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PRIVATE&CONFIDENTIAL–FORPRIVATECIRULATIONONLYDATEDJULY20,2020(This Disclosure Document/Private Placement Offer Letter is neither a Prospectus nor aStatementinLieuofProspectus)THIS DISCLOSURE DOCUMENT CONTAINS DISCLOSURE AS PER SCHEDULE – I DISCLOSURESSPECIFIEDUNDERSECURITIESANDEXCHANGEBOARDOFINDIA(ISSUEANDLISTINGOFDEBTSECURITIES)REGULATIONS,2008,ASAMENDED,SECURITIESANDEXCHANGEBOARDOFINDIA(LISTINGOBLIGATIONANDDISCLOSUREREQUIREMENTS)REGULATIONS,2015,ASAMENDEDANDFORMNO.PAS-4PURSUANTTOSECTION42ANDSECTION71OFTHECOMPANIESACT,2013,ASAMENDEDANDRULE14(1)OFCOMPANIES(PROSPECTUSANDALLOTMENTOFSECURITIES)RULES,2014READWITHTHECOMPANIES(SHARECAPITALANDDEBENTURES)RULES,2014,EACHASAMENDED.

J.K.CementLimitedJ.K.CementLimitedwasincorporatedonNovember24,1994asJ.K.CementLimited, under the Companies Act, 1956. Our Company received thecertificateforcommencementofbusinessdatedDecember30,1994fromthethenRegistrarofCompanies,Kanpur,UttarPradesh.TheCINofourCompanyisL17229UP1994PLC017199.Registered&CorporateOffice:KamlaTower,Kanpur,UttarPradesh208001CIN:L17229UP1994PLC017199PhoneNo:+91-512-2371478-81Faxno.:+91-512-2332665/2399854;EmailID:shambhu.singh@jkcement.comWebsite:www.jkcement.com;

DISCLOSUREDOCUMENTDISCLOSUREDOCUMENTCUMAPPLICATIONFORMFORPRIVATEPLACEMENTBYJ.K.CEMENTLIMITED(THE“ISSUER”/“COMPANY”)OF2,500SECURED,LISTED,RATED,REDEEMABLE,NON-CONVERTIBLEDEBENTURESOFFACEVALUEOFRS. 10,00,000EACHAMOUNTINGTORS.250CRORES(THE“ISSUE”).

GENERALRISKInvestmentindebtinstrumentsinvolvesadegreeofriskandinvestorsshouldnotinvestanyfundsinthedebtinstrument,unlesstheycanaffordtotaketheriskattachedtosuchinvestments.Investonlyafter reading the risk factors in the Disclosure Document carefully including the risk involved. Thesecurities have not been recommended or approved by the Securities and Exchange Board of India(“SEBI”)nordoesSEBIguaranteetheaccuracyoradequacyofthisDisclosureDocument.Investorsareadvised to take an informed decision and to read the risk factors carefully before investing in thisoffering. For taking an investment decision, investors must rely on their own examination of theCompanyandtheIssueincludingtherisksinvolved.TheSEBIdoesnottakeanyresponsibilityforthisIssueinanymanner.

GENERALDISCLAIMERThis DisclosureDocument cumApplication Form is neither a prospectus nor a statement in lieu ofprospectusanddoesnotconstituteanoffertothepublicgenerallytosubscribefororotherwiseacquiretheDebentures to be issuedby the Issuer. ThisDisclosureDocument is for the exclusiveuse of theintended recipient(s) to whom it is addressed and delivered, and it should not be circulated ordistributed to thirdparties. It cannotbe acteduponby anypersonother than towhom it hasbeenspecificallyaddressed.Multiplecopieshereofgiventothesameperson/entityshallbedeemedtobeofferedtothesameperson.

ISSUER’SABSOLUTERESPONSIBILITYThe Issuer, having made all reasonable inquiries, accepts responsibility for and confirms that thisDisclosureDocumentcontainsallinformationwithregardtotheIssuerandtheIssue,whichismaterialinthecontextoftheIssue,thattheinformationcontainedintheDisclosureDocumentistrueandcorrectinallmaterialaspectsandisnotmisleadinginanymaterialrespect,thattheopinionsandintentions

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expressedhereinarehonestlyheldandthattherearenootherfacts,theomissionofwhichmakethisDisclosureDocumentasawholeoranyofsuchinformationortheexpressionofanysuchopinionsorintentionsmisleadinginanymaterialrespect.

CREDITRATINGCAREAA;Stable(DoubleA;Outlook:Stable)”hasbeenassignedbyCARERatingsLimitedfortheissueofDebentures.Theaboveratingsarenotarecommendationtobuy,sellorholdDebenturesandinvestorsshouldtaketheirowndecision.Theratingsmaybesubjecttosuspension,revisionorwithdrawalatanytimebytheassigning credit rating agency, on the basis of factors such as new information or unavailability ofinformationorothercircumstanceswhichsuchcreditratingagencybelievesmayhaveanimpactonitsrating,andeachratingshouldbeevaluatedindependentlyofanyotherrating.Theratingsobtainedaresubjecttorevisionatanypointoftimeinthefuture.

LISTINGTheDebenturesareproposedtobelistedontheWholesaleDebtMarketSegmentoftheBSELimited.DEBENTURETRUSTEETOTHEISSUE REGISTRARTOTHEISSUE

IDBITRUSTEESHIPSERVICESLIMITEDAsianBuilding,GroundFloor,17-R,KamaniMarg,BallardEstate,Mumbai–400001,Maharashtra,IndiaTelNo.:+912240807000Fax:+912266311776Contactperson:JimitPoojariWebsite:www.idbitrustee.comEmail:itsl@idbitrustee.com/services@idbitrustee.com

NSDLDatabaseManagementLimited4thFloor,TradeWorldAWing,KamalaMillsCompound,SenapatiBapatMarg,LowerParel,Mumbai–400013Tel:022-49142591Fax:022-49142503Email:nileshb@nsdl.co.in;InvestorGrievanceEmailId:relations.rta@nsdl.co.inWebsite:www.nsdl.co.inContactPerson:NileshBhandareSEBIRegistrationNo:INR000004181

SOLEARRANGERTOTHEISSUE

HDFCBankLimitedPeninsulaBusinessPark, 4thFloor,TowerB, SenapatiBapatMarg,LowerParel,Mumbai–400013,IndiaTel:+912233958234Fax:+912230788584E-mail:darshan.jakhotiya@hdfcbank.comContactPerson:Mr.DarshanJakhotiyaWebsite:www.hdfcbank.com

ISSUESCHEDULEISSUEOPENINGDATE July22,2020

IssueClosingDate July22,2020

PAYINDATESJuly23,2020

DeemedDateofAllotment July23,2020

InconsultationwithArranger,theIssuerreservestherighttopreponetheissueearlierfromtheaforesaiddateorpostponetheIssueatitssoleandabsolutediscretionwithoutgivinganyreasonsorpriornotice.IntheeventofanychangeintheaboveIssueSchedule,theIssuerwillintimatetheinvestorsabouttherevisedIssueSchedule.

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Sr.No INDEX PageNo.

1. DEFINITION/ABBREVIATION 62. DISCLAIMER 83. ISSUERINFORMATION 114. MANAGEMENT’SPERCEPTIONOFRISKFACTOR 135. BRIEFSUMMARYOFBUSINESS/ACTIVITIESOFISSUERANDITSLINEOFBUSINESS 326. OVERVIEW 327. CORPORATESTRUCTURE 34

8. KEYOPERATIONAL&FINANCIALPARAMETERS 34

9. PROJECT COST AND MEANS OF FINANCING, IN CASE OF FUNDING OF NEWPROJECTS 35

10. SUBSIDIARIES 35

11.

BRIEFHISTORYOFISSUERSINCEINCEPTION,DETAILSOFACTIVITIESINCLUDINGANY REORGANIZATION, RECONSTRUCTION OR AMALGAMATION, CHANGES INCAPITAL STRUCTURE, (AUTHORIZED, ISSUED AND SUBSCRIBED) ANDBORROWINGS

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12. DETAILSOFSHARECAPITALASONLASTQUARTEREND 36

13. CHANGESINITSCAPITALSTRUCTUREASONLASTQUARTEREND,FORTHELASTFIVEYEARS 36

14. EQUITYSHARECAPITALHISTORYOFTHECOMPANYASONLASTQUARTERENDFORTHELASTFIVEYEARS 36

15. DETAILSOFANYACQUISITIONORAMALGAMATIONINTHELAST1YEAR 3716. DETAILSOFANYREORGANIZATIONORRECONSTRUCTIONINTHELAST1YEAR 37

17. DETAILSOFTHESHAREHOLDINGOFTHECOMPANYASONTHELATESTQUARTEREND 37

18. SHAREHOLDINGPATTERNOFTHECOMPANYASONLASTQUARTEREND 37

19. LIST OF TOP 10 HOLDERS OF EQUITY SHARES OF THE COMPANY AS ON THELATESTQUARTEREND 37

20. DETAILSREGARDINGTHEDIRECTORSOFTHECOMPANY 3821. DETAILSOFCHANGEINDIRECTORSSINCELASTTHREEYEARS 4122. DETAILSREGARDINGTHEAUDITORSOFTHECOMPANY 4223. DETAILSOFCHANGEINAUDITORSINCELASTTHREEYEARS 4224. DETAILSOFBORROWINGSOFTHECOMPANY,ASONTHELATESTQUARTEREND 4225. DETAILSOFSECUREDLOANFACILITIES 4226. DETAILSOFUNSECUREDLOANFACILITIES 4827. DETAILSOFANYINTER-CORPORATELOANS,DEPOSITSANDOTHERBORROWINGS 4828. LISTOFTOP10DEBENTUREHOLDERS 48

29. THEAMOUNTOFCORPORATEGUARANTEEISSUEDBYTHEISSUERALONGWITHNAME OF THE COUNTERPARTY (LIKE NAME OF THE SUBSIDIARY, JV ENTITY,GROUPCOMPANY,ETC)ONBEHALFOFWHOMITHASBEENISSUED.

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30. DETAILSOF COMMERCIAL PAPER: - THETOTAL FACEVALUEOF COMMERCIALPAPERSOUTSTANDINGASONTHELATESTQUARTER 49

31. DETAILSOFRESTOFTHEBORROWING(IFANYINCLUDINGHYBRIDDEBTLIKEFCCB,OPTIONALLYCONVERTIBLEDEBENTURES/PREFERENCESHARES 49

32.

DETAILSOFALLDEFAULT/SAND/ORDELAY IN PAYMENTSOF INTERESTANDPRINCIPAL OF ANY KIND OF TERM LOANS, DEBT SECURITIES AND OTHERFINANCIALINDEBTEDNESSINCLUDINGCORPORATEGUARANTEEISSUEDBYTHECOMPANY,INTHEPAST5YEARS

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33. DETAILSOFANYOUTSTANDINGBORROWINGSTAKEN/DEBTSECURITIESISSUEDWHERETAKEN/ISSUED(I)FORCONSIDERATIONOTHERTHANCASH,WHETHER 49

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INWHOLEORPART,(II)ATAPREMIUMORDISCOUNT,OR(III)INPURSUANCEOFANOPTION

34. REGULATORYCONFIRMATIONS 4935. DETAILSOFPROMOTERSOFTHECOMPANY 50

36. DETAILSOFPROMOTERHOLDINGINTHECOMPANYASONTHELATESTQUARTEREND 50

37.

ABRIDGED VERSION OF AUDITED STANDALONE FINANCIAL INFORMATION(PROFIT& LOSS STATEMENT, BALANCE SHEET AND CASH FLOW STATEMENT)FOR LAST THREE YEARS AND AUDITOR QUALIFICATIONS-ATTACHED ASANNEXURE

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38. CONFIRMATION ON CHANGE IN ACCOUNTING POLICIES, RELATED PARTYTRANSACTIONS,RESERVATION/QUALIFICATIONSBYTHEAUDITORS 51

39.

ANYMATERIALEVENT/DEVELOPMENTORCHANGEHAVING IMPLICATIONSONTHE FINANCIALS/CREDIT QUALITY (E.G. ANY MATERIAL REGULATORYPROCEEDINGSAGAINSTTHEISSUER/PROMOTERS,TAXLITIGATIONSRESULTINGIN MATERIAL LIABILITIES, CORPORATE RESTRUCTURING EVENT ETC) AT THETIMEOFISSUEWHICHMAYAFFECTTHEISSUEORTHEINVESTOR’SDECISIONTOINVEST/CONTINUETOINVESTINTHEDEBTSECURITIES

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40. REGULATORYCONFIRMATIONS 54

41.

THE NAMES OF THE DEBENTURE TRUSTEE(S) SHALL BE MENTIONED WITHSTATEMENT TO THE EFFECT THAT DEBENTURE TRUSTEE(S) HAS GIVEN HISCONSENTTOTHEISSUERFORHISAPPOINTMENTUNDERREGULATION4(4)ANDINALLTHESUBSEQUENTPERIODICALCOMMUNICATIONSSENTTOTHEHOLDERSOFDEBTSECURITIES.

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42.

DETAILEDRATINGRATIONALE(S)ADOPTED(NOTOLDERTHANONEYEARONTHEDATEOFOPENINGOFTHE ISSUE)/CREDITRATINGLETTER ISSUED (NOTOLDER THANONEMONTHONTHEDATEOFOPENINGOF THE ISSUE) BY THERATINGAGENCIESSHALLBEDISCLOSED-ATTACHEDASANNEXURE

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43. IFTHESECURITYISBACKEDBYAGUARANTEEORLETTEROFCOMFORTORANYOTHERDOCUMENT/LETTERWITHSIMILARINTENT 56

44. COPY OF CONSENT LETTER FROM THE DEBENTURE TRUSTEE-ATTACHED ASANNEXURE 56

45. NAMES OF ALL THE RECOGNISED STOCK EXCHANGES WHERE THE DEBTSECURITIES ARE PROPOSED TO BE LISTED CLEARLY INDICATING THEDESIGNATEDSTOCKEXCHANGE

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46. OTHERDETAILS 5747. DRRCREATION 5748. ISSUE/INSTRUMENTSPECIFICREGULATIONS-RELEVANTDETAILS 5849. DISCLOSURESPERTAININGTOWILFULDEFAULT 5950. LEGALPROCEEDINGS 60

51.

APPLICATION PROCESS;WHO CANAPPLY, HOWTOBID, RIGHT TOACCEPTORREJECTBIDS,PAYMENTMECHANISM,DEPOSITORYARRANGEMENTS,PROCEDUREFORAPPLYINGFORTHEDEMATFACILITY,LETTEROFALLOTMENT/DEBENTURECERTIFICATE / REFUNDORDER / ISSUEOF LETTEROFALLOTMENT, ISSUEOFDEBENTURE CERTIFICATES, INSTRUCTIONS FOR APPLICATION, SUCCESSION,RIGHT TO ACCEPT OR REJECT APPLICATIONS, ALLOTMENT,TRANSFER/TRANSMISSION,TAXBENEFITS,LOSSOFLETTER(S)OFALLOTMENT/PRINCIPALANDINTERESTPAYMENTINSTRUMENTS,refunds,governinglaw,

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52. PERMISSION/CONSENTFROMTHEPRIORCREDITORSANDUNDERTAKINGONCREATIONOFCHARGE 71

53. MATERIALCONTRACTSANDAGREEMENTS 7154. INVESTORGRIEVANCEANDREDRESSALSYSTEMS 7255. TERMSHEET:ISSUEDETAILS 7256. DISCLOSUREOFCASHFLOWS 8257. FUTUREBORROWINGS 8358. RIGHTSOFDEBENTUREHOLDER(S) 83

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59. NOTICES,EVENTSOFDEFAULT,ADDITIONALCOVENANTS, 8460. FORMPAS–4 8561. DECLARATION 9162. ANNEXURES

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DEFINITION/ABBREVIATIONDEFINITIONS/ABBREVIATIONS/TERMSUSEDApplicableLaws Any statute, national, state, provincial, local,municipal or other law,

treaty,code,regulation,ordinance,rule,judgment,order,decree,bye-law, approval of any governmental authority, directive, guideline,policy, requirementorothergovernmentalrestrictionoranysimilarform of decision of or determination by, or any interpretation oradministrationhavingtheforceoflawofanyoftheforegoingbyanygovernmental authority having jurisdiction over the matter inquestion,whetherineffectasofthedateofthisDisclosureDocumentoratanytimethereafterinIndia

ApplicationForm Means theapplication form for subscribing to theDebenturesof theCompanyandreferredtoasAnnexureofthisDisclosureDocument.

Application Money /ApplicationMonies

meansmoney paid or payable by an Investor on its application forsubscriptiontotheDebentures

ArticlesofAssociation TheArticlesofAssociationoftheCompanyBeneficiary/Beneficiaries Thosepersonswhosenamesappearonthebeneficiarydetailsprovided

bytheDepositories(NSDL)asontheRecordDateBoard/BoardofDirectors TheBoardofDirectorsoftheCompanyBSEEBPGuidelines UpdatedOperationalGuidelines for issuanceofSecuritiesonPrivate

PlacementbasisthroughanElectronicBookMechanismissuedbyBSEvidetheirNoticeno.20180928-24datedSeptember28,2019andanyamendmentsthereto

BusinessDay • In relation to themaking of payment of any amount due to theDebenture Trustee and/or theDebentureHolders, shallmean adayonwhichscheduledcommercialbanksandmoneymarketinMumbaiandKanpurareopenfornormalbankingbusiness,otherthanaSaturday,aSundayorabankholidayorapublicholidayforthepurposeofSection25oftheNegotiableInstrumentsAct,1881(26of1881),asamendedoradaywhennohighvalueclearingorRTGSisavailableforanyreasonwhatsoeverataplacewheretheregistered/corporateofficeoftheCompanyissituated;and

• in relation to all other matters, shall mean a day other than aSaturday,aSundayorpublicholidayforthepurposeofSection25oftheNegotiableInstrumentsAct,1881(26of1881),asamendedon which scheduled commercial banks and money market inMumbaiandKanpurareopenfornormalbankingbusiness.

CARERatingsLimited CreditAnalysisandResearchLimited

CompaniesAct,1956 TheCompaniesAct1956,totheextentnotrepealedandreplacedbytheCompaniesAct,2013

CompaniesAct,2013 TheCompaniesAct,2013totheextentnotifiedandincludesanyrules,circulars,notificationsandordersframed/issuedthereunder,eachasamendedfromtimetotime

Company/Issuer J.K.CEMENTLIMITEDCoupon means,inrespectofaDebenturefortheCouponPeriod,theamountof

interestpayableonthefacevalueattheCouponRateCouponPaymentDate(s) meansthedate(s)onwhichCouponwillbepaidtotheInvestorsonan

annualbasisfromDeemedDateofAllotmenttillredemption.CouponPeriod Annually

CDSL CentralDepositoryServices(India)LimitedDebentureHolders Persons who are for the time being holders of the Debentures and

whose names are last mentioned in the Debentures/ DebentureRegisterandshallincludetheirBeneficiaries.

DebentureRegister TheRegisterofDebentureHoldersmaintainedbytheCompanyand/ortheRegistrarandTransferAgentundertheCompaniesAct,2013

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DebentureTrustee/Trustee IDBITrusteeshipServicesLimitedDebenture TrusteeshipAgreement/Appointmentletter

Theagreement/appointmentletterexecutedbytheCompanywiththeDebentureTrustee

DebentureTrustDeed ThedebenturetrustdeedenteredintobetweentheCompanyandtheDebentureTrustee.

Debentures/NCDs Private Placement of Secured, Listed, Rated, Redeemable, Non-Convertible Debentures of Face Value of Rs. 10,00,000/- eachaggregatingtoRs.250crores

SEBIDebtRegulations Securities and Exchange Board of India (Issue and Listing of DebtSecurities) Regulations, 2008 as amended from time to time andincludesanycirculars,notifications,etc.issuedthereunder.

DeemedDateofAllotment Means the date on which the Debenture Holders transfer theApplicationMoniesinrespectoftheDebenturesandsuchdatebeingthedateonwhichtheDebenturesshallhavebeendeemedtohavebeenallottedtotheDebentureHolders.

Depositories NSDL&CDSLDP DepositoryParticipantEligibleInvestors AllQIBs,andanynon-QIBInvestorsspecificallymappedbytheIssuer

ontheBSEBOND–EBPPlatform,areeligibletobid/invest/applyforthis Issue. All investors are required to comply with the relevantregulations/guidelinesapplicabletothemforinvestinginthisIssue

FY FinancialYearGOI GovernmentofIndiaINR/Rupees ThelawfulcurrencyoftheRepublicofIndiaInvestors Thosepersons towhoma copyof thisDisclosureDocumentmaybe

sent,specificallyaddressedtosuchperson,withaviewtoofferingtheDebenturesforsale(beingofferedonaprivateplacementbasis)underthisDisclosureDocument

Issue Private placement of secured, listed, rated redeemable, non-convertible debentures of face value of Rs. 10,00,000/- eachaggregatingtoRs.250crores

LetterofAllotment LetteraddressedbyoronbehalfoftheCompanytoanInvestorstatingtherein,inter-aliathattheInvestor’sapplicationhasbeenacceptedforallotmentforthenumberofDebenturesmentionedinsuchadviceandthe Application Money paid by it has been accordingly adjustedtowardspaymentoftheallotmentmoneyonthenumberofDebenturesbeingallottedtoit.

MCA MinistryofCorporateAffairs,GovernmentofIndiaNSDL NationalSecuritiesDepositoryLimitedOfferDocument/InformationMemorandum/DisclosureDocument

ThisofferdocumentandprivateplacementofferletterdatedJuly20,2020preparedbytheCompanyinrelationtotheprivateplacementofDebenturesaggregatingtoRs.250crores

RBI ReserveBankofIndiaRedemptionDate ThedateonwhichthedebenturesshallberedeemedtotheInvestorsRegistrarofCompanies UttarPradesh,KanpurSEBI SecuritiesandExchangeBoardofIndiaestablishedundertheSecurities

andExchangeBoardofIndiaAct,1992SEBIEBPCircular Securities and Exchange Board of India circular no.

SEBI/HO/DDHS/CIR/P/2018/05 dated January 5, 2018 anyamendmentsthereto

WilfulDefaulter An issuer who is categorized as a wilful defaulter by any bank orfinancial institution or consortium thereof, in accordance with theguidelinesonwilfuldefaultersissuedbytheReserveBankofIndiaandincludesanissuerwhosedirectororpromoteriscategorizedassuch

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DISCLAIMER(S)DISCLAIMEROFTHEISSUERThisDisclosureDocumentisneitheraprospectusnorastatementinlieuofprospectusandispreparedinaccordancewiththeSEBIDebtRegulations,theCompaniesAct,2013andtheCompanies(ProspectusandAllotmentofSecurities)Rules,2014readwiththeCompanies(Sharecapitalanddebentures)Rules,2014,eachasamendedfromtimetotime.ThisDisclosureDocumentdoesnotconstituteanoffertopublic ingeneraltosubscribefororotherwiseacquiretheDebenturestobeissuedbytheIssuer.ThisDisclosureDocumentisfortheexclusiveuseoftheaddresseeandrestrictedforonlytheintendedrecipientanditshouldnotbecirculatedordistributedtothirdparty(ies).ItisnotandshallnotbedeemedtoconstituteanofferoraninvitationtothepublicingeneraltosubscribetotheDebenturesissuedbytheIssuer.ThisDebentureIssueismadestrictlyonprivateplacementbasis.ApartfromthisDisclosureDocument,noofferdocumentorprospectushasbeenpreparedinconnectionwiththeofferingofthisDebentureIssueorinrelationtotheIssuer.ThisDisclosureDocumentisnotintendedtoformthebasisofevaluationfortheprospectivesubscriberstowhomitisaddressedandwhoarewillingandeligibletosubscribetotheDebenturesissuedbytheIssuer.ThisDisclosureDocumenthasbeenpreparedtogivegeneralinformationregardingtheIssuertopartiesproposingtoinvestinthisissueofDebenturesanditdoesnotpurporttocontainalltheinformationthatanysuchpartymayrequire.TheIssuerbelievesthattheinformationcontainedinthisDisclosureDocumentistrueandcorrectasofthedatehereof.TheIssuerdoesnotundertaketoupdatethisDisclosureDocumenttoreflectsubsequenteventsafterthedateoftheDisclosureDocumentanditshouldnotberelieduponbytheprospectivesubscriberswithrespecttosuchsubsequenteventswithoutfirstconfirmingitsaccuracyandrelevancywiththeIssuer.However,theIssuerreservesitsrightforprovidingtheinformationatitsabsolutediscretion.TheIssueracceptsnoresponsibilityforstatementsmadeinanyadvertisementoranyothermaterialandanyoneplacingrelianceonanyothersourceofinformationwouldbedoingsoathisownriskandresponsibility.Prospectivesubscribersmustmake theirown independentevaluationandjudgmentbeforemakingtheinvestmentandarebelievedtobeexperiencedininvestingindebtmarketsand are able to bear the economic risk of investing in theseDebentures. It is the responsibility of theprospective subscriber tohaveobtained all consents, approvals or authorizations requiredby them tomakeanoffer tosubscribe for,andpurchase theDebentures. It is theresponsibilityof theprospectivesubscribertoverifyiftheyhavenecessarypowerandcompetencetoapplyfortheDebenturesundertherelevantlawsandregulationsinforce.Prospectivesubscribersshouldconducttheirowninvestigation,duediligenceandanalysisbeforeapplyingfortheDebentures.NothinginthisDisclosureDocumentshouldbeconstruedasadviceorrecommendationbytheIssuerorbytheArrangertotheIssuetosubscriberstotheDebentures.TheprospectivesubscribersalsoacknowledgethattheArrangertotheIssuedoesnotowethesubscribersanydutyofcare inrespectof thisprivateplacementoffer tosubscribe for theDebentures.Prospective subscribers should also consult their own advisors on the implications of application,allotment,sale,holding,ownershipandredemptionoftheseDebenturesandmattersincidentalthereto. ThisDisclosureDocumentisnotintendedfordistribution.ItismeantfortheconsiderationofthepersontowhomitisaddressedandshouldnotbereproducedbytherecipientandthecontentsofthisDisclosureDocumentshallbekeptutmostconfidential.Thesecuritiesmentionedhereinarebeingissuedonprivateplacementbasisandthisofferdoesnotconstituteapublicoffer/invitation.TheIssuerreservestherighttowithdraw the Issue prior to the Issue Closing Date(s) in the event of any unforeseen developmentadversely affecting the economic and regulatory environment or any other force majeure conditionincludinganychangeinApplicableLaw.Insuchanevent,theIssuerwillrefundtheApplicationMoney,ifany,alongwithinterestpayableonsuchApplicationMoney,ifany.DISCLAIMEROFTHESECURITIES&EXCHANGEBOARDOFINDIAThisDisclosureDocumenthasnotbeenapprovedbySEBI.ThedebentureshavenotbeenrecommendedorapprovedbySEBInordoesSEBIguaranteetheaccuracyoradequacyofthisDisclosureDocument.ItistobedistinctlyunderstoodthatthisDisclosureDocument/PrivatePlacementOfferLettershouldnot,inanyway,bedeemedorconstruedthatthesamehasbeenclearedorvettedbySEBI.SEBIdoesnottakeanyresponsibility either for the financial soundness of any scheme or the project for which the Issue isproposed to bemade, or for the correctness of the statementsmade or opinions expressed in PrivatePlacementOfferLetter.PursuanttoRule14(3)oftheCompanies(ProspectusandAllotmentofSecurities)

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Rules, 2014, the Issuer shall maintain a complete record of private placement offers in FORM PAS-5.HoweverSEBIreservestherighttotakeupatanypointoftime,withtheIssuer,anyirregularitiesorlapsesinPrivatePlacementOfferLetter.DISCLAIMEROFTHESTOCKEXCHANGEAsrequired,acopyofthisDisclosureDocumenthasbeensubmittedtotheBSELimited(“BSE”)forhostingthesameonitswebsite.ItistobedistinctlyunderstoodthatsuchsubmissionoftheDisclosureDocumentwithBSEandhosting thesameon itswebsite shouldnot inanywaybedeemedorconstrued that theDisclosureDocumenthasbeenclearedorapprovedbyBSE;nordoesitinanymannerwarrant,certifyorendorsethecorrectnessorcompletenessofanyofthecontentsofthisDisclosureDocument;nordoesitwarrantthatthisIssuer’sDebentureswillbelistedorcontinuetobelistedontheExchange;nordoesittakeresponsibilityforthefinancialorothersoundnessofthisIssuer,itspromoters,itsmanagementoranyschemeorprojectoftheIssuer.EverypersonwhodesirestoapplyfororotherwiseacquireanyDebenturesoftheIssuerpursuanttothisIssuemaydosopursuanttoindependentinquiry,investigationandanalysisandshallnothaveanyclaimagainsttheexchangewhatsoeverbyreasonofanylosswhichmaybesufferedbysuchpersonconsequenttoorinconnectionwithsuchsubscription/acquisitionwhetherbyreasonofanythingstatedoromittedtobestatedhereinoranyotherreasonwhatsoever.DISCLAIMERINRESPECTOFJURISDICTIONTheprivateplacementofDebenturesismadeinIndiatocompanies,corporatebodies,trustsregisteredundertheIndianTrustsAct,1882,societiesregisteredundertheSocietiesRegistrationAct,1860oranyotherApplicableLaws,providedthatsuchtrust/societyisauthorisedunderconstitution/rules/byelawstoholdDebenturesinacompany,IndianmutualfundsregisteredwithSEBI,scheduledcommercialbanks,systemically important NBFCs, high net worth individuals, Indian financial institutions, insurancecompanies, commercial banks including regional rural banks and cooperative banks, foreign portfolioinvestors, provident, pension, gratuity, superannuation funds as defined under Applicable Laws. ThisDisclosureDocumentdoesnot, however, constitute anoffer to sell or an invitation to subscribe to theDebenturesofferedherebyinanyotherjurisdictiontoanypersontowhomitisunlawfultomakeanofferor invitationinsuchjurisdiction.AnypersonintowhosepossessionthisDisclosureDocumentcomesisrequiredtoinformhimaboutandtoobserveanysuchrestrictions.AnydisputesarisingoutofthisIssuewillbesubjecttotheexclusivejurisdictionofthecourtsatMumbai.AllinformationconsideredadequateandrelevantabouttheIssuerhasbeenmadeavailableinthisDisclosureDocumentfortheuseandperusalof thepotential investorsandnoselectiveoradditional informationwouldbeavailable forasectionofinvestorsinanymannerwhatsoever.DISCLAIMEROFTHEARRANGERTOTHEISSUETheroleoftheArrangerintheassignmentisconfinedtomarketingandplacementoftheDebenturesonthebasisofthisInformationMemorandumaspreparedbytheIssuer.TheArrangerhasneitherscrutinizednorvettednorreviewednorhasitdoneanyduediligenceforverificationofthecontentsofthisInformationMemorandum. The Arranger shall use this Information Memorandum for the purpose of solicitingsubscription(s)fromEligibleInvestorsintheDebenturestobeissuedbytheIssueronaprivateplacementbasis. It is to be distinctly understood that the aforesaid use of this InformationMemorandumby theArrangershouldnotinanywaybedeemedorconstruedtomeanthattheInformationMemorandumhasbeenprepared, cleared, approved, reviewedorvettedby theArranger;nor should thecontents to thisInformationMemoranduminanymannerbedeemedtohavebeenwarranted,certifiedorendorsedbytheArrangersoastothecorrectnessorcompletenessthereof.TheIssuerhaspreparedthisInformationMemorandumandtheIssuerissolelyresponsibleandliableforitscontents.TheIssuerwillcomplywithall laws,rulesandregulationsandhasobtainedallregulatory,governmental, corporateandothernecessaryapprovals for the issuanceof theDebentures.The IssuerconfirmsthatalltheinformationcontainedinthisInformationMemorandumhasbeenprovidedbytheIssuerorisfrompubliclyavailableinformation,andsuchinformationhasnotbeenindependentlyverifiedby the Arranger. No representation or warranty, expressed or implied, is or will be made, and noresponsibility or liability is or will be accepted, by the Arranger or their affiliates for the accuracy,

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completeness, reliability, correctness or fairness of this Information Memorandum or any of theinformationoropinionscontainedtherein,andtheArrangerherebyexpresslydisclaimsanyresponsibilityorliabilitytothefullestextentforthecontentsofthisInformationmemorandum,whetherarisingintortorcontractorotherwise,relatingtoorresultingfromthisInformationMemorandumoranyinformationor errors contained therein or any omissions there from. Neither Arranger and its affiliates, nor itsdirectors,employees,agentsorrepresentativesshallbeliableforanydamageswhetherdirectorindirect,incidental, special or consequential including lost revenue or lost profits that may arise from or inconnection with the use of this document. By accepting this Information Memorandum, the EligibleInvestor accepts terms of this Disclaimer Clause of Arranger, which forms an integral part of thisInformationMemorandumandagreesthattheArrangerwillnothaveanysuchliability.EachpersonreceivingthisInformationMemorandumacknowledgesthatsuchpersonhasnotreliedontheArranger and/or its affiliates that may be associated with the Debentures in connection with itsinvestigationoftheaccuracyofsuchinformationoritsinvestmentdecision.Issuer hereby declares that the Issuer has exercised due-diligence to ensure complete compliance ofapplicabledisclosurenormsinthisInformationMemorandum.TheArranger:(a)isnotactingastrusteeorfiduciaryfortheinvestorsoranyotherperson;and(b)isundernoobligationtoconductany"knowyourcustomer" or other procedures in relation to any person. The Arranger is not responsible for: (a) theadequacy,accuracyand/orcompletenessofany information (whetheroralorwritten) suppliedby theIssueroranyotherperson inor inconnectionwith this InformationMemorandum;or (b) the legality,validity, effectiveness, adequacy or enforceability of this Information Memorandum or any otheragreement,arrangementordocumententeredinto,madeorexecutedinanticipationoforinconnectionwiththisInformationMemorandum;or(c)anydeterminationastowhetheranyinformationprovidedortobeprovidedtoanyinvestorisnon-publicinformationtheuseofwhichmayberegulatedorprohibitedbyapplicablelaworregulationrelatingtoinsiderdealingorotherwise.The Arranger or any of their directors, employees, affiliates or representatives do not accept anyresponsibilityand/orliabilityforanylossordamagearisingofwhatevernatureandextentinconnectionwith the use of any of the information contained in this document. By accepting this InformationMemorandum,investor(s)agree(s)thattheArrangerwillnothaveanysuchliability.DISCLAIMEROFTHEISSUEDEBENTURETRUSTEETheTrusteedoesnot guarantee the termsof payment regarding the Issue as stated in thisDisclosureDocumentandshallnotbeheldliableforanydefaultinthesame.NeithertheTrusteenoranyofitsaffiliates/ representatives make any representations or assume any responsibility for the accuracy of theinformationgiveninthisDisclosureDocument.DISCLAIMEROFTHERATINGAGENCYAsatthedateofthisDisclosureDocument,thecreditratingagencyhasassignedCAREAA;Stable(DoubleA;Outlook:Stable)byCARERatingsLimitedtotheNCDs.Theratingassignedbythecreditratingagencyisanopiniononcreditqualityandisnotarecommendationtobuy,sellorholdtherateddebtinstruments.Investorsshouldtaketheirowndecisions.Thecreditratingagencyhasbased itsratingon informationobtained fromsourcesbelievedbythemtobeaccurateandreliable.Thecreditratingagencydoesnot,however,guaranteetheaccuracy,adequacyorcompletenessofanyinformationandisnotresponsibleforanyerrorsoromissionsorfortheresultsobtainedfromtheuseofsuchinformation.Theratingmaybesubjecttorevisionorwithdrawalatanytimebythecreditratingagencyandshouldbeevaluatedindependentlyofanyotherrating.Theratingagencyhastherighttosuspendorwithdrawtheratingatanytimebasisoffactorssuchasnewinformationorunavailabilityofinformationoranyothercircumstances

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(A) ISSUERINFORMATION:NAMEANDADDRESSOFTHEFOLLOWING:Sr.No. PARTICULARS : DETAILS(i) REGISTEREDANDCORPORATEOFFICEOFTHEISSUER

• Name : J.K.CEMENTLIMITED• Address : KamlaTower,Kanpur,UttarPradesh208001,India• TeleNo : +91-512-2371478-81• FaxNo : +91-512-2332665/2399854• Email : shambhu.singh@jkcement.com

(iii) COMPLIANCEOFFICEROFTHEISSUER• Name : ShambhuSingh• Address : KamlaTower,Kanpur,UttarPradesh208001,India• TeleNo : +91-512-2371478-81• FaxNo : +91-512-2332665/2399854• Email : shambhu.singh@jkcement.com

(iv) CHIEFFINANCIALOFFICEROFTHEISSUER• Name : AjayKumarSaraogi• Address : KamlaTower,Kanpur,UttarPradesh208001,India• TeleNo : +91-512-2371478-81• FaxNo : +91-512-2332665/2399854• Email : Ak.saraogi@jkcement.com

(v) SOLEARRANGERTOTHEISSUE• Name : HDFCBankLimited

• Address : PeninsulaBusinessPark,4thFloor,TowerB,SenapatiBapatMarg,LowerParel,Mumbai–400013,India

• TeleNo : +912233958234• FaxNo : +912230788584• Email : darshan.jakhotiya@hdfcbank.com• Website : www.hdfcbank.com• ContactPerson : DarshanJakhotiya

(vi) DEBENTURETRUSTEEOFTHEISSUE

• Name : IDBITRUSTEESHIPSERVICESLIMITED

• Address :AsianBuilding,GroundFloor,17-R,KamaniMarg,BallardEstate,Mumbai–400001,Maharashtra,India

• TeleNo : +912240807000• FaxNo : +912266311776• Email : itsl@idbitrustee.com/services@idbitrusee.com• Website : www.idbitrustee.com

(vii) REGISTRARTOTHEISSUE• Name : NSDLDatabaseManagementLimited

• Address : 4thFloor,TradeWorldAWing,KamalaMillsCompound,SenapatiBapatMarg,LowerParel,Mumbai–400013

• TeleNo : 022-49142591• FaxNo : 022-49142503

• InvestorGrievanceEmailId

: relations.rta@nsdl.co.in

• Email : nileshb@nsdl.co.in;• Website : www.nsdl.co.in

(viii) AUDITORSOFTHEISSUERA Name : M/s.S.R.Batliboi&Co,LLP,CharteredAccountants.

• Address :2nd&3rdFloor,GolfViewCorporateTowerB,Sector42,SectorRoadGurugram,Haryana122002,IndiaE-mail:srbc@srb.in

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ICAIFirmRegistrationNo.301003E/E300005• TeleNo : +911244644000• FaxNo : +911244644050

(viiii) CREDITRATINGAGENCY

A Name : CreditAnalysisandResearchLimited

• Address :B-47,13thFloor,E-1Block,VideoconTower,JhandewalanExtension,NewDelhi–110055

• TeleNo : +911145333200• FaxNo : +911145333238• EmailId : Care@careratings.com• Website : www.careratings.com

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MANAGEMENT’SPERCEPTIONOFRISKFACTORS

ThefollowingaretherisksrelatingtotheCompany,theDebentures,andthemarketingeneralenvisagedbythemanagement of the Company. Potential investors should carefully consider all the risk factors in thisDisclosureDocumentcumApplicationLetterforevaluatingtheCompanyanditsbusinessandtheDebenturesbeforemakingany investment decision relating to theDebentures. TheCompanybelieves that the factorsdescribedbelowrepresenttheprincipalrisksinherentininvestingintheDebenturesbutdoesnotrepresentthatthestatementsbelowregardingrisksofholdingtheDebenturesareexhaustive.Theorderingoftheriskfactors is intended to facilitate ease of reading and reference and does not in any manner indicate theimportance of one risk factor over another. Investors should also read the detailed information set outelsewhereinthisDisclosureDocumentcumApplicationLetterandreachtheirownviewspriortomakinganyinvestmentdecision.INTERNALRISKFACTORS1. The recent outbreak of COVID-19 could have a significant adverse effect on our results of

operations,andcouldnegativelyimpactourbusiness,revenues,financialconditionandresultsofoperations.

AnationallockdownwasdeclaredbyGovernmentofIndiawitheffectfromMarch24,2020asaresultoftherecentoutbreakofCOVID-19virus,whichisspreadinginvariousjurisdictionsacrosstheworld(the“Pandemic”).Itisanticipatedthattheseimpactswillcontinueforsometime.AmongstvariousmeasuresannouncedtomitigatetheeconomicimpactfromthatPandemic,theReserveBankofIndiaissued circulars datedMarch 27, 2020 and April 17, 2020 (the “RBI circulars”) allowing lendinginstitutionstoofferamoratoriumtocustomersonpaymentofinstalmentsfallingduebetweenMarch1,2020andMay31,2020.

TheCOVID-19Pandemichasadverselyaffectedouroperations,leadingtosuspensionofoperationsacrossourunitswitheffect fromMarch25,2020onaccountof theoutbreakof thePandemic.Werestartedouroperationswithlimitedmanpowerafterreceivingrequisiteclearancesfromthedistrictadministrations.Thishadanadverseeffectonourfinancialsandledtocompanieslikeoursaskingouremployeestoworkfromhome.WhileeveryeffortisbeingmadetoensurenormaloperationsofourCompany,noassurancecanbemadethatourtechnologicalsystemswillfunctionsmoothlywhileouremployeesworkfromhome. Ifsuchasituationcontinues foranextendedperiodof time in future,reducedphysicalcontactwithcustomersand/orinadequacyoftechnologicalsystemstosupportallnormaloperationsunderworkfromhomesituationmayadverselyimpactourbusinessoperations.Theaboveriskscanthreatenthesafeoperationofourfacilitiesandcausedisruptionofoperationalactivities,environmentalharm,lossoflife,injuriesandimpactthewellbeingofourpeople.

We have resumed operations at our various plants gradually with the Government approval andfollowing the guidelines ofMinistry of HomeAffairs, Government of Indiawith closemonitoring/implementation of directives / guidelines issued by regulatory bodies from time to time. Ouroperationsaregraduallystabilizingafterrelaxationsinthelockdownandallthefourintegratedandtwosplitgrindingunitsofgreycementaswellasoneunitofwhitecement/wallputtyandoneunitofwallputtyonlyareoperational,anddespatchesaretakingplacefromalltheplants.Wearecloselymonitoringinternationalpet-cokepriceandavailabilityandtakingnecessaryactionstoensureanduninterrupted fuel supply. On account of lower power demand, power plant is not consistentlyoperatingresultinglowerflyashavailability.Therefore,wearesecuringflyashfromtheotherpowerplantshavingmoreleaddistance.PPbagsareusedforpackagingofcementandaremanufacturedbylabour intensive units. There is labour shortage on account ofmigration of labour in these units,however,uninterruptedsupplyhasbeenensuredonaccountofthelargepoolofbagsuppliers.Initially,wemetthesuppliesbyroadonaccountofthecurfewimposedintheNimbaheraplantareahavingtherailheadandresumedraildespatchesfromMay23,2020.Loweravailabilityoftruckdriversmayhaveimpact on the inbound and outbound logistics. Further, labour shortagemay have impact on theclearanceofmaterialattherailwayyardandturnaroundtimeoftherakes.Currently,majorportionofthecementdemandiswitnessedfromretailmarketinruralandthesemiurbanarea.Cementdemandisexpectedtoremainsluggishduetoshortageoflabourinurbanareas.

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Ourfinancialresourcesremainentirelyprotectedinspiteofadverseimpactonouroperationsduringthe lockdown. There has been continuous review of the cash flow position with reduction inoutstandingamountduringthelockdownperiod.Further,inventoriesofalltheinputmaterials,Semifinishedfoodsandcementatallthelocationsandinward/outwardmovementofmaterialshavebeenclosely monitored. All the vendors / contractors continue to work with us based on long termrelationshipandwearealsocommitted toallbusinessassociates.Further incase the lockdown isextended,itcouldresultinmutedeconomicgrowthorgiverisetoarecessionaryeconomicscenario,inIndiaandglobally,whichcouldadverselyaffectthebusiness,prospects,resultsofoperationsandfinancialconditionofourCompany.

2. Ourbusinessisdependentuponourabilitytominesufficientlimestoneforouroperations.

Limestoneisakeyrawmaterialusedinthemanufactureofcement.Limestoneconsumptionatourmanufacturingunits in India inFiscals2018,2019and2020wasapproximately9.02MnT,9.67MnT,and10.07MnT, respectively,whichwasalmost entirely servicedbyour captivemines.We sourcelimestoneforourmanufacturingplantsinIndiafromcaptivelimestonemineslocatedinproximitytoourplants.AsonMarch31,2020weoperated11limestoneminessituatedinRajasthanandKarnataka,with aggregate limestone reserves amounting to approximately 486.82MnT (includingproven andprobable), with remaining lease duration for the mines ranging from 12to 44 years. Further, inFujairah,UAE,wehavebeenallottedonelimestoneminewithreservessuitableforproductionofwhitecement.ThemineatFujairahisnowoperatingandtheleaseforthemineisvaliduntil2033.WehavealsoobtainedminingleasesforadditionallimestoneminesinthestateofMadhyaPradeshandareintheprocessofobtainingotherregulatoryandenvironmentalapprovalsforthesame.Theestimatedlimestonereservesintheseminesareapproximately518.5MnT(includingprovenandprobable).

Ifourminingrightsarerevokedornotreneweduponexpiration,orsignificantrestrictionson theusageoftherightsareimposedorapplicableenvironmentalstandardsaresubstantiallyincreased,ourabilitytooperateourplantsadjacenttotheaffectedminingsitescouldbedisrupteduntilalternativelimestonesourcesarelocated,whichcouldmateriallyandadverselyaffectourfinancialconditionandresultsofoperations.

PursuanttoarecentamendmenttotheMinesandMinerals(DevelopmentandRegulation)Act,1957and rules issued thereto, the grant of mining leases by respective state governments is to becompulsorilycarriedoutthroughanauctionprocess.Forthepurposeofparticipatingintheauctionofmininglease,anapplicantisalsorequiredtomeetcertaineligibilityrequirements.Forinstance,ifthevalueofestimatedresources ismore than₹1,000crores, theapplicant, includingan individual, isrequiredtohaveanetworthmorethan2%ofthevalueoftheestimatedresources.Therespectivestategovernmentsmayalsoprescribeadditionaleligibilityrequirementsfromtimetotime.Wecannotassureyouifwewillbeabletosuccessfullycompeteintheauctionprocessorbeabletoparticipateatall.Anyfailureonourparttoacquireminingleasesinthefuture,ortobeabletoretainourextantleases,mayhaveanadverseimpactonourbusinessandoperations.

Wealsodonot ownall the land in respect ofwhichwehave receivedmining leases. Such land isacquiredfromtherespectiveownersfromtimetotime,dependingonourrequirements.Wecannotassureyou thatwewill successfullyacquire (whetheron freeholdor leaseholdbasis), the lands towhichwe have obtainedmining rights from the respective state governments. Further, there arenumerousuncertaintiesinherentinestimatingquantitiesofreserves,includingmanyfactorsbeyondourcontrol.Ingeneral,estimatesofreservesbyindependentconsultantsorourCompanyarebaseduponseveralvariablefactorsandassumptions,suchasgeologicalandgeophysicalcharacteristicsofthe reserves, historical production performance from the properties, the quality and quantity oftechnicalandeconomicdata,extensiveengineeringjudgments,theassumedeffectsofregulationbyGoIagenciesandfutureoperatingcosts.Allsuchestimatesinvolveuncertainties,andclassificationsofreservesareonlyattemptstodefinethedegreeoflikelihoodthatthereserveswillresultinrevenueforourCompany.Forthosereasons,estimatesoftheeconomicallyrecoverablereservesattributabletoanygroupofpropertiesandclassificationofsuchreservesbasedonriskofrecovery,preparedbydifferentengineersorbythesameengineersatdifferenttimes,mayvarysubstantially.Inaddition,suchestimatescanbeandwillbesubsequentlyrevisedasadditionalpertinentdatabecomesavailablepromptingrevision.Actualreservesmayvarysignificantlyfromsuchestimates.Totheextentactualreservesaresignificantlylessthanourestimates,ourfinancialconditions,cashflowsandresultsof

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operationsare likely tobemateriallyandadversely impacted.While theseestimatesarebasedondetailedstudiesconductedby independentexperts,therecanbenoassurancethattheseestimateswould not be materially different from estimates prepared by other experts in accordance withdifferentinternationallyrecognizedcodesorstandards.

3. TheoperationsofourCompanyaresubjecttomanufacturingriskandmaybedisruptedbyfailureinthefacilities.

WeownandoperatefourgreycementplantsinRajasthanandKarnatakaandtwogrindingunitsoneinHaryanaandotherinUttarPradesh.Inaddition,weownandoperateawhitecementplantatGotan,Rajasthan(whichalsomanufactureswallputty)andanadditionalwallputtyplantatKatni,MadhyaPradesh.Further,wealsoownandoperateadualprocesscementplanthavingcapacitytoproducebothwhiteandgreycement(interchangeably)inFujairah,U.A.E.TheFujairahplantiscurrentlyusedformanufacturingwhitecementonly.AsonMarch31,2020,wehaveanaggregateinstalledcapacityof13.97MnTforgreycement,1.2MnT(including0.6MnTinUAE)forwhitecementand0.9MnTforwallputty.OurCompany’smanufacturingoperationscouldbedisruptedforreasonsbeyonditscontrol.Thesedisruptionsmayincludeextremeweatherconditions,fire,naturalcatastrophesorrawmaterialsupplydisruptions. In addition, there is a risk that production difficulties such as capacity constraints,mechanicalandsystemsfailures,construction/upgradedelaysordelaysinthedeliveryofmachinerymay occur, causing suspension of production and reduced output. For instance, in January 2016,clinkerextractionandcementproductionactivityatourMuddapurplantwastemporarilystopped,owingtodamagetotheclinkersilo.WhiletheoperationsattheplantresumedinFebruary2016bywayofalternatearrangements,therestorationoftheclinkersilowascompletedbyOctober2016.AnysignificantmanufacturingdisruptioncouldadverselyaffecttheabilityofourCompanytomakeandsellproducts,whichcouldhaveamaterialadverseeffectonitsbusiness,financialconditionandfutureresultsofoperations.In addition, due to the nature of our business and despite compliance with requisite safetyrequirementsandstandards,theoperationsofourCompanyaresubjecttooperatingrisksassociatedwith cement manufacturing. These hazards include storage tank leaks and ruptures, explosions,dischargesorreleasesofhazardoussubstances,manualhandling,exposuretodustandtheoperationof mobile equipment and manufacturing machinery. Our Company is also engaged in miningoperationsforlimestoneandissubjecttorisksassociatedwithmining,includingfires,explosionsandotheraccidentsat themine site.Theseoperating risksmay result inpersonal injuryandpropertydamageandintheimpositionofcivilandcriminalpenalties.Theoccurrenceofanyoftheseeventscouldhaveamaterial adverseeffecton theproductivity andprofitabilityofourplants andon thebusiness,financialcondition,cashflowsandfutureresultsofoperationsofourCompany.Inability to utilize our Company’s manufacturing capacities to optimum levels or streamline itsproductionplanningandprocurementprocesseswilladverselyimpactitsfutureresultsofoperation.

4. Wearesubjecttorisksassociatedwithourexpansionstrategy,whichistobefundedpartiallyoutoftheNetProceeds.

As part of our strategy, we are seeking to expand our manufacturing capacity and consequentlyexpandingourmarketreachinthecountry.WeintendtoutilizeapartoftheNetProceedsoftheIssuetowardscapitalexpenditureforthe1,500tpdclinkerexpansionatNimbahera,RajasthanFurther,intheeventweareabletosecuresuchdebtfinancing,anyinabilitytocompleteconditionsprecedentortomaintainexistingcovenantsstipulatedinthegoverningregulationsmayresultinafailuretoachievefinancialclosureandcouldadverselyaffectourabilitytocompleteexpansionplansinatimelymanneroratall,andmaysubjectustotimeandcostoverruns

5. Wemaybeunabletosustainourgrowthandmarginsinthewhitecementsegment.

Weareoneofthetwomajorplayersinthewhitecementmarketinthecountry,whotogetherhold90%oftotalmarketshareintermsofinstalledcapacity.(Source:IBM,MinistryofMinesReport)Ason

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March31,2020,wehaveanaggregateinstalledcapacityof1.20MnTPAforwhitecement(including0.6MnTPAinUAE)andof0.90MnTPAforwallputty.Wecannotassureyouthatwewillbeabletosustainthegrowthandmarginsrecordedbyusinthewhitecementsegment.WemanufacturewhitecementatourplantsinGotan,RajasthanandFujairah,UAE.Thereisariskthatproductiondifficultiessuchascapacityconstraints,mechanicalandsystemsfailures, construction/upgrade delays or delays in the delivery of machinery may occur, causingsuspension of production and reduced output. Any significant manufacturing disruption couldadverselyaffecttheabilityofourCompanytomanufactureanddistributewhitecement.The operations at these plants could also be disrupted for reasons beyond our control, includingextremeweatherconditions,fire,naturalcatastrophesorrawmaterialsupplydisruptions,includingbywayofchangesingovernmentalpolicyandjudicialintervention.Forinstance,onOctober24,2017,theSupremeCourtof Indiabanned theuseofpetcoke in thestatesofUttarPradesh,HaryanaandRajasthanwitheffectfromNovember1,2017.Theban,however,wassubsequentlyrelaxedforuseofpetcokeinthecementindustry.Similarly,inAugust2018,theGovernmentofIndiabannedtheimportofpetcokeforuseasfuelinthecountry,withanexceptionforimportofpetcokeforuseasfeedstockor in themanufacturingprocess in,amongothers, thecement industry.Whileadequateexceptionshavebeenmade for the cement industry in recentpolicydecisionsbanning theuseand importofpetcoke,wecannotassureyou thatwewill continue toenjoysuchexemptionsor thatany furtherprohibitionsormorestringentcompliancerequirementswillnotbeimposedonus.Petcokeisakeyfuelusedinthewhitecementmanufacturingprocess.Intheeventthesupplyofpetcokeisinterrupted,wewouldberequiredtorelyonmoreexpensivealternatives,includingfueloil.Anysuchbanonimportoruseofpetcokemaythereforeaffectourproductionvolumes,aswellasprofitability.Further,pursuanttoarecentamendmenttotheMinesandMinerals(DevelopmentandRegulation)Act,1957andrulesissuedthereto,thegrantofminingleasesinIndiabyrespectivestategovernmentsistobecompulsorilycarriedoutthroughanauctionprocess.Wecannotassureyouifwewillbeabletosuccessfullycompeteintheauctionprocess,ortoparticipateatall.Anyfailureonourparttoacquireminingleasesforwhite-cementgradelimestone,ortobeabletoretainourextantleases,mayhaveanadverseimpactonwhitecementproduction.Inthefuture,wemayalsofacecompetitionfromnewentrantsinthesegment,whomightgainaccesstowhitecementgradelimestonereservesthroughtheauctionprocess.Someoftheseplayersmayalreadyhaverobustdistributionnetworks,whichcouldeat into ourmarket share. So as to retain our dominant position in the segment,wemay also berequiredtoincuradditionalexpendituretowardsexpandingourproductioncapacity,securinglargerlimestone reserves through the auction process, and also strengthening and incentivising ourdistributionnetwork.

6. Wearedependentuponthecontinuedsupplyofpowerandfuel,thesupplyandcostofwhichcan

besubjecttosignificantvariationduetofactorsoutsideourcontrol.

Weusesignificantamountsofenergy,includingelectricityandcoal,inthemanufacturing,distributionandsaleofourproducts.Powerand fuelexpensesareourmost significantexpensesand togethercomprised23%,25%and24%ofourTotalExpensesinFiscals2018,2019and2020,respectively,on a consolidatedbasis. A significant portion of electricity requirements at our plants inMangrol,Nimbahera,MuddapurandGotanismetbyourthermalandwasteheatrecoverypowerplants,havinganaggregatecapacityofapproximately125.70MW,asonMarch31,2020.Further,wealsoprocureelectricityfromstateelectricityboardsandprivatesuppliersthroughthegridatmarketrates,acrossour plants, including in Fujairah, UAE. If the power supply to one ormore of ourmanufacturingfacilitiesisdisrupted,wemaynotbeabletomakealternativearrangementsinatimelymanner,oratall,andanysuchalternativearrangementsmaybeontermsthatarenotfavourabletous.Accordingly,anysuchdisruptioncouldadverselyaffectthenormaloperationsoftheaffectedmanufacturingfacility,reduce theeconomiesof scalewhichwe currently enjoyandwouldhaveanadverseeffectonourbusinessandresultsofoperations.Additionally,wealsousecoke,petcoke, ligniteand fueloilas fuel forclinkerisation,aspartofourmanufacturing processed.We do not enter into long term agreementswith our suppliers of coal,petcokeandlignite,andinsteadprocuresuchfuelonthebasisofspotorfortnightlycontractswithoursuppliers.Whilebothourclinkerprocessandourcaptivethermalpowerplanthavethecapabilityto

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usealternatefuelsofvaryingcalorificvalue,absenceoflongtermsupplycontractssubjectustoriskssuchaspricevolatilityandfailuretosourcefuelintime,whichwouldresultinadelayinmanufacturingof the final product. For instance, in the past, there have been instances where the lignite madeavailablewasinsufficientandwhilewewereabletosupplementourrequirementswithimportedcoal,wecannotassureyouthatsuchdisruptionsinsupplyofsuchfuels,asthecasemaybe,willnottakeplaceorthatwewillbeabletoanticipateshortfallsintimetocompensatewithothersourcesineveryinstance.Changesingovernmentalpolicyandjudicialinterventionmayalsoleadtodisruptionofourfuelsupply.OnOctober24,2017,theSupremeCourtofIndiabannedtheuseofpetcokeinthestatesofUttarPradesh,HaryanaandRajasthanwitheffectfromNovember1,2017.Theban,however,wassubsequently relaxed for use of petcoke in the cement industry. Similarly, in August 2018, theGovernmentofIndiabannedtheimportofpetcokeforuseasfuelinthecountry,withanexceptionforimportofpetcokeforuseasfeedstockorinthemanufacturingprocessin,amongothers,thecementindustry.Whileadequateexceptionshavebeenmadeforthecementindustryinrecentpolicydecisionsbanningtheuseandimportofpetcoke,intheeventanysuchbansareextendedtothecementindustry,it may adversely impact our fuel supply or cost thereof, affecting our production volumes andprofitability.Energyprices,inparticular,havebeenandmaycontinuetobevolatile.Factorssuchasinternationalpoliticalandmilitaryinstability,adverseweatherconditionsandothernaturaldisastersmaydisruptfuel supplies and further increase prices in the future. Aswe are often responsible for deliveringproductstothedealersorcustomers,asthecasemaybe,wearefurtherexposedtoincreasedenergypricesasacomponentofourtransportationcosts.Whilewegenerallyattempttopassincreasedcosts,includinghigherenergycosts,ontoourcustomers,pricingpressurefromourcompetitors,themarketpowerofourcustomersorotherpricingfactorsmaylimitourabilitytodoso,andanyincreasesinenergypricescouldhaveamaterialadverseeffectonourbusiness,financialconditionandresultsofoperations.Therecanbenoassurancethatwewillhaveanadequate,uninterruptedandcosteffectivesupplyofpowerandfuelrequiredforourmanufacturingprocess,thelackofwhichcoulddisruptouroperations,therebyadverselyaffectingourbusiness,financialconditionandresultsofoperations.

7. Wearedependentonthirdpartydistributors,withwhomwedon’thavebindingtermagreements

Wesupplyourproductstoindustrialandretailconsumers,throughvariouschannelsincludingdealersandretailers.Ourwhitecementandwallputtyproductsaresuppliedpan-India,throughanetworkofover56,712dealersandretailers,asonMarch31,2020.Inthegreycementsegment,wearepresentinover17states/union territories, throughanetworkofover14,007dealersandretailers, asonMarch31,2020.We do not enter into any short or long term agreements with our distributors, and conduct ourdistribution business through purchase orders. Any adverse experience of distributors (whetherdealersorretailers),ornegativepublicityattractedbysuchdistributorscouldadverselyaffectourreputationandbrandandbusinessprospects.Aswedonothaveanyexclusivityarrangementswithourdistributors,ourdistributorsmayalsofreelydealwithourcompetitors. If thetermsofferedtosuchdistributorsbyourcompetitorsaremorefavourablethanthoseofferedbyus,theymaydeclinetodistributeourproductsandterminatetheirarrangementswithus.Insuchacase,ourproductsmaynotattainasmuchreachasourcompetitorsinthemarketandwemaylosemarketshare.We are also continuously seeking to increase penetration through distribution by engagingdistributorstargetedatdifferentmarketsandgeographies.Wecannotassureyouthatwewillbeableto successfully identify and appoint new distributors. Further, we may not be able to enter intodistributionarrangementsinnewgeographicregionsduetoexistingrelationshipsofourcompetitorswith distributors in such areas, including any exclusive arrangements that may be in place. Anyinabilitytoenterintonewgeographicmarketsorpenetrateexistingmarketscouldadverselyaffectourgrowth,futureprospects,financialconditionandresultsofoperation.

8. Disruptionsintransportationofrawmaterialsandfinishedproductscouldaffectourbusiness.

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Theproductionofcementisdependentonasteadysupplyofvariousrawmaterials.Theseinputsaretransported to our plants by road, and cement is transported to our customers by road and railtransport.Transportofourinputsandfinishedproductsissubjecttovariousbottlenecksandotherhazardsbeyondourcontrol,includingpoorroadandothertransportinfrastructure,accidents,adverseweather conditions, strikes and civil unrest. Either an increase in the price of transportation orinterruptionsintransportationofourinputsorfinishedproductscouldhaveanadverseeffectonourbusiness,financialconditionandresultsofoperations.Inaddition,cementisaperishableproductasitsqualitydeterioratesuponcontactwithmoistureoveraperiod.Therefore,prolongedstorageorexposuretomoistureduringtransportmayresultinsuchcementstocksbeingwrittenoff.Similarly,ourcementissoldinbagsthatmaysplitopenduringtransport,againresultinginsuchstockbeingwritten off. For instance, there were disruptions in transportation of raw materials and finishedproductsduetonationwidelockdown.Formoredetails,see–“RiskFactor–InternalRiskFactors-TherecentoutbreakofCOVID-19couldhaveasignificantadverseeffectonourresultsofoperations,andcouldnegatively impactourbusiness, revenues, financial conditionand resultsofoperations.”Therecanbenoassurancethatanysuchdisruptionwillnotoccurinthefuturebecauseofthesefactorsandthatsuchdisruptionswillnotbematerial.We typically use third party transportation providers for the supply of our rawmaterials and fordeliveries of ourproducts to our customers.Transportation strikesbymembersof various Indiantruckers’unionshavehadinthepast,andcouldhaveinthefuture,anadverseeffectonourreceiptofsuppliesandourabilitytodeliverourproducts.Inaddition,transportationcostshavebeensteadilyincreasing. InFiscals2018,2019,2020, freightsand forwardingamounted to28%,26%and24%,respectively,ofourtotalexpenditure.Continuingincreasesintransportationcostsorunavailabilityoffreightsandforwardingforourproductsmayhaveanadverseeffectonourbusinessandresultsofoperations.Anincreaseinthefreightcostsorunavailabilityofcarriersfortransportationofourproductstoourexportmarketsmayalsohaveanadverseeffectonourbusiness,operatingmargins,andresultsofoperations.

9. Constructionactivity,whetherresidentialornon-residential,isinfluencedbymanyfactors,andanyreductionintheactivityinoneorbothmarketscouldhaveamaterialadverseeffectonus

Ourresultsofoperationscanvarymaterially in response tomarketconditionsandchanges in thedemandforourproducts.Historically,demandforourproductshasbeencloselytiedtoconstructionactivity,residential,non-residentialandinfrastructurerelatedinIndia.Oursuccessandfuturegrowthprospectsdepend,toasignificantextent,onconditionsintheseendmarketsandthedegreetowhichthesemarketsarestronginthefuture.Residentialconstructionactivitylevelsareinfluencedbyandsensitivetoanumberoffactors,includingmortgageavailability,thecostoffinancingahome(inparticular,mortgagetermsandinterestrates),unemployment levels, household formation rates, gross domestic product, residential vacancy andforeclosurerates,demandforsecondhomes,existinghousingprices,rentalprices,housinginventorylevels,buildingmixbetweensingle-andmulti-familyhomes,consumerconfidence,seasonalweatherfactors, the available labour pool and government policy and incentives. Similarly, non-residentialconstructionactivity isprimarilydrivenby levelsofbusiness investment,availabilityof creditandinterestrates,aswellasmanyofthefactorsthatimpactresidentialconstructionactivitylevels.AsperCRISIL,theCementdemandwillriseto4-5%CAGRuptoFiscal2025asagainst5%CAGRduringfiscal2016-2020ledbyraftofinfrastructureinvestmentandmoderaterevivalinhousingdemand.Thesituationincementspacewasalreadysubduedwithdemandslippingto2%YearonYearinFiscal2020visavisgrowthof12%and9%inFiscal2019andFiscal2018,respectively.InFiscal2021therewouldbe12-15%declineyearonyearduetoCovid19pandemicwithGovernmentimposinglockdowninallstates.

10. Weengageinahighlycompetitivebusinessandanyfailuretoeffectivelycompetecouldhaveamaterialadverseeffectonus.

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ThecementindustryinIndiaishighlyfragmentedandcompetitive.WefacecompetitionfromdomesticcementcompanieswhichoperateintheIndianmarket,aswellascompaniesthatarejointventureswith international cementcompanies.Thesecompetitorsmay limitouropportunity toexpandourmarketshareandmaycompetewithusonpricingofproducts.Someofourcompetitorsarelargerthanweare,aremorediversified,withoperationsacrossIndia,havegreaterfinancialresourcesthanwedo,haveaccesstoabettertechnology,cheapercostofcapitalandmaybeabletoproducecementmoreefficientlyortoinvestlargeramountsofcapitalintotheirbusinesses.Ourbusinesscouldbeadverselyaffectedifweareunabletocompetewithourcompetitors.Forexample,ifanyofourcurrentorfuturecompetitorsdevelopmoreefficientproductionfacilities,enablingthemtoproducecementandclinkeratasignificantlylowercostandsellatlowerpricesthanus,wemayberequiredtolowerthepriceswecharge forourproductsandourbusiness, cash flowsandresultsofoperationscouldbeadverselyimpacted.Current and future competitors may also introduce new and more competitive products andsupporting services, make strategic acquisitions or establish cooperative relationships amongthemselvesorwiththirdparties,includingdistributorsofourproducts,therebyincreasingtheirabilitytoaddresstheneedsofourtargetcustomers.Ifwecannotcompeteinpricing,providecompetitiveproductsorservicesorexpandintonewmarkets, thiscouldhaveamaterialnegativeeffectonourbusiness,financialconditionandprospects.

11. ThebusinessandactivitiesofourCompanyareregulatedbytheCompetitionAct,2002,whichmayrestrainourflexibilityinpricingourproducts.

The Competition Act, 2002, as amended (“Competition Act”) regulates, among others, practiceshavinganappreciableadverseeffectoncompetition(“AAEC”)intherelevantmarketinIndia.UndertheCompetitionAct,anyformalorinformalarrangement,understandingoractioninconcert,whichcauses or is likely to cause an AAEC is considered void and results in imposition of substantialpenalties. Furthermore, any agreement among competitors which directly or indirectly involvesdeterminationofpurchaseorsaleprices,limitsorcontrolsproduction,sharesthemarketbywayofgeographicalareaornumberofcustomersintherelevantmarketordirectlyorindirectlyresultsinbid-riggingorcollusivebiddingispresumedtohaveanAAECintherelevantmarketinIndiaandisconsideredvoid.TheCompetitionActalsoprohibitsabuseofadominantpositionbyanyenterprise.OnMarch4,2011,theGovernmentofIndiaissuedandbroughtintoforcethecombinationregulation(“Merger Control”) provisions under the Competition Act with effect from June 1, 2011. Theseprovisionsrequireacquisitionsofshares,votingrights,assetsorcontrolormergersoramalgamationsthatcrosstheprescribedassetandturnoverbasedthresholdstobemandatorilynotifiedtoandpre-approvedbytheCompetitionCommissionofIndia("CCI").Additionally, onMay11, 2011, theCCI issued theCompetitionCommissionof India (Procedure inregardtothetransactionofbusinessrelatingtocombinations)Regulations,2011,asamended,whichsetsoutthemechanismforimplementationoftheMergerControlregimeinIndia.TheCompetitionActaimsto,amongothers,prohibitallagreementsandtransactionswhichmayhaveanAAECinIndia.Further,theCCIhasextra-territorialpowersandcaninvestigateanyagreements,abusiveconductorcombinationoccurringoutsideIndiaifsuchagreement,conductorcombinationhasanAAECinIndia.IntheeventweenterintoanyagreementortransactionthatisheldtohaveanAAEConcompetitionin the relevant market in India, the provisions of the Competition Act will be applicable. Anyprohibition or substantial penalties levied under the Competition Act could adversely affect ourfinancialconditionandresultsofoperations,whichinturnmayhaveamaterialadverseimpactourbusinessorprospects,andourabilitytomakedistributionstotheshareholders.Forinstance,theCCIhasimposedpenaltiesof₹12,854lakhsand₹928lakhsonourCompany,intwoseparateordersdatedAugust 31, 2016 and January19, 2017, respectively for alleged contraventionof provisions of theCompetitionAct2002.OurCompanypreferredappealsbefore theCompetitionAppellateTribunal(“COMPAT”)againsttheaboveorders.ThenotificationdatedMay26,2017issuedbytheMinistryofFinancereplacedtheCOMPATwiththeNationalCompanyLawTribunal(“NCLAT”)witheffectfromMay26,2017.SubsequentlyNCLAT,NewDelhibyitscommonorderdatedJuly25,2018dismissedboththeappealsi.e.AppealNo.1andAppealNo.2andreaffirmedthequantumofpenalty.Aggrievedbythesaidorder,ourCompanyfiledanappealdatedSeptember18,2018beforetheSupremeCourtofIndiaundersection53ToftheCompetitionActtosetasidethecommonorderdatedJuly25,2018,

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wherethematteriscurrentlypending.Further,thismattermayimpactthegoingconcernstatusoftheCompanyanditsfutureoperations.TherecanbenoassurancethatwewillbesuccessfulinourappealbeforetheSupremeCourt.Further,anysimilarproceedingsinthefuturemayrestrainourflexibilityinpricingourproducts,andhaveamaterial adverse effect on our business, prospects, results of operations, cash flows and financialcondition.

12. Wemay be unable to respond to technological advances and emerging industry standards in

relationtotheproductswemanufacture.

OurgreycementplantsatNimbaheraandMangrolhavinggreycementcapacityof3.5MnTPAwereacquiredaspartoftheerstwhilecementdivisionofJaykayEnterprisesLimited(thenknownasJ.K.SyntheticsLimited),witheffect fromNovember4,2004.Subsequentlycapacityofgreycementhasbeen increased to 14MnTPA pan India by adopting state of art technology. However, the earliercapacity of 3.5 Mn TPA bears high fuel costs whichmaymake newer plants or equipment morecompetitive than ours ormay require us tomake additional capital expenditures to upgrade ourfacilities.

13. Creditandnon-paymentrisksofourcustomers,especiallyduringtimesofeconomicuncertaintyandtightcreditmarkets,couldhaveamaterialadverseeffectonus.

Mostofoursalestotradeandnon-tradecustomersareonacreditbasis,withstandardpaymenttermsofbetween15to60days.Whilewegenerallymonitortheabilityofourcustomerstopaytheseopencredit arrangements and limit the creditwe extend towhatwebelieve is reasonablebasedon anevaluationofeachcustomer’sfinancialconditionandpaymenthistory,wemaystillexperiencelossesbecause of a customer’s inability to pay. As a result, while wemaintain what we believe to be areasonableallowance fordoubtful receivables forpotential credit lossesbaseduponourhistoricaltrends and other available information, there is a risk that our estimates may not be accurate,particularlyintimesofeconomicuncertaintyandtightcreditmarkets.Theremayalsobedelaysassociatedwiththecollectionofreceivablesfromourclients.AsonMarch31,2020,Rs.744.26lakhsofouraccountsreceivablewereoutstandingforaperiodofmorethansixmonths. Our operations involve significant working capital requirements and inability to collectreceivables from our clients in a timely manner or at all, or inadequate provisions for doubtfulreceivables,couldadverselyaffectourbusiness,resultsofoperationsandcashflow.

14. The seasonality of ourbusinessand its susceptibility toadverseweatherandother conditions

couldhaveamaterialadverseeffectonus.

Demandforourproductsinsomemarketsistypicallyseasonal,asclimaticconditions,particularlythemonsoon,affectthelevelofactivityintheconstructionindustry.Theseasonalnatureofourbusinesshasledtovariationinourquarterlyresultsinthepastandmaycontinuetodosointhefuture.Constructionactivitycanalsobeaffectedinanyperiodbyadverseweatherconditionssuchasstorms,torrentialrainsandfloods,naturaldisasterssuchasfiresandearthquakesandsimilarevents,anyofwhich could reduce demand for our products, push back existing orders to later dates or lead tocancellations.Furthermore,ourability todeliverproductsontimeoratall toourcustomerscanbesignificantlyimpededbysuchconditionsandevents,suchasthesedescribedabove.Theseconditions,particularlywhenunanticipated,canleavebothequipmentandpersonnelunderutilized.Thegeneralseasonalityofourbusinessandanysevereorprolongedadverseweatherconditionsorothersimilareventscouldhaveamaterialadverseeffectonourbusiness,financialcondition,cashflowsandresultsofoperations.

15. Wearerequiredtodeploylargeamountsofworkingcapitalinadditiontoourcapitalexpenditurewhichwe fund through amixture of debt and equity. Thismay lead to higher fixed costs andconsequently,ourearningsmaybesensitivetochangesinourproductionandsalesvolumes.

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Duetothehighlevelsoffixedcapitalrequiredtoproducecement,ourprofitabilityissusceptibletosignificant changes in volume. Althoughwe believe that our current cash balance, alongwith ourprojected internal cash flows andour available financing resources,will provide sufficient cash tosupportourcurrentlyanticipatedoperatingandcapitalneeds,ifweareunabletogeneratesufficientcashtooperateandmaintainthepropertyandmachinerynecessarytooperateourcementbusiness,wemay be required to reduce or delay planned capital expenditures or incur additional debt. Inaddition,giventheleveloffixedandsemi-fixedcostswithinourcementbusinessandatourcementproductionfacilities,decreasesinvolumescouldhaveanadverseeffectonourfinancialcondition,cashflow,resultsofoperationsandliquidity.

16. Insufficientinsurancecoveragecouldhaveamaterialadverseeffectonus.

Wemaintainindustrialandfireinsurancecoverageforourplants,thatincludematerialdamagestopropertyandbusinessinterruption,subjecttospecificexclusions.Wealsomaintainfireinsuranceforproducts stored at our godowns.Webelieve that our insurance arrangements are consistentwithindustry standards for cementmanufacturers in India. However, our insurance programdoes notcover, or may not adequately cover, every potential risk associated with our business and theconsequences thereof. Further,we cannot assure you that any claim under the insurance policiesmaintainedbyuswillbehonouredfully,inpartorontime.Inaddition,marketconditionsoranysignificantclaimorseveralclaimsmadebyoragainstuscouldcauseourpremiumsanddeductiblestoincreasesubstantiallyand,insomeinstances,ourcoveragemaybereducedorbecomeentirelyunavailable.Inthefuture,wemaynotbeabletoobtainmeaningfulcoverageatreasonableratesforavarietyofrisks,includingcertaintypesofenvironmentalhazardsandon-goingregulatorycompliance.Totheextentthatwesufferlossordamage,forwhichwedidnotobtainormaintaininsurance,andwhichisnotcoveredbyinsurance,exceedsourinsurancecoverageorwhereourinsuranceclaimsarerejected,thelosswouldhavetobebornebyusandourresultsofoperations,cashflowsandfinancialperformancecouldbeadverselyaffected.

17. Weregularlyworkwithhazardousmaterialsandactivitiesinouroperationsmaycauseinjuriestopeopleorproperty.

Manufacturing and mining sites are inherently dangerous workplaces. Our sites often put ouremployeesandothersnearwithlargepiecesofmechanizedequipment,movingvehicles,chemicalandmanufacturingprocesses,heavyproductsanditemsandhighlyregulatedmaterials.Asaresult,wearesubject toavarietyofhealthandsafety lawsandregulationsdealingwithoccupationalhealthandsafety.Unsafeworksiteshavethepotentialtoincreaseemployeeturnoverandraiseouroperatingcosts and impact our reputation. Further, thesehazards can causepersonal injury and loss of life,catastrophic damage or destruction of property and equipment aswell as environmental damage,whichcouldresultinsuspensionofoperationsandtheimpositionofcivilorcriminalliabilities.Forinstance,acriminalcomplaint ispendingbefore the JudicialMagistrateFirstClass,MudholagainstKailashNathKhandelwal,DirectorofourCompany,forallegedviolationofrule84oftheKarnatakaFactoriesRules,1969punishableundersection92oftheFactoriesAct,1948inrelationtoanaccidentatJ.K.CementWorks,Muddapurthatledtodeathofaworker.Thelossorshuttingdownofourfacilitiescould disrupt our business operations and adversely affect our results of operations, financialconditionandreputation.Wecouldinthefuturefaceclaimsandlitigationfiledonbehalfofpersonsalleginginjurypredominantlybecauseofoccupationalexposuretohazardsatourfacilitieswhichcouldhave an adverse impact on our business. Any failure tomaintain safe work sites or violations ofapplicablelawcouldexposeustosignificantfinanciallossesandreputationalharm,anyofwhichcouldhaveamaterialadverseeffectonourbusiness,financialconditionandresultsofoperations.

18. We are required to obtain, renew ormaintain statutory and regulatory permits, licenses andapprovalstooperateourbusinessandourmanufacturingfacilities,andanydelayorinabilityinobtaining,renewingormaintainsuchpermits,licensesandapprovalscouldresultinanadverseeffectonourresultsofoperations.

Werequirecertainstatutoryandregulatorypermits,licenses,registrationsandapprovalstooperateour business.Wewill be required to renew suchpermits, licenses and approvals, andobtainnewpermits,licensesandapprovalsforanyexistingorproposedoperations.Whilewebelievethatwewill

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beabletoreneworobtainsuchpermits,licensesandapprovalsasandwhenrequired,therecanbenoassurancethattherelevantauthoritieswillissueanyofsuchpermitsorapprovalsinthetime-frameanticipatedbyusoratall.Failurebyustorenew,maintainorobtaintherequiredpermitsorapprovalsmay result in the interruption of our operations and may have a material adverse effect on ourbusiness,financialconditionandresultsofoperations.Further,thesepermits,licensesandapprovalscouldbesubjecttoseveralconditions,andwecannotassureyouthatweandourSubsidiarieswouldbeabletocontinuouslymeetsuchconditionsorbeabletoprovecompliancewithsuchconditionstothestatutoryauthorities.Anynon-compliancemayleadtocancellation,revocationorsuspensionofrelevantpermits,licensesorapprovals,whichmayresultintheinterruptionofouroperationsandmayadverselyaffectourbusiness,financialconditionandresultsofoperations.

19. Ouroperationsaresubjecttoenvironmental,labourandotherregulations.

We are subject to environmental, health and safety and other regulatory and/ or statutoryrequirementsinthejurisdictionsinwhichweoperate.Ourmanufacturingoperationsmaygeneratepollutantsandwaste,someofwhichmaybehazardous.Weareaccordinglysubjecttovariousnational,state, municipal and local laws and regulations concerning environmental protection in India,including lawsaddressing thedischargeofpollutants into theair andwater, themanagementanddisposalofanyhazardoussubstances,andwastesandtheclean-upofcontaminatedsites.Wemayincursubstantialcostsincomplyingwithenvironmentallawsandregulations,includingforreasonsofinvestment in, among other things, environmental monitoring, pollution control equipment, andemissionsmanagement.Wecannotassureyouthatcompliancewithsuchlawsandregulationswillnotresult indelays incurtailmentofproduction,amaterial increaseinourcostsorotherwisehaveanadverseeffectonourfinancialcondition,cashflowsandresultsofoperations.Ifweweretobeinnon-compliancewithanysuchlawsregulations,wecouldfurtherbeexposedtocivilpenalties,criminalsanctionsandrevocationofkeybusinesslicenses.

Wearealsosubjecttolawsandregulationsgoverningrelationshipswithemployees,insuchareasasminimumwageandmaximumworkinghours,overtime,workingconditions,hiringandterminatingofemployees,contractlabourandworkpermits.Furthermore,thesuccessofourexpansionstrategyiscontingentupon,amongotherthings,receiptofallrequiredlicenses,permitsandauthorisations.Changesor concessions requiredby regulatory authorities could also involve significant costs anddelayorpreventcompletionoftheconstructionoropeningofaplantorcouldresultinthelossofanexistinglicense.The legal framework governing environmental protection, labour welfare and safety in India arebecomingmorestringent,andthescopeandextentofsuchdevelopments,includingtheireffectonouroperations, cannot be predicted with any certainty. Stricter laws and regulations, or stricterinterpretationoftheexistinglawsandregulations,mayimposenewliabilitiesonusorresultintheneed for additional investment, either of which could affect our business, financial condition orprospects.

20. Labourdisruptionsandotherunionactivitycouldhaveamaterialadverseeffectus.

AsofMarch31,2020,wehadatotalof3,678full-timeemployees,includingtrainees.Further,asofMarch31,2020,approximately2,696contractlabourerswereworkingatourmanufacturingfacilities.AsignificantportionoftheworkersofourCompany,includingcontractlabourers,arerepresentedbylabourunions.Whileweconsiderthecurrentlabourrelationstobegood,therecanbenoassurancethatourCompanywillnotexperience futuredisruptionsto itsoperationsduetodisputesorotherproblemswithitsworkforce,whichcouldadverselyaffectitsbusinessandfutureresultsofoperations.Forinstance,awritpetitionfiledbythesecretaryofNirmanMazdoorPanchayatSangamispendingbeforetheHighCourtofDelhiagainstourCompanyandsixothercementcompaniesprayingfor,interalia,issueofawritofmandamusforpaymentofminimumwagestotheworkersinvolvedinloadingandunloadingworkofcementaspertheminimumwagesprescribedbytheGovernmentofDelhiandprovisionofwelfaremeasurestosuchworkersundertheUnorganizedWorkers’SocialSecurityAct,2008.

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OurCompanyemployssizeablecontractlabourersatitsfacilities.Thenumbersofcontractlabourersvaryfromtimetotimebasedonthenatureandextentofworkcontractedtoindependentcontractors.Whilewebelievethatsuchahighproportionofemployeesoncontractgivesusthenecessaryflexibilityand helps us run our business in an efficient and cost-effective manner, it also makes us moresusceptible to sudden shortages and lack of skilled personnelwhile competing for themwith ourcompetitors in themarketweoperate.All contract labourers engagedat our facilities are assuredminimumwages thatare fixedby therespectivestategovernment fromtime to time.Anyupwardrevision of suchminimumwages, or offer of permanent employment, or the unavailability of therequirednumberofcontractlabourers,mayalsoadverselyaffectourbusinessandfutureresultsofourCompany’soperations.Ifweareunabletomanageincreasesinouroverheadcosts,thiscouldhaveamaterialadverseeffectonourbusiness,prospects,resultsofoperations,cashflowsandfinancialcondition.

21. Ouroperationsaredependentonourability toattractandretainqualifiedpersonnelandanyinabilityonourparttodoso,couldadverselyaffectourbusiness,cashflow,resultsofoperationsandfinancialcondition.

Our success is, to a large extent, attributable to the vision, expertise andmanagerial skills of ourdirectorsandmanagementteam.Inviewoftheirexperienceinandknowledgeofthecementbusiness,theircombinedinvolvementisimportanttoourfutureprospects.Competitionforqualifiedpersonnelwithrelevantindustryexpertiseisintenseandthelossofservicesofourkeypersonnelmayadverselyaffectourbusiness,cashflow,resultsofoperationsandfinancialcondition.Wemayrequirea longperiod of time to hire and train replacement personnelwhen qualified personnel terminate theiremployment with our Company. We may also be required to increase our levels of employeecompensationmorerapidlythaninthepasttoremaincompetitiveinattractingemployeesthatourbusinessrequires.Wecannotassureyouthatwewillbeabletoretaintheseindividualsorfindadequatereplacementsinatimelymanner,oratall.Anyinabilityonourparttoattractandretainqualifiedpersonnelandseniormanagement could adversely affect our business, cash flow, results of operations and financialcondition.

22. Any inability toprotectour intellectualpropertyor claims thatwe infringeon the intellectual

propertyrightsofotherscouldhaveamaterialadverseeffectonus.

Webelieve thatwehave ahighdegreeof brand recall and trust in India,which is oneof our keystrengths in a highly competitive industry.Wehave obtained 64 trademark registrations in India,includingforkeybrandnamessuchas“J.K.SuperCement(BuildSafe)”,as“J.K.SuperStrong(BuildSafe)”,“J.K.CementWhitemaxx”,,“JKCementWallmaxx”,“J.K.PrimaxX”,“J.K.CementTilemaxx”and“J.K.CementGypsomaxx”.Additionally,fromtimetotime,wealsoobtaintrademarkregistrationsincertainforeignjurisdictionswhereorproductsaresold.Further,wehavealsoappliedforregistrationof38othertrademarks,whicharependingatvariousstagesoftheregistrationprocess.However, there can be no assurance that third parties will not infringe our intellectual property,causingdamagetoourbusinessprospects,reputationandgoodwill.Wemaynotbeabletopreventinfringement of our trademarks and a passing off action may not provide sufficient protection.Additionally,wemayberequiredtolitigatetoprotectourtrademarks,whichmayadverselyaffectourbusiness.Wecannotassureyouthatwewillsuccessfullyobtainorenforceourtrademarksandanysucheventcouldhaveanadverseeffectonourbusiness,cashflow,resultsofoperationsandprospects.

23. InabilitytoeffectivelyachieveoperationalefficiencybyitsSubsidiariesandmarketitsproductininternationalmarket.

WehadinvestedinourFujairahPlantwithaviewofcapitalisingonthegrowingdemandforcementasaresultofafast-growingconstructionsectorintheGCCregion.However,therewasaslowdownofconstructionintheGCCregiononaccountofhugecorrectionsinthepriceofcrudeoil.Thisresultedinourplantnotbeingrunatoptimumcapacityutilisation,causingustoincurlossesattheFujairahPlant.

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WhileweintendtorationaliseouroperationsandbeginshippingwhitecementfromourFujairahplanttooursouthIndianmarketsinadditiontotheinternationalmarketswealreadysupply,therecanbenoguaranteethatwewouldbeabletodothissuccessfullyoratall.Ifweareunabletoeffectivelyutiliseourcapacity,itcouldhaveamaterialadverseeffectonourbusiness,resultsofoperations,financialconditionandprospects.J.K.CementWorks(Fujairah)FZCisincurringlossesforthepastseveralyearssinceitsincorporationanditsnetworthhasbeensignificantlyeroded.Duringthecurrentyear,basedonbusinessvaluationof J.K.CementWorks(Fujairah)FZC' (subsidiaryof J.K.Cement(Fujairah)FZC)byan independentexternal valuer, theCompanyhas recognizedprovision towardsdiminution of carrying amount ofinvestmentJ.K.Cement(Fujairah)FZCof₹.16,151lacs.Additionally,theCompanyhasalsoprovidedforoutstandingreceivableforearlieryearsfromJ.K.Cement(Fujairah)FZCamountingto₹.1,664lacs.Thetotalamountof₹.17,815lacshasbeendisclosedasexceptionalitem.

24. Currencyexchangeratesanddisruptionsinourforeignoperationscouldhaveamaterialadverseeffectonus.

WeoperateproductionfacilitiesinUAE,andwearethereforesubjecttoseveralrisksspecifictothatcountry. These risks include economic downturns, social, political, and economic instability,unexpectedchangesinregulatoryrequirements,tariffsandothertradebarriers,currencyexchangefluctuations,actsofwarorterrorismandimport/exportrequirements.Forinstance,asaresultoftheslowdownofconstruction in theMiddleEast,ourFujairahplantrecordedanannualproductionofcementof0.288MnT,0.247MnTand0.281MnTincalendaryears2017,2018and2019,constitutinganannualcapacityutilizationof48%,41%and47%,respectively.

Further,ourfinancialstatementsarereportedinIndianRupeeswithinternationaltransactionsbeingtranslated into IndianRupees. If the IndianRupee strengthens in relation to theUAEDirham, ourIndianRupeereportednetsalesandincomewilldecrease.Additionally,sinceweincurcostsinforeigncurrencies, fluctuation in those currencies’ value can negatively impactmanufacturing and sellingcosts.ChangesintherelevantexchangeratesbetweentheIndianRupeeandtheothercurrenciestowhichweareexposed,whichcanbeandhavebeenvolatile,haveaffectedandwillcontinuetoaffectthevalueofourassetsandliabilitiesdenominatedincurrenciesotherthantheIndianRupee,ourcostsandourrevenues,eachofwhichcouldhaveanadverseeffectonourresultsofoperations.Therecanbenoassurancesthatanyofthesefactorswillnotmateriallyimpactourproductioncostorotherwisehaveamaterialadverseeffectonourbusiness,financialconditionandresultsofoperations.

25. OurCompanyhas,inthepast,beeninviolationofcertainprovisionsofforeignexchangelawsinrelationtoitsoverseasdirectinvestmentinFujairah.

TheForeignExchangeManagementAct,1999,alongwiththeregulationsframedthereunder,eachasamended(together“FEMA”)imposestringentconditionsonoverseasdirectinvestments,includingtheamountofpermissibleinvestment,methodoffunding,andtheroutingoftheinvestment,methodoffunding,andtheroutingoftheinvestment.InadditiontorequiringpriorapprovaloftheRBIincertaincases,theFEMAalsolaysdownvariouspostfactoreportingrequirementstobefollowedbycompaniesmaking overseas direct investments. Our Company has, in the past, been non-compliant withprovisions of the FEMA, in relation to its investment in it foreign Subsidiaries, being J. K. Cement(Fujairah)FZCandJ.K.CementWorks(Fujairah)FZC.Thecontraventionsincludeddelayinmakingrequisite filings under FEMA for remittances made to and bank guarantee issued to our foreignSubsidiaries,androutingofsuchremittancesthroughdifferentauthorizeddealersinsteadofone.TheRBI,pursuanttoitsorderdatedApril26,2012hadtakenalenientviewbecauseoftheviolationhavingarisen out of our maiden overseas investment and allowed the offences to be compounded on apaymentof₹2.5lakhs,whichhassincebeenpaidbytheCompany.TherecanbenoassurancethatsimilarviolationsofforeignexchangelawsshallnotoccurinthefutureorshallnotbedealtwithinamorestringentmannerbytheRBI.Further,therecanbenoassurancethat our investments in Fujairah shall not get adversely affected because of changes in foreignexchangelawsandthepolicytowardsoverseasdirectinvestment.

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26. Inability to meet our obligations, including financial and other covenants, under our debtfinancingarrangementcouldadverselyaffectourbusinessandresultsofoperations.

Inordertosecureourfinancingarrangements,wehavecreatedchargebywayofequitablemortgageoncertainofour immovablepropertiesandhypothecatedcertainmovableproperties,presentandfutureincludingmovableplantandmachineryrelatedtoourprojects.IntheeventofadefaultbyourCompanyunderanyloanfacility,therespectivelendermayenforceitsrightsagainstourCompany,includingbywayofappropriationandsaleofsuchproperty.Wecannotassureyouthatwewillnotdefaultonanyofour repaymentobligationsorother termsof theborrowingarrangements in thefuture,or thatourrespective lenderswillnotenforce theirrightsuponsuchdefault.Ourbusiness,financialcondition,cashflowsandresultsofoperationscouldbeadverselyaffectedintheeventofanysuchdefaultonourpart.Ourfinancingagreementsalsocontaincertainrestrictivecovenantsthatlimitourabilitytoundertakecertaintypesoftransactions,anyofwhichcouldaffectourbusinessandfinancialconditions.Wearerequiredtoobtainpriorapprovalfromourlendersfor,amongotherthings:

§ alterationofourcapitalstructure;§ effectinganyamalgamationorreconstruction;§ amendingourmemorandumofarticlesandarticlesofassociation;§ concludinganyborrowingarrangements,eithersecuredorunsecured;§ permittransferofcontrollinginterestormakeanydrasticchangeinthemanagementset-up;§ creationoffurthercharge,lienorencumbranceinfavourofanyotherlenders;§ undertakingnewprojectsorimplementinganyschemeofexpansionoracquirefixedassets;§ investmentbywayofsharecapitalinorlendoradvancetoorplacedepositswithanyother

entity;§ undertakingguaranteeobligationsonbehalfofanyotherlenderoranythirdparty;§ declaringdividends;and§ effectinganyrepaymentofmoniesbroughtinbythepromoters/Directorsorprincipal

shareholders.

Certainofourborrowingsalsorequireustomaintaincertainfinancialratioswhicharetestedattimesonanannualbasis,suchastotaldebttonetworthanddebtservicecoverageratiosandimposeotherobligationsonussuchasrequiringustomaintainpromoterandpromotergroupshareholdingofatleast51%ofourpaid-upcapital.ThefinancingarrangementsenteredbyourCompanyalsohavecross-defaultprovisionswithrespectto other facilities availed of by our Company and provisions prescribing debt to equity and otherfinancialratios.Further,certain financingarrangementsofourCompanyalsoentitlethe lenderstocancel the undrawn amount of the facility in certain circumstances, including downgrading of thecredit ratingofourCompanybya credit ratingagencyoradverse remark,qualifiedopinionor itsequivalentbytheauditorsofourCompany.Wemaybeforcedtosellsomeorallourassetsifwedonothavesufficientcashorcreditfacilitiestomakerepayments.Additionally,someofourborrowingsmaybesecuredagainstalloraportionofourassets,andlendersmaybeabletosellsuchassetstoenforcetheirclaimsforrepayment.Anyfailuretomeetourobligationsundercreditfacilitiescouldhaveanadverseeffectonourbusiness,cashflow,resultsofoperationsandfinancialresults.In the event we breach any financial or other covenants contained in any of our financingarrangements,wemayberequiredtoimmediatelyrepayourborrowingseitherinwholeorinpart,togetherwithanyrelatedcosts.

27. Ourcurrentindebtednessandanyfutureindebtednessthatwemayincurcouldhaveamaterialadverseeffectonus

Our Company’s non-current borrowings as on March 31, 2020 amounted to Rs. 2,283.91 Crores.Besides,therearecurrentmaturitiesoflong-termdebtsamountingtoRs.337.41Croresandshort-termborrowingsofRs.138.85Crores.Wearepermittedbythetermsofourdebtinstrumentstoincursubstantialadditionalindebtedness,subjecttotherestrictionstherein.Ourindebtednessmay,amongothers:

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• limit our ability to borrow money for our working capital, capital expenditures, debt service

requirementsorothercorporatepurposes;• requireustodedicateasubstantialportionofourcashflowstopaymentsonourindebtedness,

which would reduce the amount of cash flows available to fund working capital, capitalexpenditures,productdevelopmentandothercorporaterequirements;

• increaseourvulnerabilitytogeneraladverseeconomicandindustryconditions;and• limit our ability to respond to business opportunities, including growing our business through

acquisitions.

Our inability to generate sufficient cash flows to satisfy our debt obligations, or to refinance ourobligationsoncommerciallyreasonableterms,couldhaveamaterialadverseeffectonourbusiness,financialcondition,cashflowsandresultsofoperations.

28. We have entered into certain related party transactions. These transactions or any future

transactionswithourrelatedpartiescouldpotentiallyinvolveconflictsofinterest.

Wehaveenteredintocertaintransactionswithrelatedparties,includingmembersofourPromoterGroup.Furthermore, it is likely thatwewillenter intorelatedparty transactions in the future.Wecannotassureyouthatwecouldnothaveachievedmorefavourabletermsifsuchtransactionswerenotenteredintowithrelatedparties.Therecanbenoassurancethatsuchtransactions,individuallyorintheaggregate,willnothaveanadverseeffectonourfinancialconditionandresultsofoperations.

29. OurPromoterswillcontinuetoretainmajoritycontrolinourCompany,whichwillenablethemto

influencetheoutcomeofmatterssubmittedtoshareholdersforapproval.

AsonJune30,2020,ourPromotersheld58.07%ofourCompany’s issued,subscribedandpaid-upEquitySharecapitalandourPromoterswill continue toownasubstantialportionofEquitySharecapital.Accordingly,ourPromoterswillcontinuetoexercisesignificantinfluenceoverourbusinesspoliciesandaffairsandallmattersrequiringshareholders’approval,includingthecompositionofourBoard of Directors, the adoption of amendments to our AoA and MoA, the approval of mergers,strategicacquisitionsorjointventuresorthesalesofsubstantiallyallourassets,andthepoliciesfordividends,lending,investmentsandcapitalexpenditures.Thisconcentrationofownershipmayalsodelay,deferorevenpreventachangeincontrolofourCompanyandmaymakesometransactionsmoredifficultorimpossiblewithoutthesupportofthesestockholders.TheinterestsofthePromotersasourCompany’scontrollingshareholderscouldconflictwithourCompany’sinterestsortheinterestsofitsothershareholders.WecannotassureyouthatourPromoterswillacttoresolveanyconflictsofinterestinourCompany’soryourfavour.

30. Certain of our Promoters, Directors, Key Management Personnel and Senior ManagementPersonnelhaveinterestinourCompanyotherthantotheextentofreimbursementofexpensesincurredornormalremunerationorbenefits

Other than regular remuneration or benefits and reimbursement of expenses, certain of ourPromoters,Directors,KeyManagementPersonnelandSeniorManagementPersonnelareinterestedinourCompanytotheextentoftheirshareholdinginourCompany,andprofessional/advisoryfeesandrentpayabletothem.

31. WedonotownourRegisteredandCorporateOfficeandcertainotherpremisesfromwhichweoperate.

WedonotownthepremisesonwhichourRegisteredandCorporateofficeissituated.Suchpremiseshavebeenleasedtousbythecurrentownersofthepremises,beingYadupatiSinghania,oneofourPromoters,andfiveothers,until2026.Iftheownersofsuchpremisesrevokethearrangementunderwhichweoccupythepremisesorrefusetorenewtheleaseonfavourabletermsoratall,wemaysuffera disruption in our operations which could have a material adverse effect on our business andoperations.

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OurgreycementunitsatNimbaheraandMangrolaresituatedonlandleasedbytheStateofRajasthanforaperiodof99yearsandaresubjecttocertaintermsandconditions.Ifweareunabletomeetsuchtermsandconditions, the landshallrevert to theStateofRajasthanand itshallhavethepowertoremove therefrom all buildings and structures constructed by our Company, andwemay suffer adisruption in our operations which could have a material adverse effect on our business andoperations.

Substantiallyallofourfeederdepotsandcertainsalesofficesarelocatedleased/licensedproperty.Certain of these propertiesmaynot have been constructed or developed in accordancewith localplanning and building laws and other statutory requirements. In addition, there may be certainirregularitiesintitleinrelationtosomeofourleasedproperties.Forexample,someoftheagreementsforsucharrangementsmaynothavebeendulyexecutedand/oradequatelystampedorregisteredinthelandrecordsofthelocalauthorities.Wecannotassureyouthatwewillbeabletocontinueouruseofallsuchpropertiesorenforceourrightsundersuchagreements,whichmayimpairouroperationsandadverselyaffectourfinancialcondition.

32. There are outstanding litigation pending against our Company, its Promoters and Directors,which, if determined adversely, could affect our business, cash flow, results of operations andfinancialcondition.

OurCompany,itsPromotersandDirectorsarecurrentlyinvolvedinseverallegalproceedings.Theselegalproceedingsarependingatdifferentlevelsofadjudicationbeforevariouscourts,tribunalsandstatutory, regulatory and other judicial authorities in India, and, if determined against us, couldadverselyaffectourbusiness,cashflow,resultsofoperationsandfinancialcondition.Wecangivenoassurancethattheselegalproceedingswillbedecidedinourfavourorthatanyfurtherliabilitymayarisefromtheseclaimsinthefuture.Anyadversedecisioncouldadverselyaffectourcashflowsandresultsofoperations.The amounts claimed in these proceedings have been disclosed in our consolidated financialstatements to theextentascertainable.Shouldanynewdevelopmentsarise, suchasanychange inapplicableIndianlaworanyrulingsagainstusbyappellatecourtsortribunals,wemayneedtomakeprovisionsinourfinancialstatementsthatcouldincreaseexpensesandcurrentliabilities,whichcouldadverselyaffectourresultsofoperations.

33. Wehavecertaincontingentliabilities,which,ifmaterialized,mayadverselyaffectourfinancialcondition.

AsofMarch31,2020,wehadcertaincontingentliabilitiesnotprovidedfor,amountingtoRs.66,256.28lakhsonastandalonebasisdeterminedinaccordancewithIndAS37.Thisincludesdemandagainstthe Company in certain taxation related matters, on issues such as not allowing depreciation ongoodwillandadditionaldepreciationonpowerplants,aggregatingtoRs.8,134.44lakhs(asofMarch31,2020).Thesemattersarependingadjudicationatvariouslevelsandanyadverseordermayimpactourfinancialcondition.Further,thecontingentliabilityofamountsdisclosedinourauditedfinancialstatementsrepresentsestimatesandassumptionsofourmanagement.

ForfurtherinformationonsuchcontingentliabilitiesdeterminedinaccordancewithIndAS37,see“Financial Statements” annexed to this Disclosure Document. If any of these contingent liabilitiesmaterialize,ourfinancialconditionmaybeadverselyaffected.

34. OurCompanyhasgivencorporateguaranteesinrelationtocertaindebtfacilitiesprovidedtooneofourSubsidiaries,which,ifinvoked,willrequiretheCompanytopaytheguaranteedamounts.

OurCompanyhasprovidedcorporateguaranteesinrelationtocertaindebtfacilitiespresentlyavailedbyoneofitsSubsidiaries.AsonMarch31,2020,theaggregateoutstandingamountinrelationtosuchfacilitiesis48,439.21lakhs.Anydefaultorfailurebytherelevantborrower(s)torepaytheloansinatimelymanner,oratall,couldtriggerrepaymentobligationsonthepartofourCompanyinrespectofsuch loans, thereby potentially having an adverse effect on our financial conditions and results ofoperations.

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35. Ourabilitytopaydividendsinthefuturewilldependuponfutureearnings,financialcondition,cashflows,workingcapitalrequirementsandcapitalexpenditures.

Theamountoffuturedividendpayments,ifany,willdependuponanumberoffactors,includingbutnot limited to our future earnings, financial condition, cash flows, working capital requirements,contractualobligations,applicableIndianlegalrestrictionsandcapitalexpenditures.Inaddition,ourabilitytopaydividendsmaybeimpactedbyanumberoffactors,includingrestrictivecovenantsundertheloanorfinancingagreementsourCompanymayenterintotofinanceourfundrequirementsforourbusinessactivities.Therecanbenoassurancethatwewillbeabletopaydividendsinthefuture.Wemaydecidetoretainallofourearningstofinancethedevelopmentandexpansionofourbusinessand,therefore,maynotdeclaredividendsonourEquityShares.Additionally,inthefuture,wemayberestrictedbythetermsofourfinancingagreementsinmakingdividendpaymentsunlessotherwiseagreedwithourlenders.

EXTERNALRISKFACTORS1. WefacerisksrelatedtopublichealthepidemicsandpandemicsinIndiaandabroad.

Ourbusinesscouldbemateriallyandadverselyaffectedbytheoutbreakofpublichealthepidemics,orthefearofsuchanoutbreak,inIndiaorelsewhere.AnumberofcountriesinAsia,includingIndia,aswellascountriesinotherpartsoftheworld,aresusceptibletocontagiousdiseasesandhaveconfirmedcases of diseasesincludingthe highly pathogenic ones such as H7N9, H5N1 and H1N1 strains ofinfluenzainbirdsandswinesandmorerecently,theCOVID-19virus.CertaincountriesinSoutheastAsiahave reported casesofbird-to-human transmissionof avianand swine influenza, resulting innumerous humandeaths. TheWorldHealthOrganization and other agencies have recently issuedwarnings on the COVID-19 virus and on a potential avian or swine influenza pandemic if there issustainedhuman-to-humantransmission.While,onJanuary30,2020,theWorldHealthOrganizationdeclaredtheCOVID-19outbreakahealthemergencyofinternationalconcern,onMarch11,2020,theWorldHealthOrganizationhascategorisedtheCOVID-19virusoutbreakasapandemic.Inresponseto the outbreak, the governments of many countries, including India have taken preventative orprotective actions and have imposed a number of measures designed to contain the outbreak,including country-wide lockdowns, business closures, travel restrictions, quarantines andcancellationsofgatheringsandevents.Thisinturnhasimpactedtheoperationofbusinesses,reducedregionaltravelsandtradeandloweredindustrialproductionandconsumptiondemand.TheCOVID-19 pandemic has also affected the operations of our customers, in turn reducing demand for ourproducts, which could affect our business, financial condition and results of operations. FuturepotentialimpactstotheCompanyincludedisruptionsorrestrictionsonouremployees’abilitytowork,lackofdemandfornewloansortheborrower’sabilitytopaytherequiredmonthlypayments.Changestotheoperatingenvironmentmayalsobeimpacted.TheCOVID-19outbreakisongoingandtheactualextentoftheoutbreakanditsimpactontheeconomyglobally ingeneraland in India, inparticular remainsuncertainat thispoint in timeandmay turnsevereinfuture.WorseningofthecurrentoutbreakofCOVID-19virusorfutureoutbreaksofCOVID-19virus,avianorswineinfluenzaorasimilarcontagiousdiseasescouldadverselyaffecttheIndianeconomyandeconomicactivityintheregion.Iftheoutbreakofanyoftheseepidemicsorothersevereepidemics,continuesforanextendedperiod,occuragainand/orincreasesinseverity,itcouldhaveanadverseeffectoneconomicactivityworldwide, includingIndia,andcouldmateriallyandadverselyaffectourbusiness,financialconditionandresultsofoperationsandthetradingpriceoftheEquityShares, theDebentures,andothersecurities.Similarly,anyother futurepublichealthepidemicsoroutbreakofavianorswineinfluenzaorothercontagiousdiseaseinIndiacouldalsomateriallyandadverselyaffectourbusiness,financialcondition,resultsofoperations.Inanefforttocontainthespreadofsuchcontagiousdiseases,variousstategovernmentsinIndiahaveorderedcompleteorpartialshutdownofcorporateofficesandbusinesses.Therecanalsobenoassurance that thepoliciesandcontrols foroutbreakpreventionanddiseaserecurrence or any stimulus packages introduced by GOI, will be successful in preventing diseaseoutbreaksorrecurrencesorthatanyactualorsuspectedoutbreakofCOVID-19orothercontagious

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diseaseaffectingtheIndiaorelsewherewillnotoccur.Therecanalsobenoassurancethatanyfutureoutbreak of contagious diseaseswill not have amaterial adverse effect on our business, financialcondition,andresultsofoperations.

2. Thecementindustryiscyclicalandisaffectedbyanumberoffactorsbeyondourcontrol.

Thecementindustry,likemostcapital-intensivecommodityindustries,iscyclicalinnature,especiallywithrespecttosupply.Giventhehighgestationperiod,thereisatimelagbetweenthecapacitybuild-upandcementdemand,beingapproximately24to30months(Source:CRISILReport).Demandforcement is linked toeconomicgrowth.Hence,when theeconomy is strong,demand increases.Asaresult,theprofitabilityofplayersincreases,leadingtocapacityadditionsbyexistingplayersandtheentryofnewplayers.However,sinceittakesaroundtwotothreeyearstobuildacementplant,itislikely that demand could either decrease or stagnate, or capacity additions could exceed demandbeforecompletionofthesecapacities.Thiscouldleadtodecreaseincementpriceswiththeindustryfacingadownturn,andplayersreducingoperatingratesorshuttingtheirplants.

3. AslowdownineconomicgrowthinIndiacouldcauseourbusinesstosuffer.

OurperformanceandthegrowthofourbusinessarenecessarilydependentonthehealthoftheoverallIndianeconomy.AnyslowdownorperceivedslowdownintheIndianeconomyorfuturevolatilityinglobalcommoditypricescouldadverselyaffectourbusiness.Additionally,anincreaseintradedeficit,adowngradinginIndia’ssovereigndebtratingoradeclineinIndia’sforeignexchangereservescouldnegativelyaffectinterestratesandliquidity,whichcouldadverselyaffecttheIndianeconomyandourbusiness.AnydownturninthemacroeconomicenvironmentinIndiacouldalsoadverselyaffectourbusiness,resultsofoperations,financialconditionandthetradingpriceoftheEquityShares.India’seconomycouldbeadverselyaffectedbyageneralrise in interestratesor inflation,adverseweatherconditionsaffectingagriculture,commodityandenergypricesaswellasvariousotherfactors.AslowdownintheIndianeconomycouldadverselyaffectthepolicyoftheGoItowardsourindustry,which may in turn adversely affect our financial performance and our ability to implement ourbusinessstrategy.The Indian economy is also influenced by economic and market conditions in other countries,particularlyemergingmarketconditionsinAsia.AdeclineinIndia’sforeignexchangereservesandexchangeratefluctuationsmayalsoaffectliquidityandinterestratesintheIndianeconomy,whichcouldadverselyimpactourfinancialcondition.Alossofinvestorconfidenceinotheremergingmarketeconomies or anyworldwide financial instabilitymay adversely affect the Indian economy,whichcouldmateriallyandadverselyaffectourbusiness,cash flow,resultsofoperationsandthemarketpriceoftheEquityShares.Further,otherfactorswhichmayadverselyaffecttheIndianeconomyarescarcityofcreditorotherfinancing in India, resulting in an adverse impact on economic conditions in India and scarcity offinancingofourdevelopmentsandexpansions;volatilityin,andactualorperceivedtrendsintradingactivityon,India’sprincipalstockexchanges;changesinIndia’stax,trade,fiscalormonetarypolicies,likeapplicationofGST;politicalinstability,terrorismormilitaryconflictinIndiaorincountriesintheregionorglobally,includinginIndia’svariousneighbouringcountries;occurrenceofnaturalorman-made disasters; infectious disease outbreaks or other serious public health concerns; prevailingregional or global economic conditions, including in India’s principal export markets; and othersignificantregulatoryoreconomicdevelopmentsinoraffectingIndiaoritsfinancialservicessectors.

4. PoliticalinstabilityorchangesintheeconomicpoliciesbytheGovernmentofIndiacouldimpact

ourfinancialresultsandprospects.

WeareincorporatedinIndiaandderivesubstantialmajorityofourrevenuesfromoperationsinIndia.Consequently,ourperformanceandthemarketpriceofourEquitySharesand/ortheDebenturesorother securities,maybeaffectedby interest rates, governmentpolicies, taxation, social andethnicinstabilityandotherpoliticalandeconomicdevelopmentsaffectingIndia.TheGovernmentofIndia(“GoI”)hastraditionallyexercisedandcontinuestoexercisesignificantinfluenceovermanyaspectsof

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theIndianeconomy.Ourbusiness,andthemarketpriceandliquidityofourEquityShares,and/ortheDebentureorothersecurities,maybeaffectedbychangesintheGoI'spolicies,includingtaxation.Since1991,successiveIndiangovernmentshavepursuedpoliciesofeconomicliberalisation,includingsignificantlyrelaxingrestrictionsontheprivatesector.However,therecanbenoassurancethatsuchpolicieswillbecontinuedandanysignificantchangeintheGoI'spoliciesinthefuturecouldaffectourbusinessandeconomicconditionsinIndiaingeneral.AseconomicliberalisationpolicieshavebeenamajorforceinencouragingprivatefundingintheIndianeconomy,anychangeinthesepoliciescouldhaveasignificantimpactonbusinessandeconomicconditionsinIndia,whichcouldadverselyaffectourbusinessandourfuturefinancialconditionandthepriceofourEquityShares.Inaddition,anygeopoliticalstabilityaffectingIndiawilladverselyaffecttheIndianeconomyandtheIndiansecuritiesmarketsingeneral,whichcouldaffectthepriceofourEquityShares.

5. AdeclineinIndia’sforeignexchangereservesmayadverselyaffectliquidityandinterestratesin

theIndianeconomy,whichcouldhaveanadverseimpactonus.Arapiddecreaseinreserveswouldalsocreateariskofhigherinterestratesandaconsequentslowdowningrowth.

India’sforeignexchangereservesstoodatU.S.$475.5billionasatMarch27,2020.Flowstoforeignexchangereservescanbevolatile,andpastdeclinesmayhaveadverselyaffectedthevaluationoftheRupee.TherecanbenoassurancethatIndia’sforeignexchangereserveswillnotdecreaseagaininthefuture.Furtherdeclineinforeignexchangereserves,aswellasotherfactors,couldadverselyaffectthevaluation of the Rupee and could result in reduced liquidity and higher interest rates that couldadverselyaffectourbusiness,financialconditionandresultsofoperations.

6. AnydowngradingofIndia'sdebtratingbyaninternationalratingagencycouldhaveanadverseimpactonourbusiness.

India’s sovereign rating isBaa3with a “negative” outlook (Moody’s),BBB-with a “stable” outlook(S&P)andBBB-witha“negative”outlook(Fitch).AnyadverserevisiontotheratingofIndia'sdomesticor international debt by international rating agencies may adversely impact our ability to raiseadditional financing and the interest rates and other commercial terms at which such funding isavailable.Thiscouldhaveanadverseeffectonourbusinessandfuturefinancialperformance,itsabilitytoobtainfinancingforcapitalexpendituresandthetradingpriceoftheEquityShares.

7. Ifregionalhostilities, terroristattacksorsocialunrest inIndiaincrease,ourbusinesscouldbeadverselyaffected,andthetradingpriceoftheDebenturescoulddecrease.

Indiahasfromtimetotimeexperiencedinstancesofsocial,religiousandcivilunrestandhostilitieswithneighbouringcountries.MilitaryactivityorterroristattacksinthefuturecouldadverselyimpacttheIndianeconomybydisruptingcommunicationsandmakingtravelmoredifficult,andsuchtensionscouldcreateagreaterperceptionthatinvestmentsinIndiancompaniesinvolvehigherdegreesofrisk.Eventsofthisnatureinthefuture,aswellassocialandcivilunrestwithinothercountriesinAsia,couldadverselyimpacttheIndianeconomyandourrevenue,operatingresultsandcashflows.Forexample,therecentunrestontheIndo-ChinaborderledtoretaliationbyIndiaandescalatedhostilitiesbetweenIndiaandChina.Further,Indiahasalsoexperiencedsocialunrestinsomepartsofthecountry.TheimpactoftheseeventsonthevolatilityofglobalfinancialmarketscouldincreasethevolatilityofthemarketpriceoftheDebentures.

8. Economicdevelopmentsandvolatilityinsecuritiesmarketsinothercountriesmaycausetheprice

oftheEquitySharestodecline.

TheIndianeconomyanditssecuritiesmarketsareinfluencedbyeconomicdevelopmentsandvolatilityinsecuritiesmarketsinothercountries.Investor’sreactionstodevelopmentsinonecountrymayhaveadverseeffectsonthemarketpriceofsecuritiesofcompaniessituatedinothercountries,includingIndia.For instance, the recent financial crisis in theUnitedStatesandEuropeancountries led toaglobalfinancialandeconomiccrisisthatadverselyaffectedthemarketpricesinthesecuritiesmarketsaround the world, including Indian securities markets. Negative economic developments, such asrisingfiscalortradedeficits,oradefaultonnationaldebt,inotheremergingmarketcountriesmay

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affect investorconfidenceandcauseincreasedvolatility inIndiansecuritiesmarketsandindirectlyaffecttheIndianeconomyingeneral.

9. The extent and reliability of Indian infrastructure, to the extent insufficient, could adversely

impactourcashflow,resultsofoperationsandfinancialcondition.

India'sphysicalinfrastructureislessdevelopedthanthatofmanydevelopednations.Anycongestionordisruptionwith itsport, railandroadnetworks,electricitygrid, communicationsystemsoranyotherpublicfacilitycoulddisruptournormalbusinessactivity.AnydeteriorationofIndia'sphysicalinfrastructurewouldharmthenationaleconomy,disruptthetransportationofgoodsandsupplies,andaddcosts todoingbusiness in India.Theseproblemscould interruptourbusinessoperations,whichcouldhaveadverseeffectonourcashflow,resultsofoperationsandfinancialcondition.

10. OurabilitytoraiseforeigncapitalmaybeconstrainedbyIndianlaw.

Companies operating in India are subject to exchange controls that regulate borrowing in foreigncurrencies.Suchregulatoryrestrictionscouldlimitourfinancingsourcesforacquisitionsandcouldconstrainourabilitytoobtainfinancingsoncompetitivetermsandrefinanceexistingindebtedness.Inaddition,itcannotbeassuredthatanyapprovalrequiredtoraiseforeigncapitalwillbegrantedtouswithoutonerousconditions,oratall.Limitationsonforeigndebtmayhaveanadverseimpactonourbusiness,financialcondition,cashflowsandresultsofoperations.

11. Significantincreasesinthepriceoforshortagesinthesupplyofcrudeoilcouldadverselyaffect

theIndianeconomyingeneral,includingthecementmanufacturingindustry,whichcouldhaveanadverseeffectonourbusinessandresultsofoperations.

Indiareliessignificantlyonimportstomeetitsrequirementsofcrudeoil.Crudeoilpricesarevolatileandaresubjecttoseveralfactors,includingthelevelofglobalproductionandpoliticalfactors,suchaswarandotherconflicts,particularlyintheMiddleEast,whereasubstantialproportionoftheworld'soilreservesarelocated.AnysignificantincreaseinthepriceoforshortagesinthesupplyofcrudeoilcouldadverselyaffecttheIndianeconomyingeneral, includingthecementmanufacturingindustryandconsequentlyanadverseeffectonourbusiness,cashflowsandresultsofoperations.

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(B) BRIEF SUMMARY OF BUSINESS/ ACTIVITIES OF COMPANY AND ITS LINE OF BUSINESSCONTAININGATLEASTFOLLOWINGINFORMATION(i) OVERVIEWOurCompanywasincorporatedonNovember24,1994asJ.K.CementLimited,undertheCompaniesAct,1956.OurCompanyreceivedthecertificateforcommencementofbusinessdatedDecember30,1994fromthe then Registrar of Companies, Kanpur, Uttar Pradesh. The CIN of our Company isL17229UP1994PLC017199.As on June 30, 2020, the Board of Directors consists of 14 Directors out of which four are executiveDirectors,threearenonexecutive,non-independentDirectorsandsevenarenon-executive,independentDirectors.ShriYadupatiSinghania,B.TechfromIITKanpuristhekeydrivingforcebehindthesuccessoftheCompany.Underhisdynamicleadershipandguidance,theCompanyachievedsignificantsizeandscaleofoperations.Heisalsoassociatedwithvariousmanagementandindustrialchapters.Underhisguidanceandleadership,Companyhassignificantlyachievedgrowthparticularlyinbusinessdevelopmentandbrandleverage.TheindependentdirectorsoftheCompanyareexperienced,competentandrenownedpersonsfromtheirrespectivefields.Theyareinstrumentalinaddingvaluesinthedecision-makingprocessoftheCompany.

INDUSTRYOVERVIEW:Cementdemandgrowthincurrentfiscalisexpectedtowitnessanunprecedentedcontractionof10-15%owingtospreadofglobalpandemicCovid-19.Thus,thedemandforfiscal2021isexpectedtobe293milliontonsasagainst330milliontonsinprecedingyear.AsperCRISIL,Cementproductioncapacityinfiscal2020stoodat520milliontonsanditisestimatedthatcapacitymayincreaseto541milliontonsby2021.ThecementdemandforthisfiscalwouldremainmutedmainlyduetodiversionoffundtowardhealthandpublicwelfareinH1FY21byGovernment,howeverinH2FY21demandwouldseeagradualpickupmainlydrivenbyincreasedGovernmentspendingoninfrastructureandaffordablehousinginPMAY-UandPMAY-R&PMGSY.Further,keyinfrastructureprojectofroad,metrosandirrigationwoulddrivedemandfortheoveralleconomy.

1) Government ‘’Housing for All - Rural and Urban ‘’scheme alone contributes 10-12% share ofcementdemand inhousingsegment.PMAY–Ghasset the target forconstructionof15millionhouseholdsinruralareaofwhichonly10millionwerecompletedtillFY20.PMAY-Uhassetthetargetforconstructionof10millionhouseholdsofwhichonly3millionwereconstructedtillFY20.Thusremaining5millionhousesinPMAY–G&7millionhouseinPMAY-UwouldgeneratedemandforcementatCAGRof6-7%overFY20-24.(Source:CRISILReport)

2) Road&HighwaysProjects–Indiahasthelargestnetworkofroadacrossworldspanningover5.89

million Kms. In order towiden and revamp 1.25 lakhs Km of roads government of India hasapprovedthelaunchofPhase–IIIofitsruralroadprogrammePradhanMantriGramSadakYojana(PMGSY).TheGovernmentofIndiahasallocatedRs91,823crore(US$13.14billion)undertheMinistry of Road Transport and Highways in current fiscal for construction of roads. TheGovernmentalsoexpectedtoawardroadprojectswithatotallengthofaround4,500kmworth₹50,000crore(US$7.15billion)in2020.(Source:Indiaroadandindustryreport,IBEF)

3) OtherInfrastructureProjects-TheGovernmenthasalsoallocatedmorethanRs.103lakhcrores

overaperiodoffiveyearsfrom2020forInfrastructureProjects.Thesenewprojectswillincludehousing, safe drinking water, access to clean and affordable energy, healthcare, educationalinstitutes,railwaystations,airports,busterminals,metroandrailwaytransportation,logisticsandwarehousing,irrigationprojects,etc.(Source:Indiaroadandindustryreport,IBEF)

BUSINESSOVERVIEW:

33

J.K.Cementisoneofthetop15cementcompaniesinIndiaaspersurveyofCementIndustry&Directory2019.Wemanufacturegreycement,whitecementandwallputty.AsperdatareleasedbyGOIMinistryofMines,IBMtotalwhitecementcapacityinIndiais1.338Milliontonsandtwoofmajorplayersholdalmost1.215Milliontonswhichisalmost90%oftotalmarketshareintermsofinstalledcapacity.Weare2ndlargestplayerofwhitecement inIndiaaspersurveyofCementIndustry&Directory2019.Inthegreycementsegment,wemanufactureandmarketordinaryportlandcement(“OPC”)(43-gradeand53-grade),portlandpozzalanacement(“PPC”)andportlandslagcement(“PSC”)underthebrandname“J.K.SuperCement(BuildSafe)”,“”,as“J.K.SuperStrong(BuildSafe)”.Ourwhitecementandwallputtyaresoldunderthebrandname“J.K.CementWhitemaxx”,,“JKCementWallmaxx”,“J.K.PrimaxX”,“J.K.CementTilemaxx”,and“J.K.CementGypsomaxx””,respectively.We own and operate integrated cement manufacturing plants and split grinding units, which arestrategicallylocatednearourlimestoneminesandarewellconnectedtotheend-marketsbyroadandrailnetworks.WeownandoperatefourgreycementplantsinRajasthanandKarnatakaandagrindingunitatHaryanaandanotherinUttarPradesh.Inaddition,weownandoperateawhitecementplantatGotan,Rajasthan (which also manufactures wall putty) and an additional wall putty plant at Katni, MadhyaPradesh.Further,wealsoownandoperateadualprocesscementplanthavingcapacitytoproducebothwhite and grey cement (interchangeably) in Fujairah, U.A.E. The Fujairah plant is currently used formanufacturingwhitecementonly.AsonMarch31,2020,wehaveanaggregateinstalledcapacityof13.97MnTforgreycement,1.2MnT(including0.6MnTinUAE)forwhitecementand0.9MnTforwallputty.Limestoneandpoweraretwoofthekeyinputsusedinthemanufactureofcement,inadditiontofuel.Wesourcelimestoneforourmanufacturingplantsfromcaptivelimestonemineslocatedinproximitytoourplants.InFiscals2018,2019and2020,significantlyallofourlimestonerequirementsinIndiaacrossplantsweremetbyourcaptivelimestonemines.AsonMarch31,2020,weownandoperate11limestoneminessituatedinRajasthanandKarnatakaandhaveaccesstolimestonereservesaggregatingupto486.82MnT(includingprovenandprobable).Theremainingleasedurationfortheseminesrangesfrom12to44years.Further,inFujairah,UAE,wehavebeenallottedonelimestoneminewithreservessuitableforproductionofwhitecementadjacenttoourplantsite,whichisoperatingnow.WehavealsoobtainedminingleasesforadditionallimestoneminesinthestateofMadhyaPradeshandareintheprocessofobtainingtherequisiteregulatoryandenvironmentalapprovalsforthesame.Theestimatedlimestonereservesintheseminesareapproximately518.5MnT(includingprovenandprobable).Further,wehavefourcaptivepowerplantsandtwowasteheatrecoverypowerplantsacrossRajasthanandKarnataka,withanaggregatecapacityofapproximately125.70MW,asonMarch31,2020.DuringFiscals2018to2020,over75%ofourpowerrequirementinIndiaweremetbycaptivethermalandwaste-heat-recovery-basedpowerplants.Wesellgreycementover17states/unionterritoriesinIndia,aswellasgreyclinkertocustomersinNepal.Ourwhitecementandwallputtyaresoldacrossthecountry.AsonMarch31,2020,ourgreycementissuppliedthroughanetworkofover14,007dealersandretailers.Wealsosupplyourwhitecementandwallputty products through a network of over 56,712dealers and retailers. As on March 31, 2020, ourdistributionnetworkisfurtheraugmentedthrough252feederdepotsservicedby23salesofficesforgreycement and 91feeder depots serviced by 40sales office forwhite cement spread across India.We alsodirectly sell our products to builders, EPC contractors and government entities for various projectsundertakenbythem.Our consolidated revenue from operations in Fiscals 2018, 2019 and 2020 was ₹ 4971.62 crores, ₹5183.32crores, and ₹5734.73crores respectively, and our profit for the year was ₹ 285.58crores, ₹263.63crores, and ₹483.39 crores, respectively. Our EBITDA in Fiscals 2018, 2019 and 2020 was ₹787.45crores,₹834.45crores,and₹1213.44crores,respectively.

34

(ii) CORPORATESTRUCTURE

(iii) KEYOPERATIONALANDFINANCIALPARAMETERSFORTHELAST3AUDITEDYEARS(a) STANDALONEBASIS: (Rs.incrores)PARAMETERS Ason

31.03.2020(Audited)

Ason31.03.2019(Audited)

Ason31.03.2018(Audited)

Networth 3128.89 2892.80 2147.34TotalTermDebts 2422.76 2116.29 2183.21Ofwhich–NonCurrentMaturitiesofLongTermBorrowings

337.41 242.31 170.45

ShorttermBorrowings 138.85 159.81 113.51CurrentMaturitiesofLongTermBorrowings 337.41 242.31 170.45NetFixedAssets 4977.29 4191.90 3684.49Non-CurrentAssets(Otherthannetfixedassets) 762.30 860.14 743.17CashandCashequivalents 36.13 237.42 182.35CurrentInvestments 1.03 394.31 77.57CurrentAssets 2115.48 1895.20 1556.13CurrentLiabilities 1619.58 1436.37 1175.37NetSales 5397.13 4919.19 4709.55EBITDA 1181.53 810.11 760.66EBIT&Exceptionalitems 1053.03 695.66 702.04Interest 222.86 222.08 245.35Exceptionalitem 178.15 0 16.96PAT 400.37 324.89 341.87Dividendamounts 163.01 84.30 67.33Currentratio* 1.31 1.32 1.32Interestcoverageratio 5.06 4.09 3.62GrossDebt/equityratio 0.84 0.76 1.04DebtServiceCoverageRatio 1.96 1.93 2.11(b) CONSOLIDATEDBASIS:

35

(Rs.incrores)PARAMETERS Ason

31.03.2020(Audited)

Ason31.03.2019(Audited)

Ason31.03.2018(Audited)

Networth 3007.42 2694.97 1974.86TotalTermDebts 2884.24 2677.94 2730.56Ofwhich–NonCurrentMaturitiesofLongTermBorrowings

399.70 295.15 209.97

ShorttermBorrowings 180.72 238.15 156.46CurrentMaturitiesofLongTermBorrowings 399.70 295.15 209.97NetFixedAssets 6084.02 5111.17 4547.60Non-CurrentAssets(Otherthannetfixedassets) 223.44 256.05 223.95CashandCashequivalents 38.50 263.06 211.33CurrentInvestments 1.03 394.31 77.57CurrentAssets 2234.57 2045.44 1684.45CurrentLiabilities 1824.68 1609.76 1309.61NetSales 5734.73 5183.32 4971.62EBITDA 1213.44 834.45 787.45EBIT&Exceptionalitems 1010.80 673.55 684.27Interest 276.36 261.11 284.09Exceptionalitem 16.96PAT 483.39 263.63 285.58Dividendamounts 163.01 84.30 67.33Currentratio* 1.22 1.27 1.29Interestcoverageratio 4.56 3.28 2.84GrossDebt/equityratio 1.03 1.01 1.41DebtServiceCoverageRatio 1.82 1.52 1.62*excludingcurrentmaturities#AsperIndASaccounting.GROSSDEBTEQUITYRATIOOFTHECOMPANYGross debt equity ratio of the company before raisingsecurities(Standalone)

0.84

Gross debt equity ratio of the company after raisingsecurities(Standalone)

0.92

**Debtequityratioafterraisingdebtsecuritiesiscomputedonthebasisthatthereisaninflowof₹250croresfromtheproposedissue

(iv) PROJECTCOSTANDMEANSOFFINANCING,INCASEOFFUNDINGOFNEWPROJECTSThefundsbeingraisedbytheIssuerthroughpresentissueofNCDsaretobeutilizedtowardspartfinancing1,500tpdclinkerexpansionatNimbahera,Rajasthan.TotalProjectcost–uptoRs.405crores,tobefinancedusingthedebtofRs.250croresandequity/internalaccrualsofuptoRs.155crores.TheCompanyundertakesthattheproceedsofthecurrentIssueshallnotbeusedforanypurposewhichmaybeincontraventionoftheregulations/guidelines/normsissuedbyRBI/SEBI/RegistrarofCompanies.(v) SUBSIDIARIESOFTHECOMPANY(Ifany)

A. SUBSIDIARYCOMPANYININDIA

1) Jaykaycem(Central)Limited

36

B. SUBSIDIARYCOMPANIESINCORPORATEDOUTSIDEINDIA

1) J.K.Cement(Fujairah)FZC2) JKCementWorks(Fujairah)FZC3) JKWhiteCement(Africa)Limited

(C)BRIEFHISTORYOFTHEISSUERSINCEITSINCORPORATIONGIVINGDETAILSOFIT’SFOLLOWINGACTIVITIES

(i) DETAILSOFSHARECAPITALASON30.06.2020Particulars Numberof

sharesRs.inCr.

AUTHORISED 80000000NosofEquityshareoffacevalueofRs.10each 80000000 80 80000000 80ISSUEDANDSUBSCRIBED 77268251 77.2777268251NosofEquitysharesoffacevalueofRs.10each 77268251 77.27FULLYPAIDUP 77268251 77.2777268251NosofEquitysharesoffacevalueofRs.10each Total 77268251 77.27

(ii) CHANGESINITSCAPITALSTRUCTUREASON30.06.2020,FORTHELASTFIVEYEARSDateofchange(AGM/EGM) Nominal

AmountinRsParticulars

AGMheldon28.7.2018 73410010 7341001NosoffullypaidequitysharesofRs.10eachwereissuedbywayofQIPon31.12.2018atapremiumofRs.685.80perequityshare.

(III)EQUITYSHARECAPITALHISTORYOFTHECOMPANYASON30.06.2020FORTHELASTFIVEYEARSDateofAllotment

NoofEquityShares

FaceValue(Rs.)

IssuePrice(InRs)

Consideration(Cash,otherthancash,etc)(Rs.incr.)

NatureofAllotment

Cumulative-Equitycapitalafterallotment

Remarks

No.ofEquityShares

Equitysharecapital(Rs.inCr.)

Equitysharepremium(inRs.)

31.12.18 7341001

10 695.80

510.79 QualifiedInstitutionalPlacement

77268251

77.27

756.80 QualifiedInstitutionalplacementofequitysharetoQIBs

37

iv) DETAILSOFANYACQUISITIONORAMALGAMATIONINTHELAST1YEARNIL

v) DETAILSOFANYREORGANIZATIONORRECONSTRUCTIONINTHELAST1YEAR

TYPEOFEVENT DATEOFANNOUNCEMENT DATEOFCOMPLETION DETAILS

NIL(D) DETAILSOFTHESHAREHOLDINGOFTHECOMPANYASONTHELATESTQUARTEREND

JUNE30,2020

(i) SHAREHOLDINGPATTERNOFTHECOMPANYASONLASTQUARTEREND(30.06.2020)

Particulars No.ofShares No.ofSharesinDematform

Totalshareholding

as%oftotalno.ofshares

PromotersandPromoterGroup 44866579 44866459 58.07MutualFunds/UTI

16362240

16349378 21.18

FinancialInstitutions/Banks 10403 7192 0.01InsuranceCompanies 1620933 1620923 2.10ForeignInstitutionalInvestors 10392854 10370942 13.45BodiesCorporate 666808 661866 0.86Individuals–ResidentPublic 2642133 2423906 3.42Others 706301 652398 0.91GrandTotal 77268251 76953064 100.00Note:Sharespledgedorencumberedbythepromoters(ifany)

(ii) LIST OF TOP 10 HOLDERS OF EQUITY SHARES OF THE COMPANY AS ON THE LATESTQUARTEREND(30.06.2020)

Sr.No. Particulars

TotalNo.ofEquityshares*

No.ofsharesheldinDematform

Totalshareholdingasa%oftotalno.of

equityshares

1 M/sYaduInternationalLtd. 31034518 31034478 40.162 ShriYadupatiSinghania 12064198 12064198 15.6133 SBI-variousMFSchemes 5799495 5799495 7.5054 FidelityInvestmentTrust 4200833 4200833 5.4365 MiraeAsset-VariousScheme 2203052 2203052 2.8516 AxisMF 1564469 1564469 2.0247 Smt.KavitaY.Singhania 1305452 1305452 1.689

8 FranklinTempletonInvestmentFund

1302041 1302041 1.685

9 AdityaBirlaSunLifeTrusteePvtLtd.

1186911 1186911 1.536

10 KotakEquityFunds-MF 1126802 1126802 1.458

(E) FOLLOWINGDETAILSREGARDINGTHEDIRECTORSOFTHECOMPANY:-

38

(i) DETAILSOFTHECURRENTDIRECTORSOFTHECOMPANYASON30.06.2020

Sr.No.

Name,DesignationDIN,

andOccupationAge Address

Directorofthe

Companysince

Detailsofotherdirectorship(s)*

1. Mr. YadupatiSinghaniaManagingDirectorOccupation:BusinessNationality:IndianDIN:00050364

66 11,GangaKuti,Cantonment,Kanpur,UttarPradesh,India208004

November24,1994

1. J.K.TradersLimited2. Jaykaycem (Northern)

Limited3. J.K.CottonLimited4. Jaykaycem (Central)

Limited5. J.K. Cement (Western)

Limited6. JKPaintsandPigments

Ltd7. Bhagwandas Goenka

EducationalInstitution8. Ace Investments

PrivateLimited9. Express Newspapers

PrivateLimited10. Yadu International

Limited11. Employer'sAssociation

ofNorthernIndia12. UttarPradeshCricket

Association

2 Mr.SudhirJalanNonExecutive,nonindependentDirectorOccupation:BusinessNationality:IndianDIN:00111118

75 7,AliporeRoad,Kolkata-700027

December17,2019

1. Meenakshi TeaCompanyLtd

2. SublimeAgroLtd3. Dhawalgiri Holdings

PvtLtd4. Neo Foods Private

Limited5. Rice Lake Weighing

SystemsIndiaLimited6. Apollo Gleneagles

HospitalLimited7. The Shahjahanpur

ElectricSupplyCo.Ltd.8. Anchor Investments

PvtLtd9. Meenakshi Cerebrum

PropertiesLimited10. ASA Holdings Private

Limited11. BRAR Properties And

HoldingsPvt.Ltd.12. Rieter India Private

Limited13. Conexus Social

ResponsibilityServicesPrivateLimited

3 Mr.PaulHeinzHugentoblerNon-executive,non-independentDirector

71 Eschenweg10,CH-8645,Jona,Switzerland

May17,2014

DalmiaBharatLtd.

39

Sr.No.

Name,DesignationDIN,

andOccupationAge Address

Directorofthe

Companysince

Detailsofotherdirectorship(s)*

Occupation:ProfessionalNationality:SwissDIN:00452691

4 Mrs.SushilaDeviSinghaniaNon-executive,non-independentDirectorOccupation:BusinessNationality:IndianDIN:00142549

84 11,GangaKuti,Cantonment,Kanpur,UttarPradesh,India208004

July26,2014

YaduInternationalLimited

5 Mr.AchintyaKaratiNon-executive,independentDirectorOccupation:ProfessionalAddress:Nationality:IndianDIN:00024412

74 29/203,EastEndApartments,MayurViharPhase–IExtension,Delhi,India110096

October24,2005

1 DeltonCablesLimited2 UflexLimited3 ShyamTelecomLimited4 Sangam(India)Limited5 TFS Business AdvisorsIndiaPrivateLimited

6 JayBharatMarutiLimited7 Ultimate FlexipackLimited

8 A.Karati BusinessAdvisorsPvt.Ltd.

6 Mr.JayantNarayanGodboleNon-executive,independentDirectorOccupation:ProfessionalNationality:IndianDIN:00056830

75 604/A,CottageLandCHS,Plot16/A,Sector19/A,Nerul(E),NaviMumbai,Maharashtra,India400706

July29,2006

1 EMBIOLimited2 Emami Paper MillsLimited

3 Saurashtra CementLimited

4 Kesar Terminals &InfrastructureLimited

7 Dr.KrishnaBehariAgarwalNon-executive,independentDirectorOccupation:BusinessNationality:IndianDIN:00339934

80 7/177,SwaroopNagar,Kanpur,UttarPradesh,India208002

August25,2007

1 KeyCorpLimited2 Jaykay EnterprisesLimited

3 J.K.CottonLimited4 Jaykaycem(Central)Ltd.

8 Mr.SuparasBhandariNon-executive,independentDirectorOccupation:ProfessionalNationality:IndianDIN:00159637

74 A-63,2ndFloor,GulmoharPark,Delhi,India110049

July29,2006

1 LTFoodsLtd.

40

Sr.No.

Name,DesignationDIN,

andOccupationAge Address

Directorofthe

Companysince

Detailsofotherdirectorship(s)*

9 Mrs.DeepaGopalanWadhwaNon-executive,independentDirectorOccupation:RetiredGovernmentOfficerNationality:IndianDIN:07862942

64 N-35,PanchsheelPark,MalviyaNagar,NewDelhi,India110017

Nov.3,2018 1. MindtreeLimited2. Corporate Catalyst IndiaPrivateLimited

3. JKPaperLimited4. Mukand Sumi SpecialSteelLimited

5. Bengal&AssamCompanyLimited.

10 Mr.SaurabhChandraNonExecutive,independentDirectorOccupation:RetiredGovernmentOfficerNationality:IndianDIN:02726077

65 A-09,NithariRoad,NoidaSector-30GautamBudhhaNagarNoida,U.P.-201301

May18,2019

1. VacmetIndiaLimited2. Multi Commodity

Exchange Of IndiaLimited

3. SBI Pension FundsPrivateLimited

11 Mr.AshokSinhaNonExecutive,independentDirectorOccupation:RetiredGovernmentOfficerNationality:IndianDIN:00070477

68 FlatNo.18,Kailash50PeddarRoadCumballaHill,Mumbai-400026

May18,2019

1. CiplaLimited2. The Tata Power

CompanyLtd.3. Coastal Gujarat Power

Ltd.4. Airasia(India)Ltd.5. Axis Asset

Management CompanyLimited

6. MaithonPowerLimited7. The Hospital and

Nursing BenefitsAssociation

12 Mr.AjayKumarSaraogiExecutiveDirector&CFO(WholeTimeDirector)Occupation:BusinessNationality:IndianDIN:00130805

63 H.No.2A/175,AzadNagar,Kanpur,U.P.-208002

June17,2020

1. JKPaintsandPigmentsLtd.

2. Jaykaycem (Central)Ltd.

3. Jaykaycem (Northern)Ltd.

4. YaduInternationalLtd.5. Merchant Chamber of

UttarPradesh

13 Mr.RaghavpatSinghaniaExecutive Director(Whole Time Director-Corporate and WhiteCement)Occupation:BusinessNationality:IndianDIN:02426556)

35 17,OakDrive,DLFChattarpurFarm,NewDelhi-110074

June17,2020

NIL

41

Sr.No.

Name,DesignationDIN,

andOccupationAge Address

Directorofthe

Companysince

Detailsofotherdirectorship(s)*

14 Mr.MadhavkrishnaSinghaniaExecutiveDirector(WholeTimeDirector-GreyCement)Occupation:BusinessNationality:IndianDIN:07022433)

31 17,OakDrive,DLFChattarpurFarm,NewDelhi-110074

June17,2020

NIL

Note:NoneoftheDirectors’namesareappearingintheRBIdefaulterlistand/orECGCdefaultlist.RemunerationoftheDirectors

(Rs.incrores)

Sl.No. NameoftheDirector

RemunerationpaidbythecompanyFY20-21

(UntilJune30,2020) FY19-20 FY18-19 FY17-18

1. YadupatiSinghania** - 21.25 18.60 14.242. ShriSudhirJalan 0.015 0.11 - -3. Smt.SushilaDeviSinghania 0.01 0.11 0.15 0.144. ShriA.Karati 0.015 0.13 0.12 0.125. ShriJ.N.Godbole 0.02 0.14 0.13 0.146. Dr.K.B.Agarwal 0.225 0.17 0.17 0.167. ShriK.N.Khandelwal## 0.0075 0.15 0.14 0.138. ShriRajKumarLohia# - - 0.12 0.129. ShriSuparasBhandari 0.0175 0.14 0.13 0.1310. Mr.PaulHeinzHugentobler 0.01 1.20 1.21 1.1911. Mrs.DeepaGopalanWadhwa 0.015 0.12 0.11 -12. ShriSaurabhChandra* 0.015 0.13 - -13. ShriAshokSinha* 0.0125 0.12 - -14. ShriRaghavPatSinghania*** 0.41 - - -15. ShriMadhavKrishna

Singhania***0.26 - - -

16. ShriAjayKumarSaraogi*** 0.609 - - -**includesremunerationinAEDfromforeignsubsidiarycompaniesduringthecalendaryear2018.#Ceasedw.e.f.3.8.2019##Ceasedw.e.f.17.6.2020*appointedw.e.f.18.5.2019***appointedw.e.f.17.06.2020

(ii) DETAILSOFCHANGEINDIRECTORSSINCELASTTHREEYEARS:-

Sr.No. Name,DesignationandDIN

Dateofappointment/Resignation

DirectoroftheCompanysince(incaseofresignation)

Remarks

1. ShriShyamLalBansal,Non-Executive,IndependentDirector

12.06.2018 06.02.2016 Resignedduetopre-occupation

2. Smt.DeepaGopalanWadhwa,Non-Executive,IndependentDirector

03.11.2018 N.A. AppointedatBoardmeetingasAdditionalDirector

3. ShriSaurabhChandra,Non-Executive,IndependentDirector

18.05.2019 N.A. AppointedatBoardmeetingasAdditionalDirector

42

4. ShriAshokSinha,Non-Executive,IndependentDirector

18.05.2019 N.A. AppointedatBoardmeetingasAdditionalDirector

5. ShriRajKumarLohia,Non-Executive,IndependentDirector

03.08.2019 30.9.2004 ResolutionforreappointmentatAGMcouldnotbecarriedout

6. ShriSudhirJalan,Non-executive,Non-independentDirector

17.12.2019 N.A. AppointedthroughPostalBallot/E-votingasDirector

7. ShriKailashNathKhandelwal,Non-executive,Non-IndependentDirector

17.06.2020 09.02.2004 Resignedduetopre-occupation

8. ShriRaghavpatSinghania,ExecutiveDirector

17.06.2020 N.A. AppointedatBoardmeetingasAdditionalDirector

9. ShriMadhavkrishnaSinghania,ExecutiveDirector

17.06.2020 N.A. AppointedatBoardmeetingasAdditionalDirector

10. ShriAjayKumarSaraogi 17.06.2020 N.A. AppointedatBoardmeetingasAdditionalDirector

(F) FOLLOWINGDETAILSREGARDINGAUDITORSOFTHECOMPANY(i) DETAILSOFTHESTATUTORYAUDITOROFTHECOMPANY:-

NAME ADDRESS AUDITORSSINCEM/s S.R. Batliboi & Co. LLP,CharteredAccountants

GolfViewCorporateTowerB,Sector42,SectorRoad,Gurgaon-122002TelephoneNo.+911244644000Fax:+911244644050

April1,2017

(ii) DETAILSOFCHANGEINAUDITORSINCELASTTHREEYEARS:-

Name AddressDateof

Appointment/Resignation

DateofCessation

AuditoroftheIssuersince(incaseof

resignation)

Remarks

Therehasbeennochangeintheauditorsincelastthreeyears(G) DETAILSOFBORROWINGSOFTHECOMPANYOUTSTANDINGASON(30.06.2020)

DetailsofSecuredLoanFacilities:-1. CashCredit/WorkingCapitalDemandLoan(“WCDL”)facilitiesavailedbyourCompany

(₹incrores)

Sr.No.

Bank AmountSanctioned

Amountoutstanding

asperBankason30.06.2020

RepaymentDate/Sched

ule

Prepayment

43

1 IndianBank(erstwhileAllahabadBank)LeadBank

65.00 14.82 OnDemand NotApplicable

2 IndianBank 65.00 0.003 StateBankofIndia 65.00 44.994 PunjabNationalBank

(erstwhileUnitedBankofIndia)

10.00 0.00

5 UnionBank(erstwhileAndhraBank)

35.00 0.00

6 IDBIBank 45.00 28.997 BankofBaroda 55.00 22.998 CanaraBank 35.00 12.60

Total 375.00 124.39 Note:Non-FundBasedsanctionedlimithasnotbeenconsideredinabove.2. OverdraftagainstFixedDeposit(“ODFD”)facilityavailedbyourCompany

(₹incrores)

Sr.No.

Bank AmountSanctioned

Amountoutstanding asperBank ason30.06.2020

RepaymentDate/Sched

ule

Prepayment

1 StateBankofIndia 5.40 0.72

OnDemand

NotApplicable

2 PunjabNationalBank(erstwhileOrientalBankofCommerce)

22.69 3.85

3 UnionBank 0.98 0.694 IDBIBank 41.28 0.805 HDFCBankLtd. 0.90 0.156 ICICIBank 0.45 0.077 UnionBank(erstwhile

CorporationBank)0.45 0.15

Total 72.15 6.43 3. DetailsofSecuredCorporateLoan,TermLoanandTermLoanunderConsortiumason30.06.2020:

(₹incrores)

SN

Lender's

Name

DateofSanction

Amount

Sanctioned

AmountOutstandingasperBankason30.06.2020

RepaymentSchedule/Final

MaturityDate

Security Prepayment

1 StateBankofIndia

21.08.2015

100.00 58.46 31unequal

quarterly

install

Securedbypari-passufirstchargeonthe Company's PPE (movable &immovable) by way of equitablemortgageon immovableAssetsandhypothecationonmovableproperty,plant&Equipment(PPE)relatedto

Nil, if paidout of ownsources oftheCompany.

44

mentspayable

during30.09.2016to

31.03.2024

company's existing plant at i)Company's Existing Plant atNimbahera having capacity of 3.25MnTPA.ii)Company'sExistingPlantat Mangrol having capacity of 0.75MnTPA.iii)Company'sExistingPlantatGotanconsistingofWhiteCementplanthavingcapacityof0.40MnTPAandThermalPowerPlant.

2%,incasethe loan isprepaidother thanownsources.

2 ExportImportBankofIndia

10.02.2014

50.00 21.58 28equalquarterly

installmentspayable

during30.06.2016to

30.03.2023

Secured by equitable mortgage ofimmovable properties andhypothecation of movable PPEpertaining to undertaking of J.K.CementWorks,Gotanexceptcurrentassetsandvehicles.

prepaymentpremiumat the rate0.50%p.a

3 StateBankofIndia

LoanAgreementexecuted

on08.03.201

6

80.30 29.00 25unequal

quarterly

installmentspayable

during31.03.2016to

31.03.2022

SecuredbyFirstPari-passuchargebyway of equitable mortgage ofimmovable Properties (exceptmining land) and hypothecationmoveablenoncurrentassets,presentandfuturePertainingtoJ.K.CementWorksandThermalpowerplant,Muddapur,Karnataka.

Nil, if paidout of ownsources oftheCompany.2%,incasethe loan isprepaidother thanownsources.

4 StateBankofIndia

20.05.2019

150.00 66.06 34unequal

quarterly

installmentspayable

during01.06.2020to

01.09.2028

Securedbyfirstpari-passuchargebyway of equitable mortgage theimmovableassetsexceptminingland& vehicles and hypothecationmovable PPE, present and futurepertaining to J.K. Cement Works,Muddapur,Karnataka.

Nil, if paidout of ownsources oftheCompany.0.50%, incase theloan isprepaidfromotherthan ownsources.

45

5 StateBankofIndia

28.03.2013

50.00 15.46 32unequal

quarterly

installmentspayable

during30.06.2015to

31.03.2023

Securedbyfirstpari-passuchargebyway of equitable mortgage theimmovableassetsexceptmininglandand hypothecation movable PPE,presentandfuturepertainingto J.K.Cement Works, Muddapur,Karnataka.

Nil, if paidout of ownsources oftheCompany.0.50%, incase theloan isprepaidfromotherthan ownsources.

6 IndianBank(erstwhile

Allahabad

Bank)

29.04.2013

25.00 10.23 32equalquarterly

installmentspayable

during14.11.2015to

14.08.2023

Securedbyfirstpari-passuchargebyway of equitable mortgage theimmovableassetsandhypothecationmovable PPE, present and futurepertaining to J.K. Cement Works,Muddapur, Karnataka (excludingcurrentassets).

Nil, if paidout of ownsources oftheCompany.0.50%, incase theloan isprepaidfromotherthan ownsources.

7 ExportImportBankofIndia

09.01.2015

100.00 68.47 28unequal

quarterly

installmentspayable

during01.06.2017to

01.03.2024

Securedagainst exclusive chargeonmovable PPE (by way ofhypothecation) and on immovablePPE(by way of equitablemortgage)related to theWall Putty project atKatni, Madhya Pradesh (excludingcurrent assets and mining land, ifany).

Nil, if paidout of ownsources oftheCompany.0.50%, incase theloan isprepaidfromotherthan ownsources.

8 IDBIBank(LeadBank

CommonLoan

Agreementdated15.09.201

6amended

on22.01.201

8

126.75 117.00 52unequal

quarterly

installmentspayable

during31.03.2018to

Securedby First chargebywayofmortgage, on the immovableproperties,bothpresentandfuturepertainingto,thenewcementPlantat Mangrol, Rajasthan (save andexceptminingland)havingcapacityof 1.50 MnTPA including captivepower plant of 25MW andwasteheatrecoverybasedpowerplantof10 MW and split Grinding Unit atJharli, Haryana having capacity of1.50MnTPA and hypothecation ofthe movable PPE of the aboveplants (save and except Current

Nil, if paidout of ownsources oftheCompany.0.50%, incase theloan isprepaidfromotherthan ownsources.

IndianBank(erstwhileAllahabadBank)

97.50 90.63

UnionBank(erstwh

90.00 83.04

46

ileAndhraBank)

31.12.2030

Assets), both present and futureand second charge on currentassets, present and future,pertaining to the above plants(subject topriorchargecreatedortobecreatedontheCurrentAssetsin favour of the Working CapitalLenders for securing the WorkingCapitalFacilities.

AXISBank

121.88 113.28

CanaraBank

73.13 67.50

BankofBaroda

73.13 67.50

ExportImportBankofIndia

170.62 158.60

IndianBank

97.50

89.77

TheJammu&KashmirBank

40.00 37.16

StateBankofIndia

124.50 115.71

UnionBankofIndia

50.00 45.96

PunjabNationalBank(erstwhileUnitedBankofIndia)

60.00 54.90

PunjabNationalBank(erstwhileOrientalBankofCommerce)

45.00 41.71

9 IndianBank(erstwhileAllahabadBank)LeadBank

ConsortiumLoanAgreementexecutedon07.03.2019

250.00 157.09 44unequal

quarterly

installmentspayable

during01.11.2022to

(i)Securedbypari-passufirstchargebywayofequitablemortgageoftheimmovable properties, present andfuture,pertainingtotheMangrol3rdLine clinker unit, Mangrol WHRPlant, Aligarh Grinding unit andBalasinorGrindingunitbutexcludingmining land.(ii) First pari-passu charge withexisting lendersbywayofequitablemortgage of the immovableproperties present and future,pertaining to theMangrolexpandedGrinding unit and Nimbahera

Nil, if paidout of ownsources oftheCompany.0.50%, incase theloan isprepaidfromotherthan ownsources.

StateBankofIndia

250.00 150.78

CanaraBank

250.00 162.50

47

UnionBankofIndia

160.00 95.88 01.08.2033

expandedGrindingunitbutexcludedthe mining land.(iii) Secured by pari-passu firstcharge by way of hypothecation ofthe movable fixed assets bothpresentandfuture,pertainingtotheMangrol 3rd Line clinker unit,MangrolWHRPlant,AligarhGrindingunit and Balasinor Grinding unit,(save and except the current assetsand vehicles) (iv) First pari-passucharge by way of hypothecation ofthe movable fixed assets, bothpresent and future, pertaining toMangrolexpandedGrindingunitandNimbahera expanded Grinding unit(save and except the current assetsand vehicles).(v)Securedbysecondchargebywayof hypothecation of the currentassetspertainingtoMangrol3rdlineclinker unit ,Mangrol WHR Plant,Aligarh Grinding unit ,BalasinorGrinding unit ,Mangrol ExpandedGrinding unit and NimbaheraExpandedGrindingunitbothpresentand future (subject to prior chargecreated or to be created on thecurrent assets in favour ofborrower's bankers for securingtheirworkingcapitaladvances.).

UnionBank(erstwhileAndhraBank)

130.00 82.81

PunjabNationalBank(erstwhileUnitedBankofIndia)

130.00 77.38

TheJammu&KashmirBank

130.00 77.81

4. SecuredNon-ConvertibleDebentures

4.1 OurCompanyhas issued secured, redeemable, non-convertibledebenturesundervarious seriesofwhich₹382.50croresisoutstandingasonJune30,2020,thedetailsofwhicharesetforthbelow:

(₹Incrores)

Sr.No.

DebentureName/Series

ISINAmountOutstand

ing

DateofAllotment

FinalMaturityDate

Coupon

(p.a.)in%

Tenor/

Period(Days)

CreditRating

1 NonConvertibleDebenturesissuedinFY2010-11

INE823G07029

21.00 20.08.2010

20.08.2020

10.50%

10Years

CARE‘AA’

INE823G07037

3.00 25.08.2010

25.08.2020

10.50%

10Years

CARE‘AA’

INE823G07045

16.50 09.09.2010

09.09.2020

11.00%

10Years

CARE‘AA’

INE823G07052

3.00 02.11.2010

02.11.2020

10.50%

10Years

CARE‘AA’

INE823G07060

4.50 01.01.2011

01.01.2021

11.00%

10Years

CARE‘AA’

INE823G07078

18.00 24.01.2011

24.01.2021

11.00%

10Years

CARE‘AA’

INE823G07086

11.10 05.02.2011

05.02.2021

11.00%

10Years

CARE‘AA’

INE823G07102

5.40 28.03.2011

28.03.2021

11.00%

10Years

CARE‘AA’

48

Sr.No.

DebentureName/Series

ISINAmountOutstand

ing

DateofAllotment

FinalMaturityDate

Coupon

(p.a.)in%

Tenor/

Period(Days)

CreditRating

2 NonConvertibleDebenturesissuedinFY2013-14

INE823G07110

#20.00 23.07.2013

23.07.2020

10.50%

10Years

CARE‘AA’

INE823G07128

25.00 02.08.2013

02.08.2023

10.50%

10Years

CARE‘AA’

INE823G07136

20.00 08.08.2013

08.08.2023

10.50%

10Years

CARE‘AA’

INE823G07144

35.00 13.09.2013

13.09.2023

11.00%

10Years

CARE‘AA’

INE823G07151

25.00 01.10.2013

01.10.2023

11.00%

10Years

CARE‘AA’

INE823G07169

50.00 09.10.2013

09.10.2023

11.00%

10Years

CARE‘AA’

INE823G07177

5.00 09.10.2013

09.10.2023

11.00%

10Years

CARE‘AA’

INE823G07185

20.00 01.10.2013

01.10.2023

10.50%

10Years

CARE‘AA’

3 NonConvertibleDebenturesissuedinFY2014-15

INE823G07193

100.00 06.05.2015

06.05.2025

9.65% 10Years

CARE‘AA’

TOTAL 382.50 #Note:Put/Calloptionisapplicableon20Nos.Non-ConvertibleDebenturesunderISININE823G07110.OurCompanyhasgivennoticetodebentureholderforavailmentofcalloptionbypaymentofentireoutstandingonJuly23,2020againstthese20Nos.debentures.DetailsofUnsecuredLoanFacilities:-

(AmountinCrores)

S.No.

Lender’sname

DateofSanction

AmountSanctione

d

AmountOutstandingasonJune30,2020

FinalMaturityDate

Repaymentschedule Prepayment

NILDETAILSOFANYINTER-CORPORATELOANS,DEPOSITSANDOTHERBORROWINGS

(Rs.incrores)

Sr.No. Lender’sName Dateof

disbursementRateofInterest

Maturitydate

AmountoutstandingasonJune30,2020

1. NIL(iv)LISTOFTOP10DEBENTUREHOLDERS(ASON30.06.2020)

Sr.No. NAMEOFDEBENTUREHOLDERS Rs.inCr.

1. LifeInsuranceCorporationofIndia. 118.002 CanaraBank 90.503 UnionBank 50.004 PunjabNationalBank 29.505 BankofIndia 25.006 IDBIMutualFund 15.00

49

7 BankofBaroda 10.008 JKCementLtd.EmployeeGratuityFund 8.009 IDBIBankLtd. 5.4010 AKCapitalFinanceLtd. 5.00

Total 356.40(v)THEAMOUNTOFCORPORATEGUARANTEEISSUEDBYTHEISSUERALONGWITHNAMEOF

THECOUNTERPARTY(LIKENAMEOFTHESUBSIDIARY,JVENTITY,GROUPCOMPANY,ETC)ONBEHALFOFWHOMITHASBEENISSUEDASON30.06.2020

TheCompanyprovidedcorporateguarantee forextending financialaccommodation toFujairahstepdown subsidiary amounting to Rs. 464.33 crores (USD 61.479 Mn outstanding as on 30.06.2020).ConversionrateofUSDtoINRasonJune30,2020is75.527/USD. (vi)DETAILS OF COMMERCIAL PAPER:- THE TOTAL FACE VALUE OF COMMERCIAL PAPERS

OUTSTANDINGASON30.06.2020Nil

(vii) DETAILS OF REST OF THE BORROWING (IF ANY INCLUDING HYBRID DEBT LIKE FCCB,

OPTIONALLYCONVERTIBLEDEBENTURES/PREFERENCESHARES)ASON30.06.2020PartyName(incaseofFacility)/InstrumentName

TypeofFacility/Instrument

AmtSanctioned/Issued

PrincipalAmtOutstanding

RepaymentDate/Schedule

CreditRating

Secured/Unsecured

Security

Nil(viii)DETAILSOFALLDEFAULT/SAND/ORDELAYINPAYMENTSOFSTAUTORYDUES,INTERESTAND PRINCIPAL OF ANY KIND OF TERM LOANS, DEPOSITS, DEBT SECURITIES AND OTHERFINANCIALINDEBTEDNESSINCLUDINGCORPORATEGUARANTEEISSUEDBYTHECOMPANY,INTHEPAST5YEARS

Nil(ix)DETAILSOFANYOUTSTANDINGBORROWINGSTAKEN/DEBTSECURITIESISSUEDWHERETAKEN/ISSUED(I)FORCONSIDERATIONOTHERTHANCASH,WHETHERINWHOLEORPART,(II)ATAPREMIUMORDISCOUNT–,OR(III)INPURSUANCEOFANOPTION;

Nil

(X)AnyDefaultinAnnualfilingoftheCompanyundertheCompaniesAct,2013ortherulesmadethereunder.

Nil

(xi) Class andnamesof theproposed allottees and thepercentage of post privateplacementcapitalthatmaybeheldbythem

NotApplicable(xii)changeincontrolpursuanttotheprivateplacement

NotApplicable(xii)thenumberofpersonstowhomallotmentonpreferentialbasis/privateplacement/rightsissuebasishavealreadybeenmadeduringtheyear(bothintermsofnumberofsecuritiesandprice);

Nil

50

(xiii) details of significant and material orders passed by any regulator, court or tribunalimpactingthegoingconcernoftheissueranditsfutureoperations;Exceptasstatedin“MaterialoutstandingregulatorylitigationinvolvingourCompany”onpage59,ofthisInformationMemorandum,therearenosignificantandmaterialorderspassedbytheregulators,courtsandtribunalsimpactingthegoingconcernstatusofourCompanyanditsfutureoperations.(H)DETAILSOFPROMOTERSOFTHECOMPANYi. DETAILS OF PROMOTER HOLDING IN THE COMPANY AS ON THE LATEST QUARTER END30.06.2020Categoryofshareholder

Nos.ofshareholders

No.offullypaidupequitysharesheld

Totalnos.sharesheld

Shareholdingasa%oftotalno.ofshares(calculatedasperSCRR,1957)Asa%of(A+B+C2)

Numberofequitysharesheldindematerializedform

A1)Indian

0

Individuals/HinduundividedFamily

11 1,36,33,859 1,36,33,859 17.64 1,36,33,839

GaurHariSinghaniaJointlywithVasantlalD.Mehta&RaghubirPrasadSinghania

1 20 20 0

SushilaDeviSinghania

1 85,957 85,957 0.11 85,957

YadupatiSinghania 1 1,20,64,198 1,20,64,198 15.61 1,20,64,198KavitaYSinghania 1 13,05,452 13,05,452 1.69 13,05,452KalpanaSinghania 1 4,263 4,263 0.01 4,263ManoramaDeviSinghania

1 31,465 31,465 0.04 31,465

NidhipatiSinghania

1 33,428 33,428 0.04 33,428

RamapatiSinghania

1 49,662 49,662 0.06 49,662

AbhishekSinghania

1 58,994 58,994 0.08 58,994

MadhavKrishnaSinghania

1 210 210 0 210

RaghavpatSinghania

1 210 210 0 210

AnyOther(specify)

12 3,12,32,720 3,12,32,720 40.42 3,12,32,620

KailashNathKhandelwalJointlywithRadhaRaniKhandelwal

1 1,000 1,000 0 1,000

RadhaRaniKhandelwalJointlywithKailashNathKhandelwal

1 500 500 0 500

51

YaduInternationalLtd.

1 3,10,34,518 3,10,34,518 40.16 3,10,34,478

J.K.TradersLtd. 1 1,81,254 1,81,254 0.23 1,81,254G.H.SecuritiesPvt.Ltd.

1 20 20 0

YaduSecuritiesPvt.Ltd.

1 40 40 0

AjayKumarSaraogi

1 3,340 3,340 0 3,340

PushpaSaraogi 1 5,048 5,048 0.01 5,048AmritaSaraogi 1 3,000 3,000 0 3,000AnilKumarAgrawal

1 3,940 3,940 0.01 3,940

PrashantSeth 1 20 20 0 20SatishKumarAgarwal

1 40 40 0 40

SubTotalA1 23 4,48,66,579 4,48,66,579 58.07 4,48,66,459A2)Foreign

0

A=A1+A2 23 4,48,66,579 4,48,66,579 58.07 4,48,66,459(I) ABRIDGED VERSION OF AUDITED CONSOLIDATED (WHEREVER AVAILABLE) ANDSTANDALONEFINANCIALINFORMATION(LIKEPROFIT&LOSSSTATEMENT, BALANCE SHEETAND CASH FLOW STATEMENT) FOR AT LEAST LAST THREE YEARS AND AUDITORQUALIFICATIONS,IFANY.*REFERANNEXURE1

Anychangeinaccountingpoliciesduringthelastthreeyearsandtheireffectontheprofitsandthereservesofthecompany.–There is no change in accounting policies in last three financial years except as required by IndianAccountingStandards(IndAS)notifiedunderCompaniesAct,2013.Relatedpartytransactionsenteredduringthelastthreefinancialyearsimmediatelyprecedingthe year of circulation of Disclosure Document including with regard to loans made or,guaranteesgivenorsecuritiesprovided:The Company has entered into contracts / Arrangements / Transactions with Related Parties. AllRelatedPartyTransactionswereplacedbeforetheAuditCommitteeforreviewandapproval.ApprovalhasbeenobtainedforRelatedPartyTransactionswhichareofrepetitivenatureand/orenteredintheOrdinaryCourseofBusinessandareatArm’sLength.ApprovalofBoardhasbeenobtainedforRelatedPartyTransactionswhereverrequired.

Summary of reservations or qualifications or adverse remarks of auditors in the last fivefinancialyearsimmediatelyprecedingtheyearofcirculationofDisclosureDocumentandtheirimpactonthefinancialstatementsandfinancialpositionofthecompanyandthecorrectivestepstaken and proposed to be taken by the company for each of the said reservations orqualificationsoradverseremark.–There has been no qualification raised of the auditors in the last five financial years immediatelyprecedingtheyearofcirculationofDisclosureDocument.

(K) ANY MATERIAL EVENT/ DEVELOPMENT OR CHANGE HAVING IMPLICATIONS ON THEFINANCIALS/CREDIT QUALITY (E.G. ANY MATERIAL REGULATORY PROCEEDINGS AGAINST THEISSUER/PROMOTERS, TAX LITIGATIONS RESULTING IN MATERIAL LIABILITIES, CORPORATERESTRUCTURING EVENT ETC) AT THE TIME OF ISSUEWHICHMAY AFFECT THE ISSUE OR THEINVESTOR’SDECISIONTOINVEST/CONTINUETOINVESTINTHEDEBTSECURITIES.

52

MaterialoutstandingtaxlitigationagainstourCompany:1. Our Company has received 11 show cause notices from the Excise Department for alleged short

paymentofcentralexcisedutyoncementsold in50kgbagsto industrial/ institutionalconsumerscumulatively amounting to ₹ 202.12 crores for the period between July 2011 toMarch 2018 andcontravention of Rules 4, 6 and 8 of the Central Excise Rules, 2002. Thesematters are currentlypending.

2. OurCompanyreceivedashowcausenoticedatedOctober3,2008fromtheOfficeoftheCommissioner,Central Excise Commissionerate, Jaipur – II, Jaipur, Rajasthan for alleged irregular availing andutilizationofinadmissibleCENVATcreditof₹6.61croreduringtheperiodfromOctober,2007toApril,2008oncapitalgoodslikeparts,componentsandaccessoriesreceivedinourfactoryatNimbahera,Chittorgarh and subsequently, cleared for use in the captive power plant being assembled at theaforesaidfactorybyThermaxInstrumentationLtd.andcontraventionofRules3(1),3(5)and9oftheCENVATCreditRules,2004.Thematteriscurrentlypending.

3. Deputy Commissioner of Income Tax – VI, Kanpur (“DCIT”) passed an assessment order datedDecember24,2010(“DCITOrder”)undersection143(3)oftheIncomeTaxAct,1961forassessmentyear 2008-09. The DCIT Order was subsequently rectified vide an order dated March 10, 2015(“Rectification Order”) whereby, additional depreciation claimed by our Company on plant andmachinery used for power generation was disallowed. Aggrieved by the Rectification Order, ourCompanyfiledanappealtotheCommissionerofIncomeTax(Appeals)II,Kanpur(“CIT(A)”)whichwasallowedbyCIT(A)byanorderdatedApril10,2015infavourofourCompany.Thereafter,DCITfiledanappealagainst theorderof theCIT(A)beforetheIncomeTaxAppellateTribunal,LucknowwhichwasdismissedbyanorderdatedOctober16,2015(“Impugnedorder”).AgainsttheImpugnedOrder,PrincipalCommissionerofIncomeTax–I,KanpurhasfiledanappealbeforetheHighCourtofJudicatureatAllahabad.Thecumulativetaxeffectofthisproceedingis₹10.72crore.Thematteriscurrentlypending.

4. Deputy Commissioner of Income Tax – VI, Kanpur (“DCIT”) passed an assessment order datedFebruary28,2011(“DCITOrder”)undersection143(3)oftheIncomeTaxAct,1961forassessmentyear2009-10,interalia,disallowingdepreciationclaimedongoodwillandaddingsubsidiesreceived,expenses incurred on advertisements/publicity and certain preliminary pre-operational expensesincurredtowardsincorporatingourCompany,tothetotalincome.AggrievedbytheDCITOrder,ourCompanyfiledanappealtotheCommissionerofIncomeTax(Appeals)II,Kanpur(“CIT(A)”)whichwaspartlyallowedbyanorderdatedJanuary24,2012infavourofourCompanyexceptinrelationtotheadditionofadvertisement/publicityexpensestothetotalincome.Thereafter,DCITfiledanappealagainst the order of the CIT(A) before the Income Tax Appellate Tribunal, Lucknow which wasdismissedbyanorderdatedOctober30,2015 (“Impugnedorder”).Against the ImpugnedOrder,PrincipalCommissionerofIncomeTax–I,Kanpurhasfiledincometaxappealno.266of2016beforetheHighCourtofJudicatureatAllahabad.Thecumulativetaxeffectofthisproceedingis₹11.11crore.Thematteriscurrentlypending.MaterialoutstandingregulatorylitigationinvolvingourCompany:AgainstourCompany:

1. TheCompetitionCommissionofIndia(“CCI”)byitsorderdatedJune20,2012incaseno.29/2010heldourCompanyandcertainothercementmanufacturersguiltyof,inter-alia,collusivepricefixing,andlimiting and controlling the production and supply of cement in themarket, thereby contraveningsection3(3)(a)andsection3(3)(b)oftheCompetitionAct,2002(the“CompetitionAct”).TheCCIalsodirected our Company to cease and desist from indulging in any activity relating to agreement,understandingorarrangementonprices,productionandsupplyofcementinthemarket.Furthermore,theaforesaidorderoftheCCIimposedapenaltyof₹128.54croreonourCompanyundersection27(b)of theCompetitionAct.Aggrievedby the aforesaidorder, ourCompany filed appeal no. 112/2012before theCompetitionAppellateTribunal (“COMPAT”) against theaforesaidorderdated June20,

53

2012oftheCCI.Subsequently,theCOMPATbyitsorderdatedDecember11,2015allowedtheappealandsetasidetheaforesaidorderoftheCCIandremandedbackthemattertotheCCIwithadirectiontopassafreshorder.Subsequently,theCCIbyitsorderdatedAugust31,2016(“ImpugnedOrder”)passedasimilarorderaswaspassedon June20,2012,directingourCompany to ceaseanddesist from indulging inanyactivity relating to agreement, understanding or arrangement on prices, production and supply ofcementinthemarket.TheImpugnedOrderalsoimposedapenaltyof₹128.54croreonourCompanyundersection27(b)oftheCompetitionAct.AggrievedbytheImpugnedOrder,ourCompanyfiledappealno.55/2016(“AppealNo.1”)beforetheCOMPAT, seeking setting aside of the Impugned Order and also filed an interlocutory applicationbearingreferenceno.149/2016tostaytheImpugnedOrderanddirectthatnocoerciveactionbetakenforrealizationofpenaltyamounttillthefinaladjudicationoftheAppealNo.1.TheCOMPATbyitsorderdatedNovember21,2016stayedtheImpugnedOrdersubjecttodepositof10%ofthepenaltyamount.Subsequently, theCOMPATby its orderdatedFebruary16, 2017 in I.A.No. 176/2016 (“ModifiedOrder”)reducedtheaforesaidpenaltyto₹65.56crore,andaccordingly,modifiedthead-interimorderdatedNovember21,2016.OurCompanyhasdepositedtherequisiteamountintermsoftheModifiedOrder.Inparallel,theCCIinitsorderdatedAugust31,2016inRTPENo.52/2006heldourCompany,ShreeCementLimitedandcertainothercementmanufacturersguiltyof,inter-alia,collusivepricefixing,andlimitingandcontrollingtheproductionandsupplyinthemarket,therebycontraveningsection3(3)(a)andsection3(3)(b)of theCompetitionAct.However, theCCIdidnot findappropriate to issueanyremediesagainstourCompanyastheCCIbyitsseparateorderincaseno.29/2010hadimposedapenaltyof₹128.54croreanddirectedourCompanytoceaseanddesistfromindulginginanyactivityrelatingtoagreement,understandingorarrangementonprices,productionorsupplyofcementinthemarket.Aggrievedbythis,ourCompanyfiledappealno.72/2016(“AppealNo.2”)seekingtosetasidetheorderdatedAugust31,2016inRTPENo.52/2006.ThenotificationdatedMay26,2017issuedbytheMinistryofFinancereplacedtheCOMPATwiththeNationalCompanyLawAppellateTribunal(“NCLAT”)witheffect fromMay26,2017.SubsequentlyNCLAT,NewDelhiby its commonorderdated July25,2018 (“NCLATOrder”)dismissedboth theappealsi.e.AppealNo.1andAppealNo.2andreaffirmedthequantumofpenalty.Aggrievedbythesaidorder,ourCompanyfiledanappealdatedSeptember18,2018beforetheSupremeCourtofIndia(“Supreme Court”) under section 53T of the Competition Act to set aside the NCLAT Order. TheSupremeCourtbyanorderdatedOctober5,2018admittedtheappealandstayedtheoperationoftheNCLATOrder taking into consideration ad-interim order datedNovember 21, 2016 readwith theModifiedOrder,ondepositoftwofixeddepositreceiptsof₹6.56croreand₹0.52crore,eachvaliduptoApril08,2019.Thematteriscurrentlypending.

2. TheerstwhileMonopoliesandRestrictiveTradePracticesCommission(“MRTPCommission”)byitsletter dated May 25, 2006 directed Director General of Investigation & Registration (“DGIR”) toconductapreliminaryinvestigationintotherestrictivetradepracticesallegedlyadoptedbycementmanufacturersbyformingacartel.Thisinvestigationwasorderedonthebasisofcertainpressreports.TheDGIRsubmitted itspreliminaryreportdatedJuly4,2007statingthatourCompanyalongwithcertainother cementmanufacturerswere engaged in restrictive tradepracticesby fixingpricesofcementinconjunctionwitheachother,therebycontraveningsection33(1)(d)readwithsection2(a)oftheMonopoliesandRestrictiveTradePracticesAct,1969(“MRTPAct”)andrequestedtheMRTPCommissiontopasssuchordersasitmaydeemfitandappropriateundersection37(1)oftheMRTPAct.TheMRTPCommissionorderedanenquiryandissuedanoticeofenquirydatedAugust6,2007inRTPE No. 15/2007 to our Company for filing a reply to the notice of enquiry. Subsequently, ourCompany has filed its responses to the notice of enquiry. Subsequently, in view of the matterspertainingtocartelizationbycementcompaniespendingbeforetheSupremeCourt,theCompetitionAppellateTribunalvideitsorderdatedJuly5,2016adjournedthematterwithlibertytobothoreitherparty to fileanapplication for listingof thismatterafter theaforesaidmatterspendingbefore theSupremeCourtaredisposedoff.Thematteriscurrentlypending.

54

3. The Director, Supplies & Disposal, Haryana (“Informant”) filed informationwith the Competition

Commissionof India (“CCI”)under section19(1)of theCompetitionAct,2002 (“CompetitionAct”)againstourCompanyandcertainothercementmanufacturers(“OppositeParties”),alleging,inter-alia,thattheOppositePartiescolludedwitheachotherandattemptedtorigthebidinanoticeinvitingtenderforsupplyofcementissuedbytheInformant,therebycontraveningsection3oftheCompetitionAct.Subsequently,theCCIbyitsorderdatedJanuary2,2014passedanorderundersection26(1)ofthe Competition Act directing the Director General to initiate an investigation into the matter.Thereafter,referencecaseno.05/2013wasregisteredandtheCCI,byitsorderdatedJanuary19,2017(“ImpugnedOrder”),heldtheOppositePartiesincontraventionofsection3(1)readwithsection3(3)of theCompetitionActanddirected theOppositeParties to ceaseanddesist from indulging in theacts/conductincontraventionoftheCompetitionAct.TheImpugnedOrderalsoimposedapenaltyof₹ 9.26 crore on our Company under section 27(b) of the Competition Act. Aggrieved by this, ourCompanyfiledappealno.05/2017(“Appeal”)beforetheCompetitionAppellateTribunal(“COMPAT”)seeking, inter-alia, setting aside of the Impugned Order. Alongside, our Company also filedinterlocutoryapplicationno.20/2017beforetheCOMPATseeking,inter-alia,stayingtheexecutionoftheImpugnedOrderandadirectionthatnocoerciveactionbetakenforrealizationofpenaltyamounttill the finaladjudicationof theAppeal.The ImpugnedOrderwassubsequentlystayedbyanorderdatedApril3,2017passedbytheCOMPAT.ThenotificationdatedMay26,2017issuedbytheMinistryofFinancereplacedtheCOMPATwiththeNationalCompanyLawAppellateTribunal(“NCLAT”)witheffectfromMay26,2017.ThematteriscurrentlypendingbeforeNCLAT.

4. TheerstwhileMonopoliesandRestrictiveTradePracticesCommissioninRTPENo.99/1990videitsorderdatedDecember20,2017(“ImpugnedOrder”)heldourCompanyandothersguiltyofindulgencein restrictive trade practices and collusive price fixing of cement, thereby contravening section33(1)(d)oftheMonopoliesandRestrictiveTradePracticeAct,1969,andpassedaceaseanddesistorder and a direction to our Company to not to indulge in any arrangement directly or indirectlythrough the instrumentality of CementManufacture Association in relation to fixing the prices ofcementinconcert.AggrievedbytheaforesaidImpugnedOrder,ourCompanyfiledanappealbearingreferenceno.1092/2008before theSupremeCourtof India (“SupremeCourt”), seeking, inter-alia,settingasideoftheImpugnedOrder.Thismatterhasbeentaggedwithcivilappealno.686/2008whichispendingbeforetheSupremeCourt.TheSupremeCourtvideitsorderdatedFebruary8,2012grantedastay.Thematteriscurrentlypending.

THEREHASBEENNOSUCHEVENTATTHETIMEOFISSUEWHICHMAYAFFECTTHEISSUEORTHEINVESTOR’SDECISIONTOINVEST/CONTINUETOINVESTINTHEDEBTSECURITIES.Detailsofanyinquiry, inspectionsorinvestigationsinitiatedorconductedundertheCompaniesAct,2013oranypreviouscompanylawinthelastthreeyearsimmediatelyprecedingtheyearofissue of private placement offer cum application letter in the case of company and all of itssubsidiaries, and if therewereanyprosecutions filed (whetherpendingornot), fines imposed,compounding of offences in the last three years immediately preceding the year of the privateplacementoffercumapplicationletterandifso,section-wisedetailsthereofforthecompanyandallofitssubsidiaries;NILFinancialorothermaterialinterestofthePromoters,DirectorsorKeyManagerialPersonnelintheoffer:NILDetailsofany litigationor legalaction-pendingor takenbyanyMinistryorDepartmentof theGovernmentorastatutoryauthorityagainstanypromoteroftheIssuerduringthelastthreeyearsandanydirectionissuedbysuchMinistryorDepartmentorstatutoryauthorityuponconclusionofsuchlitigationorlegalaction:-Except as stated below, there are no litigation or legal action pending or taken by any Ministry orDepartmentoftheGovernmentorastatutoryauthorityagainstourPromotersduringthelastthreeyearsimmediatelyprecedingtheyearofcirculationofthisInformationMemorandumandnodirectionhasbeen

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issuedbyanysuchMinistryofDepartmentorstatutoryauthorityuponconclusionofsuchlitigationorlegalaction.OurDirectors, Yadupati Singhania and SushilaDevi Singhania and certain other persons (“Applicant”),forming part of the promoter group of Jaykay Enterprises Limited, filed a suo-moto application datedJanuary 16, 2017 with the Securities and Exchange Board of India (“SEBI”) for settling the delayedcompliancewhichoccurredingivingopenofferunderregulation3(1)oftheSEBI(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011,whileacquiringcertainequitysharesofJaykayEnterprisesLimited.Pursuanttopaymentofanamountof₹0.18croreascommunicatedtotheApplicantbySEBIvideitse-maildatedOctober11,2007fortheaforesaiddefault,theSEBIvideitsorderdatedNovember9,2017bearingreferenceno.SO/EFD-2/SD/174/NOV/2017recordedthattheproceedingsthatmaybeinitiatedfortheaforesaiddefaultaresettledandnoenforcementactionwouldbeinitiatedfortheaforesaiddefault.Detailsofactsofmaterialfraudscommittedagainstthecompanyinthelastthreeyears,ifany,andifso,theactiontakenbythecompany:NIL(L)THENAMESOFTHEDEBENTURETRUSTEE(S)SHALLBEMENTIONEDWITHSTATEMENTTOTHEEFFECT THAT DEBENTURE TRUSTEE(S) HAS GIVEN HIS CONSENT TO THE ISSUER FOR HISAPPOINTMENT UNDER REGULATION 4 (4) AND IN ALL THE SUBSEQUENT PERIODICALCOMMUNICATIONSSENTTOTHEHOLDERSOFDEBTSECURITIES.In accordance with the provisions of (i) SEBI Debt Regulations issued vide circular no. LAD-NRO/GN/2008/13/127878datedJune06,2008,asamended,(ii)SecuritiesandExchangeBoardofIndia(Issue and Listing of Debt Securities) (Amendment) Regulations, 2012 issued vide circular no. LAD-NRO/GN/2012-13/19/5392datedOctober12,2012,asamended,(iii)Section71(5)oftheCompaniesAct,2013and(iv)SecuritiesandExchangeBoardofIndia(DebentureTrustees)Regulations,1993,theIssuerhasappointedIDBITrusteeshipServicesLimitedtoactasTrustees(“Trustees”)forandonbehalfoftheholder(s)oftheDebentures.TheaddressandcontactdetailsoftheTrusteesareasunder:Name: IDBITrusteeshipServicesLimited

Address: AsianBldg.,GroundFloor,17,R.KamaniMarg,BallardEstate,Mumbai400001

TeleNo: TelNo.:+912240807001FaxNo: Fax:+912266311776EmailId: itsl@idbitrustee.com/services@idbitrustee.comWebsite: www.idbitrustee.com

TheCompanyherebyundertakes that aDebentureTrustDeed shall be executedby it in favourof theDebentureTrusteewithinthreemonthsofclosureoftheissueoroffer.TheDebentureTrustDeedshallcontainsuchclausesasmaybeprescribedunderCompaniesAct,2013andFormno.SH.12asperRule18(5)ofCompanies(ShareCapitalandDebenture)Rule,2014underitandthosementionedinScheduleIVoftheSecuritiesandExchangeBoardofIndia(DebentureTrustees)Regulations,1993.TheDebentureHolder(s) shall,without furtheractordeed,bedeemed tohave irrevocablygiven theirconsenttotheDebentureTrusteeoranyoftheiragentsorauthorizedofficialstodoallsuchacts,deeds,matters and things in respect of or relating to the Debentures as the Debenture Trusteemay in theirabsolutediscretiondeemnecessaryorrequiretobedoneintheinterestoftheholder(s)oftheDebentures.AnypaymentmadebytheCompanytotheDebentureTrusteeonbehalfofthedebentureholder(s)shalldischarge theCompanypro tanto to theDebentureHolder(s).TheDebentureTrustee shallprotect theinterestoftheDebentureHoldersintheeventofdefaultbytheCompanyinregardtotimelypaymentofinterest and repayment of principal and shall take necessary action at the cost of the Company. NoDebentureHoldershallbeentitledtoproceeddirectlyagainsttheCompanyunlesstheDebentureTrustee,havingbecomesoboundtoproceed,failtodoso.IntheeventofCompanydefaultinginpaymentofinterest

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ondebenturesorredemptionthereof,anydistributionofdividendbytheCompanyshallrequireapprovaloftheDebentureTrusteeTheDebentureTrusteeshallperformitsdutiesandobligationsandexerciseitsrightsanddiscretions,inkeepingwith the trust reposed in theDebentureTrusteeby theholder(s) of theDebentures and shallfurtherconductitself,andcomplywiththeprovisionsofallApplicableLaws,providedthat,theprovisionsofSection20oftheIndianTrustsAct,1882,shallnotbeapplicabletotheDebentureTrustee.TheDebentureTrusteeshallcarryoutitsdutiesandperformitsfunctionsasrequiredtodischargeitsobligationsunderthe terms of CompaniesAct, 2013, SEBIDebt Regulations, the Securities and ExchangeBoard of India(Debenture Trustees) Regulations, 1993, the Debenture Trusteeship Agreement, security documents,DisclosureDocumentandallotherrelatedtransactiondocuments,withduecare,diligenceandloyalty. TheDebentureTrusteeshallbevestedwiththerequisitepowersforprotectingtheinterestofholder(s)oftheDebentures.TheDebentureTrusteeshallensuredisclosureofallmaterialeventsonanon-goingbasisandshallsupervisetheimplementationoftheconditionsregardingcreationofsecurityforthedebentures.(M)THEDETAILEDRATINGRATIONALE(S)ADOPTED(NOTOLDERTHANONEYEARONTHEDATEOFOPENINGOFTHEISSUE)/CREDITRATINGLETTERISSUED(NOTOLDERTHANONEMONTHONTHEDATEOFOPENINGOFTHEISSUE)BYTHERATINGAGENCIESSHALLBEDISCLOSED.CAREAA;Stable(DoubleA;Outlook:Stable)byCARERatingsLimited.Otherthanthecreditratingsmentionedhereinabove,Issuerhasnotsoughtanyothercreditratingfromanyothercreditratingagency(ies) fortheDebenturesofferedforsubscriptionunderthetermsof thisDisclosureDocument.Theaboveratingsarenotarecommendationtobuy,sellorholdsecuritiesandinvestorsshouldtaketheirowndecision.Theratingsmaybesubjecttorevisionorwithdrawalatanytimebytheassigningratingagenciesandeachratingshouldbeevaluatedindependentlyofanyotherrating.Theratingsobtainedaresubject to revision at any point of time in the future. The rating agencies have the right to suspend,withdrawtheratingatanytimeonthebasisofnewinformationetc.ThecopiesofRatingLetter(s)andRatingrationale(s)issuedbyCARERatingsLimitedvidealetterdatedJuly3,2020andJuly13,2020areenclosedinthisDisclosureDocumentunderthereferenceofANNEXURE2.

(N) IF THE SECURITY IS BACKED BY A GUARANTEE OR LETTER OF COMFORT OR ANY OTHERDOCUMENT/LETTERWITHSIMILARINTENT,ACOPYOFTHESAMESHALLBEDISCLOSED.INCASESUCH DOCUMENT DOES NOT CONTAIN DETAILED PAYMENT STRUCTURE (PROCEDURE OFINVOCATION OF GUARANTEE AND RECEIPT OF PAYMENT BY THE INVESTOR ALONG WITHTIMELINES)NotApplicable(O)COPYOFCONSENTLETTERFROMTHEDEBENTURETRUSTEESHALLBEDISCLOSEDThecopyofletterdatedJune30,2020fromIDBITrusteeshipServicesLimitedconveyingtheirconsenttoactasTrusteeforthecurrentissueofDebenturesisenclosedinANNEXURE3appearinginthisDisclosureDocument.(P)NAMESOFALLTHERECOGNISEDSTOCKEXCHANGESWHERETHEDEBTSECURITIESAREPROPOSEDTOBELISTEDCLEARLYINDICATINGTHEDESIGNATEDSTOCKEXCHANGE.

TheDebenturesareproposedtobe listedontheWholesaleDebtMarket(“WDM”)Segmentof theBSELimited.TheCompanyshallobtainanin-principleapprovalfromBSEforlistingofsaidDebenturesonitsWDMSegment.InpursuanceofSEBIDebtRegulations,theIssuershallmakelistingapplicationtoBSEforlistingofNCDswithin15DaysfromtheDeemedDateofAllotmentoftheNCD’s.

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Incaseofdelayin listingofthedebtsecuritiesbeyond20daysfromtheDeemedDateofAllotment,theIssuerwillpayadditionalinterestofatleast1%p.a.overthecouponratefromtheexpiryof30daysfromtheDeemedDateofAllotmenttillduelistingofsuchNCDs.InconnectionwithlistingofDebentureswithBSE,theCompanyherebyundertakesthat:

(a) It shall comply with conditions of listing of Debentures as may be specified in the Listing

AgreementwithBSE.

(b) RatingsobtainedbytheCompanyshallbeperiodicallyreviewedbythecreditratingagenciesandanyrevisionintheratingshallbepromptlydisclosedbytheCompanytoBSE.

(c) Anychangeinratingshallbepromptlydisseminatedtotheholder(s)oftheDebenturesinsuchmannerasBSEmaydeterminefromtimetotime.

(d) TheCompany,theDebentureTrusteeandBSEshalldisseminateall informationandreportsonDebentures including compliance reports filed by the Company and the Debenture TrusteeregardingtheDebenturestotheholder(s)ofDebenturesandthegeneralpublicbyplacingthemontheirwebsites.

(e) Debenture Trustee shall disclose the information to the holder(s) of the Debentures and thegeneralpublicbyissuingapressreleaseinanyofthefollowingevents:a. defaultbytheCompanytopayinterestonDebenturesorredemptionamount;b. revisionofratingassignedtotheDebentures;c. failuretocreatechargeontheassets.

(f) Theinformationreferredtoinpara(e)aboveshallalsobeplacedonthewebsitesoftheDebenture

Trustee,CompanyandBSE.

(g) TheIssuershall,tilltheredemptionofDebentures,submititslatestaudited/limitedreviewhalfyearlyconsolidated(whereveravailable)andstandalonefinancialinformationsuchasStatementofProfit&Loss,BalanceSheetandCashFlowStatementandauditorqualifications,ifany,totheDebenture Trustee within the timelines as mentioned in the SEBI (Listing Obligations andDisclosureRequirements)Regulations,2015asamendedfromtimetotime.Besides,theIssuershallwithin180daysfromtheendofthefinancialyear,submitacopyofthelatestannualreportto the Debenture Trustee and the Debenture Trustee shall be obliged to share the details sosubmittedwiththeDebentureholder(s)withinsevenworkingdaysoftheirspecificrequest.

(Q)OTHERDETAILS:DRRCREATION–TheCompanyshallcomplywiththerequirementswithregardtoDebentureRedemptionReserve(DRR)inaccordancewiththeCompanies(ShareCapitalandDebenturesRules),2014,asamendedfromtimetotimetotheextentapplicabletotheCompany.ii.NameandaddressoftheValuerwhoperformedvaluationofthesecurityoffered:

Niliii. ISSUE/INSTRUMENTSPECIFICREGULATIONS-RELEVANTDETAILS(COMPANIESACT, RBI GUIDELINES,ETC).

1. SecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008,asamended.

2. SecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations2015,asamended.

3. TheCompaniesAct,2013totheextentapplicableandnotified.

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4. TheCompaniesAct,1956provisionstotheextentnotreplacedbynotificationsw.r.tActof2013(18of2013),asamended.

5. Companies(ShareCapitalandDebentures)Rules,2014,asamended.6. IncomeTaxAct,1961,asamended.

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DISCLOSURESPERTAININGTOWILFULDEFAULTIncaseoflistingofdebtsecuritiesmadeonprivateplacement,thefollowingdisclosuresarerequiredtobemadeunderSEBIDebtListingRegulations:NameoftheBankdeclaringtheentityasaWilfulDefaulter:NILTheyearinwhichtheentityisdeclaredasaWilfulDefaulter:NILOutstandingamountwhentheentityisdeclaredasaWilfulDefaulter:NILNameoftheentitydeclaredasaWilfulDefaulter:NILStepstaken,ifany,fortheremovalfromthelistofwilfuldefaulters:NILOtherdisclosures,asdeemedfitbytheIssuerinordertoenableinvestorstotakeinformeddecisions:NILAnyotherdisclosureasspecifiedbytheBoard:NIL

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LEGAL PROCEEDINGS Our Company and its Subsidiaries are involved in various legal proceedings from time to time, mostly arising in the ordinary course of business. These legal proceedings are initiated by us and also by suppliers, regulators, and other parties. These legal proceedings are primarily in the nature of tax disputes, labour disputes, writ petitions, criminal complaints, civil suits and petitions pending before various authorities. This section discloses outstanding legal proceedings considered material in accordance with our Company’s “Policy for Determination of Materiality of Events/ Information” framed in accordance with Regulation 30 of the SEBI Listing Regulations (“Policy of Materiality”). Additionally, solely for the purpose of the Issue, our Company has also disclosed in this section, (i) all outstanding criminal proceedings involving the Company, Subsidiaries and Directors; and (ii) all other outstanding litigation involving our Company and its Subsidiaries, where the amount involved in such proceedings exceeds ₹ 5.00 crores. Further, other than as disclosed in this section, (i) there are no litigation or legal action pending or taken by any Ministry or Department of the Government or a statutory authority against any of our Promoters during the last three years immediately preceding the year of circulation of this Information Memorandum and no directions have been issued by such Ministry or Department or statutory authority upon conclusion of such litigation or legal action; (ii) there are no inquiries, inspections or investigations initiated or conducted under the Companies Act, 2013 or the Companies Act, 1956 in the last three years immediately preceding the year of circulation of this Information Memorandum involving our Company or any of its Subsidiaries nor are there any prosecutions filed (whether pending or not), fines imposed, compounding of offences in the last three years immediately preceding the year of this Information Memorandum involving our Company or its Subsidiaries; (iii) there are no defaults in repayment of (a) statutory dues; (b) debentures and interest thereon; (c) deposits and interests thereon and (d) any loan obtained from any bank or financial institution and interest thereon, as of the date of this Information Memorandum; (iv) there are no material frauds committed against us in the last three years; (v) there are no defaults in annual filing of our Company under the Companies Act, 2013 and the rules made thereunder; and (vi) there are no significant and material orders passed by the regulators, courts and tribunals impacting the going concern status of our Company and its future operations. It is clarified that for the purposes of the above, pre-litigation notices received by our Company, Subsidiaries, Directors or our Promoters shall, unless otherwise decided by our Board, not be considered as litigation until such time that our Company or any of its Subsidiaries or Directors or Promoters, as the case may be, is impleaded as a defendant in litigation proceedings before any judicial forum. Summaries of certain legal proceedings and other proceedings for the purposes of this section are set forth below:

I. Litigation involving our Company and its Subsidiaries A. Outstanding criminal proceedings involving our Company and/or its Subsidiaries Against our Company

1. N. Navaneeth Mohan, Senior Assistant Director of Factories, Belgaum Division – 2, Belgaum filed a criminal

complaint (C.C. No. 379/15) before Judicial Magistrate First Class, Mudhol (“JMFC”) under section 200 of the Code of Criminal Procedure, 1973 against Kailash Nath Khandewal and Antriksha Kumar Jain (together, the “Company Personnel”) for alleged violation of Rule 84 of the Karnataka Factories Rules, 1969 punishable under section 92 of the Factories Act, 1948 in relation to an accident at J.K. Cement Works, Muddapur (“Factory”) that led to death of a worker. In the meanwhile, the Company Personnel filed private complaint no. 27/2015 before JMFC against Abdul Rehman Khan, the contractor at the Factory (“Contractor”) under section 101 of the Factories Act, 1948. The JMFC took cognizance of the matter and the private complaint was converted into a criminal case bearing no. 957/15. The Contractor pleaded guilty and was subsequently convicted by the JMFC. Thereafter, Antriksha Kumar Jain filed a discharge application under section 101 of the Factories Act, 1948 (“Discharge Application”). The JMFC allowed the Discharge Application by an order dated May 28, 2016 and also re-issued the summons against Kailash Nath Khandelwal. Aggrieved by this, Kailash Nath Khandelwal filed criminal petition no. 100847/2016 before the High Court of Karnataka (“High Court”) under section 482 of the Code of Criminal Procedure, 1973 against

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the proceeding before the JMFC, which was subsequently stayed by the High Court. The matter is currently pending in relation to Kailash Nath Khandewal.

2. The Labour Enforcement Officer, Ahmedabad (“Complainant”) filed a criminal complaint bearing reference number 4449/2006 (“Complaint”) dated March 23, 2006 against our Company represented by our Director, Yadupati Singhania and three others, namely Rahul Saxena, Anil Gupta and Ramesh Prasad (collectively, the “Accused”) before the Metropolitan Magistrate VI, Ahmedabad allegedly for violation of provisions of the Payment of Gratuity Act, 1972 (“Payment of Gratuity Act”) and its rules for, inter-alia, non-display of notice specifying the name of the officer with designation authorized to receive notice under the Payment of Gratuity Act and rules, and failure to pay interest on delayed payment of gratuity to an employee. Our Company filed special criminal application no. 2733/2013 (“Application”) before the High Court of Gujarat (“High Court”), seeking the High Court to quash the aforesaid Complaint and stay the proceedings of the Complaint till the final disposal of the Application. The High Court by its order dated September 12, 2013 granted ad interim relief by staying the proceedings in the Complaint. The matter is currently pending.

By our Company 1. Our Company filed a complaint against Anil Patel and others under sections 23, 24, 34, 44, 52, 406, 415, 418,

420, 425, 463, 467, 468 and 471 of the Indian Penal Code, 1860 (“Complaint”) before Additional Chief Judicial Magistrate, Merta (“ACJM”) for supplying a poor-quality crusher machine. The Complaint was dismissed by an order dated April 15, 2017 passed by the ACJM. Aggrieved by this, our Company filed a revision petition before the Session Judge, Merta seeking quashing of the order passed by the ACJM. The matter is currently pending.

2. Our Company has filed 87cases under section 138 of the Negotiable Instruments Act, 1881 against various parties and the cumulative amount involved in these cases is approximately ₹ 7.73crores.

Against our Subsidiaries As on the date of this Information Memorandum, there are no outstanding criminal proceedings initiated against our Subsidiaries. By our Subsidiaries As on the date of this Information Memorandum, there are no outstanding criminal proceedings initiated by our Subsidiaries. B. Material outstanding civil litigation involving our Company and/or its Subsidiaries Against our Company 1. Bhanwar Singh and others (“Petitioners”) filed a writ petition bearing reference number 6591/2011 in the

nature of public interest litigation against our Company and others (“Respondents”) before the High Court of Rajasthan (“High Court”) praying for, inter-alia, a ban on mining activities within a radius of 10 kilometers from the Chittorgarh Fort in Rajasthan. The High Court by its order dated May 25, 2012 (“Impugned Order”) held, inter-alia, that no mining and blasting activities could take place within 10 kilometers from the Chittorgarh Fort Wall, and cancelled all mining leases within the aforesaid radius. Aggrieved by the Impugned Order, our Company has filed a special leave petition bearing reference number 23551/2012 before the Supreme Court of India (“Supreme Court”) against the Impugned Order seeking, inter-alia, to set aside the Impugned Order and to staying the operation and implementation of the Impugned Order as interim relief. The Supreme Court, subsequently stayed the operation of the Impugned Order and by its order dated July 29, 2013, permitted mining operations to be carried out beyond 2 kilometers from the Chittorgarh Fort Wall. The matter is currently pending.

By our Company

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1. Our Company filed writ petition no. 4147/2007 (“Original Petition”) before the High Court of Judicature at Rajasthan (“High Court”) challenging the constitutional validity of the Rajasthan Tax on Entry of Goods into Local Areas Act, 1999 and the rules made thereunder (together, the “Act”). The Original Petition was dismissed by the High Court by an order dated December 18, 2014 (“Impugned Order”) as the subject matter of the Original Petition was sub-judice before the Supreme Court of India (“Supreme Court”). Aggrieved by the Impugned Order, our Company filed special leave petition no. 376 of 2015 (“SLP”) before the Supreme Court. The Supreme Court took all matters relating to constitutional validity of entry tax arising from various high courts together for deciding at once in civil appeal no. 3453/2002 (“Appeal”) and consequently, the SLP was tagged with the Appeal. Thereafter, by a judgment dated November 11, 2016 (“Appeal Order”) passed in the Appeal, the constitutional validity of the entry tax was upheld by the Supreme Court. As a result thereof, the SLP was dismissed by the Supreme Court by its order dated March 22, 2017 with leave granted to our Company to approach the High Court again for adjudication of certain pending issues not decided by the Appeal Order in light of the principles enunciated therein. Subsequently, our Company filed two writ petitions (7093/2017 and 8021/2017) before the High Court against the State of Rajasthan and others for adjudication of the aforesaid pending issues and prayed for, inter alia, declaration of the Act as being discriminatory and ultra vires of the Constitution of India, 1950, quashing of demand notices issued under the Act and refund of the entry tax and interest thereon paid by the Company. Our Company has already paid a cumulative amount of ₹ 80.26 crore towards entry tax and interest thereon and the outstanding liability on the Company is ₹ 48.21 crore (“Outstanding Amount”). The High Court has granted interim protection to our Company against any coercive attempts at recovering the Outstanding Amount and the matter is currently pending.

2. Our Company had entered into a Power Delivery Agreement with VS Lignite Power Private Limited

(“VSLP”) dated March 7, 2007 (“Agreement”). VSLP subsequently failed to meet its contractual obligation to supply minimum guaranteed power under the Agreement. Aggrieved by this, our Company referred the matter to arbitration. Thereafter, an arbitral award dated June 14, 2012 (“MGP Award”) was passed whereby, VSPL was, inter alia, directed to supply power to our Company at ₹ 2.85 per Kwh for the entire period of the Agreement and to compensate for the amount spent by our Company on sourcing deficient electricity from Rajasthan Rajya Vidyut Vitran Nigam Limited (“RRVVNL”) due to short supply of minimum guaranteed power under the Agreement. VSPL then challenged the MGP award under section 34 of the Arbitration and Conciliation Act, 1996 (“Act”) before the Additional District Judge, Jaipur Metropolitan, who by its order March 16, 2013 refused to set aside the MGP award. VSPL, thereafter filed an application under section 37 of the Act before the High Court of Rajasthan in S.B Civil Misc. Appeal No. 1473/2013 which was dismissed vide an order January 12, 2017 (“Impugned Order”). Against the Impugned Order, VSPL filed a special leave petition before the Supreme Court of India which was dismissed by an order dated November 6, 2017. Since VSPL, failed to comply with the MGP Award, our Company filed an execution petition which is currently pending in the Commercial Court at Jaipur.

In parallel, VSPL by its letter dated February 28, 2015 to our Company expressed its inability to supply power to our Company with effect from March 1, 2015 due to an alleged occurrence of a force majeure event in terms of the Agreement and subsequently terminated the Agreement. Aggrieved by this, our Company referred the matter to arbitration. Thereafter, an interim award dated January 11, 2017 (“Interim Award”) passed by the arbitral tribunal so constituted, rejected the contention of VSPL regarding the occurrence of a force majeure event. VSPL challenged the Interim Award under section 34 of the Act which was eventually rejected by an order dated July 10, 2017 passed by the Additional District Judge, Jaipur Metropolitan, Jaipur. Thereafter, an arbitral award dated October 29, 2017 (“Force Majeure Award”) was passed whereby, VSPL was directed to restore supply of power to our Company and to compensate for the amount spent by our Company on sourcing electricity from RRVVNL due to non-supply of power by VSPL. Against the Force Majeure Award, VSPL preferred an application under section 34 of the Act before the District and Session Judge, Jaipur Metropolitan (“Application”). Our Company has filed its objections to the Application. The matter is currently pending. Further, our Company by its letters dated November 19, 2017 has raised demand of ₹ 116.14 crore and ₹ 22.78 crore from VSPL towards short supply of minimum guaranteed power from April 1, 2014 to February 28, 2015 and non-supply of power from March 1, 2015 to October 31, 2017.

3. Our Company filed a claim for refund of excess excise duty of ₹ 40.66 crores paid by our Company for the

period between September 1984 and October 1991 (“Refund Amount”) before the Assistant Commissioner,

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Central Excise, Ajmer (“Assistant Commissioner”). The Assistant Commissioner by its order dated May 27, 2003 rejected our claim for the Refund Amount. Aggrieved by this, our Company filed an appeal before the Commissioner (Appeals) Central Excise & Customs, Jaipur (“Commissioner Appeals”) against the aforesaid order passed by the Assistant Commissioner. The Commissioner Appeals by its order April 1, 2004 upheld the order passed by the Assistant Commissioner except to the extent of allowing refund of ₹ 2.15 crores paid by our Company for the period between September 1984 to June 1985 (“Repayment Amount”). Aggrieved by the order passed by Commissioner Appeals, our Company filed an appeal before the Customs, Excise & Service Tax Appellate Tribunal, New Delhi (“CESTAT”). The CESTAT by its order April 26, 2005 dismissed our appeal and also directed the Repayment Amount to be deposited in the Consumer Welfare Fund. Aggrieved by this, our Company filed central excise appeal no. 49 of 2007 before the High Court of Rajasthan claiming the Refund Amount along with interest at the rate of 15% per annum from the respective dates of payment of such excess duty, till the date of refund thereof to our Company. The matter is currently pending.

4. Our Company filed civil writ petition no. 2790/2013 (“First Petition”) against Ajmer Vidyut Vitaran Nigam Limited and others (“Respondents”) before the High Court of Rajasthan (“High Court”), seeking setting-aside, inter-alia, (a) the demand of electricity duty, water cess and urban cess raised by the Respondents on the units of electricity supplied by a captive generating plant at Bikaner established by V.S. Lignite Power Private Limited (“Captive Generating Plant”); and (b) a declaration that no electricity duty, water cess or urban cess is leviable on the electricity supplied by Captive Generating Plant to our Company. Our Company sought the aforesaid relief on the grounds that our Company is purchasing power from a captive power plant established by V.S. Lignite Power Private Limited and being its user-member, our Company is exempt from payment of electricity duty as per the notification dated March 8, 2006 (“Notification”) which remitted the electricity duty payable on the electricity consumed by a person generating energy for his use or consumption. The High Court by its order dated March 15, 2013 directed our Company to deposit the amount of bill except the amount of electricity duty and water conservation cess subject to the undertaking that in the event of dismissal of the First Petition, our Company would deposit the said amount within a period of fifteen days from the date of such dismissal. Meanwhile, our Company also filed civil writ petition no. 3547/2014 (“Second Petition”) against the Respondents before the High Court, seeking, inter-alia, quashing of demand/recovery of electricity duty, water conservation cess, urban cess, and cross subsidy surcharge amounting to ₹ 3.33 crore and ₹ 9.10 crore on the units of power supplied to Gotan and Nimbahera units of our Company, respectively, by the Captive Generating Plant, on similar grounds raised in the First Petition. The High Court by its order dated May 9, 2014 restrained the Respondents from taking any coercive action against our Company for not depositing the bill under the head of electricity duty, urban cess, water conservation cess and cross subsidy. Both these matters are currently pending.

Against our Subsidiaries As on the date of this Information Memorandum, there are no material outstanding civil litigations initiated against our Subsidiaries. By our Subsidiaries As on the date of this Information Memorandum, there are no material outstanding civil litigations initiated by our Subsidiaries.

II. Litigation involving our Directors

Except as stated below and as stated in this Information Memorandum and as set out below, there are no other outstanding criminal proceedings involving our Directors.

1. The Directorate of Revenue Intelligence, Lucknow (“DRI”) issued a show cause notice dated October 1,

2008 to PGY Associates, our Directors Sushila Singhania and Yadupati Singhania in the capacity of being partners of PGY Associates, and others, for wrongful availment of drawback incentives on export of ready-made garments to Russian firms under the then existing rupees-rouble agreement. Subsequently, the Commissioner of Customs, Inland Container Depot, New Delhi issued an order dated March 31, 2012

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(“Impugned Order”) directing, inter alia, disallowance and recovery of drawback incentives to the tune of ₹ 3.31 crore and imposition of a penalty amount of ₹ 1 crore on Yadupati Singhania. Aggrieved by the aforesaid Impugned Order, PGY Associates, Yadupati Singhania and Sushila Singhania have filed appeal bearing reference nos. C/2102/2012, C/2103/2012 and C/2516/2012, respectively, before the Customs, Excise and Service Tax Appellate Tribunal (“Tribunal”), New Delhi on July 19, 2012 seeking the Tribunal to set aside the Impugned Order. The Tribunal in custom appeal nos. C/2102-2106 and 2516/2012-B by its order dated December 29, 2016 recorded that the issue of jurisdiction of DRI to issue cause notice is pending before the Supreme Court and ordered to list the appeals in due course. Subsequently, the matter was disposed off on July 4, 2017. Subsequently, the Tribunal by its orders dated July 17, 2017 and July 4, 2017 set aside the Impugned Order and remanded the matter to the original adjudicating authority to decide the issue of jurisdiction after the availability of Supreme Court decision, and also ordered to maintain status quo till the final decision. The matter is currently pending.

2. The Assistant Commissioner of Income Tax, (Circle V) Kanpur (“ACIT”) filed a criminal case (C.C.

No. 108/1989) before Special Chief Judicial Magistrate, Kanpur (“SCJM”) under section 271(1)(c) read with section 274 of the Income Tax Act, 1961(“IT Act”) against M/s Plastic Products Limited together with its directors including Yadupati Singhania (“Accused”). The ACIT alleged violation of section 277 of the IT Act alleging deliberate verification by signature of false and incorrect statement in the return of income of the said company and seeking the issue of summons against the Accused. As of now, Yadupati Singhania, one of the Accused, has not received any summons.

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i. APPLICATIONPROCESS.

TheIssuerproposestoissuetheDebenturesonthetermsassetoutinthisDisclosureDocumentsubjecttotheprovisionsof theCompaniesAct, theSEBIDebtListingRegulationsandotherapplicable laws.Thissectionappliestoallapplicants.Modeofbidding:TheDebenturesareproposedtobeissuedintheopenbiddingmodeinaccordancewiththeSEBIEBPCircularsreadwiththeBSEEBPOperationalGuidelines.Therearetwomodesofbiddingprescribed by the SEBI EBP Circular readwith the BSE EBPOperational Guidelines, namely: (a) openbidding;and(b)closedbidding.UnderclosedbiddingthereshallbenorealtimedisseminationofbidsontheEBP.WHOCANAPPLYAllEligibleInvestorsspecificallymappedbytheIssuerontheEBP,areeligibletobid/invest/applyforthisIssue.ThelistofEligibleInvestorsisprovidedbelow:• ScheduledCommercialBanks• FinancialInstitutions(FIs)• ForeignPortfolioInvestors(SubjecttoapplicableSEBI,RBInorms)• MutualFundsregisteredwithSEBI• InsuranceCompaniesregisteredwithIRDA• ProvidentandPensionandGratuityFunds• NBFCs• HighNetWorthIndividuals• Anyotherinvestor(s)authorisedtoinvestintheseDebentures,subjecttocompliancewiththerelevant

regulations/guidelinesapplicabletothemforinvestinginthisIssue.All applicants are required to complywith the relevant regulations/ guidelines applicable to them forinvestingintheIssueasperthenormsapprovedbySEBI,RBIoranyotherstatutorybodyfromtimetotime,includingbutnotlimitedtoBSEEBPOperationalGuidelinesaspublishedbyBSEonitswebsiteforinvestinginthisIssue.ThecontentsofthisDisclosureDocumentandanyotherinformationsuppliedinconnection with this Disclosure Document or the Debentures are intended to be used only by thoseinvestorstowhomitisdistributed.Itisnotintendedfordistributiontoanyotherpersonandshouldnotbereproducedordisseminatedbytherecipient.TheIssuewillbeundertheelectronicbookmechanismasrequiredintermsoftheSEBIEBPCircularreadwiththeBSEEBPOperationalGuidelines.However,outoftheaforesaidclassofinvestorseligibletoinvest,thisDisclosureDocumentisintendedsolelyfortheuseofthepersontowhomithasbeensentby the Issuer for thepurposeofevaluatingapossible investmentopportunitybytherecipient(s)inrespectofthesecuritiesofferedherein,anditisnottobereproducedordistributedtoanyotherpersons(otherthanprofessionaladvisorsoftheprospectiveinvestorreceivingthisDisclosureDocumentfromtheIssuer).All investors are required to comply with the relevant regulations/ guidelines applicable to them forinvestingintheissueoftheDebenturesasperthenormsapprovedbyGovernmentofIndia,ReserveBankofIndia,SecuritiesExchangeBoardofIndiaoranyotherstatutorybodyfromtimetotime.HOWTOBID:All Eligible Investors will have to register themselves with BSE’s Bond Platform offered by BSE forparticipatinginelectronicbookbuildingmechanism.Itisaone-timeexercise(ifnotalreadyregistered).EligibleInvestorsshouldrefertotheBSEEBPOperationalGuidelines for issuanceofdebtsecuritiesonprivateplacementbasisthroughanelectronicbookmechanismasavailableonthewebsiteofBSE.EligibleInvestorswill also have to complete themandatory know-your-customer verification process. EligibleInvestorsshouldrefertotheSEBIEBPCircular.(a)ThedetailsoftheIssueshallbeenteredontheEBPbytheIssueratleast2(two)workingdayspriortotheIssueOpeningDate,inaccordancewiththeSEBIEBPCircular readwith theBSEEBPOperational Guidelines. (b) The Issuewill be open for bidding for thedurationofthebiddingwindowthatwouldbecommunicatedthroughtheIssuer’sbiddingannouncement

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on the EBP, at least 1 (one)working day before the start of the IssueOpeningDate. Some of the keyguidelinesintermsofthecurrentSEBIEBPCircularreadwiththeBSEEBPOperationalGuidelines,areasfollows:(a) ModificationofBid:EligibleInvestorsmaynotethatmodificationofbidisallowedduringthebidding

period. However, in the last 10 minutes of the bidding period, revision of bid is only allowed forimprovementofyieldandupwardrevisionofthebidsize.

(b) CancellationofBid:EligibleInvestorsmaynotethatcancellationofbidisallowedduringthebidding

period. However, in the last 10minutes of the bidding period /window, no cancellation of bids ispermitted.

(c) MultipleBids:EligibleInvestorsmaynotethatmultiplebidsarepermitted.(d) WithdrawalofIssue:TheIssuermay,atitsdiscretion,withdrawtheissueprocessonthefollowing

conditions:(i)Non-receiptofbidsuptothebaseissuesize;(ii)Thebidderhasdefaultedonpaymenttowardstheallotment,withinthestipulatedtimeframe,duetowhichtheIssuerisunabletofulfilthebaseissuesize;(iii)Thecut-offyieldenteredbythebidderishigherthantheestimatedcut-offyielddisclosedtotheEBP.ProvidedthattheIssuershallacceptorwithdrawtheIssueontheEBPwithin1(one)hourof theclosingof thebiddingwindow,andnot later than6pmontheIssueClosingDate.However, Eligible Investors should also refer to the SEBI EBP Circulars read with the BSE EBPOperationalGuidelines,asprevailingonthedateofthebid.

RIGHTTOACCEPTORREJECTBIDS:TheIssuerreservesitsfull,unqualifiedandabsoluterighttoacceptorrejectanybid(s),inpartorinfull,withoutassigninganyreasonthereofandtomakeprovisional/finalallocationsatitsabsolutediscretion.

PROVISIONAL/FINALALLOCATION:

Allocationshallbemadeonayield-timeprioritybasis.Postcompletionofbiddingprocess,theIssuerwillupload theprovisionalallocationon theBSE-BONDEBPPlatform.Once theallocation isdone then thesuccessfulbidderscanseetheirrespectiveallocationsontheallocationreportgeneratedbytheBSE-BONDEBPPlatform.

PAYMENTMECHANISM:

SubscriptionshouldbeasperthefinalallocationmadetothesuccessfulbidderasnotifiedbytheIssuer.Successfulbiddersshouldpay-inthesubscriptionamountintotheBankAccountofClearingCorporationon or before 10.30 am on the Pay-inDate, the details ofwhich have been provided in this DisclosureDocument.SuccessfulbiddersshouldensurethattheypayfromthebankaccountsthattheyhaveregisteredwiththeBSE-BONDEBPPlatformatthetimeofregistration.Note:Ifthesuccessfulbiddersfailtopaythesubscriptionmonieswithinthetimeprescribed,theirbidwillbeliabletoberejectedandtheIssuershallbenotbeliabletoissueandallotanydebenturestosuchbidders.

SubscriptionmonieswillbepaidoutfromtheClearingCorporationAccountintotheIssuer’sAccount.ThistransferwillbedoneinaccordancewiththeprocedureprescribedbytheSEBIEBPCircularsreadwiththeBSE EBPOperational Guidelines. Cheque(s), demand draft(s),Money orders, postal orderswill not beaccepted.ThebankwithwhichtheClearingCorporationAccountisexistingassumesnoresponsibilityforanyapplicationslostinmail.ApplicationsshouldbeforthenumberofDebenturesappliedbytheinvestor.Applicationsnotcompletedinthesaidmannerareliabletoberejected.Theapplicantorinthecaseofanapplicationinjointnames,eachoftheapplicant,shouldmentionhis/herPANdetails,orwherethesamehasnotbeenallotted,theGIRNo.andtheincometaxcircle/ward/district.AspertheprovisionofSection139A (5A) of the IncomeTaxAct, PAN/GIRNo. needs to bementioned on the tax deducted at sourcecertificates.Hence, the investor shouldmention his PAN/GIRNo. In case neither the PANnor theGIRNumberhasbeenallotted,theapplicantshallmention“Appliedfor”norincasetheapplicantisnotassessedto incometax,theapplicantshallmention ‘NotApplicable’(statingreasonsfornon-applicability) inthe

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appropriateboxprovidedforthepurpose.Applicationformswithoutthisinformationwillbeconsideredincompleteandareliabletoberejected.Allapplicantsarerequestedtoticktherelevantcolumn“CategoryofInvestor”intheapplicationform.

TERMSOFPAYMENT:

Thefull-facevalueoftheDebenturesappliedfor,istobepaidinsuchprocessashasbeenlistedinthisDisclosureDocument.

FORCEMAJEURE:

The Issuer reserves the right towithdraw the issueprior to the IssueClosingDate in theeventofanyunforeseendevelopmentadverselyaffectingtheeconomicandregulatoryenvironment.

POST-ALLOCATIONDISCLOSURESBYTHEEBP

UponallocationoftheDebentures,theIssuershalldisclosethesizeoftheIssue,couponrate,thenumberofsuccessfulbidder,categoryofthesuccessfulbiddersetc.,inaccordancewiththeSEBIEBPCirculars.TheBSE-BONDEBPPlatformshalluploadthedataprovidedbytheIssueronitswebsitetomakeitavailabletothepublic.

DEPOSITORYARRANGEMENTS

TheIssuerhasappointedNSDLDataManagementServicesLimitedastheRTAforthepresentIssue.TheIssuer has entered into necessary depository arrangements with NSDL for dematerialization of theDebenturesofferedunderthepresentIssue,inaccordancewiththeDepositoriesAct,1996andregulationsmadethereunder.Inthiscontext,theIssuerhassignedtripartiteagreementwiththeNSDLandtheRTAfordematerializationoftheDebenturesofferedunderthepresentIssue.

PROCEDUREFORAPPLYINGFORTHEDEMATFACILITYApplicant(s)musthaveabeneficiaryaccountwithanyDepositoryParticipantofNSDLpriortomakingtheapplication.(b)ForsubscribingtotheDebentures,namesshouldbe identical tothoseappearing intheaccountdetailsof theDepository. Incaseof jointholders, thenamesshouldnecessarilybe inthesamesequenceastheyappearintheaccountdetailsintheDepository.(c)Ifincomplete/incorrectbeneficiaryaccountdetailsaregivenwhichdoesnotmatchwiththedetailsinthedepositorysystem,itwillbedeemedtobeanincompleteapplicationandthesamebeheldliableforrejectionatthesolediscretionoftheIssuer.(d)TheDebenturesshallbedirectlycreditedtothebeneficiaryaccountandafterdueverification,allotmentadvice/refundorder,ifany,wouldbesentdirectlytotheapplicantbytheRTAbuttheconfirmationofthecreditof theDebentures to theapplicant’sdepositoryaccountwillbeprovided to theapplicantby theDepositoryParticipantoftheapplicant.(e)InterestorotherbenefitswithrespecttotheDebentureswouldbepaidtothoseholderswhosenamesappearonthelistofbeneficialownersgivenbythedepositorytotheIssuerasontheRecordDate.Incase,thebeneficialownerisnotidentifiedbythedepositoryontheRecordDateduetoanyreasonwhatsoever, the Issuershallkeep inabeyancethepaymentof interestorotherbenefits,tillsuchtimethebeneficialownerisidentifiedbythedepositoryandintimatedtotheIssuer.Onreceivingsuchintimation,theIssuershallpaytheinterestorotherbenefitstothebeneficiariesidentified,withinaperiodof15calendardaysfromthedateofreceivingsuchintimation.(f)ApplicantsmaypleasenotethattheDebenturesshallbeallottedandtradedonthestockexchange(s)onlyindematerializedform.Letterofallotment/Debenturecertificate/Refundorder/Issueofletterofallotment:Thebeneficiaryaccountoftheinvestor(s)withNSDL/DepositoryParticipantwillbegiveninitialcreditwithin2(two)daysfromtheDeemedDateofAllotmentandconfirmationofthecreditofDebenturesshallbeprovidedbytherelevantDepositorywithin2(two)daysfromtheDeemedDateofAllotment.Theinitialcreditintheaccountwillbeakintotheletterofallotment.Oncompletionoftheallstatutoryformalities,suchcreditintheaccountwillbeakintoadebenturecertificate.

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ISSUEOFDEBENTURECERTIFICATES:Subjecttothecompletionofallstatutoryformalitieswithintimeframeprescribedintheapplicablelaws,theinitialcreditakintoaletterofallotmentinthebeneficiaryaccountoftheinvestorwouldbereplacedwiththenumberofDebenturesallotted.TheDebenturessinceissuedinelectronic(dematerialized)form,will be governed as per the provisions of the Depository Act, SEBI (Depositories and Participants)Regulations,1996,asamended,rulesnotifiedbyNSDL/DepositoryParticipantfromtimetotimeandotherapplicablelawsandrulesnotifiedinrespectthereof.TheDebenturesshallbeallottedindematerializedformonly.INSTRUCTIONSFORAPPLICATION:1) ApplicationmustbecompletedinBLOCKLETTERSINENGLISH.Ablankmustbeleftbetweentwoor

morepartsofthename.

2) SignaturesshouldbemadeinEnglish.3) TheDebenturesarebeingissuedatpartothefacevalue.Fullamounthastobepaidonapplicationper

Debentureappliedfor.Applicationsforincorrectamountsareliabletoberejected.4) Money orders or postal orderswill not be accepted. The payments can bemade byNEFT/ RTGS.

Payment shall bemade from the bank account of the person subscribing. In case of joint holders,moniespayableshallbepaidfromthebankaccountofthepersonwhosenameappearsfirst intheapplication.

5) Nocashwillbeaccepted.

6) TheapplicantshouldmentionitspermanentaccountnumberortheGIRnumberallottedtoitundertheIncomeTaxAct,1961andalsotherelevantIncome-taxcircle/ward/District.

7) Applications under power of attorney/relevant authority: In case of an applicationmade under a

powerofattorneyorresolutionorauthoritytomaketheapplicationacertifiedtruecopyofsuchpowerofattorneyorresolutionorauthoritytomaketheapplicationandtheMemorandumandArticlesofAssociationand/orbye-lawsoftheinvestormustbeattachedtotheapplicationformatthetimeofmaking theapplication, failingwhich, the Issuerreserves the full,unqualifiedandabsoluteright toacceptorrejectanyapplicationinwholeorinpartandineithercasewithoutassigninganyreasontherefore. Further anymodifications / additions in the power of attorney or authority should benotified to the Issuer at its registered office.Names and specimen signatures of all the authorizedsignatoriesmustalsobelodgedalongwiththesubmissionofthecompletedapplication.

8) Anapplicationonce submitted cannotbewithdrawn.Theapplications shouldbe submittedduring

normalbankinghoursattheregisteredofficeoftheCompany.

9) TheapplicationswouldbescrutinizedandacceptedasperthetermsandconditionsspecifiedinthisDisclosureDocument.

10) Anyapplication,whichisnotcompleteinanyrespect,isliabletoberejected.

11) The investor/applicantshallapply for theDebentures inelectronic, i.e.,dematerialised formonly.

Applicants should mention their Depository Participant’s name, DP-ID and Beneficiary AccountNumber in the application form. In case of any discrepancy in the information ofDepository/Beneficiary Account, the Issuer shall be entitled to not credit the beneficiary’s demataccountpendingresolutionofthediscrepancy.TheapplicantisrequestedtocontacttheofficeoftheIssuerasmentionedaboveforanyclarifications.

SUCCESSION:

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IncasetheDebenturesareheldbyapersonotherthananindividual,therightsintheDebentureshallvestwiththesuccessoracquiringinteresttherein,includingaliquidatororsuchpersonappointedaspertheapplicablelaws.Overandabovetheaforesaidtermsandconditions,theDebentures,ifanyissuedunderthisDisclosureDocument,shallbesubjecttothisDisclosureDocument,thedebenturetrustdeedandalsobesubjecttotheprovisionsoftheconstitutionaldocumentsoftheIssuer.OPTIONTOSUBSCRIBE:TheIssuerhasmadearrangementsforissueandholdingoftheDebenturesindematerializedform.RIGHTTOACCEPTORREJECTAPPLICATIONS:TheIssuerreservesitsfull,unqualifiedandabsoluterighttoacceptorrejectanyapplication,inpartorinfull,withoutassigninganyreasonthereof.Therejectedapplicantswillbeintimatedalongwiththerefundwarrant, if applicable, to be sent. Applicationwould be liable to be rejected on one ormore technicalgrounds, includingbutnotrestrictedto:1) incompleteapplicationforms;2)applicationsexceedingtheIssuesize;3)bankaccountdetailshavenotbeenprovided;4)detailsforissueofDebenturesinelectronic/dematerialisedformnotgiven;5)PANorGIRNo.andtheincometaxcircle/ward/districtisnotgiven;6)incaseofapplicationsmadethroughpowerofattorneys,iftherelevantdocumentsarenotsubmitted.ThefullamountofDebenturehastobesubmittedalongwiththeapplicationform.Also,incaseofoversubscription, the Issuer reserves the right to increase the size of the placement subject to necessaryapprovals/certifications,andthebasisofallotmentshallbedecidedbytheIssuer.ALLOTMENT:TheDebenturesallottedtoinvestorindematerializedformwouldbedirectlycreditedtothebeneficiaryaccountasgivenintheapplicationformafterverification.TheDebentureswillbecreditedtotheaccountoftheallottee(s)assoonaspracticablebutinanyeventwithintwo(2)daysofDeemedDateofAllotment.REGISTEROFDEBENTURESHOLDER(S):AregisterofallDebentureHolder(s)containingnecessaryparticularsof theDebentureHolderswillbemaintainedbytheIssueratitsregisteredoffice.TRANSFER/TRANSMISSION:The Debentures shall be transferable freely to all classes of Eligible Investors. It is clarified that theDebenturesarenotintendedtobeheldbyanycategoryofpersonswhoarenotEligibleInvestors.Subjecttotheforegoing,theDebenturesmaybetransferredand/ortransmittedinaccordancewiththeapplicableprovisionsoftheCompaniesAct.TheDebenturesheldindematerializedformshallbetransferredsubjecttoandinaccordancewiththerules/proceduresasprescribedbydepositoriesandtherelevantDepositoryParticipantsof the transferoror transfereeandanyotherapplicable lawsand rulesnotified in respectthereof.Thetransferee(s)shouldensurethatthetransferformalitiesarecompletedpriortotheRecordDate.Intheabsenceofthesame,interestwillbepaid/redemptionwillbemadetotheperson,whosenameappearsintheregisterofDebentureholdersmaintainedbytheDepositories.Insuchcases,claims,ifany,bythetransfereeswouldneedtobesettledwiththetransferor(s)andnotwiththeIssuer.Provided further that nothing in this section shall prejudice any power of the Issuer to register asDebentureHolderanypersontowhomtherighttoanyDebentureoftheIssuerhasbeentransmittedbyoperationoflaw.SubjecttothetermsoftheDebentureTrustDeed,thenormalprocedurefollowedfortransferofsecuritiesheldindematerializedformshallbefollowedfortransferoftheseDebenturesheldinelectronicform.Thesellershouldgivedeliveryinstructionscontainingdetailsofthebuyer’sDepositoryParticipantaccounttoitsDepositoryParticipant.TheIssuerundertakesthattherewillbeacommontransferform/procedurefortransferofdebentures.

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The Debentures shall be issued only in dematerialised form in compliancewith the provisions of theDepositoriesAct,1996(asamendedfromtimetotime),anyotherapplicableregulations(includingofanyrelevantstockexchange)andtheseconditions.NophysicalcertificatesoftheDebentureswouldbeissued.AUTHORITYFORTHEPLACEMENT:ThisprivateplacementofDebentures isbeingmadepursuant to theresolutionpassedby theboardofdirectorsdatedJune17,2020oftheIssuerauthorizingtheIssuertoborrowmoniesbywayofissueofnon-convertibledebentures.The Issuercancarryon itsexistingactivitiesand futureactivitiesplannedby it inviewof theexistingapprovals,andnofurtherapprovalsfromanyGovernmentauthorityarerequiredbytheIssuertocarryonits said activities save and except asmay be required for creation of security in connection with theDebentures.COMPLIANCEOFFICER:The investormaycontact the Issuer incaseofanypre -issue/post-issuerelatedproblemssuchasnoreceiptoflettersofallotment/Debenturecertificates/refundorders/interestcheques.PAYMENTSATPAR:Paymentoftheprincipal,allinterestandothermonieswillbemadetotheregisteredDebentureHolder(s)/beneficial owner(s) and in case of joint holders to the onewhose name stands first in the register ofDebentureHolder(s)/ in the listofbeneficialowner(s)provided to the Issuerby theDepository.Suchpaymentshallbemadethroughelectronicclearingservices(ECS),realtimegrosssettlement(RTGS),directcreditornationalelectronicfundtransfer(NEFT).RIGHTTORE-PURCHASEANDRE-ISSUEDEBENTURE(S):The Issuer will have the power, exercisable at its sole and absolute discretion from time to time, torepurchaseapartorallofitsDebenturesfromthesecondarymarketsorotherwise,atanytimepriortothematurity date, subject to applicable law and in accordance with the prevailing guidelines/regulationsissued by the RBI, SEBI and other authorities. In the event of a part or all of its Debentures beingrepurchasedasaforesaidorredeemedunderanycircumstanceswhatsoever, the Issuershallhave,andshallbedeemedalwaystohavehad, thepowertoreissuetheDebentureseitherbyreissuingthesameDebenturesorbyissuingotherdebenturesintheirplace,inaccordancewithapplicablelaws.The Issuermayalso,at itsdiscretionandasper theprevailingguidelines/regulationsofRBIandotherauthoritiesatanytimepurchasetheDebenturesatdiscount,atparoratpremiumintheopenmarket.SuchDebenturemay,attheoptionofIssuer,becancelled,heldorresoldatsuchpriceandonsuchtermsandconditionsastheIssuermaydeemfitandaspermittedbylaw.If the Debentures are held by a foreign institutional investor, the Issuer can purchase them only inaccordancewithapplicable lawincludingprevailingguidelines/regulations issuedbytheRBI,SEBIandotherregulatoryauthorities.AllcostsincurredbytheDebentureHolders(includingbutnotlimitedtobreakcostsrelatingtointerest,currency exchange and/or hedge agreements) pursuant to the repurchase by the Issuer before theredemptiondateassetoutabove,willbebornebytheIssuerandwillbecalculated(andtheDebentureHolderswillbereimbursed)onthebasisasifanaccelerationeventhadoccurred.TAXBENEFITS:

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Therearenospecific taxbenefitsattachedtotheDebentures. InvestorsareadvisedtoconsiderthetaximplicationsoftheirrespectiveinvestmentintheDebentures.AlltherightsandremediesoftheDebentureholder(s)shallvestinandshallbeexercisedbytheDebentureTrusteeswithouthavingitreferredtotheDebenturesholder(s).LOSSOFLETTER(S)OFALLOTMENT/PRINCIPALANDINTERESTPAYMENTINSTRUMENTS:LossofLetter(s)ofAllotmentand/orprincipalpaymentinstrument/interestpaymentinstrumentshouldbeintimatedtotheIssueralongwiththerequestforissueofaduplicateLetter(s)ofAllotment/paymentinstrument(s).IfanyLetter(s)ofAllotment/paymentinstrument(s)islost,stolen,ordestroyed,thenuponproductionofproofthereof,tothesatisfactionoftheIssueranduponfurnishingsuchindemnity,astheIssuermaydeemadequateanduponpaymentofanyexpensesincurredbytheIssuerinconnectionthereof,newLetter(s)ofAllotment/paymentinstrument(s)shallbeissued.AfeewillbechargedbytheIssuer,notexceedingsuchsumasmaybeprescribedbylaw.REFUNDS:Forapplicantswhoseapplicationshavebeenrejectedorallottedinpart,refundorderswillbedispatchedwithin7(seven)daysfromtheAllotmentDateoftheDebentures.DEBENTURESSUBJECTTOTHEDEBENTURETRUSTDEED,etc.:Over and above the aforesaid terms and conditions, the Debentures, issued under this DisclosureDocument,shallbesubjecttoprevailingguidelines/regulationsandalsobesubjecttotheprovisionsoftheDebentureTrustDeedandalldocumentstobeenteredintobytheIssuerinrelationtotheIssue,includingthisDisclosureDocument,theDebentureTrustDeedandothertransactiondocuments.GOVERNINGLAW:TheDebenturesaregovernedbyandwill be construed in accordancewith Indian law.The IssuerandIssuer’sobligationsundertheDebenturesshall,atalltimes,besubjecttothedirectionsofSEBIandstockexchangesandotherapplicableregulationsfromtimetotime.Applicants,bypurchasingtheDebentures,agreethatthecourtsatMumbaishallhaveexclusivejurisdictionwithrespecttomattersrelatingtotheDebentures.PERMISSION / CONSENT FROM THE PRIOR CREDITORS AND UNDERTAKING ON CREATION OFCHARGE:The Issuer undertakes to obtain consent from the prior creditors (if required) for the creation of theSecurityfortheDebenturesbeingissued.Conflict,incaseofanyrepugnancy,inconsistencyorwherethereisaconflictbetweentheconditionsasarestipulatedinthisDisclosureDocumentandtheDebentureTrustDeedexecutedbytheIssuer,theprovisionsascontainedintheDebentureTrustDeedshallprevailandoverridetheprovisionsofsuchDisclosureDocument.MATERIALCONTRACTSANDAGREEMENTS:Byverynatureandvolumeof itsbusiness, theCompany is involved in a largenumberof transactionsinvolving financial obligations and therefore it may not be possible to furnish details of all materialcontractsandarrangementsinvolvingfinancialobligationsoftheCompany.However,thecontractsanddocumentsreferredtobelow(notbeingcontractsenteredintointheordinarycourseofbusinesscarriedonbytheCompany)whichareormaybedeemedtobematerialhavebeenenteredintobytheCompany.CopiesofthecontractsanddocumentsreferredtobelowmaybeinspectedattheRegisteredOfficeoftheCompanyfrom11.00amto1.00pmonanyworkingday(MondaytoFriday)untilthedateofclosingofthisIssue.1)MemorandumandArticlesofAssociationoftheCompany;2)CertificateofIncorporationoftheCompany.

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3)Certified true copyof theBoard resolutiondated June17,2020approving issueofNon-ConvertibleDebentures;4)CertifiedtruecopyoftheresolutionpassedbytheShareholdersdatedAugust6,2016undersection180(1)(c)oftheCompaniesAct,2013;5)CopiesofAnnualReportsofCompanyforthelastthreefinancialyears.6)CreditRatingLetter&RationalefromCARERatingsLimited7)CopyofTripartiteAgreementbetweentheCompanyandNationalSecuritiesDepositoryLimitedandRegistrarandTransferAgents8)DebentureTrusteeAppointment letter dated June30, 2020executedbetween theCompany and theDebentureTrustee.INVESTORGRIEVANCEANDREDRESSALSYSTEMSArrangementshavebeenmadetoredressinvestorgrievancesexpeditiouslyasfaraspossible,theIssuerendeavorstoresolvetheinvestor’sgrievanceswithin30daysofitsreceipt.AllgrievancesrelatedtotheissuequotingtheApplicationNumber(includingprefix),numberofDebenturesappliedfor,amountpaidonapplicationanddetailsofcollectioncenterwheretheApplicationwassubmitted,maybeaddressedtotheComplianceOfficeratregisteredofficeoftheIssuer.AllinvestorsareherebyinformedthattheIssuerhasappointedaComplianceOfficerwhomaybecontractedincaseofanypre-issue/post-issuerelatedproblemssuchasnon-creditofletter(s)ofallotment/debenturecertificate(s)inthedemataccount,non-receiptofrefundorder(s),interestwarrant(s)/cheque(s)etc.ContactdetailsoftheComplianceOfficeraregivenelsewhereinthisDisclosureDocument.COMPLIANCEOFFICEROFTHEISSUERName : ShambhuSinghAddress : KamlaTower,Kanpur,UttarPradesh208001,IndiaTeleNo : +91-512-2371478-81FaxNo : +91-512-2332665/2399854Email : shambhu.singh@jkcement.comTERMSHEET:Subject ParticularsNameoftheSecurity 7.36%JKCL2024Issuer/Company J.K.CementLimitedPromoters PersonsdefinedaspromotersunderSecuritiesExchangeBoardofIndia

(IssueofCapitalandDisclosureRequirements)Regulations,2018,asamended.

TypeofInstrument Redeemable,Secured,Listed,Non-Convertible,TaxableDebentures(“NCD”/“Debentures”)

NatureofInstrument/Seniority

Securedonfirstpari-passubasiswithotherlenders

ModeofIssue PrivatePlacementDebentureTrustee IDBITrusteeshipServicesLimitedPurposeandobjectsoftheissue

Towardspartfinancingof1,500tpdclinkerexpansionatNimbahera,Rajasthanincludingreimbursementofcapitalexpenditurealreadyincurred.

DetailsoftheutilizationoftheProceeds

Thefundswillbeutilizedaspertheobjectsmentionedabove.

CostofProjectandMeansofFinance

TotalProjectcost–uptoRs.405crore,tobefinancedusingdebtofRs.250croreandequity/internalaccrualsofuptoRs.155crore.Breakupofreimbursementuptolast12monthsandfreshcapextobeprovided.

EligibleInvestor • ScheduledCommercialBanks• FinancialInstitutions(FIs)• ForeignPortfolioInvestors

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• MutualFunds• InsuranceCompanies• ProvidentandPensionandGratuityFunds• NBFCs• HighNetWorthIndividuals• Any other investor(s) authorised to invest in these Debentures,

subjecttothecompliancewiththerelevantregulations/guidelinesapplicabletothemforinvestinginthisIssue.

IssueOpeningDate July22,2020IssueClosingDate July22,2020PayinDate July23,2020DeemedDateofAllotment July23,2020OwnershipCovenant Promoters to maintain a minimum shareholding of 51% and

managementcontrolof the Issueratall timesduringthecurrencyoftheseDebentures.

Rating CAREAA/StablebyCARERatingsLimitedIssueSize Rs.250Crores(RupeesTwoHundredFiftyCrores)Optiontoretainoversubscription(Amount)

NA

IssuePrice Rs.10,00,000/-(RupeesTenLakhonly)perDebentureFaceValue Rs.10,00,000/-(RupeesTenLakhonly)perDebentureMinimumApplication 1Debentureandinmultiplesof1DebenturethereafterEarlyRedemptionOption NATenureofNCD 4Years(DoortoDoor)CouponRate 7.36%p.a.CouponType FixedCouponPaymentFrequency

SemiAnnual

CouponpaymentDates PleaserefertoIllustrativeCashFlowRedemptionDate July23,2024RedemptionAmount In5semiannualequalinstallmentsasgivenbelowstartingfrom24th

monthonwardsgoingupto48months(equaltranches)Attheendof24thmonthfromDateofAllotment:20%ofprincipalatparAttheendof30thmonthfromDateofAllotment:20%ofprincipalatparAttheendof36thmonthfromDateofAllotment:20%ofprincipalatparAttheendof42thmonthfromDateofAllotment:20%ofprincipalatparAttheendof48thmonthfromDateofAllotment:20%ofprincipalatpar.

RedemptionPremium/Discount

NA

Discountatwhichsecurityisissuedandtheeffectiveyieldasaresultofsuchdiscount.

NA

PutDate NAPutPrice NACallDate NACallPrice NAPutNotificationTime NACallNotificationTime NA

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Security TheNCDswouldbesecuredinfavouroftheDebentureTrustee.TheSecurityCover(FACR)willbeatleast1.25timesonBookvalueoftheoutstandingfacevalueoftheNCDsatalltimesduringthetenureofNCDs.Pari-passu first chargeon theFixedAssets related to theCompany’sGreyCementplants(excludingminingland,miningleasesandvehicles)at(a)Nimbaherahavingcapacityof3.25Mn.tpaand(b)MangrolLine1inthestateofRajasthan.“FixedAssetCoverageRatio”or“FACR”shallmeanatanytime,theratioof(i)isto(ii)below:

• AnamountcalculatedbasedonthebookvalueofassetsofIssuer

providedasSecurity(asmortgaged/hypothecated/chargedorasproposedtobemortgaged/hypothecated/chargedassecurityfortheDebentures),calculatedinaccordancewithInd-AS;

• Theaggregateof theoutstanding loans,debenturesoranyotherborrowings,havingfirstparipassuchargeonSecurityofIssuerasmortgaged/hypothecated/chargedorasproposedtobemortgaged/hypothecated/chargedassecurityfortheDebentures

Forthepurposehereof,thebookvalueoftheassetsshallbecalculatedonthebasisofthelatestannualauditedfinancialstatements,preparedinaccordancewithInd-AS,submittedbytheBorrower.

SecurityCreation Issuer shall create and perfect security in favour of theDebentureTrusteewithin90daysoftheIssuePay-InDate.

StepUpCouponRate In the event of a credit rating downgrade of the Debentures by anyrating agency, the Coupon will be revised upwards by 0.25 % perannumincaseofratingdowngradefromAAtoAA-inthecreditrating(the “Coupon Reset”) and the increase in the Coupon Rate will beeffectivefromthedateonwhichthedowngradeoccurs.SuchAdditionalCouponshallbepayableontheoutstandingDebenturefromthedateofsuchdowngradeinthecreditrating.IntheeventofratingdowngradeoftheDebenturetoA+orsuspension/ withdrawal of the rating of the Issuer / Debenture by any ratingagency,thebondholderwouldreservearighttorecalltheoutstandingprincipal amount on Debentures NCDs along with othermonies/accruedinterestdueinrespectthereof.

FinancialCovenant The Following financial covenants on standalone basis will beapplicabletotheIssuer.ThesecovenantswillbetestonannualbasisbasedontheauditedfinancialstatementsoftheIssuer.• DSCRmin->1.05xinFY21and1.20xthereafter• TOL/TNW–max3.50x“Debt Service Coverage Ratio” or “DSCR” shall, in relation to anyFinancialYear,meantheratioof(i)isto(ii)below:• The aggregate of: (a) profit after tax for that period; (b)

depreciationforsuchperiod;(c) interestandfinancechargesforsuchperiodasperprofitandlossaccount;(d)deferredtax;and(e)othernoncashadjustments,ifany.

• Anamountequaltothesumofinterestandfinancechargesasperprofit and loss account and the scheduled repayment instalmentexcludingsuchdebtwhichisrefinanced/takenoverforthatperiodorprepaidbeforescheduledrepayment.

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“Total Outside Liabilities” shallmean all indebtedness (other thanwhichiscontingent)oftheborrowerincludingallcorporateguaranteesissuedbytheIssuer.“TangibleNetWorth”shallmeantheaggregateof:• The amount paid up on the share capital (equity or preference

sharecapitalincludingshareapplicationmonies)oftheIssuer;and• The amount standing to the credit of the reserves of the Issuer

(including,withoutlimitation,anysharepremiumaccount,capitalreserve, government grant or subsidy, debenture redemptionreserve,generalreserveaccount,retainedearningsandanycreditbalance on the accumulated profit and loss account) excludingrevaluationreserves;

afterdeductingtherefrom:

o Anydebitbalanceontheprofitandlossaccountorimpairment

oftheissuedsharecapitaloftheBorrower(excepttotheextentthatdeductionwithrespecttothatdebitbalanceorimpairmenthasalreadybeenmade);and

o Amounts attributable to capitalized items such as goodwill,trademarksunamortizedfees,expenses,otherintangibleassetsifnotpaidfor.

IssuerconfirmsthattherearenootherfinancialcovenantsgiventoanyotherTermLender(s)whichissuperiortotheabovecovenants.DetailsoftheaforementionedfinancialcovenantsarealignedwiththefinancialcovenantsstatedintheDebentureTrustDeed.

NegativeCovenants • TheIssuershallnotsell,transferorotherwisedisposeofanyofitssecured assets for the proposed NCDs (excluding subleasing ofland/facilities), without the prior written approval of theDebenture Trustee, which shall not be unreasonably withheld,duringanyfinancialyearexceptaspermittedhereunder:• Ifthecostofassetsproposedtobesold,transferredordisposed

of in any financial year is less than 5% of the cost of suchsecuredassets;and

• SuchdisposaldoesnotresultinbreachofFACRof1.25.• The Issuer shall not without written approval of the debenture

trusteewhichshallnotbeunreasonablywitheld,createfirstparipassu charge over any of its Security for the proposed NCDs(excludingsubleasingof land/facilities).However, theIssuercancreatepari-passuchargeforincrementalamountofRs.400Crorewithout prior approval of the Debenture Trustee provided theFACRonSecurityasaresultofcreationofsuchpari-passuchargedoesnotfallbelow1.35x.Thisadditionalcushionof1.35xFACRisproposedonlyforparipassucharge.

• The Issuer shall not enter into any amalgamation, demerger,merger or reconstruction without the prior consent of theDebentureTrustee,whichisnottobeunreasonablywithheld.

• Restrictionsonenteringintoanyfinancialobligationofalong-termnature/adverselyaffectingtheIssuer’sfinancialswhichcouldleadtobreachofTOL/TNWandifpaymentdefaultexists.

• The Issuer shall not, without the prior written consent ofDebenture Trustee, amend or modify any of its constitutionaldocuments i.e. Memorandum of Association and Articles ofAssociation,whichhaveamaterialadverseeffect.

• Nomaterialchangeofbusiness.

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• IftheapprovalforpointsmentionedaboveisnotreceivedfromtheDebentureTrusteewithinonemonth,theIssuerwillhavearightto prepay the outstanding debentures in part or in full withoutprepaymentpenalty.

DetailsoftheaforementionednegativecovenantsarealignedwiththenegativecovenantsstatedintheDebentureTrustDeed.

MandatoryPrepayment TheIssuerwillberequiredtomandatorilyprepaytheentireamountsdue to the investor, without payment of any prepayment premiumwithin30BusinessDaysontheoccurrenceofanyofthebelowevents:• IfthePromotershareholdingfallsbelow51%ofissuedandpaidup

sharecapital.• Cancellation of any authorizations which havematerial adverse

financialimpactontheIssuer.

IntheeventtheIssuerdoesnotmaketheprepaymentswithinthetimeperiodsmentionedabovetheIssuershallberequiredtopayinterestat2%p.a.overandabovetheCouponRatefromthedateofoccurrenceofevent,tillsuchtimethatsuchpaymentsaremade. TheIssuerwillberequiredtomandatorilyprepaytheamountsduetothe investor,without payment of any prepayment premium and theotherpersonswhoarepermittedsecurity interestholderswhohavesecurityinterestovertheencumberedassets,onaproportionatebasis,if such prepayment is required under the terms of their respectivefinancing/debenturedocuments,within30BusinessDaysofreceiptofthe followingamountsorwithin30BusinessDaysofdemandby theDebentureTrustee,whicheverislater:• insurance proceeds under insurance policies in excess of 5% of

encumbered assets per claim, provided that such insuranceproceedsmay be first utilized towards reinstating the damagedasset, and the remaining proceeds shall be used towardsprepaymentasperthissub-section;

• proceedsfromdisposalofanyencumberedassetsinexcessof5%

of the encumbered assets and which have not been used forreplacementofassetpursuanttowhichtheywerereceived.

IntheeventtheIssuerdoesnotmaketheprepaymentswithinthetimeperiodsmentionedabovetheIssuershallberequiredtopayinterestat2%p.a. over and above the CouponRate from the date of receipt ofmonies,tillsuchtimethatsuchpaymentsaremade.

DayCountBasis Actual/ActualdaycountbasisSubscriptionDate Subscription Date, being the date on which the Debentures shall

deemedtohavebeenallottedtotheSubscribers.Listing ProposedontheWholesaleDebtMarket(WDM)segmentofBSEorNSE

Limited(BSE).TheDebentureswillbelistedwithinthestatutorytimeperiodallowedundertheSEBIDebtRegulations.CompanyalsoreservestherighttogettheDebentureslistedonsuchotherrecognizedstockexchangesasCompanymaydeemfitaftergivingpriornotificationofsuchproposedlistingtotheDebentureTrustee.

MarketLot The market lot will be one Debenture (“Market Lot”). Since thedebenturesarebeingissuedonlyindematerializedform,theoddlotswillnotariseeitheratthetimeofissuanceoratthetimeoftransferofdebentures.

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RecordDate Thedatefalling15(fifteen)calendardayspriortothedateonwhichInterest is due and payable on the Debentures, or the date ofredemptionofsuchDebentures.

BusinessDayConvention AdaywhichisnotaSaturday,Sundayorapublicholidayandonwhichclearing of cheque and RTGS facilities are available in Mumbai andKanpur. If any Coupon or principal payment date fall on a publicholiday/non-workingday/Saturday/SundayitwillbeconstruedtobethesucceedingworkingdayincaseofInterestandprecedingworkingdayincaseofprincipalunlessspecifiedotherwisehereinabove.IntermsoftheSEBICircularNo.CIR/IMD/DF/18/2013datedOctober29, 2013 and SEBI Circular No. CIR/MD/DF-1/122/2016 datedNovember11,2016,asamended.Incaseofpaymentofprincipalontheprecedingdayasabove,itsvaluedateshallbeconsideredforcalculationofinterest.

RolesandResponsibilitiesofDebentureTrustee

The Debenture Trustee shall perform its duties and obligations andexerciseitsrightsanddiscretions,inkeepingwiththetrustreposedinthe Trustees by the holder(s) of the Debentures and shall furtherconductitselfandcomplywiththeprovisionsofallapplicablelaws.TheTrusteesshallcarryoutitsdutiesandperformitsfunctionsasrequiredto discharge its obligations, the Debenture Trusteeship Agreement;Information Memorandum and all other related transactiondocuments,withduecare,diligenceandloyalty.TheCompanyshallprovidetheTrusteewith:• Annual(audited)financialstatementsoftheCompany(prepared

on both standalone and consolidated basis) within 180 (OneHundred and Eighty) calendar days following the closure of theprecedingFinancialYear;and

• Quarterlyun-auditedaccounts(preparedonconsolidatedbasisoftheCompanywithin60(sixty)daysofendofquarter.

Depository Applications will be made for the Debentures to be deposited withNSDLandCSDL

IssuancemodeoftheInstrument

Dematonly.TheIssuerwillissuetheDebentures/LettersofAllotmentindematerializedformwithintwobusinessdaysfromtheDeemedDateofAllotment.

TradingmodeoftheInstrument

Dematonly.

SettlementmodeoftheInstrument

Dematonly.

Resolutionsrequired TheIssuershouldensurethatalltheconsentsandresolutionsrequiredtoissueNCDsareinplacepriortotheissue.

TransactionDocuments TheTransactionDocumentsshallbeasfollows:• DebentureTrustDeed;• consentletterfromtheDebentureTrustee;• InformationMemorandum;• Rating letternotbeingmore thanonemonthold from the issue

openingdateandratingrationalenotolderthanoneyearfromtheissueopeningdate

• thelistingapprovalbytheStockExchange;and• Any other document as advised by Legal Counsel / Debenture

Trustee.DefaultInterestRate • Thecompanywillbe required topayadditional2%p.a. interest

overandabovetheapplicablecouponratefromtheexpiryofthestipulatedperiodof90daysfromthedateofdisbursementtillthedate of security creation, in case the company could not createsecuritywithinstipulatedperiod.

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• Incaseofdefault inpaymentof interest/principalonduedates,additionalinterest@2%p.a.overthecouponratewillbepayablebycompanyforthedefaultingperiodonthedefaultedamount.

• Incaseofadelayinlistingbeyond20daysfromtheDeemedDateof Allotment, the couponwill be step up by 1% for the delayedperiod.

• Withoutprejudicetotheinvestorsrighttocallaneventofdefaultforanyotherdefaultunder the transactiondocumentscompanywillberequiredtopayadditional2%p.a.interestoverandabovetheapplicablecouponrate.

ConditionsPrecedenttoDisbursement

The subscription from investors shall be accepted for allocation andallotmentbytheIssuersubjecttothefollowing:• RatingLetter(notolderthan1month).• RatingRationale/Report(notolderthan1Year).• LetterfromTrusteeconveyingtheirconsenttoactastrusteefrom

thedebentureholders.• Execution of the following transaction documents in a form

acceptabletoDebentureHolder/Investor.• InformationMemorandum.• NSE/BSEinprincipleapprovalletterforlistingoftheNCDs.• Acopyof a resolutionof theboardofdirectorsor committeeof

director authorize for this purpose of the Company. In caseresolution is passed by committee of directors, a copy of theresolutionauthorizing the committeeofdirectors topass sucharesolutionshouldalsobeprovided.

• Shareholder resolutions of the Issuer in relation under sections180(1)(c)and180(1)(a)oftheCompaniesAct,2013approvingthecurrentborrowinglimitoftheIssuer.

• Issuer tocertify that there isnobreachofanyrepresentationorwarrantycontainedintheFacilityagreement.

• Issuer to certify that no Event of Default exists, and issue ofDebentureswouldnotleadtoanEventofDefault.

ConditionSubsequenttoDisbursement

• BoardResolutionortheresolutionbycommitteeofdirectors forallotmentandIssueof letterofallotmentontheDeemedDateofAllotment.

• Credit of dematerialized LOA/Debentures within 2 days fromDeemedDateofAllotment.

• Securitytobecreatedandperfectedwithin90daysoftheDeemedDateofAllotment.

• Closing opinion from Investor Legal Counsel in form andnaturesatisfactorytotheDebentureTrustee.

• Besides,theIssuershallperformallactivities,whethermandatoryor otherwise, as mentioned elsewhere in the InformationMemorandum.

• ExecutionofDebentureTrustDeed.• AllinsurancepoliciespertainingtotheSecurityshallbeendorsed

in favor of the Trustee alongwith other lenders secured as losspayee,within30daysfromDeemedDateofAllotment.

• CAcertificateforenduseoffundstobefurnishedwithin60daysfromtheDeemedDateofAllotmentcertifying(i)theend-useoftheinvestmentamounts,providingabreak-upofinvestmentamountsutilized by the Issuer towards (a) reimbursement of capitalexpenditure already incurred, (b) capital expenditure incurredafterdateofallotmentoutofinvestmentamountinrelationtotheProject,andinvestmentamountswhichremainun-utilisedbytheIssuer.

• IncaseofReimbursementofCapex-CACertificateshouldconfirmthe amount of capex incurred during one year immediately

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preceding the Deemed Date of Allotment of the Debentures forwhichreimbursementhasbeentakenandthesamewasnotfundedbyanydebt.FurtherconfirmationthattheactualenduseoffundsisincompliancewiththeobjectsoftheIssue.

CrossDefault Any Financial Indebtedness, including obligations under guaranteesissued, of the Issuer, isnotpaidwhendueand suchamountofnon-paymentisgreaterthanRs.5croreandthesameisnotrectifiedwithinacureperiodof30days.

RepresentationandWarranties

TheIssuershallmakethefollowingrepresentationsintheDebentureTrustDeedincludingbutnotlimitedto:• Corporateexistence,capacityandauthorityincludingcompliance

with provisions relating to inter corporate borrowing andguaranteesundertheCompaniesAct2013,asamendedfromtimetotime;

• Legal,validandbindingnatureoftheTransactionDocuments;• Corporate and governmental authorizations and consents

(including those from central and state government, localauthorities), no contravention of existing agreements andconstitutionaldocuments,oranydocumentwhichisbinding;

• Maintenanceoftitleoverassetsandrightunderthecontracts;Nooutstandingdefault,materiallitigation,violationoflawormaterialagreements;

• Completeness and accuracy of financial statements and otherinformationsharedbytheIssuer;

• Issuerisnotanon-bankingfinancialcompanyoracoreinvestmentcompany;

• Compliancewithlaws(includinganti-bribery,anti–corruption/anti-moneylaundering,sanctions/anti-terrorismlaws);

• EachoftherepresentationswillremaincorrectandcompliedwithsolongtheFacilityand/oranysumthereunderremainoutstanding

• Anyother representationsasmaybe requiredby theDebentureHoldersandcapturedintheDebentureTrustDeed.

InformationCovenants The Issuershallprovideappropriatelycertifiedcopiesofeachof thefollowing:• Copies of insurance policies notifying maintenance of adequate

insuranceinrelationtothesecuredassets;• Unaudited quarterly financial statements and annual audited

consolidated and standalone financial statements within 180calendardaysfollowingtheclosureoftheprecedingFinancialYearprescribedtimelineslaidbySEBI;

• The Issuer shall keepTrustee informed of the happening of anyevent likely to have Material Adverse Change in the Issuer,subsidiaries,orJVs.

• Details of any material litigation, arbitration or administrativeproceedings;

• Notificationofanydefaultoreventofdefault;• The Issuer shall keep the Trustee advised of any circumstances

adverselyaffectingthefinancialpositionoftheCompany,includinganyactiontakenbyanycreditoragainstthesaidcompanieslegallyorotherwise.

Details of the aforementioned information covenants are stated indetailintheDebentureTrustDeed.

Inspection DebentureTrusteetohavetherighttoinspecttheassetsoftheIssuerbeingchargedwithapriorintimationintermsofthedebenturetrustdeed.

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Environmentrelatedcovenants

The Issuer shall, at all times during the currency of the assistance,comply with the environmental, health, safety, social and otherrequirementsincludingthefollowing:• Ensurecompliancewithprovisionsofallapplicablelegislation,and

clearanceissuedthereunder.• To inform the Trustee within ten (10) working days of the

occurrence of any social, labor, health and safety, security orenvironmental incidents, accidents or any other circumstanceswhichcouldreasonablybeexpectedtohaveanymaterialadversechangesontheIssuer'sbusinessandtakecorrectivemeasuresassuggestedbytheTrustee,ifany.

EventofDefault EventsofDefaultasstatedintheDebentureTrustDeed,includingbutnotlimitedtothefollowing:• Non-Paymentofprincipalorcoupononduedates.• BreachofanytermsoftheTransactionDocuments;ifnotcuredin

30days.• BreachofanycovenantsoftheTransactionDocumentsifnotcured

in30days.• Misrepresentationsofanyrepresentationsandwarranties; ifnot

curedin30days.• Cross-defaultundertheTransactionDocumentsforthedebentures

ifitinexcessofRs.5croreandsameisnotcuredwithin30days.• Insolvency,reorganization,liquidation,suspensionofpaymentsof

debts,windingup,illegality,cessationofbusinessbyIssuer.• Applicationforinvoluntarywindingup/applicationfiledbyIssuer

forvoluntary insolvencyoragainst Issuerby financialcreditor/operationalcreditorunderInsolvencyandBankruptcyCode,2016,asamended,ifnotcuredin7days.

• UnlawfulnessoftheTransactionDocumentsoranyMoratoriumonpaymentbeingimposed.

• Nationalization or Expropriation of any substantial part of theassetsoftheIssuer.

• Reorganization, liquidation, suspension of payments of debts,windingup,illegality,cessationofbusiness.

• IllegalityoftheTransactionDocumentifnotcuredin30days.• EnforceabilityofSecurityismateriallyaffectedasisinjeopardy.• MaterialAdverseEffects;ifnotcuredwithin30days.• CessationofbusinessoftheIssuer.• Fraudandmisappropriation.• Anysecurityceasingtobeeffectiveifnotcuredwithin30days• Breach/non-creationofanySecuritydocument,withinstipulated

timeframeunlessextendedwithmutualconsentwithTrustee• Failure to obtain / maintain any insurance as required by the

Trustee, and or review from time to time, or failure to payinsurancepremiumwhendue,withinaperiodof90days.

• ThePromoteror Issueroranyof theirdirectorsare included inRBI's wilful defaulters (except nominee directors nominated byany financial institution). In case an independent director isincludedinwilfuldefaulterlist,cureperiodof30daystoreplacehim.

• Any other Event of Default as may be defined in TransactionDocuments.

ConsequenceofEventofDefault

TheconsequencesofdefaultasstatedintheDebentureTrustDeedwillincludebutnotlimitedto,thefollowing:• Accelerationofalloutstandingdues,cancellationoftotalIssueand

enforcementofSecurity;• To transfer assets of the Issuer comprised within the Security

created in favour of the Debenture Trustee or such any other

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personbywayof lease, leaveandlicense,saleorotherwise.Anysurplusrealizedfromthetransferofassetsafter fulfilmentofallobligationsoftheIssuerundertheIssueshallbepaidtotheIssuer.

• EnforceitsrightundertheTransactionDocuments;• Appropriate any amount in the accounts and utilize it for the

payments/repaymentsoftheanyamountsoutstandingundertheIssue;

• Default Interest shall be charged from the date of defaultirrespectiveofthesamebeingdeclaredbytheDebentureHolderstillsuchdatethedefaultsubsists;

• Anycosts incurred inrespectof theaboveshallbeborneby theIssuer;

• Exercise any other right that the Trustee may have under theFinancingAgreementsandSecuritydocumentsorunderapplicablelaw;

• StipulateanyfurthertermsandconditionsastheTrusteedeemfitwithrespecttoTransactionDocuments.

DividendRestriction TheIssuershallnotdeclareorpaydividendtotheshareholderforanyfinancial year if an event of non-payment of interest, principalinstalmentandothermoniesdueunderthefinancingdocumentshasoccurred.

MaterialAdverseEffect the occurrence, effect or consequence of an event, circumstance,occurrence or condition (including any roll-back of regulatoryapproval, material to operations of the Company) which in the soleopinion of Debenture Trustee has caused, as of any date ofdetermination,orcouldbeexpectedtohaveamaterialadverseeffectonormaterialadversechangein:• The financial condition, performance, assets, operations,

properties,orbusinessoftheIssuer;• The ability of the Issuer to perform its obligations under the

TransactionDocuments;• thevalidity,legalityorenforceabilityofanyoftheDebenturesor

anyTransactionDocuments(includingtheabilityofanypartytoenforceanyofitsremediesthereunder),or

• The effectiveness, validity, legality, enforceability, priority orranking of the Encumbrances created under the TransactionDocuments.

ForceMajeure ThetermsheetiscontingentontheassumptionthatfromthedateoftheprovisionofthistermsheettotheDeemedDateofAllotment,thereisnomaterialadversechangeinthefinancialconditionsoftheIssueroranyofitsaffiliateandIndiandebtmarketswhichinthereasonableopinionoftheArrangerwouldmakeitinadvisabletoproceedwiththeissue. In case of such material adverse change, the terms may berenegotiatedtothemutualsatisfactionoftheArrangerandtheIssuer.

GoverningLawandJurisdiction

This Information Memorandum and the Transaction Documents forthisDebentureissuanceshallbegovernedbyIndianLawandshallbesubjecttothejurisdictionofcourtsofMumbaiorsuchotherplaceasmaybemutuallyagreeduponbytheIssuerandtheDebentureTrusteeintheDebentureTrustDeed.

Taxesdutiescostandexpenses

Relevant taxes, duties and levies are to be borne by the Issuer. Allcharges/feesandanyamountspayableunderinrelationtotheissueoftheDebenturesandtheDebentureObligationsbytheIssuertotheDebentureHoldersasmentionedhereindonotincludeanyapplicabletaxes,leviesincludingservicetaxetc.andallsuchimpositionsshallbebornebytheIssueradditionally,exceptincometaxes.

Approvals TheIssueragreestocomplywithallapplicablelawsinrespectoftheIssue. The Issuer will be responsible for taking all the necessaryauthorizations and / or approvals internal, external regulatory,statutoryorotherwise.

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Mannerofbidding OpenModeofsettlement ICCLModeofallotment UniformPriceNote:SubjecttodeductionofTaxatsourceasapplicable.**TheIssuerreservesitssoleandabsoluterighttomodify(pre-pone/postpone)theaboveissueschedulewithoutgivinganyreasonsorpriornotice.Insuchacase,investorsshallbeintimatedabouttherevisedtimeschedulebytheIssuer.TheIssueralsoreservestherighttokeepmultipleDeemedDate(s)ofAllotmentatitssoleandabsolutediscretionwithoutanynotice.IncaseiftheIssueClosingDate/PayinDateis/arechanged(pre-poned/postponed),theDeemedDateofAllotmentmayalsobechanged(pre-poned/postponed)bytheIssuerat its soleandabsolutediscretion.Consequent tochange inDeemedDateofAllotment, theCouponPaymentDatesand/orCallOptionDateand/orRedemptionDatemayalsobechangedatthesoleandabsolutediscretionoftheIssuer.U)DISCLOSUREOFCASHFLOWS:asperSEBICircularNo:CIR/IMD/DF/18/2013datedOctober29,2013&SEBICircularDatedNovember11,2016Company J.K.CEMENTLIMITEDTenure 4yearsFaceValue(persecurity) Rs.10,00,000DeemedDateofAllotment July23,2020RedemptionDate July23,2024CouponRate 7.36%p.a.Frequencyofthecouponpaymentwithspecifieddates

Semi-Annual

DaycountConvention Actual/ActualIllustrativecashflowperDebenture:

Date Principal Interest RepaymentOutstanding Total

Thursday,July23,2020 1,000,000.00 1,000,000.00

Friday,January22,2021 1,000,000.00 36,800.00 1,000,000.00 36,800.00

Friday,July23,2021 1,000,000.00 36,699.18 1,000,000.00 36,699.18

Friday,January21,2022 1,000,000.00 36,699.18 1,000,000.00 36,699.18

Friday,July22,2022 1,000,000.00 36,699.18 200,000.00 800,000.00 236,699.18

Monday,January23,2023 800,000.00 29,843.29 200,000.00 600,000.00 229,843.29

Friday,July21,2023 600,000.00 21,656.55 200,000.00 400,000.00 221,656.55

Tuesday,January23,2024 400,000.00 15,002.30 200,000.00 200,000.00 215,002.30

Tuesday,July23,2024 200,000.00 7,339.84 200,000.00 - 207,339.84

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Illustrativetotalcashflow:

Date Principal Interest RepaymentOutstanding Total

Thursday,July23,2020

2,500,000,000.00

2,500,000,000.00 -

Friday,January22,2021

2,500,000,000.00 92,000,000.00

2,500,000,000.00 92,000,000.00

Friday,July23,2021

2,500,000,000.00 91,747,945.21

2,500,000,000.00 91,747,945.21

Friday,January21,2022

2,500,000,000.00 91,747,945.21

2,500,000,000.00 91,747,945.21

Friday,July22,2022

2,500,000,000.00 91,747,945.21 500,000,000.00

2,000,000,000.00 591,747,945.21

Monday,January23,2023

2,000,000,000.00 74,608,219.18 500,000,000.00

1,500,000,000.00 574,608,219.18

Friday,July21,2023

1,500,000,000.00 54,141,369.86 500,000,000.00

1,000,000,000.00 554,141,369.86

Tuesday,January23,2024

1,000,000,000.00 37,505,753.42 500,000,000.00 500,000,000.00 537,505,753.42

Tuesday,July23,2024 500,000,000.00 18,349,589.04 500,000,000.00 - 518,349,589.04

FUTUREBORROWINGSTheCompanywillbeentitledtoborrow/raiseloansoravailoffinancialassistanceinwhateverformasalsotoissuedebentures/NCDs/othersecuritiesinanymannerhavingsuchrankinginpriority,paripassuorotherwise, subject to applicable consents, approvals or permissions that may be required under anystatutory/regulatory/contractual requirement subject to fulfilment of the covenantsmentioned in theTermsheet.

RIGHTSOFDEBENTUREHOLDER(S)TheDebentureHolderswillnotbeentitledtoanyrightsandprivilegesofshareholdersotherthanthoseavailabletothemunderstatutoryrequirements.TheDebenturesshallnotconferupontheholderstherightto receive notice, or to attend and vote at the generalmeetings of shareholders of the Company. Theprincipalamountandinterest,ifany,ontheDebentureswillbepaidtothesoleholderonly,andinthecaseofjointholders,totheonewhosenamestandsfirstintheRegisterofdebentureholders.TheDebenturesshallbesubjecttootherusualtermsandconditionsincorporatedinthedebenturecertificate(s)thatwillbe issued to the allottee(s) of such Debentures by the Company and also in the Trustee Agreement /DebentureTrustDeed.

MODIFICATIONOFRIGHTSThe rights, privileges, terms and conditions attached to the Debentures may be varied, modified orabrogatedwiththeconsent,inwriting,ofthoseDebenturesHolderswhoholdatleastthree-fourthoftheoutstandingamountoftheDebenturesorwiththesanctionaccordedpursuanttoaresolutionpassedataseparatemeetingofthedebentureholdersrepresentingthree-fourthofoutstandingamountofdebentures,providedthatnothinginsuchconsentorresolutionshallbeoperativeagainsttheCompanywheresuchconsentorresolutionmodifiesorvariesthetermsandconditionsoftheDebentures,ifthesamearenotacceptabletotheCompany.

DEBENTUREHOLDERNOTASHAREHOLDERTheDebentureHolderswillnotbeentitledtoanyoftherightsandprivilegesavailabletotheshareholders.If,however,anyresolutionaffectingtherightsattachedtotheDebenturesisplacedbeforethemembersoftheCompany,suchresolutionwill firstbeplacedbefore theDebentureHolders throughtheDebentureTrusteefortheirconsideration.

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NOTICESAllnoticesrequiredtobegivenbytheIssuerorbytheDebentureTrusteetotheDebentureHoldersfromtimetotime,shallbedeemedtohavebeengivenifsentbyregisteredpost/sentbyaperson/overnightcourier(ifforinlanddelivery)orinternationalcourier(iforoverseasdelivery)/totheoriginalsole/firstallotteesoftheDebentures.AllnoticesrequiredtobegivenbytheDebentureHolder(s),includingnoticesreferredtounder“PaymentofInterest”and“PaymentonRedemption”shallbesenttotheCompanySecretaryoftheCompanyattheRegisteredOfficebyregisteredpost/speedpostorbyhanddeliverytosuchpersonsatsuchaddressasmaybenotifiedbytheIssuerfromtimetotime.

EVENTSOFDEFAULTPleaserefertoclause“EventsofDefault”intheTermSheetofthisDisclosureDocument.

ADDITIONALCOVENANTSa. Defaultinpayment:AdditionalInterestof2%p.a.overandabovetheagreedcoupon/interestcalculatedfortheperiodfromthedateonwhichanypaymentisduebytheIssueruntilthedatethepaymentismade.b. SecurityCreation:ThesecurityistobecreatedperfectedwithinaperiodofthreemonthsfromDateofAllotment.TheCompanyshallpayapenalinterestof2%p.a.overthecouponrateforthedelayedperiodtilltheactualdateofcreationofthesecurity,iftheCompanyfailstocreatethesecuritywithinthestipulatedtime.FurtheriftheCompanyfailstocreatethesecurityaftertheextendedtimeifany,theinvestorsreservestherighttore-calltheinvestmentalongwithalltheamountsoutstanding.c. DelayinListing:TheIssuerproposestolisttheDebenturesonWDMoftheBSEandaccordinglyshallmakeanapplicationtoBSE.The Issuer furthercovenants that itshallensure listingofallDebentureswithin15daysof theDeemedDateofAllotment.Incaseofdelayinlistingofthedebtsecuritiesbeyond15daysfromtheDeemedDateofAllotment, theIssuerwillpayadditional interestofat least1%p.a.overthecouponratetotheDebentureHoldersforthedelayedperiodi.e.fromtheexpiryof30daysfromtheDeemedDateofAllotmenttillduelistingofsuchDebentures.

Incaseofdelayinlistingofthedebtsecuritiesbeyond15daysfromtheDeemedDateofAllotment,theIssuershallberesponsibleforthecostsofsuchlistingofDebentures.Onthehappeningofanyoftheeventofdefault,inadditiontotherightsspecifiedabove,theDebentureHoldersTrusteesshallhavetherightasindicatedintheSEBIRegulations/CompanyAct2013fromtimetotime.

85

FORMNO.PAS–4

PRIVATEPLACEMENTOFFERLETTER

Pursuanttosection42andrule14(1)ofCompanies(ProspectusandAllotmentofSecurities)Rules,2014

1. GENERALINFORMATIONa. Name,address,websiteandothercontactdetailsofthecompanyindicatingbothregistered

officeandcorporateoffice:Sr.No PARTICULARS : DETAILS(i) REGISTEREDANDCORPORATEOFFICEOFTHEISSUER• Name : J.K.CementLimited• Address : KamlaTower,Kanpur,UttarPradesh208001• TeleNo : +91-512-2371478-81;• FaxNo : +91-512-2332665/2399854;• Email : shambhu.singh@jkcement.com• Website : www.jkcement.com;

b. Dateofincorporationofthecompany:November24,1994c. Business carriedonby the companyand its subsidiarieswith thedetails of branchesor

units,ifany:

PleaserefertheOverviewofBusinessActivitiesspecifiedinSectionBofthisDisclosureDocument.BusinesscarriedbySubsidiaries:JAYKAYCEMCentralLtd.–LimestoneMineshasbeenallottedtotheJAYKAYCEMCentralLtd.anditisproposedtosetupaCementPlant.Presently,itisundertheprocessofobtainingclearancesandlandacquisition.J.K.Cement(Fujairah)FZC–CarryoutoperationsofaWhiteCementunitinUAE,havingcapacityof0.6MNTPAthroughastepdownsubsidiaryJ.K.CementWorks(Fujairah)FZC.ThiscatersWhiteCementandothervalueaddedproductstothemarketofGCCandExporttoothercountriesalso.IthasalsoestablishedasubsidiaryinEastAfricanamelyJ.K.WhiteCement(Africa)Ltd.tomarkettheseproducts.DetailsofBranchesofthecompanyareasunder;Wehave23greycementand40whitecementsalesofficesacrossthenationincludingatlocationslike Goa, Kerala, Pune, Kolhapur, Solapur, Raichur, Aurangabad, Aurangabad, Belgaum, Hubli,Bangalore, Mangalore, Hassan, Davangere, Hyderabad, Vijaywada, Chennai, Cochin, Trichy,Ahmedabad, Mumbai, Pune, Nagpur and Tuticorin in the south; Delhi, Haryana, Hissar, UttarPradesh, Uttaranchal, Punjab, Chandigarh, Rajasthan, Madhya Pradesh, Gujarat, Raipur, Jaipur,Indore, Bhopal, Gurgaon, Gwalior, Jabalpur, Jodhpur, Kota and Bikaner in the north; Kanpur,Ghaziabad, Lucknow, Dehradun, Varanasi, Modinagar, Muradnagar, and Khurja in the Central,Ranchi,Kolkata,Patna,Bhubaneshwar,SiliguriandGuwahatiintheeast.

d. Briefparticularsofthemanagementofthecompany:

PleasereferDetailsofDirectorsspecifiedinSectionEofthisDisclosureDocument.e. Names,addresses,DINandoccupationsofthedirectors:

86

PleasereferDetailsofDirectorsspecifiedinSectionEofthisDisclosureDocument.f. Management’sperceptionofriskfactors:

Pleaserefertopageno.13ofthisDisclosureDocument.g. Details of default, if any, including therein the amount involved, durationof default and

presentstatus,inrepaymentof:i)statutorydues:Nodefaultii)debenturesandinterestthereon:Nodefaultiii)depositsandinterestthereon:Nodefaultiv)Loanfromanybankorfinancialinstitutionandinterestthereon:Nodefault

h. Names,designation,addressandphonenumber,emailIDofthenodal/complianceofficer

ofthecompany,ifany,fortheprivateplacementofferprocess:

COMPLIANCEOFFICEROFTHEISSUERName : ShambhuSinghAddress : KamlaTower,Kanpur,UttarPradesh208001,IndiaTeleNo : +91-512-2371478-81FaxNo : +91-512-2332665/2399854Email : shambhu.singh@jkcement.com

i. AnyDefaultinAnnualfilingoftheCompanyundertheCompaniesAct,2013ortherulesmade

thereunder.None

2. PARTICULARSOFTHEOFFERa. Dateofpassingofboardresolution:

ThepresentplacementofDebenturesisbeingmadepursuanttotheresolutionpassedbytheBoardofDirectorsoftheCompanyatitsmeetingheldonJune17,2020.

b. Dateofpassingofresolutioninthegeneralmeeting:

TheShareholdersof theCompanyvide their resolutiondatedAugust6,2016haveapprovedanaggregateborrowinglimitsoftheCompany,includingthroughissueofdebenturesunderSection180(1)(c)oftheCompaniesAct,2013.

c. Kindsofsecuritiesoffered(i.e.whethershareordebenture)andclassofsecurity;

Secured,Listed,Rated,Redeemable,Non-ConvertibleDebenturesoffacevalueofRs.10lakhseachamountingtoRs.250crores

d. Price at which the security is being offered including the premium, if any, along with

justificationoftheprice;

Priceatwhichthesecurityisbeingoffered

FaceValue Rs.10,00,000/-Discount NilPremium NilTotal(Justification) Rs.10,00,000/-

e. Nameandaddressofthevaluerwhoperformedvaluationofthesecurityoffered;

87

NotApplicable

f. Thejustificationfortheallotmentproposedtobemadeforconsiderationotherthancashtogetherwithvaluationreportoftheregisteredvaluer;NotApplicable

g. Relevantdatewithreferencetowhichthepricehasbeenarrivedat(RelevantDatemeansa

dateatleastthirtydayspriortothedateonwhichthegeneralmeetingofthecompanyisscheduledtobeheld)NotApplicable

h. Theclassorclassesofpersonstowhomtheallotmentisproposedtobemade;

Pleasereferto‘WhocanApply’sectionofthisDisclosureDocument.

i. Intention of promoters, directors or keymanagerial personnel to subscribe to the offer(applicableincasetheyintendtosubscribetotheoffer)required;NotApplicable

j. Thenamesoftheproposedallotteesandthepercentageofpostprivateplacementcapitalthatmaybeheldbythem;NotApplicable

k. Thenumberofpersonstowhomallotmentonpreferentialbasis/privateplacement/rightsissuehasalreadybeenmadeduringtheyear, intermsofnumberofsecuritiesaswellasprice;TheCompanyhasnotallottedanysecuritiesduringthecurrentFiscal.

l. Thechangeincontrol, ifany, inthecompanythatwouldoccurconsequenttotheprivateplacement;TherewillbenochangeincontrolconsequenttotheIssue.

m. Thepre-issueandpost-issueshareholdingpatternofthecompany;Pleaserefertothe‘ShareholdingPatternoftheCompany’intheDisclosureDocument.

n. Amountwhichthecompanyintendstoraisebywayofsecurities;

Rs.250croreso. Termsofraisingofsecurities:Duration,ifapplicable,Rateofdividendorrateofinterest,

modeofpaymentandrepayment:

PleaserefertheTermsheetofthisDisclosureDocumentp. Proposedtimescheduleforwhichtheofferletterisvalid:

PleaserefertheTermsheetofthisDisclosureDocumentq. Purposesandobjectsoftheoffer:

PleaserefertheTermsheetofthisDisclosureDocument

88

r. Contribution being made by the promoters or directors either as part of the offer orseparatelyinfurtheranceofsuchobjects:

NIL

s. Principletermsofassetschargedassecurity,ifapplicable:

PleaserefertheTermsheetofthisDisclosureDocument3. DISCLOSURESWITHREGARDTOINTERESTOFDIRECTORS,LITIGATIONETC.a. Any financial or other material interest of the directors, promoters or key managerial

personnel in the offer and the effect of such interest in so far as it is different from theinterestsofotherpersons.

Directorsarenotpersonallyinterestedintheoffer.

b. DetailsofanylitigationorlegalactionpendingortakenbyanyMinistryorDepartmentof

the Government or a statutory authority against any promoter of the offeree companyduringthe last threeyears immediatelyprecedingtheyearof thecirculationof theofferletterandanydirectionissuedbysuchMinistryorDepartmentorstatutoryauthorityuponconclusionofsuchlitigationorlegalactionshallbedisclosed.

Exceptasstatedbelow,therearenolitigationorlegalactionpendingortakenbyanyMinistryorDepartmentoftheGovernmentorastatutoryauthorityagainstourPromotersduringthelastthreeyears immediately preceding the year of circulation of this InformationMemorandum and nodirection has been issued by any such Ministry of Department or statutory authority uponconclusionofsuchlitigationorlegalaction.

1. Our Directors, Yadupati Singhania and Sushila Devi Singhania and certain other persons(“Applicant”),formingpartofthepromotergroupofJaykayEnterprisesLimited,filedasuo-motoapplicationdatedJanuary16,2017withtheSecuritiesandExchangeBoardofIndia(“SEBI”)forsettlingthedelayedcompliancewhichoccurredingivingopenofferunderregulation3(1)oftheSEBI(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011,whileacquiringcertainequitysharesofJaykayEnterprisesLimited.Pursuanttopaymentofanamountof₹0.18croreascommunicatedtotheApplicantbySEBIvideitse-maildatedOctober11,2007fortheaforesaiddefault, the SEBI vide its order dated November 9, 2017 bearing reference no. SO/EFD-2/SD/174/NOV/2017recordedthattheproceedingsthatmaybeinitiatedfortheaforesaiddefaultaresettledandnoenforcementactionwouldbeinitiatedfortheaforesaiddefault.

c. Remunerationofdirectors(duringthecurrentyearandlastthreefinancialyears)RemunerationoftheDirectors

(Rs.incrores)

Sl.No. NameoftheDirector

RemunerationpaidbythecompanyFY20-21

(UntilJune30,2020) FY19-20 FY18-19 FY17-18

1. YadupatiSinghania** - 21.25 18.60 14.242. ShriSudhirJalan 0.015 0.11 - -3. Smt.SushilaDeviSinghania 0.01 0.11 0.15 0.144. ShriA.Karati 0.015 0.13 0.12 0.125. ShriJ.N.Godbole 0.02 0.14 0.13 0.146. Dr.K.B.Agarwal 0.225 0.17 0.17 0.167. ShriK.N.Khandelwal## 0.0075 0.15 0.14 0.138. ShriRajKumarLohia# - - 0.12 0.129. ShriSuparasBhandari 0.0175 0.14 0.13 0.1310. Mr.PaulHeinzHugentobler 0.01 1.20 1.21 1.1911. Mrs.DeepaGopalanWadhwa 0.015 0.12 0.11 -12. ShriSaurabhChandra* 0.015 0.13 - -

89

13. ShriAshokSinha* 0.0125 0.12 - -14. ShriRaghavPatSinghania*** 0.41 - - -15. ShriMadhavKrishna

Singhania***0.26 - - -

16. ShriAjayKumarSaraogi*** 0.609 - - -**includesremunerationinAEDfromforeignsubsidiarycompaniesduringthecalendaryear2018.#Ceasedw.e.f.3.8.2019##Ceasedw.e.f.17.6.2020*appointedw.e.f.18.5.2019***appointedw.e.f.17.06.2020d. Related party transactions entered during the last three financial years immediately

preceding the year of circulation of offer letter includingwith regard to loansmade or,guaranteesgivenorsecuritiesprovided:

PleaserefertoAnnexure1fortherelatedpartytransactionsforthefinancialyears2017-18,2018-19,2019-2020.

e. Summaryofreservationsorqualificationsoradverseremarksofauditors inthelast fivefinancial years immediately preceding the year of circulation of offer letter and of theirimpactonthefinancialstatementsandfinancialpositionofthecompanyandthecorrectivestepstakenandproposedtobetakenbythecompanyforeachofthesaidreservationsorqualificationsoradverseremark:

Therehasbeennoqualificationraisedoftheauditorsinthelastfivefinancialyearsimmediatelyprecedingtheyearofcirculationofofferletter.

f. Details of any inquiry, inspections or investigations initiated or conducted under the

CompaniesActoranypreviouscompanylawinthelastthreeyearsimmediatelyprecedingtheyearofcirculationofofferletterinthecaseofcompanyandallofitssubsidiaries.Alsoiftherewereanyprosecutionsfiled(whetherpendingornot)finesimposed,compoundingofoffencesinthelastthreeyearsimmediatelyprecedingtheyearoftheofferletterandifso,section-wisedetailsthereofforthecompanyandallofitssubsidiaries:

Nil

g. Detailsofactsofmaterialfraudscommittedagainstthecompanyinthelastthreeyears,if

any,andifso,theactiontakenbythecompany:

Nil4. FINANCIALPOSITIONOFTHECOMPANY

a. thecapitalstructureofthecompanyinthefollowingmannerinatabularform-(i)(A)theauthorised,issued,subscribedandpaidupcapital(numberofsecurities,description

andaggregatenominalvalue):

KindlyrefertosectionCoftheDisclosureDocument

(B)sizeofthepresentoffer:Rs.250crores

(C)paidupcapital:

1. After the offer: Since the said offer pertains to Redeemable,Listed,Secured and Rated Non-ConvertibleDebentures,itwillnothaveanyimpactonissuedsharecapitalofthecompany.

90

2. Afterconversionofconvertibleinstruments(ifapplicable):N.A.

(D)Sharepremiumaccount(beforeandaftertheoffer):

AsonMarch31,2020 Rs.756.79croreAftertheOffer SincethesaidofferpertainstoRedeemable,Listed,SecuredandRatedNon-

Convertible Debentures, it will not have any impact on Share PremiumAccountoftheCompany

(ii) The details of the existing share capital of the Issuer company in a tabular form,indicatingthereinwithregardtoeachallotment,thedateofallotment,thenumberofsharesallotted,thefacevalueofthesharesallotted,thepriceandtheformofconsideration.ProvidedthattheIssuercompanyshallalsodisclosethenumberandpriceatwhicheachofthe allotments were made in the last one year preceding the date of the offer letterseparatelyindicatingtheallotmentsmadeforconsiderationsotherthancashandthedetailsoftheconsiderationineachcase;

PleaserefertotheDetailsofSharecapitalandChangesinsharecapitalstructureinthisDisclosureDocument.

b. Profitsof thecompany,beforeandaftermakingprovision for tax, for the three financial

yearsimmediatelyprecedingthedateofcirculationofofferletter:(Amountincrores)

Profitsbeforeandaftermaking

provisionfortax

Details

LastAuditedFiscalYear(2019-20)

PrecedingYear

(2018-19)

PrecedingYear

(2017-18)

PBT Standalone 652.01 473.57 439.72Consolidated 734.44 412.43 383.21

PAT Standalone 400.37 324.89 341.87Consolidated 483.39 263.63 285,58

c. Dividends declaredby the company in respect of the said three financial years; interest

coverageratioforlastthreeyears(Cashprofitaftertaxplusinterestpaid/interestpaid)

DetailsLastAuditedFiscalYear(2019-20)

FinancialYear(2018-19)

FinancialYear(2017-

18)Dividends(includingDDT)paidbythecompany(Rs.InCrores)

163.01 84.30 67.33

InterestCoverageRatio 5.06 4.09 3.62d. Asummaryofthefinancialpositionofthecompanyasinthethreeauditedbalancesheets

immediatelyprecedingthedateofcirculationofofferletter;

RefertoANNEXURE1e. Audited Cash Flow Statement for the three years immediately preceding the date of

circulationofofferletter;

ReferANNEXURE1f. Anychangeinaccountingpoliciesduringthelastthreeyearsandtheireffectontheprofits

andthereservesofthecompany.

92

APPLICATIONFORM

J.K.CEMENTLIMITEDAPubliclimitedcompanyincorporatedundertheCompaniesAct,1956

DateofIncorporation:November24,1994RegisteredOffice:KamlaTower,Kanpur,UttarPradesh–208001

TelephoneNo.:+91-512-2371478-81;ContactPerson:

Website:http://www.jkcement.com;

ISSUEOFUPTO2,500(SECURED,RATED,LISTED,REDEEMABLE,NON-CONVERTIBLEDEBENTURESOF J.K.CEMENTLIMITEDOFFACEVALUEOFRS.10,00,000/- (RUPEESTENLAKHSONLY)EACHAGGREGATINGUPTORS.RS.250CRORE(RUPEESTWOHUNDREDFIFTYCROREONLY)DEBENTUREAPPLIEDFOR:NumberofDebentures________Inwords____________________________________________AmountRs._____________________/-_inwordsRupees______________________________________________________________________________________CroresonlyDETAILSOFPAYMENT:RTGS/NEFTNo._____________Drawnon_____________________________________________Fundstransferredto______________________Dated____________TotalAmountEnclosed(InFigures)_____________(Inwords)______________________________________APPLICANT’SNAMEINFULL(CAPITALS) SPECIMENSIGNATURE

APPLICANT’SADDRESSADDRESS

STREET

CITY

PIN PHONE FAX

APPLICANT’SPAN/GIRNO.___________ITCIRCLE/WARD/DISTRICT____WEARE()COMPANY()OTHERS()SPECIFY__________

93

Wehave readandunderstood theTermsandConditionsof the issueofDebentures including theRiskFactorsdescribedintheMemorandumandhaveconsideredtheseinmakingourdecisiontoapply.WebindourselvestotheseTermsandConditionsandwishtoapplyforallotmentoftheseDebentures.Werequestyoutopleaseplaceourname(s)ontheRegisterofHolders.

NameoftheAuthorisedSignatory(ies)

Designation Signature

Applicant’s Signature Wetheundersigned,areagreeabletoholdingtheDebenturesoftheCompanyinDemat.Detailsofmy/ourBeneficialOwnerAccountaregivenbelow:DEPOSITORY NSDL()CDSL()DEPOSITORYPARTICIPANTNAME DP-ID BENEFICIARYACCOUNTNUMBER NAMEOFTHEAPPLICANT(S)

ApplicantBankAccount:(SettlementbywayofCheque/DemandDraft/PayOrder / Direct Credit / ECS / NEFT/RTGS/otherpermittedmechanisms)

FOROFFICEUSEONLYDATEOFRECEIPT________________WeunderstandandconfirmthattheinformationprovidedintheInformationMemorandumisprovidedbytheIssuerandthesamehasnotbeenverifiedbyanylegaladvisorstotheIssuerandotherintermediariesand their agents and advisors associatedwith this Issue.We confirm thatwe have for the purpose ofinvestingintheseDebenturescarriedoutourownduediligenceandmadeourowndecisionswithrespecttoinvestmentintheseDebenturesandhavenotreliedonanyrepresentationsmadebyanyoneotherthantheIssuer,ifany.TheIssuerunderstandsandacceptsthattheApplicants'intentiontosubscribetotheIssueissubjectto(i)theabsenceofmaterialadversechangesintheavailabilityofcurrencyhedgingaccessibletoitbetweentheIssueOpeningDateandthePay-inDateand/or(ii)thehedgingpricebeingacceptabletotheApplicants.Weunderstandthat:(i) incaseofallotmentofDebenturestous,ourBeneficiaryAccountasmentionedabovewould get credited to the extent of allottedDebentures, (ii) theApplicantmust ensure that thesequenceofnamesasmentionedintheApplicationFormmatchesthesequenceofnameheldwithourDepositoryParticipant,(iii)ifthenamesoftheApplicantinthisapplicationarenotidenticalandalsonotinthesameorderastheBeneficiaryAccountdetailswiththeabovementionedDepositoryParticipantoriftheDebenturescannotbecreditedtoourBeneficiaryAccountforanyreasonwhatsoever,theCompanyshallbeentitledatitssolediscretiontorejecttheapplicationorissuetheDebenturesinphysicalform.Weunderstandthatweareassumingonourownaccount,allriskoflossthatmayoccurorbesufferedbyusincludingastothereturnsonand/orthesalevalueoftheDebentures.Weundertakethatuponsaleortransfertosubsequentinvestorortransferee(“Transferee”),weshallconveyallthetermsandconditionscontainedhereinandinthisInformationMemorandumtosuchTransferee.

94

Applicant’s Signature

FOROFFICEUSEONLYDATEOFRECEIPT______________________

-------------------------------------------------(TEARHERE)--------------------------------------------

ACKNOWLEDGMENTSLIP(TobefilledinbyApplicant)SERIALNO. - - - - - - - -

Receivedfrom_______________________________________________

Address______________________________________________________________________________________________________________________________________UTR#______________Drawnon_______________________________forRs._____________onaccountofapplicationof_____________________Debenture

CARE Ratings Ltd.

CORPORATE OFFICE: 4th Floor, Godrej Coliseum, Somaiya

Hospital Road, Off Eastern Express Highway, Sion (E),

Mumbai - 400 022.

Tel.: +91-22- 6754 3456 Fax: +91-22- 022 6754 3457

Email: care@careratings.com www.careratings.com

13th Floor, E-1 Block, Videocon Tower

Jhandewalan Extension, New Delhi - 110 055.

Tel: +91-11-4533 3200 Fax: +91-11-4533 3238

CIN-L67190MH1993PLC071691

No. CARE/DRO/RL/2020-21/1670 Mr. A.K. Saraogi President (Corporate Affairs) & Chief Financial Officer J.K. Cement Ltd. Kamla Tower, Kanpur 208 001, Uttar Pradesh

July 3, 2020

Confidential

Dear Sir,

Credit rating for proposed Non-Convertible Debenture issue

Please refer to your request for rating of proposed long-term non-convertible debenture

(NCD) issue aggregating to Rs.250 crore of your company. The proposed NCDs would have

tenure of four (4) years with repayment in six/ seven semi-annual equal installments.

2. The following ratings have been assigned by our Rating Committee:

Instrument Amount (Rs. crore)

Rating1 Rating Action

Proposed Non-Convertible Debenture issue

250.00 (enhanced from Rs.200 crore)

CARE AA; Stable (Double A ; Outlook : Stable)

Reaffirmed

Total 250.00 (Rs. Two Hundred and Fifty

Crore)

3. Please arrange to get the rating revalidated, in case the proposed issue is not made

within a period of six months from the date of our initial communication of rating to you

(that is July 3, 2020).

1Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE publications.

CARE Ratings Ltd.

13th Floor, E-1 Block, Videocon Tower, Jhandewalan Extension, New Delhi - 110 055.

Tel: +91-11-4533 3200 Fax: +91-11-4533 3238

4. In case there is any change in the size or terms of the proposed issue, please get the

ratings revalidated.

5. Please inform us the below-mentioned details of issue immediately, but not later than 7

days from the date of placing the instrument:

Instrument type

ISIN Issue Size (Rs cr)

Coupon Rate

Coupon Payment

Dates

Terms of Redemption

Redemption date

Name and contact

details of Debenture

Trustee

Details of top 10

investors

6. Kindly arrange to submit to us a copy of each of the documents pertaining to the NCD

issue, including the offer document and the trust deed.

7. The rationale for the rating will be communicated to you separately. A write-up (press

release) on the above rating is proposed to be issued to the press shortly, a draft of

which is enclosed for your perusal as Annexure. We request you to peruse the annexed

document and offer your comments if any. We are doing this as a matter of courtesy to

our clients and with a view to ensure that no factual inaccuracies have inadvertently

crept in. Kindly revert as early as possible. In any case, if we do not hear from you by July

07, 2020, we will proceed on the basis that you have no any comments to offer.

8. CARE reserves the right to undertake a surveillance/review of the rating from time to

time, based on circumstances warranting such review, subject to at least one such

review/surveillance every year.

9. CARE reserves the right to revise/reaffirm/withdraw the rating assigned as also revise

the outlook, as a result of periodic review/surveillance, based on any event or

information which in the opinion of CARE warrants such an action. In the event of failure

on the part of the entity to furnish such information, material or clarifications as may be

required by CARE so as to enable it to carry out continuous monitoring of the rating of

CARE Ratings Ltd.

13th Floor, E-1 Block, Videocon Tower, Jhandewalan Extension, New Delhi - 110 055.

Tel: +91-11-4533 3200 Fax: +91-11-4533 3238

the debt instrument, CARE shall carry out the review on the basis of best available

information throughout the life time of such instrument. In such cases the credit rating

symbol shall be accompanied by “ISSUER NOT COOPERATING”. CARE shall also be

entitled to publicize/disseminate all the afore-mentioned rating actions in any manner

considered appropriate by it, without reference to you.

10. Our ratings do not factor in any rating related trigger clauses as per the terms of the

facility/instrument, which may involve acceleration of payments in case of rating

downgrades. However, if any such clauses are introduced and if triggered, the ratings

may see volatility and sharp downgrades.

11. Users of this rating may kindly refer our website www.careratings.com for latest update

on the outstanding rating.

12. CARE ratings are not recommendations to buy, sell or hold any securities.

If you need any clarification, you are welcome to approach us in this regard. We are indeed,

grateful to you for entrusting this assignment to CARE.

Thanking you,

Yours faithfully,

[Harish Chellani] [Jasmeen Kaur] Senior Manager Deputy General Manager harish.chellani@careratings.com jasmeen.kaur@careratings.com Encl.: As above

Disclaimer

CARE Ratings Ltd.

13th Floor, E-1 Block, Videocon Tower, Jhandewalan Extension, New Delhi - 110 055.

Tel: +91-11-4533 3200 Fax: +91-11-4533 3238

CARE’s ratings are opinions on the likelihood of timely payment of the obligations under the rated instrument and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE’s ratings do not convey suitability or price for the investor. CARE’s ratings do not constitute an audit on the rated entity. CARE has based its ratings/outlooks on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments. CARE or its subsidiaries/associates may also have other commercial transactions with the entity. In case of partnership/proprietary concerns, the rating /outlook assigned by CARE is, inter-alia, based on the capital deployed by the partners/proprietor and the financial strength of the firm at present. The rating/outlook may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners/proprietor in addition to the financial performance and other relevant factors. CARE is not responsible for any errors and states that it has no financial liability whatsoever to the users of CARE’s rating.

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CIN-L67190MH1993PLC071691

No. CARE/DRO/RR/2020-21/1313

Mr. A.K. Saraogi

President (Corporate Affairs) &

Chief Financial Officer

J.K. Cement Ltd.

Kamla Tower, Kanpur 208 001,

Uttar Pradesh

July 13, 2020

Dear Sir,

Credit rating for proposed Non-Convertible Debenture issue

Please refer to our letter dated July 3, 2020 on the above subject.

2. The rationale for the rating is attached as an Annexure-I.

3. We request you to peruse the annexed document and offer your comments, if any. We are

doing this as a matter of courtesy to our clients and with a view to ensure that no factual

inaccuracies have inadvertently crept in. Kindly revert as early as possible. In any case, if we

do not hear from you by July 14, 2020, we will proceed on the basis that you have no

comments to offer.

If you have any further clarifications, you are welcome to approach us.

Thanking you,

Yours faithfully,

Encl.: As above

[Harish Chellani] [Jasmeen Kaur]

Senior Manager Associate Director

harish.chellani@careratings.com jasmeen.kaur@careratings.com

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Annexure - I

Rating Rationale

J.K. Cement Limited

Rating

Facilities Amount (Rs. crore)

Rating1 Rating Action

Proposed Non-Convertible Debentures

250.00 (enhanced from Rs.200 crore)

CARE AA; Stable [Double A; Outlook: Stable]

Reaffirmed

Total Facilities 250.00 (Rs. Two Hundred and Fifty

Crore)

Details of instruments/facilities in Annexure-1

Detailed Rationale & Key Rating Drivers

The reaffirmation of rating of the non-convertible debentures (NCDs) of J.K. Cement Limited (JKCL)

derives strength from the extensive experience of the promoters in cement business, the company’s

established presence in grey cement across diversified geographical markets and its dominant

position in white cement, ensuring healthy margins from the product, and its strong brand image in

both segments. The rating also takes into account satisfactory financial performance of the company

during the FY20, its comfortable financial profile and its strong liquidity position.

The rating is, however, constrained on account of the timing of the significant capacity expansion

which is nearing completion and would come on-stream at a time when the cement industry is

impacted on account of the outbreak of Covid-19 pandemic, the incremental debt required for the

residual portion of the expansion programme which shall lead to increased overall gearing in the

next 1-2 years, support extended by JKCL to its loss-making subsidiary J.K Cement Works Fujairah

(JKCWF, rated CARE AA (SO); Stable), cyclicality associated with the cement industry, exposure to

volatility in input costs and cement demand dependent on construction activity and infrastructure

spend in the economy and the uncertainty regarding the timing of the on-going Covid-19 pandemic

clearing out.

Rating Sensitivities: The sensitivities indicate the possible direction of movement of rating in future

(positive or negative), on happening of, inter alia, the following events:

Positive Factors:

Improvement in leverage levels, going forward, with overall gearing sustaining below unity, on a

consolidated basis.

Timely stabilization of enhanced capacities such that the overall capacity utilization levels ramp

up to 75% -80%

Sustained growth in top-line by around 15-20% p.a.

1Complete definition of the ratings assigned are available at www.careratings.com and other CARE publications

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Turnaround of loss-making subsidiary J.K. Cement Works Fujairah

Sustained profitability in light of volatile input costs

Negative Factors

Time and cost overruns in the ongoing capex and extended stabilization period for the enhanced

capacities amidst the ongoing Covid-19 pandemic

Increase in leverage levels such that overall gearing, on a consolidated basis, increases beyond

1.50x

Structural changes in the white cement industry impacting the profitability of the company

Detailed description of the key rating drivers

Key Rating Strengths

Experienced promoters, established presence and strong brand image

The promoters of JKCL have extensive experience in the business of cement manufacturing and

marketing. JKCL also has an experienced and qualified management team, which has facilitated the

company’s growth over two decades. The company has a strong presence in the grey cement

segment across the northern, western and southern markets of India, with presence in more than 10

states and has established brands like ‘JK Super Cement’ and ‘JK Super Strong Cement’. Besides, the

company has a pan-India presence in white cement and wall putty, which are sold, respectively,

under brand names, ‘JK White Cement’ and ‘JK Wall Putty’.

Dominant position in white cement industry

JKCL is the second largest white cement manufacturer in India with an installed capacity of 0.6

million tonnes per annum (MTPA). The company also produces wall putty, a value-added product of

white cement, for which it has an overall capacity of 0.9 MTPA as on March 31, 2020. The white

cement segment is characterised by a small industry with significant entry barriers, and

consequently a duopoly structure as of now, which ensures healthy operating margins for the

manufacturers. Besides, consistently strong growth in the white cement and wall putty segments

has created a steady cash flow stream for JKCL and contributed significantly towards its PBILDT over

the years.

Consistent improvement in operating and financial performance

During FY20, the company has reported improvement in financial performance. The consolidated

operating income of JKLC has grown by around 11% on y-o-y basis to Rs.5,887 crore (Rs.5310 crore

in FY19), its PBILDT has increased by around 46% to Rs.1299 crore in FY20 (Rs.890 crore in FY19), and

its PAT has increased by 83% to Rs.483 crore in FY20 (Rs.264 crore in FY19). The improvement in

performance in FY20 is primarily on account of higher sales realizations and reduced input costs.

JKCL’s volume growth in the white cement and wall putty segments continued to be steady at 10%

in FY20. The volumes in the grey cement segment declined by 2% during FY20 owing to Covid-19

pandemic, which affected the operations of the company during last 10 days of March 2020. While

net sales realization for white cement and putty remained at similar level during FY20 over FY19, the

net sales realization in grey cement segment improved by more than 13% during FY20, which has

offset the decline in volumes during the FY20.

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Owing to nation-wide lockdown, the volumes are expected to be lower in Q1 FY21. It may however,

be noted that the company has gradually ramped up its operations on all the plants following partial

lifting of the lockdown. The ramp up in rural areas has been moderate which has resulted in

increased trade volumes for grey cement subsequent to lifting of lockdown. The sales volume of

white cement, however, has declined, with white cement being a high value commodity with

demand primarily in urban areas. Cement demand is closely linked to the overall economic growth,

particularly the housing and infrastructure sector, which has fallen given the lockdown related

restrictions owing to Covid-19 pandemic. Going forward, the ability of the company to sustain or

improve its operational performance amidst the ongoing Covid-19 pandemic, and revive its volumes

and realizations over the rest of the FY21 shall be a key monitorable.

Comfortable financial risk profile and strong liquidity position

JKCL’s financial risk profile improved during the FY19 facilitated by improvements in the capital

structure and debt service coverage ratios. The company raised equity aggregating Rs. 510.79 crore

in the month of Dec 2018 which has strengthened the company’s capital structure. The company’s

interest coverage ratio stood at 3.41x for FY19, which further improved to 4.70x for FY20 on account

of improvement in PBILDT levels. Furthermore, the overall gearing of the company also improved to

1.10x as on March 31, 2020 at the back of healthy profits generation as against 1.12x as on March

31, 2019 , however, drawdown of debt for the ongoing capex would result in some increase in

gearing levels in the next year.

Key Rating Weaknesses

Ongoing capital expenditure though satisfactory progress achieved

JKCL had undertaken a brownfield expansion of 4.2 MTPA for a total estimated expenditure of about

Rs.1,998 crore, which had started in FY18. The expansion comprises of an additional clinker capacity

of about 2.64 MTPA at Mangrol and additional grinding capacity of 1 MTPA each at Nimbahera and

Mangrol. Besides, two new split grinding units of 1.5 MTPA at Aligarh, Uttar Pradesh and 0.7 MTPA

at Balsinor, Gujarat would be added under the planned expansion. The aggregate project cost is

funded in debt equity ratio of 1.86:1. The entire debt has been tied up and drawn to the extent of

Rs. 760 crore as on March 31, 2020. Equity has been infused aggregating Rs. 668 crore as on March

31, 2020 as against the total equity requirement of Rs. 698 crore. The company has incurred

expenses of Rs.1,480 crore till March 31, 2020.

While the company had commissioned the 1 MTPA grey cement grinding unit at Nimbahera and a

2.64 MTPA grey clinker at Mangrol in September 2019, 1 MTPA Cement Grinding Capacity at

Mangrol and 1.5 MTPA at Aligarh has also been commissioned and commercial despatches have

since started from February 2020. The balance 0.7 MTPA grinding unit at Balasinor is at an advanced

stage and likely to be commissioned by FY21.

While a large part of the capex has been completed, the company remains exposed to project risk

for the residual portion of the expansion project, which would be substantially funded through term

debt, resulting in increased gearing ratio during the FY21. The timely completion and stabilization of

operations of the new capacity shall be a key monitorable.

Furthermore, the capacities would come on-stream at a time when the cement industry is impacted

on account of the outbreak of Covid-19 pandemic and the entire industry would grapple with

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volume ramp-up with normalization of the ongoing scenario. However, this is mitigated to a large

extent by the strong brand image enjoyed by the company. Besides, the company expects to

enhance its distribution network during the current period which would enable it to increase its

supply as and when the demand normalizes.

JKCWF’s weak operating performance and financial risk profile

JKCL, under its step-down subsidiary JKCWF, had established a green-field dual process cement plant

in September 2014 at Fujairah, UAE, having installed capacity of 0.6 MTPA of white cement or 1

MTPA of grey cement. JKCWF has reported net loss since the commencement of operations (net loss

of Arab Emirate Dirhams (AED) 38.15 million and AED 37.23 million in CY 19 and CY18 respectively).

The operating levels have remained relatively low due to weak demand in the Gulf countries on

account of subdued construction activity. JKCWF remains dependent on infusion of funds from JKCL

for meeting its debt obligations in near term. Consequently, operational and financial improvement

in performance would remain a crucial rating sensitivity of JKCL.

Exposure to volatility in input costs as well as sales realization prices

While JKCL has fuel supply agreements (FSA) to meet part of the coal requirement, it has a

significant dependence on petroleum coke (sourced from domestic markets) and imported coal,

thereby exposing the company to any adverse volatility in the prices of commodities. Additionally,

the company is meeting part of its fuel requirement through imports, which also exposes it to the

risk of any adverse fluctuation in exchange rates. The ability of the company to manage costs and

improve realizations remains crucial. Besides, realizations and profitability get impacted by demand,

supply, offtake etc., which are inherent risks associated with the cement industry.

Liquidity Position: Strong

The liquidity position of the company continues to be strong with free cash balance (including liquid investments) of around Rs.980 crore as on July 1, 2020. The average utilisation of fund-based working capital limits (including commercial paper) was comfortable at 31.95% for 12 months ending May 31, 2020. The company has principal repayments of around Rs.415 crore in FY21 on a consolidated basis vis-à-vis gross cash accruals of Rs.851 crore in FY20.

The company has not availed moratorium for its debt obligations under the COVID-19 - Regulatory

Package announced by the RBI on March 27, 2020 and May 22, 2020.

Analytical approach:

Consolidated

Applicable Criteria

Criteria on assigning ‘Outlook’ and ‘Credit Watch’ to Credit Ratings CARE’s Policy on Default Recognition Financial Ratios – Non-Financial Sector Rating Methodology – Manufacturing Companies Rating Methodology - Cement Industry Rating Methodology – Short Term Instruments Rating Methodology: Factoring Linkages in Ratings Liquidity Analysis of Non-Financial Sector Entities

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About the Company

JKCL (CIN No: L17229UP1994PLC017199), a part of the JK group (North), was incorporated in

November 1994. JKCL’s installed capacity for grey cement stood at 13.97 MTPA, with facilities

located at Nimbahera, Mangrol and Gotan in Rajasthan (aggregating 7.97 MTPA), Jhajjar in Haryana

(1.50 MTPA capacity including split grinding unit at Jhajjar, commissioned in FY15), Muddarpur in

Karnataka (3.0 MTPA) and Aligarh in Uttar Pradesh (1.50 MTPA). The company’s white cement plant

has a capacity of 0.6 MTPA is located at Gotan and wall putty plant of 0.5 MTPA is located at Gotan

and 0.4 MTPA at Katni, Madhya Pradesh (commissioned on May, 2016 and June 2018).

JKCL, under its step-down subsidiary J.K Cement Works (Fujairah), FZC UAE (JKCWF, rated ‘CARE AA

(SO)’, backed by corporate guarantee from JKCL) , has a dual process cement plant having

interchangeable capacity of 0.6 mtpa of white cement or 1 mtpa of grey cement.

Financial Performance (Rs. crore)

Particulars 2018 2019 2020

(12m, A) (12m, A) (12m, A)

Working Results

Total Operating income 4887.65 5310.19 5886.96

PBILDT 830.43 890.10 1298.77

Interest 284.09 261.12 276.36

Depreciation 231.32 241.28 287.96

PBT 383.22 412.43 734.45

PAT (after deferred tax) 285.59 263.63 483.39

Gross Cash Accruals 520.40 549.97 851.17

Financial Position

Equity Capital 69.93 77.27 77.27

Net Worth 1952.74 2665.59 3007.42

Total capital employed 5182.39 5990.31 NA

Key Ratios

Growth

Growth in Total income (%) 20.07 8.60 10.86

Growth in PAT (after D.Tax) (%) 66.07 -7.69 83.36

Profitability

PBILDT/Total Op. income (%) 16.99 16.76 22.06

PAT (after deferred tax)/ Total income (%) 5.84 4.96 8.21

ROCE (%) 13.09 12.06 NA

Solvency

Long Term Debt Equity ratio(times) 1.43 1.03 NA

Overall gearing ratio(times) 1.51 1.12 1.10

Interest coverage(times) 2.92 3.41 4.70

Term debt/Gross cash accruals(years) 5.35 4.97 NA

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Liquidity

Current ratio(times) 1.25 1.15 NA

Quick ratio(times) 0.83 0.78 NA

Turnover

Average collection period (days) 16 17 NA

Average creditors (days) 38 61 NA

Average inventory (days) 81 78 NA

Operating cycle (days) 58 34 NA

A: Audited NA: Not Available

Covenants of rated instrument/facility: Detailed explanation of the rated instruments/ facilities is given in Annexure-4 Status of non-cooperation with previous CRA: Not Applicable Any other information: Not Applicable Rating History for last three years: Please refer Annexure-2 Note on complexity levels of the rated instrument: CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com. Investors/market intermediaries/regulators or others are welcome to write to care@careratings.com for any clarifications.

Contact us

Media Contact

Mradul Mishra

Contact no. – +91-22-6837 4424

Email ID – mradul.mishra@careratings.com

Analyst Contact:

Name: Ms. Jasmeen Kaur

Tel: 011-45333245

Mobile: 9810401324

Email: jasmeen.kaur@careratings.com

About CARE Ratings: CARE Ratings commenced operations in April 1993 and over two decades, it has established itself as one of the leading credit rating agencies in India. CARE is registered with the Securities and Exchange Board of India (SEBI) and also recognized as an External Credit Assessment Institution (ECAI) by the Reserve Bank of India (RBI). CARE Ratings is proud of its rightful place in the Indian capital market built around investor confidence. CARE Ratings provides the entire spectrum of credit rating that helps the corporates to raise capital for their various requirements and assists the investors to form an informed investment decision based on the credit risk and their own risk-return expectations. Our rating and grading service offerings leverage our domain and analytical expertise backed by the methodologies congruent with the international best practices.

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Disclaimer

CARE’s ratings are opinions on the likelihood of timely payment of the obligations under the rated instrument and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE’s ratings do not convey suitability or price for the investor. CARE’s ratings do not constitute an audit on the rated entity. CARE has based its ratings/outlooks on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments. CARE or its subsidiaries/associates may also have other commercial transactions with the entity. In case of partnership/proprietary concerns, the rating /outlook assigned by CARE is, inter-alia, based on the capital deployed by the partners/proprietor and the financial strength of the firm at present. The rating/outlook may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners/proprietor in addition to the financial performance and other relevant factors. CARE is not responsible for any errors and states that it has no financial liability whatsoever to the users of CARE’s rating. Our ratings do not factor in any rating related trigger clauses as per the terms of the facility/instrument, which may involve acceleration of payments in case of rating downgrades. However, if any such clauses are introduced and if triggered, the ratings may see volatility and sharp downgrades.

Annexure-1: Details of Instruments/Facilities

Name of the Instrument

Date of Issuance

ISIN Coupon Rate

Maturity Date

Size of the Issue

(Rs. crore)

Rating assigned along with Rating

Outlook

Proposed Debentures-Non Convertible Debentures

NA NA NA NA 250.00 CARE AA; Stable

Annexure-2: Rating History of last three years

Sr. No.

Name of the Instrument/Bank

Facilities

Current Ratings Rating history

Type

Amount Outstanding (Rs. crore)

Rating

Date(s) & Rating(s)

assigned in 2020-2021

Date(s) & Rating(s)

assigned in 2019-2020

Date(s) & Rating(s)

assigned in 2018-2019

Date(s) & Rating(s)

assigned in 2017-2018

1. Fund-based - LT-Cash Credit

LT 375.00 CARE AA; Stable

- CARE AA; Stable (16-Dec-19)

1)CARE AA; Stable (08-Oct-18)

1)CARE AA; Stable (14-Sep-17)

2. Commercial Paper ST 150.00 CARE A1+

- CARE A1+ (16-Dec-19)

1)CARE A1+ (08-Oct-18)

1)CARE A1+ (14-Sep-17)

3. Non-fund-based - ST-BG/LC

ST 350.00 CARE A1+

- CARE A1+ (16-Dec-19)

1)CARE A1+ (08-Oct-18)

1)CARE A1+ (14-Sep-17)

4. Debentures-Non Convertible Debentures

LT 31.50 CARE AA; Stable

- CARE AA; Stable (16-Dec-19)

1)CARE AA; Stable (08-Oct-18)

1)CARE AA; Stable (14-Sep-17)

5. Debentures-Non LT 69.00 CARE AA; - CARE AA; 1)CARE AA; 1)CARE AA;

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Convertible Debentures

Stable

Stable (16-Dec-19)

Stable (08-Oct-18)

Stable (14-Sep-17)

6. Term Loan-Long Term

LT 2811.68 CARE AA; Stable

- CARE AA; Stable (16-Dec-19)

1)CARE AA; Stable (08-Oct-18)

1)CARE AA; Stable (14-Sep-17)

7. Debentures-Non Convertible Debentures

LT 51.00 CARE AA; Stable

- CARE AA; Stable (16-Dec-19)

1)CARE AA; Stable (08-Oct-18)

1)CARE AA; Stable (14-Sep-17)

8. Debentures-Non Convertible Debentures

LT 200.00 CARE AA; Stable

- CARE AA; Stable (16-Dec-19)

1)CARE AA; Stable (08-Oct-18)

1)CARE AA; Stable (14-Sep-17)

9. Debentures-Non Convertible Debentures

LT 100.00 CARE AA; Stable

- CARE AA; Stable (16-Dec-19)

1)CARE AA; Stable (08-Oct-18)

1)CARE AA; Stable (14-Sep-17)

10. Debentures-Non Convertible Debentures

LT - - - - 1)Withdrawn (08-Oct-18)

1)CARE AA; Stable (14-Sep-17)

11. Debentures-Non Convertible Debentures

LT 250.00 CARE AA; Stable

CARE AA; Stable (June

12, 2020)

- - -

Annexure-3: Details of Rated Facilities: Not applicable as the rating is with respect to proposed Non-

Convertible Debentures

Annexure-4: Detailed explanation of covenants of the rated instrument / facilities: NA

(This follows our press release for entity published on July 9, 2020)

EXTRACT OF THE MINUTES OF THE MEETING OF THE BOARD OF DIRECTORS (NO.4 OF 2020) OF J.K.CEMENT LIMITED HELD ON 17TH JUNE, 2020 IN WHICH PROPER QUORUM WAS PRESENT.

PRIVATE PLACEMENT OF NON CONVERTIBLE DEBENTURES UPTO RS. 250 CRORES

The President (C/A) & CFO informed the Directors that the Company the Company has taken up the project of increase in clinker capacity at its Nimbahera Line-3 plant from existing 5000 tpd. to 6500 tpd. by harnessing the inherent potential and through carrying out modification / additions. The Project Cost is estimated to be Rs. 405 Crores as per the Report prepared by M/s Holtec Consulting Pvt Ltd. The Company proposes to raise Redeemable, Secured, Listed, Non-Convertible and Taxable Debentures (NCDs) to be utilized for part financing the aforesaid capital expenditure already incurred (through reimbursement) and to be incurred. Actual end use may slightly vary depending upon the end use allowed by the subscriber

The NCDs are proposed to be repaid in installments with door to door maturity of approximately 4 years. The NCDs are proposed to be secured by pari-passu first charge on the Fixed Assets related to the Company’s Grey Cement plants (excluding mining land and vehicles) at Nimbahera and Mangrol Line 1 with Security Cover of minimum 1.25.

The aforesaid security shall rank pari-passu among all the Lenders, if any participating in the Facility. Actual end use, repayment schedule etc. may slightly vary depending upon the end use allowed by the subscriber

The Directors discussed, raised certain queries which were answered appropriately. Thereafter following resolution was passed unanimously:-

“RESOLVED THAT pursuant to the provisions of the Memorandum and Articles of Association of the Company and subject to approval of the shareholders of the Company and the provisions of Section 179 and all other applicable provisions of the Companies Act, 2013, read with Companies (Prospectus and Allotment of Securities) Rules, 2014 and Companies (Share Capital and Debentures) Rules, 2014 (including any statutory modification or re-enactment thereof for the time being in force) and other applicable laws, the Board of Directors of the Company be and is hereby grant its approval to raise up to Rs. 250 Crores (Rupees Two Hundred Fifty Crores only) by way of issuance of Non-convertible Debentures (“NCDs”) or through any other similar borrowing instrument (“Borrowing Instruments”) in one or more tranches / issuances, whether listed or not and whether secured or not.”

- : 2 : -

“RESOLVED FURTHER THAT the Committee of Directors of Board of Directors of the Company which was constituted vide Board Resolution dated 27.10.2004 be and is hereby authorised to negotiate, and finalise the terms and conditions in connection with the offer and/or issue of the NCDs and /or any Borrowing Instruments, in one or more tranches / issuances up to Rs. 250 Crores (Rupees Two Hundred Fifty Crores only), to foreign portfolio investors, companies and bodies corporate including public sector undertakings, scheduled commercial banks, financial institutions, provident funds, pension funds, gratuity funds, non banking financial companies and mutual funds, Insurance companies, foreign institutional investors, individuals and any other investor approved by the Committee of Directors of the Board.” “RESOLVED FURTHER THAT for the purpose of offering, issuing and allotting the NCDs and/or Borrowing Instruments, the Committee of Directors of Board of Directors of the Company be and is hereby authorised to take all such decisions as it may deem fit in its absolute discretion, to take all steps and to perform all such acts, deeds, matters and things as it may deem necessary to complete above process and with power to settle questions, difficulties or doubts that may arise in this regard, without requiring any further approval of the Board of Directors of the Company.”

“RESOLVED FURTHER THAT without restricting authority and/or powers delegated by the Board of Directors hereinabove, for the issuance of NCDs, the Committee of Directors of Board of Directors of the Company be and is hereby also authorised to:

1. offer and allot the NCDs on private placement as it may deem fit and appropriate in the interest of the Company;

2. to decide / confirm / ratify / amend / modify the terms and conditions and number of the NCDs to be issued, timing, nature, type, pricing and such other terms and conditions of the issue including coupon rate, minimum subscription, listing, security, if any, etc. and to issue and allot the NCDs;

3. to do all such acts, deeds, matters and things including execution of all such deeds, documents, instruments, applications and writings as it may, at its discretion, deem necessary and desirable for such purpose, and to vary, modify or alter any of the terms and conditions;

4. to accept and receive subscription / application money, to appropriate the proceeds of the issue for the aforesaid purpose and to make allotment of the NCDs and to authorize maintenance of register of debenture holders, register of charges or any other statutory register as may be required;

- : 3 : -

5. to finalize details of security(s) to be provided and matters incidental to or connected therewith and incur any expenditure in relation to the creation of such security;

6. to open relevant bank account(s), if required and authorize officials of the Company to operate the same where ever necessary;

7. to apply to and liaise with National Security Depository Limited and/or Central Depository Services (India) Limited for the issuance of letter(s) of allotment / NCDs to the proposed allottees in dematerialized form;

8. to appoint, modify or change the debenture trustee(s), consultants, legal counsels, advisors, rating agency(ies), inter-mediatory, other agencies on such terms and condition and be paid fees / reimbursement, from time to time; and

9. to seek, if required, the consent of the Company’s lenders, and other third parties with whom the Company has entered into various commercial and other agreements, all concerned government and regulatory authorities and any other consents that may be required in connection with the issuance of NCDs and creation of security for the NCDs.”

“RESOLVED FURTHER THAT Shri A.K. Saraogi, President (C/A) & CFO, Shri Atul Bagla, Vice President, Mr. Prashant Seth, Vice President, Shri Shambhu Singh, Asst. Vice President (Legal) & Company Secretary be and are hereby authorised individually to approve the terms of the private placement offer letter/Form PAS-4/Information Memorandum in relation to the NCDs, the debenture trust deed and other transaction documents including their execution and despatch, and to perform all such acts, deeds, matters and things as may be required to give effect of this resolution, including affixing the Common Seal of the Company to such documents, deeds, evidences, writings and undertakings and/or other related papers executed in furtherance of the aforesaid resolutions, wherever necessary and if applicable in the presence of any of the authorised signatories, who shall sign the same in token thereof.”

Date: June 30, 2020

J. K. Cement Limited

Kamla Tower, Kanpur,

Uttar Pradesh 208 001

Dear Sirs,

Re: Proposed issue by J. K. Cement Limited (“the Company”) of secured, redeemable, non-convertible Debentures (“NCDs”) of upto ₹ 250 crore (“Issue”) on private placement basis

We hereby give our consent to our name being included as the Registrar to the Issue in the Disclosure

Document/Information Memorandum to be filed/uploaded on the stock exchange(s) where the NCDs are proposed to be

listed (“Stock Exchange(s)”) and subsequent periodical communications sent to the holders of the NCDs pursuant to the

Issue.

We hereby authorise you to deliver this letter of consent to the Stock Exchange(s) and/or such other regulatory authority,

as may be required by law.

The following details with respect to us may be disclosed:

Name: NSDL Database Management Limited

Address: 4th Floor, Trade World A Wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel,

Mumbai – 400 013

Tel: 022-49142591

Fax: 022- 49142503

Email: nileshb@nsdl.co.in;

Investor Grievance Email Id: relations.rta@nsdl.co.in

Website: www.nsdl.co.in

Contact Person: Nilesh Bhandare

SEBI Registration No: INR000004181

We confirm that we are registered with the SEBI and that such registration is valid as on date of this letter. We further

certify that we have not been prohibited by SEBI to act as an intermediary in capital market issues. We further confirm

that no enquiry/investigation is being conducted by SEBI on us. We further confirm that we are not an associate/deemed

associate of the Company.

We also agree to keep strictly confidential, until such time as the proposed transaction is publicly announced by the Issuer

in the form of a press release, (i) the nature and scope of this respect; and (ii) our knowledge of the proposed transaction

of the Issuer.

Copy of our SEBI registration certificate and declaration regarding our registration with SEBI in the required format is

attached as Annexure A.

We shall immediately intimate the Arrangers and the Company or any other concerned party(ies) of any changes, additions

or deletions in respect of the afore stated details till the date when the NCDs of the Issuer offered, issued and allotted

pursuant to the Issue, are traded on the Stock Exchange(s). In absence of any such communication from us, the above

information should be taken as updated information until the listing and trading of the NCDs on the Stock Exchange(s).

Yours faithfully,

For NSDL Database Management Limited

Vijay Gupta

Sr. Vice President

Annexure A

We hereby confirm that as on date the following details in relation to our registration with the Securities and Exchange

Board of India as a “Registrar” is true and correct:

Sr. No.

Details Confirmation

1. Registration Number INR000004181

2. Date of registration / date of last renewal of registration / date of application for renewal of registration

May 17, 2016

3. Date of expiry of registration May 16, 2021

4. Details of any communication from SEBI prohibiting from acting as an intermediary

-

5. Details of any pending inquiry / investigation being conducted by SEBI

-

6. Details of any penalty imposed by SEBI -