We have audited the standalone financial statements of
J.K. Cement Limited ("the Company"), which comprise
the Balance sheet as at March 31,2026, the Statement
of Profit and Loss, including the statement of Other
Comprehensive Income, the Cash Flow Statement and
the Statement of Changes in Equity for the year then
ended, and notes to the Standalone financial statements,
including a summary of material accounting policies and
other explanatory information.
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
standalone financial statements give the information
required by the Companies Act, 2013, as amended ("the
Act") in the manner so required and give a true and
fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the
Company as at March 31,2026, its profit including other
comprehensive (loss), its cash flows and the changes in
equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial
statements in accordance with the Standards on
Auditing (SAs), as specified under section 143(10) of
the Act. Our responsibilities under those Standards are
further described in the ‘Auditor's Responsibilities for the
Audit of the Standalone Financial Statements' section
of our report. We are independent of the Company in
accordance with the 'Code of Ethics' issued by the
Institute of Chartered Accountants of India together with
the ethical requirements that are relevant to our audit
of the financial statements under the provisions of the
Act and the Rules thereunder, and we have fulfilled our
other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that
the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the
standalone financial statements.
Emphasis of Matter
i) We draw attention to Note 37A(5) to the standalone
financial statements which describes the
uncertainty related to the outcome of ongoing
litigation with the Competition Commission of India.
ii) We draw your attention to note 47 to the standalone
financial statements, which indicates that the
Amalgamation of Toshali Cements Private Limited
with the Company has been accounted for, including
restatement of previous year numbers, with effect
from the Appointed date, in accordance with
the Scheme of Amalgamation sanctioned by the
National Company law Tribunal, Allahabad Bench
(NCLT) instead of acquisition date as per Ind AS 103
'Business Combinations', as more fully described in
aforesaid note.
Our conclusion is not modified in respect of the
above matters.
Key Audit Matters
Key audit matters are those matters that, in our
professional judgment, were of most significance in
our audit of the standalone financial statements for the
financial year ended March 31,2026. These matters were
addressed in the context of our audit of the standalone
financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate
opinion on these matters. For each matter below, our
description of how our audit addressed the matter is
provided in that context.
We have determined the matters described below to be
the key audit matters to be communicated in our report.
We have fulfilled the responsibilities described in the
Auditor's responsibilities for the audit of the standalone
financial statements section of our report, including in
relation to these matters. Accordingly, our audit included
the performance of procedures designed to respond to
our assessment of the risks of material misstatement of
the standalone financial statements. The results of our
audit procedures, including the procedures performed
to address the matters below, provide the basis for
our audit opinion on the accompanying standalone
financial statements.
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Key audit matters
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How our audit addressed the key audit matter
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Claims, litigations and contingent liabilities
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(as described in note 37A of the standalone financial statements)
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As of March 31,2026, the Company has disclosed
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Our audit procedures included the following:
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contingent liabilities of H 333.82 Crores (excluding amount
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Obtained details of completed tax assessment and
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of H 137.82 Crores and interest of H 26.38 Crores related
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demands for the assessment years under dispute as of
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to CCI case covered in EOM para above) relating to taxes
and legal claims. Further, the management exercises its
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March 31,2026
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judgement in estimation of provision required in the books
of accounts by evaluating uncertain tax positions.
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Gained an understanding of the management process
of identification of claims, litigations and contingent
liabilities, estimates with regard to the existing tax
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The evaluation of management's judgements for claims
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disputes and uncertain tax positions and evaluated the
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and uncertain tax positions, involves estimations in
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design and tested the operating effectiveness of key
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assessing the likelihood that a pending claim and uncertain
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controls.
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tax positions will succeed, or a liability will arise, and the
quantification of the ranges of potential financial settlement
have been a matter of most significance during the current
year audit.
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Obtained the summary of Company's legal and
tax cases and assessed management's position
through discussions with the legal head, tax head and
Company's management, on both the probability of
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Furthermore, the Company has operations across many
jurisdiction and is subject to taxation related litigations
as per local tax regulations. Evaluation of the outcome of
the taxation related matters and whether the risk of loss
is remote, possible or probable, requires judgement by
management given the complexities involved.
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success in significant cases, and the magnitude of any
potential loss.
Inspected external legal opinions and other evidence
to corroborate management's assessment of the risk
profile in respect of legal claims and uncertain tax
positions.
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Accordingly, due to large number of claims/uncertain tax
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positions and complexity/ judgement involved in outcome
of these litigations/claims. Claims, litigations, uncertain tax
positions and contingent liabilities was determined to be
a key audit matter in our audit of the standalone financial
statements.
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Engaged tax specialists to assess management's
application and interpretation of tax legislation affecting
the Company, and to consider the quantification of
exposures of Uncertain tax position and settlements
arising from disputes with tax authorities in the various
tax jurisdictions.
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Assessed the relevant disclosures made within the
standalone financial statements.
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Revenue Recognition - Discounts, incentives, rebates etc.
(as described in note 27 of the standalone financia l statements)
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For the year ended March 31,2026 the Company has
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Our audit procedures included the following:
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recognized revenue from sale of goods of H 12,568.16
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Considered Company's revenue recognition policy and
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Crores.
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its compliance in terms of Ind AS 115 'Revenue from
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Revenue is measured net of discounts, incentives, rebates
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contracts with customers'.
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etc. earned by customers on the Company's sales.
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Assessed the design and tested the operating
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Due to the Company's presence across different marketing
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effectiveness of internal controls with regards to
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regions within the country and the competitive business
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approvals, calculation, provision and disbursement of
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environment, the estimation of the various types of
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discounts, incentives and rebates.
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discounts, incentives and rebate schemes to be recognised
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Performed sample test of supporting documentation
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based on sales made during the year is material and
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for computation of discounts, incentives and rebates
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considered to be complex and judgmental and dependent
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recorded and/or disbursed during the year including
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on various performance obligations and market conditions.
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credit notes issued after the year end date.
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Therefore, there is a risk of revenue being misstated as a
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Performed analytical review and compared the
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result of inaccurate estimations over discounts, incentives
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management's assessment of discounts, incentives
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and rebates.
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and rebates recorded for the current year with historical
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Accordingly, given the complexity and judgement involved
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trends of discount given and reversal of such discounts,
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in the assessment of provisions required for discounts,
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incentives and rebates to assess the appropriateness
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incentives and rebates, Revenue recognition - Discounts,
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and adequacy of provisions made during the current
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incentives, rebates etc. was determined to be a key audit
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year.
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matter in our audit of the Standalone financial statements.
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Performed sample test of manual journals posted to
discounts, incentives and rebates to identify unusual or
irregular items.
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Assessed the relevant disclosures made within the
standalone financial statements.
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Information Other than the Financial
Statements and Auditor's Report Thereon
The Company’s Board of Directors is responsible for
the other information. The other information comprises
the information included in the Annual report, but does
not include the standalone financial statements and our
auditor’s report thereon.
Our opinion on the standalone financial statements does
not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other
information and, in doing so, consider whether such other
information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated. If, based
on the work we have performed, we conclude that there
is a material misstatement of this other information, we
are required to report that fact. We have nothing to report
in this regard.
Responsibilities of the Management for the
Standalone Financial Statements
The Company's Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to
the preparation of these standalone financial statements
that give a true and fair view of the financial position,
financial performance including other comprehensive
(loss), cash flows and changes in equity of the Company
in accordance with the accounting principles generally
accepted in India, including the Indian Accounting
Standards (Ind AS) specified under section 133 of
the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended. This responsibility
also includes maintenance of adequate accounting
records in accordance with the provisions of the Act
for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting
policies; making judgments and estimates that are
reasonable and prudent; and the design, implementation
and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant
to the preparation and presentation of the standalone
financial statements that give a true and fair view and are
free from material misstatement, whether due to fraud
or error.
In preparing the standalone financial statements,
management is responsible for assessing the Company's
ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and
using the going concern basis of accounting unless
management either intends to liquidate the Company or
to cease operations, or has no realistic alternative but to
do so.
Those Board of Directors are also responsible for
overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the
Standalone Financial Statements
Our objectives are to obtain reasonable assurance
about whether the standalone financial statements as
a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit
conducted in accordance with SAs will always detect
a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered
material if, individually or in the aggregate, they could
reasonably be expected to influence the economic
decisions of users taken on the basis of these standalone
financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement
of the standalone financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for
expressing our opinion on whether the Company has
adequate internal financial controls with reference
to financial statements in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
• Conclude on the appropriateness of management's
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company's ability to continue as a going concern.
If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor's
report to the related disclosures in the financial
statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our
auditor's report. However, future events or conditions
may cause the Company to cease to continue as a
going concern.
• Evaluate the overall presentation, structure and
content of the standalone financial statements,
including the disclosures, and whether the standalone
financial statements represent the underlying
transactions and events in a manner that achieves
fair presentation.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance
with a statement that we have complied with relevant
ethical requirements regarding independence, and
to communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the standalone financial
statements for the financial year ended March 31,2026
and are therefore the key audit matters. We describe
these matters in our auditor's report unless law or
regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report
because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest
benefits of such communication.
Other Matter
We did not audit the financial statements and other
financial information, in respect of erstwhile wholly
owned subsidiary for the year ended March 31, 2025
(refer note 47), whose financial statements include total
assets of H 140.87 Crores as at March 31, 2025, and
total revenues of H 94.36 Crores and net cash outflows
of H 1.24 Crores for the year ended March 31, 2025,
as considered in the standalone financial statements
which have been audited by independent auditor of such
erstwhile wholly owned subsidiary and auditor's reports
for such annual financial statements have been furnished
to us by the management. Our opinion on the standalone
financial statements, in so far as it relates to the amounts
and disclosures included for the above period in respect
of erstwhile wholly owned subsidiary, is based solely
on the reports of independent auditor of such erstwhile
wholly owned subsidiary. Our opinion is not modified in
respect of this matter.
Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor's Report)
Order, 2020 ("the Order"), issued by the Central
Government of India in terms of sub-section (11) of
section 143 of the Act, we give in the "Annexure 1" a
statement on the matters specified in paragraphs 3
and 4 of the Order.
2. As required by Section 143(3) of the Act, we report
to the extent applicable, that:
(a) We have sought and obtained all the
information and explanations which to the best
of our knowledge and belief were necessary for
the purposes of our audit;
(b) In our opinion, proper books of account as
required by law have been kept by the Company
so far as it appears from our examination of
those books except for the matters stated in
the paragraph (j)(vi) below on reporting under
Rule 11(g);
(c) The Balance Sheet, the Statement of Profit
and Loss including the Statement of Other
Comprehensive Income, the Cash Flow
Statement and Statement of Changes in Equity
dealt with by this Report are in agreement with
the books of account;
As stated in note 16 to the standalone
financial statements, the Board of
Directors of the Company have proposed
final dividend for the year which is subject
to the approval of the members at the
ensuing Annual General Meeting. The
dividend declared is in accordance with
section 123 of the Act to the extent it
applies to declaration of dividend.
vi. Based on our examination which included
test checks, as stated in Note 45(b) to
the standalone financial statements, the
Company has used 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
(d) In our opinion, the aforesaid standalone
financial statements comply with the
Accounting Standards specified under
Section 133 of the Act, read with Companies
(Indian Accounting Standards) Rules, 2015,
as amended;
(e) The matters described in 'Emphasis of
Matter' paragraph above, in our opinion, may
have an adverse effect on the functioning of
the Company;
(f) On the basis of the written representations
received from the directors as on March 31,
2026 taken on record by the Board of Directors,
none of the directors is disqualified as on March
31, 2026 from being appointed as a director in
terms of Section 164 (2) of the Act;
(g) The modification relating to the maintenance
of accounts and other matters connected
therewith are as stated in the paragraph (b)
above on reporting under Section 143(3)(b) and
paragraph (j)(vi) below on reporting under Rule
11(g);
(h) With respect to the adequacy of the internal
financial controls with reference to standalone
financial statements and the operating
effectiveness of such controls, refer to our
separate Report in "Annexure 2" to this report;
(i) In our opinion, the managerial remuneration for
the year ended March 31, 2026 has been paid
/ provided by the Company to its directors in
accordance with the provisions of section 197
read with Schedule V to the Act.
(j) With respect to the other matters to be included
in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules,
2014, as amended in our opinion and to the
best of our information and according to the
explanations given to us:
i. The Company has disclosed the impact of
pending litigations on its financial position
in its standalone financial statements
- Refer Note 37A to the standalone
financial statements;
ii. The Company did not have any long-term
contracts including derivative contracts
for which there were any material
foreseeable losses;
iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by
the Company;
iv. a) The management has represented
that, to the best of its knowledge and
belief, no funds have been advanced
or loaned or invested (either from
borrowed funds or share premium or
any other sources or kind of funds)
by the Company to or in any other
person(s) or entity(ies), including
foreign entities ("Intermediaries"),
with the understanding, whether
recorded in writing or otherwise,
that the Intermediary shall, whether,
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 provide any
guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
b) The management has represented
that, to the best of its knowledge
and belief, no funds have been
received by the Company from any
person(s) or entity(ies), including
foreign entities ("Funding Parties"),
with the understanding, whether
recorded in writing or otherwise,
that the Company shall, whether,
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
provide any guarantee, security or
the like on behalf of the Ultimate
Beneficiaries; and
c) Based on such audit procedures
performed that have been considered
reasonable and appropriate in the
circumstances, nothing has come
to our notice that has caused us to
believe that the representations under
sub-clause (a) and (b) contain any
material misstatement.
v. The final dividend paid by the Company
during the year in respect of the same
declared for the previous year is in
accordance with section 123 of the
Act to the extent it applies to payment
of dividend.
of being enabled. Wherever audit trail is
enabled, during the course of our audit,
we did not come across any instance
of audit trail feature being tampered
with in respect of accounting software.
Additionally, the audit trail of prior years
has been preserved by the Company as
per the statutory requirements for record
retention to the extent it was enabled and
recorded in the respective year.
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Sanjay Vij
Partner
Place: Gurugram Membership Number: 095169
Date: May 23, 2026 UDIN: 26095169FRRNSV4742
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