We have audited the accompanying standalone financial
statements of JK Lakshmi Cement Limited ("the Company"),
which comprise the Standalone Balance Sheet as at March 31,
2026, the Standalone Statement of Profit and Loss (including
Other Comprehensive Income / (loss)), the Standalone Statement
of Cash Flows and Standalone Statement of Changes in Equity
for the year then ended, and notes to the standalone financial
statements, including a summary of the material accounting
policies and other explanatory information (herein after referred
to as "standalone financial statements").
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 (the "Act") in the manner so required and give a true and fair
view in conformity with the Indian Accounting Standards
prescribed under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended, ("Ind
AS") and other accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31,2026, and
the profit (including other comprehensive income / (loss)), changes
in equity and its cash flows 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) specified
under Section 143(10) of the Act. Our responsibilities under
those SAs 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 (ICAI) together with the ethical
requirements that are relevant to our audit of the standalone
financial statements under the provisions of the Act and the Rules
made thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the
ICAI's Code of Ethics. We believe that the audit evidence
obtained by us is sufficient and appropriate to provide a basis for
our audit opinion on the standalone financial statements.
Other Matter
The comparative financial statements of the Company for the
year ended March 31, 2025 included in these standalone
financial statements, are based on the previously issued financial
statements which were audited by the preceding auditor whose
report for the year ended March 31,2025 dated August 1,2025
expressed an unmodified opinion on those financial statements.
Our opinion is not modified in respect of this matter.
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 of the current period. 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.
We have determined the matters described below to be the key audit matters to be communicated in our report:
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Description of Key Audit Matters
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How our audit addressed the key audit matters
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Revenue recognition, including discounts and rebates to
Customers
As disclosed in Note 1. III (13) to the standalone financial
statements, Revenue is recognized upon transfer of control
of promised goods or services to customers at transaction
price (net of taxes and duties).
Revenue is measured net of discounts, incentives and rebates
given to the customers on the Company's sales.
The Company's presence across different marketing regions
within the country and the competitive business environment
makes the assessment of various types of discounts,
incentives and rebates complex.
This complexity is further compounded by the need to
accurately estimate and apply discounts, rebates, and other
adjustments to arrive at the fair value of consideration in the
appropriate period and the completeness of the expenses.
Therefore, there is a risk of revenue being misstated as a result of
variations in the assessment of discounts, incentives and rebates.
Given the inherent complexity and the judgement involved in
determining amounts pertaining to such provision for
discounts, incentives and rebates including cut offs being
significant, this is a key audit matter.
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Our audit procedures included following:
• We have assessed the Company's accounting policies relating to
revenue, discounts, incentives and rebates by comparing with
applicable accounting standards.
• We have evaluated the design and implementation of the
Company's internal controls over revenue recognition, including
policies for discounts, rebates, and incentives, ensuring alignment
with Ind AS 115.
• We have assessed the Company's computations for accrual of
discounts, incentives and rebates, on a sample basis, and
compared the accruals made with the approved schemes and
underlying documents.
• Performed sample test of underlying documentation for discounts,
incentives and rebates recorded and disbursed during the year
including credit notes issued after the year end date.
• We have compared the historical trend of payments and reversal
of discounts, incentives and rebates to provisions made to assess
the current year accruals.
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Description of Key Audit Matters
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How our audit addressed the key audit matters
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Capitalisation of property, plant and equipment including
capital work in progress (CWIP) (Refer Note 2 and 3)
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The Company continues to invest in significant capital
projects with capital expenditure during the current year.
The significant level of capital expenditure requires
consideration of the determination of the timing of when
the asset is ready for its intended use by the management
and the nature of costs incurred to ensure that capitalisation
of property, plant and equipment meets the specific
recognition criteria in Ind AS 16, 'Property, Plant and
Equipment', specifically in relation to assets
constructed/installed by the Company and the direct
incidental cost capitalised.
Further, capitalisation of property, plant and equipment
including CWIP has a material impact, and also involves
greater amount of subjectivity and estimation uncertainty as
a result of the long-term nature and complexity of the
specific capital projects and hence identified as Key Audit
Matter.
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Our audit procedures in respect of this area included:
• Assessed the appropriateness of the Company's accounting
policies with respect to 'Property plant and equipment' in
compliance with Ind AS 1 6 "Property, Plant and Equipment".
• Understood and verified the design, implementation and
operating effectiveness of controls in respect of the timing and
amounts capitalised.
• Performed substantive procedures to verify the validity of amounts
capitalised and evaluating whether assets capitalised meet the
recognition criteria set out in Ind AS 16.
• Verified on sample basis the costs capitalised during the year
focusing on items significant due to their amount or nature, to
check whether such costs had been appropriately capitalised
under the correct asset category.
• Verified the timing of the capitalisation in terms of criteria met by
the Company for the intended use of the Property, Plant and
Equipment.
• Verified that capitalisation of assets ceased when the asset is in
the location and condition necessary for it to be capable of
operating in the manner intended by the Company.
• Assessed the adequacy and appropriateness of the disclosures
made in the standalone financial statements in compliance with
the requirements of Ind AS 1 6 "Property, Plant and Equipment"
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Information Other than the Financial Statements and
Auditor's Report Thereon
The Company's Board of Directors are responsible for the other
information. The other information comprises the information
included in the Management Discussion and Analysis, Board's
Report including Annexures to Board's Report, Business
Responsibility Report, Corporate Governance and Shareholder's
Information, 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 identified above
when it becomes available and, in doing so, consider whether the
other information is materially inconsistent with the standalone
financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there is a
material misstatement therein, we are required to communicate
the matter to those charged with governance. We have nothing
to report in this regard.
Responsibilities of Management and Board of Directors for
the Standalone Financial Statements
The Company's Management and Board of Directors are
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
Income/(loss), changes in equity and cash flows of the Company
in accordance with the accounting principles generally accepted
in India, including the Indian Accounting Standards (Ind AS)
specified u/s 133 of the Act. 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 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, Board of
Directors are 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.
The 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 financial 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 system 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 ability of the Company 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 standalone
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.
Materiality is the magnitude of misstatements in the standalone
financial statements that, individually or in aggregate, makes it
probable that the economic decisions of a reasonably
knowledgeable user of the financial statements may be
influenced. We consider quantitative materiality and qualitative
factors in (i) planning the scope of our audit work and in
evaluating the results of our work; and (ii) to evaluate the effect
of any identified misstatements in the standalone financial
statements.
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 of
the current period 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.
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 A" a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent
applicable.
2. As required by Section 143(3) of the Act, based on our audit
we report 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.
c) The Balance Sheet, the Statement of Profit and Loss
including Other Comprehensive Income / (loss), the
Statement of Changes in Equity and the Statement of Cash
Flows dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid standalone financial
statements comply with the Indian Accounting Standards
specified under Section 133 of the Act.
e) 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.
f) With respect to the adequacy of the internal financial
controls with reference to Standalone financial statements
of the Company and the operating effectiveness of such
controls, refer to our separate Report in "Annexure B". Our
report expresses an unmodified opinion on the adequacy
and operating effectiveness of the Company's internal
financial controls with reference to Standalone financial
statements.
g) With respect to the other matters to be included in the
Auditor's Report in accordance with the requirements of
section 197(16) of the Act, as amended:
In our opinion and to the best of our information and
according to the explanations given to us, the remuneration
paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.
h) 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, 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 No. 54, 55, 56, 57 and
71(c) to the standalone financial statements;
ii. The Company has made provision, as required under
the applicable law or Indian accounting standards, for
material foreseeable losses, if any, on long-term
contracts including derivative contracts; and
iii. There has been no delay in transferring amounts,
required to be transferred, to the Investor Education
and Protection Fund by the Company during the year
ended March 31,2026.
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 or entity,
including foreign entity ("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.(Refer Note No. 72(iv))
(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 or entity, including
foreign entity ("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. (Refer Note No. 72(v))
(c) Based on the audit procedures 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 (i) and (ii) of the rule 11(e), as provided under (a)
and (b) above, contain any material misstatement.
. (a) The final dividend relating to financial year 2024-25
declared or paid during the year ended March 31,2026,
by the Company is in compliance with section 123 of
the Act.
(b) As stated in note 50 to the accompanying Standalone
Financial Statements, the Board of Directors of the
Company have proposed final dividend for the year
ended March 31,2026, 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.
i. Based on our examination, which included test checks, the
company has widely used ERP an accounting software
systems for maintaining its books of account for the
financial year ended 31st March 2026, which have the
feature of recording audit trail (edit log) facility and the
same has operated throughout the year for all relevant
transactions recorded in the software systems.
Further, during the course of our audit we did not come
across any instance of the audit trail feature being
tampered with and the audit trail has been preserved by the
company as per the statutory requirements for record
retention.
For Lodha & Co LLP
Chartered Accountants
FRN: 301051E/E300284
N.K. Lodha
Partner
place: New Delhi M. No.: 085155
Date: May 20, 2026 UDIN: 26085155AKCJLL4066
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