasthan
|
0.15
|
0.15
|
| |
7.
|
In respect of demand of Railway Administration pending with Jodhpur High Court
|
2.75
|
2.66
|
| |
8.
|
In respect of charges on account of electricity duty, water cess and urban cess etc. levied by Ajmer Vidyut Vitran Nigam Ltd. (AVVNL)
|
63.76
|
57.38
|
| |
9.
|
In respect of Environmental and Health Cess (including interest)
|
21.21
|
19.02
|
| |
10.
|
In respect of Workmen Compensation Act Case no. 55/2020
|
0.06
|
0.06
|
|
(All amounts are in Rupees Crores, unless otherwise stated)
|
|
As at 31 March 2024
|
As at 31 March 2023
|
|
11.
|
In respect of S.B. Civil Misc. Appeal no. 919/2013
|
0.02
|
0.02
|
|
12.
|
In respect of J.K. Cement Vs Jagdish Jatia & Others 89/2019
|
0.03
|
0.03
|
|
13.
|
In respect of J.K. Cement Vs G.M.(Eastern)Railway Kolkata & Others 32/05 & 33/05, case nos 5299/2019 and 5312/2019
|
0.52
|
0.52
|
|
14.
|
Renewal Energy Purchase Contract termination
|
2.74
|
-
|
|
*Disputes are primarily on account of disallowances of input credits, entry tax (including interest & penalty), etc.
|
|
B. Commitments
|
|
|
Capital commitment
|
318.56
|
244.81
|
|
C. Contingent assets
|
|
|
Insurance Claims
|
5.04
|
4.09
|
|
Refund expected in legal cases
|
4.42
|
2.19
|
(ii) Defined Benefit Plan:
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to Group Gratuity Trust (J. K. Cement Gratuity Fund) registered under Income Tax Act-1961.
The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at 31 March 2024. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.
A. Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognised in the Company's financial statements as at balance sheet date:
38. Segment information
Segment information is presented in respect of the Company's key operating segments. The operating segments are based on the Company's management and internal reporting structure.
Operating Segments
The Company's Board of Directors have been identified as the Chief Operating Decision Maker ('CODM'), since they are responsible for all major decision w.r.t. the preparation and execution of business plan, preparation of budget, planning, expansion, alliance, joint venture, merger and acquisition, and expansion of any new facility.
Board of Directors reviews the operating results at company level, accordingly there is only one Reportable Segment for the Company which is "Cement and allied products".
B. Information about major customers (from external customers)
The Company has not derived revenues from single customer during the year as well as during previous year which amount to 10% or more of the entity's revenues.
39. Employee benefits
The Company contributes to the following post-employment defined benefit plans in India.
(i) Defined Contribution Plans:
The Company makes contributions towards provident fund and superannuation fund to a defined contribution retirement benefit plan for qualifying employees. Under the plan, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefits.
F. Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below:
Asset volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in government securities. These are subject to interest rate risk and the fund manages interest rate risk with derivatives to minimise risk to an acceptable level.
Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the scheme's bond holdings.
Life expectancy: The pension obligations are to provide benefits for the life of the member, so increase in life expectancy will result in increase in plans liability. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.
The Company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term investments that are in line with the obligations under the employee benefit plans. Within this framework, the company's ALM objective is to match assets to the pension obligations under the employee benefit plan term fixed interest securities with maturities that match the benefit payments as they fall due and in the appropriate currency. The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the processes used to manage its risks from previous periods. Investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets. A large portion of assets at reporting date consists of government and corporate bonds, although the Company also invests in equities, cash and mutual funds. The Company believes that equities offer the best returns over the long term with an acceptable level of risk.
I. Social Security Code
The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the Code on Social Security, 2020 on 13 November 2020. The Company will assess the impact and its evaluation once the subject rules are notified. The Company will give appropriate impact in its financial statements in the period in which, the Code becomes effective.
c) Terms and conditions of transactions with related parties
The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables.
B. Fair value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are:
(a) recognised and measured at fair value and
(b) measured at amortised cost and for which fair values are disclosed in the financial statements.
To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes mutual funds, bonds and debentures that have quoted price.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted securities.
Valuation technique used to determine fair value
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:
(a) The fair value of unquoted non current investments and other non current financial liabilities/assets (majorly Security deposits) are estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.
(b) Fair value of current investment in mutual funds are based on market observable inputs i.e. Net Asset Value at the reporting date.
(c) The fair values of the Company's interestbearing borrowings were determined by using Discounted Cash Flow (DCF) method using discount rate that reflects the issuer's borrowing rate as at the end of the reporting period.
(d) The fair value of lease liabilities is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.
II. Financial risk management
The Company has exposure to the following risks arising from financial instruments:
- credit risk;
- liquidity risk; and
- market risk
i. Risk management framework
The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The board of directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company's risk management policies. The committee reports regularly to the board of directors on its activities.
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through
its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Company's Audit Committee oversees how management monitors compliance with the Company's risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.
ii. Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers including deposits with banks and financial institutions.
Expected credit losses are a probability weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive).
Trade and other receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.
The Risk Management Committee has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company's standard payment and delivery terms and conditions are offered. The Company's review includes external ratings, if they are available, and in some cases bank references. Sale limits are established for each customer and reviewed quarterly. Any sales exceeding those limits require approval from the Risk Management Committee.
In monitoring customer credit risk, customers are accompanied according to their credit
characteristics, including whether they are an individual or a legal entity, their geographic location, industry and existence of previous financial difficulties. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.
A default on financial assets is when the counterparty fails to make contractual payments within 60 days of when they fall due. This definition of default is determined by considering the business environment in which the entity operates and other macro-economic factors. The Company holds security deposits against trade receivables of H 107.55 Crores (31 March 2023: H 125.08 Crores) and as per the terms and condition of the agreements, the Company has the right to encash the bank guarantee or adjust the security deposits in case of defaults.
The Company establishes an allowance for impairment that represents its expected credit losses in respect of trade and other receivables. The management uses a simplified approach for the purpose of computation of expected credit loss for trade receivables
During the year based on specific assessment, the Company recognised bad debts and advances of H 0.04 Crores (31 March 2023:0.00 Crores). The year end trade receivables do not include any amounts with such parties.
The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables disclosed in Note 9.
associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in
funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the Company's liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalent on the basis of expected cash flows. This is generally carried out in accordance with practice and limits set by the Company. These limits vary by location to take into account the liquidity of the market in which the entity operates. In addition, the Company's liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with the Company's policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.
The Company's maximum exposure to credit risk for the components of the balance sheet at 31 March 2024 and 31 March 2023 is the carrying amounts as shown in Note 4,5,8,10,11 & 12. The Company has not recorded any further loss during the year in these financial instruments and cash deposits as these
pertains to counter parties of good credit ratings/credit worthiness.
A default on financial assets is when the counterparty fails to make contractual payments within 60 days of when they fall due. This definition of default is determined by considering the business environment in which the entity operates and other macroeconomic factors.
The Company establishes an allowance for impairment that represents its expected credit losses in respect of trade and other receivables. The management uses a simplified approach for the purpose of computation of expected credit loss for trade receivables.
iii. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations
The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in Indian National Rupee ('INR') and have an average maturity of Nil years (as at 31 March 2023 - Nil years).
Maturities of financial liabilities
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting agreements.
iv. Market risk
Market risk comprises of Interest rate risk, commodity risk and currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of interest rate risk and currency risk. Financial instruments affected by market risk primarily include trade and other receivables, trade and other payables and borrowings.
Excessive risk concentration
Concentrations arise when a number of counterparties are engaged in similar business activities, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. Concentrations indicate the relative sensitivity of the Company's performance to developments affecting a particular industry.
In order to avoid excessive concentrations of risk, the Company's policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.
Commodity Price Risk
The Company is exposed to commodity price risk arising out of fluctuation in prices of raw materials (flyash, gypsum and laterite) and fuel (coal and pet coke). Such price movements, mostly linked to external factors, can affect the production cost of the Company. To manage this risk, the Company take steps such as monitoring of prices, optimising fuel mix and pursue longer and fixed price contracts, where considered necessary. Additionally, processes and policies related to such risks are controlled by central procurement team and reviewed by the senior management.
Currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities (when revenue or expense is denominated in a foreign currency). The Company manages its foreign currency risk by taking foreign currency forward contracts, if required
Interest rate risk
The Company's main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. Company policy is to maintain most of its borrowings at fixed rate using interest rate swaps to achieve this when necessary. During 31 March 2024 and 31 March 2023, the Company's borrowings at variable rate were mainly denominated in Indian National Rupee ('INR').
The Company's fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
Currently the Company's borrowings are within acceptable risk levels, as determined by the management, hence the Company has not taken any swaps to hedge the interest rate risk.
45. The Company uses SAP accounting software for maintaining its books of account which has a feature of
recording audit trail facility and the same has operated throughout the year for all relevant transactions recorded in the software except for direct changes to database using certain access rights where audit trail feature is in the process of being enabled. Wherever audit trail is enabled, there has not been any instance where audit trail feature has been tampered with, in respect of the accounting software.
46. Business combinationMerger of Jaykaycem (Central) Ltd. with J.K. Cement Ltd.
i. The scheme of amalgamation, of Jaykaycem (Central) Ltd.(UCCU)(engaged in the business of manufacturing and selling of cement)('Transferor') with J.K. Cement Ltd. (,JKCL')(,Transferee'), was approved by the Hon'ble National Company Law Tribunal ('NCLT') on 20 July 2023, with the appointed date of the scheme as
01 April 2021. During the current year, the Company has received requisite approvals which has confirmed that all substantial conditions prescribed in the scheme have been fulfilled and accordingly, the Company has filed certified copy of NCLT order with the Registrar of Companies on 01 August 2023 ('Effective date') making the Scheme effective. Pursuant to the scheme becoming effective all assets and liabilities of the Transferor (JCCL) got transferred and vested with the Transferee (JKCL) with effect from 01 April 2021 i.e. the appointed date.
ii. The comparative of the previous year figures of Balance Sheet, Statement of Profit and Loss (including Other Comprehensive Income) and Statement of Cash Flows have been restated from the beginning of the previous year i.e. 01 April 2022 to give effect of the said scheme in accordance with the "Pooling of interest method" of accounting laid down in Appendix C of Ind AS 103 - Business Combinations, read with Ind AS 10 - Events after the Reporting Period. The audited financial statement of erstwhile JCCL for the year ended 31 March 2023 were audited by the independent auditor of erstwhile JCCL.
47. Additional regulatory information required by Schedule III(i) Details of benami property held
No proceedings have been initiated on or are pending against the company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
(ii) Borrowing secured against current assets
The Company has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the company with banks and financial institutions are in agreement with the books of accounts.
(iii) Wilful defaulter
The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
iii. Exceptional Items:
Other direct costs (Rates & taxes) of H 5.50 Crores relating to amalgamation of JCCL with the Company was provided and incurred during the year ended 31 March 2024, has disclosed this as an exceptional item during the year ended 31 March 2024.
Note: Accounting treatment of the arrangements:
Business combination is accounted for using the 'pooling of interests' method as per Appendix C of Ind AS 103 - Business Combinations as notified under Section 230 to 232 of the Companies Act, 2013 and same is in line with the approved scheme, which involves the following:
(a) The financial information in the financial statements in respect of prior periods is restated as if the business combination had occurred from the beginning of the preceding period in the financial statements, irrespective of the actual date of the combination. Accordingly, business combinations is accounted with effect from 01 April 2022.
(b) The asset, liabilities and reserves are recognised at carrying values as appearing consolidated financial statements of the Company.
(c) The value of investment in the Transferor (JCCL) in the books of the Company shall be cancelled.
(d) No adjustments are made to reflect fair values, or recognise any new assets or liabilities.
(e) Inter-company balances as at 31 March 2022 have been eliminated.
(f) The difference between the net assets of the Transferor (JCCL) transferred to Company, after making adjustment specified in (c) and (d) shall be adjusted in 'Other Equity' of the Company.
(v) Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
(vi) Utilisation of borrowed funds and share premium
The Company has not advanced or lend 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 identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries
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:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries
(vii) Utilisation of borrowings availed from banks and financial institution
The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were taken.
(viii) Undisclosed income
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
(ix) Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(x) Valuation of Property, plant and equipment, intangible asset
The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.
(xi) Registration of charges or satisfaction with Registrar of Companies
There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.
48. Absolute amounts less than H 50,000 are appearing in the Standalone Financial Statements as "0.00" and more then 50,000 to 1,00,000 are appearing in the Standalone Financial Statements as "0.01" due to presentation in Crores.
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