JK AReport 2019 20 Final

Forward-looking statement
In this Annual Report, we have disclosed forward-looking information

to enable investors to comprehend our prospects and take informed
investment decisions. This report and other statements - written and oral -
that we periodically make, contain forward-looking statements that set out
anticipated results based on the management’s plans and assumptions.
We have tried wherever possible to identify such statements by using
words such as ‘anticipates’, ‘estimates’, ‘expects’, ‘projects’, ‘intends’, ‘plans’,
‘believes’ and words of similar substance in connection with any
discussion of future performance. We cannot guarantee that these
forward-looking statements will be realised, although we believe we
have been prudent in our assumptions. The achievement of results is
subject to risks, uncertainties and even inaccurate assumptions.
Should known or unknown risks or uncertainties materialise, or
should underlying assumptions prove inaccurate, actual results could
vary materially from those anticipated, estimated or projected. Readers
should bear this in mind. We undertake no obligation to publicly update
any forward-looking statements, whether as a result of new information,
future events or otherwise.
This year our Annual Report theme is 'Sustainability which is part

of our DNA'
Contents
Corporate Information 01
Chairman’s Statement 02
Vice Chairman and Managing Director’s Statement 03
Corporate Snapshot 06
Financial Highlights 09
Sustainable Framework 10
Finance Review 16
Procurement Review 20
Manufacturing Review 23
Customer Capital 27
Human Capital 32
Environment Review 35
Corporate Social Responsibility Review 38
Our Integrated Value-Creation Report 44
Management Discussion and Analysis 47
Board's Report 56
Sustainability & Business Responsibility Report 77
Corporate Governance Report 86
Standalone Financial Statement 101
Consolidated Financial Statement 151
JKPM: JK Paper Mills

CPM: Central Pulp Mills
SPM: Sirpur Paper Mills
Corporate information
Board of Directors Offices
Bharat Hari Singhania Registered Office
P.O. Central Pulp Mills - 394 660
Chairman
Fort Songadh
Distt. Tapi (Gujarat)
Harsh Pati Singhania
Vice Chairman & Managing Director Administrative Office
Nehru House,
Arun Bharat Ram 4, Bahadur Shah Zafar Marg
Deepa Gopalan Wadhwa New Delhi - 110 002
Dhirendra Kumar
M.H. Dalmia
R.V. Kanoria Bankers
State Bank of India
Sandip Somany Axis Bank
Shailendra IDBI Bank
Swarup Indusind Bank
Bank of Bahrain and Kuwait
S.K. Roongta
Udayan Bose
Vinita Singhania
A.S. Mehta Company Website
President & Director www.jkpaper.com
Plants
JK Paper Mills (Unit JKPM) Auditors
Jaykaypur - 765 017 Lodha & Co.
Rayagada (Odisha) Chartered Accountants
Central Pulp Mills (Unit CPM)

P. O. Central Pulp Mills - 394
660 Fort Songadh Suresh Chander Gupta
Distt. Tapi (Gujarat) Vice President & Company Secretary
Chairman’s IMF calls it the Great Lockdown, akin to the
Great Depression, where most countries
will mainly be in the packaging board
segment, while maintaining the focus on
statement came to a standstill. In its April 2020

release, IMF estimated the global GDP
other segments too, particularly where we
enjoy a leadership position in the market.
growth to fall to 2.9% in 2019, a 70 bps
JK Paper is equally committed to the
de-growth y-o-y. In almost 170
people and the community. We have
countries, people are likely to face a
formed about 170 self-help groups, with
decline in average income over the
~1,900 members helping create demand
previous year as well.
for various agro-based programmes,
The complete lockdown in India is one facilitating MUDRA loans, etc. Through our
of the most stringent, for ~70 days, adult literacy program, we have provided
where almost two-thirds of all free education to 15,000 tribals, mainly
economic women.
activity came to a grinding halt. While the
Our focus on agro forestry has not only
advanced countries are set to experience
been an important step in securitising
prolonged pains, India is expected to be
our raw material requirement and
one of the few bright spots in the world
greening mother earth, but also provided
economy, sustaining positive growth at
farmers an additional source of income,
4.2% for 2019-20.
which, in a time of a crisis, becomes a
Unfortunately, the COVID-19 pandemic crucial safety net for them. Our plantation
arrived at a time when the Indian coverage cumulatively reached 1.73 lac
The year 2020 ushered in a positive
economy wasoutlook for thea worldhectares.
already experiencing economy with growth pegged at 3
in US-China trade war and positive Brexit negotiations. But
growth slowdown, as reflected in lower that prevails
Uncertainty was overbefore the corona virus
the containment
discretionary spending over the last 12
collapse of the global economy.
months, particularly in automobiles,
of COVID-19 and thereby the global
economic recovery. To ensure that
consumer durables and high-end FMCG
the economic engine starts moving,
products.
governments across the world are
Despite these bottlenecks, the paper providing fiscal stimulus of varying
industry has been growing at a healthy magnitude. This is important as the
rate of around 6%. Overall sales at JK end consumers should be provided an
Paper have been growing at a CAGR of adequate safety net to revive demand. That
5-6%. Growth has been quite robust in the would determine whether the projected
coated paper segment, which showed an V-shaped recovery, where India's GDP
uptick of over 14% last year. growth is expected to recover, will
happen or not.
Your company had achieved a multifold
jump in gross sales revenue in the last In last year's message I had conveyed
decade. It is not only the market leader in that past patterns cannot always be
the copier segment, where it accounts for applied to find answers for tomorrow,
a quarter of the market, but also among for which we have to be flexible in our
the top producers of coated paper and approach.
packaging board. This is all the more relevant in the current
situation when everything is uncertain
At a time when the manufacturing
and volatile. With your continued support,
sector in India is faced with significant
we will overcome this challenge by
spare capacity, with overall capacity
better understanding and clarity of our
utilisation falling to ~68% in the
vision.
December quarter, both JKPM and CPM
have been running at full capacity. This
augurs well for our planned expansion,
where we
are targeting to reach 8 lac tonnes per
annum (TPA) by March 2021. The impetus
02 | JK Paper
Bharat Hari Singhania
Annual Report 2019-20 |

Vice This was exacerbated by the surge in
TPA (including capacity of The Sirpur Paper
Chairman cheaper imports, not only from our FTA

partners, but also crucially from China.
and
Although the Government decided to opt
out of the RCEP, the threat of imports routed
through third-country remains. To address
Managing the growth slowdown, the government also

undertook significant tax reforms, where the
Director's corporate tax rate was cut down to 25% for

all companies, with lower rates of 15% for
statement
new manufacturing units to incentivise firms
away from China and set up shop in India.
RBI on its part also lent a helping hand
through 'significant' monetary easing where
policy rates were cut by a whopping 135
bps. This has continued after the COVID-19
outbreak, with policy rates now pegged at
4.15%.
Besides, other monetary measures have
infused about 4% of GDP into the system. It
is another matter that banks have transmitted
only a small part of the rate cuts, with most
remaining risk-averse and quite content to
park the excess funds back with the RBI.
In such a scenario, JK Paper was able to
maintain its leadership in the market, where
The global economy that was taking
it achieved a strongthe first
EBITDA tentative
despite a fall in steps to a growth revival following
The Indian economy too was going through a slowdown even
selling prices. This was achieved through before the present crisis, w
a combination of lower input costs, high
operational efficiencies and lower finance
costs through deleveraging.
Owing to our extensive plantation
activities since the last 5-7 years, our wood
procurement is now totally from areas closer
to our mills. This has led to a steady reduction
in material costs.
Your Company achieved the best energy
efficiency parameters in the industry
during the year; power consumption has
been reduced further with low fresh water
consumption per tonne of paper. In fact,
we are the best in the paper industry to
use treated sewage water in our process.
Furthermore, JK Paper is also a pioneer in
burning secondary sludge in the recovery
boilers.
JK Paper's focused deleveraging had led to
a significant reduction in finance costs,
despite overall interest rates remaining high
(due to lower transmission of RBI's policy rate
cuts). Your Company's net debt had come
down by over 50% in the last 5 years,
resulting in a net debt-equity ratio of 0.4x in
2019-20 from over 2x in 2015. Our interest
coverage ratio has improved 6 times over
this period.
To take advantage of the growth momentum
witnessed in the country’s paper sector,
JK Paper is working towards increasing its
production capacity from 4.5 lac TPA to 8 lac
02 | JK Paper
indicators point towards a severity similar to
Mills Limited) by next year. This the great depression that engulfed the
capacity augmentation is aimed world economy almost a century ago.
at significantly expanding our However, the recovery, which is expected to
packaging board capacity to take hold in the second half of the year, is
take up growth opportunities on likely to be swift. Your Company remains
offer, with the proliferation of committed to put its best efforts to ensure
e-commerce, digital initiatives its return to the growth path soon.
and growth upsurge in the
pharmaceuticals sector.
Despite the setback from the
COVID-19 triggered lockdown, it
is progressing as per schedule,
although support from banks and
financial institutions would be
critical for us to adhere to
timelines. Sirpur Paper Mills, with
a capacity of about 1.4 lac TPA,
which we acquired through the
IBC route, commenced
production. We have undertaken
significant refurbishments at the
plant in the last year and
achieved up to 70% of the
operative capacity.
Your Company is also
continuously focusing on value-
added products. These are
based on emerging market
trends, especially the higher
demand for packaging paper
with the increased emphasis on
e-commerce, retail, pharma,
digital payment systems,
etc. Some specific new products
that were well accepted in the
market are JK Carry for paper
carry bags, JK Ecosip for paper
straw, JK Pharma print and JK
Devine Print for pharma industry
and JK DiGi Roll as Receipt/invoice
print paper for POS machines.
To enable our product reach to
more geographies and markets,
our strong distribution network of
over 4,000 dealers and over 300
trade partners play a significant
role.
The global economy is
currently going through a
period of heightened
uncertainty - a VUCA (volatility,
uncertainty, complexity and
ambiguity) world, with
no real breakthrough in sight
over the containment of the
virus. This obviously will have
repercussions on consumer
demand and overall growth.
Already the projected growth
decline for this year is far worse
than we witnessed in recent
times, including
the financial crisis of 2008. Early

Sustainabilit
y in our DNA
At JK Paper, every initiative that we undertake is marked
by two over-riding priorities.
One, can we make it better?
Two, can we make it sustainable?
The result is that sustainability is not just an after-thought.
It is embedded into our DNA.
04 | JK Paper
JK Paper Limited.
One of the most respected paper companies in India today.
Respected for competitive and sustainable operations.
For a wide range of products providing a one-stop
solution. For investing in world-class technologies.
For reinforcing its resource security.
Reinforcing its positioning as one of India’s most sustainable paper companies.
Products
The Company’s diversified product portfolio comprises office paper, w
Ethical pedigree achieving growth and leadership through:
Vision JK brand equity Customer obsession Technological
innovation
To be a dynamic benchmark and leader in the Indian paper industry
Cost-competitiveness Environmental and
Mission social care
To be a world-class company, creating shareholder value by
Position Leadership
The Company
JK Paper enjoys a rich experience of ~six decades, which has enabled is spearheaded
it to emerge by biggest
as one of the an eminent Board ofpaper
wood-based Directors comprisi
companies in
Manufacturing facilities
The Company comprises state-of-the-art integrated manufacturing facilities in three locations, helping moderate logistics cost, delive
JK Paper Mills in Rayagada, Odisha, with an installed capacity of 2,95,000 TPA Central Pulp Mills in Songadh, Gujarat, with an installed c
Sirpur Paper Mills in Kagaznagar, Telangana (owned through its subsidiary), with an installed capacity of 1,36,000 TPA
06 | JK Paper
Brands Certifications
The Company offers a plethora of established
The Company
brands – is accredited with ISO 45001, ISO 9001 and ISO
JK Copier, JK Easy Copier, JK Sparke, JK 14001
Cedar,certification,
JK Max validating JK Paper’s compliance with stringent quality management nor
JK Excel Bond, JK SS Maplitho (SHB), JK Cote,
JK Paper’s
JK Ultima
health
and
& JK
safety
Endure,
policies
among
andothers,
sustainable
helping
wood
theprocurement
Company strengthen
policies. its brand reca
Group pedigree
The JK Group enjoys an industrial and business legac
multi-vertical presence across the paper, automotiv
research sectors. JK Paper forms a part of this illust
The Company embarked on its journey in 1962, whe
Employees Footprint
JK Paper is one of the biggest and renowned
The employers
Company leveraged
in India’s its
organised
robust distribution
paper industry,
network
and to
hasservice
been recognised
a pan-Indian
as customer
'India's Best
pres
W
Listing
The Company is listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The Company ranked amongst the top

Milestones
1962 1992 2005
Installed the Acquired Unit – Commissioned
first fine paper CPM (Gujarat). a coating plant
machine at Unit – at Unit – JKPM
JKPM (Odisha). (Odisha).
2007 2013 2018

Commissioned Commissioned a Acquired Sirpur
a premium state-of-the-art Paper Mills in
packaging board new fibre line Telangana with a
plant at Unit – and high-speed capacity of
CPM (Gujarat). paper 1,36,000 metric
manufacturing tonnes per annum.
machine at Unit –
JKPM (Odisha) with a
capacity of 1,65,000
tonnes per annum.
2019
JKPL was certified as a Great Place to Work and the Unit CPM
of the Company was awarded the
Dr. B.L. Bihani, the Memorial Award for Best Paper (National)
at PaperEx 2019.
08 | JK Paper
How we have financially
grown over the years
(in H crores) (in %) (in %)
2989 3,070 3,469 3,254 19.5 22.2 28.4 32.2
11.1 14.9 20.6 21.97
FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20
Revenues EBITDA margin RoCE
Aggregate sales increased by 8.9% to The Company reported a 380 bps The Company made a prudent
H3,254 crores in 2019-20 over 2016-17. increase in EBIDTA margin in 2019- investment in profitable product
20 through a superior product niches and value-added products,
basket comprising value-added strengthening returns for shareholders
products and improved operating
efficiency.
(in x) (in x) (in H crores)

1.08 0.64 0.34 0.40 2.87 4.47 7.57 8.02
1,322 1,646 2,041 2,368
FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20
Net Debt-equity ratio Interest cover Net worth
The Company’s gearing moderated The Company’s declining debt and The Company’s rising surplus was
from 1.08 in 2016-17 to 0.40 in 2019- rising profits translated into a stronger reflected in a stronger net worth,
20 as the Company utilised surpluses interest cover, indicating superior indicating a larger proportion of
to repay debt. liquidity. Shareholder's Capital being employed
in the business.
08 | JK Paper
The sustainable
framework of our business
10 | JK Paper
Overview
Over the past few years, companies
United Nations’ sustainability
have been increasingly recognising
principles
the importance of synergies between The United Nations has outlined 10
the principles for responsible manufacturing
various competencies of business, namely leading to environmental sustainability
manufacturing, financial, procurement, across Human Rights, Labour, Environment
distribution, environment and community- and Anti-corruption.
building. Across the years, JK Paper invested in
This has been born out of an sustainable initiatives to reinforce its
understanding that a one-off profitable year respect as responsible corporate citizen.
needs The Company’s operating policy integrates
to be replaced by multi-year business business arms and practices with the
profitability; the operative word is no longer objective to optimise resource utilisation
profitability, but sustainability. while reducing waste disposal and logistics
cost, strengthening financials, moderating
At JK Paper, we believe that multi-year
debt and enhancing business
business sustainability is derived from
sustainability.
prudent investments in all business aspects,
the balancing of these initiatives with At JK Paper, we believe that sustainability
the objective to generate a consolidated is important on account of rising
growth outlook. temperatures, increasing awareness of
environment protection a stronger media
In this evolving business climate, the
watchdog of transgressions and a lower
need to produce as much is balanced by
transgression tolerance.
the need to conserve finite resources; the
need to report financial outperformance Over the years, JK Paper has made proactive
is balanced by the need to do so within investments in strategic sustainable
prudential norms. initiatives, controls against process
deviations, targeted outcomes, capacity
JK Paper’s sustainable development is
building, relevant training to all employees
directed to address the needs of today
and constant monitoring of sustainability
without compromising the ability of
performance. The result: at JK Paper, our
succeeding generations to meet theirs.
overarching commitment to sustainability
has extended from mere regulatory
compliance to forward-looking practices,
strengthening business viability, liquidity
and competitiveness.

Our sustainability framework
Environmental integrity
Reduce the consumption of finite
natural resources
Protect the region’s environment
balance
Enhance environmental
consciousness in every initiative
Community support
Provide livelihood support in the
regions of presence
Provide holistic multi-genre
community support
Focus on integrated development
Procurement economies
Procure closest
Procure most economically
Procure sustainably
Manufacturing
excellence
Maximise asset utilisation
Maximise manufacturing
economies
Enhance quality consistency
12 | JK Paper
Financial structure
Moderate debt and finance cost
Extend average maturities
Strengthen credit rating
People competence
Maximise human productivity
Deepen the culture of passion and
outperformance
Strengthen the kaizen momentum
Distribution network
Make available products where
consumers are
Strengthen engagements with
primary customers (distributors)
Capture every demand upturn –
wherever
Brand and
customer capital
Widen the product portfolio
Maximise value-addition
and realisations
Service customers with
products they need,
ensuring top-of-the-mind
brand recall

The outcomes of our
sustainability focus
Overall impact Environment integrity
24
JK Paper a % reduction in water
JK Paper is a carbon- Strengthened RoCE consumption per tonne of paper since 2016-17
wood- postive positive company every year since
company since 2015-16
2013-14
Procurement economies
7
77 5 % reduction in coal
consumption per tonne of paper since 2016-17
% of wood procured Number of years of
from within 200 increasing
km radius wood procurement from within 200 km
Manufacturing excellence 100

(MT) wood
productivity per Ha, 2019-20
5.98 7.11
(bps) decline in % decline in raw
manufacturing costs as % of revenues
material
since
cost2015-16
as a of revenues since 2015-16
65
(MT) wood
Financial structure productivity per Ha, in 2015-16
27.6 210
% decline in debt
since 2015-16 (bps) decline in debt
cost since 2015-16
14 | JK Paper
People competence
The principal measures of our business sustain
21 92
% increase in output
per person since 2016-17 % people retention
per year
Revenues
2,8813,254
H crores, revenues, H crores, revenues, 2015-162019-20
Distribution network Profitability
7.621.97
Return onReturn on Capital
40 70+ CapitalEmployed %,
Employed %,2019-20
% increase in new trade partners 2015-16
distributors added to increase the distribution reach
Net debt
2035957
H crores, debt on H crores, debt on our books, 31our books, 31
Brand and customer capital March 2015March 2020
Market capitalisation
42 ~24 4321329
H crores, marketH crores, market capitalisation,capitalisation,
% increase in % leading market
product portfolio since 2015-16
share in the branded copier segment
Community support
6x
increase in CSR
spending since 2015-16
43,000+
households by our
CSR effort

How JK Paper is enhancing
financial value
Overview providers as well as from within the

In the capital-intensive business of business (through accruals and reduced
paper manufacturing, the two capital appetite) have reinforced the
principal raw materials are wood and foundation of multi-year sustainability.
funds. A
This increased financial comfort has been
complement of both makes it possible
secured by efficient operations translating
for companies to outperform in the long
into superior margins, debt drawdown,
run, making it possible to absorb cyclical
superior credit rating, lower cost of debt,
and unforeseen shocks.
declining receivables and an increased
At JK Paper, the increased availability surplus translating into a virtuous financial
of funds from external capital and debt cycle.
16 | JK Paper
Strengths
Credit rating Gearing Debt cost Debt tenure
The Company’s credit rating The Company’s gearing The Company’s average The Company’s average
at AA- is among the best at 0.40 as on 31 March debt cost of 8.3% makes long-term debt repayment
in India’s paper industry, 2020 provides adequate it possible to grow the tenure provides adequate
making it possible to attract repayment and servicing business by generating a repayment comfort and
debt at competitive costs. comfort on the one hand superior return. a positive asset-liability
and room to borrow at mismatch between project
attractively low costs on the payback and the repayment
other. tenure.
Treasury income Working capital Cost management Receivables cycle

The Company possessed a efficiency The Company invested The Company manufactured
cash and cash equivalent The Company strengthened in various projects with a superior product quality
corpus of H412.86 crores as its inventory management clarity on financial payback; that translated into a
on 31st March 2020 that and terms of trade with the result was that total distinctive consumer pull.
made it possible to generate distribution partners to costs (ex-interest and tax) The result was that primary
an attractive financial return moderate the working declined as a percentage customers were willing to
to lubricate liquidity. capital load on its business, of revenues in the last few pay upfront or in shorter
ensuring one of the highest years to one of the lowest receivables cycles as their
working capital efficiencies levels in India’s wood-based products moved faster,
in India’s paper sector. paper sector. making the business win-
win for the Company, trade
partners and consumers.
Economies of scale Capital cost per tonne Fit for purpose

The Company invested in The Company focused on – through a combination of The Company strengthened
each of its manufacturing generating a low capital prudent negotiation at the the alignment between
facilities around the cost per tonne, one of time of capital spending different business segments
prevailing economies of the most critical drivers of and technological insights resulting in a near business
scale, which translated into a long-term competitiveness fit – the cultivation of
relatively low manufacturing specific clonal saplings
cost per tonne, a substantial that helped grow trees
platform on which to grow customised for the paper
the business. industry resulting in a lower
consumption of chemicals.

Highlights, 2019-20
The Company reported superior
financials in a challenging year for the
Indian economy: profitable growth where
PAT growth in percentage terms was
higher than revenue growth; the Company
higher margins and lower debt,
strengthening business sustainability.
The Company announced its 1.7 lac TPA
paper board expansion project at Unit CPM
for about H1,900 crores (net of GST); capital
cost per tonne was around H15,000 lower
than the prevailing benchmarks on account
of the Company’s decision to repurpose
an existing pulp mill and use existing
infrastructure, strengthening business
sustainability
Outlook
The lockdown induced by the pandemic
affected the Company’s performance in
the first quarter of the current financial year.
The prevailing outlook appears hazy related
to consumer demand, with commercial
offices and schools remaining closed during
the lockdown. Even as the sales outlook
appears hazy, the Company possesses one
of the strongest Balance Sheets in the
sector
– declining debt, lower cost and longer
repayment moratoriums.
The expansion Expansion: Proposed packaging Location: Location proximate to

of our board unit at CPM, site of the address growing demand pockets
packaging Company’s existing manufacturing in western India with declining
board project… facility, seeding the ground for the turnaround times
and how this next round of growth
will reinforce Competitive: Project cost lower than
our financial Integrated: Integration of packaging a greenfield plant of similar capacity
sustainability board and pulp mill (repurposed), by around H15,000 per tonne
strengthening value-addition Funding: Funded by debt at 8% cost
Sizable: Proposed expansion by 1.7 per annum across ten years with a
lac TPA, graduating the Company two-year moratorium, graduating
to among the largest packaging the debt to quasi-equity status
board companies in the country
18 | JK Paper
Rating
How JKPL The Company generated a superior credit
rating on account of declining debt and
strengthened its financial standing stronger surpluses.
Short-term credit rating Long-term credit rating
2016-17 2017-18 2016-17 2017-18

A1 A1 A/ STABLE A/ POSITIVE
2018-19 2019-20 2018-19 2019-20

A1+ A1+ A+/ STABLE AA-/ STABLE
Liquidity Receivables cycle

The Company strengthened its financial comfort through a rising interest cover and A larger proportion of material was
debt service cover, indicating its increased capacity to service its obligations on marketed to primary customers
schedule. (trade partners) on a cash and carry
basis, strengthening working capital
management.
(in x) (in x)
1.08 1.83 2.47 2.57 2.87 4.47 7.57 8.02 (in days)
15 14 9 9
2016-17 2017-18 2018-19 2019-20 2016-17 2017-18 2018-19 2019-20

2016-17 2017-18 2018-19 2019-20
Debt service coverage Interest coverage
ratio* ratio Receivables cycle
* Net of prepayment of loans

A culture of procurement
economies
Big numbers
41% 45% 37%

Raw material cost as a Raw material cost as a Raw material cost as a
percentage of revenues, 2010-11 percentage of revenues, 2015-16 percentage of revenues, 2019-20
20 | JK Paper
Overview were considerable: the vast volume of prosperity and subsequent re-investment
wood required warranted a long-term in commercial farming, improved wood
In the business of paper manufacturing
investment that was not easily available quality and strengthened the output of
that relies extensively on the procurement
from within the Company’s paper and corresponding realisations.
of wood resource, there is a premium on
fundamentals. The Company took a
the ability to procure the largest volume This extensive value chain – farmer
considered long- term approach: it
at the most affordable cost within the engagement to generate superior
invested, demonstrated the proof of its
shortest procurement distance. realisations – has translated into one of the
concept, scaled and transformed the
most compelling success stories related to
In a world where the availability of growth of plantation wood into a full-
business sustainability within the
wood resources is being increasingly fledged movement.
Company. In turn, the economic availability
affected by a perspective that this is
Over the years, the Company's success in of wood resources helped moderate raw
environment unfriendly, there is a
enhancing the throughput of available material costs for the Company,
growing need to create responsible
plantation wood has kick-started a rural strengthening competitiveness in a
business models that reconcile the
transformation in the areas of it's presence: business marked by a high proportion of
interests of the farmer, user and the
enhanced farmer livelihoods, secured resource costs.
environment.
availability of precious raw material within
When JK Paper embarked on an 200 kms of the Company’s
ambitious programme to encourage manufacturing facilities, moderated the
farmers in growing plantation wood, the delivery cost
challenges of wood resource, enhanced rural
Strengths
Lower distance Stability of Holistic role Increased
The Company has engagement The Company has availability
moderated the average The Company entered The Company has
graduated from just a
distance covered in the into stable engagements enhanced the coverage
buyer to a friend-
procurement of wood with a growing number of of plantation wood in its
philosopher- guide helping
resource, reducing time farmers (estimated at more hinterland by planting
farmers generate superior
and distance taken on the than 55,000), representing ~50,000 hectares in
yields and advising on re-
one hand and the average a dependable procurement the last four years. The
investments, widening the
cost of procurement on backbone resulting in Company commenced
circle of prosperity.
the other. multi- year resource operations in SPM in
visibility.
2019-20, capitalising
Clonal greater inducement to

grow trees and secured
The Company has reinforced its wood plantation programme through the availability of
material availability for the
high yielding clonal saplings, increasing tonnage per hectare and enhancing farmer
Company.
prosperity.
Besides, reduction in the gestation period to grow clonal saplings (from four years in 2015
to three years today) into full-fledged trees has proved win-win: quicker incomes for farmers,

on the abundant availability of wood in Telangana and Andhra Pradesh, proximate to its
manufacturing facility.
22 | JK Paper
Challenges and responses Highlights, 2019-20
In the absence of any procurement
The Company focused on local
contract between JK Paper and
sourcing from six prime districts,
wood vendors, the latter could
namely Rayagada, Koraput,
market their produce to any buyer.
Vishakhapatnam, Nabrangpur,
The Company deepened its farmer Vizianagaram and Srikakulam,
engagement through support and reducing its procurement and
guidance and the payment of fair logistics costs.
wood rates; JKPM and CPM are
The Company moved from
located in pockets where no other
seedlings to clones, strengthening
industry players operate, making
eventual output quality.
the Company a preferred customer.
The Company leveraged superior
The Company developed a system
research to produce subabul clone
to track plantation and farmer data
saplings with a lower gestation
for better traceability and forecast.
period pre-poning revenues and
prosperity.
Heavy
monsoons The Company successfully
moderated reduced its raw material cost as a
wood inventory percentage of revenues.
at CPM
The Company increased available Outlook, 2020-21
wood inventory from 90 days to 100 The Company will deepen its R&D
days; the Company identified road- capabilities, widen plantation
side plantations to be harvested footprint and accelerate the shift
in the rainy season for convenient from seedlings to clonal saplings.
loading and unloading.
13,018
Plantation coverage,
2019-20 (in Ha)
8.1
Increase in
plantation coverage, 2019-20 (in %)
Sustainability and farmers
These
The Company provides increase
farmers withtonnage
highThe per
Company
hectare,
yielding assures
clonal reduce
The
farmers
saplings gestation
Company
of clonal-derived
and
facilitates
enhance
The wood
Company
farmer
wood
movement
buyback
incomes
providestosuperior
the factory
returns to farm

A culture of
manufacturing
excellence
Overview f
i
The paper industry is capital-intensive. x
With increasing global competition, there e
is a growing need for manufacturing d
competitiveness to be reflected in lower
c
costs, higher asset utilisation, consistent
o
product quality and an optimal utilisation s
of finite resources. t
s
Over the years, JKPL invested in a
complement of the most advanced a
manufacturing technologies. n
d
The Company did not just invest in
state-of-the-art assets, but progressively e
debottlenecked with the objective to n
generate a higher throughput, h
amortise a
24 | JK Paper
nce competitiveness.
the Company benchmarked options
around world-class standards, shared best
practices, enhanced overall efficiency and
emerged as one of the most competitive
within India’s paper industry.
The result is that the Company delivered an
aggregate asset utilisation of 111.1%
during the year under review, a 240 bps
increase over the previous financial year.
Besides, the Company’s manufacturing
excellence has been reflected in a
strengthening input- output ratio (superior
yield), enhancing overall competitiveness.

Strengths
JKPM The plant comprises JKPM comprises The plant increased asset
The plant (5 machines) world-class technology that experienced manpower utilisation
comprising 2,95,000 TPA produces quality coated / with a demonstrated
of manufacturing capacity, uncoated paper. competence in enhancing
among the largest paper asset utilisation
manufacturing facilities in
the country.
The increase in asset utilisation was corresponded by

The plant optimised utilisation of a number of resources,
a superior amortisation of fixed costs the basis of its competitiveness
CPM SPM
The plant (3 machines)
The Company deepened The plant possesses a The plant’s four state-
specialised in the
a culture of process and longstanding experience of-the-art machines
manufacture of paper
product innovation. in manufacturing coloured manufacture paper ranging
and packaging boards.
paper, generating superior from 44 to 400 GSM.
realisations.
Challenges and responses

JKPM
There was increased competition from The

international
plant leveraged
brands.superior technology to emerge as one of the most competitive in the countr
CPM
The Company needed to graduate to JKPL strengthened its effluent management, providing farmers with treated water for
zero liquid discharge status irrigation.
The plant scale was sub-optimal,

The Company intends to invest in a higher capacity pulp mill, high efficiency
thus depriving the plant of
recovery boiler and high efficiency power boiler in 2020-21.
economies of scale.
SPM
The machines needed to be revitalised The Company invested in plant upgradation to enhance productivity.
after being inoperative for four years.
The infrastructure was considered The Company invested in extensive plant improvements
unsafe for employees.
26 | JK Paper
Highlights, 2019-20
JKPM CPM SPM

The Company introduced new washing in the
Thepulp
Company
mill, increasing
invested inpulp
an efficient
output from
pump The
610
while
tonnes
plantmotor;
re-commenced
per day
refiners
(TPD)were
partial
to 650
refurbished
TPD.
production
and
and
a un
re
The Company introduced enzymes and chemicals,
The Company
enhancing
installed
paper
a steam
shade profiler
and quality.
in Machine
the paperspeed
machine
increased;
2 and board
steammachine
and condensation
to ensure
The Company reused 1,400-1,600 cubic metres of treated sewage The plant is likely to generate the rated output of
a day, moderating fresh water consumption by ~17%.
Outlook, 2020-21
JKPM
Increase paper installed capacity from 2,95,000 tonnes per annum
(TPA) to 3,20,000 TPA.
Focus deeper on cost reduction, new product developments and training practices.
CPM
Increase pulping / production capacity and capacity utilisation following debottlenecking and capacity expansion.
Focus on cost reduction and optimal manpower utilisation.

~90%.
Unit CPM’s edge

The plant specialises in the production of writing & printing paper and packaging board. The Company’s rich experience and skilled m
Company with a diversified portfolio. The plant also has an established quality management system, ensuring that customers are not j
28 | JK Paper
Capacity expansion
Manufacturing
The Company is one of the leading players
in the organised paper manufacturing
sector in India, servicing growing
customer needs with increased
excellence
manufacturing capacity
(in tonnes)
1,50,000 2,40,000 4,55,000 4,55,000
at JKPL
2004-05 2009-10 2014-15 2019-20
Aggregate installed capacity of

JKPL
Capacity utilisation Production

JKPL leveraged the power of its available
JKPL has leveraged its state-of-art
capacities through enhanced asset
integrated plants to increase production
utilisation, strengthening overall efficiency
over the past years.
(in %)
(in tonnes)
103.4 105.1 108.7 111.1
1,80,089 2,73,755 4,13,835 5,05,435
2016-17 2017-18 2018-19 2019-20

2004-05 2009-10 2014-15 2019-20
Average capacity utilisation of Aggregate production
JKPL at JKPL

How we strengthened
our Customer Capital
Overview In the writing & printing paper segment, strengthen their distribution networks and
In the business of paper manufacturing, the Company manufactures a large variety product flows. In a country as large as
it is not only imperative to sell the right of brands addressing the needs of the India with a per capita consumption of
paper product but also the right grade, education and printing segments along paper that is considerably lower than the
grammage, lustre and other technical with the end consumer; in the packaging global consumption average, there is a
requirements. The ability of a paper board segment the Company addresses growing conviction that a widening and
manufacturer to customise inevitably downstream sectors like FMCG, food, deepening distribution holds the key to
translates into rising product offtake and pharma and textiles, among others. growing the market and narrowing the
business sustainability. gap.
In a business where the product is
Across the years, JK Paper reinforced manufactured in large volumes but Over the decades, JK Paper focused on
its competitiveness through the consumed in relatively smaller quantities building its distribution network
manufacturing of writing & printing paper across the national landmass, there is a through the prudent selection of
on the one hand and packaging board on need to distribute the product wide and distributors in the right locations of
the other. The ability to provide paper with deep. Besides, there is a growing premium product demand, servicing their needs
two completely different applications has on the need to buy products just when for different
helped broadbase customers, applications they are needed, minimising inventory. This paper grades and building long-term
and risks while enhancing business focus on just-in-time quantities has made relationships, resulting in a deeper
sustainability. it imperative for paper manufacturers to understanding of ground realities. The
Company’s family of pan-India distributors
does more than just distribute products
30 | JK Paper
across customers; they help seed new widest distributed paper brands with a ten years or more than 70% at the close
paper grades across customers and reach pan-Indian network of more than 4,000 of the year under review; most of these
products into areas with relatively low dealers and over 300 trade partners trade partners reported a sustained
market share, providing a growth platform (wholesalers, retailers and direct party) increase
for the Company. and 15 depots. A major portion of trade in their revenues and sales throughput,
The result is that JK Paper is one of India’s partners have been with the Company validating that the Company’s growth was
for shared across its distribution family.
Strengths
Largest People Position
The Company comprises one of the
The Company grew its technical The Company is a market
largest networks of over 300 trade
manpower, making sales leader in the copier paper
partners compared to an industry
informed and customised around segment and one of only two
average of ~100 partners,
downstream requirements. companies manufacturing
strengthening a demand pull for
coated paper in the country.
products.
Recall Network
Responsible
The strong legacy of the JK The Company has a robust
Owing to a wood- and carbon-
Group of more than 100 years distribution network of over
positive status and FSC certification,
resonates across group 300 trade partners and 4000
the Company possesses confidence-
companies and has helped JKPL dealers with 15 pan-India depots,
enhancing credentials of holistic
create a strong brand recall reducing the turnaround time in
responsibility.
servicing customers.
How we strengthened our customer-centricity

JKPL arranged client and trade from a complete dependence to service customers better
partners to visit its plants, on trade partners to a market and comprehend marketplace
enhancing confidence in the place presence as well. This trends better.
Company’s quality systems. makes the Company one of the
One of the most decisive The Company also organised
first in India’s paper industry
initiatives by JK Paper in the last training for more than 100 trade
to develop a consumer-facing
few years has been its selective partners, enabling them to
presence – with the objective
extension serve their customers better.

Paper Mills. affected the profitability of companies like
Owing to the import restrictions on
JK Paper.
waste paper in China, China’s paper The Company worked closer with trade
production declined. There was a partners to increase throughput per The Company strengthened its distribution
challenge in capitalising on this reality. distributor in addition to reaching end network and expanded its market footprint
customers directly in markets like Guwahati to increase its outreach, protecting its
JK Paper preferred to strengthen
and Kolkata. volumes.
relationships with the trade and
downstream customers than increase The price of coated paper is largely In the maplitho paper segment, global
realisations to a point where the cost of governed by the movement of global pulp realisations declined substantially and it
paper would become unaffordable. This prices and the landed cost of imported became increasingly difficult to compete
stable outlook helped retain customers, coated paper. against international players.
strengthening the Company’s image
In the second half of 2019-20, pulp prices The Company entered into pre-approved
around customer-focused stability.
went down and there was an improvement price contracts that protected customers
The Company was faced with a challenge only in the last quarter in realisations. from volatility, resulting in assured sales
to market the additional volumes volumes.
The year was marked by declining pulp
generated by the re-commissioned Sirpur
prices resulting in lower landed prices that
Highlights, 2019-20 The Company is progressively working outdoor advertising and print media
The Company commenced full-fledged to reaching out to end users as part of
The Company organised ‘Auther’
production in all four lines, including colour it's customer-centricity initiative
awards with Times of India being the
grade, cup-stock, copier and maplitho
The Company continues to incentivise media partner to promote women's
products at the Sirpur plant
distributors through the ‘Super Sitare’ empowerment, making it possible for
The Company widened its sales network. programme. the Company to establish a lasting
relationships with prominent publishers,
The Company added new products such The Company focused on enhancing its
printers and authors.
as thermal paper (digi roll), pharma print visibility across the social media.
(paper for pharma inserts), paper straw and The Company reached out to students to
The Company engaged in below-the-line
OGR. enhance its recall as a responsible player
activations (‘Letter to Supermom’, ‘Daak
engaged in social farm forestry.
Room’, etc.), digital marketing, brand
videos,
32 | JK Paper
Exports
JK Paper not only enjoys a pan-Indian presence, but
also a strong international presence spread across 62
countries; USA, major countries in Europe, Middle
East , Asia and Africa are prime markets.
Outsourcing
JK Paper provided customers a wider portfolio through
selective product outsourcing (chromo one side-
coated, maplitho uncoated wood-free, copier grade
paper and packaging boards, among others). This
outsourcing proved asset-light and reinforced the
Company’s position as a one -stop shop.
Outlook, 2020-21 The Company also plans to deepen its sales network across tier
The Company is optimistic of its growth on account of superior 1 and 2 cities across in the country.
product quality, robust brand recall and customer-centricity. The Company plans to bust various myths around paper and
The Company plans to increase production from the Sirpur paper products on the back of its sustainability campaign covering
plant. customers ranging from schools and colleges to homes and
The Company intends to sustain and widen its brand recall corporates.
through the ‘Auther’ awards campaign. Further, the Company
also intends to create a better connect with the publisher
community via this initiative.
How JK Paper is creating a distinctive brand

The Company expects to emerge among leading paperboard manufacturers in India across the foreseeable future after its paperboa
The Company is the leader in the copier paper segment in India.
The Company is among only two paper manufacturers in the country producing coated paper.
The Company scaled its capacities with the objective to provide adequate quantity and quality service. The Company deepened its f
JKPL’s social media footprint
5%
Average
Annual Report |
rate2019-20
47
engagement
Cumulative outreach of JK Paper across social media channels (Facebook, Twitter, LinkedIn, Instagramforand Youtube) for 2
2019-20
How JK Paper has strengthened its stakeholder value
“In 2000, I had huge “In 2018-19, there was “Last year a customer “In 2015, I received
outstandings towards JK a merchant export needed watermark an order for medical
Paper. Despite this, the order of coated paper paper and no paper entrance paper of 5
Company reposed faith to Bangladesh with a company was keen to tonnes, the delivery of
and extended my credit tight delivery schedule. service my requirement which was expected to
period from ~20-30 days When I escalated this of this customised get delayed. I reached
to 45-60 days. I could to JK Paper, the requirement. Except JK out to JK Paper for help;
retain my customers and Company got the Paper; it delivered 500 it offered alternative
was able to grow my consignment shipped tonnes by the 32nd paper (costlier) as a
sales from 800 tonnes a within three days: an day. My business stood replacement after
year to more than 800 instance of how JK at 100-150 tonnes per absorbing ~60% of
tonnes a month.” walks that month in 2014 with my the cost. I paid 40%
extra mile for loyal presence spread across extra cost and serviced
primary customers. Nagpur and Maharashtra my client. I have not
These initiatives helped which increased to forgotten how the
me grow my business >250 tonnes per month Company protected
with JK Paper from 150 by 2015. In 2016, I my reputation. Not
tonnes per month in expanded my reach surprisingly, we have
2015 to 250 tonnes per to Raipur, and, in turn, grown from 50-60
month in 2019." my business went up tonnes of annual
to 500-550 tonnes per business throughput
month – all thanks to with JK paper in 2009 to
JK Paper.” 500-600 tonnes in 2019.”
Sanjay Kumar Dhanuka, Neeraj Khemka, Khemka Ashish Bhoot, SRTC –

Shiwdattrai Dindayal, Hari Prasad Goenka, Sales Corporation, Odisha
North East India National Sales Syndicate, Maharashtra and
West Bengal Chhattisgarh
34 | JK Paper
Leveraging
our Human Capital
Overview
In a business where a diverse number of factors are needed to be leveraged for business
sustainability, there is a premium on a range of competences. Over the years, the Company
strengthened its people capabilities through a structured process that comprised
selective recruitment, training, policies that enhanced retention and the creation of a
workplace that enhanced challenge, empowerment, growth and passion. The result is that
JK Paper
is not only one of the largest companies in India’s paper industry in terms of the
number of employees but also one of the most competent in terms of experience and
knowledge translating into sustained outperformance.

Strengths
Leaders
Credible Structured Trusted
The Company is recognised
The Company is regarded The Company is an The Company is the only
as one of the largest
as a credible player marked employer of a range of one amongst the Indian
Indian paper companies,
by forward-looking competences addressing all paper companies to have
strengthening its visibility
practices that makes it positions required for long- been placed within the top
as a stable employer with
possible to attract talented term business sustainability. 25 in the Employee Trust
long-term career-building
professionals. Index.
prospects.
Compliance
Retention Balance Respect
The Company is recognised
The Company’s people The Company’s The Company is
as a completely compliant
retention at around 92% employee base of 2560 respected for its passion,
player, reinforcing its
was higher than the people comprised an empowerment, delegation,
respect as a responsible
estimated industry average average age of 39 years, a professionalism and
corporate citizen.
of around 90%. balance processes, creating
between youthfulness and the basis for sustained
experience. outperformance.
Technology
The Company has an established cloud-based HRIS, Knowledge-driven
deepening its engagement with employees, facilitating The Company’s cross-functional learning forum
the ‘HR On-The-Go’ facility anytime anywhere. ‘Kitabon ki aur’ (Book club) helped share learnings. The
Company provided employees with an online library.
Challenges and mitigation
The recruitment of professionals in rural manufacturing

The Companylocations
mitigated
wasthis
an ongoing
challenge
challenge.
by increasing engagement with employees and pro
The Company encountered operational issuesThe

withCompany
its contractual
mitigated
labour
thisin
challenge
Odisha. by involving local authorities, negotiating and offe
36 | JK Paper
The Company acquired the SPM plant in 2018-19,
The Company
which wasmitigated
shut for four
this challenge
years. When
through
re-hired,
extensive
workers
training
required
andtechnology-based
increasing workerre
f
Attracting and retaining talent in the industry

Providing
is a challenge.
challenging assignments, career growth and higher compensation.
Highlights, 2019-20
JK Paper was ranked among the The Company created an The Company undertook ‘Wrong 2
top 100 companies by Great Place e-learning portal, wherein Right’ initiative, wherein employees
to Work (all sectors) and in the top >3500 online courses were submitted testimonials on the
30 (among manufacturers). provided to enhance rectification of errors and learnings
competencies. to remove a fear of failure.
The Company initiated a The Company completed SAP The Company made inter- and
communication platform (Sampark) implementation, designed to intra-departmental job rotations to
to create greater involvement and enhance human productivity. enhance productivity.
environment of transparency as
well as listen to them.
Outlook
The Company intends to increase the proportion of women employees across its
manufacturing plants in 2020-21, increasing their proportion from 3.5% in 2019-20 to
5% in 2020-21. Further, the Company intends to deepen a culture of customer-centricity,
translating into superior productivity across every operating function.

Environment
management review
38 | JK Paper
Overview the consumption of finite resources. This
manufacturers to moderate their carbon
The paper industry is one of the most footprint, measuring their success not only had a two-fold impact: the Company
environmentally sensitive industries for by the conventional parameters of revenue moderated consumption per unit of
various reasons. The industry manufactures and profit growth but also through a production while enhancing savings that
a product that is perceived to be declining consumption of finite resources strengthened margins and profits. In
environment-depleting (even as research per unit of production. doing so, the Company demonstrated that
has proved this to be false), utilise a vast ‘green’ business is good business – the
quantum of water, wood and other finite Over the years, JK Paper reinforced its
basis
resources. industry statesmanship through forward-
of its long-term business sustainability
looking investments in technologies and
This reality has put a premium on paper for the benefit of its region, employees,
equipment with the objective to moderate
communities and the environment.
Strengths
Respect Standards Consumption
The Company is one of
The Company possesses The Company moderated
the most respected
an inspiring track record of its consumption of natural
paper
compliance with local, state, resources, translating into a
companies in India on account
national and global pollution lower environmental load
of its complete compliance
management standards, and a lower operation cost
with statutory environment
strengthening its governance on the other, without
requirements, resulting in no
framework. compromising product quality.
censure and uninterrupted
operations.
Unique positioning Holistic

Benchmark
The Company is wood- The Company is not just
The Company is not just an
positive in a wood- a responsible consumer
industry player when it
intensive sector, of resources but also
comes to environment
highlighting its ability to responsible treater of
management; it is considered
invest more in building effluents, ensuring that no
a responsible benchmark.
wood plantations than harmful substance (liquid,
The Company has
utilising them solid or gaseous) is released
consistently reported among
for paper production, in to the environment,
the lowest water
underlining the responsible making the operations
consumption parameters per
role that paper companies completely safe for the earth
tonne of the end product
are playing in the world. and living beings.
within India’s paper industry,
half the industry average.
While concentrating black liquor, the release JK Paper pioneered the implementation of a methane recovery system in India,
of methane is pungent and pollutes the converting this into heat and replacing furnace oil. This moderated emissions and
ambience. reduced furnace oil consumption ~20%, and related costs.
During the year under review, the Company introduced a first-in-country

In the effluent treatment plant, disposal
system of concentrating the secondary sludge in the centrifuge by 8-10% and
of secondary sludge was a challenge and

addressed with landfilling.
mixing it with black liquor for onward use in the recovery boiler, reducing the
quantum of secondary sludge disposal.
40 | JK Paper
Highlights, 2019-20
The Company introduced Low The Company installed a micro The Company received a
Temperature Recovery Column turbine to replace the pressure pollution control excellence
(LTRC) to capture heat from the reducing station (steam loss). award from the Government of
flow gas while demineralising the This 3.4 MW micro turbine will Odisha.
water, channelised to the boiler help retain steam and
and expected to substitute coal generate electricity.
use in the boiler.
The Company received ISO The Company consciously

45001 certification, validating its invested in better environmental
occupational health and safety management practices.
focus.
Outlook
The LTRC process is expected to reduce coal and water consumption and enhance the colour acceptability of treated effluents.
How JKPL strengthened its environment sustainability

Optimising water Optimising coal consumption Optimising power consumption
consumption Following various measures, the Company The Company reduced power consumption
On the back of various measures reduced its coal consumption. per unit of production over the years.
undertaken, JKPL has emerged as among
the most economical water consuming
paper companies in India.
(in cubic metres per tonne of paper (in tonnes per tonne of production) (in KWH per tonne of production)
produced)
42.75 38.18 37.24 32.43 0.85 0.88 0.83 0.79 1,039 1,015 971 960
2016-17 2017-18 2018-19 2019-20 2016-17 2017-18 2018-19 2019-20 2016-17 2017-18 2018-19 2019-20

How we strengthened our
community engagement
42 | JK Paper
Overview catalysed employment opportunities groups for income-generation (516 self-
JK Paper is a responsible corporate citizen, within and outside its plant. Over time, the help groups with a membership count of
extending its prosperity to the well-being plant has emerged as an economic engine more than 5,300 women).
and welfare of communities in and of Rayagada.
The result of these initiatives is that the
around its manufacturing locations.
The Company has undertaken a number Company’s community engagement
JK Paper empowers communities in of initiatives to benefit the residents touches the lives of 1.4 lac rural citizens
Rayagada, Rayagada is one of the of three blocks, namely Rayagada, across three blocks in Odisha.
country's 250 most backward districts (out Kolnara and Kalyansinghpur, well before
All the CSR programmes of JK Paper fall
of a total of 640) as identified by the corporate social responsibility became a
within the preview of Schedule VII of the
Ministry of Panchayati Raj in 2006. The mandate for corporates. In doing so,
provisions of section 135 of Companies
district attracts funds from Backward the
Act, 2013 and the Companies (Corporate
Regions Grant Fund Programme (BRGF). Company touched 187 villages with a
Social Responsibility Policy) Rules, 2014.
total population of 1.4 lac.
Over the years, JK Paper created an
ecosystem around its plant (JKPM), which The Company championed women’s
empowerment through partnership with
an NGO (Sparsh) that helped form self-
help
In 2019-20, we addressed the following key Sustainable Development Goals (SDGs) attended
by our initiatives include:
1 NO
POVERTY 2 ZERO
HUNGER 3 GOOD HEALTH
AND WELL-BEING 4 QUALITY
EDUCATION 5 GENDER
EQUALITY
AFFORDABLE AND
6 CLEAN WATER
AND SANITATION 7 CLEAN ENERGY 8 DECENT WORK AND
ECONOMIC GROWTH 9 INDUSTRY, INNOVATION
AND INFRASTRUCTURE
10 REDUCED
INEQUALITIES

11 12
SUSTAINABLE CITIES AND RESPONSIBLE
13
COMMUNITIESCONSUMPTION
CLIMATE ACTION
AND PRODUCTION
17
PARTNERSHIPS FOR THE GOALS
44 | JK Paper
Women Empowerment
Increasing women contribution been were actively engaged in group Approximately 43% women were
to the national GDP is one of economic activities. covered under Pradhan Mantri Jeevan
the Jyoti Beema Yojana (PMJJBSY) and
SHGs were capacitated though
focus areas of JK Paper Ltd. and we Pradhan Mantri Jeevan Suraksha
regular training on saving-credit and
perceive that it can be only achieved Yojana (PMJSY).
book keeping, supporting group
through empowering our women. economic activities. Collective enterprises such as broom
Women empowerment is best collection, processing, binding and
achieved through mainstreaming Savings of SHGs reached H139.67
marketing; mushroom cultivation; Siali
their livelihood interventions, bringing lac with 30% of total SHGs
leaf plate manufacturing; bamboo
financial stability and allowing them witnessing inter-lending amounting
art and craft products; organic food
to increase their decision-making in to 16% of total savings during this
processing and packaging; animal
households. reporting period.
husbandry and tailoring were few
Highlights, 2019-20 375 SHGs received revolving emerging sustainable livelihood
5300 tribal women from 178 fund amounting H50.43 lac opportunities.
through government linkages.
peripheral villages mobilised to form Rural Mart Rayagada was set up to
516 SHGs. 503 SHGs had active bank accounts support marketing & sales of SHG
and out of this 246 SHGs had bank produce and since October 2019
1313 women from 126 SHGs have
loans amounting to H244.30 lac. reported a turnover of H9,72,917.00.
Youth
Approximately 66% of India’s sustainable campuses and literacy training. In 2019-20, 50 youth
population is less than the age centers, which are powered by100% enterprises were supported through
of 35 and the median age of the solar energy. Under JK Paper financing and mentoring provisions.
country is around 28. Against this Environmental Initiatives, LPS Public H1.3 crores loan was also mobilised for
backdrop, the Company focused on School has emerged as the first green youth enterprises in 2019-20 under
skill development (tailoring, driving, campus school in Odisha. this program.
mobile shop repair and MSME Counselled 558 youths from 14 Helped form 17 Youth Clubs and 14
initiatives), enhancing economic self- villages for different placement- Balika Mandals, with a total outreach
reliance and productivity. linked skill training programs and across 544 boys and 362 girls across
Highlights, 2019-20 entrepreneurship opportunities across Odisha.
The Company runs three digital Odisha. Of this, 42 youths got placed
Supported skill development
literacy centres with an annual reach in different trades.
programs and entrepreneurship
of 120 youth from Silitgua, Angur The Company, through its initiatives in ITI, Ukai, Tapi district of
and Madanpur clusters of Odisha. partnering NGO Bharat Yuva Shakti Gujarat. During the year under
These centres educate the youth in Trust (BYST), reached out to an review, the Company trained 603
basic computer skills, life skills and additional 7500 youth in 2019-20. youth in 11 different trades under the
learning opportunities. Under this intervention, 1500 youth vocational training program.
Helped create environmentally received counselling support with
300 youth receiving
entrepreneurship

Farmers round-the-year production to market linkage support to enhance
To increase farmer incomes and increase revenues. farmer incomes.
awareness of scientific farming
Highlights, 2019-20 Group-based solar irrigation was
techniques, JKPL engaged with
The Company helped 4 FPO's and initiated across 12 locations, providing
government agencies, research
157 farmer groups, reaching 7832 irrigation support to 1429 households
agencies and farm sector experts with
farmers across 168 villages in Odisha and providing irrigation for summer
the help of an NGO (Sparsh). The farm-
and Gujarat. crops, ensuring year-round income for
based livelihood interventions with
over 1400 families.
the objective of 'more than doubling The Company has in place 5
farmer incomes' has helped farmers Farmer Resource Centres (FRCs) and Capacity-building training was
with better seed and agricultural embarked on the initiation of two provided for mushroom cultivation,
practices supported with perennial more FRCs to provide linkages with honey bee farming and organic
irrigation to ensure higher yield and government schemes, organic seed vegetable farming in Songadh,
support, technology support and Gujarat.
Healthcare with an MBBS doctor, a nurse time, total 904 refractory glasses were
There is a premium on health and attendant and provided distributed among needy people.
and hygiene. JK Paper free treatment to all needy
undertook initiatives to provide 309 tribals in Rayagada were
people of selected villages.
free medical supported for OPD and Eye Surgery in
check-ups, treatment and medicines. Reported a total outreach of 15,983 partnership with JK Center on Tribal
The Company improved healthcare patients (cumulative) through 169 Eye Health.
access for women through dedicated medical camps and referred 99
Improved nutritional outcomes
platforms (Balika Mandals) to patients to higher facilities for better
in the rural population to combat
handhold adolescent girls in the treatment in the year under review.
malnutrition at unit CPM.
subjects of personal hygiene, Undertook regular counselling and Through
reproductive and sexual health. treatment for people suffering from regular growth monitoring camps and
The healthcare initiatives included sickle cell anemia. In the year under the counselling of parents, upgraded
providing access to quality primary review, 1980 traits and diseased 179 children from yellow to green
care services to the underprivileged patients started treatment through category and 20 children from the
community, conducting need- JK's care program for sickle cell red to green category. The
based health camps and providing anemia. Company also ensured measles and
consultation and medicines, among rubella vaccination of the targeted
Supported the visually-impaired
others. The Company undertook group.
and underprivileged people by
efforts to ensure better maternal and
partnering with JK Tribal Eye care Supported free diagnostic and
child healthcare services. JK Paper
centre at Raygada. During the year treatment facilities for below poverty
provided mobile health care
under review, the Company line patients in Delhi through
services for patients with difficulty to
screened more than 1710 individuals Pushpawati Singhania Hospital &
travel.
for vision- related issues, of which 222 Research Institute (PSRI) and free
Highlights, 2019-20 cataract surgeries were done. At the screening of cancer patients through
The mobile health van was staffed same Global Cancer Concern India (GCCI),
Gurgaon.
46 | JK Paper
Education to conserve natural resources, and an 'Inborn Potential Assessment'
As per the 2011 Census, 32.2% rural enhance biodiversity, optimise was conducted using biometric
Indians were illiterate. JK Paper energy efficiency, improve waste technologies followed by an EKA
undertook initiatives to educate local management and are educated about Report. Counselling and hand-holding
communities and counter a climate change and sustainability. was provided to the parents of
centuries- old culture of social and selected students.
economic exploitation. Initiated a unique activity in
collaboration with CMFID to Focused on financial and
Highlights, 2019-20 promote educational activities and infrastructural support to government
Under the 'Green campus' career guidance for female tribal schools and girls ashrams to promote
programme, JK Paper promoted students. Under this project, 300 education in tribal areas, renovating
sustainable education campus, underprivileged students (mostly buildings and constructing toilets.
ensuring that schools and colleges girls) were chosen from three
schools
Rural infrastructure Highlights, 2019-20 Aided infrastructure development

development of office buildings, separate toilets
The Company supported the
With the Government advocating
construction of two multi-purpose and land-levelling activities through
the cause of rural infrastructure, the
sheds in government primary schools the gram panchayat with special
Company built crematoriums,
and two common facility centers, to provisions under MGNREGA and block
village approach roads and
promote livelihood generation. support for market yard development
overhead water tanks.
provisions.

Awards and recognitions, 2019-20
During the year under review, South Gujarat Chamber of Commerce & Industries (SGCCI) awarded JK Paper with 'Outstanding achi
JK Paper Ltd. featured in the Economic Times CSR compendium 2020
JK Paper Ltd. was recognised for their commendable work as a socially responsible company in the18th FICCI Corporate Social Respons
48 | JK Paper
How we Outreach
strengthened our JKPL
local
empowered
communities
social support through

initiatives.
CSR
80,471 1,14,667
2018-19 2019-20
Number of
beneficiaries
How we addressed the COVID- educating them about the dos' and personal/public hygiene and reduce
19 pandemic don’ts during the pandemic. risk of transmission. Beneficiaries mostly
The last quarter of 2019-20 was marked include daily wage workers and BPL
• Supported 1,624 marginalised
by the spread of the COVID-19 virus families in Rayagada.
households of primitive tribal groups
across the world, which later WHO (Kotwalia/Khatud/Bhil) and landless • JK Paper Mills, in consultation
declared as a pandemic, forcing the daily wage labourers by providing district administration of Rayagada,
governments across the world to ration kits (pre-packed food rations Odisha - SPARSH, undertook COVID-19
announce nation-wide lockdowns. including rice, flour, pulses, salt, sugar Safety Awareness Campaign in over 150
The Company realised the importance and cooking oil). The Company also villages through the distribution of
of supporting the communities during manufactured 50,000 leaflets, displaying 100s of flexes
these difficult times. Under 'COVID-19 ~5000 khadi/cotton masks at JKPL's and posters with safety messages
awareness and relief program', the tailoring centre to be distributed within 100 km from Jaykaypur.
Company undertook the following among tribal community.
• Distributed food in Puri and
measures: • As a part of relief operations, Bhubaneswar through its NGO network
• Launched an awareness we distributed kits to 2,797 to 750 farming families and 170 slum
campaign, covering 58 villages of households in 13 villages. The health houses. JK Paper engaged with a
Songadh and Ucchhal blocks of Tapi and safety essential kit includes items network of 70 NGOs in six districts since
district. Through this awareness drive, such as soaps, washing powder, the time of super cyclone Fani, in May
the Company reached out to 72,000 sanitary napkins, bleaching powder 2019.
villagers, and face masks. Soap and other
hand-washing items are provided to
promote

Our
Integrated
Value-
Creation
Report
Our strategy
Strategic Procurement Manufacturing People

focus excellence excellence excellence
Key enablers The Company has been Invested increasingly in The Company undertook
focusing on bettering its its research, development several initiatives to
raw material sourcing. and manufacturing strengthen people
JKPL’s focus enabled the facilities. This enabled the practices, validated by
Company to source a Company to decrease an attrition rate of 7%
majority of its materials process costs, increase compared to the industry
from a 200 km radius efficiencies and scale the average of 10%.
plants, reducing logistics business.
costs and enhancing
access to fresh raw
material, which, in turn,
enhanced the quality of
paper produced.
Material issues addressed Improved raw material Improved cutting- Improved employee
procurement and edge technology and engagement and raised
brought down costs. enhanced R&D initiatives. transparency.
Capitals impacted Financial, Manufactured Manufactured, Intellectual and Human

and Social Intellectual and Financial
50 | JK Paper
There is a growing importance of the whole, that explains an organisation’s ability In an Integrated Report, the shift from the
Integrated Value-Creation Report. This to create, enhance and sustain value. ‘hard’ to ‘soft’ (non-financial data) helps
approach overcomes the limitations of screen more comprehensively, addressing
Integrated reporting explains to all the
the conventional approach through a the needs of the investor fraternity/
stakeholders (shareholders, financial
comprehensive framework that government agencies.
institutions, employees, customers,
integrates ‘hard’ and ‘soft’ initiatives.
suppliers, business partners, local In the following section we have
Integrated reporting draws different communities, legislators, regulators and selected to explain our business model
reporting strands (financial, management policy-makers) how an organisation and how it has been structured to
commentary, governance and enhances sustainable value in an enhance value.
remuneration, social responsibility and enduring way.
sustainability reporting) into a unified
Distribution Brand and customer Environmental

excellence excellence integrity
JKPL does not only The JK brand name has The Company’s
believe in creating a been synonymous with proactive measures in
strong distribution superior quality and sustainability helped the
network but also a diversified product Company emerge wood-
remunerating them portfolio, creating value and carbon-positive. JKPL
and helping them among customers. With has the lowest water
grow. The Company the Company foraying consumption in the
undertook initiatives to into retail distribution, Indian paper industry, of
engage better with all its the customer-centricity state-of-the-art effluent
distributors and helped will be empowered and sewage treatment
them grow, emerging as further, creating plants and robust
the supplier-of-choice. enhanced value for environmental practices.
customers.
Improved value in the Boosted brand recall Improved environment

hands of distributors and and enhanced value for sustainability at all fronts
engaged better with customers by addressing and established JK Paper
them. customer needs as one of 'greenest'
effectively. companies in the industry.
Intellectual, Intellectual, Social, Natural and

Manufactured and Social Manufactured and Social Manufactured

Community
engagement
The Company is
engaged in community-
strengthening initiatives
to benefit farmers,
youth and women in
the villages near its
plants in the realms of
education, healthcare
and rural infrastructural
development. The
Company channelised
over H7.63 crores towards
CSR activities during
2019-20.
Uplifted communities and

enhanced prosperity.
Social and Natural
52 | JK Paper
How we enhance value
Financial capital Manufactured capital Human capital
The financial resources that the
The Company’s assets, The Company’s management,
Company seeks are based on the
technologies and equipment employees and contractual workers
funds it mobilises from investors,
constitute its Manufacturing form a part of its workforce.
promoters, banks and financial
Capital. The logistics for the transfer
institutions in the form of debt
of raw materials and finished
and equity.
products are integral to its
manufacturing competence.
Intellectual capital Social capital

The Company’s focus on cost Natural capital The Company’s relationships with
optimisation and operational
The Company sources raw the communities and partners
excellence, as well as our repository
materials in a manner that does (vendors, suppliers and customers)
of proprietary knowledge, account
not adversely affect the influence its role as a responsible
for its intellectual resources.
environment. corporate citizen.
Value shared with
Investors Suppliers
The Company enriched The Company sourced

investors through majority of its non-wood
dividends and capital materials from vendors.
appreciation.
Farmers Distributors
The Company sourced The Company generated
H554 crores of wood a majority of revenues
from farmers, which is through distributors,
99% of our total wood strengthening win-win
procured. relationship.

Management
discussion and analysis
Global economic review result of the novel corona virus pandemic,

The global economy grew slower by 70 the global economy is expected to de-
bps at around 2.9% in 2019 compared to grow significantly in the current financial
2018. Global trade also grew a mere 0.9% year.
in 2019 due to trade tensions and slower
(Source: World Economic Outlook, April
economic growth. The pandemic COVID-19
2020, CNN, Economic Times, trading
is projected to shrink global growth
economics, Statista, CNBC)
significantly in the foreseeable future. As a
Global economic growth over five years (in %)

World output Advanced economies Developing and emerging
2015 3.5 2.3 4.3
2016 3.4 1.7 4.6
2017 3.9 2.5 4.8
2018 3.6 2.2 4.5
2019 2.9 1.7 3.7
(Source: IMF)
54 | JK Paper
Indian economic review The nominal exchange rate (the Indian agricultural and non-agricultural labourers,
The Indian economy slowed to 4.2% in rupee or INR vis-à-vis the US dollar) remained subdued, averaging around 3.4%
2019-20, compared to 6.1% in 2018-19. exhibited sizable two-way movements and 3.3%, respectively during 2019-20 so far
In 2019-20, GDP growth slowed, which during October-December 2019. The INR (until January 2020), reflecting a continued
contributed to an increase in fiscal deficit came under intensified and sustained slowdown in the construction sector.
on account of lower aggregate depreciation pressures beginning mid-
The outbreak of COVID-19 and the
demand, lower fiscal revenue, lower January, reflecting a generalised weakening
subsequent lockdown enforced in the
economic activity and higher fiscal of emerging market currencies amidst
country are expected to moderate
expenditure flights to safety. Accordingly, the baseline
demand. Intensification of social distancing
on account of measures to address the assumes an average of H75 per US dollar.
is expected to lead to supply side as
economic slowdown. The nominal per capita net national well as demand side shocks. Supply
India emerged as the fifth-largest world income was estimated to be H1,34,226 in chain disruptions could hurt domestic
economy in 2019. India jumped 14 places 2019-20, up 6.1% from H1,26,521 in 2018-19. production in sectors dependent on
to 63 in the 2020 World Bank's Ease of Retail inflation climbed to a six-year high of imported inputs such as pharmaceuticals,
Doing Business ranking. The country 7.59% in January, breaching the RBI’s upper autos, chemicals, power, etc.
climbed 79 positions in five years and was band of 6% while settling at 5.91% in March
among the top 10 performers for the 2020. Growth in nominal rural wages for
third year running.
Key government initiatives in-India initiative. The new effective CIT Asia. E-commerce is likely to drive the
National infrastructure pipeline: To would be 25.17%, inclusive of a new lower global paperboard market; the global
achieve a GDP of US$ 5 trillion by 2025, surcharge of 10% and cess of 4%. India’s e-commerce market is expected to double
the government announced National CIT is now closer to the global average CIT by 2023, expanding at 12.9% y-o-y to
Infrastructure Policy with an investment of 23.03%. US$ 6.7 trillion. Paper packaging plays
plan worth H102 trillion in five years. It a critical role in the food and beverage
laid down the vision of the government Global paper & packaging industries for containing, protecting and
in terms of job creation: about 50 million industry overview preserving food products. Paper packaging
people are expected to leave farming The global paper, paperboard and is not just economical but environment-
from 2012 to 2030, the transition being packaging market was expected to grow friendly as well, influencing product sale,
underway. at a CAGR of 5% between 2019 and 2023 consumption, use and disposal.
Corporate tax relief: Indian companies to US$ 84.54 billion by 2024 (pre-COVID Global paper prices declined through
were unable to compete globally, with estimate). Almost 40% of this growth 2019 following a decline in demand.
the cost of capital and corporate income was expected to come from the North American pulp prices declined in
tax (CIT) being significantly higher than Asia-Pacific with a growing demand October 2019 due to the ongoing push
overseas competitors. In view of this, the for paper and paper products used in from U.S.
government reduced corporate tax rate education, sanitation, packaging and buyers to drop contract prices closer to the
to communication. net levels seen in domestic spot markets.
22% from 30%; it announced a new tax rate The biggest production shares of paper Pulp prices dropped from a high of US$ 800
of 15% for new domestic manufacturing and paperboards are accounted for by per metric tonne in January 2019 to
companies, strengthening the Make- North America, Western Europe and US$ 470-510 per metric tonne in November
East 2019.
Growth of India’s GDP in 2019-20

Q1, 2019-20 Q2, 2019-20 Q3, 2019-20 Q4, 2019-20
Real GDP growth (%) 5.2 4.4 4.1 3.1
(Source: Economic Times, CSO, Economic Survey, IMF, RBI, Franklin Templeton, PIB)

Pulp price trends Indian paper and Key numbers driving the paper
Producer Price Index for Pulp, Paper and a pulp industry industry in India
Allied Products: Wood Pulp overview
160.0
Industry position
India accounts for 4% share of the
150.0
140.0 global paper production even as it >13
130.0 accounts for nearly 18% of the global Average per capita consumption of
120.0 paper in India (in kg)
population. The size of the Indian paper
110.0
100.0 industry was estimated at H 70,000
crores in 2019-20, contributing H5000
57
Global average of per capita
crores to the exchequer. The industry
consumption of paper (in kg)
provides direct employment to 5 lac
Opportunities people and indirect employment to 15
E-commerce sector growth strengthened thelac demand for packaging solutions
individuals. Food packaging
The tissue paper segment is gaining traction on the back of enhanced hygiene awareness
Following a plastic ban in some countries, paperIndia bag
Trade and commerce are driving the copier,market,
is the
writingthe
fastest
and
and
growingare
packaging
printingdemand
increasing
paper
gaining traction
paper segments
~3- 4
Number of times a month that the
Literacy growth is driving demand for writingaddressed
and printing paper leading to a
by imports, average Indian eats out
With increased home food delivery, packaging paper
relative use has increased
under-utilisation of domestic
Threats manufacturing capacity. The Indian
Increasing digitalisation has had an adverse impact on paper demand
>1
paper industry operated at only Number of food deliveries per day in
The industry has been increasing its share of exports but tariff barriers and protectionist subsidies for Indiacompetitive
(in million) products have given
80% of its overall manufacturing
Export duties and taxes on wood exports are raising concerns. For instance, fibrous raw material represents the highest share of produ
capacity,could
There is a myth that increasing paper consumption considered low forglobal
moderate a capital-
green cover
intensive
(Source: Bloomberg, Businesswire, Marketwatch, Gordon and continuous process
Brothers) Education
industry. Owing to this, paper imports
increased19.69% to H4941 crores in ~15
H1 2019-20 compared to H4128 Number of schools in India (in lac)
crores during same period in the
previous year. 935
Number of universities in India
The Indian paper market can be
classified on the basis of raw material 39,931
and application. On the basis of raw Number of colleges in India
materials used, the market can be
categorised into waste and recycled
paper, wood and agro residue, of
which the waste and recycled paper E-commerce
665
segment is expected to grow faster
owing to growing concerns about
felling trees India’s total internet user base
in 2019 (in millions)
to produce pulp. On the basis of
application, the market can be classified
into writing and printing paper,
829
India’s projected total internet user
paperboard and packaging, newsprint base by 2021 (in millions)
and specialty paper. Of this, the
biggest share is accounted for by the US$ 49
paperboard and packaging segment, Overall transaction value of Indian e-commerce
which is expected to grow on the back market in 2019 (in billions)
of rising growth in the e-commerce
sector. The growing use of paper in US$ 91
food packaging is also expected to Projected overall transaction value of Indian's
e-commerce market by 2023 (in billions)
strengthen offtake. Writing and printing
paper accounts for the second biggest
share of the sector on the back of
growing policy-induced literacy.
56 | JK Paper
SWOT analysis of Indian paper industry
Strengths Weakness Opportunities Threats

Fastest growing paper market Low capacity utilisation Huge growth headroom Increasing raw material costs
Production of a wide paper variety
Highrange
water requirement Room for socio- economic development
Rising competition
Enhancing farmer incomes Capital-intensive Growing demand from some downstream
Digitalisation
sectors
replacing paper use
High employability Decrease in forested areas Innovative product create possibilities
Technological obsolescence
Recyclability of waste paper Most plants funded through debtUse of clonal development centresCOVID-19 outbreak pandemic affecting dem
Growing requirement of scale toBan
survive
on plastic creating an alternative paper market
Demand drivers
Demography and finance
Urbanisation
Age Increasing incomes Rising literacy levels
By 2030,
Approximately 66% of The nominal per- Government initiatives
approximately 40% of
India’s population is capita net national (Sarva Siksha Abhiyan and
the global population
below 35 years; the income in 2019-20 Mid-Day Meal Scheme)
could reside in urban
median age of the country was estimated at helped strengthen India’s
India (34% today),
is estimated at ~28 years H1,35,050, a rise of literacy rate from 65% in
catalysing paper
(global average 30). This 6.8% compared to 2001 to 74% in 2011 to
demand.
youthful population is H1,26,406 ~78% in 2018.
driving the use of writing during 2018-19,
and printing paper by strengthening paper
students and through e- demand.
Downstream sector commerce.
Newspaper
Health and Education
circulation
The readership of E-commerce boost hygiene The Union Budget 2019-20 allocated
The e-commerce awareness H94,853.64 crores for the education sector,
newspapers increased
sector is expected With increasing a y-o-y increase of ~H10,000 crores over
from 407 million
to grow on the back hygiene 2018-19. Of this, H56,536.63 crores was
readers in 2017 to 425
of urbanisation and awareness in estimated for school sector and
million readers at the
internet penetration, urban and rural H38,317.01 crores for higher education.
end of the first quarter
strengthening India, the demand With increasing spending on education by
of 2019, strengthening
packaging paper for medical grade the Government, the writing and printing
the demand for
demand paper (tissue) is paper market is estimated to grow further.
newsprint
gaining traction

COVID-19 impact on the Indian paper industry
Being a capital-intensive sector, a liquidity crunch owing to the virus outbreak could extend lockdowns and affect sectoral offtake
More than 40% of India’s pulp requirement comes from imports. Owing to the virus outbreak in various countries, global trade ha
11% of Indian produce is exported, standstill following the virus outbreak
India’s manufacturing sector is affected; real manufacturing GVA is expected to fall 5% in 2020-21 owing to a shutdown of factor
(Source: CRISIL)
Products review
Office and copier paper
The Company boasts of a diversified portfolio of office and copier paper across the value chain, covering the economic
to premium segments. These varieties find growing downstream application in printers, fax machines and
photocopiers.
Strengths
Frontrunner: JK Paper has been a market leader of copier paper on the back of impeccable quality and awareness campaigns dire
Brand recall: Leveraging a rich legacy coupled with the qualitative excellence and customer-centricity of the Company, JKPL has
State-of-the-art facilities: The Company leverages its integrated state-of-the-art plants, empowered by cutting-edge technology
Highlights, 2019-20
Manufactured 2,13,486 tonnes of copier and office paper
Exported 34,259 tonnes copier and office paper
Forayed into retail distribution to strengthen customer- centricity
Packaging boards
The packaging board market in India has been growing rapidly on the back of a growing demand from the FMCG, food &
beverage, pharmaceutical and textile sectors. Further, with increasing internet penetration, the e-tail market built traction. The
Company offers a range of high-end coated packaging boards to service downstream needs.
58 | JK Paper
Strengths
Strategic location: The Company produces packaging board at its Unit CPM in Gujarat, proximate to the key markets in Wester
Qualitative excellence: On the back of continuous R&D measures coupled with cutting- edge technologies, the Company has deve
Highlights, 2019-20
Sold over 95,399 tonnes (Including exports) of packaging boards in the year under review
Exported 412 tonnes of packaging board in the year under review

Office and copier paper
Coated paper is a niche sector in India with 67% demand addressed by global players. JK Paper is one of only two Indian
companies manufacturing coated paper. The Company leverages its ability to provide customised products. Depending
on international prices, the Company imports coated paper that find application in magazines, books, brochures, posters
and wedding cards, among others.
Strengths
The Company has established respect for a superior quality of customised products The Company provides timely product delivery
Highlights, 2019-20
Sold 49,086 tonnes of coated paper
Maplitho and speciality papers

The Company produces uncoated writing and printing paper, which find downstream applications in MICR cheque paper,
parchment, ledger and bond varieties, among others. The Company produces quality customised maplitho paper.
Strengths
Diversified portfolio of maplitho paper 54 GSM to 160 GSM Superior customer focus arising out of customised products Longstanding rel
Highlights, 2019-20
Sold 93626 tonnes of maplitho and speciality paper
Launched JK Ecosip, JK Sublime, JK Oleoff, JK Digi Roll, JK Pharma Print, JK Devine,
JK Cup Stock, colour printing and photocopy paper and anti fungal boards (for soap wrapping) during the year under review.
Functional review
Raw material management
JKPL is a responsible paper manufacturer management and emerged as one of and Andhra Pradesh. The Company’s
with its own plantation and clonal the cost leaders in the industry aided farm forestry initiative proved to be a
development centre, which makes the by the Company’s increased sourcing of game-changer. This not only enhanced
Company self-dependent. In the past, hardwood from within a 200-kilometre- sustainable livelihoods across rural
JK Paper sourced wood from as far as radius of its manufacturing facilities. districts but also provided farmers with
1200 kms owing to the scattered nature As of 31st March, 2020 the plantation consistent incomes and prospects of
of raw materials, increasing logistics area of the Company was estimated equitable realisations. The proportion of
costs. Over the years, the Company at 173,000 hectares across Gujarat, resources derived by the Company from
60 | JK Paper
increasingly invested in raw material Maharashtra, Chhattisgarh, Odisha the farm forestry initiative increased fast.
Human resources
JK Paper believes that in an industry Company focused on employee Places to Work, rating it among India’s 30
marked by the limited availability of training in behavioural skills, business leading manufacturing companies. The
skilled manpower, human resources excellence, managerial skills, advanced Company’s customer-centricity (internal
management plays a vital role. The management, leadership skills, customer and external), helped strengthen
Company enjoys a strong brand as orientation, safety, values and code of retention to 92%; it emerged among 25
an employer enjoying high retention. conduct. leading Indian companies across the
During the year under review, the The Company was accredited by Great Employee Trust Index.

Procurement
JK Paper extensively focused on far as 1200 kms ten years ago to a 200 to as low as 2.5 years for some varieties,
procurement over the past few years. km radius. Further, the Company has which, in turn has increased tonnage
On the back of this extensive focus, maintained a longstanding relations and cash generation. This has helped
the with farmers, which has helped reinforce the Company become an established
Company initiated plantations and clonal sustainability. This extensive focus on farm forestry player, with optimised costs
development centres, which have not procurement has reduced the gestation procurement, giving cost advantage
only made the Company self-dependent, period of clonal saplings from 5 years over peers.
but also reduced its sourcing from as
Product development
JK Paper has the most diversified product advantage of being flexible enough for focus on food grade and food safety
portfolio in the industry, the Company shorter customisable runs, validating our packaging, the food packaging industry
emerging as the segment leader in customer-centricity and strengthening is seeing a paradigm shift from plastics to
premium office papers, packaging our brand recall. paper with oil and water resistance aided
boards, speciality papers and security by moisture and oxygen barrier and
JK Paper is also a responsible producer
papers. To enrich the product basket heat sealable capabilities. JKPL is
and the Company’s objectives have
and mitigate challenges posed by positioned to take advantage of this shift
been in line with the latest trends of
the smaller paper machines of being and has been launching new products in
increasing focus towards recyclability and
actively exposed to competition this niche category to capture higher
eco- friendliness. On the back of
from value. In the year under review the
increasing awareness and striving to
large machines, which enjoy economies Company produced new products,
diligently follow stringent environment
of scale, the Company undertook a namely JK Pharma Print, JK Devine, JK
norms helped the Company emerge
customer-centric approach. JKPL actively Carry, JK OleOff, JK Ecosip and JK HSMT,
wood and carbon-positive.
engage with customers to understand among others. The Company is also
their needs better and become a Riding on the back of new mandates working on new products under various
solution provider. Furthermore, the of FSSAI coupled with the increasing stages of development.
small paper machines also enjoy a
specific
Risk management
Economic risk: Any slowdown in the economy on account of economic or general health reasons could have an adverse impact o
Mitigation: Despite the slowdown, India’s economic performance is expected to outperform G20 economies in 2020-21.
Digitisation risk: In a rapidly digitising world, paper demand could decline.

Mitigation: The Company is servicing customers with superior, customised and differentiated products. Besides, the
Company’s retail distribution focus should help create new markets.
62 | JKCompetition
Paper risk: The entry of new players can moderate the Company’s market share.
Mitigation: On the back of robust brand recall, superior product quality and customer-centricity, JKPL has established itself as o
the copier segment). The growing focus sustainability has enhanced financial stability. A wide and deep distribution network co
Compliance risk: Inability to comply with statutory norms could invite censure.
Mitigation: The Company’s operations are compliant with Indian and global norms. The Company’s certifications (ISO 9001:2008
ISO 14001:2004 and ISO 45001) indicate stringent compliance with contemporary qualitative, environment and safety norms. The

Raw material risk: Raw material scarcity can affect profitability.
Resource risk: Excessive use of water, power and coal can affect profita
Mitigation: The Company has access to adequate plantations near
Mitigation:
its plantsThe
(Rayagada
Companyand
reduced
Songadh),
waterensuring
consumption,
local wood
usingsourcing.
low water-c
Th
clonal saplings to farmers, making it possible to generate among the lowest water-consuming paper companies
livelihoods, local prosperity, buyback flexibility, lower in India. The Company moderated coal and power
logistic costs and local sourcing. consumption using cutting-edge technologies and
alternative fuels.
Financial highlights (H crores)

2019-20 2018-19
Gross Sales 3,254.20 3469.19
Net Sales 3,014.13 3233.64
Profit before interest and depreciation and Tax (EBIDTA) 984.96 926.05
Profit before depreciation and tax (PBDT) 862.15 803.65
Profit before tax (PBT) 718.59 678.35
Profit after Tax (PAT) 492.71 437.20
DETAILS OF SIGNIFICANT CHANGES ( i.e. change of 25% or more compared to the immediate previous financial year
S. No. Particulars Definition UOM 2019-20 2018-19 % Change Remark for variation
(i) Inventory Turnover Inventory / Gross Turnover Days 50 34 -48% Due to COVID-19 pandemic
The Company recorded a 6% growth in its borrowings stood at 33% as on March The Company’s net debt-equity ratio stood
EBIDTA and clocked the highest-ever Profit 31, 2020. Approximately 16% of the at 0.40x during the year under review
after Tax (PAT) of H492.71 crores, a y-o-y Company’s gross borrowings of H1,370 compared to 2.03x in 2014-15, providing
growth of 12.7%. crores were in foreign currency. Of this, the Company the flexibility to address the
During the year under review, the 100% foreign currency loans covered cyclical impact on operations.
Company repaid debt and improved its interest rate variations and 74% covered The Company strengthened investor
performance, resulting in a long-term rating foreign exchange fluctuations using a mix engagements through quarterly investor
upgrade of approaches (Forward Contracts, Call conference calls and meetings.
to AA-/STABLE. The Company’s fixed rate Options and Spread Contracts).
Internal control systems and their adequacy Cautionary statement

The Company’s internal audit system has been continuously monitored
This statement
and updated
madeto ensure
in this section
that assets
describes
are safeguarded,
the Company’s
established
objective
re
and regulations. Actual results could differ materially from those eithe
64 | JK Paper
Statutory Section

Board’s Report
To the Members,
The Directors have pleasure in presenting the 59th Annual Report along with Audited Financial Statements of the Company for the financial year ended
31st March, 2020.
FINANCIAL RESULTS H in crores (10 million)

Particulars 2019-20 2018-19
Gross Sales 3,254.20 3,469.19
Profit Before Finance Costs and Depreciation & Tax (EBITDA) 984.96 926.05
Profit Before Depreciation and Tax (PBDT) 862.15 803.65
Profit After Tax (PAT) 492.71 437.20
DIVIDEND consolidated audited financial statements of the Company as on 31st

In view of improved operating results, your Directors had declared an March, 2019, respectively, the date reckoned for calculating eligible
interim dividend of 40% (H4/- per share) on the Equity Share Capital amounts.
on 27th February 2020. The Total Dividend outgo including the Dividend
At the Maximum Buyback Price and for the Maximum Buyback Size, the
Distribution Tax amounted to H85.95 crores. The Board has
indicative maximum number of Equity Shares bought back would be
recommended that the interim dividend declared by it be considered
76,92,307 (“Maximum Buyback Shares”) which is 4.32% of the total number
as the final dividend for the financial year ended 31st March 2020.
of fully paid-up Equity Shares of the Company. If the Equity Shares are
BUYBACK OF EQUITY SHARES bought back at a price below the Maximum Buyback Price, the actual
Encouraged by the financial performance and healthy cash position, the number of Equity Shares bought back could exceed the indicative
Board has approved Buyback by the Company of its Equity Shares through Maximum Buyback Shares.
the open market route from the Stock Exchanges. This is done with the RESERVES AND APPROPRIATIONS
objective of returning surplus funds to shareholders, improving return
The amount available for appropriation, including surplus from the
on equity, optimising capital structure and improving earnings per
share, thereby leading to long term increase in shareholders’ value. The year stood at H1243.39 crores. The Directors propose this to be
appropriated as under:
maximum amount approved is H100 crores (Maximum Buyback size) at
H in crores (10 million)
a maximum price of H130 per Equity Share (Maximum Buyback price).
The Maximum Buyback Size will represent 5.67% and 5.71% of the
aggregate of the total paid-up Equity Share capital and Free Reserves
(including Securities Premium Account) of the Company based on the
standalone and
General Reserve 200.00
Dividend for 2018-19/2019-20 133.69
Corporate Dividend Tax 27.47
Surplus carried to Balance Sheet 882.23
66 | JK Paper
PERFORMANCE REVIEW employees and workers on safeguards against COVID-19. Thermal
Your Company recorded its best ever financial performance with its temperature measurements at the entry and exit gates, mandatory use of
highest ever EBIDTA at H984.96 crores (an increase of 6% over previous face masks, hand washing and sanitizing facilities at entry and exit and at
financial year). Profit Before Tax at H718.59 crores was higher by 6% and different locations of the plant have been put in place along with strict
Profit After Tax was H492.71 crores higher by 13% over previous financial ban on non-essential visitors. Safeguards for social distancing at work
year. Gross Sales were H3254.20 crores and capacity utilization during place is also being implemented. Meetings, gatherings, travelling etc.
the financial year ended 31st March 2020 was 111% despite COVID-19 are being avoided with focus on video conferencing and other digital
interruptions during the close of the said financial year. modes.
The better performance was possible due to higher capacity The outlook for FY 2020-21 is heavily influenced by the impact of
utilization, lower raw material and other input cost and improved COVID-19 and the uncertain time it might take the economy and
operating efficiencies. JK Paper continued its thrust on expanding paper markets to come back to normalcy. Much will depend upon the
geographical reach and availability of its products by strengthening the time by which the COVID-19 disease is tamed and the economy gets back
distribution network and responding to market needs by on its feet. Some sectors are faced with liquidity issues and some with
introducing new products. The Company’s efforts at promoting solvency issues and several key sectors with both. While RBI has
plantation activity in the vicinity of its manufacturing units resulted in a announced several high promise measures, the percolation of these
greater proportion of raw material requirement being met out of measures seem rather tepid given the risk awareness of key lenders –
material sourced from shorter distances. This has cut down the total Banks and NBFCs. The expected but delayed stimulus package for industrial
delivered cost of wood at our units. Both the Units (Unit JKPM and and economic revival will have a great bearing on the quality and speed
Unit CPM of the Company) continued to improve their operating of revival.
efficiencies to optimize utilization of most inputs. The Company’s
Based on the order flow and dispatches after recommencement of
operating performance ranks among the best in the domestic paper
operations, feedback from key market players and convertors
industry.
operations are expected to get back to normalcy only by third quarter
Lower debt and more efficient working capital management enabled of FY 2020-21. The Company is actively looking at exports besides
the Company to maintain finance costs despite making investments in expanding its product basket even those with lesser margins to operate
the new project and funding the acquisition of The Sirpur Paper Mills the machines at optimal levels. With these the plants are expected to reach
Ltd. during the previous financial year. Despite an increase in Depreciation full productive capacity by the second quarter of FY 2020-21. Within its
from H125.30 crores to H143.56 crores, Profit Before Tax stood at H718.59 product basket, packaging board segment is experiencing good demand
crores compared to H678.35 crores last year, showing an increase of 6%. due to higher demand from pharma, food processing and FMCGs.
The Industry scenario both domestic and overseas, the market and The Company believes that it can manage the extreme event with its cash
demand supply balance and other operating conditions are elaborated balances, liquid investments and undrawn bank limits.
in the Management Discussion and Analysis section, forming part of this
Annual Report. PROJECT EXPANSION
The Company commenced Virgin Fibre Boards (VFB) production in the
COVID-19 AND OUTLOOK FOR FY 2020-21 financial year 2007-08 with an initial capacity of 60,000 TPA at its Unit CPM
Due to outbreak of COVID-19 pandemic, the Company had to which was enhanced to 90,000 TPA in the financial year 2013-14. The
temporarily suspend operations at both its manufacturing facilities - Unit current production from this facility exceeds 100,000 TPA. This segment
CPM at Fort Songadh, Gujarat and Unit JKPM at Rayagada, Odisha in the has grown at 12% CAGR during the last 5 years and is expected to
last week of March 2020 in compliance with the directives of the maintain its growth at double digit rates in the coming years due to
Central and respective State Governments. Operations had been resumed changes in organised retail and the quest for more eco-friendly, aesthetic
in the third week of April 2020 at both its Units. However, the and customer friendly packaging.
operations continue to be impacted by difficulty in procurement of
Looking at this growing demand particularly in the high end VFB and
raw materials, logistic issues both for procuring raw materials and
to build its market share, the Company had decided to set up a new
despatch of finished products, non-opening of markets. Due to
Packaging Board facility along with an integrated chemical pulp mill
prevailing uncertainty, the financial and operational impact of COVID-
at Unit CPM. Orders for critical equipments and some other areas have
19 is being evaluated by the Company. The Company has put in place
been placed and civil construction started in November 2019. The
“Standard Operating Procedure” (SOP), as per the guidelines and directives
estimated capital cost is about H1935 crores (net of GST). Once completed
of the Ministry of Home Affairs and the Ministry of Health, to safeguard
the capacity for VFB will increase to 270,000 TPA along with a pulping
against spread of COVID-19. The Company has organized campaigns to
capacity of 160,000 TPA. The new project is likely to take 24 months
bring awareness amongst all
from zero date to commence production. Post completion of this
project the JK Paper will be the second

largest producer of VFB in the country with the capacity of 270,000 TPA
During the year under review, there has been no change in the capital
along with a pulping capacity of 160,000 TPA. structure of the Company. As on March 31, 2020 the Authorised Share
The Company also made several de-bottlenecking and cost optimising Capital was H500 crores and Paid-up capital was H178.24 crores.
investments in critical areas like head box, steam and power systems, The Company has been able to achieve financial closure for its
finishing equipment, refiners, chemical processing, effluent discharge Packaging Board Project from a clutch of Indian and foreign banks. With
etc. in its existing facilities during the year totalling over H79 crores. a view to optimise costs, the Company has contracted 43% of these in
foreign currency.
PROGRESS AT THE SIRPUR PAPER MILLS LTD.
During the previous financial year 2018-19, the Company alongwith its In order to optimise cost of working capital funds, the Company has
subsidiary had acquired The Sirpur Paper Mills Ltd. (SPML) under the accessed the Commercial Papers (CPs) market during the year. Over time
Insolvency and Bankruptcy Code (IBC/Code). Your Company was one of with a mixture of CPs, Buyers and Suppliers Credit in foreign currency
the earliest successful applicant under the then newly enacted Code. The and Working Capital Demand Loan, the Company hopes to further reduce
Resolution Plan of the Company was approved by the Hon’ble National its cost of borrowing.
Company Law Tribunal (NCLT), Hyderabad Bench on 19th July 2018. The The Company’s improved performance and reduced leveraging
Company after settling the debts of the financial and operating creditors enabled it to get a rating upgrade to AA – (minus)/Stable for long
as ordered by the NCLT, took over SPML and started revival activities term debt and A1+ for short term debt.
w.e.f. 1st August 2018.
COMPLIANCE WITH SECRETARIAL STANDARDS
The acquisition was expected to provide synergies of a strategically
located 3rd site near to sources of raw material with closer access to Coal The applicable Secretarial Standards issued under Section 118 of the
and plenty of water. SPML commenced its commercial production on Companies Act 2013 (the Act) have been complied with.
24th May 2019 on Machine 7 alongwith Boilers and Turbines. After
AWARDS AND RECOGNITION
some challenges in stabilising operations all the machines (including
Machines 3, 8, and 6 alongwith all allied equipment) commenced Our commitment towards Safety & Environment, Quality &
commercial production on 1st March 2020 after due refurbishment. Operational Excellence and HR practices continue to garner
There was an additional investment of H210 crores compared to earlier appreciation from various industry chambers and social bodies. Some
estimates which were met from funds lent by the Company. of the accolades and awards received during the year are as follows:
Before the COVID-19 lockdown, SPML had ramped up its production a. Recognised as ‘India’s Best Workplaces in Manufacturing 2020’ -
and achieved highest production of 286 tons from the Pulp Mill Top 30 Great Place to Work
(against a rated capacity of 323 tpd) and 320 tons (rated capacity of 400 b. Awarded Pollution Control Excellence Award-2019 for effective
tpd) from the Paper Machines. In the month of March, 2020 (up to 21st pollution control measures and sound environmental practices
March, before COVID-19 lockdown) the Company achieved about 70% among all manufacturing units in Odisha
of the capacity based on actual number of working days. Progress is also
being made on improving the quality parameters of the final products to c. Safety, Health & Environment Excellence Award by CII, Eastern
meet customer requirements and expectations. Region
In second phase, the project activities for setting up energy efficient 130 d. National Safety Award for excellent performance in industrial safety
Ton per hour high pressure Boiler and 20 MW high pressure Turbine and achieving accident free year-2017 by DGFASLI,
along with its utilities are in progress. This project with an investment of Central Government of India
over H175 crores which will replace the existing low pressure CF Boilers e. Energy Conservation Award 2019 - 2nd Runners up and achieved
and Turbines will have significant savings on energy cost on production. 5 Star rating in the Large-Scale Industries Category by CII, Eastern
Region
The total project cost, as per current estimates including Phase II is
H897 crores. This includes the amount settled with the erstwhile creditors f. National Awards for Manufacturing Competitiveness 2018-
of H371 crores. This is being funded by Term Loans from Banks, Capital 19 (Gold Award) by International Research Institute of
Subsidy from the Government of Telangana, and issue of Equity/Preference Manufacturing
Capital/loan from the Company.
g. Kalinga CSR Award 2018 in Gold Category as the most
CAPITAL STRUCTURE innovative and transformational CSR in Odisha organised by the
IQEMS & IPE HYD
68 | JK Paper
h. Odisha’s “Brand Leadership Award 2020” and “Best Employer
The Related Party Transaction Policy as approved by the Board is
Brand Award 2020” by CMO Global & World HRD Congress
available on the website of the Company.
i. Best paper award for paper on plantation research and
development at Paperex 2019 - 14th International Conference DIRECTORS AND KEY MANAGERIAL PERSONNEL
Shri Dhirendra Kumar, retires by rotation and being eligible offers
j. Received 10th CII National HR Excellence Award for Strong
himself for re-appointment at the ensuing Annual General Meeting
Commitment to HR Excellence in year 2019-20
(AGM).
INDUSTRIAL RELATIONS During the year under review, Smt. Deepa Gopalan Wadhwa was
Industrial Relations at both units of the Company continued to remain appointed as Non-Executive Independent Director of the Company
peaceful and cordial throughout the year barring some minor w.e.f. 27th June, 2019 for a period of three consecutive years and the
incidents which were amicably resolved by continuous dialogues and requisite resolution in this regard was passed by the Shareholders at the
support by our existing unions, worker’s representatives, local Annual General Meeting held on 23rd August, 2019. The Board is of the
stakeholders and district administration. We value the long association of opinion that Smt. Deepa Gopalan Wadhwa has high integrity and relevant
our employees including contractors and their workmen to sustain experience.
industrial harmony and create a positive work environment; we justly All the Independent Directors of the Company have given requisite
valued the long association with all categories of contract labours and declarations that they meet all the criteria of independence as
have conferred additional benefits over & above statutory dues. By provided in Section 149(6) of the Act and also Regulation 16(1)(b) of
introducing various new work practices along with automation we the Listing Regulations and that they are not aware of any
have succeeded in enhancing manpower productivity & attendance to circumstances or situation, which exist or may be reasonably anticipated,
the optimum. We encourage continuous interaction, dialogues and that could impair or impact their ability to discharge their duties with
participation of local villagers and other stakeholders in collaborating an objective independent judgment and without any external influence
various social intervention. and have also complied with Rule 6(1) and 6(2) of the Companies
EXTRACT OF ANNUAL RETURN (Appointment and Qualification of Directors) Rules 2014.
An extract of the Annual Return as on financial year ended 31st There was no other change in the Directors or Key Managerial
March 2020 in the prescribed form MGT-9 is annexed to this Report as Personnel of the Company, during the year under review.
Annexure-1 and forms part of it.
INTERNAL CONTROL SYSTEM
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS The Company follows a robust internal control mechanism across all
The particulars of loans, guarantees or securities and investments covered offices, plants and key functions. There is a Corporate Internal Audit team
under the provisions of Section 186 of the Act are given in the financial consisting of qualified professionals and system experts. In addition,
statements. services of external Audit firms and other specialized agencies are
also availed to further strengthen its effectiveness. Regular internal
The Company has not made any provision during the financial year
audits are conducted to review the internal control systems and
2019-20 for the purchase of, or subscription for, shares in the Company by
compliance thereof as per the annual audit plan approved by Audit
trustees of JK Paper Employees’ Welfare Trust for the welfare of the
Committee of the Board. The findings of the Audit team are
employees of the Company, for the shares to be held by or for the benefit
periodically reviewed by the Audit Committee and corrective actions
of the employees of the Company.
are initiated. In addition, the Company also follows a Compliance
RELATED PARTY TRANSACTIONS monitoring software tool to capture status of all applicable statutory
compliances on line.
During the financial year ended 31st March 2020, all the contracts or
arrangements or transactions entered into by the Company with the The Company has also developed a set of documented Risk Control
Related Parties were in the ordinary course of business and on arm’s length Matrices for all major functions and no material reportable weakness was
basis and were in compliance with the applicable provisions of the Act observed during the year.
and SEBI (Listing Obligations & Disclosure Requirements) Regulations,
The Company also has a comprehensive budgetary control system in sync
2015 (Listing Regulations).
with its Strategic Business Plan. Key performance targets are set for each
Further, the Company has not entered into any contract or Plant and product lines. The actual performance against these targets is
arrangement or transaction with the Related Parties which could be periodically monitored and corrective actions as needed are initiated.
considered material in accordance with the Policy of the Company on
materiality of Related Party Transactions. In view of the above, disclosure
in Form AOC-2 is not applicable.

CORPORATE SOCIAL RESPONSIBILITY conducted by the said firm and the Report will also be filed with the
Your Company considers the community as its key stakeholder and is Ministry of Corporate Affairs, Government of India.
one of the foremost proponents of inclusive growth and has continued
to undertake projects for overall development and welfare of the SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE
society in the fields of environment, conservation of natural REGULATORS OR COURTS OR TRIBUNALS
resources, health, education, rural development and livelihood During the year under review, there were no significant and material
interventions etc.. In line with its belief of considering Community as orders passed by the Regulators or Courts or Tribunals which would
its key stakeholder and being sensitive to the needs of the community, impact the going concern status of the Company and its future
during the recent outbreak of COVID-19 pandemic, the Company took operations.
several initiatives at Community level across its plant locations by
undertaking distribution of food kits, face masks, hand sanitisers to needy MATERIAL CHANGES AND COMMITMENTS
families and sanitisation of areas around its plant locations. In addition, The Company has finalized contracts/purchase orders for its proposed
the Company also assisted the local administration in taking various project at Unit CPM. The details of expenditure are given in the para on
preventive and safety measures. Project Expansion.
The Company has a Corporate Social Responsibility (CSR) Policy in CONSERVATION OF ENERGY ETC.
accordance with the provisions of the Act and rules made there under.
The details as required under Section 134(3)(m) of the Act read with the
The contents of the CSR Policy are disclosed on the website of the
Companies (Accounts) Rules, 2014 is annexed to this Report as
Company.
Annexure-4 and forms part of it.
Annual Report on the CSR activities undertaken by the Company during
the financial year ended 31st March 2020, in the prescribed format is PARTICULARS OF REMUNERATION
annexed to this Report as Annexure-2 and forms part of it. Disclosure of the ratio of the remuneration of each Director to the
median employee’s remuneration and other requisite details pursuant
AUDITORS to Section 197(12) of the Act read with Rule 5(1) of the Companies
(a) Statutory Auditors and their Report (Appointment and Remuneration of Managerial Personnel) Rules, 2014,
M/s Lodha & Co., Chartered Accountants, have been appointed as is annexed to this Report as Annexure-5 and forms part of it. Further,
Auditors of the Company to hold office from the conclusion of the Particulars of Employees pursuant to Rule 5(2) & (3) of the above Rules,
56th Annual General Meeting (AGM) held in the year 2017 till also form part of this Report. However, in terms of provisions of Section
the conclusion of 61st AGM of the Company to be held in the 136 of the Act, the Annual Report for the financial year 2019-20 is being
year 2022. The observations of the Auditors in their report on sent to all the members of the Company and others entitled thereto,
Accounts and the Financial Statements, read with the relevant excluding the said particulars of employees. Any member interested in
notes are self explanatory. The Audit Report does not contain any obtaining such particulars may write to the Company Secretary. The said
qualification, reservation, adverse remark or disclaimer. information is also available for inspection at the Registered Office of the
(b) Secretarial Auditor and Secretarial Audit Report Company on working days during business hours.
The Board of Directors had appointed Shri Namo Narain
CORPORATE GOVERNANCE
Agarwal, Company Secretary in Practice as Secretarial Auditor to
carry out Secretarial Audit of the Company for the financial year Your Company reaffirms its commitment to the highest standards of
2019-20. The Report given by him for the said financial year in the corporate governance practices. Pursuant to Regulation 34 read with
prescribed format, pursuant to the provisions of Section 204 of the Schedule V of the Listing Regulations, Management Discussion and
Act and Regulation 24A of the Listing Regulations, is annexed to Analysis, Corporate Governance Report and Auditors Certificate regarding
this Report as Annexure-3 and forms part of it. The Secretarial compliance of conditions of Corporate Governance are made part of
Audit Report does not contain any qualification, reservation, adverse this Annual Report.
remark or disclaimer. The Corporate Governance Report which forms part of this Annual
(c) Cost Auditors and Cost Audit Report Report also covers the following:
In accordance with the provisions of Section 148(1) of the Act, the a) Particulars of five Board Meetings held during the financial year
Company has maintained cost accounts and records. The Cost Audit under review.
for the financial year ended 31st March 2019 was conducted by
M/s R.J. Goel & Co., Cost Accountants, Delhi and as required Cost b) Policy on Nomination and Remuneration of Directors, Key
Audit Report was duly filed with the Ministry of Corporate Affairs, Managerial Personnel and Senior Management including, inter alia,
Government of India. The Audit of the Cost Records for the the criteria for performance evaluation of Directors.
financial year ended 31st March 2020, is being c) The manner in which formal annual evaluation has been made
70 | JK Paper
by the Board of its own performance and that of its Committees and
DIRECTORS’ RESPONSIBILITY STATEMENT
individual Directors.
As required under Section 134(3)(c) of the Act, your Directors state that:
d) The details with respect to composition of Audit Committee and
establishment of Vigil Mechanism. (a) in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper
e) Details regarding Risk Management. f ) explanation relating to material departures, if any;
Dividend Distribution Policy. (b) the accounting policies have been selected and applied
g) Disclosures under the Sexual Harassment of Women at consistently and judgments and estimates made are reasonable and
Workplace (Prevention, Prohibition and Redressal) Act, 2013. prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year and of the profit of
SUSTAINABILITY AND BUSINESS RESPONSIBILITY REPORT the Company for that period;
Pursuant to Regulation 34(2)(f ) of the Listing Regulations, the (c) proper and sufficient care has been taken for the maintenance of
Sustainability and Business Responsibility Report of the Company for the adequate accounting records in accordance with the provisions of
financial year ended 31st March 2020 is given in a separate section and the said Act for safeguarding the assets of the Company and for
forms part of this report. preventing and detecting fraud and other irregularities;
CONSOLIDATED FINANCIAL STATEMENTS (d) the annual accounts have been prepared on a going concern basis;
The Consolidated financial statements of your Company for the (e) the proper internal financial controls to be followed by the
Financial Year 2019-20 have been prepared in accordance with the Act Company have been laid down and that such internal financial
and applicable Indian Accounting Standards. The Audited Consolidated controls are adequate and were operating effectively; and
Financial Statements together with Auditors’ Report form part of the
Annual Report. (f) ) the proper systems have been devised to ensure compliance
with the provisions of all applicable laws and that such systems were
A report on the performance and financial position of each of the adequate and operating effectively.
subsidiaries and joint ventures included in the Consolidated Financial
Statements is presented in a separate section in this Annual Report. ACKNOWLEDGEMENT
Please refer to Form AOC-1 annexed to the Financial Statements forming Your Directors acknowledge the unstinted support and cooperation
part of the Annual Report. received from the Central Government, State Governments,
Pursuant to the provisions of Section 136 of the Act, the Standalone Stakeholders, participating Financial Institutions and Banks,
audited financial statements, Consolidated audited financial Customers, Dealers and Suppliers.
statements along with relevant documents and separate audited The Board wishes to record its highest appreciation of the total
financial statements in respect of each of the subsidiaries are available commitment, dedication and hard work, put in by every employee and
on the website of the Company. member of the Team JK Paper.
During the year under review, no company has become or ceased to be
your Company’s subsidiary or joint venture or associate.
DEPOSITS
Pursuant to the approval of members by means of a Special Resolution
passed at the AGM held on 27th September 2014, the Company is
On behalf of the Board of Directors
accepting deposits from the public and its members, in accordance
with the provisions of the Act and rules thereunder. Place: New Delhi Bharat Hari Singhania
Date: 12th May, 2020 Chairman
The particulars in respect of the deposits covered under Chapter V of
the said Act, for the financial year ended 31st March 2020 is annexed
to this Report as Annexure-6 and forms part of it.

ANNEXURES TO THE BOARD’S REPORT
FOR THE YEAR ENDED 31st MARCH,
2020
Annexure -1
FORM NO. MGT 9

EXTRACT OF ANNUAL RETURN
As on the financial year ended on 31st March 2020
[Pursuant to Section 92 (3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management & Administration) Rules, 2014]
I.REGISTRATION & OTHER DETAILS:

1. CIN L21010GJ1960PLC018099
2. Registration Date 04.07.1960
3. Name of the Company JK Paper Limited
4. Category/Sub-category of the Company Public Company Limited by Shares/Non-Government Company
5. Address of the Registered office & contact details Registered office:
P. O. Central Pulp Mills – 394 660 Fort
Songadh, District Tapi, Gujarat Ph.No.:
91-2624-220228/ 220278-80 Fax No.:
91-2624-220138
Email ID: [email protected]
Website: www.jkpaper.com
6. Whether listed company Yes
7. Name, Address & contact details of Registrar and Transfer MCS Share Transfer Agent Limited
Agent, if any. F-65, 1st Floor, Okhla Industrial Area
Phase – I, New Delhi -110 020
Ph. No.: 91-11- 41406149-52
Fax No.: 91-11-41709881
Email ID: [email protected]
Website: www.mcsregistrars.com
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10 % or more of the total turnover of the Company shall be stated:
SI. No. Name and Description of main NIC Code of the Product/ % to total turnover of
products / services service the Company
1. Paper and Paper board 1701 100%
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

SI. No. Name and Address of the Company CIN/GLN Holding/ % of Shares Applicable
Subsidiary/ held Section
Associate
1 Jaykaypur Infrastructure & Housing Ltd. U45201OR2008PLC010523 Wholly Owned 100 2(87)
JK Paper Mills, Jaykaypur – 765 017, Rayagada, Odisha Subsidiary
2 Songadh Infrastructure & Housing Ltd. U45203GJ2009PLC055810 Wholly Owned 100 2(87)
P. O. Central Pulp Mills- 394660 Fort Subsidiary
Songadh, Distt.Tapi, Gujarat
72 | JK Paper
SI. No. Name and Address of the Company CIN/GLN Holding/ % of Shares Applicable
Subsidiary/ held Section
Associate
3 JK Paper International (Singapore) Pte. Ltd. 10 Not Applicable Wholly Owned 100 2(87)
Jalan Besar Subsidiary
#10-03, Sim Lim Tower Singapore
(208787)
4 JK Enviro-tech Ltd. U73100GJ2007PLC075963 Subsidiary 96.08 2(87)
P. O. Central Pulp Mills- 394660 Fort
Songadh, Distt.Tapi, Gujarat
5 The Sirpur Paper Mills Limited U21010TG1938PLC000591 Subsidiary 96.27* 2(87)
5-9-22/1/1, 1st Floor, Adarsh Nagar Hyderabad,
Telangana- 500063
*Represents aggregate % of shares held by the Company alongwith its subsidiary namely JK Enviro-tech Limited.
IV. SHAREHOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
(i) Category-wise Share Holding
Category of Shareholders No. of Shares held at the beginning of the No. of Shares held at the end of the year %
year (As on 1st April 2019) (As on 31st March 2020) Change
Demat Physical Total % of Total Demat Physical Total % of Total during
Shares Shares the year
A. Promoters*
(1) Indian
a) Individual/ HUF 1416443 0 1416443 0.79 3553643 0 3553643 1.99 1.20
b) Central Govt 0 0 0 0 0 0 0 0 0
c) State Govt(s) 0 0 0 0 0 0 0 0 0
d) Bodies Corp 84883568 0 84883568 47.62 83583568 0 83583568 46.89 -0.73
e) Banks / FI 0 0 0 0 0 0 0 0 0
f ) Any other 0 0 0 0 0 0 0 0 0
Sub-total (A)(1) 86300011 0 86300011 48.41 87137211 0 87137211 48.88 0.47
(2) Foreign
a) NRI –Individuals 0 0 0 0 0 0 0 0 0
b) Other –Individuals 0 0 0 0 0 0 0 0 0
c) Bodies Corp. 0 0 0 0 0 0 0 0 0
d) Banks / FI 0 0 0 0 0 0 0 0 0
e) Any Other 0 0 0 0 0 0 0 0 0
Sub-total(A) (2): 0 0 0 0 0 0 0 0 0
Total shareholding of 86300011 0 86300011 48.41 87137211 0 87137211 48.88 0.47
Promoter (A) = (A)(1) + (A)
(2)*
B. Public Shareholding
1. Institutions
a) Mutual Funds 1363766 0 1363766 0.77 1020197 0 1020197 0.57 -0.20
b) Banks / FI 129989 0 129989 0.07 500 0 500 0.00 -0.07
c) Central Govt 12021 0 12021 0.01 16835 0 16835 0.01 0
d) State Govt(s) 0 0 0 0 0 0 0 0 0
* The total shareholding of Promoters at (A) above includes 4,98,81,712 Equity Shares (27.98%) as on 1.4.2019, 75,09,983 Equity Shares (4.21%) as on
31.3.2020 and a change of 23.77% during the year pertaining to constituents of the Promoter Group as per SEBI (Issue of Capital & Disclosure
Requirements) Regulations, 2018. The same does not form part of the Promoters as defined in the Companies Act, 2013.

Category of Shareholders No. of Shares held at the beginning of the No. of Shares held at the end of the year %
year (As on 1st April 2019) (As on 31st March 2020) Change
Demat Physical Total % of Total Demat Physical Total % of Total during
Shares Shares the year
e) Venture Capital Funds 0 0 0 0 0 0 0 0 0
f ) Insurance Companies 1010448 0 1010448 0.57 400000 0 400000 0.22 -0.35
g) FPIs 10897457 0 10897457 6.11 12402279 0 12402279 6.96 0.85
h) Foreign Venture Capital 0 0 0 0 0 0 0 0 0
Funds
i) Others 0 0 0 0 0 0 0 0 0
Sub-total (B)(1): 13413681 0 13413681 7.53 13839811 0 13839811 7.77 0.24
2. Non-Institutions
a) Bodies Corp.
i) Indian 12838492 150 12838642 7.20 10753831 150 10753981 6.03 -1.17
ii) Overseas 0 0 0 0 0 0 0 0 0
b) Individuals
i) Individual shareholders 25035316 26621 25061937 14.06 30009848 26097 30035945 16.85 2.79
holding nominal share
capital upto H1 lakh
ii) Individual shareholders 29550040 4013500 33563540 18.83 24862736 4013500 28876236 16.20 -2.63
holding nominal share capital
in excess of H1 lakh
c) Others
(i) Trust and Foundation 1264978 0 1264978 0.71 1856598 0 1856598 1.04 0.33
(ii) Non Resident Individuals 2937776 297000 3234776 1.81 2930288 297000 3227288 1.81 0
(iii) OCB 2500000 0 2500000 1.40 2500000 0 2500000 1.40 0
(iv) Societies 5000 0 5000 0.00 0 0 0 0 0
(v) NBFCs registered with 61020 0 61020 0.03 16515 0 16515 0.01 -0.02
SEBI
Sub-total (B)(2): 74192622 4337271 78529893 44.06 72929816 4336747 77266563 43.35 -0.71
Total Public Shareholding 87606303 4337271 91943574 51.59 86769627 4336747 91106374 51.12 -0.47
(B)=(B)(1)+ (B)(2)
C. Shares held by Custodian 0 0 0 0 0 0 0 0 0
for GDRs & ADRs
Grand Total (A+B+C) 173906314 4337271 178243585 100 173906838 4336747 178243585 100 0
(ii) Shareholding of Promoters

SI. Shareholder’s Name Shareholding at the beginning of Shareholding at the end of the year (as % change
No. the year (as on 1st April 2019) on 31st March 2020) in
No. of % of total %of Shares No. of % of total %of Shares shareholding
Shares Shares Pledged / Shares Shares Pledged / during the
of the encumbered of the encumbered year
Company to total shares Company to total shares
1 Bengal & Assam Company Ltd. 36418299 20.43 - 79627228 44.67 - 24.24
Total 36418299 20.43 - 79627228 44.67 -
74 | JK Paper
(iii) Change in Promoters’ Shareholding (please specify, if there is no change)
SI. Shareholding at the beginning of Cumulative Shareholding during
No. the year (as on 1st April 2019) the year
No. of shares % of total shares No. of shares % of total shares
of the Company of the Company
1 Bengal & Assam Company Ltd.
At the beginning of the year 36418299 20.43 36418299 20.43
Increase in Shareholding due to Acquisition pursuant to 41923129 23.52 78341428 43.95
Scheme of Arrangement on 24.5.2019.
Increase in Shareholding due to Inter-se Transfer on 700000 0.39 79041428 44.34
14.6.2019
Increase in Shareholding due to Market Purchase on 585800 0.33 79627228 44.67
18.2.2020
At the end of the year i.e., 31.03.2020 79627228 44.67
(iv) Shareholding Pattern of top ten shareholders (Other than Directors, Promoters and Holders of GDRs and ADRs)
Sl. No. Top Ten Shareholders Shareholding at the beginning of Cumulative Shareholding at the end
the year (as on 1st April 2019) of the year (as on 31st March 2020)
No. of Shares % of total Shares No. of Shares % of total Shares
of the Company of the Company
1 P.K. Khaitan jointly with S.K. Somany-Trustees, JK 9828655 5.51 8423655 4.73
Paper Employees Welfare Trust
2 Edgefield Securities Limited 2500000 1.40 2500000 1.40
3 J.K. Credit & Finance Limited 3575000 2.01 2156000 1.21
4 Acadian Emerging Markets Small Cap Equity Fund 1334129 0.75 1396757 0.78
LLC
5 LSV Emerging Markets Small Cap Equity Fund, LP** - - 1242800 0.70
6 Pulp and Paper Research Institute 1237978 0.69 1237978 0.69
7 Dolly Khanna 1910749 1.07 1042422 0.58
8 Nav Bharat Vanijya Limited Apeejay 1191000 0.67 1036200 0.58
9** Securities Private Ltd - - 1000000 0.56
10** Deepa Bagla Financial Consultants Private Limited - - 940688 0.53
11 BMF Investments Limited 30089797 16.88 Amalgamated with Bengal & Assam
12 Florence Investech Limited 11833332 6.64 Company Limited
Note: Around 98% of the Shares of the Company are held in dematerialized form and are traded on daily basis. Therefore, the date wise
increase/decrease in shareholding is not indicated.
** were not a part of top 10 shareholders in last financial year but forming part of top 10 shareholders as on 31.03.2020.

(v)Shareholding of Directors and Key Managerial Personnel
1. Shri Bharat Hari Singhania, Chairman
For each of the Directors and KMP Shareholding at the beginning Cumulative Shareholding
of the year (as on 1st April 2019) during the Year
No. of shares % of total shares No. of % of total shares
of the Company shares of the Company
Increase in Shareholding due to market purchase on 28.6.2019. 105600 0.06 205600 0.12
Increase in Shareholding due to market purchase from 16.3.2020 to 40000 0.02 245600 0.14
17.3.2020.
At the end of the year i.e. 31.03.2020 245600 0.14
2. Shri Harsh Pati Singhania, Vice Chairman & Managing Director
19.3.2020
3. Smt. Vinita Singhania, Director
18.3.2020
Note: Sh. Arun Bharat Ram, Sh. Dhirendra Kumar, Sh. M.H. Dalmia, Sh. R V Kanoria, Sh. Sandip Somany, Sh. Shailendra Swarup, Sh. Udayan Bose, Sh. S.K.
Roongta and Smt. Deepa Gopalan Wadhwa, Directors and Sh. A.S. Mehta, President & Director of the Company and Sh. V. Kumaraswamy, Chief
Finance Officer and Sh. Suresh Chander Gupta, Vice President & Company Secretary of the Company were not holding any shares in the Company at the
beginning of the year, i.e. as on 1st April 2019 and at the end of the year i.e. as on 31st March 2020 and hence there was no increase/decrease in their
shareholding during the financial year 2019-20.
76 | JK Paper
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
(H in crores)
Secured Loans Unsecured Deposits Total
excluding deposits Loans Indebtedness
Indebtedness at the beginning of the financial year
i) Principal Amount 1,317.30 - 32.41 1,349.71
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 7.67 - 2.59 10.26
Total (i+ii+iii) 1,324.97 - 35.00 1,359.97
Change in Indebtedness during the financial year
• Addition 237.57 74.54 22.26 334.37
• Reduction 289.54 10.83 16.75 317.12
Net Change -51.97 63.71 5.51 17.25
Indebtedness at the end of the financial year
i) Principal Amount 1,268.46 63.71 38.07 1,370.24
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 4.54 - 2.44 6.98
Total (i+ii+iii) 1,273.00 63.71 40.51 1,377.22
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A.Remuneration to Managing Director, Whole-time Directors and/or Manager
(H in crores)
SI. No. Particulars of Remuneration Name of MD/WTD/Manager Total
Sh. Harsh Pati Sh. A.S. Mehta Amount
Singhania (Vice (President &
Chairman & Managing Director)
Director)
1. Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 7.73 3.73 11.46
1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 0.83 0.13 0.96
(c) Profits in lieu of salary under section 17(3) Income- tax Act, 1961 - - -
2 Commission - as % of profit 16.75 0.30 17.05
3 Others: Contribution to Provident Fund and Insurance 0.65 0.16 0.81
4. Total (A) 25.96 4.32 30.28
Ceiling as per the Act H73.64 crores (being 10% of the net profits of the
Company calculated as per Section 198 of the
Companies Act, 2013)
(The Company does not have Sweat Equity/Scheme for stock option).

B.Remuneration to other Directors
(H in crores)
SI. No. Particulars of Name of Directors Total
Remuneration Amount
1. Independent Directors Sh. Arun Sh. M.H. Sh. R. V. Sh. Sh. Sh. Smt.
Bharat Dalmia Kanoria Sandip Udayan Shailendra Deepa
Ram Somany Bose Swarup Gopalan
Wadhwa #
• Fee for attending Board/ 0.04 0.01 0.08 0.02 0.05 0.03 0.03 0.26
Committee Meetings
• Commission 0.17 0.17 0.17 0.17 0.17 0.17 0.13 1.15
Total (1) 0.21 0.18 0.25 0.19 0.22 0.20 0.16 1.41
2 Other Non-executive Sh. Bharat Hari Singhania Sh. Dhirendra Smt. Vinita Shri S.K.
Directors (Chairman) Kumar Singhania Roongta
• Fee for attending Board 0.08 0.03 0.03 0.03 0.17
/Committee Meetings
• Commission 2.00 0.17 0.17 0.17 2.51
Total (2) 2.08 0.20 0.20 0.20 2.68
Total(B)= (1+2) 4.09
Total Managerial 34.37
Remuneration * (A+B)
Overall Ceiling as per the Act H81.00 crores (being 11% of the net profits of the Company as per Section 198 of the Companies Act,
2013). In addition, the Company can pay Sitting fees @ H1 lakh to each of the Directors for each of the
meetings of the Board and its Committees attended by him/her.
* Total Managerial Remuneration to Vice Chairman & Managing Director, President & Director and other Directors (being the total of A and B) includes,
sitting fees of H0.43 crores.
# Appointed w.e.f. 27th June 2019
C.Remuneration To Key Managerial Personnel Other Than MD/Manager/WTD
(H in crores)
SI. No. Particulars of Remuneration Key Managerial Personnel Total
Sh. V. Kumaraswamy, Sh. Suresh Chander
Chief Finance Officer Gupta, Vice President
& Company Secretary
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income- tax 3.04 0.92 3.96
Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 0.02 0.003 0.023
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 - - -
2 Others: Contribution to Provident Fund and Insurance 0.09 0.002 0.092
Total 3.15 0.93 4.08
(The Company does not have Sweat Equity/Scheme for stock option. Commission-Not Applicable)
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES

There were no penalties, punishment or compounding of offences during the year ended 31st March, 2020.

Place: New Delhi Bharat Hari Singhania
78 | JK Paper
Annexure -2
ANNUAL REPORT ON CSR ACTIVITIES UNDERTAKEN BY THE
COMPANY DURING THE FINANCIAL YEAR ENDED 31ST MARCH 2020
1. A brief outline of the Company’s Corporate Social Responsibility 2. The Composition of the CSR Committee:
(CSR) Policy, including overview of projects or programs
The CSR Committee comprises of the following Directors:
proposed to be undertaken and a reference to the web-link to the
CSR policy and projects or programs- • Shri Harsh Pati Singhania (Chairman of the Committee), Non-
Independent
The Company has been one of the foremost proponents of
inclusive growth and has been undertaking projects for overall • Shri Shailendra Swarup, Independent
development and welfare of the society through its CSR • Shri A.S. Mehta, Non-Independent
initiatives in areas pertaining to promoting preventive healthcare,
3. Average Net Profit/(Loss) of the Company for last three financial
education, rural development, environmental sustainability and
years: H415.71 crores.
conservation of natural resources, etc.
4. Prescribed CSR Expenditure (two percent of the amount as in item 3
The Company has framed a CSR Policy as required under Section
above): H8.31crore.
135 of the Companies Act 2013. The details of the CSR Policy has
been posted on the website of the Company and the web-link for the 5. Details of CSR spent during the financial year
same is http://www.jkpaper.com/images/pdf/ Corporate-Social-
a. Total amount to be spent for financial year: H8.31crore
Responsibility-Policy.pdf
b. Amount unspent, if any: H0.68 crores
c. Actual Amount spent during the financial year: H7.63 crores
Sl. CSR project or activity Sector in which the project is Projects/programs (1) Amount Amount Cumulative Amount spent
No. identified covered Local area/others- (2) outlay spent on the expenditure Direct or through
Specify the State and (budget) projects or upto the implementing
district where projects project or programs reporting agency
or Programs were programs- Subheads: period (H in crores)
undertaken wise (1)Direct (H in crores)
(H in expenditure
crores) on projects or
programs (2)
Overhead:
(H in crores)
(1) (2) (3) (4) (5) (6) (7) (8)
1.1 Mobile Medical Camps Eradicating hunger, poverty and Local (Tapi, Gujarat)
malnutrition, promoting health
1.2 Managing Sickle Cell Local (Tapi, Gujarat)
care including preventive health
Anaemia
care and sanitation including
1.3 Eye Care contribution to the Swachh Local (Tapi, Gujarat)
1.4 Health Camps Bharat Kosh set-up by the Central Local (Rayagada, Odisha) SPARSH 0.87
Government for the promotion of
sanitation and making available safe
1.5 Critical care Supports drinking water. Local (Rayagada, Odisha)
1.6 Combating Malnutrition Local (Tapi, Gujarat)

2.05 1.95 1.95
1.7 Diagnostic and Treatment Others (Delhi)
Support to BPL patients at
PSRI
1.8 Cancer Support Others (Gurgaon,
Haryana) DIRECT 1.08
1.9 Providing safe drinking water Local (Tapi, Gujarat)
1.10 Providing sanitation facilities Local (Tapi, Gujarat)
1.11 Solid waste management Local (Rayagada,
Odisha)

(H in expenditure
programs (2)
Overhead:
(H in crores)
(1) (2) (3) (4) (5) (6) (7) (8)
2.1 Promotion of Sustainable Promoting education, including Local (Tapi, Gujarat)
Agriculture and Allied special education and employment
Activities enhancing vocation skills especially
among children, women, elderly and
2.2 Entrepreneurship Development Local (Tapi, Gujarat)
the differently- abled and livelihood
(Livelihood Business Enterprise
enhancement projects.
Project)
2.3 Adult functional Literacy Local (Rayagada, Odisha)
2.4 Remedial learning by Local (Rayagada, Odisha) 1.06 0.86 0.86 SPARSH 0.86
students
2.5 Career counselling of Tribal Local (Rayagada, Odisha)
Youths
2.6 Digital platform for youth Local (Rayagada, Odisha)
employment
2.7 Youth for SDG/ Climate Local (Rayagada, Odisha)
Actions
2.8 Micro Dairy Others (Amroha, UP)
3.1 SHG movement among the Promoting gender equality, Local (Rayagada, Odisha)
tribal women empowering women, setting up
homes and hostels for women and
3.2 Group Based enterprises Local (Rayagada, Odisha)
orphans; setting up old age homes,
promotions
day care centers and such other 0.66 0.60 0.60 SPARSH 0.60
3.3 Rural Mart establishment facilities for senior Local (Rayagada, Odisha)
citizens and measures for reducing
inequalities faced by socially and
3.4 Supporting SHGs to income Local (Tapi, Gujarat)
economically backward groups.
enhancement
4.1 Agri-based livelihood among Ensuring environmental Local (Rayagada, Odisha)
tribal in aspirational district of
sustainability, ecological balance,
India through FPOs to achieve protection of flora and fauna, animal
more than doubling farmers welfare, agro-forestry, conservation of
income natural resources and maintaining
quality of soil, air and water
4.2 Zero emission irrigation through Local (Rayagada, Odisha)
including contribution to the Clean
Solar micro pumps 1.95 1.88 1.88 SPARSH 1.88
Ganga Fund set-up by the Central
4.3 Establishment of Rural Hatt at Government for rejuvenation of river Local (Rayagada, Odisha)
Village Level for agro- Ganga.
marketing of tribal products
4.4 Farmers resource centers for Local (Rayagada, Odisha)
convergence of govt.
programs
80 | JK Paper
(H in expenditure
programs (2)
Overhead:
(H in crores)
(1) (2) (3) (4) (5) (6) (7) (8)
5.1 School buildings Rural development projects Local (Rayagada, Odisha)
5.2 Community toilets Local (Rayagada, Odisha)
DIRECT 1.28
5.3 Overhead water tanks for Local (Rayagada, Odisha)
drinking water
5.4 Construction of Multi Local (Tapi, Gujarat) 2.29 2.10 2.10
Purpose Sheds in schools
5.5 Promoting basic educational Local (Tapi, Gujarat)
infrastructural services in tribal
area
BYST* 0.82
5.6 Infrastructure development for Local (Rayagada, Odisha)
tribal skill development and
education
6.1 Distribution of Water ATM to Disaster Management, including Others (Puri, Odisha)
Fani affected families relief, rehabilitation and
reconstruction activities
6.2 COVID-19 response in Rayagada Local (Rayagada, Odisha) 0.30 0.24 0.24 SPARSH 0.24
6.3 COVID-19 response in Tapi Local (Tapi, Gujarat)

Total 8.31 7.63 7.63 7.63
* Bharat Yuva Shakti Trust
6. Reasons for shortfall:

The major reason for the shortfall of the budget utilization was due to COVID-19 pandemic and the lockdown which interrupted the field level
work in the last quarter of the financial year 2019-20. Three major activities which accounted to the underutilization by H0.68 crores were:
(i) MSME workshop for the Rayagada cluster: H0.15 crores
(ii) SHG Convention for SHG members of Rayagada: H0.05 crores
(iii) Infrastructure development for Tribal School: H0.19 crores
(iv) Solid Waste Management project postponed due to unavailability of permissions from local government administration: H0.29 crores
7. The CSR Committee confirms that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the
Company.
Place: New Delhi (A.S. Mehta) (Harsh Pati Singhania)

Date: 12th May, 2020 President & Director Chairman, CSR Committee

Annexure
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2020
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To, (b) The Securities and Exchange Board of India (Prohibition of

The Members, Insider Trading) Regulations, 2015;
JK Paper Limited,
(c) The Securities and Exchange Board of India (Issue of Capital
P.O. Central Pulp Mills - 394660
and Disclosure Requirements) Regulations, 2018;
Fort Songadh, Dist. Tapi, Gujarat
(d) The Securities and Exchange Board of India (Share Based
I have conducted the secretarial audit of the compliance of applicable
Employee Benefits) Regulations, 2014 -(Not applicable to the
statutory provisions and the adherence to good corporate practices by JK
Company during the Audit Period);
Paper Limited (hereinafter called ‘the Company’). Secretarial Audit was
conducted in a manner that provided me a reasonable basis for (e) The Securities and Exchange Board of India (Issue and Listing
evaluating the corporate conducts/statutory compliances and expressing of Debt Securities) Regulations, 2008- (Not applicable to the
my opinion thereon. Company during the Audit Period);
Based on my verification of the Company’s books, papers, minute books, (f) ) The Securities and Exchange Board of India (Registrars
forms and returns filed and other records maintained by the Company to an Issue and Share Transfer Agents) Regulations, 1993
and also the information provided by the Company, its officers, agents regarding the Companies Act and dealing with client;
and authorized representatives during the conduct of secretarial audit, I
(g) The Securities and Exchange Board of India (Delisting of
hereby report that in my opinion, the Company has, during the audit
Equity Shares) Regulations, 2009- (Not applicable to the
period covering the financial year ended on 31st March, 2020 (Audit
Company during the Audit Period);
Period), complied with the statutory provisions listed hereunder and
also that the Company has proper Board-processes and compliance- (h) The Securities and Exchange Board of India (Buyback of
mechanism in place to the extent, in the manner and subject to the Securities) Regulations, 2018- (Not applicable to the Company
reporting made hereinafter: during the Audit Period); and
I have examined the books, papers, minute books, forms and returns filed (i) The Securities and Exchange Board of India (Listing
and other records maintained by the Company for the financial year ended Obligations and Disclosures Requirements) Regulations, 2015.
on 31st March, 2020 according to the provisions of: (vi) Management has identified and confirmed the following laws as
(i) The Companies Act, 2013 (the Act) and the rules made being specifically applicable to the Company, which have been
thereunder; complied with:
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules - Indian Forest Act, 1927
made thereunder;
I have also examined compliance with applicable clauses of the
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws following:
framed thereunder;
(i) Mandatory Secretarial Standard 1 and Secretarial Standard 2
(iv) Foreign Exchange Management Act, 1999 and the rules and issued by the Institute of Company Secretaries of India,
regulations made thereunder to the extent of Foreign Direct
(ii) The Listing Agreements entered into by the Company with
Investment, Overseas Direct Investment and External Commercial
the Stock Exchanges.
Borrowings;
During the period under review, the Company has complied with the
(v) The following Regulations and Guidelines prescribed under the
provisions of the Acts, Rules, Regulations, Guidelines, Standards, etc. as
Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):
mentioned above.
(a) The Securities and Exchange Board of India (Substantial
Acquisition of Shares and Takeovers) Regulations, 2011;
72 | JK Paper Ltd.
I further report that: - 1000 Cumulative Redeemable Preference Shares of
The Board of Directors of the Company is duly constituted with H1,00,000/- each of The Sirpur paper Mills Limited, a step- down
proper balance of Executive Directors, Non-Executive Directors and subsidiary, for H10 crores.
Independent Directors.
This report is to be read alongwith the following-
The changes in the composition of the Board of Directors that took
place during the period under review were carried out in compliance 1. Maintenance of secretarial record is the responsibility of the
with provisions of the Act. management of the Company. My responsibility is to express an
opinion on these secretarial records based on my audit.
Adequate Notice is given to all directors at least seven days in
advance to schedule the Board Meetings and Agenda and detailed notes 2. I have followed the audit practices and processes as were
on agenda are also sent in advance, except when Board Meeting is appropriate to obtain reasonable assurance about the correctness
held at shorter notice in accordance with the provisions of Section 173(3) of the contents of the Secretarial records. The verification was
of the Companies Act, 2013. A system exists for seeking and obtaining done on test basis to ensure that correct facts are reflected in
further information and clarifications on the agenda items before the secretarial records. I believe that the processes and practices, I
meeting and for meaningful participation at the Meeting. followed provide a reasonable basis for my opinion.
All decisions at Board Meetings and Committee Meetings are carried out 3. I have not verified the correctness and appropriateness of
unanimously as recorded in the Minutes of the Meetings of the Board of financial records and Books of Accounts of the Company.
Directors or Committees of the Board, as the case may be. 4. Where ever required, I have obtained the Management
I further report that, based on review of compliance mechanism representation about the compliance of laws, rules and
established by the Company and on the basis of compliance regulations and happening of events etc.
certificates issued by the Company Executives and taken on record by the 5. The compliance of the provisions of Corporate and other
Board of Directors and Audit Committee at their meetings, there are applicable laws, rules, regulations, standards is the responsibility of
adequate systems and processes in the Company commensurate with management. My examination was limited to the verification of
the size and operations of the Company to monitor and ensure procedures on test basis.
compliance with applicable laws, rules, regulations and guidelines.
6. The Secretarial Audit report is neither an assurance as to the
I further report that, during the audit period, the Company had the future viability of the Company nor of the efficacy or
following specific events, namely – effectiveness with which the management has conducted the affairs
1. Manufacturing and other operations remained closed / suspended of the Company.
at all plants of the Company for a few days at the year end due to 7. The prevailing circumstances in the country on account of
lockdown imposed in the country on account of COVID-19. lockdown and COVID-19 have impacted, to some extent,
2. Interim dividend at H4.00 per equity share was paid. verification of documents and records of the Company.
3. Company subscribed for:

- 96,15,400 Equity Shares of H10/- each at a premium of H10.80
per shares of JK Enviro-Tech Ltd., a subsidiary, aggregating to
Namo Narain Agarwal
H20 crores.
Secretarial Auditor
Place: New Delhi FCS No. 234, CP No. 3331
Date: 12 May 2020
UDIN: F000234B000227494
Annual Report 2019-20 | 73

Annexure
Particulars of Conservation of Energy, Technology
Absorption and Foreign Exchange Earnings &
Outgo
in terms of Section 134(3)(m) of the Companies Act, 2013,
read with Companies (Accounts) Rules, 2014
A) CONSERVATION OF ENERGY New & Renewable Energy, Government of India. About 20% of the
i. The steps taken or impact on conservation of energy: energy requirement at Unit CPM and 57% at Unit JKPM is being met by
this renewable source.
1) Process optimization by using High capacity Pre-heater in
Evaporator resulted in steam saving. C) TECHNOLOGY ABSORPTION, ADAPTATION AND
INNOVATION
2) At Unit CPM Special refiner tackles developed for BCTMP
pulp resulting in power saving and better board quality. i. Efforts made towards technology absorption:
3) At Unit CPM Board machine new designed deflaker 1) Burning of ETP Secondary sludge along with Black Liquor.
installed in broke line. This project has been taken to avoid Land filling of
secondary sludge & Effective handling of waste.
4) Energy saving by installation of VFD for evaporator liquor
transfer pump as well as mill water pump. 2) Optimized use of special chemical in pulp mill to reduce the
Hydrogen Peroxide, Caustic and Steam consumptions.
5) Low cost automation initiative at Pump and Agitator level in
Paper machines. 3) Wash aid Amidefoam defoamer for pulp mill tried to
reduce cost.
6) Replacement of old Halide lights and MV lamps by LED.
4) Reduced Bamboo usage in raw material furnish, resulting in
7) Energy saving by Installation of new energy efficient motors reduction in cooking & bleaching chemicals.
in the mill resulting in savings.
5) Plant trial of different fiber mix in raw material furnish was
8) Unit JKPM by implementing different energy saving carried out to improve pulp quality and lime kiln
schemes as well as commissioning of 3.4 TG, overall coal production.
consumption, Steam Consumption and Power consumption
reduced and as a result, fly ash generation also reduced. 6) Reduced dusting problem by about 50% by using Fiber
Bond and replacement of Cationic starch at wet end.
ii. The capital investment on energy conservation equipments:
7) Increased machine speed by replacing size press roll at Unit
The Company has invested H17.59 crores for energy CPM.
conservation equipments during the year.
8) PM-2, Calendar & Pope reel section drive installation from
B) RENEWABLE ENERGY previous line shaft drive, to improve the quality of paper.
The steps taken by the Company for utilizing alternate sources of 9) Higher capacity feed pump & new fine bar tackles installed to
energy: reduce the refining load and improve the intensity of
Concentrated black liquor contains carbohydrates (Lignin) extracted from refining in both the paper machines at Unit CPM.
wood and sodium salts bonded with carbohydrates from the cooking 10) Higher capacity vacuum pump installed in PM-1 at Unit
chemicals added at the digester. Combustion of the organic portion of CPM.
Black liquor solids produces heat in the recovery boiler, heat is used to
produce high pressure steam, which is used to generate electricity in a 11) Installation of Steam Profiler at Board Machine to reduce steam
turbine. Turbine extraction Medium & low pressure steam is used for demand.
process heating. Black liquor solids as a fuel has been confirmed as 12) In Board plant, a new ream cum bundle packing machine
renewable biomass fuel by Ministry of installed in finishing & converting to enhance the packing
capacity.
74 | JK Paper Ltd.
13) Installation of PSF (Pressure sand filter) & ACF (Activated (b) Released 3 new Subabul clones having higher wood
carbon filter) for Safe Drinking Water to colony & plant. productivity. Commercial trials are going on.
ii. Benefits derived as a result of above efforts: (c) Developed & commercially released new Eucalyptus
The initiatives have enabled the Company in terms of product & clone namely CPM U283 turbo having higher wood
quality improvement, cost reduction, product development and productivity.
enhance customer satisfaction. (d) Successfully developed hybrid between Leucaena
iii. Expenditure incurred on Research & Development: luecocephala & L. collinsii which is resistant to psyllid
insect & having higher wood productivity. Progeny
During the year, the Company has spent H405 lacs on Research &
trial is going on for development of future generation
Development. The Company performed various Research &
clones.
Development activities. Various trials were conducted on the shop
floor to upgrade the existing quality of product to meet the D) FOREIGN EXCHANGE EARNINGS AND OUTGO
customer perception and maintain quality and product H in crores (10 Million)
leadership.
(a) Foreign Exchange earned 194.04
1. New Products developed and introduced during the current (b) Foreign Exchange outgo:
year: - CIF Value of Imports 474.55
(a) JK Yellow Maplitho -75 gsm for diary (b) JK Carry for - Others 13.49
Carry Bag (c) Shooting paper (d) Antifungal board -
Trial taken in FBB family.
2. R & D activities in Plantation
(a) Developed & commercially released new Eucalyptus Place: New Delhi Bharat Hari Singhania
clone JKSC jumbo having higher wood productivity. Date: 12th May, 2020 Chairman

Annexure
Disclosure pursuant to Section 197(12) of the Companies
Act, 2013 read with Rule 5(1) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014, for
the financial year ended 31st March 2020
A. The ratio of the remuneration of each director to the median remuneration of the employees of the Company- (a) Non-Executive Directors:
Shri Bharat Hari Singhania, Chairman, 53.00; Shri Arun Bharat Ram, 5.31; Shri Dhirendra Kumar, 5.08; Shri M.H. Dalmia, 4.71; Shri
R.V. Kanoria, 6.37; Shri Sandip Somany, 4.86; Shri Shailendra Swarup, 5.05; Shri Udayan Bose, 5.62; Smt. Vinita Singhania, 5.10; Shri S.K. Roongta, 5.17
and Smt. Deepa Gopalan Wadhwa (appointed w.e.f. 27.06.2019), 3.99 (b) Executive Directors: Shri Harsh Pati Singhania, VC & MD, 662.30 and Shri
A.S. Mehta, President & Director, 110.17.
B. The percentage increase in remuneration of each Director, Chief Finance Officer, Company Secretary - Shri Bharat Hari Singhania, Chairman,
0.58%; Shri Harsh Pati Singhania, VC & MD, Nil; Shri A.S. Mehta, President & Director, Not applicable since was a Director for only part of the
financial year 2018-19; Shri Arun Bharat Ram, Nil; Shri Dhirendra Kumar, 2.58%; Shri M.H. Dalmia, 3.65%, Shri R.V. Kanoria, 17.37%, Shri Sandip
Somany, 5.54%, Shri Shailendra Swarup, 7.61%, Shri Udayan Bose, 0.68%, Smt. Vinita Singhania, 7.24%, Shri S.K. Roongta, Not applicable since was a
Director for only part of the financial year 2018-19; Smt. Deepa Gopalan Wadhwa, Not applicable since became a Director during the Financial Year
2019-20, Shri V. Kumaraswamy, CFO, 0.89%, and Shri Suresh Chander Gupta, VP & CS, Nil.
C. The percentage increase in the median remuneration of employees - 8.22%. The number of permanent employees on the rolls of Company -
2506.
D. Average percentage increase in the salaries of employees other than the managerial personnel in the financial year 2019-20 was 12% and increase
in the managerial remuneration for the same financial year was 0.07%.
E. We affirm that the remuneration paid during the financial year 2019-20 is as per the Remuneration Policy for Directors, Key Managerial Personnel
and Senior Management of the Company.
Annexure - 6
Particulars in respect of deposits covered
under Chapter V of the Companies Act,
2013 for the financial year ended 31st
March 2020
(a) Accepted during the year - H20.00 crores;

(b) Remained unclaimed as at the end of the year - H0.67 crores;
(c) Default in repayment of deposits or payment of interest thereon at the beginning of the year and at the end of the year - Nil; and
(d) Details of deposits which are not in compliance with the requirements of Chapter V of the said Act - Nil.

Place: New Delhi Bharat Hari Singhania
76 | JK Paper Ltd.
Sustainability & Business
Responsibility Report
SECTION A: GENERAL INFORMATION ABOUT THE COMPANY
1 Corporate identification number L21010GJ1960PLC018099
2 Name of the Company JK Paper Limited
3 Registered address Registered office:
P. O. Central Pulp Mills – 394 660 Fort
Songadh, District Tapi, Gujarat
Ph.No.: +91-2624-220228/ 220278-80
Fax No.: +91-2624-220138
4 Website www.jkpaper.com
5 Email address [email protected]
6 Financial year reported 1st April, 2019 to 31st March, 2020
7 Sector(s) that the Company is engaged in Manufacturing of Paper and Paper Board falling into NIC 2008 Code - 1701 of
Ministry of Statistics and Programme Implementation.
8 Three key products/services manufactured/ 1. Office documentation paper
provided by the Company 2. Uncoated paper and board
3. Packaging board
9 Total number of locations where business activity Rayagada, Odisha, India
is undertaken by the Company Songadh, Gujarat, India
10 Markets served by the Company The Company has Pan India presence through regional marketing offices, trade partners,
dealers and depots having a robust network of over 4,000 dealers and over 320 Trade
Partners (Wholesalers, Retailers & Direct Party) and 15 depots.
The International Markets are served by exporting our products to around 62
countries including the US, the UK, Sri Lanka and Bangladesh, Singapore, Malaysia, Africa
and the Middle East.
SECTION B: FINANCIAL DETAILS OF THE COMPANY

1 Paid up capital H178.24 crores
2 Total turnover H3,254.20 crores
3 Total profit after tax H492.71 crores
4 Total spending on CSR as 1.55%
percentage of Net Profits
5 List of the activities in which Corporate Social Responsibility (CSR) Activity Expenditure (H Lacs)
expenditure in 4 above has been
Health care 195
incurred:
Sanitation and Drinking water 30
Livelihood projects 188
Education 86
Women empowerment & gender equality 60
Community infrastructure development viz., roads, public 204
spaces repair & maintenance of public utilities
Total 763

SECTION C: OTHER INFORMATION
1 Does the Company have any Subsidiary Company/ 1. Jaykaypur Infrastructure & Housing Ltd.
Companies? 2. Songadh Infrastructure & Housing Ltd.
3. JK Enviro-tech Ltd.
4. JK Paper International (Singapore) Pte. Ltd.
5. The Sirpur Paper Mills Limited
2 Do the Subsidiary Company/ Companies participate in the BR The Company encourages participation of its subsidiary companies in
Initiatives of the parent company? If yes, then indicate the number its group-wide Business Responsibility (“BR”) initiatives. The four
of such subsidiary company(s). Indian subsidiary companies are aligned with the Company’s BR
initiatives.
3 Do any other entity/entities (e.g. suppliers, distributors etc.) that the No, the entities that the Company does business with, do not
Company does business with, participate in the BR initiatives of the participate in the BR Initiatives of the Company
Company? If yes, then indicate the percentage of such entity/entities?
[Less than 30%, 30-60%, More than 60%]
SECTION D: BR INFORMATION
1.Details of Director(s) responsible for BR
a) Details of the Director responsible for implementation of BR policies
1 DIN number 00030694
2 Name A. S. Mehta
3 Designation President & Director
b) Details of BR head
1 DIN number 00030694
2 Name A. S. Mehta
3 Designation President & Director
4 Contact number 011-30179503
5 Email id [email protected]
2.Principle-wise (as per NVGs) BR Policy/policies

Principles Description Company’s Policy
Principle 1 Businesses should conduct and govern themselves with Ethics, Code of Conduct, Whistle Blower Policy
Transparency and Accountability
Principle 2 Businesses should provide goods and services that are safe and Quality Policy
contribute to sustainability throughout their life cycle
Principle 3 Businesses should promote the well-being of all employees HR Policy, SHAW – Prevention of sexual harassment of
women at workplace
Principle 4 Businesses should respect the interests of and be responsive CSR Policy
towards all stakeholders, especially those who are disadvantaged,
vulnerable and marginalized
Principle 5 Businesses should respect and promote human rights Code of Conduct, HR Policy, SHAW – Prevention of sexual
harassment of women at workplace
Principle 6 Business should respect, protect and make efforts to restore the Environment Policy
environment
Principle 7 Businesses, when engaged in influencing public and regulatory policy, Code of conduct
should do so in a responsible manner
78 | JK Paper Ltd.
Principles Description Company’s Policy
Principle 8 Businesses should support inclusive growth and equitable CSR Policy
development
Principle 9 Businesses should engage with and provide value to their customers Quality Policy
and consumers in a responsible manner
Details of compliance (Reply in Y/N)

Sl. No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
1. Do you have policy/policies for.... Y Y Y Y Y Y Y Y Y
2. Has the policy been formulated in consultation with the relevant Y Y Y Y Y Y Y Y Y
stakeholders?
3. Does the policy conform to any national/ international standards? If yes, Most of the policies are aligned to various standards like:
specify? ISO 9001:2015 (Quality Management System), ISO
14001:2015 (Environment Management System), OHSAS
18001:2007 (Occupational Health & Safety Management
System)
4. Has the policy been approved by the Board? If yes, has it been signed by the Y - - Y - - Y Y -
MD/owner/CEO/ appropriate Board Director?
5. Does the Company have a specified committee of the Board/ Director/ Y Y Y Y Y Y Y Y Y
Official to oversee the implementation of the policy?
6. Indicate the link for the policy to be viewed online?* * - - * - - * * -
7. Has the policy been formally communicated to all relevant internal and Y Y Y Y Y Y Y Y Y
external stakeholders?
8. Does the Company have in-house structure to implement the policy/ Y Y Y Y Y Y Y Y Y
policies?
9. Does the Company have a grievance redressal mechanism related to the Y Y Y Y Y Y Y Y Y
policy/policies to address stakeholders’ grievances related to the policy/
policies?
10. Has the Company carried out independent audit/evaluation of the working of ** ** ** ** ** ** ** ** **
this policy by an internal or external agency?
*Visit www.jkpaper.com/index.php?option=com_content&view=article&id=88&Itemid=38
** The Company has evaluated the Policies internally.
3.Governance related to BR
The BR report is available at the website of the Company and may
1. Indicate the frequency with which the Board of Directors,
be accessed at https://www.jkpaper.com/images/pdf/
Committee of the Board or CEO to assess the BR performance of
annual_reports/JK%20AReport_2019-20_final.pdf. The report is
the Company: Within 3 months, 3-6 months, Annually, More than 1
published annually.
year.
Principle 1: Businesses should conduct and govern themselves
The Company does not have a Committee of Board for dealing with
with Ethics, Transparency and Accountability
this matter specifically. However, aspects of Business
Responsibility are reviewed by various other committees of the 1. Does the policy relating to ethics, bribery and corruption cover only
Executives/ Board. BR performance of the Company is being the Company? Yes/ No. Does it extend to the Group/Joint Ventures/
continuously assessed by the Senior Executives of the Company. Suppliers/Contractors/NGOs /Others?
2. Does the Company publish a BR or a Sustainability Report? What is The Company is committed to highest standards of corporate
the hyperlink for viewing this report? How frequently it is governance practices. It forms an integral part of our values,
published? ethics and business practices which is aimed at creating and
enhancing long-term value of stakeholders. We practise and
promote corporate ethics to enhance transparency in our

operations and accountability amongst the stakeholders. Code of as well as economically feasible. Sustainability is embedded into
Conduct of the Company, reflects strong alignment to core values various stages of our product life-cycle, including
and commitment to maintain the highest standards of said practices procurement, manufacturing, transportation, distribution and,
in its interface with all stakeholders, society at large and the finally, the disposal of product by the customer. Responsible and
environment. There lies an element of fiduciary responsibility with sustainable procurement of fibre is both a key policy and principle at
the Directors and senior management of the Company to the Company. Manufacturing units of the Company are both FSC-
maximise the value of shareholders via good business practices and COC (Forest Stewardship Council – Chain of Custody) and FSC-FM
controls. (Forest Stewardship Council – Forest Management) certified. The
In order to reaffirm this commitment, the Company has several Company takes up plantations under the Forest Stewardship
policies guided by the Code of Conduct that are applicable to the Council Forest management certification programme and this has
Board, Management as well as all the employees of the Company. benefited the farmers through adoption of better and more
We take pride in our ‘Quality Policy’ which aims at providing sustainable management of plantations. The Company has facilitated
customer delight-both internal and external-through our products at plantation of more than 2,022 lac trees in the last four years (2016-
lowest cost by continuous improvement in processes, 17 to 2019-20). The Company carries extensive research and
productivity, quality and management systems. Finally, we ensure development to develop short rotation, genetically superior, site
accountability with respect to the said commitment through a specific and disease resistant clones with rotation of about 3 years
vigil mechanism providing a common platform for associates for the improvement of plantation yields, which results in
and employees of the Company to report any suspected frauds, increased returns to farmers. We also provide free of cost technical
unethical behaviour, grievances, violation of the Company’s Code of support from planting to its harvesting and training &
Conduct or Ethics Policy, and any other event which would development to farmers to achieve higher wood yield.
adversely affect the interests of the business of the Company. 2. For each such product, provide the following details in respect of
The Code of Conduct followed by the Company extends to the resource use (energy, water, raw material etc.) per unit of product
Group, Subsidiary companies and Joint Ventures. (optional):
2. How many stakeholder complaints have been received in the past (a) Reduction during sourcing / production / distribution
financial year and what percentage was satisfactorily resolved by the achieved since the previous year throughout the value
management? If so, provide details thereof, in about 50 words or so. chain?
Eight investor complaints were received during the financial year The Company believes that optimizing production
ended 31st March 2020, all of which were promptly resolved to efficiency delivers value to customers and minimises
the satisfaction of the investor concerned. Customer complaints environmental impact, therefore driving the Company
have been covered under Principle 9. No other stakeholder towards the goal of long term sustainability.
complaints from depositors, vendors, dealers etc. were received. All Raw material: The material intensity (wood consumed per ton
queries were promptly responded to the stakeholder concerned. of product) of the Company was 1.60 ADMT/MT in FY 2018-
Principle 2: Businesses should provide goods and services that 19 and 1.59 ADMT/MT in FY 2019-20.
are safe and contribute to sustainability throughout their life
Energy: The energy intensity (total energy consumed per ton
cycle.
of product) was 971 Kwh/ MT in FY 2018-19 and 959 in FY
1. List up to 3 of your products or services whose design has 2019-20.
incorporated social or environmental concerns, risks and/or
opportunities. Water: Water consumption per ton of product has
reduced from 38.85/ MT in FY 2018-19 to 34.74 M3/MT in
All the products manufactured by the Company viz. paper and FY 2019-20.
board, are manufactured taking into account social and
environmental concerns. The Company continues to remain (b) Reduction during usage by consumers (energy, water) has been
focussed on delivering stakeholder value while maintaining achieved since the previous year?
ecological balance. Rooted in the concept of sustainable Owing to the nature of the product, it is not feasible to
development, the Company aims to deliver products that satisfy identify the reduction during usage by consumers.
customer needs while being durable, resource-efficient
3. Does the Company have procedures in place for sustainable sourcing
(including transportation)? If yes, what percentage of your inputs
was sourced sustainably?
80 | JK Paper Ltd.
The Company acknowledges that its supply chain can processes. This has led to increased commitment towards
significantly impact the environment and society at large. In reducing environmental impact of business activities via waste
order to ensure sustainability across the entire value chain, the minimisation and re-use. Non-hazardous solid wastes such as
Company has made responsible sourcing an integral part of its bamboo and hard wood dust, screen rejects, fly-ash, lime sludge, and
sustainability strategy. Several principles have been adopted and effluent sludge are re-used in various processes. As per CREP
responsible forest management practices are promoted to reap guidelines rotary lime kiln is commissioned for recycling of
benefits like long-term availability of raw materials for the lime sludge. Lime sludge generated from the process is used as
operations. These efforts lead to absorption of atmospheric carbon, raw material to lime kiln to produce Lime. Primary ETP sludge
probably much more than what is emitted by the Company’s is used to make egg trays and recycled board etc. We ensure that
operations. 100% of fly-ash is used to manufacture fly-ash bricks & cement
4. Has the Company taken any steps to procure goods and services manufacturing and board rejects are entirely recirculated within
from local & small producers, including communities surrounding the board plant. Paper machine effluent is segregated and treated
their place of work? If yes, what steps have been taken to improve separately in a 20 m diameter clarifier. Clarified effluent is reused
their capacity and capability of local and small vendors? in pulp mill and chipper house. Around 95% of this paper machine
effluent is reused/ recycled in the process. Wood dust generated
During the past few years, the Company has had a multi-
during the process of wood chipping is burnt 100% as fuel along
pronged strategy of increasing plantation coverage in the
with coal in coal fired boiler.
nearby areas thereby enabling local procurement. Furthermore,
the Company is engaged in extensive research and development to Principle 3: Businesses should promote the well-being of all
ensure long-term sustainability of raw materials for operations employees.
via responsible sourcing and promoting local procurement. The 1. Total number of employees: 2506 – permanent employees
Company is working towards developing clones for the
2. Total number of employees hired on temporary/contractual/
improvement of plantation yields, which results in increased
casual basis: 3838
returns to farmers and better quality of raw material for process. The
Company engages with the farmers to increase the overall plantation 3. Number of permanent women employees: 34
area and promote agro-forestry for better land utilisation. The farmer 4. Number of permanent employees with disabilities: Nil
friendly Gate Purchase initiative offers the farmers remunerative 5. Do you have an employee association that is recognised by
prices and improved logistics movement to ensure higher volume management?
of pulpwood procurement from plantations besides removing
middlemen in procurement process. Collective bargaining agreements exist with trade unions on a
local level and these agreements promote the acceptance of
In addition to above, various awareness programmes, field responsibility by both parties and the development of a positive
trainings and on the field demonstrations are being undertaken health and safety culture.
aiming at building capacity of farmers so that the required
cultural operations as per specified package of practices can be 6. What percentage of your permanent employees is members of this
understood by farmers and implemented in the field. In addition, recognised employee association? 32.31%
audio visual aids like leaflets, pamphlets, videos and practical field 7. Number of complaints relating to child labour, forced labour,
demonstrations are used along with focussed group discussions with involuntary labour, sexual harassment in the last financial year and
experienced farmers through village level meetings. Awareness pending, as on the end of the financial year.
amongst farmers is created by organising their visits to the
Company’s production and research facilities, demonstration of No such complaints pertaining to child labour, forced labour,
plantations, plantations of progressive farmers and also to our involuntary labour, sexual harassment were reported in the
manufacturing units. current financial year.
5. Does the Company have a mechanism to recycle products and 8. What percentage of your under mentioned employees were given
waste? If yes what is the percentage of recycling of products and safety & skill up-gradation training in the last year?
waste (separately as 10%). (a) Permanent Employees – 100%
(b) Permanent Women Employees – 100%
Waste generated in operations is considered as a potential
(c) Casual/Temporary/Contractual Employees – Need based
resource for various other activities by making its best use
within the operations through optimisiation of existing The skills and knowledge of the Company’s workforce are
among its greatest strengths. The Company continues to focus

on learning and skill development of its employees, various tools
Principle 5: Businesses should respect and promote human rights.
of learning viz. e-gyan portal, an online portal for learning are being
run by the Company to enhance the capabilities and knowledge of its 1. Does the policy of the Company on human rights cover only the
employees. The Company believes in 70-20- 10 philosophy of Company or extend to the Group/Joint Ventures/ Suppliers/
training and education. Maximum learning and development, i.e. Contractors/NGOs/Others?
70%, takes places through hands-on involvement and practical The Company is committed to protect the human rights of its
experience, 20% is achieved through classroom training and the stakeholders. Human resource is considered as a valuable resource
remaining 10% through textual learning. Continuous learning and in the organization. Human resource practices of the
development are essential. In FY 2019-20, the Company imparted an Company aim at ensuring not only protection but also respect
average of 25 hours of training per employee on topics such as for human rights. Various policies viz. Safety of Women &
safety, as well as technical training specific to the employees’ Prevention of Sexual Harassment at workplace (SHAW),
different roles. Almost all the employees form part of the Prohibition of Child Labour, Code of Conduct, Policy on Preventing
Company’s safety and skill upgradation programmes. Forced Labour, Policy on Discrimination etc. are in place to
Principle 4: Businesses should respect the interests of, and be ensure protection of Human Rights of the employees and other
responsive towards all stakeholders, especially those who are stakeholders. The Company, within its sphere of influence,
disadvantaged, vulnerable and marginalized. promotes the awareness and realization of human rights across its
value chain. To this extent, the Company extends its initiatives to
1. Has the Company mapped its internal and external
promote human rights to external stakeholders including suppliers
stakeholders? Yes/No
and contractors. The Company’s approach to managing human
Yes, the Company has identified key stakeholder groups and rights is aligned with internationally recognised principles and
mapped its internal and external stakeholders. The key categories guidelines. It is a constant endeavour to ensure that none of the
include (i) Government and regulatory authorities; suppliers engage in employment of child, forced or compulsory
(ii) Employees; (iii) Consumers; (iv) Suppliers; (v) Investors, labour. The Company strongly prohibits the employment of
Shareholders & Lenders; (vi) Local Community; (vii) NGOs. child, forced or compulsory labour in all its operations.
2. Out of the above, has the Company identified the 2. How many stakeholder complaints have been received in the past
disadvantaged, vulnerable & marginalised stakeholders? financial year and what percent was satisfactorily resolved by the
management?
Yes, the Company has identified the disadvantaged, vulnerable &
marginalised stakeholders from the nearby local communities and In the reporting period, no violations or complaints surfaced and
surrounding villages in the form of contractual employees and no areas were discovered where any of our operations or suppliers
marginal farmers. might be found to have significant risk of child labour or forced or
compulsory labour or infringed human rights of other
3. Are there any special initiatives taken by the Company to engage
stakeholders.
with the disadvantaged, vulnerable and marginalised stakeholders? If
so, provide details thereof, in about 50 words or so. Principle 6: Business should respect, protect, and make efforts to
restore the environment.
The Company values the support of its stakeholders and respects
the interest and concerns they have towards the Company. The 1. Does the policy related to Principle 6 cover only the Company or
Company has put in place systems and procedures to identify, extends to the Group/Joint Ventures/ Suppliers/Contractors/
prioritise and address the needs and concerns of its stakeholders NGOs/others.
across businesses and units in a continuous, consistent and The Company is committed towards environmental protection and
systematic manner. It has implemented mechanisms to facilitate has a well-defined corporate environmental policy in place. The
effective dialogues with all stakeholders across businesses, identify Company encourages its subsidiaries, suppliers and contractors to
material concerns and their resolution in an equitable and employ environment friendly measures in their day to day
transparent manner. The Company proactively engages with and operations.
responds to those sections in the society that are disadvantaged,
vulnerable and marginalized. The Company has a structured CSR 2. Does the Company have strategies/ initiatives to address global
program through which it assesses the needs of local stakeholders environmental issues such as climate change, global warming, etc.?
and carries out initiatives to address societal needs. Yes, the Company has taken up several initiatives to address global
environmental issues such as climate change, global
82 | JK Paper Ltd.
warming, waste minimisation, effluent reduction, water Further the Company implemented a program to upgrade its
conservation. The Company has also signed an ‘Emission Reduction facilities for energy efficiency, resource conservation, reduction in
Purchase Agreement (ERPA)’ with the Bio Carbon Fund of the water consumption etc. This was facilitated by a USD 3 million loan
World Bank covering 1,608 Ha of farmland mainly owned by small of IFC Washington under is Clean Production initiatives.
and marginal farmers associated with JK Paper’s plantation program.
This program provides additional income for participating farmers, 5. Has the Company undertaken any other initiatives on – clean
besides reducing harmful greenhouse gases and global warming. technology, energy efficiency, renewable energy, etc. If yes, please
Necessary efficient air pollution control / Water Pollution control give hyperlink for web page etc.
equipment are installed to control air emissions from the boilers. The Company has been undertaking various energy efficiency
For further details, refer http://www.jkpaper.com/index.php? measures at its manufacturing locations from time to time which
option=com_content &view=article&id=32&Itemid=33 include optimisation of voltage level through tap position
3. Does the Company identify and assess potential environmental changing on transformer, installation of energy efficient
risks? luminaries and motors on various machines, running motors with
low current by converting delta to star connection, etc. Also, the
The Company has an elaborate risk management system to inform
Company ensures 100% conversion of fly ash into fly ash bricks.
Board Members about risk assessment and mitigation procedures.
More details on the same is available at:
The Risk Management Committee meets on regular basis and
http://www.jkpaper.com/ index. php?option=com_
evaluates the efficacy of the framework relating to risk
content&view=article&id=32&Itemid =33
identification and its mitigation laid down by the Committee.
6. Are the Emissions/Waste generated by the Company within the
At each location, there is a dedicated team within the umbrella of
permissible limits given by CPCB/SPCB for the financial year being
the Environmental, Health & Safety structure that, among other
reported?
responsibilities, takes care of ensuring compliance to applicable
federal, state and local laws related to environmental matters. To The Company is committed to minimizing its waste as well as
assure compliance with applicable laws and standards, the emissions. It has initiated various measures across the
environmental department regularly interacts with the manufacturing locations to waste minimization and reuse. Also, the
manufacturing locations and conducts internal audits of all Company continues to invest in reducing air emission levels through
facilities, on a continuous and ongoing basis. In case any of the adoption of cleaner technologies/ fuels, monitoring of combustion
units receive a notice of violation, environmental release or efficiencies and investments in pollution control equipment. All
permit excess, it is promptly communicated to senior these measures ensure that the emissions/ waste generated by the
management through the incident reporting system and Company are within the permissible limits given by CPCB/SPCB.
corrective action is taken immediately. Moreover, the Company 7. Number of show cause/ legal notices received from CPCB/ SPCB
uses environmental impact assessments, recognized environmental which are pending (i.e. not resolved to satisfaction) as on end of
management standards, ISO 9001:2015 (Quality Management Financial Year.
System), ISO 14001:2015 (Environmental Management System),
OHSAS 18001:2007 (Occupational Health & Safety Management During the FY 2019-20, there were no non-compliances with
System) and FSC (Forest Stewardship Council) Certification to environmental laws and/or regulations and the Company did not
sharpen its focus towards achieving sustainability goals. pay any fines towards any case pending from previous years.
4. Does the Company have any project related to Clean Principle 7: Business, when engaged in influencing public and
Development Mechanism? If so, provide details thereof, in about regulatory policy, should do so in a responsible manner.
50 words or so. Also, if yes, whether any environmental compliance 1. Is your Company a member of any trade and chamber or
report is filed? association? If Yes, Name only those major ones that your
business deals with:
Yes, the Company has registered two projects related to the
Clean Development Mechanism under UNFCCC. Vide approval The Company is member of the following associations:
dated 15th July 2009, the Company’s CDM project on “Improving • Federation of Indian Chambers of Commerce and Industry
rural livelihoods through carbon sequestration” in the nearby areas in (FICCI)
Koraput, Kalahandi & Rayagada districts was approved under • Indian Paper Manufacturers Association (IPMA)
UNFCCC. • International Chamber of Commerce, India (ICC India)

2. Have you advocated/lobbied through above associations for the empowerment via promotion of self-help groups, mobilization of
advancement or improvement of public good? Yes/No; if yes, farmer clubs to enhance field productivity & their earnings,
specify the broad areas (Governance and Administration, Economic catalysing skill development programmes for youth and carrying
Reforms, Inclusive Development Policies, Energy security, Water, out infrastructural development projects.
Food Security, Sustainable Business Principles, Others).
3. Have you done any impact assessment of your initiative?
The Company has always advocated the cause of Good
Governance, Administration and Economic reforms. It actively The Company adopts tools like Participatory Rural Appraisal to
participates and raises its concern on matters of governance, involve people in prioritizing their needs and defining type of
economic reforms and other public policies in public interest at development initiatives suited to local needs. Villagers give scores to
appropriate forums. development initiatives, either individually scoring or in small
groups and aggregating for the community as a whole. This
The Company continuously advocates the use of alternative
facilitates a process of democratic prioritization by the entire
fuels, energy conservation and afforestation. For social
community, ensuring people’s involvement in their own
development projects, the Company partners with organisations
development. This is a very important tool for micro-planning by the
such as Bharat Yuva Shakti Trust (BYST), SPARSH (NGO), National
Principles for Responsible Investment (PRIs) at village level.
Skill Development Corporation (NSDC) etc. to seek their
participation and involvement in implementing various initiatives. 4. What is your Company’s direct contribution to community
Some of the major programmes undertaken on a continual basis are development projects- Amount in INR and the details of the
training of youths in entrepreneurship which enabled them to earn projects undertaken?
livelihood for themselves and their families. During the financial year 2019-20, the Company had
Principle 8: Business should support inclusive growth and contributed H7.63 crores to Community Development Projects. Out
equitable development. of this, H5.27 crores was incurred through SPARSH and Bharat Yuva
Shakti Trust and the balance by the Company.
1. Does the Company have specified programmes/ initiatives/
projects in pursuit of the policy related to Principle 8? If yes, The details of the community development projects
details thereof. undertaken during the financial year 2019-20 are given in
Corporate Social Responsibility Report which forms part of this
The Company has been one of the foremost proponents of
Annual Report.
inclusive growth and has continued to undertake projects for
overall development and welfare of the society in the fields of 5. Have you taken steps to ensure that this community
environment, conservation of natural resources, health, development initiative is successfully adopted by the
education, rural development and livelihood interventions etc. community?
Accordingly, over the years, its programs have diversified to
The CSR team at the manufacturing locations regularly interact with
women empowerment, entrepreneurship sustainable agriculture
the local communities to assess the impact of community
and climate resistant farm technologies along with modern health
development projects undertaken by these units to ensure that the
care and education. The Company has a CSR Policy in accordance
objectives and benefits of these projects are being met.
with the provisions of the Companies Act 2013 and rules made there
under. The contents of the CSR Policy are disclosed on the website of Principle 9: Business should engage with and provide value to
the Company. their customers and consumers in a responsible manner.
2. Are the programmes/projects undertaken through in-house 1. What percentage of customer complaints/consumer cases are
team/own foundation/ external NGO/government structures/ any pending as on the end of financial year?
other organisation? During the financial year, 633 Customer complaints were
Each of the mills of the Company has a local CSR team and they can received, out of which, only 26 complaints (4.11%) were pending
tailor their own approach and initiatives. Social research is used to as on 31st March 2020.
establish a baseline and assess impact of the programs on ground. 2. Does the Company display product information on the product label,
Extensive in-depth interviews and focus groups are conducted to over and above what is mandated as per local laws? Yes/ No/N.A.
make an assessment of the needs & aspirations of the people. The /Remarks (additional information).
Company proactively works towards women
84 | JK Paper Ltd.
The Company has an uncompromising commitment to provide best reported for non-compliance with regulations and voluntary
in-class products and ace customer satisfaction. The Company codes concerning health and safety impacts of the Company’s
complies with all laws and regulations concerning marketing products and services.
communications. In line with this, the required information as
mandated by law is inscribed on the product label of the 4. Did your Company carry out any consumer survey/ consumer
Company. satisfaction trends?
3. Is there any case filed by any stakeholder against the Company The Company is focused on delivering value to its customers and
regarding unfair trade practices, irresponsible advertising and/ or therefore, customer satisfaction surveys are carried out on a regular
anti-competitive behaviour during the last five years and pending basis. This provides valuable feedback for the Company for
as on end of financial year? providing the best possible service to customers and to
continuously improve in its engagement with customers.
There was no incidence of non-compliance with regulations and
voluntary codes concerning product and service information
and labelling. Similarly, there was no instance

Corporate Governance Report
1.Company’s Philosophy on Code of Governance
Corporate Governance is an integral part of values, ethics and the best business practices followed by the Company. The core values of the Company
are:
- Commitment to excellence and customer satisfaction
- Maximizing long term shareholders’ value
- Socially valued enterprise and
- Caring for people and environment.
In a nutshell, the philosophy can be described as observing of business practices with the ultimate aim of enhancing long-term shareholders’ value and
remaining committed to high standards of business ethics. The Company has in place a Code of Corporate Ethics and Conduct reiterating its commitment
to maintain the highest standards in its interface with stakeholders and clearly laying down the core values and corporate ethics to be practiced by its
entire management cadre.
2.1Board of Directors
The Board of Directors presently consists of thirteen Directors of which two are Executive Directors and Eleven are Non-Executive Directors. Out of
eleven Non-Executive Directors, seven are Independent Directors. Details are as given hereunder:
Sl. Name of the Director Category No. of Whether No. of other Directorships and
No.^ Board attended Committee Memberships /
Meetings last A.G.M. Chairmanships
attended (23.08.2019) Other Other Other
during Director- Committee Committee
2019-20 ships $ Member- Chairman-
ships ** ships **
1. Shri Bharat Hari Singhania, Non- Executive Non- 5 Yes 4 1 -
Chairman Independent
2. Shri Harsh Pati Singhania, Executive 5 Yes 2 - -
Vice Chairman & Managing
Director
3. Shri Arun Bharat Ram # Independent 3 No 3 - -
4. Shri Dhirendra Kumar Non- Executive Non- 5 No 5 2 -
Independent
5. Smt. Deepa Gopalan Wadhwa Independent 4 No 4 1 -
#
(w.e.f. 27.06.2019)
6. Shri M.H.Dalmia # Independent 2 No - - -
7. Shri R.V. Kanoria # Independent 5 No 7 4 2
8. Shri Sandip Somany # Independent 3 No 4 1 -
9. Shri Shailendra Swarup # Independent 3 No 8 5 -
10. Shri S.K. Roongta Non- Executive Non- 5 No 8 6 2
Independent
86 | JK Paper Ltd.
Sl. Name of the Director Category No. of Whether No. of other Directorships
No.^ Board attended and Committee Memberships
Meetings last A.G.M. / Chairmanships
attended (23.08.2019) Other Other Other
during Director- Committee Committee
2019-20 ships $ Member- Chairman-
ships ** ships **
11. Shri Udayan Bose # Independent 3 Yes 2 2 2
12. Smt. Vinita Singhania Non- Executive Non- 5 No 4 - -
Independent
13. Shri A.S. Mehta, President Executive 5 Yes 5 5 2
& Director
# The appointment of Independent Directors is in accordance with the provisions of the Companies Act, 2013 (the Act) and the Securities and Exchange
Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) and in the opinion of the Board, they fulfil the
conditions specified in the Listing Regulations and are independent of the management of the Company.
$ Excluding Private Limited Companies, Foreign Companies and Companies under Section 8 of the Act. Independent Directorships held by the
Directors are in accordance with the Listing Regulations.
^ DIN of the above named Directors in seriatim: 1. DIN: 00041156, 2. DIN: 00086742, 3. DIN: 00694766, 4. DIN: 00153773, 5. DIN: 07862942,
6. DIN: 00009529, 7. DIN: 00003792, 8. DIN: 00053597, 9. DIN: 00167799, 10. DIN: 00309302, 11. DIN: 00004533, 12. DIN: 00042983 and 13. DIN:
00030694.
** Only covers Memberships/Chairmanships of Audit Committee and Stakeholders’ Relationship Committee.
Shri Bharat Hari Singhania, Chairman and Shri Harsh Pati Singhania, Vice Chairman & Managing Director are related to each other.
2.2Name of the Listed Entities, where Director is a Director, other than JK Paper Limited:
Sl. No. Name of the Company Category
(i) Shri Bharat Hari Singhania, Chairman
1. JK Lakshmi Cement Limited Executive Director
2. JK Tyre & Industries Limited Executive Director
3. JK Agri Genetics Limited Non-Executive Director
4. Bengal & Assam Company Limited Non-Executive Director
(ii) Shri Arun Bharat Ram
1. SRF Limited Executive Director
(iii) Shri Dhirendra Kumar
1. The Scottish Assam (India) Limited Non-Executive Non - Independent Director
2. Bengal Tea & Fabrics Limited Independent Director
(iv) Smt. Deepa Gopalan Wadhwa
1. J.K. Cement Limited Independent Director
2. Mindtree Limited Independent Director
3. Bengal & Assam Company Limited Independent Director
(v)Shri R.V. Kanoria
1. Kanoria Chemicals & Industries Limited Executive Director
2. Nestle India Limited Independent Director
3. Ludlow Jute & Specialties Limited Non-Executive Non - Independent Director
(vi) Shri Sandip Somany
1. HSIL Limited Executive Director
2. Somany Home Innovation Limited Non-Executive Non - Independent Director

Sl. No. Name of the Company Category
(vii) Shri Shailendra Swarup
1. Gujarat Flurochemicals Limited Independent Director
2. Bengal & Assam Company Limited Independent Director
3. Subros Limited Independent Director
4. Jagran Prakashan Limited Independent Director
5. GFL Limited Independent Director
6. Sterling Tools Limited Independent Director
(viii) Shri S.K. Roongta
1. Jubilant Life Sciences Limited Independent Director
2. ACC Limited Independent Director
3. Jubilant Industries Limited Independent Director
4. Talwandi Sabo Power Limited Non Executive Non - Independent Director
(ix) Shri Udayan Bose
1. Pritish Nandy Communications Limited Independent Director
(x) Smt. Vinita Singhania
1. JK Lakshmi Cement Limited Executive Director
2. Bengal & Assam Company Limited Non-Executive Non - Independent Director
3. HEG Limited Non-Executive Non - Independent Director
4. Udaipur Cement Works Limited Non-Executive Non - Independent Director
(xi) Shri A.S. Mehta, President & Director
1. Umang Dairies Limited Independent Director
2. JK Agri Genetics Limited Independent Director
Note: Shri Harsh Pati Singhania, Vice Chairman & Managing Director and
3.Separate Meeting of the Independent Directors
Shri M.H. Dalmia, Director do not hold directorships in any listed entity,
other than JK Paper Limited. In accordance with the provisions of Schedule IV of the Act and
Regulation 25 of the Listing Regulations, a separate meeting of the
Date and number of Board Meetings held Independent Directors of the Company was held on 27th January 2020.
Five Board Meetings were held during the year 2019-20 i.e., on 8th May, Shri Arun Bharat Ram was unanimously elected as Chairman of the
2019, 23rd July, 2019, 23rd October, 2019, 27th January, 2020 and 27th meeting and all the Independent Directors of the Company were
February, 2020. present at the said Meeting except Shri Shailendra Swarup and Shri
Udayan Bose to whom leave of absence was granted.
The Board periodically reviews Compliance Reports of all laws
applicable to the Company and has put in place procedure to review 4.Familiarisation Programme for Independent Directors
steps to be taken by the Company to rectify instances of non- In accordance with the provisions of Regulation 25(7) of the Listing
compliances, if any. Regulations, the Company has been conducting various familiarisation
The Company already has a Code of Conduct in position for programmes for Independent Directors. The details of such familiarisation
Management Cadre Staff (including Executive Directors). In terms of programmes for Independent Directors have been disclosed on the
provisions of Regulation 17(5) of the Listing Regulations, and website of the Company, the web link for which is
contemporary practices of good corporate governance, the Board has laid http://www.jkpaper.com/images/pdf/Familiarisation%20 Programme
down a code of conduct for all Board Members and Senior Management %20of%20INDs.pdf.
of the Company and the same is available on the website of the
5.Board Skills, Expertise or Competence
Company (www.jkpaper.com). All the Board Members and Senior
Management Personnel have affirmed compliance with the said code. The Board of Directors collectively possess appropriate skills,
This report contains a declaration to this effect signed by Vice Chairman experience and knowledge in one or more fields of finance, law,
& Managing Director. The Board is also satisfied that plans are in place management, sales & marketing, operations, corporate governance,
for orderly succession for appointments to the Board and to Senior education, community service and other disciplines as required in the
Management. context of the Company’s operations.
88 | JK Paper Ltd.
The core skills, experience and knowledge of individual Directors are: (a) accordance with the manner specified by the Nomination and
Shri Bharat Hari Singhania, Shri Harsh Pati Singhania and Smt. Vinita Remuneration Committee of Directors.
Singhania are industrialists and entrepreneurs having requisite skills,
experience and knowledge required in the context of the Company’s Performance of the Board was evaluated after seeking inputs from all the
operations; (b) Shri A.S. Mehta - professional having operational, Directors on the basis of the criteria such as adequacy of its
marketing, financial and industry experience; (c) Other Non-Executive composition and structure, effectiveness of board processes,
Directors of the Company namely - Shri Arun Bharat Ram, Shri M.H. information and functioning, etc.
Dalmia, Shri R.V. Kanoria and Shri Sandip Somany are industrialists and The performance of the Committees was evaluated by the Board after
entrepreneurs having management, financial and corporate governance seeking inputs from the Committee Members on the basis of the criteria
skills, experience and knowledge; Shri Dhirendra Kumar – business & such as composition of committees, terms of reference of committees,
commercial acumen and corporate governance; Shri Shailendra Swarup - effectiveness of the committee meetings, participation of the members of
law & regulatory affairs and community service; Shri S.K. Roongta – the committees in the meetings, etc.
management, operations and corporate governance; Shri Udayan Bose
- financial and management expertise; and Smt. Deepa Gopalan The Board also carried out evaluation of the performance of
Wadhwa, former ambassador, having international experience, individual Directors (including Independent Directors) on the basis of
education and community service. criteria such as attendance and effective participation and contributions
at the meetings of the Board and its Committees, exercise of his/her
6.Performance Evaluation duties with due & reasonable care, skill and diligence, etc.
As required, the Nomination and Remuneration Committee of In a separate meeting of the Independent Directors of the Company,
Directors specified the manner for effective evaluation of performance performance of Non-Independent Directors, performance of the Board
of the Board, its Committees and individual Directors (including as a whole and performance of the Chairman was evaluated, taking into
Independent Directors) in accordance with the provisions of the the Act account the views of Executive Directors and Non- Executive
and the Listing Regulations. Directors of the Company. The Chairman of the Meeting of the
Accordingly, the Board of Directors has made formal annual Independent Directors apprised the Board about the evaluation carried by
evaluation of its own performance, and that of its Committees and it and that the Independent Directors were satisfied in this regard.
Individual Directors (including Independent Directors) in
7.Audit Committee
The Composition and the“Terms of Reference”of the Committee are in conformity with the provisions of Section 177 of the Act and Regulation 18 of
the Listing Regulations.
Five meetings of the Committee were held during the year 2019-20.
The Composition of the Committee and attendance of the Members at the Meetings are as follows:
Name Position Category No. of Meetings

attended
Shri Udayan Bose Chairman Independent Director 4
Shri Arun Bharat Ram Member Independent Director 2
Shri R.V. Kanoria Member Independent Director 5
Shri A.S. Mehta Member Executive Director 5
Dates of the meetings and the number of the Members attended are:
Dates of meetings No. of Members

attended
8th May 2019 4
23rd July 2019 3
9th August 2019 3
23rd October 2019 3
27th January 2020 3

The Committee Meetings were attended by the Vice Chairman & Managing Director, Head of Internal Audit, Vice President & Company Secretary and
the representative of Statutory Auditors. The Head of Finance Function also regularly attends the Committee Meetings. The Vice President &
Company Secretary acts as the Secretary of the Committee.
8.1Nomination and Remuneration Committee

Three meetings of the Committee were held during the year 2019-20.

attended
Shri Arun Bharat Ram Chairman Independent Director 2
Shri Bharat Hari Singhania Member Non-Executive Non-Independent Director 3
Shri Udayan Bose Member Independent Director 3
Shri Dhirendra Kumar Member Non-Executive Non-Independent Director 2

attended
8th May 2019 5
27th June 2019 4
23rd October 2019 4
8.2Nomination and Remuneration Policy & regulations. The Committee shall periodically review the
In accordance with the provisions of the Act and the Listing compensation of such Directors in relation to other comparable
Regulations, the Company has put in place the Nomination and Companies and other factors, the Committee deems
Remuneration Policy for the Directors, Key Managerial Personnel and appropriate. Proposed changes, if any, in the compensation of such
Senior Management of the Company including criteria for Directors shall be reviewed by the Committee subject to approval of
determining qualifications, positive attributes, independence of a the Board.
Director as well as a policy on Board Diversity. The said policy is
(iii) The Board will review on an annual basis, the performance of the
available at the website of the Company and the weblink for the same
Board of Directors, its Committees and individual Directors as per
is https://www.jkpaper.com/images/pdf/Nomination%20 and
the manner of performance evaluation specified by the Committee
%20Remuneration%20Policy.pdf. The said policy provides as follows:
from time to time.
(i) The Nomination and Remuneration Committee of Directors (the
(iv) The Committee will review from time to time Board diversity to
Committee) shall take into consideration the following criteria
bring in professional performance in different areas of
for recommending to the Board for appointment of a Director
operations, transparency, corporate governance, financial
of the Company: (a) Qualifications & Experience
management, risk assessment & mitigation strategy and human
(b) Positive attributes like respect for Company’s core values,
resource management in the Company. The Company will keep
professional integrity, strategic capability with business vision, etc.
succession planning and board diversity in mind in
(c) In case the proposed appointee is an Independent Director, he
recommending any new name of Director for appointment to the
should fulfill the criteria for appointment as an Independent
Board.
Director as per the Act, Listing Regulations and other applicable
laws & regulations. (d) The incumbent should not be disqualified for (v) The eligibility criteria for appointment of Key Managerial
appointment as Director pursuant to the provisions of the Act or Personnel (KMPs) and other senior management personnel shall
other applicable laws & regulations. vary for different positions depending upon the job description of
the relevant position. In particular, the position of KMPs shall be
(ii) The Committee will recommend to the Board appropriate
filled by Senior Personnel having relevant qualifications and
compensation to Executive Directors subject to the provisions of
experience. The Compensation structure for KMPs and other
the Act, Listing Regulations and other applicable laws
senior management personnel shall be
90 | JK Paper Ltd.
as per Company’s remuneration structure taking into account factors unexpired residue of term or for 3 years, whichever is shorter and for
such as level of experience, qualification and suitability which shall the President & Director, 6 months’ salary in lieu of notice period.
be reasonable and sufficient to attract, retain and motivate them.
The remuneration would be linked to appropriate performance B.Non-Executive Directors
benchmarks. The remuneration may consist of fixed and incentive The Company has paid sitting fees aggregating to H42.70 lacs to all
pay reflecting short and long- term performance objectives Non-Executive Directors for attending the meetings of the Board
appropriate to the working of the Company and its goals. and/or Committees of Directors (including sitting fee for a separate
meeting of Independent Directors), during the financial year 2019-20.
8.3Remuneration paid to Directors In addition to sitting fees, commission of H200 lacs is payable to Shri
A.Executive Directors Bharat Hari Singhania, Chairman and H17 lacs each to Shri Arun Bharat
The aggregate value of salary, perquisites and contribution to Ram, Shri Dhirendra Kumar, Shri R.V. Kanoria, Shri Udayan Bose, Shri
Provident Fund and Superannuation Fund for the financial year ended Sandip Somany, Shri Shailendra Swarup, Shri M.H. Dalmia, Smt. Vinita
31st March, 2020 to the Executive Directors of the Company is as follows: Singhania and Shri S.K. Roongta and H13 lacs to Smt. Deepa Gopalan
Shri Harsh Pati Singhania, Vice Chairman & Managing Director: H7.41 Wadhwa, in accordance with the Special Resolution passed by the
crores plus H18.55 crores payable as commission and performance linked Members of the Company at the Annual General Meeting held on 14th
incentive as applicable and Shri A.S. Mehta, President & Director: H3.17 September 2016. Number of Equity shares of H10/- each of the
crores plus H1.15 crores payable as commission and performance linked Company held by the Non- Executive Directors: Shri Bharat Hari
incentive as applicable. Singhania (2,45,600 Equity Shares) and Smt. Vinita Singhania (7,32,350
Equity Shares).
The Company does not have any Stock Option Scheme. In the case of
Executive Directors, notice period is 6 months. Severance fee for the The Non-Executive Directors did not have any other material
Vice Chairman & Managing Director is remuneration for the pecuniary relationship or transactions vis-à-vis the Company during the
year.
9.Stakeholders’ Relationship Committee

Four meetings of the Committee were held during the year 2019-20.

attended
Shri Udayan Bose Chairman Independent Director 3
Shri Arun Bharat Ram Member Independent Director 2

attended
8th May 2019 4
23rd July 2019 3
23rd October 2019 3
27th January 2020 3
Shri Suresh Chander Gupta, Vice President & Company Secretary is the Compliance Officer.
Eight investor complaints were received during the financial year ended 31st March 2020, all of which were promptly resolved to the
satisfaction of the investor concerned.
The Board has delegated the power of physical share transfer/transmission/ transposition to the Committee of Directors which are regularly attended and
all valid requests are processed in time. However, pursuant to SEBI Notification dt. 30th November 2018 read with Regulation 40 of the Listing
Regulations, requests for effecting physical transfer of shares are now not being processed.

10.General Body Meetings:
(A)Location and time for last three Annual General Meetings were:
Year Location Date Time
2016-17 P.O. Central Pulp, Mills – 394 660 14-09-2017 12.30 P.M.
Fort Songadh, Distt. Tapi, Gujarat
2017-18 Same as above 17-08-2018 12.30 P.M.
2018-19 Same as above 23-08-2019 12.30 P.M.
(B) Special Resolutions passed in previous 3 Annual General

11.DISCLOSURES
Meetings:
(i) Related Party Transactions: Disclosures on materially significant related
(a) At the last Annual General Meeting of the Company held on 23rd party transactions that may have potential conflict with the interests
August 2019, following Special Resolutions were passed: of Company at large: None
(i) Reappointment of (a) Shri Arun Bharat Ram (DIN: All the Related Party Transactions are dealt with in accordance with
00694766) and (b) Shri M.H. Dalmia (DIN: 00009529) as the provisions of the Act and Regulation 23 of the Listing
Independent Directors of the Company for a second term for Regulations.
three consecutive years.
The Company has also formulated a policy on dealing with
(ii) Reappointment of Shri Shailendra Swarup (DIN: 00167799) as an Related Party Transactions and also on the materiality of Related Party
Independent Director of the Company for a second term for Transactions. This Policy is available on the website of the Company
four consecutive years. and the weblink for the same is https://www.jkpaper.
(iii) Reappointment of (a) Shri R.V. Kanoria (DIN: 00003792), (b) Shri com/images/pdf/Related%20Party%20Transaction%20Policy. pdf.
Sandip Somany (DIN: 00053597) and (c) Shri Udayan Bose Suitable disclosure as required by Indian Accounting Standard (Ind
(DIN: 00004533) as Independent Directors of the Company for As)-24 on Related Party transactions has been made in the Annual
a second term for five consecutive years. Report.
(iv) Approval of payment of annual remuneration for FY ended (ii) Details of non-compliance by the Company, penalties, strictures
March 2019 to Shri Bharat Hari Singhania, Chairman (Non- imposed on the Company by Stock Exchange or SEBI or any
Executive Director) of the Company. statutory authority, on any matter related to capital markets,
(b) At the Annual General Meeting of the Company held on 17th August during the last three years: None
2018, following Special Resolutions were passed: (iii) Vigil Mechanism/Whistle Blower Policy: The Board of Directors of
(i) Issue of Non-Convertible Debentures of upto H500 crores on the Company at its meeting held on 11th August 2014 has
private placement basis. formulated a Vigil Mechanism/the Whistle Blower Policy for the
Directors and Employees of the Company to report their genuine
(ii) Continuation of (a) Shri Bharat Hari Singhania (DIN: concerns or grievances relating to actual or suspected fraud,
00041156), (b) Shri Dhirendra Kumar (DIN: 00153773), as unethical behaviour, violation of the Company’s Code of Conduct
Non-Executive Directors of the Company, and (c) Shri Arun or Ethics Policy, and any other event which would adversely affect
Bharat Ram (DIN: 00694766), (d) Shri M.H. Dalmia (DIN: the interests of the business of the Company. Whistle Blowers may
00009529), as Non-Executive Independent Directors of the send their concerns/complaints to the Chairman of Audit
Company. Committee in a sealed envelope marked confidential, for
(c) At the Annual General Meeting of the Company held on 14th appropriate action.
September 2017, Special Resolution was passed for issue of Non- The details of establishment of such mechanism has been also
Convertible Debentures upto H335 crores on private placement disclosed on the website of the Company. It is affirmed that no
basis. personnel has been denied access to the Audit Committee.
(C) No Special Resolution was required to be passed through postal (iv) Prevention of Sexual Harassment of Women at Workplace: The
ballot during the financial year 2019-20. Company is sensitive to women employees at workplace. As
(D) No immediate proposal is there for passing any resolution required under the Sexual Harassment of Women at the
through postal ballot.
92 | JK Paper Ltd.
Workplace (Prevention, Prohibition and Redressal) Act, 2013, the Company has a formal policy to ensure safety of women and prevention of sexual
harassment, has set up a Internal Complaints Committee at its work place(s) to redress the complaints of women employees and requisite
disclosures in relation thereto are as under:
a. number of complaints filed during the financial year: Nil
b. number of complaints disposed of during the financial year: Nil
c. number of complaints pending as on end of the financial year: Nil
(v) 1. Risk Management
The Company has an elaborate Risk Management System to inform Board Members about risk assessment and minimization procedures.
2. Risk Management Committee
Pursuant to the provisions of Regulation 21 of the Listing Regulations, Board at its Meeting held on 8th May 2019 had constituted the Risk
Management Committee.
The Composition and the “Terms of Reference” of the Committee are in conformity with the provisions of the Regulation 21 of the Listing
Regulations. One Meeting of the Committee was held during the year 2019- 2020 i.e., on 27th January, 2020.
The Composition of the Committee and attendance of the Members at the Meeting are as follows:

attended
Shri R.V. Kanoria Chairman Independent Director 1
Shri S.K. Roongta Member Non-Executive Non-Independent Director 1
Shri A.S. Mehta Member President & Director 1
Shri V. Kumaraswamy Member Chief Finance Officer 1
Shri Partha Biswas Member Chief (Marketing & Sales) 0
(vi) Disclosure of commodity price risks and commodity hedging

(x) During the financial year ended 31st March 2020, the Company and
activities: The Company manages fluctuations in raw material prices
its subsidiary, namely, The Sirpur Paper Mills Limited has paid total
through stocking by advance procurement when the prices are
fees for various services including statutory audit, amounting to
perceived to be low and also enters into annual buying contracts
H45.83 lacs, including taxes, to the Statutory Auditors, namely,
as strategic sourcing initiative in order to keep raw material
M/s Lodha & Co., Chartered Accountants. Further, no fees was paid
availability and prices under check.
by any of the subsidiaries or by the Company to any entity in the
(vii) Details of utilization of funds raised through preferential network firm/ network entity of which the Statutory Auditors is a
allotment or qualified institutions placement as specified under part.
Regulation 32(7A) of the Listing Regulations: During the financial
(xi) Subsidiary Companies: The financial statements, in particular, the
year ended 31st March 2020, the Company has not raised any funds
investments made by unlisted subsidiary companies, if any, are
through preferential allotment or through Qualified Institutions
reviewed by the Audit Committee of the Company.
Placement.
The minutes of the Board meetings of unlisted subsidiary
(viii) A certificate has been issued by Shri Shiv Kumar Gupta,
companies are placed at the Board meeting of the Company. A
Company Secretary in Practice that none of the Directors on the
statement of all significant transactions and arrangements entered
Board of the Company have been debarred or disqualified from
into by unlisted subsidiary companies, if any, are also placed at the
being appointed or continuing as Directors of Companies by the
Board meeting of the Company.
Securities and Exchange Board of India / Ministry of Corporate
Affairs or any such statutory authority. The Company has formulated a policy for determining material
subsidiary as required under Regulation 16 of the Listing
(ix) There were no instances where the Board had not accepted any
Regulations and the same is disclosed on the Company’s
recommendation of any Committees of the Board which is
Website. The web link for the same is http://www.jkpaper.com/
mandatorily required during the financial year ended 31st March
images/pdf/Policy%20for%20Determining%20Material%20
2020.
Subsidiary.pdf.

During the year, the Company did not have any material unlisted subsidiary as defined in Regulation 16 of the Listing Regulations.
(xii) Corporate Social Responsibility Committee:
The Composition and Role of the Committee are in conformity with the provisions of Section 135 of the Act.
Two Meetings of the Committee were held during the year 2019- 2020 i.e., on 8th May 2019 and 27th January 2020. The
Composition of the Committee and attendance of the Members at the Meetings are as follows:

attended
Shri Harsh Pati Singhania Chairman Executive Director 2
Shri Shailendra Swarup Member Independent Director 1
(xiii) Dividend Distribution Policy: (6) Economic conditions and regulatory environment.
1. Preamble (7) Any other relevant factors that the Board may deem fit to
The SEBI (Listing Obligations and Disclosure Requirements) consider.
Regulations, 2015 (“Regulations”) require the top 500 listed
4. Utilisation of Retained Earnings
companies (by market capitalisation) to disclose a Dividend
Distribution Policy in the Annual Report and on the Corporate The retained earnings will be used inter alia for the
Website of the Company. Company’s growth plans, working capital requirements,
investments, debt repayments, meeting contingencies or for
Accordingly, the Board of Directors of the Company has
other needs of the Company.
approved the Dividend Distribution Policy of the Company at
its meeting held on 8th May, 2019. 5. Declaration of Dividend
The Board may declare/recommend Interim / Final
2. Objective
Dividend out of the profits of the Company for that year
The objective of this Policy is to provide a broad Dividend arrived at in conformity with the Companies Act. Only in
Distribution Framework to all the Stakeholders of the exceptional circumstances, the Board may consider utilizing
Company. its Retained Earnings for Declaration of Dividend subject to
The Board shall refer to the guidelines laid out in this other applicable legal provisions.
Dividend Distribution Policy while announcing any The dividend payout in each financial year, including
Dividend in a Financial Year keeping in mind the provisions of interim dividends, will be dependent on the existing and
the Companies Act, 2013 & Rules made therein & other expected underlying financial performance, market
applicable legal procedures. conditions, cash flow position and future requirements of funds
The Company currently has only one Class of Shares viz: and also non-financial factors prevailing during such financial
Equity Shares. year.
3. Factors to be considered while declaring dividend 6. Review & Modification of Dividend Distribution Policy
While recommending/ declaring Dividend, the Board shall take The Dividend Distribution Policy is subject to Review &
into account various Internal & External factors which shall Revision on periodical basis, as may be considered
inter-alia include: necessary by the Board. In case, the Board proposes to declare
Dividend based on the basis of parameters other than those
(1) Profitability of the Company during the relevant year
mentioned in the Dividend Distribution Policy, it shall
(2) Past Dividend trends disclose such changes alongwith the rationale therefore.
(3) Leverage profile 7. Disclaimer
(4) Future capital expenditure programmes including This document neither solicits investments in the
organic and inorganic growth opportunities. Company’s securities, nor it is an assurance of guaranteed
returns (in any form), for investments in the Company’s
(5) Company’s Liquidity Position and Cash flow position. equity shares.
94 | JK Paper Ltd.
12.Means of Communication
Quarterly, half yearly and annual financial results are normally published in the Economic Times newspaper (in all editions including Gujarati edition)
and are promptly furnished to the Stock Exchanges for display on their respective websites. The results are also displayed on the website of the
Company, www.jkpaper.com. Management Discussion & Analysis and Sustainability and Business Responsibility Report form part of the Annual
Report.
Presentations made to institutional investors or to the analysts, if any, are promptly displayed on the website of the Company.
13.General Shareholders’ Information
(i) Annual General Meeting (AGM):
(a) Date and Time : Friday, 11th September 2020 at 12.30 P.M.
Venue : P.O. Central Pulp Mills- 394 660, Fort Songadh, Distt. Tapi, Gujarat.
(b) A brief resume and other particulars of Director(s) seeking re-appointment at the aforesaid AGM are given in the Notes to the Notice
convening the said Meeting.
(ii) Book Closure/ Record date: : 7th September 2020 to 11th September 2020 (both days inclusive)
(iii)Dividend Payment Date: : Not Applicable as the Company has not proposed any final dividend on Equity S
(iv) Financial Calendar: : Year Ending March 31

Annual General Meeting for the year ending March 31,: Between June and September 2021 2021
(v) Names and address of Stock Exchanges (including Stock Code) where equity shares of the Company are listed: The Equity
Shares of the Company are listed on the following Stock Exchanges:
BSE Limited National Stock Exchange of India Ltd. (Stock
(Stock Code-532162) Code – JKPAPER)
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001 “Exchange Plaza”, Bandra-Kurla Complex, Bandra (East)
Mumbai - 400 051
The annual listing fee for the financial year 2020-21 has been paid to both the aforesaid Stock Exchanges.
(vi) Stock Market Price Data:

Month Stock Market Price on BSE Limited (BSE) Stock Market Price on National Stock Exchange
of India Limited (NSE)
High (H) Low (H) High (H) Low (H)
2019
April 155.50 137.65 155.90 137.10
May 145.80 122.15 145.55 122.05
June 134.40 120.00 134.45 120.10
July 132.75 107.50 132.70 107.45
August 113.00 93.10 112.95 94.10
September 151.95 100.10 151.85 100.00
October 151.80 111.15 151.65 111.15
November 128.60 113.05 128.70 113.15
December 134.90 114.60 134.95 114.45
2020
January 140.70 123.25 140.80 123.15
February 133.60 114.50 133.50 114.45
March 118.80 62.20 119.00 62.00
(Source: www.bseindia.com) (Source: www.nseindia.com)

(vii) JK Paper Ltd.’s Share Performance vs. BSE Sensex & Other Large Paper Companies’ Share Performance (Average) [April 2019 to
March 2020]
JK Paper Ltd.’s Share Performance vs. BSE Sensex & Other Large Paper Companies’ Share Performance (Average)
120
110
100
90
Relative Value to 100
80
70
60
50
40
30
April-19 Sep-19
May-19 Jun-19 Jul-19 Aug-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
Month & Year
JKPL BSE Sensex Other Large Paper Companies (Average)
(Source: www.bseindia.com)
(viii) Dematerialisation of shares and liquidity: The Equity Shares of the Company are presently tradeable in compulsory demat segment. The
ISIN for Equity Shares of the Company for both the depositories is INE789E01012. As on 31st March 2020, 97.57% of the Company’s Equity Share
Capital was in dematerialised form.
In respect of Shares held in dematerialised form, all the requests for nomination, change of address and rematerialisation etc. are to be made only to
the Depository Participant with whom the Shareholders have opened their Demat Account. The Company will not be in a position to process such
requests.
(ix) Share transfer system: The transmission of shares in physical form is normally processed and completed within 21 days after receipt of the
specified documents. In case of shares held in dematerialized form, the transfers/transmissions are processed by National Securities Depository
Limited / Central Depository Services (India) Limited through respective Depository Participants. Pursuant to SEBI Notification dt. 30th November
2018 read with Regulation 40 of the Listing Regulations, except in case of transmission or transposition of securities, requests for effecting transfer
of shares shall not be processed unless the shares are held in the dematerialized form with a depository.
(x) (a) Distribution of Equity Shareholding (both in physical and electronic form) as on 31st March 2020:
Number of Equity Shares held Shareholders Shares Held

Number % Number %
1 to 500 77,763 85.30 91,95,587 5.16
501 to 1,000 6,167 6.76 50,28,890 2.82
1,001 to 5,000 5,659 6.21 1,31,64,783 7.38
5,001 to 10,000 827 0.91 60,74,192 3.41
Over 10,000 750 0.82 14,47,80,133 81.23
Total 91,166 100.00 17,82,43,585 100.00
96 | JK Paper Ltd.
(b) Pattern of Equity Shareholding (both in physical and electronic form) as on 31st March 2020:
Category No. of Equity Shares held Percentage of Shareholding

Domestic Companies 9,43,70,899 52.94
Resident Individuals & Trusts 6,43,22,422 36.09
FIs, Mutual Funds & Banks 14,20,697 0.80
Foreign Investors/FPIs/ NRIs 1,81,29,567 10.17
Total 17,82,43,585 100.00
(xi) Outstanding GDRs/ADRs/Warrants or any Convertible Instruments, conversion date and likely impact on equity: NIL
(xii) Commodity price risk or foreign Exchange risk and hedging activities: During the financial year ended 31st March 2020, the Company has
managed the foreign exchange risk and hedged to the extent considered necessary. The Company enters into forward contracts, swaps & options for
hedging foreign exchange exposures against imports and exports.
The Company is having a Risk Management framework for identifying various risks and for formulating plans for mitigating the same. The risks as
well as mitigating plans are reviewed from time to time and are updated as may be required. The Company has also identified various risks
involved in respect of key raw material and has drawn risk mitigation plans for the same. Hardwood & Bamboo are considered a material
commodity, as its consumption in comparison to the overall cost of raw materials consumed, is around 47%. During the financial year ended 31st
March 2020, the Company consumed 8.24 lac MT of Hardwood & Bamboo, valuing H567.58 crores. The Company does not have any
exposure hedged through commodity derivatives.
(xiii) Plant locations:
(i) JK Paper Mills (Unit JKPM)
(ii) Central Pulp Mills (Unit CPM)
Jaykaypur - 765 017
P.O. Central Pulp Mills - 394 660 Fort
Distt. Rayagada (Odisha).
Songadh, Distt. Tapi (Gujarat)
(xiv) Address for correspondence for Share Transfer and related matters
1. Registrar and Share Transfer Agent (RTA)
MCS Share Transfer Agent Limited,
F-65, 1st Floor, Okhla Industrial Area, Phase – I, New Delhi-110 020 Ph. 011-
41406149-52, Fax No. 011- 41709881
E-mail: [email protected], Website: www.mcsregistrars.com
2. Company Secretary
JK Paper Limited
Gulab Bhawan (Rear Block - 3rd Floor), 6A, Bahadur Shah Zafar Marg, New Delhi-110 002 Ph. 011-
30179100, Fax No. 91-11-23739475
Email: [email protected], Website: www.jkpaper.com
(xv) List of all credit ratings obtained by the Company along with any revisions thereto during the financial year ended 31st March 2020:
A. Rating From CRISIL
At the beginning of Financial Year
Long Term Rating CRISIL A+/Stable
Short Term Rating CRISIL A1
Fixed Deposit FAA-/Stable
Upgraded during the year
Long Term Rating CRISIL AA-/Stable
Short Term Rating CRISIL A1+
Fixed Deposit FAA/Stable

B. Rating From India Ratings
At the beginning of Financial Year
Long Term Rating IND A+/Stable
Short Term Rating IND A1+
Fixed Deposit IND tAA-/Stable
Upgraded during the year
Long Term RatingIND A+/Stable Short Term RatingIND A1+
Fixed DepositIND tAA-/Stable
(xvi) This Corporate Governance Report of the Company for the There were no shares in the demat suspense account or unclaimed
financial year ended 31st March 2020 is in compliance with the suspense account during the financial year 2019-20.
requirements of Corporate Governance under the Listing
Regulations, as applicable. However, during the financial year 2019-20, the Company had
transferred 4,814 Equity Shares to Investor Education and Protection
(xvii) Adoption of discretionary requirements specified in Part E of Fund Authority pursuant to the provisions of Section 124 of the Act
Schedule II of the Listing Regulations- (a) Shareholder Rights: Half- read with the Investor Education and Protection Fund Authority
yearly and other quarterly financial results are published in (Accounting, Audit, Transfer and Refund) Rules, 2016.
newspapers and uploaded on Company’s website www.
jkpaper.com. At present, the half yearly financial performance and 14.Declaration
the summary of the significant events in last six months are not It is hereby declared that all the members of the Board and Senior
sent to each household of shareholders; (b) Modified opinion(s) in Management personnel have affirmed compliance with the “Code of
audit report: The financial statements (both standalone and Conduct for Members of the Board and Senior Management of JK Paper
consolidated) of the Company for the financial year ended 31st Limited” during the Financial Year ended 31st March 2020.
March 2020 are with unmodified audit opinion; (c) Separate posts
of Chairperson and CEO: Shri Bharat Hari Singhania is the Chairman of
the Company and Shri Harsh Pati Singhania is the Vice Chairman & Harsh Pati Singhania
Managing Director of the Company; and (d) Reporting of Internal Vice Chairman & Managing Director
Auditor: The Head of Internal Audit of the Company
administratively reports to the President & Director. However, his 15.Code for Prevention of Insider Trading
Internal Audit Reports are placed before the Audit Committee. In accordance with the Securities and Exchange Board of India
(xviii) The Company has complied with all the applicable requirements (Prohibition of Insider Trading) Regulations, 2015, as amended, the
specified in Regulations 17 to 27 and clauses (b) to (i) of sub– Board of Directors of the Company has adopted (i) the Code of
regulation (2) of Regulation 46 of the Listing Regulations. Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive
Information and (ii) the Code of Conduct to Regulate, Monitor and
(xix) Disclosure with respect to demat suspense account/ unclaimed Report Trading by Designated Persons in terms of the said Regulations.
suspense account
98 | JK Paper Ltd.
INDEPENDENT AUDITORS’ CERTIFICATE
ON CORPORATE GOVERNANCE
To 6. We have complied with the relevant applicable requirements of

The Members of the Standard on Quality Control (SQC) 1, Quality Control for Firms
JK Paper Limited that Perform Audits and Reviews of Historical Financial
Information, and Other Assurance and Related Services
1. We have examined the compliance of the conditions of Corporate
Engagements.
Governance by JK Paper Limited (“the Company”) for the year
ended on 31st March, 2020, as stipulated in Regulations 17 to 27, Opinion
clauses (b) to (i) of Regulation 46(2) and paragraphs C and D of 7. Based on our examination of the relevant records and according to
Schedule V of the Securities and Exchange Board of India (Listing the information and explanations provided to us and the
Obligations and Disclosure Requirements) Regulations, 2015, representations provided by the Management, we certify that the
(‘SEBI Listing Regulations’) as amended. Company has complied with the conditions of Corporate
Management’s Responsibility Governance as stipulated in Regulations 17 to 27 and clauses
(b) to (i) of Regulation 46(2) and para C and D of Schedule V of the
2. The compliance of conditions of Corporate Governance is the
SEBI Listing Regulations during the year ended 31st March, 2020.
responsibility of the management of the Company. This
responsibility includes the design, implementation and 8. We state that such compliance is neither an assurance as to the
maintenance of internal control and procedures to ensure the future viability of the Company nor the efficiency or
compliance with the conditions of the Corporate Governance as effectiveness with which the Management has conducted the affairs
stipulated in the SEBI Listing Regulations. of the Company.
Auditor’s Responsibility Restriction on Use

3. Our responsibility is limited to examining the procedures and 9. This certificate is issued solely for the purpose of complying with
implementation thereof, adopted by the Company for ensuring the aforesaid Regulations. Our Certificate should not to be used for
compliance with the conditions of the Corporate Governance. It is any other purpose or by any person other than the addressees of
neither an audit nor an expression of opinion on the financial this Certificate. Accordingly, we do not accept or assume any
statements of the Company. liability or duty of care for any other purpose or to any other person
to whom this Certificate is shown or into whose hands it may
4. We have examined the books of account and other relevant
come without our prior consent in writing.
records and documents maintained by the Company for the
purposes of providing reasonable assurance on the compliance with
Corporate Governance requirements by the Company.
5. We have carried out an examination of the relevant records of
the Company in accordance with the Guidance Note on
Certification of Corporate Governance issued by the Institute of the For Lodha & Co.
Chartered Accountants of India (the ICAl), the Standards on Chartered Accountants
Auditing specified under section 143(10) of the Companies Act Firm Registration No. 301051E
2013, in so far as applicable for the purpose of this certificate and as
N.K. Lodha
per the Guidance Note on Report or Certificates for Special
Place: New Delhi Partner
Purposes issued by the ICAI which requires that we comply with
Date: 12th May 2020 Membership No.: 85155
the ethical requirements of the Code of Ethics issued by the ICAI.
UDIN: 20085155AAAABN9382

Financial Statements
100 | JK Paper
Independent Auditor’s Report
To
The Members of
JK Paper Limited
Report on the Audit of the Standalone Financial Act, 2013. Our responsibilities under those Standards are further
Statements described in the Auditor’s Responsibilities for the Audit of
Opinion the Financial Statements section of our report. We are
We have audited the accompanying standalone financial independent of the Company in accordance with the Code of
statements of JK Paper Limited (“the Company”), which Ethics issued by the Institute of Chartered Accountants of India
comprise the Balance Sheet as at 31st March, 2020, the together with the ethical requirements that are relevant to our
Statement of Profit and Loss (including Other Comprehensive audit of the financial statements under the provisions of the
Income), Statement of Changes in Equity and the Statement of Companies Act, 2013 and the Rules made thereunder, and we have
Cash Flows for the year then ended, and notes to the financial fulfilled our other ethical responsibilities in accordance with
statements, including a summary of the significant accounting these requirements and the Code of Ethics. We believe that the
policies and other explanatory information (herein after referred to audit evidence we have obtained is sufficient and appropriate to
as “financial statements”). provide a basis for our opinion.
In our opinion and to the best of our information and according to Key Audit Matters
the explanations given to us, the aforesaid financial statements Key audit matters are those matters that, in our professional
give the information required by the Companies Act, 2013 (“the judgment, were of most significance in our audit of the
Act”) in the manner so required and give a true and fair view in standalone financial statements for the financial year ended 31 st
conformity with the accounting principles generally accepted in March, 2020. These matters were addressed in the context of our
India, of the state of affairs of the Company as at 31st March, audit of the standalone financial statements as a whole, and in
2020, its Profit including Other Comprehensive income, changes forming our opinion thereon, and we do not provide a
in equity and its cash flows for the year ended on that date. separate opinion on these matters. We have determined the
matters described below to be the key audit matters to be
Basis for Opinion
communicated in our report. For each matter below, our
We conducted our audit in accordance with the Standards on description of how our audit addressed the matter is provided in
Auditing (SAs) specified under Section 143(10) of the Companies that context:
Description of Key Audit Matter Audit procedures to addressed the key audit matter
1. Valuation of financial instruments (held at Our audit procedures includes:
fair value including securities and financial
Control testing:
Guarantees)
• We tested the design and operating effectiveness of key Controls.
The company has given letter of comfort to
banker against borrowing facilities extended • Controls over the validation, completeness, implementation and usage of
to a step down subsidiary of H361.14 crs valuation models.
(PY H166.14 crs) . The Company has also
Independent reperformance:
invested H121 crs up to year end in the
preference share capital of subsidiaries • Our own valuation specialists independently challenged management on the
(including a step down subsidiary) where valuations where they were found outside our expected range.
dividend rate is not at par with market Methodology choice:
instruments.
• In the context of observed industry practice, our own valuation specialists
We have considered the valuation of assisted us in challenging the appropriateness of significant models and
financial instruments as key audit matter methodologies used by an independent valuer in calculating fair values, risk
considering complexities and financial exposures, completeness of risk factors, and in calculating FVAs.
impact involved over financial statements.

Information Other than the Financial Statements and Those Board of Directors are also responsible for overseeing the
Auditor’s Report Thereon Company’s financial reporting process.
The Company’s Board of Directors is responsible for the

preparation of the other information. The other information
comprises the information included in the Management Discussion
and Analysis, Board’s Report including Annexures to Board’s
Report, Business Responsibility Report, Corporate Governance
and Shareholder’s Information, but does not include the
standalone financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other
information and we do not express any form of assurance
conclusion thereon. In connection with our audit of the financial
statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our
knowledge obtained during the course of our audit or otherwise
appears to be materially misstated.
If based on the work we have performed, we conclude that there
is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this
regard.
Responsibility of Management and Those Charged
with Governance for the Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 with respect
to the preparation of these financial statements that give a true
and fair view of the financial position, financial performance,
changes in equity and cash flows of the Company in
accordance with the accounting principles generally accepted
in India, including the Indian Accounting Standards (Ind AS)
specified under Section 133 of the Act. This responsibility also
includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of
the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant
to the preparation and presentation of the financial statements
that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is
responsible for assessing the Company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting
unless the Board of Directors either intends to liquidate the
Company or to cease operations, or has no realistic alternative but
to do so.
102 | JK Paper
Auditor’s Responsibilities for the Audit of the the financial statements, including the disclosures, and
Standalone Financial Statements whether the financial statements represent the underlying
transactions and events in a manner that achieves fair
Our objectives are to obtain reasonable assurance about
presentation.
whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under Section 143(3)(i)
of the Companies Act, 2013 we are also responsible for
expressing our opinion on whether the Company has
adequate internal financial controls system in place
and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
• Conclude on the appropriateness of management’s use
of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that
may cast significant doubt on the ability of the
Company to continue as a going concern. If we
conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the
related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease
to continue as a going concern.
• Evaluate the overall presentation, structure and content of
Materiality is the magnitude of misstatements in the financial
d) In our opinion, the aforesaid financial statements
statements that, individually or in aggregate, makes it probable
comply with the Indian Accounting Standards
that the economic decisions of a reasonably knowledgeable user
specified under Section 133 of the Act, read with Rule
of the financial statements may be influenced. We consider
7 of the Companies (Accounts) Rules, 2014.
quantitative materiality and qualitative factors in (i) planning the
scope of our audit work and in evaluating the results of our e) On the basis of the written representations received
work; and (ii) to evaluate the effect of any identified from the directors as on 31st March, 2020 taken on
misstatements in the financial statements. record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2020 from being appointed
We communicate with those charged with governance regarding,
as a director in terms of Section 164 (2) of the Act.
among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant f) ) With respect to the adequacy of the internal
deficiencies in internal control that we identify during our audit. financial controls over financial reporting of the
Company and the operating effectiveness of such
We also provide those charged with governance with a statement
controls, refer to our separate Report in “Annexure B”.
that we have complied with relevant ethical requirements
Our report expresses an unmodified opinion on the
regarding independence, and to communicate with them all
adequacy and operating effectiveness of the Company’s
relationships and other matters that may reasonably be thought
internal financial controls over financial reporting.
to bear on our independence, and where applicable, related
safeguards. g) The managerial remuneration for the year ended 31st
March, 2020 has been paid/ provided for by the
From the matters communicated with those charged with
Company to its directors in accordance with the
governance, we determine those matters that were of most
provisions of Section 197 read with Schedule V to the Act.
significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters. h) With respect to the other matters to be included in
We describe these matters in our auditor’s report unless law or the Auditor’s Report in accordance with Rule 11 of the
regulation precludes public disclosure about the matter or when, in Companies (Audit and Auditors) Rules, 2014, in our
extremely rare circumstances, we determine that a matter opinion and to the best of our information and according
should not be communicated in our report because the to the explanations given to us:
adverse consequences of doing so would reasonably be expected i. The Company has disclosed the impact of
to outweigh the public interest benefits of such communication. pending litigations on its financial position in its
Report on Other Legal and Regulatory Requirements standalone financial statements.;
1. As required by the Companies (Auditor’s Report) Order, 2016 ii. The Company has made provision, as required
(“the Order”), issued by the Central Government of India in under the applicable law or Indian Accounting
terms of sub-section (11) of Section 143 of the Companies Standards, for material foreseeable losses, if any, on
Act, 2013 we give in the “Annexure A” a statement on the long-term contracts including derivative contracts.;
matters specified in paragraphs 3 and 4 of the Order, to the iii. There were no amounts which were required to be
extent applicable. transferred to the Investor Education and
2. As required by Section 143(3) of the Companies Act, 2013 we Protection Fund by the Company.
report that:
a) We have sought and obtained all the information and
For LODHA & CO.
explanations which to the best of our knowledge and
Chartered Accountants
belief were necessary for the purposes of our audit.
Firm‘s Registration No.301051E
b) In our opinion, proper books of account as required by
law have been kept by the Company so far as it appears
from our examination of those books. (N. K. Lodha)
Partner
c) The Balance Sheet, the Statement of Profit and Loss
Membership No. 85155
including other comprehensive income, the Statement
of Changes in Equity and the Statement of Cash Flows Place: New Delhi
dealt with by this Report are in agreement with the Date: 12th May,
books of account. 2020
UDIN: 20085155AAAABI1980
104 | JK Paper
Annexure – A to the Auditors’ Report
The Annexure referred to in Independent Auditors’ Report to the

provisions of section 185 and 186 of the Act, with respect to
members of the JK Paper Limited on the standalone financial
the loans granted, providing guarantees and investments
statements for the year ended 31st March, 2020, we report that:
made.
(i) (a) The Company has maintained proper records showing full
(v) In our opinion and according to the information and
particulars, including quantitative details and situation of
explanations given to us, the Company has complied with
fixed assets.
the directives issued by the Reserve Bank of India and the
(b) The fixed assets have been physically verified by the provisions of Section 73 to 76 of the Act or any other
management according to the program of periodical relevant provisions of the Act and the rules framed there
verification in phased manner which in our opinion is under with regard to deposits accepted from the public. We
reasonable having regard to the size of the company and have been informed that no order has been passed by the
the nature of its fixed assets. The discrepancies noticed on Company Law Board or National Company Law Tribunal or
such physical verification were not material. Reserve Bank of India or any Court or other Tribunal in this
regard.
(c) According to the information and explanations given to
us and on the basis of our examination of the records of (vi) We have broadly reviewed the books of account maintained
the Company, the title deeds of immovable properties by the company pursuant to the rules made by the
are held in the name of the Company as at Balance Central Government for the maintenance of the cost
Sheet date except as stated in note no. 2(a) of the records under section 148(1) of the act in respect of the
standalone financial statements. company’s products to which the said rules are made
applicable and are on the opinion that prima facie, the
(ii) The inventories of the Company (except stock in transit, which
prescribed cost records have been made and maintained. We
has been verified on receipt of material and to be read with
have, however, not made a detailed examination of the said
note no. 37 w.r.t. year end verification of inventory) have
records with a view to determine whether they are accurate
been physically verified by the management at reasonable
or complete.
intervals and the procedures of physical verification of
inventory followed by the Management are reasonable in (vii) (a) According to the records of the company, the company
relation to the size of the Company and nature of its is regular in depositing undisputed statutory dues
business. The discrepancies noticed on such physical including provident fund, employees’ state insurance,
verification of inventory as compared to book records were income tax, custom duty, goods and service tax, cess
not material and have been properly dealt with in the books and other material statutory dues, with the appropriate
of accounts. authorities to the extent applicable and there are no
undisputed statutory dues payable for a period of
(iii) The Company has not granted any loans to bodies corporate
more than six months from the date they become
covered in the register maintained under section 189 of the
payable as at 31st March, 2020.
Companies Act, 2013 (‘the Act’), hence other parts of this
clause are not applicable. (b) According to the records and information & explanations
given to us, there are no dues in respect of income tax,
(iv) In our opinion and according to the information and
sales tax, service tax, goods and service tax, duty of excise
explanations given to us, the Company has complied with
and value added tax that have not been deposited with
the
the appropriate authorities on account of any dispute
except as given below:
Name of the statute Nature of dues Period to which Amount involved Forum where dispute is pending
amount relates (H in crores)
Central Excise Act, 1944 Central Excise 1981-1983 0.70 Deputy Commissioner Central Excise, Raygada
1982-1983 0.41 Supreme Court
1986-1995 1.31 High Court, Cuttack
2004-2010 0.20 CESTAT Ahmedabad

106 | JK Paper
Name of the statute Nature of dues Period to which Amount involved Forum where dispute is pending
amount relates (H in crores)
2011-2012 0.36 Addl. Commissioner Excise, Bhubaneshwar
2014-2017 0.10 Asst. Commissioner, Rayagada
2015-2016 7.42 CESTAT Mumbai
2015-2017 0.23 Commissioner (Appeals), Surat
2011-2012 &
Custom Act, 1962 Custom Duty 0.69 CESTAT Ahmedabad
2012-2013
Finance Act, 1944 Service Tax FY 2009-2010 0.25 Commissioner (Appeals), Surat
Sales Tax Sales Tax 1983-84/ 1987-88 0.05 Sales Tax Department - Delhi
1997-1998 0.10 Sales Tax Tribunal - Cuttack
2002-2003 0.01 Dy Commissioner Delhi
2006-2007 0.55 Gujarat VAT (Tribunal) Ahmedabad
2013-14 & 2014-15 0.59 Addl. Commissioner of Sales Tax, Cuttack
2013-2015 0.07 JCCT, Rayagada
2015-2016 0.08 Addl. Commissioner of Sales Tax, Berhampur
2015-2016 0.14 Addl. Commissioner of Sales Tax, Berhampur
2015-2016 0.01 Sales Tax, Tribunal, Cuttack, Orissa
2016-2018 0.15 Sales Tax, Tribunal, Cuttack, Orissa
Income Tax Act, 1961 Income Tax FY 2010-11 0.01 CIT(Appeals)
FY 2015-16 0.03 CIT(Appeals)
(viii)In our opinion, on the basis of audit procedures and

(x) Based on the audit procedures performed and on the
according to the information and explanation given to us,
basis of information and explanations given to us, no fraud
the company has not defaulted in repayment of loans and
by the Company or on the Company by its officers or
borrowings to financial institutions, banks or dues to
employees has been noticed or reported during the course of
Debenture holders. The company has not taken any loan from
our audit.
the government.
(xi) On the basis of records and information and explanations
(ix) On the basis of information and explanation given to us,
made available and based on our examinations of the records
term loans have been applied for the purposes for which
of the company, the company has paid / provided
they were obtained. The Company did not raise any
managerial remuneration for current year, in accordance with
money by way of initial public offer or further public offer
the requisite approvals mandated under Section 197 read
(including debt instruments).
with Schedule V of the Act. (Refer Note no.50(b).

(xii)On the basis of information and explanation given to us , the
connected with him. Accordingly, clause 3(xv) of the Order is
Company is not a Nidhi Company. Accordingly,
not applicable.
reporting under clause 3 (xii) of the said order is not applicable.
(xvi) According to the information and explanation given to
(xiii) As per the information and explanations and records
us, the Company is not required to be registered under
made available by the management of the company and
section 45-IA of the Reserve Bank of India Act, 1934.
audit procedures performed, for the related parties
transactions entered during the year, the company has
complied with the provisions of section 177 and 188 of the Act,
where applicable. As explained and as per the records / details, For LODHA & CO.
the related party transactions have been disclosed in the Chartered Accountants
standalone financial statements as required by the Firm‘s Registration No.301051E
applicable accounting standards (Refer Note no.50).
(xiv) During the year, the Company has not made any
preferential allotment or private placement of shares or fully or (N. K. Lodha)
partly paid convertible debentures and hence reporting Partner
under clause 3 Membership No. 85155
(xiv) of the Order is not applicable to the Company. Place: New Delhi
(xv) According to the information and explanations given to us Date: 12th May,
and based on our examination of the records, the Company 2020
has not entered into non-cash transactions with directors or UDIN: 20085155AAAABI1980
persons
Annexure – B to the Auditors’ Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial

of the accounting records, and the timely preparation of reliable
reporting of JK Paper Limited (“the Company”) as of 31st March,
financial information, as required under the Companies Act, 2013.
2020 in conjunction with our audit of the standalone financial
statements of the Company for the year ended on that date. Auditors’ Responsibility
Management’s Responsibility for Internal Financial Our responsibility is to express an opinion on the Company’s
Controls internal financial controls over financial reporting based on our
audit. We conducted our audit in accordance with the
The Board of Director of the Company is responsible for
Guidance Note on Audit of Internal Financial Controls over
establishing and maintaining internal financial controls based on
Financial Reporting (the “Guidance Note”) and the Standards on
the internal control over financial reporting criteria established by
Auditing, issued by ICAI and deemed to be prescribed under
the Company considering the essential components of internal
section 143(10) of the Companies Act, 2013, to the extent
control stated in the Guidance Note on Audit of Internal
applicable to an audit of internal financial controls, both
Financial Controls Over Financial Reporting issued by the
applicable to an audit of Internal Financial Controls and, both
Institute of Chartered Accountants of India (‘ICAI’). These
issued by the Institute of Chartered Accountants of India. Those
responsibilities include the design, implementation and
Standards and the Guidance Note require that we comply with
maintenance of adequate internal financial controls that were
ethical requirements and plan and perform the audit to obtain
operating effectively for ensuring the orderly and efficient
reasonable assurance about whether adequate internal financial
conduct of its business, including adherence to company’s
controls over financial reporting was established and maintained
policies, the safeguarding of its assets, the prevention and
and if such controls operated effectively in all material respects.
detection of frauds and errors, the accuracy and completeness
108 | JK Paper
Our audit involves performing procedures to obtain audit
Inherent Limitations of Internal Financial Controls Over
evidence about the adequacy of the internal financial controls
Financial Reporting
system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over Because of the inherent limitations of internal financial controls over
financial reporting included obtaining an understanding of financial reporting, including the possibility of collusion or improper
internal financial controls over financial reporting, assessing the management override of controls, material misstatements due to
risk that a material weakness exists, and testing and evaluating the error or fraud may occur and not be detected. Also, projections
design and operating effectiveness of internal control based on the of any evaluation of the internal financial controls over financial
assessed risk. The procedures selected depend on the auditor’s reporting to future periods are subject to the risk that the
judgment, including the assessment of the risks of material internal financial control over financial reporting may become
misstatement of the financial statements, whether due to fraud or inadequate because of changes in conditions, or that the degree
error. of compliance with the policies or procedures may deteriorate.
We believe that the audit evidence we have obtained is sufficient Opinion

and appropriate to provide a basis for our audit opinion on the In our opinion, the Company has, in all material respects, an
Company’s internal financial controls system over financial adequate internal financial controls system over financial
reporting. reporting and such internal financial controls over financial
reporting were operating effectively as at 31st March, 2020, based
Meaning of Internal Financial Controls over Financial
on the internal control over financial reporting criteria established by
Reporting
the Company considering the essential components of internal
A company’s internal financial control over financial reporting is a control stated in the Guidance Note on Audit of Internal Financial
process designed to provide reasonable assurance regarding Controls Over Financial Reporting issued by the Institute of
the reliability of financial reporting and the preparation of Chartered Accountants of India.
financial statements for external purposes in accordance with
generally accepted accounting principles. A company’s
internal financial control over financial reporting includes For LODHA & CO.
those policies and procedures that (1) pertain to the Chartered Accountants
maintenance of records that, in reasonable detail, accurately and Firm‘s Registration No.301051E
fairly reflect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial (N. K. Lodha)
statements in accordance with generally accepted accounting Partner
principles, and that receipts and expenditures of the company Membership No. 85155
are being made only in accordance with authorisations of
Place: New Delhi
management and directors of the company; and
Date: 12th May,
(3) provide reasonable assurance regarding prevention or timely
2020
detection of unauthorised acquisition, use, or disposition of the
UDIN: 20085155AAAABI1980
company’s assets that could have a material effect on the
financial statements.

Balance Sheet as at March 31, 2020
H in crores (10 Million)
Note March 31, 2020 March 31, 2019
ASSETS
Non-Current Assets
Property, Plant and Equipment 2 2,500.57 2,567.43
Capital Work-in-Progress 348.55 37.10
Other Intangible Assets 3 21.03 0.27
Intangible Assets Under Development 0.48 15.10
Financial Assets
Investments 4 318.31 275.93
Loans 5 163.50 41.13
Other Financial Assets 6 29.10 16.56
Other Non-Current Assets 7 172.85 15.34
3,554.39 2,968.86
Current Assets
Inventories 8 447.29 322.47
Financial Assets
Trade Receivables 10 74.70 77.17
Cash and Cash Equivalents 11 23.34 9.24
Bank Balances other than above 12 6.88 5.80
Loans 13 93.00 73.04
Other Current Assets 15 142.80 106.28
1,188.98 1,266.78
Total Assets 4,743.37 4,235.64
EQUITY AND LIABILITIES
Equity
Equity Share Capital 16 178.24 178.24
Other Equity 2,189.81 1,862.97
2,368.05 2,041.21
LIABILITIES
Non-Current Liabilities
Financial Liabilities
Borrowings 17 1,016.08 1,074.77
Other Financial Liabilities 18 74.23 59.60
Provisions 19 9.10 7.49
Deferred Tax Liabilities (Net) 20 335.87 234.93
1,435.28 1,376.79
Current Liabilities
Borrowings 21 116.67 18.04
Trade Payables 22
Micro & Small Enterprises 4.77 0.84
Others 332.47 265.64
Other Current Liabilities 24 137.13 174.74
Current Tax Liabilities 26 3.96 7.77
940.04 817.64
Total Equity and Liabilities 4,743.37 4,235.64
Significant Accounting Policies 1
The accompanying notes referred to above form an integral part of the Standalone Financial Statements
As per our report of even date attached For and on behalf of the Board of Directors
for LODHA & CO. Harsh Pati Singhania
Chartered Accountants Vice Chairman & Managing
Director Firm’s Registration Number 301051E
A. S. Mehta
President & Director
(N.K. LODHA)
Partner
Membership No. 85155 V. Kumaraswamy Suresh Chander Gupta
New Delhi, the 12th May, 2020 Chief Finance Officer Vice President & Company Secretary
110 | JK Paper
Statement of Profit & Loss for the year ended March 31, 2020
Note 2019-20 2018-19
REVENUES :
Sales 3,254.20 3,469.19
Less : Discounts 240.07 235.55
Net Sales 3,014.13 3,233.64
Other Operating Revenues 27 40.17 22.66
Revenue from Operations 3,054.30 3,256.30
Other Income 28 81.16 55.77
Total Revenues 3,135.46 3,312.07
EXPENSES
Cost of Materials Consumed 29 1,216.87 1,278.11
Purchases of Stock-in-Trade 279.90 301.53
Changes in Inventories of Finished Goods, Stock-in-Trade and Work-in-Progress 30 (123.60) 47.19
Employee Benefits Expense 31 277.20 262.26
Finance Costs 32 122.81 122.40
Depreciation and Amortisation Expenses 33 143.56 125.30
Other Expenses 34 500.13 496.93
Total Expenses 2,416.87 2,633.72
Profit Before Interest, Depreciation & Tax (EBITDA) 984.96 926.05
Profit/(Loss) Before Tax 718.59 678.35
Tax Expense
Current Tax (MAT) 215.38 144.99
Less : MAT Credit Entitlement 1.93 (99.24)
Provision / (Credit) for Deferred Tax 8.57 195.40
Profit for the period 492.71 437.20
Other Comprehensive Income
Items that will not be reclassified to statement of Profit and Loss
(i) Re-measurement Gain/(Loss) on Defined Benefit Plans (2.78) (1.72)
(ii) Tax on (i) above 0.97 0.60
(iii) Equity Instruments through Other Comprehensive Income (2.90) (2.20)
(iv) Tax on (iii) above - -
Total Comprehensive Income for the period 488.00 433.88
Earnings per Equity Shares
1) Basic (in H) 27.64 24.57
2) Diluted (in H) 27.64 24.51
A. S. Mehta
(N.K. LODHA)
Partner

Statement of Changes in Equity for the year ended March 31,
2020
A. EQUITY SHARE CAPITAL H in crores (10 Million)

March 31, 2018 Changes in Equity Share March 31, 2019 Changes in Equity Share Capital March 31, 2020
Capital during 2018-19 during 2019-20
175.50 2.74 178.24 - 178.24
B. OTHER EQUITY
Reserve and Surplus (OCI)
Retained Capital Capital Securities Debenture General Items that will not be
Particulars Earnings Reserve Redemption Premium Redemption Reserve Reclassified to profit or loss Total
Reserve Reserve Reserve Re-measurement Equity
of the net defined Instruments
benefit plans through OCI
March 31, 2018 571.94 29.92 3.00 513.21 - 350.59 (6.97) 8.40 1,470.09
Profit for the year 437.20 - - - - - - - 437.20
FCCB Conversion - - - 12.72 - - - - 12.72
Transfer from Retained (200.00) - - - - 200.00 - - -
Earnings
Other Comprehensive - - - - - - (1.12) (2.20) (3.32)
Income for the year
Transfer to debenture (4.74) - - - 4.74 - - - -
redemption reserve
Dividend including (53.72) - - - - - - - (53.72)
Corporate Dividend Tax
March 31, 2019 750.68 29.92 3.00 525.93 4.74 550.59 (8.09) 6.20 1,862.97
Profit for the year 492.71 - - - - - - - 492.71
Transfer from Retained (200.00) - - - - 200.00 - - -
Earnings
Other Comprehensive - - - - - - (1.81) (2.90) (4.71)
Income for the year
Dividend including (161.16) - - - - - - - (161.16)
Corporate Dividend Tax
March 31, 2020 882.23 29.92 3.00 525.93 4.74 750.59 (9.90) 3.30 2,189.81
A. S. Mehta
(N.K. LODHA)
Partner
112 | JK Paper
Notes to the Standalone Financial Statement for the year ended March 31,
Note 1. COMPANY OVERVIEW, BASIS OF PREPARATION & SIGNIFICANT ACCOUNTING POLICIES
I. The Company Overview
JK Paper Ltd, a Public Limited Company listed on the National Stock Exchange of India Ltd and the Bombay Stock Exchange
Limited. The registered office of the Company is situated at Fort Songadh , Dist- Tapi- 394660,Gujarat. The Company is India’s largest
producer of branded papers and a leading player in Coated Papers and High-end Packaging Boards. The Company has two
integrated Pulp and Paper Plants at Strategic Locations Unit JKPM in East (Rayagada, Odisha) and Unit CPM in West (Songadh, Gujarat).
The Company has expanded its capacity multifold over the years and has been able to bring in state of the art technology as well. It
is the 1st Indian paper company to introduce Colorlok Technology in its complete range of Copier papers in India,1st Indian paper
company to get TPM certification from JIPM, Japan; 3rd Paper Company in the World and also 1st Paper Mill in India to get ISO
9001,ISO 14001 and OHSAS 18000.
These financial statements were approved and adopted by the Board of Directors of the Company in their meeting held on May 12,
2020.
II. Basis of Preparation of Financial Statements
(i) Statement of Compliance
The Financial Statements have been prepared in accordance with Indian Accounting Standards (IND AS) as prescribed
under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 and Companies
(Indian Accounting Standards) (Amendment) Rules, 2016 and relevant provisions of the Companies Act, 2013.
(ii) Basis of Preparation
The separate financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind
AS) notified under the Companies (India Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standard)
(Amendment) Rules, 2016. The Company has prepared these financial statements to comply in all material respects with the
accounting standards notified under Section 133 of the Companies Act 2013 (“the Act”).
The financial statements have been prepared on an accrual basis and under the historical cost basis.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a
revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The financial statements
are presented in INR and all values are rounded to the nearest H crores (10 Million), except when otherwise indicated.
(iii) Use of Estimates
The preparation of financial statements in conformity with Ind AS requires the management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities,
at the end of the reporting period. Although these estimates are based upon management’s best knowledge of current events
and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment
to the carrying amounts of assets or liabilities in future periods
Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the
estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material,
their effects are disclosed in the notes to the financial statements.
(iv) Classification of Assets and Liabilities as Current and Non Current
All Assets and Liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of product & activities of the Company and
their realisation in cash and cash equivalent, the Company has determined its operating cycle as twelve months for the
purpose of current and non-current classification of assets and liabilities. Deferred tax assets and liabilities are classified as non-
current assets and liabilities.
III. Significant Accounting Policies for the year ended 31st March, 2020
(i) Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue
can be reliably measured. The specific recognition criteria described below also be met before revenue is recognised.

2020
Sale of Goods
Revenue from the sale of goods is recognised upon satisfaction of performance obligation which is at a point in time when
control of the goods is transferred to the customer, the Company no longer has effective control over the goods sold, the
amount of revenue and costs associated with the transaction can be measured reliably and no significant uncertainty exists
regarding the amount of Consideration that will be derived from the sales of Goods. Revenue from the sale of goods is
measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume
rebates. Export incentives, Duty drawbacks and other benefits are recognized in the Statement of Profit and Loss.
Interest Income
Interest income is recognized on time proportion basis using the effective interest method.
Dividend Income
Dividend income is recognized when the right to receive payment is established, which is generally when shareholders approve
the same.
Renewal Energy Certificate
Renewable Energy Certificate (REC) benefits are recognized in Statement of Profit & Loss on sale of REC’s.
(ii) Inventory Valuation
Inventories such as Raw Materials, Work-in-Progress, Finished Goods, Stock in Trade, Stores & Spares and Renewable Energy
Certificates are valued at the lower of cost and net realisable value (except scrap/waste which are value at net realisable value). The
cost is computed on weighted average basis. Finished Goods and Process Stock include cost of conversion and other costs
incurred in bringing the inventories to their present location and condition.
(iii) Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand cash at bank and demand deposits with banks with an original maturity of
three months or less which are subject to an insignificant risk of change in value.
(iv) Property, Plant and Equipment
On transition to IND AS, the company has adopted optional exception under Ind AS 101 to measure Property, Plant and
Equipment (PPE) at fair value. Consequently the fair value has been assumed to be deemed cost of PPE on the date of transition.
Subsequently PPE are carried at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes
expenditure that is directly attributable to the acquisition of the items.
PPE acquired are stated at cost net of tax/duty credit availed, less accumulated depreciation and accumulated impairment losses, if
any. Cost includes expenses directly attributable to bringing the asset to the location and condition necessary for it to be capable
of operating in the manner intended by management
Capital work-in-progress includes cost of PPE under installation / under development as at the balance sheet date. Advances paid
towards the acquisition of PPE outstanding at each balance sheet date is classified as capital advances under other non-current
assets.
Subsequent expenditures relating to PPE is capitalized only when it is probable that future economic benefits associated with
these will flow to the Company and the costs to the item can be measured reliably. Repairs and maintenance costs are
recognized in net profit in the statement of profit and loss when incurred. The cost and related accumulated depreciation are
eliminated from the financial statements upon sale or retirement of the asset and the resultant gain or losses are recognized in the
statement of profit and loss.
Depreciation on Buildings, Plant & Machinery, Railway Siding and Other Assets of all Units is provided as per straight line
method over their useful lives as prescribed under Schedule II of Companies Act, 2013. However, in respect of certain property,
plant and equipment, depreciation is provided as per their useful lives as assessed by the management supported by technical
advice ranging from 10 to 40 years for plant and machinery and 8 to 60 years for buildings.
Depreciation on additions due to exchange rate fluctuation is provided on the basis of residual life of the assets. Depreciation
on assets costing up to H5000/- and on Temporary Sheds is provided in full during the year of additions.
112 | JK Paper
2020
Depreciation will be charged from the date the assets is available for use, i.e., when it is in the location and condition necessary for it
to be capable of operating in the manner intended by management. The residual values, useful lives and methods of
depreciation of PPE are reviewed at each financial year end and adjusted prospectively, if appropriate.
Leased Assets
Leasehold lands are amortized over the period of lease, Buildings constructed on leasehold land are depreciated based on the
useful life specified in Schedule II to the Companies Act, 2013, where the lease period of land is beyond the life of the building.
Intangible Assets
Intangible Assets are recognised, if the future economic benefits attributable to the assets are expected to flow to the
company and cost of the asset can be measured reliably. All other expenditure is expensed as incurred. The same are amortised over
the expected duration of benefits. Such intangible assets are measured at cost less any accumulated amortisation and impairment
losses, if any and are amortised over their respective individual estimated useful life on straight line method.
The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end
of each reporting period and adjusted prospectively, if appropriate.
(v) Research and Development Costs
Revenue expenditure on Research and Development is charged to statement of Profit and loss in the year in which it is
incurred and capital expenditure is added to Fixed Asset.
(vi) Leases
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to
control the use of an identified asset for a period of time in exchange for consideration.
Company as a Lessee
The Company has adopted Ind AS 116 “Leases” effective April 1, 2019 (Transition date)
The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of
low- value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right
to use the underlying assets.
The Company has adopted Ind AS 116 “Leases” effective April 1,2019(Transition date) using the simplified approach (Retrospective
cumulative effect from April 1, 2019)
Right-of-use Assets
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available
for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any re-
measurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct
costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use
assets are depreciated on a straight-line basis from the commencement date over the shorter of the lease term and the estimated
useful lives of the assets.
If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase
option, depreciation is calculated using the estimated useful life of the asset.
Lease Liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments)
less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid
under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to
be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company
exercising the option to
terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred
to produce inventories) in the period in which the event or condition that triggers the payment occurs.

2020
In calculating the present value of lease payments, the Company uses its existing borrowing rate at the lease commencement
date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of
lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying
amount of lease liabilities is re-measured if there is a modification, a change in the lease term, a change in the lease payments (e.g.,
changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in
the assessment of an option to purchase the underlying asset.
Lease liabilities and Right-of-use assets have been presented as a separate line in Note 2 of Property, Plant and Equipment (PPE) and
Note 17 of Non Current Financial Liabilities -Borrowings. Lease payments have been classified as cash used in financing
activities.
Short-Term Leases and Leases of Low-value Assets
The Company has elected not to recognise right-of-use assets and lease liabilities for short term leases of all assets that have a lease
term of 12 months or less and leases of low-value assets. The Company recognises the lease payments associated with these
leases as an expense on a straight-line basis over the lease.
The Company as a Lessor
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases
are classified as operating leases.
For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.
(vii)Impairment
The carrying amount of PPEs, Intangible assets and Investment property are reviewed at each Balance Sheet date to assess
impairment if any, based on internal / external factors. An asset is treated as impaired, when the carrying cost of asset exceeds its
recoverable value, being higher of value in use and net selling price. An impairment loss is recognised as an expense in the
Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior
accounting period is reversed, if there has been an improvement in recoverable amount.
(viii) Financial Assets & Liabilities
A Financial Instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument
of another entity.
At initial recognition, all financial assets are measured at fair value. Such financial assets are subsequently classified under following
three categories according to the purpose for which they are held. The classification is reviewed at the end of each reporting period.
(a) Financial Assets at Amortised Cost
At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount
outstanding on specified dates. These financial assets are intended to be held until maturity. Therefore, they are subsequently
measured at amortised cost by applying the Effective Interest Rate (EIR) method to the gross carrying amount of the financial
asset. The EIR amortisation is included as interest income in the profit or loss. The losses arising from impairment are recognised
in the profit or loss.
(b) Financial Assets at Fair value through Other Comprehensive Income
At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount
outstanding on specified dates, as well as held for selling. Therefore, they are subsequently measured at each reporting date
at fair value, with all fair value movements recognised in Other Comprehensive Income (OCI). Interest income calculated
using the effective interest rate (EIR) method, impairment gain or loss and foreign exchange gain or loss are recognised
in the Statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss previously recognised in Other
Comprehensive Income is reclassified from the OCI to Statement of Profit and Loss.
(c) Financial Assets at Fair value through Profit or Loss
At the date of initial recognition, Financial assets are held for trading, or which are measured neither at Amortised Cost
nor at Fair Value through OCI. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value
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movements recognised in the Statement of Profit and Loss.

2020
Trade Receivables
A Receivable is classified as a ‘Trade Receivable’ if it is in respect to the amount due from customers on account of goods sold
or services rendered in the ordinary course of business. Trade receivables are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method, less provision for impairment. For some trade receivables the
Company may obtain security in the form of guarantee, security deposit or letter of credit which can be called upon if the
counterparty is in default under the terms of the agreement.
Impairment is made on the expected credit losses, which are the present value of the cash shortfalls over the expected life of
financial assets. The estimated impairment losses are recognised in a separate provision for impairment and the impairment
losses are recognised in the Statement of Profit and Loss within other expenses.
Subsequent changes in assessment of impairment are recognised in provision for impairment and the change in
impairment losses are recognised in the Statement of Profit and Loss within other expenses.
Investment in Equity Shares
Investments in Equity Securities are initially measured at cost. Any subsequent fair value gain or loss is recognized through
Profit or Loss if such investments in Equity Securities are held for trading purposes. The fair value gains or losses of all other
Equity Securities are recognized in Other Comprehensive Income.
Investment in Associates, Joint Ventures and Subsidiaries
The Company has accounted for its investment in subsidiaries, associates and joint venture at cost.
Investments in Mutual Funds
Investments in Mutual Funds are accounted for at cost. Any subsequent fair value gain or loss is recognized through Profit or
Loss Account.
Derecognition
Financial Asset is primarily derecognised when:
(i) The right to receive cash flows from asset has expired, or
(ii) The Company has transferred its right to receive cash flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to a third party under a “ pass-through” arrangement and either:
a) The Company has transferred substantially all the risks and rewards of the asset, or
b) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
When the Company has transferred its right to receive cash flows from an asset or has entered into a pass through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company
continues to recognise the transferred asset to the extent of the Company’s continuing involvement. In that case, the
Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that
reflects the rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original
carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.
Initial Recognition and Measurement
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs. The Company’s financial liabilities include trade and other payables, loans and borrowings
including bank overdrafts, and derivative financial instruments.
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Subsequent Measurement
The measurement of financial liabilities depends on their classification, as described below :
a) Financial Liabilities at Fair Value through Profit or Loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading. The Company has not
designated any financial liabilities upon initial measurement recognition at fair value through profit or loss. Financial
liabilities at fair value through profit or loss are at each reporting date with all the changes recognized in the Statement
of Profit and Loss.
b) Financial Liabilities measured at Amortised Cost
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the
effective interest rate method (‘’EIR’’) except for those designated in an effective hedging relationship. The carrying value
of borrowings that are designated as hedged items in fair value hedges that would otherwise be carried at amortised
cost are adjusted to record changes in fair values attributable to the risks that are hedged in effective hedging
relationship.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fee or costs that are
an integral part of the EIR. The EIR amortisation is included in finance costs in the Statement of Profit and Loss.
c) Loans and Borrowings
After initial recognition, interest-bearing borrowings are subsequently measured at amortised cost using the effective
interest rate method. Any difference between the proceeds (net of transaction costs) and the redemption amount is
recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on
the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that
some or all of the facility will be drawn down.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of
the liability for at least twelve months after the reporting period.
d) Trade and Other Payables
A payable is classified as ’trade payable’ if it is in respect of the amount due on account of goods purchased or services
received in the normal course of business. These amounts represent liabilities for goods and services provided to the
Company prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities
unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and
subsequently measured at amortised cost using the effective interest method.
De-recognition of Financial Liability
A Financial Liability is derecognised when the obligation under the liability is discharged or cancelled or expires. The
difference between the carrying amount of a financial liability that has been extinguished or transferred to another party
and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss
as other income or finance costs.
Offsetting of Financial Instruments
Financial Assets and Financial Liabilities are offset and the net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to
realise the assets and settle the liabilities simultaneously.
Derivative Financial Instruments
The Company uses derivative financial instruments, such as forward currency contracts and interest rate swaps to hedge
its foreign currency risks and interest rate risks. Derivative financial instruments are initially recognised at fair value on the
date a derivative contract is entered into and are subsequently re-measured at their fair value at the end of each period.
The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a
hedging instrument, and if so, on the nature of the item being hedged. Any gains or losses arising from changes in
the fair value of derivatives are taken directly to profit or loss.

2020
Compound Financial Instruments

The liability component of a compound financial instrument is recognised initially at fair value of a similar liability
that does not have an equity component. The equity component is recognised initially as the difference between the
fair value of the compound financial instrument as a whole and the fair value of the liability component. Any directly
attributable transaction costs are allocated to the liability and the equity components, if material, in proportion to
their initial carrying amounts.
Subsequent to the initial recognition, the liability component of a compound financial instrument is measured at
amortised cost using the effective interest rate method. The equity component of a compound financial instrument is
not re-measured subsequent to initial recognition except on conversion or expiry.
(ix) Foreign Exchange Transactions / Translations / Hedge Accounting
Financial statements are presented in Indian Rupee, which is Company’s functional currency. Monetary assets and liabilities
denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Financial
instruments designated as Hedge Instruments are mark to market using the valuation given by the bank on the reporting date.
Exchange differences arising on settlement of monetary items on actual payments / realisations and year end translations including
on forward contracts are dealt with in Profit and Loss Statement except exchange differences arising on those Long term
foreign currency monetary items, related to acquisition of depreciable capital assets being carried forward from previous GAAP,
which are adjusted to cost of such assets and depreciated over their balance life pursuant to the option in Notification No.
G.S.R 914(E) dated 29th December, 2011 issued by Ministry of Corporate Affairs. Non Monetary Foreign Currency items are
stated at cost.
(x) Employee Benefits
a) Defined Contribution Plan
The Company makes defined contribution to Superannuation Funds, which are accounted on accrual basis as expenses in
the statement of Profit and Loss
b) Defined Benefit Plan
The Company’s Liabilities on account of Gratuity and Earned Leave on retirement of employees are determined at the end
of each financial year on the basis of actuarial valuation certificates obtained from Registered Actuary in accordance with
the measurement procedure as per Indian Accounting Standard (Ind AS-19), ‘Employee Benefits’. These liabilities are funded on
year-to-year basis by contribution to respective funds. The costs of providing benefits under these plans are also determined
on the basis of actuarial valuation at each year end. Actuarial gains and losses for defined benefit plans are recognized
through OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.
The Provident Fund Contribution other than contribution to Employees’ Regional Provident Fund, is made to trust
administered by the trustees. The interest rate to the members of the trust shall not be lower than the statutory rate
declared by the Central Government under Employees’ Provident Fund and Miscellaneous Provision Act, 1952. The
Employer shall make good deficiency, if any.
The Defined Benefit Plan can be short term or Long terms which are defined below:
i) Short-Term Employee Benefit
All employees’ benefits payable wholly within twelve months rendering services are classified as short term employee
benefits. Benefits such as salaries, wages, short-term compensated absences, performance incentives etc., and the
expected cost of bonus, ex-gratia are recognized during the period in which the employee renders related service.
ii) Long-Term Employee Benefits
Compensated absences which are not expected to occur within 12 months after the end of the period in which the
employee renders the related services are recognized as a liability at the present value of the defined benefit obligation
at the balance sheet date.
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c) Termination Benefits
Termination benefits are recognized as an expense in the period in which they are incurred. The Company shall recognise
a liability and expense for termination benefits at the earlier of the following dates:
(a) When the entity can no longer withdraw the offer of those benefits; and
(b) When the entity recognises costs for a restructuring that is within the scope of Ind AS 37 and involves the payment of
termination benefits.
(xi) Earnings per Share (EPS)
Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the
weighted average number of equity shares outstanding during the period.
Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by
the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted
average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The
dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair
value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted
as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for
each period presented.
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for
any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the
Board of Directors.
(xii)Income Tax
Current Income Tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the
reporting date.
Current income tax relating to items recognised directly in equity is recognised in equity and not in the statement of profit and loss.
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations
are subject to interpretation and establishes provisions where appropriate.
Deferred Tax
Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purpose at reporting date. Deferred income tax assets
and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the balance sheet
date and are expected to apply to taxable income in the years in which those temporary differences are expected to be
recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or
expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is
recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary
differences and tax losses can be utilized. The Company offsets current tax assets and current tax liabilities, where it has a legally
enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and
settle the liability simultaneously.
Minimum Alternate Tax
Minimum Alternate Tax credit is recognized, as an asset only when and to the extent there is convincing evidence that the
Company will pay normal income tax during the specified period.
(xiii) Provisions and Contingent Liabilities /Assets
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of
2020
profit and loss net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using
a current pre-tax rate
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that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.
Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement. Contingent liabilities
are not recognised but are disclosed in notes.
Contingent Assets are not recognised in financial statements but are disclosed, since the former treatment may result in the
recognition of income that may or may not be realised. However, when the realisation of income is virtually certain, then the
related asset is not a contingent asset and its recognition is appropriate.
(xiv) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of
a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of
the Company are segregated.
(xv) Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are
expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in
connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an
adjustment to the borrowing costs.
(xvi) Fair Value Measurements
The Company measures financial instruments such as derivatives and certain investments, at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset
or transfer the liability takes place either:
• In the principal market for the asset or liability.
Or
• In the absence of a principal market , in the most advantageous market for the asset or liability. The principal or the most
advantageous market must be accessible by the Company.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole;
• Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
• Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable.
• Level 3- Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
(xvii) Significant Accounting Judgments, Estimates and Assumptions
In the process of applying the Company’s accounting policies, management has made the following estimates, assumptions
and judgements which have significant effect on the amounts recognized in the financial statement:
a. Income Taxes
Judgment of the Management is required for the calculation of provision for income taxes and deferred tax assets and liabilities.
The company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used in estimates may
differ from actual outcome which could lead to significant adjustment to the amounts reported in the standalone financial
statements.

2020
b. Contingencies
Judgment of the Management is required for estimating the possible outflow of resources, if any, in respect of contingencies/
claim/litigations against the company as it is not possible to predict the outcome of pending matters with accuracy.
c. Allowance for uncollected accounts receivable and advances
Trade receivables do not carry any interest and are stated at their normal value as reduced by appropriate allowances for
estimated irrecoverable amounts. Individual trade receivables are written off when management deems them not collectible.
Impairment is made on ECL, which are the present value of the cash shortfall over the expected life of the financial assets.
d. Defined Benefit Plans
The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation
are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from
actual developments in future. These Includes the determination of the discount rate, future salary increases, mortality
rates and attrition rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation
is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
e. Fair Value Measurement of Financial Instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based
on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash
Flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not
feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as
liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of
financial instruments.
Note 2. PROPERTY, PLANT AND EQUIPMENT (PPE)
Gross Carrying Value Depreciation Net Carrying Value
Description April 1, Additions/ Sales/ March April For the On Sales/ March March March
2019 Adjustments Adjustments 31, 2020 1, 2019 year Adjustments 31, 2020 31, 2020 31, 2019
Land - Freehold 275.33 - - 275.33 - - - - 275.33 275.33
(a)
- Leasehold^ 82.76 - 82.76 - 5.88 5.88 - - 76.88
-Right-of-use - 76.88 - 76.88 - 1.45 - 1.45 75.43 -
Asset^
Building 294.43 0.47 0.06 294.84 41.59 11.54 0.05 53.08 241.76 252.84
Plant & 2,285.99 30.80 11.07 2,305.72 350.24 110.05 6.06 454.23 1,851.49 1,935.75
Equipment (b)
Right-of-use - 38.94 - 38.94 - 12.03 - 12.03 26.91 -
Asset(Plant &
Equipment)
Furniture and 3.90 0.04 - 3.94 1.03 0.36 - 1.39 2.55 2.87
Fixture
Office Equipment 8.32 1.17 0.06 9.43 3.40 1.74 0.05 5.09 4.34 4.92
Vehicles & 20.45 7.81 1.48 26.78 3.40 2.85 0.59 5.66 21.12 17.05
Locomotive
Railway Siding 2.57 - - 2.57 0.78 0.15 - 0.93 1.64 1.79
Total 2,973.75 156.11 95.43 3,034.43 406.32 140.17 12.63 533.86 2,500.57 2,567.43
Previous year 2,893.78 94.37 14.40 2,973.75 291.08 125.07 9.83 406.32 2,567.43
^ Reclassified on account of adoption of Ind AS-116.
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Note 2. PROPERTY, PLANT AND EQUIPMENT (PPE) (contd.)
Notes:
a) Includes cost of 4.67 acres land given on lease to Employees State Insurance Corporation for construction of Hospital for Employees
and cost of 34.72 acres land of H20.24 crores (Previous year H20.24 crores) for which title is yet to be transferred in name of the
Company.
b) During the year H9.03 crores has been added in Plant & Equipment due to Foreign Exchange Fluctuation (Net) (Previous year H5.83 crores
was deducted) .
Note 3. OTHER INTANGIBLE ASSETS
Gross Carrying Value Amortisation Net Carrying Value
Description April Additions/ Sales/ March April For the On Sales/ March March March
1, 2019 Adjustments Adjustments 31, 2020 1, 2019 year Adjustments 31, 2020 31, 2020 31, 2019
Computer Software 4.19 24.16 2.58 25.77 3.92 3.39 2.57 4.74 21.03 0.27
TOTAL 4.19 24.16 2.58 25.77 3.92 3.39 2.57 4.74 21.03 0.27
Previous year 3.90 0.29 - 4.19 3.69 0.23 - 3.92 0.27
Note 4. NON- CURRENT INVESTMENTS

Face Value March 31, 2020 March 31, 2019
Particulars
I/Share No. of Share Value No. of Share Value
Quoted, Equity shares fully paid up
Investment Carried at Fair Value through OCI
JK Lakshmi Cement Limited 5/- 1,91,000 3.74 1,91,000 6.64
Unquoted, Equity shares fully paid up
Investments Carried at Cost
Investment in Equity instruments of Subsidiaries
JK Enviro-Tech Limited 10/- 2,04,32,052 32.68 1,08,16,652 12.68
Songadh Infrastructure & Housing Limited 10/- 49,50,600 4.95 49,50,600 4.95
Jaykaypur Infrastructure & Housing Limited 10/- 49,50,600 4.95 49,50,600 4.95
JK Paper International (Singapore) Pte. Limited. USD 1 30,45,000 22.06 30,45,000 22.06
The Sirpur Paper Mills Limited- (w.e.f 1st August, 2018)-Step- 10/- 90,00,000 9.00 90,00,000 9.00
down Subsidiary
Unquoted, Preference shares fully paid up
JK Enviro-Tech Limited 100/- 2,11,00,000 197.00 2,11,00,000 184.87
The Sirpur Paper Mills Limited (Step-down Subsidiary)- (w.e.f 1st 100000/- 1,000 4.80
August, 2018)
Equity Component of Preference Share- JK Enviro-Tech Limited - 29.94 - 29.94
Equity Component of Preference Share-The Sirpur Paper - 5.30 - -
Limited (Step-down Subsidiary)
Deemed Equity Contribution # - 3.89 - 0.84
Investment in Others
JK Paper Mills Employees’ Co-operative Stores Limited 10/- 250 0.00 250 0.00
(CY H2,500/- , PY H2,500/-)
318.31 275.93
Aggregate book value of unquoted investments 314.57 269.29
Aggregate market value of quoted investments 3.74 6.64
# Fair Value of Letter of Comfort given for The Sirpur Paper Mills Limited.

Note 5. NON CURRENT FINANCIAL ASSETS - LOANS

Particulars March 31, 2020 March 31, 2019
Unsecured considered good :-
Loans and advances to related parties (Subsidiaries)
Jaykaypur Infrastructure & Housing Limited 27.50 18.33
Songadh Infrastructure & Housing Limited 8.00 5.33
The Sirpur Paper Mills Limited-(Step-down Subsidiary) 128.00 -
Other Loans & Advances (at amortised cost)
JK Paper Employees` Welfare Trust - 17.47
TOTAL 163.50 41.13
Note 6. NON CURRENT FINANCIAL ASSETS - OTHERS

Deposits with Government Authorities 1.27 1.58
Derivative Financial Instruments (at fair value through P&L) 4.41 4.94
Others Deposit 19.63 10.04
Interest Accrued but not due 3.79
TOTAL 29.10 16.56
Note 7. OTHER NON CURRENT ASSETS

Capital Advances 157.60 7.24
Deposits with Government Authorities and Others 15.25 8.10
TOTAL 172.85 15.34
Note 8. INVENTORIES (AS TAKEN AND CERTIFIED BY THE MANAGEMENT)

Raw Materials # 170.52 171.52
Work-in-Progress @ 52.24 20.11
Finished Goods 147.96 39.13
Stock in Trade # 7.62 24.98
Stores & Spares # 68.94 66.72
Renewable Energy Certificates 0.01 0.01
TOTAL 447.29 322.47
# Includes Raw Materials in transit H10.08 crores (As at 31-March-19 H2.07 crores), Stores & Spares in transit H1.88 crores (As at 31-March-19
H1.48 crores) and Stock in Trade in transit H1.27 crores, (As at 31-March-2019 Nil).
@ Includes Pulp in process H3.82 crores (As at 31-March-19 H10.77 crores) and Semi Finished Goods H48.42 crores (As at 31-March-19
H9.35 crores).
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Note 9. CURRENT INVESTMENTS

Investments in Liquid Funds- at fair value through Profit & Loss
Investment in Non Convertible Debenture 74.91 499.48
Investment in Mutual Fund 307.73 112.24
FD with Non Schedule Bank - 25.00
TOTAL 382.64 636.72
Aggregate book value of quoted investments 307.73 112.24
Note 10. TRADE RECEIVABLES

Unsecured
Considered Good # 74.70 77.17
Credit Impaired 0.48 0.35
75.18 77.52
Less: Allowance for credit impairment 0.48 0.35
TOTAL 74.70 77.17
# Includes H NIL (Previous year H3.70 crores) of The Sirpur Paper Mills Limited (Step-down Subsidiary).
Note 11. CASH AND CASH EQUIVALENTS
Cash & Cash Equivalents
Current Accounts 23.13 9.02
Cheques/Drafts on hand - 0.09
Cash on Hand 0.21 0.13
TOTAL 23.34 9.24
Note 12. BANK BALANCE OTHER THAN CASH AND CASH EQUIVALENTS
Other Bank Balances
Unclaimed Dividend Accounts 0.72 0.20
Fixed Deposit with Scheduled Banks # 6.16 5.60
TOTAL 6.88 5.80
# Includes H0.20 crores (Previous year H0.51 crores) pledged with Government Authorities.
Note 13. CURRENT FINANCIAL ASSETS - LOANS
Loans to related parties
JK Enviro-Tech Limited-(Subsidiary) 3.00 1.20
Jaykaypur Infrastructure & Housing Limited-(Subsidiary) - 9.17
Songadh Infrastructure & Housing Limited-(Subsidiary) - 2.67
Bengal & Assam Co. Limited-(Associate of ) 90.00 60.00
TOTAL 93.00 73.04
All the above loans and advances have been given in the ordinary course of business for general business purpose.

Note 14. CURRENT FINANCIAL ASSETS - OTHER
Advances to Related Parties- (Subsidiaries)
Jaykaypur Infrastructure & Housing Limited - 0.02
The Sirpur Paper Mills Limited (Step-down Subsidiary) 2.03 3.60
Advances Recoverable 4.73 0.46
Interest Accrued but not due 6.62 29.21
Advances to Employees 0.60 0.70
Derivative Financial Instruments (at fair value through Profit & Loss) 4.35 2.07
TOTAL 18.33 36.06
Note 15. OTHER CURRENT ASSETS

Advances to Suppliers 53.55 40.81
Indirect Tax Recoverable 73.11 50.45
Other Deposits 7.37 9.22
Prepaid Finance Charges 2.53 0.23
Doubtful Advances
Other 0.35 0.60
143.15 106.88
Less : Allowance for Doubtful Advances 0.35 0.60
TOTAL 142.80 106.28
Note 16. SHARE CAPITAL

Authorised:
Equity Shares - 30,00,00,000 of H10/- each 300.00 300.00
(30,00,00,000 Equity Share of H10 each as at 31-March-2019)
Redeemable Preference Shares - 2,00,00,000 of H10/- each 200.00 200.00
(2,00,00,000 Share of H100 each as at 31-March-2019)
TOTAL 500.00 500.00
Issued, Subscribed and Paid-up: of H10/- each
Equity Shares - 17,82,43,585 (17,82,43,585 Equity Share of 178.24 178.24
H10 each fully paid up at 31-March-2019)
TOTAL 178.24 178.24
Notes :
(a) Reconciliation of Equity Share Capital (In numbers)

Shares outstanding at the beginning of the year 17,82,43,585 17,55,00,850
Add : Shares issued during the year - 27,42,735
Shares outstanding at the end of the year 17,82,43,585 17,82,43,585
124 | JK Paper
Note 16. SHARE CAPITAL (contd.)
(b) Equity Shares:
The Equity Shareholders have:-
- The right to receive dividend out of balance of net profits remaining after payment of dividend to the preference shareholders. The
dividend proposed by Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting.
- The Company has only one class of Equity Shares having face value of H10/- each and each shareholder is entitled to one vote
per share.
- In the event of winding up, the equity shareholders will be entitled to receive the remaining balance of assets if any, after
preferential payments and to have a share in surplus assets of the Company, proportionate to their individual shareholding in
the paid up equity capital of the Company.
(c) List of Shareholders holding more than 5% of the Equity Share Capital of the Company (In numbers):

Bengal & Assam Company Limited 7,96,27,228 3,64,18,299
BMF Investments Limited 3,00,89,797
Florence Investech Limited 1,18,33,332
Trustees, JK Paper Employees Welfare Trust 84,23,655 98,28,655
Note 17. NON CURRENT FINANCIAL LIABILITIES - BORROWINGS

SECURED
Term Loan
From Banks 741.30 836.04
From Financial Institutions 119.76 135.70
Non Convertible Debentures (NCDs) 332.01 331.57
UNSECURED
Public Deposits 32.41 28.66
Lease Liabilities 28.10 -
1,253.58 1,331.97
Less : Current Maturities of Long Term Borrowings 237.50 257.20
TOTAL 1,016.08 1,074.77
A. Term Loans of H323.91 crores (FIs – H Nil, Banks H323.91 crores) and NCD of H335 crores are secured by means of first pari passu
mortgage/ charge on the fixed assets of the company . Out of the above Term Loan, H165.39 crores (FIs - H Nil, Banks H165.39
crores) are further secured by second charge on the current assets of the Company. These Term Loans are/shall be repayable as
under :-
1 Term Loans aggregating to H323.91 crores are repayable in total 60 quarterly instalments from June 2020 to March 2024.
2 NCDs of H335.00 crores is repayable in 15 Half yearly installment from September 2021 to July 2028.
B. Term Loans of H416.28 crores (FIs – H120.00 crores, Banks H296.28 crores) is secured by means of first pari passu mortgage/charge on the
fixed assets, both present and future, of Unit JKPM of the company. These Term Loans are/shall be repayable as under :-
1 Term Loans aggregating to H158.00 crores are repayable in total 37 equal quarterly-instalments from June 2020 to September 2027.
2 Term Loans aggregating to H170.62 crores are repayable in total 14 equal half-yearly instalments from May 2020 to August 2023.
3 Term Loans aggregating to H87.66 crores are repayable in total 29 quarterly instalments from May 2020 to March 2024.
C. Term Loans of H125.63 crores (FIs – H Nil, Banks H125.63 crores) is secured by means of first pari passu mortgage/charge on the
fixed assets, both present and future, of Unit CPM of the company. These Term Loans are/shall be repayable as under :-

Note 17. NON CURRENT FINANCIAL LIABILITIES - BORROWINGS (contd.)
1 Term Loans aggregating to H95.00 crores are repayable in total 36 equal quarterly-instalments from December 2022 to September
2031.
2 Term Loans aggregating to H30.63 crores are repayable in total 36 quarterly instalments from December 2022 to September 2031.
D. Term Loans aggregating to H1.19 crores (FIs – H Nil, Banks H1.19 crores) are secured by specific charge on the Vehicle hypothecated
against these loans. These Term Loans are repayable in total 33 monthly instalments from April 2020 to December 2022.
E. Secured Term loans from Financial Institutions and Banks have been reduced by H5.95 crores (FIs – H0.24 crores, Banks H5.71 crores) and
NCDs have been reduced by H2.99 crores due to effective rate of interest.
F. Certain charges are in the process of satisfaction. Secured Term loans from Financial Institutions and Banks include H219.92 crores foreign
currency loans.
G. Lease Liabilities aggregating to H28.10 crores is repayable in total 160 equal monthly installments from April 2020 to June 2026.
H. Public deposits are due for repayment in 2020-21, 2021-22 & 2022-23.
Note 18. NON CURRENT FINANCIAL LIABILITIES - OTHER

Trade Deposits 67.69 56.11
Interest Accrued but not due on Loans 1.55 0.73
Financial Obligation Towards Letter of Comfort 3.89 0.84
TOTAL 74.23 59.60
Note 19. NON CURRENT PROVISIONS

Provision for Employee Benefits (refer note 49) 9.10 7.49
TOTAL 9.10 7.49
Note 20. DEFERRED TAX LIABILITIES

Tax on difference between book value of depreciable assets as per books of account and 491.74 477.42
written down value as per Income Tax
Tax on Others 16.31 23.02
a. Total Deferred Tax Liability 508.05 500.44
Opening MAT Credit Entitlements (265.51) (166.27)
Current MAT Credit Entitlement 1.93 (99.24)
Reversal of MAT Credit of Earlier Years 91.40 -
b. Total MAT Credit Entitlement (172.18) (265.51)
c. Net Deferred Tax Liability (a+b) 335.87 234.93
Based on the past performance and current plans, the Company expects to continue to generate taxable income which will enable it to
utilise MAT credit entitlement.
126 | JK Paper
Note 21. CURRENT FINANCIAL LIABILITIES - BORROWINGS
SECURED
Working Capital Borrowings from Bank 75.40 14.29
UNSECURED
Commercial Paper 26.71 -
Working Capital Borrowings from Bank 8.90 -
TOTAL 116.67 18.04
Working Capital Borrowings are secured by hypothecation of Raw Materials, Finished Goods, Stock-in-Process, Stores & Spares and Book
Debts. The same are further secured by a second charge on the movable and immovable assets of the Company.
Note 22. CURRENT FINANCIAL LIABILITIES - TRADE PAYABLE

Trade Payable
Total outstanding dues of Micro and Small Enterprises (refer note 48) 4.77 0.84
Total Outstanding dues of Creditors other than Micro and Small Enterprises 332.47 265.64
TOTAL 337.24 266.48
Note 23. CURRENT FINANCIAL LIABILITIES - OTHER

Current Maturities of Non Current Borrowings 237.50 257.20
Unclaimed Dividends # 0.72 0.20
Unclaimed Matured Deposits # 0.67 0.88
Unclaimed Interest on Unclaimed Matured Deposits # 0.13 0.16
Advances from related parties (Subsidiary)
Songadh Infrastructure & Housing Limited - 0.41
Capital Creditors 40.46 4.40
Other Payables 50.79 70.72
TOTAL 338.65 345.06
# Investor Education and Protection Fund will be credited as & when due.
Note 24. OTHER CURRENT LIABILITIES
Advance from Customers 14.89 8.17
Statutory Dues 19.83 44.33
TOTAL 137.13 174.74
Note 25. Short Term Provisions

Provision for Employee Benefits 6.39 5.55
TOTAL 6.39 5.55

Note 26. CURRENT TAX LIABILITIES
Provision for Income Tax (Net of Advance tax) 3.96 7.77
TOTAL 3.96 7.77
Note 27. OTHER OPERATING REVENUES

Insurance Charges Recovered 0.12 -
Excess Provision no longer required written back 15.10 0.61
Miscellaneous Income 24.95 22.05
TOTAL 40.17 22.66
Note 28. OTHER INCOME

Interest Income 60.55 40.48
Dividend Income 0.06 0.01
Profit on sale of Fixed Assets 0.06 -
Profit on Sale/Fair value of Current investment 20.49 15.28
TOTAL 81.16 55.77
Note 29. COST OF MATERIALS CONSUMED

Hardwood & Bamboo 567.58 545.45
Pulp 245.34 325.38
Chemicals 309.40 316.11
Packing Material 94.55 91.17
TOTAL 1,216.87 1,278.11
Note 30. CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS

Inventories at the beginning of the year
Stock In Trade 24.98 53.11
Work-in-Progress 20.11 11.28
Renewable Energy Certificates 0.01 -
84.23 131.42
Inventories at the end of the year
207.83 84.23
(Increase)/ Decrease in Stock TOTAL (123.60) 47.19
128 | JK Paper
Note 31. EMPLOYEE BENEFIT EXPENSES
Salaries, Wages, Allowances, etc. 258.89 242.89
Contribution to Provident and Other Funds 13.53 12.22
Staff Welfare Expenses 4.78 7.15
TOTAL 277.20 262.26
Note 32. FINANCE COST

Interest on:
Term Loan and Fixed Deposits 98.75 100.05
Others 12.09 10.75
Other Borrowing Costs:
Financial Charges 5.07 7.09
Premium on Forward Exchange Contracts 1.23 0.60
Lease rent on Machinery 3.04 -
Net (Gain) or Loss on Foreign Currency Transaction 2.63 3.91
TOTAL 122.81 122.40
Note 33. DEPRECIATION AND AMORTISATION EXPENSES

Depreciation on Property, Plant & Equipment 140.17 125.07
Amortisation of Other Intangible Assets 3.39 0.23
TOTAL 143.56 125.30
Note 34. OTHER EXPENSES

Consumption of Stores and Spares 56.81 59.40
Power, Fuel and Water 261.32 258.67
Repairs to Building 4.63 12.41
Repairs to Machinery 29.97 31.70
Rent (Net) 27.95 16.43
Insurance 3.16 3.95
Rates and Taxes 0.98 1.03
Commission on Sales 0.33 2.93
Directors' Fees 0.43 0.38
Directors' Commission 3.66 3.40
Loss on Foreign Exchange Fluctuation 3.48 1.77
Loss on Sale of Assets - 0.37
Asset Written off 4.08 0.74
Bad Debts 0.56 (0.09)
Less: Withdrawal from Provision for Doubtful Advance 0.25 0.31 (0.11) 0.02
Provision for Doubtful Debts 0.13 0.15
Other Miscellaneous Expenses 102.89 103.58
TOTAL 500.13 496.93

Note 35. CONTINGENT LIABILITIES & COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
Year ended Year ended
Particulars
March 31, 2020 March 31, 2019
Contingent Liabilities:
a) Claim against the company not acknowledged as debts #.
Excise duty/ Custom duty/Service tax liability in respect of matter in appeals 18.86 19.32
Sales tax/ VAT/Octroi liability in respect of matter in appeals 2.21 0.97
Income tax liability that may arise in respect of matters in appeal referred by the 0.10 0.63
department
Other matters 7.44 7.26
b) Commitments:
Contracts remaining to be executed on capital account (Net of Advances) 908.13 42.16
Export commitments against import of capital goods under EPCG scheme - 49.95
# In respect of certain disallowances and additions made by the income tax authorities, appeals are pending before the appellate authorities
and adjustments , if any, will be made after the same are finally determined.
Note 36.
1. In respect of levy of Octroi pertaining to Unit - CPM by Songadh Group Gram Panchayat, the Company has paid H1.25 crores till 31st
March 1997 under protest and also created a liability of the similar amount. As the matter is still pending in the court of law, the
necessary adjustment, if any, would be made after its disposal.
2. The Audited GST return for the year ended 31-March -2019 is pending for the filing as competent authority has extended the date
of filing till 30-Sept-2020. The company is in process of reconciling the data of GSTR 2A with GSTR 3B. In view of the management on final
reconciliation the impact will not be material.
Note 37. UNCERTAINTIES RELATING TO COVID-19 (COVID 19):
The pandemic caused to COVID-19 disease impacted adversely the economy . It impacted every component of the business including
sales , liquidity , supply chain management and production. The Company has considered impact of present and future economic
conditions which may result from COVID-19 Pandemic while assessing carrying amount of Receivables, Inventory, Property Plant &
Equipment and Provisions, based on information available till the date of approval of these financial results.
In consequence to the above , the Company has carried out its year end exercise of physical verification of Inventories at some locations
subsequently on resumption of business operations.
Note 38. EXPENDITURE INCURRED ON CORPORATE SOCIAL RESPONSIBILITIES
Details of expenditure on Corporate Social Responsibility Activities as per Section 135 of Companies Act , 2013 read with Schedule III are as
below
1. Gross amount required to be spent by the Company during the year 8.31 4.69
2. Amount spent during the year
Promotion of Education 0.28 0.60
Health Care 0.52 0.49
Others 6.83 2.26
TOTAL 7.63 3.35
130 | JK Paper
Note 39.
i Disclosure of loan and advances as per regulation 34(3) and 53(f ) read with Schedule V of SEBI (LODR) regulation of listing
regulation with Stock Exchanges:
Balance as at Maximum outstanding
during
Name of the Company Year ended Year ended
March March 2019-20 2018-19
31, 2020 31, 2019
a) Loans and advances in the nature of loans given to subsidiaries
and Associates of
JK Enviro-Tech Limited 3.00 1.20 3.00 1.35
Jaykaypur Infrastructure & Housing Limited 27.50 27.50 27.50 27.50
Songadh Infrastructure & Housing Limited 8.00 8.00 8.00 8.00
The Sirpur Paper Mills Ltd(Step-down Subsidiary) 128.00 - 128.00 -
Bengal & Assam Company Limited (Associates of ) 90.00 60.00 90.00 60.00
b) Loans and advances in the nature of loans where repayment Nil Nil Nil Nil
schedule is not specified
c) Loans and advances in the nature of loans where interest is not Nil Nil Nil Nil
charged
d) Loans given to JK Paper Employees` Welfare Trust - 17.47 17.47 17.93
ii Details of loans given, investments made and guarantee given covered U/s 186(4) of the Companies Act, 2013
The company has given loan to Subsidiaries and other parties mentioned above in the ordinary course of business for general
business purpose. The Company has also given a Letter of Comfort to the Bank for a loan taken by its step-down subsidiary “ The
Sirpur Paper Mills Limited” for H361.14 crores (Previous Year H166.14 crores).
Note 40.
a) Sales include export incentives of H8.46 crores (Previous year H10.13 crores).
b) Interest Income includes H1.82 crores (Previous year H2.45 crores) on Deposits with Banks and H58.73 crores (Previous year H38.03 crores)
on others.
c) Scrap sale of H7.60 crores (Previous year H9.23 crores) has been netted off from Consumption of Stores and Spares.
Note 41.
A. LEASES
The Company has adopted Ind AS 116 “Leases’’ effective 1st April ,2019 as notified by the Ministry of Corporate Affairs ( MCA) and applied
the Standard to its leases using the simplified approach. This has resulted in recognising right –of –use assets and corresponding
lease liabilities.
1. Refer Note 2 for changes in the carrying value of right of use assets for the year ended March 31, 2020:
2. The following is the break-up of current and non-current lease liabilities as at March 31, 2020
Particulars Year ended March 31, 2020

Current lease liabilities 11.88
Non-current lease liabilities 16.22
TOTAL 28.10

Note 41. (contd.)
3. The following is the movement in lease liabilities during the year ended March 31, 2020:
Balance at the beginning 38.94
Finance cost accrued during the period 3.04
Payment of lease liabilities (13.88)
Balance at the end 28.10
4. The table below provides details regarding the contractual maturities of lease liabilities as at March 31, 2020 on an
undiscounted basis:

Not later than one year 13.88
Later than one year and not later than five years 16.58
Later than five years 2.48
B. Ind AS 115 Disclosure

Particulars
March 31, 2020 March 31, 2019
i) Contract Balances
Trade Receivables 74.70 77.17
Contract Liabilities 14.89 8.17
ii) Reconciling the amount of revenue recognised in the Statement of Profit and
Loss with the Contracted Prices
Revenue as per contracted prices 3254.20 3,469.19
Adjustments:
Revenue from contract with customers 3,014.13 3,233.64
iii) Revenue recognised that was included in the contract liability balance at the
beginning of the period
Sale of goods 8.17 7.17
Note 42. EXPENDITURE ON RESEARCH AND DEVELOPMENT (R&D) ACTIVITIES

Particulars
March 31, 2020 March 31, 2019
a) Revenue Expenditure *
Employee Cost 2.74 2.32
Cost of Materials 0.40 0.98
Other Expenses 0.91 0.62
Sub Total 4.05 3.92
b) Capital Expenditure 0.24 0.29
TOTAL (a+b) 4.29 4.21
* Included in respective revenue accounts.
132 | JK Paper
Note 43. OTHER DISCLOSURE REQUIRED BY STATUTE
Particulars
March 31, 2020 March 31, 2019
Auditors Remuneration ( including taxes)
1. Statutory Auditors
i. Audit Fee 0.21 0.21
ii. Tax Audit Fee 0.03 0.03
iii.Certification/other Services 0.05 0.03
iv. Out of Pocket Expenses 0.01 -
TOTAL 0.30 0.27
2. Cost Auditors
i. Audit Fee 0.01 0.01
ii. Out of Pocket Expenses (CY H13,446/- PY H20,532/-) 0.00 0.00
TOTAL 0.01 0.01
Note 44. EXPENSES INCLUDED UNDER OTHER HEADS OF ACCOUNT

Particulars
March 31, 2020 March 31, 2019
Salaries, Wages and Allowances etc. 8.52 5.98
Employees’ Welfare and Other benefits 0.24 0.35
Rent 0.10 0.10
Insurance 0.06 0.01
Rates and Taxes (PY H1920/- ) 0.01 0.00
Miscellaneous Expenses 0.73 1.00
TOTAL 10.43 7.88
Note 45. CAPITAL WORK IN PROGRESS INCLUDES FOLLOWING EXPENSES PENDING ALLOCATION / CAPITALIZATION

Particulars
March 31, 2020 March 31, 2019
Consultancy 9.26 1.96
Salary & Wages 9.21 3.92
Travelling and Other Misc. Expenses 4.41 2.02
Insurance 0.86 -
Interest on Loan 2.48 -
TOTAL 26.22 7.90
Note 46.
During the previous year, the Company has allotted 27,42,735 Equity Shares of H10/- each upon conversion of FCCBs Series-5 of Euro
2.4 million.

Note 47. EARNING PER SHARE
Particulars
March 31, 2020 March 31, 2019
a) Profit (Operating) after tax for Basic Earnings Per share 492.71 437.20
Add: Interest on Foreign Currency Convertible Bonds ( FCCBs) (net of tax) - (0.33)
Profit for Diluted Earnings Per Share 492.71 436.87
b) Weighted Average Number of Ordinary Shares
Basic 17,82,43,585 17,79,65,554
Effect of Conversion Option - 2,78,031
Diluted 17,82,43,585 17,82,43,585
c) Nominal Value of Ordinary Shares H10/- H10/-
d) Earning Per Ordinary Share (I)
Basic 27.64 24.57
Diluted 27.64 24.51
Note 48. THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT (MSMED) ACT, 2006
Based on the information available, there are certain vendors who have confirmed that they are covered under the Micro, Small and
Medium Enterprises Development Act, 2006. Disclosures relating to dues of Micro and Small enterprises under Section 22 of ‘The Micro,
Small and Medium Enterprises Development Act, 2006, are given below:

Particulars
March 31, 2020 March 31, 2019
a) Principal amount and Interest due thereon remaining unpaid to any supplier as on NIL NIL
b) Interest paid by the Company in terms of Section 16 of the MSMED Act along with the NIL NIL
amounts of the payment made to the supplier beyond the appointed day during the
accounting year.
c) the amount of interest due and payable for the year of delay in making payment NIL NIL
(which have been paid but beyond the appointed day during the year) but without
adding the interest specified under this Act
d) the amount of interest accrued and remaining unpaid NIL NIL
e) The amount of further interest remaining due and payable even in the succeeding NIL NIL
years, until such date when the interest dues above are actually paid to the small
enterprise
for the purpose of disallowance as a deductible expenditure under section 23 of this
Act.
Note 49. EMPLOYEE BENEFITS

The Company participates in defined contribution and benefit schemes, the assets of which are held (where funded) in separately
administered funds. For defined contribution schemes the amount charged to the statements of profit or loss is the total of
contributions payable in the year.
a) Defined Contribution Plans:-
Amount recognized as an expense and included in Note 31 Item “Contribution to Provident and Other Funds H0.65 crores (Previous year
H0.64 crores) for Superannuation Fund.
b) Other Long-Term Benefits
Amount recognized as an expense and included in Note 31 Item “Salaries, Wages, Allowances etc. H3.78 crores (Previous year H3.80
crores) for long term compensated Absences.
c) Defined Benefits Plans
(i) Amount recognized as an expense and included in Note 31 & Note 44 “Contribution to Provident and Other Funds” H10.32
crores (Previous year H9.39 crores) for Provident and other fund.
(ii) Gratuity Expense H2.56 crores (Previous year H 2.42 crores) has been recognized in “Contribution to Provident and Other Funds”
134 | JK Paper
Notes to the Standalone Financial Statement
under Note 31. as per Actuarial Valuation.
for the year ended March 31,

Note 49. EMPLOYEE BENEFITS (contd.)
March 31, 2020 March 31, 2019
Particulars
Gratuity Gratuity
Funded Funded
I Change in present value of obligation during the year
Present value of obligation at the beginning of the year 39.79 37.72
Included in statement of profit and loss:
- Current Service Cost 2.24 2.07
- Interest Cost 3.10 2.93
- Past Service Cost - -
- Actuarial Gain/(Loss) - -
Included in OCI:
Actuarial losses/(gains) arising from:
- Experience adjustments (2.16) 2.05
- Financial assumption 2.67 (0.02)
Others
Benefits Paid (0.32) (4.96)
Present Value of obligation as at year-end 45.32 39.79
II Change in Fair Value of Plan Assets during the year
Plan assets at the beginning of the year 35.64 33.14
Included in statement of profit and loss:
Expected return on plan assets 2.78 2.58
Included in OCI:
Actuarial Gain/(Loss) on plan assets (2.27) 0.30
Others:
Employer's contribution 4.59 4.58
Benefits paid (0.32) (4.96)
Plan assets at the end of the year 40.42 35.64
The plan assets are managed by the Gratuity Trust formed by the Company.
III Reconciliation of Present value of Defined Benefit Obligation and Fair Value
of Plan Assets
1 Present Value of obligation as at year-end (45.32) (39.79)
2 Fair value of plan assets at year -end 40.42 35.64
3 Funded status {Surplus/(Deficit)} (4.89) (4.14)
Net Asset/(Liability) (4.89) (4.14)
IV Expenses recognised in the Statement of Profit and Loss
1 Current Service Cost 2.24 2.07
2 Interest Cost 3.10 2.93
3 Past service Cost - -
4 Expected return on plan assets (2.78) (2.58)
Total Expense 2.56 2.42
V Expenses recognised in the Statement of Other Comprehensive Income
1 Net Actuarial (Gain)/Loss 0.51 2.03
2 Expected return on plan assets excluding interest income 2.27 (0.30)
TOTAL EXPENSE 2.78 1.73
136 | JK Paper
Note 49. EMPLOYEE BENEFITS (contd.)

March 31, 2020 March 31, 2019
Particulars
Gratuity Gratuity
Funded Funded
VI Constitution of Plan Assets
1 Equity Instruments - -
2 Debt Instruments - -
3 Property - -
4 Insurance 40.42 35.64
VII Bifurcation of PBO at the end of the year
1 Current Liability 4.89 4.14
2 Non-Current Liability - -
VIII Actuarial Assumptions
1 Discount Rate 6.86% 7.79%
2 Expected rate of return on plan assets 6.86% 7.79%
3 Mortality Table IALM (2006-08) IALM (2006-08)
4 Salary Escalation 5.00% 5.00%
5 Turnover Rate Age up to 30-3%, up to Age up to 30-3%, up to
44-2%, above 44-1% 44-2%, above 44-1%
IX The expected contribution for Defined Benefit Plan for the next financial year will be H6.46
crores. X Experience Adjustment:
Gratuity 2019-20 2018-19 2017-18 2016-17 2015-16

Present Value of obligation 45.32 39.79 37.72 36.62 31.04
Fair value of Plan assets 40.42 35.64 33.14 30.02 27.77
Net Asset/(Liability) (4.89) (4.14) (4.58) (6.60) (3.27)
Actuarial (Gain)/Loss on plan obligation (2.16) 2.05 2.48 4.30 3.62
Actuarial Gain/(Loss) on plan assets (2.27) 0.30 (0.55) 1.34 (0.21)
XI Sensitivity Analysis

Gratuity March 31, 2020 March 31, 2019
Increase Decrease Increase Decrease
Discount rate (1% movement) (2.87) 3.30 (2.32) 2.64
Future salary growth ( 1% movement) 3.31 (2.90) 2.65 (2.36)
Employee turnover ( 1% movement) 0.44 (0.49) 0.54 (0.60)
XII Maturity Profile of projected benefit obligation: from the fund

March 31, 2020 March 31, 2019
Gratuity Gratuity
Funded Funded
1st Following Year 4.61 5.18
2nd Following Year 2.62 2.61
3rd Following Year 11.55 3.50
4th Following Year 3.14 10.33
5th Following Year 3.34 2.87
Sum of Years 6 To 10 14.27 12.61

138 | JK Paper
Note 50. RELATED PARTY DISCLOSURES
% of Shareholding/ Voting Power

Particulars
2019-20 2018-19
a) List of Related Parties
i. Subsidiaries (Wholly Owned)
Songadh Infrastructure & Housing Limited (SIHL) 100% 100%
Jaykaypur Infrastructure & Housing Limited (JIHL) 100% 100%
JK Paper International (Singapore) Pte Limited JKPI (S) PL 100% 100%
ii. Subsidiary
JK Enviro-Tech Limited (JKETL) 96.08% 92.85%
iii. Step-dpwn Subsidiary
The Sirpur Paper Mills Limited (w.e.f 1st August 2018) 96.27% 71.26%
iv. Joint Venture
Habras MZZ Plantation Myanmar Company Limited 50% 50%
v. Enterprise which holds more than 20% of Equity Share
Bengal & Assam Company Limited (BACL)
vi. Trust under common control
JK Paper Limited (JK Paper Mills) Compulsory Employees Provident Fund
JK Paper Limited Employees Gratuity Fund
JK Paper Limited Officers Superannuation Scheme
vii. Key Management Personnel (KMP)

Executive DirectorsNon-Executive Directors
Shri Harsh Pati Singhania, Vice Chairman & Managing Director Shri Bharat Hari Singhania, Chairman
Shri Amar Singh Mehta, President and Director (w.e.f 1st Oct 2018) Shri Arun Bharat Ram
Shri Om Prakash Goyal, Whole-time Director (till 30th Sep 2018) Shri Dhirendra Kumar
Executives Shri M.H.Dalmia
Shri V. Kumaraswamy, Chief Finance Officer Shri R.V.Kanoria
Shri S.C. Gupta, Vice President & Company Secretary Shri Sandip Somany
Relative of KMP Shri Shailendra Swarup
Shri Shrivats Singhania, Vice President (Marketing Development) Shri Udayan Bose
Smt. Vinita Singhania
Shri Wim Wienk (till 12th November 2018)
Shri Sushil Kumar Roongta (w.e.f 12 Feb 2019)
Smt. Deepa Gopalan Wadhwa (w.e.f 27 Jun 2019)
b) The following transactions were carried out with related parties in the ordinary course of business and on arm’s length basis :
Subsidiaries (Wholly Owned) Subsidiary
Sl. Nature of
JIHL SIHL JKPI (S) PL JKETL
No Transactions
2019-20 2018-19 2019-20 2018-19 2019-20 2018-19 2019-20 2018-19
(i) Reimbursement of - - 0.00* 0.01 - - - -
Expenses – Received
(ii) Rent Paid 10.55 4.09 3.49 2.02 - - - -
(iii) Interest Received 2.48 2.48 0.72 0.72 - - 0.11 0.04
(iv) Loans Given - - - - - - 3.00 2.25
(v) Loan Instalment - - - - - - 1.20 1.05
Received

Note 50. RELATED PARTY DISCLOSURES (contd.)

Subsidiaries (Wholly Owned) Subsidiary
Sl. Nature of
JIHL SIHL JKPI (S) PL JKETL
No Transactions
2019-20 2018-19 2019-20 2018-19 2019-20 2018-19 2019-20 2018-19
(vi) Investment in - - - - - - - 211.00
Preference share
(vii) Investment in Equity - - - - - - 20.00 11.00
share
(viii) Purchase of share of - - - - - 5.63 - -
JK Paper International
(Singapore) Pte.
Limited
(ix) Purchase of Goods - - - - - - 5.39 -
(with GST)
(x) Sale of Goods - - - - - - 1.35 -
(xi) Advances given - - - - - - 2.98 -
(xii) Security Deposit 3.19 - 1.45 - - - - -
Given
(xiii) Outstanding at 30.69 33.10 9.45 7.59 - - 218.32 212.20
end of the period -
Receivable
* H45,890/-
Step-down Subsidiary
Sl.
Nature of Transactions The Sirpur Paper Mills Limited
No 2019-20 2018-19
(i) Reimbursement of Expenses – Received 0.57 2.00
(ii) Interest Received 4.21 0.69
(iii) Sale of Material including Pulp 2.45 3.88
(iv) Sale of Capital Equipment’s - 2.44
(v) Loans Given 128.00 55.00
(vi) Loan installment received - 55.00
(vii) Investment in Equity share - 9.00
(viii) Investment in Preference share 10.00 -
(ix) Purchase of Goods 118.63 -
(x) Lease of Godown and Maintenance Charges 0.23 -
(xi) Reimbursement of Expenses – Paid 0.22 -
(xii) Outstanding at end of the period - Receivable 144.00 7.30
140 | JK Paper

Enterprise which holds
Sl. more than 20% of Equity
Nature of Transactions Share
No
BACL
2019-20 2018-19
(i) Interest Paid - 0.01
(ii) Rent Paid 0.07 0.06
(iii) Loans Given 30.00 85.00
(iv) Loan installment received - 25.00
(v) Interest Received 7.60 2.92
(vi) Loan Repaid - 7.50
(vii) Outstanding at end of the period - Receivable 90.62 60.81
(viii) Outstanding at end of the period - Payable - -
Trust Under Common Control
Sl. Employees Provident Fund Employees Gratuity Fund Officers Superannuation
Nature of Transactions
No Scheme
2019-20 2018-19 2019-20 2018-19 2019-20 2018-19
(i) Contribution 4.49 3.91 6.03 4.14 0.65 0.64
(ii) Outstanding at end of the period- Payable 0.38 0.35 0.60 0.69 0.66 0.64
Key Management Personnel (KMP) :

Sl. No Particulars 2019-20 2018-19
(i) Short-term Employee Benefits # 35.28 35.18
(ii) Commission and other benefits to Non-Executive Directors * 4.09 3.78
# The above said remuneration is excluding provision for Gratuity & Leave Encashment, where the actuarial valuation is done on overall
Company basis.
* Including sitting fees and commission.
Note 51. FINANCIAL INSTRUMENTS

Financial Assets
Note Fair value As at March 31, 2020 As at March 31, 2019
Sl. No Particulars hierarchy Carrying Fair Carrying Fair
Amount Value Amount Value
1 Financial assets designated at fair value through
Profit and Loss
a) Derivatives - not designated as hedging instruments A Level-2 8.76 8.76 7.01 7.01
b) Investments :
(i) Deemed Equity Contribution Towards Letter of F Level-3 3.89 3.89 0.84 0.84
Comfort
(ii) In mutual funds and others B Level-1 382.64 382.64 636.72 636.72
other comprehensive income
Investment In Equity shares C Level-1 3.74 3.74 6.64 6.64
3 Financial assets designated at amortised cost
a) Other Bank Balances * 6.88 6.88 5.80 5.80
b) Cash & Cash Equivalents * 23.34 23.34 9.24 9.24
c) Trade Receivables * 74.70 74.70 77.17 77.17
d) Other Receivables * 256.50 256.50 114.17 114.17
e) Other Financial Assets 38.67 38.67 45.61 45.61
4 Investment in Subsidiary companies and Joint Venture D 310.68 310.68 268.45 268.45
1,109.80 1,109.80 1,171.65 1,171.65

Note 51. FINANCIAL INSTRUMENTS (contd.)

As at March 31, 2020 As at March 31, 2019
Fair value
Sl. No Particulars Note Carrying Fair Carrying Fair
hierarchy Amount Value Amount Value
1 Financial liability designated at fair value through
profit and loss
2 Financial liability designated at amortised cost

a) Borrowings E 1132.75 1,132.75 1092.81 1,092.81
b) Trade payables * 337.24 337.24 266.48 266.48
c) Other financial liability 404.94 404.94 400.34 400.34
d) Financial Obligation Towards Letter of Comfort F Level-3 3.89 3.89 0.84 0.84
1,882.87 1,882.87 1,763.95 1,763.95
The fair value of financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction
between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values
A The fair values of derivatives are on MTM as per Bank.
B Company has opted to fair value its mutual fund investment through statement of profit &
loss. C Company has opted to fair value its quoted investments in equity share through OCI.
D As per Para D-15 of Appendix D of Ind AS 101, the first time adopter may chose to measure its investment in subsidiaries, JVs and
Associates at cost or at fair value. Company has opted to value its investments in subsidiaries, JVs and Associates at cost.
E Company has adopted effective rate of interest for calculating Interest. This has been calculated as the weighted average of effective
interest rates calculated for each loan. In addition processing fees and transaction cost relating to each loan has also been
considered for calculating effective interest rate.
F The Management has obtained independent valuer’s report for Financial Liability against Letter Of Comfort (LOC) issued by the
Company for borrowing facility extended to a step-down subsidiary by the Bank. The fair valuation of LOC is based on the best
evidence of fair value determined by the valuer which valued the Letter of Comfort by applying Black Scholes Put Option
Model using the inputs (including business projections , cash flows, terminal value etc ) provided by the management of the
Company and used applicable discount rate ( as adjusted for risk) in arriving at the expected value of LOC.
* The carrying amounts are considered to be the same as their fair values due to short term nature.
Fair value hierarchy
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
142 | JK Paper
Note 52. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
52.1 Financial Risk Factors
The Company’s operational activities expose to various financial risks i.e. market risk, credit risk and risk of liquidity. The Company
realizes that risks are inherent and integral aspect of any business. The primary focus is to foresee the unpredictability of financial markets
and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange
risk & interest rate risk. The Company calculates and compares the alternative sources of funding by including cost of currency cover also.
Whenever, the currency cover costs are such as to neutralize the advantage in foreign currency, loans are hedged so as to not to
lose advantage. The Company uses derivative financial instruments to reduce foreign exchange risk exposures.
i. Credit Risk
The Company evaluates the customer credentials carefully from trade sources before appointment of any distributor and only financially
sound parties are appointed as distributors. The Company secures adequate deposits from its distributor and hence risk of bad debt
is limited. The credit outstanding is sought to be limited to the sum of advances/deposits and credit limit determined by the
company. The company has stop supply mechanism in place in case outstanding goes beyond agreed limits.
ii. Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to fluctuation in market prices.
These comprise three types of risk i.e. currency rate , interest rate and other price related risks. Financial instruments affected by market
risk include loans and borrowings, deposits, investments, and derivative financial instruments. Foreign currency risk is the risk that
the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Interest rate
risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
Regular interaction with bankers, intermediaries and the market participants help us to mitigate such risk.
a. Foreign Currency Risk and sensitivity
The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to reduce foreign
exchange risk exposures and follows its risk management policies to mitigate the same. After taking cognisance of the natural
hedge, the company takes appropriate hedges to mitigate its risk resulting from fluctuations in foreign currency exchange rate(s).
The following table analyses foreign currency risk from financial instruments as of March 31, 2020:
Particulars USD Euro GBP SEK Total
Financial Assets
Cash and cash equivalents - - - - -
Trade receivables - - 0.01 - 0.01
Other financials assets ( including loans) - - - - -
Financial liabilities
Trade payables (35.88) (0.55) - (0.06) (36.49)
Other financials liabilities - - - - -
Borrowings (89.97) (151.88) - - (241.85)
Interest Accrued but not due (0.08) (0.17) - - (0.25)
Net assets / (liabilities) (125.93) (152.60) 0.01 (0.06) (278.58)
Particulars USD Euro GBP SEK Total
Financial Assets
Cash and cash equivalents - - - - -
Trade receivables 7.98 - 0.15 - 8.13
Other financials assets ( including loans) - - - - -
Trade payables (46.61) (0.86) (0.00)* (0.06) (47.53)
Other financials liabilities - - -
Borrowings (107.92) (185.18) - - (293.10)
Interest Accrued but not due (0.10) (0.21) - - (0.31)
Net assets / (liabilities) (146.65) (186.25) 0.15 (0.06) (332.81)
*H41,402/-

2020
The following significant exchange rates have been applied during the year.
Amount in H
Year-end spot rate
INR
March 31, 2020 March 31, 2019
USD 75.39 69.17
EUR 83.05 77.70
GBP 93.08 90.48
Foreign Currency Sensitivity

Sensitivity analysis is computed based on the changes in the income and expenses in foreign currency upon conversion into functional
currency, due to exchange rate fluctuations between the previous reporting period and the current reporting period.
0.25% Increase and decrease in foreign exchanges rates will have the following impact on profit before tax:
2019-20 2018-19
Particulars
0.25% Increase 0.25% decrease 0.25% Increase 0.25% decrease
USD Sensitivity (CY H127/-) (0.00) 0.00 0.01 (0.01)
Euro Sensitivity (CY H17,136/-, PY H25,925/-) (0.00) 0.00 (0.00) 0.00
GBP Sensitivity (CY H298/-, PY H3,694/-) 0.00 (0.00) 0.00 (0.00)
SEK Sensitivity (CY H1,588/-, PY H1,588/-) (0.00) 0.00 (0.00) 0.00
Increases/ ( decrease ) in profit or loss (0.00) 0.00 0.01 (0.01)
Summary of Exchange difference accounted in Statement of Profit and loss:

Particulars
March 31, 2020 March 31, 2019
Currency fluctuations
Net foreign exchange ( gain)/ losses shown as operating expenses 3.48 1.77
Net foreign exchange ( gain)/ losses shown as Finance Cost 0.17 0.26
Net foreign exchange ( gain)/ losses shown as Other Income - -
Derivatives
Currency forwards ( gain) / losses shown as operating expenses - -
Interest rate swaps ( gain) / losses shown as finance cost 2.46 3.65
TOTAL 6.11 5.68
b. Interest Rate Risk and Sensitivity

The Company’s exposure to the risk of changes in market interest rates relates primarily to long term debt. The Company has
entered into various interest rate swap contracts, in which it agrees to exchange, at specific intervals, the difference between fixed
and variable interest amounts calculated by reference to an agreed upon principal amount. Borrowings at variable rates exposes to
cash flow risk. With all other variables held constant, the following table demonstrates composition of fixed and floating rate
borrowing of the company and impact of floating rate borrowings on company’s profitability.
Interest Rate Risk Exposure
As at March 31, 2020 As at March, 2019
Particulars
(I in crores) % of Total (I in crores) % of Total
Fixed Rate Borrowings 452.18 33.00% 526.94 39.03%
Variable Rate Borrowings 918.07 67.00% 823.07 60.97%
Total Borrowings 1,370.25 100.00% 1,350.01 100.00%
142 | JK Paper
2020
Sensitivity on variable rate borrowings

Impact on Profit & Loss Account Impact on Equity
Particulars As at As at As at As at
31 March 2020 31 March 2019 31 March 2020 31 March 2019
Interest Rate Increase by 0.25% (1.92) (1.69) (1.92) (1.69)
Interest Rate decrease by 0.25% 1.92 1.69 1.92 1.69
c. Commodity price risk and sensitivity

The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in
place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations. The Company manages
fluctuations in raw material price through hedging in the form of advance procurement when the prices are perceived to be low
and also enters into advance buying contracts as strategic sourcing initiative in order to keep raw material and prices under check
cost of material hedged to the extent possible.
CREDIT RISK
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to
the credit risk at the reporting date is primarily from trade receivables amounting to H74.70 crores and H77.17 crores as of March
31, 2020 and March 31, 2019, respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers
primarily located in India. Credit risk has always been managed by the company through credit approvals, establishing credit limits
and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of
business. On account of adoption of Ind AS 109, the company uses expected credit loss model to assess the impairment loss or gain.
The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes
into account as per the Company’s historical experience for customers.
The following table gives details in respect of percentage of revenues generated from top customer and top five customers:
(In %)
Year ended March 31st
Particulars
2020 2019
Revenue from top customer 4.49% 4.10%
Revenue from top five customers 15.11% 14.96%
Credit risk exposure

The allowance for lifetime expected credit loss on customer balances for the year ended March 31, 2020 was H0.48 crores.
Particulars
2020 2019
Balance at the beginning 0.35 0.20
Additional provision created during the year 0.13 0.15
Balance at the end 0.48 0.35
The deposits with banks comprises mostly the liquid investment of the company and are generally not exposed to credit risk.

2020
Ageing Analysis of Trade

Receivables
As at March 31, 2020 As 31st March, 2019
Not Due Up to Six Six to Above 12 Not Due Up to Six Six to Above 12
Particulars
and Not Months Twelve Months and Not Months Twelve Months
Impaired Months Impaired Months
Unsecured 22.62 52.08 - 0.48 53.29 23.88 - 0.35
Provision for Doubtful - - - 0.48 - - - 0.35
Receivables
Net Balance 22.62 52.08 - - 53.29 23.88 - -
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The objective of liquidity
risk management is to maintain sufficient liquidity and to ensure funds are available for use as per the requirement. The company has
an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity
management requirements. The company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial
assets and liabilities. The company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The
company also has adequate credit facilities agreed with the banks to ensure that there is sufficient cash to meet all its normal
operating commitments in a timely and cost effective manner.
The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2020:
Carrying Less than 1 1-5 years More Than 5 Total

Particulars
Amount year Year
Borrowings - Current 116.67 116.67 - - 116.67
Borrowings - Non-Current 1,253.58 237.50 702.60 313.48 1,253.58
Trade payables 337.24 337.24 - - 337.24
Other financial liabilities - Current 101.15 101.15 - - 101.15
Other financial liabilities - Non-Current
Trade Deposits 67.69 - - 67.69 67.69
Interest accrued but not due on loans 1.55 - 1.55 - 1.55
Derivative Financial Instruments 1.10 - 1.10 - 1.10
Financial Obligation Towards Letter of
Comfort 3.89 - - 3.89 3.89

Particulars
Amount year Year
Trade payables 266.48 266.48 - - 266.48
Trade Deposits 56.11 - - 56.11 56.11
Financial Obligation Towards Letter of
Comfort 0.84 - - 0.84 0.84
144 | JK Paper
2020
52.2 Competition and Price risk

The Company faces competition from local and foreign competitors. Nevertheless, it believes that it has competitive advantage in
terms of high quality products and by continuously upgrading its expertise and range of products to meet the needs of its
customers.
52.3 Capital Risk Management
The Company’s policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain
future development. Capital includes issued capital, share premium and all other equity reserves attributable to equity holders. In
order to strengthen the capital base, the company may use appropriate means to enhance or reduce capital, as the case may be
As at As at
Particulars
March 31, 2020 March 31, 2019
Borrowings 1,370.25 1,350.01
Less: cash and cash equivalents including bank balance 30.22 15.04
Less: current investments 382.64 636.72
Net debt 957.39 698.25
Equity 2,368.05 2,041.21
Capital and Net debt 3,325.44 2,739.46
Gearing Ratio 29% 25%
Note 53. DERIVATIVE FINANCIAL INSTRUMENTS

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in
exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial institution. These
derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly
or indirectly observable in the marketplace.
Forward Contract outstanding for the purpose of hedging at the Balance Sheet Date
Sr. No. Foreign Currency
FC in Mn I In crores FC in Mn I In crores
1 US Dollar 21.70 163.62 20.76 143.61
2 Euro 10.76 89.33 13.55 105.29
Nominal amounts of Complete Currency Swaps (CCS) for hedging entered into by the Company and outstanding at end of the year is
H27.38 crores (Previous year H32.94 crores).
Foreign Currency Exposure not hedged as at the Balance Sheet Date
1 US Dollar * 0.001 0.01 0.44 3.04
2 Euro 4.32 35.88 6.18 48.02
3 GBP * (0.001) (0.01) (0.02) (0.15)
4 SEK 0.09 0.06 0.09 0.06
*Net of Receivables USD Nil – H Nil (Previous year USD 1.15 Million – H7.98 crores ) and GBP 0.001 Million – H0.01 crores (Previous year GBP
0.02 Million – H0.15 crores).

Note 53. DERIVATIVE FINANCIAL INSTRUMENTS (contd.)
Interest Rate Swaps
The Company has variable interest foreign currency borrowings. To offset the risk of variation in interest rates, the Company has entered
into, fix pay and variable receipt, interest rate swaps. These swap contracts are in US Dollar & Euro. Outstanding amortised notional
value of loan for swap contracts and MTM taken there on are as follows :
Sr. No. Foreign Currency Loan FC in Mn MTM I In crores Loan FC in Mn MTM I In crores
(Gain)/Loss (Gain)/Loss
1 US Dollar 7.17 (0.40) 9.56 (0.01)
2 Euro 14.99 0.93 19.60 0.68
The company is fully covered on interest rate fluctuation on foreign currency borrowing through interest rate swaps (IRS) and complete
currency swaps (CCS).
Note 54. IMPAIRMENT REVIEW

Assets are tested for impairment whenever there are any internal or external indicators of impairment. Impairment test is performed at the
level of each Cash Generating Unit (‘CGU’) or groups of CGUs within the Company at which the assets are monitored for internal
management purposes, within an operating segment. The impairment assessment is based on higher of value in use and value from sale
calculations. During the year, the testing did not result in any impairment in the carrying amount of other assets. The measurement of
the cash generating units’ value in use is determined based on financial plans that have been used by management for internal
purposes. The planning horizon reflects the assumptions for short to- mid-term market conditions.
Key assumptions used in value-in-use calculations are:-
(i) Operating margins (Earnings before interest and taxes), (ii) Discount Rate, (iii) Growth Rates and (iv) Capital Expenditure
Note 55. INFORMATION RELATED TO CONSOLIDATED FINANCIALS

The Company is listed on stock exchange in India, the Company has prepared consolidated financial as required under IND AS 110,
Sections 129 of Companies Act, 2013 and listing requirements. The consolidated financial statement is available on Company’s web site
for public use.
Note 56. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

After the end of financial year, the Board of Directors of the company has approved the buyback of its Equity Shares at the maximum
buy back price of H130/- per equity share for an aggregate amount not exceeding H100 crores, from the open market through the stock
exchanges mechanism.
Note 57. INCOME TAX

a) Amount recognised in Statement of Profit and Loss
Current Income Tax
Current year * 215.38 144.99
MAT Credit Entitlement
Current year - (102.53)
Reversal of MAT credit entitlement of earlier years 1.93 3.29
TOTAL 217.31 45.75
Deferred Tax 8.57 195.40
Income tax expense reported in the statement of profit and loss 225.88 241.15
* including H0.10 cr related to earlier years.
146 | JK Paper
Note 57. INCOME TAX (contd.)
b) Reconciliation of Effective Tax
Rate
Profit before tax 718.59 678.35
At applicable Statutory Income Tax Rate @ 34.944% 251.10 237.04
Tax Impact on:-
Benefit of 80IA (29.08) (38.63)
Donation 0.09 0.44
In House R&D Expenditure (0.84) (0.84)
CSR Expenditure 2.67 1.17
Others 1.94 41.97
Reported Income Tax Expense 225.88 241.15
Effective Tax Rate 31.43% 35.55%
Note 58. SEGMENT INFORMATION

Information about primary segment
The Company has only one business segment i.e. Paper and Board and one geographical reportable segment i.e. Operations mainly within
India. The performance is reviewed by the Board of Directors (Chief operating decision makers).
Note 59.
Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current year’s classification.
Note 60.
Notes 1 to 59 are annexed to and form an integral part of financial statements.
A. S. Mehta
(N.K. LODHA)
Partner

Cash Flow Statement for the year ended March 31, 2020

2019-20 2018-19
A. CASH FLOW FROM OPERATING ACTIVITIES :
Net Profit before Tax 718.59 678.35
Adjustments for :
Depreciation and amortization 143.56 125.30
Defined Benefit Plans charged to OCI (2.78) (1.72)
Income from Investments (20.49) (15.28)
(Profit)/ Loss on Sale of Assets (Net) (0.06) 0.37
Dividend Income (0.06) (0.01)
Finance Cost 122.81 122.40
Interest Income (60.55) (40.48)
Foreign Exchange Fluctuation 3.48 1.77
Assets Written off 4.08 0.74
Bad Debts 0.31 0.02
Provision for earlier years no longer required (15.10) 0.61
Operating Profit before Working Capital Changes 893.92 872.22
Adjustments for Working Capital Changes:
Trade and Other Receivables (50.19) 16.91
Inventories (124.82) 71.76
Trade and Other Payables 45.36 92.39
Cash generated from Operations 764.27 1,053.28
Taxes paid (127.79) (139.84)
Net Cash from Operating Activities 636.48 913.44
B. CASH FLOW FROM INVESTING ACTIVITIES :
Purchase of Property Plant & Equipment (466.54) (120.56)
Sale of Property Plant & Equipment 1.91 3.46
Sale/(Purchase) of Investments (Net) 229.29 (735.50)
Interest Received 79.35 15.80
Net Loans & Advances (142.33) (60.75)
Net Cash from Investing Activities (298.26) (897.54)
C. CASH FLOW FROM FINANCING ACTIVITIES :
Proceeds of Long-term Borrowings 139.79 401.03
Repayment of Long-term Borrowings (264.76) (284.09)
148 | JK Paper
Cash Flow Statement for the year ended March 31, 2020

2019-20 2018-19
Proceeds/(Repayment) from Short-term Borrowings (Net) 98.63 (57.99)
Repayment of lease obligation (10.84) -
Interest and Financial Charges (125.22) (128.18)
Dividend (including Dividend Tax) (160.64) (53.65)
Net cash from Financing Activities (323.04) (122.88)
D. Increase/(Decrease) in Cash and Cash Equivalents - Cash & Bank
Balance 15.18 (106.98)
E. Cash and Cash Equivalents as at the beginning of the year - Cash &
Bank Balances (Note No. 11 & 12) 15.04 122.02
F. Cash and Cash Equivalents as at the close of the year - Cash & Bank
Balances (Note No. 11 & 12) 30.22 15.04
Notes :
2019-20 2018-19
Long Term Short Term Long Term Short Term
(a) Total Liabilities from Financing Activities
Opening 1,331.97 18.04 1,233.50 76.03
Cash Flow Changes
Inflow/(Repayments) (124.97) 98.63 116.94 (57.99)
Non-Cash Flow Changes
Foreign Exchange 14.10 - (4.33) -
FCCB Conversion - - (15.46) -
Lease Liabilities 28.10 - - -
Other 4.38 - 1.32 -
Closing 1,253.58 116.67 1,331.97 18.04
(b) Previous year’s figures have been re-grouped / re-arranged wherever necessary.
A. S. Mehta
(N.K. LODHA)
Partner

Form AOC - I
(Pursuant to first proviso to sub-section (3) of Section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement Containing salient features of the financial statement of Subsidiaries/ associate companies/ joint ventures
Part - “A” : Subsidiaries

H In crores (10 Million)
The Sirpur Paper Jaykaypur Songadh JK Enviro-Tech JK Paper
Sl. Mills Limited Infrastructure & Infrastructure & Limited International
Particulars
No Housing Limited Housing Limited (Singapore) Pte.
Limited
1 Financial Year ended on March 31, 2020 March 31, 2020 March 31, 2020 March 31, 2020 March 31, 2020
2 Reporting Currency H H H H US$
3 Closing Exchange Rate - - - - 75.39
4 Share Capital 182.00 4.95 4.95 21.27 22.06
5 Reserve & Surplus/ (23.37) (1.80) 1.66 57.49 2.43
(Accumulated Losses)
6 Total Assets 840.38 41.05 17.46 289.56 24.52
7 Total Liabilities 840.38 41.05 17.46 289.56 24.52
8 Investments - - - 173.34 24.50
9 Total Turnover 84.44 9.65 3.14 15.77 -
10 Profit/ (Loss) before tax (21.67) 2.78 0.22 (3.48) (0.05)
11 Provision for Income Tax - 0.99 0.05 0.01 -
12 Profit/ (Loss) after tax (21.67) 1.79 0.17 (3.49) (0.05)
13 Proposed Dividend - - - - -
14 % of Shareholding 96.27% 100% 100% 96.08% 100%
Part - “B” : Associates and Joint Ventures

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures
Habras MZZ Plantation Myanmar

S. No. Name of Joint Venture Company
Company Limited
1 Financial Year/Period ended on March 31, 2020
2 % of Shareholding 50%
3 Investment in Joint Venture 24.50
Extent of Holding % 50%
4 Description of how there is significant influence Based on Shareholding
5 Reason why the Joint Venture is not consolidated Not Applicable
6 Net worth attributable to Share Holding as per latest Un-audited Balance sheet 24.50
7 Loss for the year NIL
i) Considered in consolidation NIL
i) Not Considered in consolidation NIL
For and on behalf of the Board of Directors

Vice Chairman & Managing Director
A. S. Mehta
V. Kumaraswamy Suresh Chander Gupta

150 | JK Paper
Independent Auditor’s Report
To A) We did not audit the financial statements of four subsidiaries,
The Members of whose financial statements/financial information reflect total
Jk Paper Limited assets of H37,258 lacs as at 31 March 2020, total revenue
Report on the Audit of the Consolidated Financial

Statements
Opinion
We have audited the accompanying consolidated financial
statements of JK Paper Limited (“the Company”) and its subsidiaries
(the Company and its subsidiaries together referred to as “the
Group”), which comprise the Consolidated Balance Sheet as at
March 31, 2020, the Consolidated Statement of Profit and Loss
(including Other Comprehensive Income), the Consolidated
Statement of Changes in Equity and the Consolidated Statement
of Cash Flows for the year ended on that date, and a summary of
the significant accounting policies and other explanatory
information (hereinafter referred to as “the consolidated financial
statements”).
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
consolidated financial statements give the information required
by the Companies Act, 2013 (the “Act”) in the manner so required
and give a true and fair view in conformity with Indian
Accounting Standards prescribed under section 133 of the Act
read with the Companies (Indian Accounting Standards) Rules,
2015, as amended (“Ind AS”) and other accounting principles
generally accepted in India, of the consolidated state of affairs of
the Group as at March 31, 2020, the consolidated profit,
consolidated total comprehensive income, consolidated changes
in equity and its consolidated cash flows for the year ended on
that date.
BASIS FOR OPINION
We conducted our audit of the consolidated financial statements
in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Act (SAs). Our responsibilities under
those Standards are further described in the Auditor’s
Responsibilities for the Audit of the Consolidated Financial
Statements section of our report. We are independent of the
Group in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India (ICAI) together with
the independence requirements that are relevant to our audit of
the consolidated financial statements under the provisions of the
Act and the Rules made thereunder, and we have fulfilled our
other ethical responsibilities in accordance with these
requirements and the ICAI’s Code of Ethics. We believe that the
audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the consolidated financial
statements.
OTHER MATTERS

of H2,856 lacs, total net profit / (loss ) after tax of H(158 lacs)
and total comprehensive income of H(158 lacs ) for the
year ended on that date, as considered in the consolidated
financial statements. These financial statements have
been audited by other auditors whose reports have been
furnished to us by the Management and our opinion on
the consolidated financial statements, in so far as it relates
to the amounts and disclosures included in respect of these
subsidiaries and our report in terms of sub-sections (3) of
Section 143 of the Act, insofar as it relates to the aforesaid
subsidiaries based solely on the reports of the other auditors.
Our opinion is not modified in respect of this matter.
B) The Consolidated financial statements include the
Company’s share of net profit / loss of H Nil for the year
ended 31st March 2020 as considered in the consolidated
financial statements, in respect of one jointly controlled
entity, whose financial statements have been audited by
other auditor whose reports have been furnished to us
by the management and our opinion on the financial
statements , to the extent they have been derived from
such financial statements is based solely on the reports of
the other auditor.
Our opinion is not modified in respect of this matter.
Information Other than the Consolidated Financial
Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the
preparation of the other information. The other information
comprises the information included in the Management
Discussion and Analysis, Board’s Report including Annexures
to Board’s Report, Business Responsibility Report, Corporate
Governance and Shareholder’s Information, but does not
include the consolidated financial statements and our auditor’s
report thereon.
Our opinion on the consolidated financial statements does
not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated
financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other
information is materially inconsistent with the consolidated
financial statements or our knowledge obtained during the
course of our audit or otherwise appears to be materially
misstated.
If, based on the work we have performed, we conclude that
there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in
this regard.
152 | JK Paper
Management’s Responsibility for the Consolidated • Identify and assess the risks of material misstatement of the
Financial Statements consolidated financial statements, whether due to fraud or
The Company’s Board of Directors is responsible for the matters error, design and perform audit procedures responsive to
stated in section 134(5) of the Act with respect to preparation those risks, and obtain audit evidence that is sufficient and
of these consolidated financial statements that give a true and appropriate to provide a basis for our opinion. The risk of not
fair view of the consolidated financial position, consolidated detecting a material misstatement resulting from fraud is
financial performance, consolidated total comprehensive income, higher than for one resulting from error, as fraud may
consolidated changes in equity and consolidated cash flows of involve collusion, forgery, intentional omissions,
the Group in accordance with the Ind AS and other accounting misrepresentations, or the override of internal control.
principles generally accepted in India . The respective Board of
• Obtain an understanding of internal financial controls relevant
Directors of the companies included in the Group are responsible
to the audit in order to design audit procedures that are
for maintenance of the adequate accounting records in
appropriate in the circumstances. Under section 143(3)(i) of
accordance with the provisions of the Act for safeguarding the
the Act, we are also responsible for expressing our
assets of the Group and for preventing and detecting frauds and
opinion on whether the Company and its subsidiary
other irregularities; selection and application of appropriate
companies which are companies incorporated in India,
accounting policies; making judgments and estimates that are
has adequate internal financial controls system in place and
reasonable and prudent; and design, implementation and
the operating effectiveness of such controls.
maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and • Evaluate the appropriateness of accounting policies used
completeness of the accounting records, relevant to the and the reasonableness of accounting estimates and related
preparation and presentation of the consolidated financial disclosures made by management.
statements that give a true and fair view and are free from material • Conclude on the appropriateness of management’s use of the
misstatement, whether due to fraud or error. going concern basis of accounting and, based on the audit
In preparing the consolidated financial statements, the evidence obtained, whether a material uncertainty exists
respective Board of Directors of the companies included in the related to events or conditions that may cast significant
Group are responsible for assessing the Group’s ability to doubt on the ability of the Group to continue as a going
continue as a going concern, disclosing, as applicable, matters concern. If we conclude that a material uncertainty exists, we
related to going concern and using the going concern basis of are required to draw attention in our auditor’s report to the
accounting unless management either intends to liquidate the related disclosures in the consolidated financial statements
Group or to cease operations, or has no realistic alternative but or, if such disclosures are inadequate, to modify our opinion.
to do so. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future
The respective Board of Directors of the companies included in
events or conditions may cause the Group to cease to
the Group are also responsible for overseeing the financial
continue as a going concern.
reporting process of the Group.
• Evaluate the overall presentation, structure and content of the
Auditor’s Responsibilities for the Audit of the Consolidated consolidated financial statements, including the disclosures,
Financial Statements and whether the consolidated financial statements represent
Our objectives are to obtain reasonable assurance about whether the underlying transactions and events in a manner that
the consolidated financial statements as a whole are free from achieves fair presentation.
material misstatement, whether due to fraud or error, and to
• Obtain sufficient appropriate audit evidence regarding the
issue an auditor’s report that includes our opinion. Reasonable
financial information of the entities or business activities within
assurance is a high level of assurance, but is not a guarantee
the Group to express an opinion on the consolidated financial
that an audit conducted in accordance with SAs will always
statements. We are responsible for the direction, supervision
detect a material misstatement when it exists. Misstatements can
and performance of the audit of the financial statements of
arise from fraud or error and are considered material if, individually
such entities included in the consolidated financial statements.
or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of Materiality is the magnitude of misstatements in the consolidated
these consolidated financial statements. financial statements that, individually or in aggregate, makes
it probable that the economic decisions of a reasonably
As part of an audit in accordance with SAs, we exercise
knowledgeable user of the financial statements may be influenced.
professional judgment and maintain professional scepticism
We consider quantitative materiality and qualitative factors in
throughout the audit. We also:
(i) planning the scope of our audit work and in evaluating the

results of our work; and (ii) to evaluate the effect of any identified companies incorporated
misstatements in the financial statements.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the consolidated financial statements
of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter
should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit
we report that:
a) We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit of
the aforesaid consolidated financial statements.
b) In our opinion, proper books of account as required
by law relating to preparation of the aforesaid
consolidated financial statements have been kept so far
as it appears from our examination of those books.
c) The Consolidated Balance Sheet, the Consolidated
Statement of Profit and Loss including (including Other
Comprehensive Income), Consolidated Statement of
Changes in Equity and the Consolidated Statement of
Cash Flows dealt with by this Report are in agreement
with the relevant books of account maintained for the
purpose of preparation of the consolidated financial
statements.
d) In our opinion, the aforesaid consolidated financial
statements comply with the Ind AS specified under
Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received
from the directors of the Company as on March 31, 2020
taken on record by the Board of Directors of the
Company and its subsidiaries incorporated in India and the
reports of the statutory auditors of its subsidiary
154 | JK Paper
in India, none of the directors of the Group Date: 12th May 2020
companies incorporated in India is disqualified as on UDIN: 20085155AAAABJ7971
March 31, 2020 from being appointed as a director in
terms of Section 164
(2) of the Act.
f) ) With respect to the adequacy of the internal
financial controls over financial reporting and the
operating effectiveness of such controls, refer to our
separate Report in “Annexure A” which is based on the
auditor’s reports of the Company and its subsidiary
companies incorporated in India. Our report
expresses an unmodified opinion on the adequacy
and operating effectiveness of the internal financial
control over financial reporting of those companies, for
reasons stated therein.
g) With respect to the other matter to be included in
the Auditors’ report under Section 197(16) :
In our opinion and according to the information and
explanation given to us, the remuneration paid during
the current year by the Holding Company and its
subsidiaries which are incorporated in India, are in
accordance with the provisions of Section 197 of the Act.
h) With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, as
amended in our opinion and to the best of our
information and according to the explanations given
to us:
I. The consolidated financial statements disclose
impact of pending litigations on the
consolidated financial position of the Group.
II. Provision has been made in the consolidated
financial statements, as required under the
applicable law or accounting standards, for
material foreseeable losses, if any, on long term
contracts including derivative contracts.
III. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by the
Company and its subsidiary companies
incorporated in India.
For LODHA & CO.

Chartered Accountants
Firm‘s Registration No.301051E
(N. K.
Lodha)
Partner
Place: New Delhi

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
In conjunction with our audit of the consolidated financial

assurance about whether adequate internal financial controls
statements of the Company as of and for the year ended 31st
over financial reporting was established and maintained and if
March 2020, we have audited the internal financial controls over
such controls operated effectively in all material respects.
financial reporting of JK Paper Limited (‘the Holding
Company’) and its subsidiary companies, which are companies Our audit involves performing procedures to obtain audit
incorporated in India, as of that date. evidence about the adequacy of the internal financial controls
system over financial reporting and their operating
Management’s Responsibility for Internal Financial effectiveness. Our audit of internal financial controls over
Controls
financial reporting included obtaining an understanding of
The respective Board of Directors of the Holding Company and its internal financial controls over financial reporting, assessing the
subsidiary companies which are companies incorporated in India, risk that a material weakness exists, and testing and evaluating the
are responsible for establishing and maintaining internal financial design and operating effectiveness of internal control based on the
controls based on the internal control over financial reporting assessed risk. The procedures selected depend on the auditor’s
criteria established by the Holding Company considering the judgment, including the assessment of the risks of material
essential components of internal control stated in the Guidance misstatement of the financial statements, whether due to fraud or
Note on Audit of Internal Financial Controls Over Financial error.
Reporting issued by the Institute of Chartered Accountants of
We believe that the audit evidence we have obtained and the
India (‘ICAI’). These responsibilities include the design,
audit evidence obtained by the other auditors in terms of their
implementation and maintenance of adequate internal financial
reports referred to in the Other Matters paragraph below, is
controls that were operating effectively for ensuring the orderly
sufficient and appropriate to provide a basis for our audit opinion
and efficient conduct of its business, including adherence to the
on the Company’s internal financial controls system over financial
respective company’s policies, the safeguarding of its assets, the
reporting.
prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely Meaning of Internal Financial Controls over Financial
preparation of reliable financial information, as required under the Reporting
Companies Act, 2013 (‘the Act’). A company’s internal financial control over financial reporting is a
Auditors’ Responsibility process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of
Our responsibility is to express an opinion on the internal
consolidated financial statements for external purposes in
financial controls over financial reporting of the Holding
accordance with generally accepted accounting principles. A
company and its subsidiary companies, which are companies
company’s internal financial control over financial reporting
incorporated in India, based on our audit.
includes those policies and procedures that 1)pertain to the
We conducted our audit in accordance with the Guidance Note on maintenance of records that, in reasonable detail, accurately and
Audit of Internal Financial Controls Over Financial Reporting (the fairly reflect the transactions and dispositions of the assets of the
“Guidance Note”) and the Standards on Auditing, issued by ICAI company; 2) provide reasonable assurance that transactions are
and deemed to be prescribed under section 143(10) of the Act, to recorded as necessary to permit preparation of financial
the extent applicable to an audit of internal financial controls, both statements in accordance generally accepted accounting principles,
applicable to an audit of Internal Financial Controls and, both issued and that receipts and expenditures of the company are being
by the Institute of Chartered Accountants of India. Those Standards made only in accordance with authorizations of management and
and the Guidance Note require that we comply with ethical directors of the company; 3) provide reasonable assurance
requirements and plan and perform the audit to obtain regarding prevention or timely detection of unauthorized
reasonable acquisition, use, or disposition of the company’s assets that could
have a material effect on the financial statements.
156 | JK Paper
Inherent Limitations of Internal Financial Controls over
Other Matters
Financial Reporting
i) Our aforesaid reports under Section 143(3)(i) of the Act on the
Because of the inherent limitations of internal financial controls over
adequacy and operating effectiveness of the internal
financial reporting, including the possibility of collusion or improper
financial controls over financial reporting insofar as it relates
management override of controls, material misstatements due to
to four subsidiaries, which are companies incorporated in
error or fraud may occur and not be detected. Also, projections
India, is based on the corresponding reports of the
of any evaluation of the internal financial controls over financial
auditors of such companies.
reporting to future periods are subject to the risk that the
internal financial control over financial reporting may become
inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Group and its Subsidiary companies , which For LODHA & CO.
are incorporated in India, have, maintained, in all material respects, Chartered Accountants
an adequate internal financial controls system over financial Firm‘s Registration No.301051E
reporting and such internal financial controls over financial
(N. K. Lodha)
reporting were operating effectively as at 31st March 2020, based
Partner
on the internal control over financial reporting criteria established
by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Place: New Delhi
Financial Controls Over Financial Reporting issued by the Institute Date: 12th May 2020
of Chartered Accountants of India. UDIN: 20085155AAAABJ7971

Consolidated Balance Sheet as at March 31, 2020
Particulars Note March 31, 2020 March 31, 2019
ASSETS
Non-Current Assets
Property,Plant and Equipment 2 3,054.72 2,643.29
Capital Work-in-Progress 399.15 313.76
Investment Property 2A 53.79 52.93
Goodwill 9.81 9.81
Other Intangible Assets 3 23.35 0.27
Intangible Assets Under Development 0.48 15.10
Financial Assets
Loans 5 - 17.47
Other Non-Current Assets 7 182.15 21.72
3,863.82 3,121.72
Current Assets
Inventories 8 498.19 346.27
Financial Assets
Trade Receivables 10 73.79 73.48
Cash and Cash Equivalents 11 29.52 15.24
Bank Balances other than above 12 12.51 11.50
Loans 13 118.25 150.80
Other Current Assets 15 199.69 126.36
1,426.63 1,400.38
Total Assets 5,290.45 4,522.10
EQUITY AND LIABILITIES
EQUITY
Equity Share Capital 16 178.24 178.24
Other Equity 2,187.25 1,859.86
Non-controlling interest 8.01 50.88
LIABILITIES
Non-Current Liabilities
Borrowings 17 1,425.06 1,287.34
Deferred Tax Liabilities (Net) 20 341.01 238.83
Other Non-Current Liabilities 21 47.83 -
1,893.34 1,592.69
Current Liabilities
Borrowings 22 119.69 18.04
Trade Payables 23
Micro & Small Enterprises 5.02 3.05
Others 377.20 271.19
Other Current Liabilities 25 141.03 175.74
Current Tax Liabilities 27 2.71 6.63
1,023.61 840.43
Total Equity and Liabilities 5,290.45 4,522.10
The accompanying notes referred to above form an integral part of the Consolidated Financial Statements
As per our report of even date attached For and on behalf of the Board of
Directors
A. S. Mehta
(N.K. LODHA)
Partner
158 | JK Paper
Consolidated Statement of Profit & Loss for the year ended March 31, 2020
Particulars Note 2019-20 2018-19
REVENUES :
Sales 3,258.91 3,469.19
Net Sales 3,018.84 3,233.64
Other Operating Revenues 28 41.35 23.07
Revenue from Operations 3,060.19 3,256.71
Other Income 29 103.81 50.00
Total Revenue 3,164.00 3,306.71
EXPENSES
Cost of Materials Consumed 30 1,266.83 1,278.11
Purchases of Stock-in-Trade 231.19 301.53
Changes in Inventories of Finished Goods, Stock-in-Trade and Work-in-Progress 31 (134.04) 47.85
Employee Benefits Expense 32 287.67 262.73
Finance Costs 33 129.30 124.40
Depreciation and Amortisation Expenses 34 149.48 127.68
Other Expenses 35 537.18 498.37
Total Expenses 2,467.61 2,640.67
Profit Before Interest, Depreciation & Tax 975.17 918.12
(EBITDA) Profit/(Loss) Before Tax 696.39 666.04
Tax Expense
Current Tax (MAT) 217.79 145.12
Less : MAT Credit Entitlement 0.27 (99.29)
Provision / (Credit) for Deferred Tax 9.92 195.27
Profit for the period 468.41 424.94
Items that will not be reclassified to statement of Profit and Loss
(i) Re-measurement Gain/(Loss) on Defined Benefit Plans (2.82) (1.27)
(ii) Tax on (i) above 0.97 0.60
(iii) Equity Instruments through Other Comprehensive Income (2.90) (2.20)
(iv) Tax on (iii) above - -
Items that will be reclassified to statement of Profit and Loss
Exchange differences on translating the financial statements of a foreign 2.02 -
operations
Total Comprehensive Income for the 465.68 422.07
period Net Profit attributable to:
a) Owners of the company 475.32 427.28
b) Non controlling interest (6.91) (2.34)
Other comprehensive Income attributable to:
a) Owners of the company (2.73) (3.00)
b) Non controlling interest - 0.13
Total comprehensive Income attributable to:
a) Owners of the company 472.59 424.28
b) Non controlling interest (6.91) (2.21)
Earnings per Equity Shares

1) Basic (in H) 26.28 23.88
2) Diluted (in H) 26.28 23.82
A. S. Mehta
(N.K. LODHA)
Partner

Consolidated Statement of Changes in Equity for the year ended March 31,
158 | JK Paper
2020
A. Equity Share Capital H in crores (10 Million)

March 31, 2018 Changes in Equity Share Capital during 2018- March 31, 2019 Changes in Equity Share Capital during 2019- March 31, 2020
175.50 19 178.24 20
2.74 - 178.24
B. Other Equity
Equity Reserve and Surplus CapitalSecurities Other Comprehensive Income (OCI) TotalAttributableTotal
Component Retained Capital Reserve Debenture Redemption Reserve
General ReserveExchange Items that will not be Attributableto Non - to owners of Controlling
Earnings
of Compound financial Instruments Redemption Premium ReserveReserve differences on Reclassified to profit or loss
Particulars translating the Re- Equity
the ParentInterests
financial statements measurement of Instruments
the net defined through OCI benefit plans
of a foreign operations
March 31, 2018 - 569.63 29.92 3.00 513.21 - 350.59 (0.19) (6.97) 8.40 1,467.59 - 1,467.59
Profit for the year 427.28 - - - - 427.28 (2.21) 425.07
FCCB Conversion - - - - 12.72 - - - - - 12.72 12.72
Transfer from Retained Earnings Other- Comprehensive
(200.00) Income- for - - - 200.00 - - - - - -
the year - - - - - - - - (0.80) (2.20) (3.00) - (3.00)
Transfer to debenture redemption
reserve - (4.74) - - - 4.74 - - - - - - -
Dividend including Corporate
Dividend Tax - (53.72) - - - - - - - - (53.72) - (53.72)
Issue of 0.1% Compulsory
Convertible Preference Share Adjustment
8.00 for translation
- of Non
- - - - - - - - 8.00 - 8.00
Integral Foreign Operations Changes in ownership interests in
subsidiaries March 31, 2019 Profit for the
- year - - - - - - 0.99 - - 0.99 - 0.99
Transfer from Retained Earnings Other Comprehensive Income for
the year - - - - - - - - - - - 53.09 53.09
Dividend including Corporate 8.00 738.45 29.92 3.00 525.93 4.74 550.59 0.80 (7.77) 6.20 1,859.86 50.88 1,910.74
Dividend Tax
475.32 - - - - 475.32 (6.91) 468.41
Issue of 0.1% Compulsory - (200.00) - - - - 200.00 - - - - - -
Convertible Preference Share Changes in ownership interests in
subsidiaries - - - - - - - 2.02 (1.85) (2.90) (2.73) - (2.73)
March 31, 2020
- (161.16) - - - - - - - - (161.16) - (161.16)
23.00 - - - - - - - - - 23.00 - 23.00
- (7.04) - - - - - - - - (7.04) (35.96) (43.00)

31.00 845.57 29.92 3.00 525.93 4.74 750.59 2.82 (9.62) 3.30 2,187.25 8.01 2,195.26

Chartered Accountants Vice Chairman & Managing Director
Firm’s Registration Number 301051E
A. S. Mehta
(N.K. LODHA)
Partner
Notes to the Consolidated Financial Statement for the year ended March 31,
Note 1. SIGNIFICANT ACCOUNTING POLICIES FOR THE YEAR ENDED 31ST MARCH, 2020.
(i) Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can
be reliably measured. The specific recognition criteria described below also be met before revenue is recognised.
Sale of goods
Revenue from the sale of goods is recognised upon satisfaction of performance obligation which is at a point in time when control
of the goods is transferred to the customer, the Company no longer has effective control over the goods sold, the amount of
revenue and costs associated with the transaction can be measured reliably and no significant uncertainty exists regarding the
amount of Consideration that will be derived from the sales of Goods. Revenue from the sale of goods is measured at the fair value
of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates. Export incentives,
Duty drawbacks and other benefits are recognized in the Statement of Profit and Loss.
Interest income
Interest income is recognized on time proportion basis using the effective interest method.
Dividend Income
Dividend income is recognized when the right to receive payment is established, which is generally when shareholders approve the
same.
Renewal Energy Certificate
Renewable Energy Certificate (REC) benefits are recognized in Statement of Profit & Loss on sale of REC’s.
(ii) Inventory Valuation
Inventories such as Raw Materials, Work-in-Progress, Finished Goods, Stock in Trade, Stores & Spares and Renewable Energy
Certificates are valued at the lower of cost and net realisable value (except scrap/waste which are value at net realisable value). The cost
is computed on weighted average basis. Finished Goods and Process Stock include cost of conversion and other costs incurred
in bringing the inventories to their present location and condition.
(iii) Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand cash at bank and demand deposits with banks with an original maturity of three
months or less which are subject to an insignificant risk of change in value.
(iv) Property Plant and Equipment
On transition to IND AS, the company has adopted optional exception under Ind AS 101 to measure Property, Plant and Equipment
(PPE) at fair value. Consequently the fair value has been assumed to be deemed cost of PPE on the date of transition. Subsequently PPE
are carried at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes expenditure that is directly
attributable to the acquisition of the items.
PPE acquired are stated at cost net of tax/duty credit availed, less accumulated depreciation and accumulated impairment losses,
if any. Cost includes expenses directly attributable to bringing the asset to the location and condition necessary for it to be capable
of operating in the manner intended by management
Capital work-in-progress includes cost of PPE under installation / under development as at the balance sheet date. Advances paid
towards the acquisition of PPE outstanding at each balance sheet date is classified as capital advances under other non-current assets.
Subsequent expenditures relating to PPE is capitalized only when it is probable that future economic benefits associated with these
will flow to the Company and the costs to the item can be measured reliably. Repairs and maintenance costs are recognized in net
profit in the statement of profit and loss when incurred. The cost and related accumulated depreciation are eliminated from the
financial statements upon sale or retirement of the asset and the resultant gain or losses are recognized in the statement of profit and
loss.
Depreciation on Buildings, Plant & Machinery, Railway Siding and Other Assets of all Units is provided as per straight line method
over their useful lives as prescribed under Schedule II of Companies Act, 2013. However, in respect of certain property, plant and
equipment, depreciation is provided as per their useful lives as assessed by the management supported by technical advice ranging
from 10 to 40 years for plant and machinery and 8 to 60 years for buildings.

2020
Depreciation on additions due to exchange rate fluctuation is provided on the basis of residual life of the assets. Depreciation on
assets costing up to H5000/- and on Temporary Sheds is provided in full during the year of additions.
Depreciation will be charged from the date the assets is available for use, i.e., when it is in the location and condition necessary for it to
be capable of operating in the manner intended by management. The residual values, useful lives and methods of depreciation of
PPE are reviewed at each financial year end and adjusted prospectively, if appropriate.
Leased Assets
Leasehold lands are amortized over the period of lease, Buildings constructed on leasehold land are depreciated based on the useful life
specified in Schedule II to the Companies Act, 2013, where the lease period of land is beyond the life of the building.
Intangible Assets
Intangible Assets are recognised, if the future economic benefits attributable to the assets are expected to flow to the company
and cost of the asset can be measured reliably. All other expenditure is expensed as incurred. The same are amortised over the expected
duration of benefits. Such intangible assets are measured at cost less any accumulated amortisation and impairment losses, if any
and are amortised over their respective individual estimated useful life on straight line method.
The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of
each reporting period and adjusted prospectively, if appropriate.
(v) Research and Development Costs
Revenue expenditure on Research and Development is charged to statement of Profit and loss in the year in which it is incurred and
capital expenditure is added to Fixed Asset.
(vi) Leases
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control
the use of an identified asset for a period of time in exchange for consideration.
Company as a Lessee
The Company has adopted Ind AS 116 “Leases” effective April 1,2019 (Transition date)
The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-
value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the
underlying assets.
The Company has adopted Ind AS 116 “Leases” effective April 1,2019 (Transition date) using the simplified approach (Retrospective
cumulative effect from April 1,2019)
Right-of-use Assets
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available
for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any
re- measurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct
costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use
assets are depreciated on a straight-line basis from the commencement date over the shorter of the lease term and the estimated
useful lives of the assets.
If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a
purchase option, depreciation is calculated using the estimated useful life of the asset.
Lease Liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments
to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease
incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value
guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the
Company
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and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable
lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce
inventories) in the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Company uses its existing borrowing rate at the lease commencement date
because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities
is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease
liabilities is re-measured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an
option to purchase the underlying asset.
Lease liabilities and Right-of-use assets have been presented as a separate line in Note 2 of Property, Plant and Equipment (PPE) and Note
17 of Non current Financial Liabilities -Borrowings. Lease payments have been classified as cash used in financing activities.
Short-Term Leases and Leases of Low-value Assets
The Company has elected not to recognise right-of-use assets and lease liabilities for short term leases of all assets that have a
lease term of 12 months or less and leases of low-value assets. The Company recognises the lease payments associated with these
leases as an expense on a straight-line basis over the lease.
The Company as a Lessor
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified
as operating leases.
For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.
(vii) Impairment
The carrying amount of PPEs, Intangible assets and Investment property are reviewed at each Balance Sheet date to assess impairment
if any, based on internal / external factors. An asset is treated as impaired, when the carrying cost of asset exceeds its recoverable value,
being higher of value in use and net selling price. An impairment loss is recognised as an expense in the Statement of Profit and
Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed, if there
has been an improvement in recoverable amount.
(viii)Financial Assets & Liabilities
A Financial Instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity.
At initial recognition, all financial assets are measured at fair value. Such financial assets are subsequently classified under following three
categories according to the purpose for which they are held. The classification is reviewed at the end of each reporting period.
(a) Financial Assets at Amortised Cost
At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount outstanding
on specified dates. These financial assets are intended to be held until maturity. Therefore, they are subsequently measured
at amortised cost by applying the Effective Interest Rate (EIR) method to the gross carrying amount of the financial asset. The
EIR amortisation is included as interest income in the profit or loss. The losses arising from impairment are recognised in the profit or
loss.
(b) Financial Assets at Fair value through Other Comprehensive Income
At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount outstanding
on specified dates, as well as held for selling. Therefore, they are subsequently measured at each reporting date at fair value, with
all fair value movements recognised in Other Comprehensive Income (OCI). Interest income calculated using the effective interest
rate (EIR) method, impairment gain or loss and foreign exchange gain or loss are recognised in the Statement of Profit and
Loss. On derecognition of the asset, cumulative gain or loss previously recognised in Other Comprehensive Income is
reclassified from the OCI to Statement of Profit and Loss.

2020
(c) Financial Assets at Fair value through Profit or Loss
At the date of initial recognition, Financial assets are held for trading, or which are measured neither at Amortised Cost nor at Fair
Value through OCI. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value movements
recognised in the Statement of Profit and Loss.
Trade Receivables.
A Receivable is classified as a ‘trade receivable’ if it is in respect to the amount due from customers on account of goods sold or services
rendered in the ordinary course of business. Trade receivables are recognised initially at fair value and subsequently measured at
amortised cost using the effective interest method, less provision for impairment. For some trade receivables the Company may obtain
security in the form of guarantee, security deposit or letter of credit which can be called upon if the counterparty is in default under the
terms of the agreement.
Impairment is made on the expected credit losses, which are the present value of the cash shortfalls over the expected life of financial
assets. The estimated impairment losses are recognised in a separate provision for impairment and the impairment losses are
recognised in the Statement of Profit and Loss within other expenses.
Subsequent changes in assessment of impairment are recognised in provision for impairment and the change in impairment losses
are recognised in the Statement of Profit and Loss within other expenses.
Investment in Equity Shares.
Investments in Equity Securities are initially measured at cost. Any subsequent fair value gain or loss is recognized through Profit or
Loss if such investments in Equity Securities are held for trading purposes. The fair value gains or losses of all other Equity Securities are
recognized in Other Comprehensive Income.
Investment in Associates, Joint Ventures and Subsidiaries.
The Company has accounted for its investment in subsidiaries, associates and joint venture at cost.
Investments in Mutual Funds
Investments in Mutual Funds are accounted for at cost. Any subsequent fair value gain or loss is recognized through Profit or Loss
Account.
Derecognition.
Financial Asset is primarily derecognised when:
(i) The right to receive cash flows from asset has expired, or
(ii) The Company has transferred its right to receive cash flows from the asset or has assumed an obligation to pay the received
cash flows in full without material delay to a third party under a “ pass-through” arrangement and either:
a) The Company has transferred substantially all the risks and rewards of the asset, or
b) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control
of the asset.
When the Company has transferred its right to receive cash flows from an asset or has entered into a pass through arrangement, it
evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained
substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the
transferred asset to the extent of the Company’s continuing involvement. In that case, the Company also recognises an associated
liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the
Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original
carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.
Financial Liabilities.
Initial Recognition and Measurement
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs. The Company’s financial liabilities include trade and other payables, loans and borrowings including
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bank overdrafts, and derivative financial instruments.

2020
Subsequent Measurement.
The measurement of financial liabilities depends on their classification, as described below :
a) Financial Liabilities at Fair Value through Profit or Loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading. The Company has not designated
any financial liabilities upon initial measurement recognition at fair value through profit or loss. Financial liabilities at fair
value through profit or loss are at each reporting date with all the changes recognized in the Statement of Profit and Loss.
b) Financial Liabilities measured at Amortised Cost
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the
effective interest rate method (‘’EIR’’) except for those designated in an effective hedging relationship. The carrying value of
borrowings that are designated as hedged items in fair value hedges that would otherwise be carried at amortised cost are
adjusted to record changes in fair values attributable to the risks that are hedged in effective hedging relationship.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fee or costs that are an
integral part of the EIR. The EIR amortisation is included in finance costs in the Statement of Profit and Loss.
c) Loans and Borrowings
After initial recognition, interest-bearing borrowings are subsequently measured at amortised cost using the effective interest rate
method. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or
loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are
recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for
at least twelve months after the reporting period.
d) Trade and Other Payables
A payable is classified as ’trade payable’ if it is in respect of the amount due on account of goods purchased or services received in
the normal course of business. These amounts represent liabilities for goods and services provided to the Company prior to the
end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due
within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised
cost using the effective interest method.
De-recognition of Financial Liability
A Financial Liability is derecognised when the obligation under the liability is discharged or cancelled or expires. The difference between
the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid,
including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other income or finance costs.
Offsetting of Financial Instruments
Financial Assets and Financial Liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable
legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities
simultaneously.
Derivative Financial Instruments
The Company uses derivative financial instruments, such as forward currency contracts and interest rate swaps to hedge its foreign
currency risks and interest rate risks. Derivative financial instruments are initially recognised at fair value on the date a derivative contract
is entered into and are subsequently re-measured at their fair value at the end of each period. The method of recognizing the resulting
gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, on the nature of the item being
hedged. Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss.
Compound Financial Instruments
The liability component of a compound financial instrument is recognised initially at fair value of a similar liability that does not
have an equity component. The equity component is recognised initially as the difference between the fair value of the compound
financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to
the liability and the equity components, if material, in proportion to their initial carrying amounts.
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Subsequent to the initial recognition, the liability component of a compound financial instrument is measured at amortised cost
using the effective interest rate method. The equity component of a compound financial instrument is not re-measured subsequent to
initial recognition except on conversion or expiry.
(ix) Foreign Exchange Transactions / Translations / Hedge Accounting
Financial statements are presented in Indian Rupee, which is Company’s functional currency. Monetary assets and liabilities
denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Financial
instruments designated as Hedge Instruments are mark to market using the valuation given by the bank on the reporting date.
Exchange differences arising on settlement of monetary items on actual payments / realisations and year end translations including on
forward contracts are dealt with in Profit and Loss Statement except exchange differences arising on those Long term foreign currency
monetary items, related to acquisition of depreciable capital assets being carried forward from previous GAAP, which are adjusted to
cost of such assets and depreciated over their balance life pursuant to the option in Notification No. G.S.R 914(E) dated 29th
December, 2011 issued by Ministry of Corporate Affairs. Non Monetary Foreign Currency items are stated at cost.
(x) Employee Benefits
a) Defined Contribution Plan
The Company makes defined contribution to Superannuation Funds, which are accounted on accrual basis as expenses in the
statement of Profit and Loss
b) Defined Benefit Plan
The Company’s Liabilities on account of Gratuity and Earned Leave on retirement of employees are determined at the end of
each financial year on the basis of actuarial valuation certificates obtained from Registered Actuary in accordance with the
measurement procedure as per Indian Accounting Standard (Ind AS-19), ‘Employee Benefits’. These liabilities are funded on year-to-
year basis by contribution to respective funds. The costs of providing benefits under these plans are also determined on the basis of
actuarial valuation at each year end. Actuarial gains and losses for defined benefit plans are recognized through OCI in the
period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.
The Provident Fund Contribution other than contribution to Employees’ Regional Provident Fund, is made to trust
administered by the trustees. The interest rate to the members of the trust shall not be lower than the statutory rate declared by
the Central Government under Employees’ Provident Fund and Miscellaneous Provision Act, 1952. The Employer shall make
good deficiency, if any.
The Defined Benefit Plan can be short term or Long terms which are defined below:
i) Short-term Employee Benefit
All employees’ benefits payable wholly within twelve months rendering services are classified as short term employee benefits.
Benefits such as salaries, wages, short-term compensated absences, performance incentives etc., and the expected cost
of bonus, ex-gratia are recognized during the period in which the employee renders related service.
ii) Long-term Employee Benefits
Compensated absences which are not expected to occur within 12 months after the end of the period in which the
employee renders the related services are recognized as a liability at the present value of the defined benefit obligation at the
balance sheet date
c) Termination Benefits
Termination benefits are recognized as an expense in the period in which they are incurred. The Company shall recognise a liability
and expense for termination benefits at the earlier of the following dates:
(a) When the entity can no longer withdraw the offer of those benefits; and
(b) When the entity recognises costs for a restructuring that is within the scope of Ind AS 37 and involves the payment
of termination benefits.

2020
(xi) Earnings per Share (EPS)

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the
weighted average number of equity shares outstanding during the period.
Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the
weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average
number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential
equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market
value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period,
unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any
share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of
Directors.
(xii)Income Tax
Current Income Tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities.
The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Current income tax relating to items recognised directly in equity is recognised in equity and not in the statement of profit and
loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations
are subject to interpretation and establishes provisions where appropriate.
Deferred Tax
Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purpose at reporting date. Deferred income tax assets
and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date and
are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that
includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that
future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. The Company
offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and
where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
Minimum Alternate Tax
Minimum Alternate Tax credit is recognized, as an asset only when and to the extent there is convincing evidence that the
Company will pay normal income tax during the specified period.
(xiii)Provisions and Contingent Liabilities /Assets
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of profit
and loss net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax
rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.
Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement. Contingent liabilities are
not recognised but are disclosed in notes.
Contingent Assets are not recognised in financial statements but are disclosed, since the former treatment may result in the
recognition of income that may or may not be realised. However, when the realisation of income is virtually certain, then the
related asset is not a contingent asset and its recognition is appropriate.
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(xiv) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
(xv) Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are
expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection
with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the
borrowing costs.
(xvi) Fair Value Measurements
The Company measures financial instruments such as derivatives and certain investments, at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the
asset or transfer the liability takes place either:
• In the principal market for the asset or
liability. Or
• In the absence of a principal market , in the most advantageous market for the asset or liability. The principal or the most
advantageous market must be accessible by the Company.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair
value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole;
• Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
• Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly
observable.
• Level 3- Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature,
characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
(xvii) Investment Properties
Investment Properties comprises portions of freehold land and buildings that are held for long-term rentals yields and/or for capital
appreciation. Investment properties are initially recognised at cost. Subsequent Investment property comprising of building is carried at
cost less accumulated depreciation and accumulated impairment losses.
Depreciation on building is provided over the estimated useful lives as specified in Schedule II to the Companies Act, 2013. Though
the Company measures investment property using cost based measurement, the fair value of investment is disclosed in notes.
The difference between the net disposal proceeds and the carrying amount of the asset is recognised In the statement of profit and
loss in the period of derecognition.
(xviii) Significant Accounting Judgments, Estimates and Assumptions
In the process of applying the Company’s accounting policies, management has made the following estimates, assumptions and
judgements which have significant effect on the amounts recognized in the financial statement:

2020
a. Income Taxes
Judgment of the Management is required for the calculation of provision for income taxes and deferred tax assets and liabilities. The
company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used in estimates may differ
from actual outcome which could lead to significant adjustment to the amounts reported in the standalone financial
statements.
b. Contingencies
Judgment of the Management is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/
litigations against the company as it is not possible to predict the outcome of pending matters with accuracy.
c. Allowance for uncollected accounts receivable and advances
Trade receivables do not carry any interest and are stated at their normal value as reduced by appropriate allowances for estimated
irrecoverable amounts. Individual trade receivables are written off when management deems them not collectible. Impairment is
made on ECL, which are the present value of the cash shortfall over the expected life of the financial assets.
d. Defined Benefit Plans
The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are
determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual
developments in future. These Includes the determination of the discount rate, future salary increases, mortality rates and attrition
rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive
to changes in these assumptions. All assumptions are reviewed at each reporting date.
e. Fair Value Measurement of Financial Instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted
prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow (DCF)
model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of
judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk
and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
(xix) Business Combinations
Business Combinations are accounted for using the acquisition method. The cost of acquisition is measured at the aggregate of the
fair values at the date of exchange of assets given, liabilities incurred or assumed and equity instruments issued by the Company in
exchange for control of the acquiree. The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the recognition
criteria are stated at their fair values at the acquisition date except certain assets and liabilities required to be measured as per
the applicable standard.
The interest of non-controlling shareholders in the acquiree is initially measured at the non-controlling shareholders’ proportionate
share of the acquiree’s identifiable net assets.
The interests of the parent and NCI in the subsidiary are adjusted to reflect the relative change in their interests in the subsidiary’s equity.
As per Ind AS 110, any difference between the amount by which NCI are adjusted and the fair value of the consideration paid or
received is recognised directly in equity and attributed to the owners of the parent.
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Note 2. PROPERTY, PLANT AND EQUIPMENT (PPE)
Description April 1, Additions/ Sales/ March April 1, For the On Sales/ March March March
2019 Adjustments Adjustments 31, 2020 2019 year Adjustments 31, 2020 31, 2020 31, 2019
Land - Freehold (a) 342.78 - - 342.78 - - - - 342.78 342.78
- Leasehold^ 82.76 - 82.76 - 5.88 - 5.88 - - 76.88
-Right-of-use - 76.88 - 76.88 - 1.45 - 1.45 75.43 -
Asset^
Building 303.22 31.79 0.06 334.95 44.45 12.32 0.05 56.72 278.23 258.77
Plant & Equipment 479.90 11.07 2,754.82 350.24 112.60 6.06 456.78 2,298.04 1,935.75
(b) 2,285.99
Right-of-use - 38.94 - 38.94 - 12.03 - 12.03 26.91 -
Asset(Plant &
Equipment)
Furniture and 5.47 0.66 - 6.13 1.82 0.57 - 2.39 3.74 3.65
Fixture
Office Equipment 10.03 2.28 0.07 12.24 3.89 2.16 0.06 5.99 6.25 6.14
Vehicles & 20.93 7.99 1.48 27.44 3.41 2.92 0.59 5.74 21.70 17.52
Locomotive
Railway Siding 2.60 - - 2.60 0.80 0.16 - 0.96 1.64 1.80
Total 638.44 95.44 3,596.78 410.49 144.21 12.64 542.06 3,054.72 2,643.29
3,053.78
Previous year 378.06 219.45 3,053.78 291.62 126.10 7.23 410.49 2,643.29
2,895.17
^ Reclassified on account of adoption of Ind AS-116.

Notes:
a) Includes cost of 4.67 acres land given on lease to Employees State Insurance Corporation for construction of Hospital for Employees
and cost of 34.72 acres land of H20.24 crores (Previous year H20.24 crores) for which title is yet to be transferred in name of the
Company.
b) During the year H9.03 crores has been added in Plant & Equipment due to Foreign Exchange Fluctuation (Net) (Previous year H5.83 crores
was deducted) .
C) After adjusting Fair value as on 1st Aug 2018 on Acquisition of The Sirpur Paper Mills Limited as per resolution plan.
Note 2A INVESTMENT PROPERTY

Description April 1, Additions/ Sales/ March April 1, For the Sales/ March March March
2019 Adjustments Adjustments 31, 2020 2019 year Adjustments 31, 2020 31, 2020 31, 2019
Land
Freehold 6.99 - - 6.99 - - - - 6.99 6.99
Leasehold 12.01 - - 12.01 1.83 0.20 - 2.03 9.98 10.18
Buildings 42.79 2.34 - 45.13 7.03 1.28 - 8.31 36.82 35.76
Total 61.79 2.34 - 64.13 8.86 1.48 - 10.34 53.79 52.93
Previous year ended 57.88 3.91 - 61.79 7.51 1.35 - 8.86 52.93
31st March 2019
As at 31st March 2019, the fair value of Land and Buildings are H116.20 crores. These Valuations are based on valuations performed by an
accredited independent valuer. Fair valuation is based on replacement cost method. Management estimates that there is no major
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change in fair valuation as on 31st March, 2020.

Note 3. OTHER INTANGIBLE ASSETS
Gross Carrying Value Amortisation Net Carrying Value
Description April 1, Additions/ Sales/ Mar 31, April 1, For the On Sales/ Mar 31, Mar 31, March
2019 Adjustments Adjustments 2020 2019 year Adjustments 2020 2020 31, 2019
Computer Software 4.84 26.88 3.23 28.49 4.57 3.79 3.22 5.14 23.35 0.27
Total 4.84 26.88 3.23 28.49 4.57 3.79 3.22 5.14 23.35 0.27
Previous year 3.90 0.94 - 4.84 3.69 0.88 - 4.57 0.27
Note 4. NON- CURRENT INVESTMENTS
Face Value March 31, 2020 March 31, 2019

Particulars
H /Share No. of Share Value No. of Share Value
Quoted, Equity shares fully paid up
Investment Carried at Fair Value through OCI
JK Lakshmi Cement Limited 5/- 1,91,000 3.74 1,91,000 6.64
Unquoted, Equity shares fully paid up
Investment Carried at Fair Value through Profit & Loss
Investment in Equity instruments of Others
Global Strategic Technologies Limited 10/- 3,42,000 0.34 - -
Unquoted, Preference shares fully paid up
Bengal & Assam Company Limited 100/- 65,00,000 65.00 - -
Global Strategic Technologies Limited 100/- 5,00,000 5.00 - -
Deepti Electronics and Electro Optics Private Limited 100/- 10,00,000 10.00 - -
Investments Carried at Cost
Investment in Equity instrument of Joint Venture
Habras MZZ Plantation Myanmar Company Limited USD 1000 3,250 24.50 3,250 22.48
Share of Post acquisition profit and reserves in Joint Venture - - -
Investment in Others
JK Paper Mills Employees' Co-operative Stores Limited (CY 10/- 250 0.00 250 0.00
H2500/- ,PY H2500/-)
108.58 29.12
Aggregate market value of quoted investments 3.74 6.64
Note 5. NON CURRENT FINANCIAL ASSETS - LOANS

At Amortised Cost
JK Paper Employees` Welfare Trust - 17.47
TOTAL - 17.47
Note 6. NON CURRENT FINANCIAL ASSETS - OTHERS

Deposits with Government Authorities 7.75 3.27
Others Deposit 19.63 10.04
TOTAL 31.79 18.25
170 | JK Paper
Note 7. OTHER NON CURRENT ASSETS
Capital Advances 166.90 13.62
Deposits with Government Authorities and Others 15.25 8.10
TOTAL 182.15 21.72
Note 8. INVENTORIES (AS TAKEN AND CERTIFIED BY THE MANAGEMENT)

Raw Materials # 199.89 183.79
Work-in-Progress @ 63.58 20.52
Stock in Trade # 7.62 24.98
Stores & Spares # 78.92 76.94
TOTAL 498.19 346.27
# Includes Raw Materials in transit H10.08 crores (As at 31-03-19 H2.07 crores), Stores & Spares in transit H1.91 crores (As at 31-03-19 H1.49
crores) and Stock in Trade in transit H1.27 crores (As at 31-03-19 H NIL).
@ Includes Pulp in process H3.82 crores (As at 31-03-19 H10.77 crores) and Semi Finished Goods H48.42 crores (As at 31-03-19 H9.35 crores).
Note 9. CURRENT INVESTMENTS
Investments in Liquid Funds- at fair value through P&L
Investment in Non Convertible Debenture 74.91 499.48
Investment in Mutual Fund 307.73 121.76
FD with Non Schedule Bank - 25.00
382.64 646.24
Aggregate book value of quoted investments 307.73 121.76
Note 10. TRADE RECEIVABLES

Unsecured
Considered Good # 73.79 73.48
Credit Impaired 0.48 0.35
74.27 73.83
Less: Allowance for credit impairment 0.48 0.35
TOTAL 73.79 73.48
Note 11. CASH AND CASH EQUIVALENTS

Cash & Cash Equivalents
Current Accounts* 28.76 15.01
Cheques/Drafts on hand - 0.09
Bank Deposits with original maturity of 3 months or less 0.51 -
Cash on Hand 0.25 0.14
TOTAL 29.52 15.24
* includes H1.72 crores in CY and H3.56 crores in PY earmarked for specified purposes.

172 | JK Paper
Note 12. BANK BALANCE OTHER THAN CASH AND CASH EQUIVALENTS
Other Bank Balances
Unclaimed Dividend Accounts 0.72 0.20
Fixed Deposit with Scheduled Banks # 11.79 11.30
TOTAL 12.51 11.50
# Includes H0.20 crores (Previous year H0.51 crores) pledged with Government Authorities.
Note 13. CURRENT FINANCIAL ASSETS - LOANS
Loans to related parties
Bengal & Assam Company Limited-(Associate of ) 90.00 120.00
Other Loans & Advances
Others 28.25 30.80
TOTAL 118.25 150.80
All the above loans and advances have been given in the ordinary course of business for general business purpose (U/s 186(4) of the
Companies Act 2013)
Note 14. CURRENT FINANCIAL ASSETS - OTHER
Advances to Employees 1.00 1.02
Government Grant Receivable - Revenue 44.51
Government Grant Receivable - Capital 50.00
TOTAL 112.04 30.49
Note 15. OTHER CURRENT ASSETS

Advances to Suppliers 57.53 47.80
Indirect Tax Recoverable 129.70 66.65
Other Deposits 2.73 3.64
Prepaid Finance Charges 3.25 2.40
Doubtful Advances
Other 0.35 0.60
200.04 126.96
Less : Allowance for Doubtful Advances 0.35 0.60
TOTAL 199.69 126.36

Note 16. SHARE CAPITAL
Authorised :
Equity Shares - 30,00,00,000 of H10/- each 300.00 300.00
(30,00,00,000 Equity Share of H10 each as at 31-March-2019)
Redeemable Preference Shares - 2,00,00,000 of H10/- each 200.00 200.00
(2,00,00,000 Share of H100 each as at 31-March-2019)
500.00 500.00
Issued, Subscribed and Paid-up :
Equity Shares - 17,82,43,585 of H10/- each (17,82,43,585 Equity Share of 178.24 178.24
H10 each fully paid up at 31-March-2019)
178.24 178.24
Notes :
(a) Reconciliation of Equity Share Capital (In numbers)

Shares outstanding at the beginning of the year 17,82,43,585 17,55,00,850
Add : Shares issued during the year - 27,42,735
Shares outstanding at the end of the year 17,82,43,585 17,82,43,585
(b) Equity Shares:

The Equity Shareholders have:-
- The right to receive dividend out of balance of net profits remaining after payment of dividend to the preference shareholders. The
dividend proposed by Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting.
- The Company has only one class of Equity Shares having face value of H10/- each and each shareholder is entitled to one vote
per share.
- In the event of winding up, the equity shareholders will be entitled to receive the remaining balance of assets if any, after
preferential payments and to have a share in surplus assets of the Company, proportionate to their individual shareholding in
the paid up equity capital of the Company.
(c) Reconciliation of Preference Shares Capital (In numbers)

Preference Shares outstanding at the beginning of the year 40,00,000
Add : issued during the year (Nominal Value H100, H100 Paid up ) 23,00,000 40,00,000
Previous year (Nominal Value H100, H20 Paid up)
Preference Shares outstanding at the end of the year 63,00,000 40,00,000
Subsidiary issued following preference shares :

During the Current year :
JK Enviro-Tech Limited has issued Compulsory Convertible Preference Shares having nominal Value of H100/- (One Hundred) each,
aggregating to H23,00,00,000 (Rupees Twenty Three crores only), having 0.01% dividend (on cumulative basis) on 4th September 2019,
to be convertible into Equity shares of the Company, having nominal value of H10 each, at a conversion price of H20.80 per equity
share (including premium of H10.80 per equity share) at any time upto 7 years but further extendable with mutual consent of the
Company and the shareholder(s), by way of preferential allotment for cash. These convertible preference share is recorded in Other
equity.
174 | JK Paper
Note 16. SHARE CAPITAL (contd.)
During the Previous year :
JK Enviro-Tech Limited has issued Compulsory Convertible Preference Shares(Series 1 and 2) having nominal Value of H100/- (One
Hundred) each, aggregating to H40,00,00,000 (Nos 40,00,000), having 0.01% dividend (on cumulative basis), with H20 payable on
application and balance H80 to be payable at the end of 5 years from the date of allotment or at the time of conversion whichever
is earlier,to be convertible into Equity shares of the Company, having nominal value of H10 each, at a conversion price of H12 per
equity share (including premium of H2 per equity share) at any time upto 7 years but further extendable with mutual consent of
the Company. The equity portion of convertible preference share is recorded in Other equity.
(c) List of Shareholders holding more than 5% of the Equity Share Capital of the Company (In numbers) :

Bengal & Assam Company Limited 7,96,27,228 3,64,18,299
BMF Investments Limited - 3,00,89,797
Florence Investech Limited - 1,18,33,332
Trustees, JK Paper Employees Welfare Trust 84,23,655 98,28,655
Note 17. NON CURRENT FINANCIAL LIABILITIES - BORROWINGS

SECURED
Term Loan
From Banks 1,099.16 1,000.57
From Financial Institutions 119.76 135.70
Non Convertible Debentures (NCDs) 332.01 331.57
UNSECURED
Liability Component of Redeemable Preference Share 51.12 48.04
Lease Liabilities 28.10
1662.56 1544.54
Less : Current Maturities of Long Term Borrowings 237.50 257.20
TOTAL 1425.06 1287.34
A. Term Loans of H323.91 crores (FIs – H Nil, Banks H323.91 crores) and NCD of H335 crores are secured by means of first pari passu
mortgage/ charge on the fixed assets of the company . Out of the above Term Loan, H165.39 crores (FIs - H Nil, Banks H165.39
crores) are further secured by second charge on the current assets of the Company. These Term Loans are/shall be repayable as
under :-
1 Term Loans aggregating to H323.91 crores are repayable in total 60 quarterly instalments from June 2020 to March 2024.
2 NCDs of H335.00 crores is repayable in 15 Half yearly instalment from September 2021 to July 2028.
B. Term Loans of H416.28 crores (FIs – H120.00 crores, Banks H296.28 crores) is secured by means of first pari passu mortgage/charge on the
fixed assets, both present and future, of Unit JKPM of the company. These Term Loans are/shall be repayable as under :-
1 Term Loans aggregating to H158.00 crores are repayable in total 37 equal quarterly-instalments from June 2020 to September 2027.
2 Term Loans aggregating to H170.62 crores are repayable in total 14 equal half-yearly instalments from May 2020 to August 2023.
3 Term Loans aggregating to H87.66 crores are repayable in total 29 quarterly instalments from May 2020 to Mar 2024.

Note 17. NON CURRENT FINANCIAL LIABILITIES - BORROWINGS (contd.)
C. Term Loans of H125.63 crores (FIs – H Nil, Banks H125.63 crores) is secured by means of first pari passu mortgage/charge on the
fixed assets, both present and future, of Unit CPM of the company. These Term Loans are/shall be repayable as under :-
1 Term Loans aggregating to H95.00 crores are repayable in total 36 equal quarterly-instalments from December 2022 to September
2031.
2 Term Loans aggregating to H30.63 crores are repayable in total 36 quarterly instalments from December 2022 to September 2031.
D. Term Loans aggregating to H1.19 crores (FIs – H Nil, Banks H1.19 crores) are secured by specific charge on the Vehicle hypothecated
against these loans. These Term Loans are repayable in total 33 monthly instalments from April 2020 to December 2022.
E. Secured Term loans from Financial Institutions and Banks have been reduced by H5.95 crores (FIs – H0.24 crores, Banks H5.71 crores) and
NCDs have been reduced by H2.99 crores due to effective rate of interest.
F. Certain charges are in the process of satisfaction. Secured Term loans from Financial Institutions and Banks include H219.92 crores foreign
currency loans.
G Lease Liabilities aggregating to H28.10 crores is repayable in total 160 equal monthly instalments from April 2020 to June 2026.
H Public deposits are due for repayment in 2020-21, 2021-22 & 2022-23.
I Subsidiary :
A Term Loans of H361.14 crores from Banks is secured by means of first pari passu mortgage/charge on the fixed assets of the
company, and is further secured by second charge on the current assets of the Company. JK Paper Limited (Ultimate Parent
Company) has also extended the Letter of Comfort towards the above loans.
i. Term Loans aggregating to H331.14 crores are repayable in total 36 equal quarterly instalments from December 2021 to
September 2030.
ii. Term Loans aggregating to H30.00 crores are repayable in total 16 equal quarterly instalments from September 2021 to June
2025.
B Secured Term loans from Bank has been reduced by H3.28 crores due to effective rate of interest.
C. During the previous year company had issued Redeemable Preference Shares of H162 crores to be redeemed at the end of 20
years from the issue date with dividend of 0.01% p.a. The Equity portion of these Redeemable Preference Shares, on account of
Dividend Percentage being lower than effective market rate, is recorded in Other Equity.
Note 18. NON CURRENT FINANCIAL LIABILITIES - OTHER
Trade Deposits 67.69 56.38
Interest Accrued but not due on Loans 1.55 0.73
TOTAL 70.34 59.03
Note 19. NON CURRENT PROVISIONS

TOTAL 9.10 7.49
176 | JK Paper
Note 20. DEFERRED TAX LIABILITIES
Tax on difference between book value of depreciable assets as per books of account and 569.75 524.04
written down value as per Income Tax
Tax on carried forward unabsorbed Depreciation (73.25) (42.64)
Tax on Others 16.88 23.03
a. Total Deferred Tax Liability 513.38 504.43
Opening MAT Credit Entitlements (265.60) (166.31)
Current MAT Credit Entitlement 1.83 (99.29)
Reversal of MAT Credit of Earlier Years 91.40 -
b. Total MAT Credit Entitlement (172.37) (265.60)
c. Net Deferred Tax Liability (a+b) 341.01 238.83
Based on the past performance and current plans, the Company expects to continue to generate taxable income which will enable it to
utilise MAT credit entitlement.
Note 21. OTHER NON CURRENT LIABILITIES
Deferred Government Grant 47.83 -
TOTAL 47.83 -
Note 22. CURRENT FINANCIAL LIABILITIES - BORROWINGS

SECURED
Working Capital Borrowings from Bank 78.42 14.29
UNSECURED
Commercial Paper 26.71 -
Working Capital Borrowings from Bank 8.90 -
TOTAL 119.69 18.04
Working Capital Borrowings are secured by hypothecation of Raw Materials, Finished Goods, Stock-in-Process, Stores & Spares and Book
Debts. The same are further secured by a second charge on the movable and immovable assets of the Company.
Note 23. CURRENT FINANCIAL LIABILITIES - TRADE PAYABLE
Acceptances
Trade Payable
Total outstanding dues of Micro and Small Enterprises 5.02 3.05
Total Outstanding dues of Creditors other than Micro and Small Enterprises 377.20 271.19
TOTAL 382.22 274.24

Note 24. CURRENT FINANCIAL LIABILITIES - OTHER
Current Maturities of Non Current Borrowings 237.50 257.20
Unclaimed Dividends # 0.72 0.20
Unclaimed Matured Deposits # 0.67 0.88
Unclaimed Interest on Unclaimed Matured Deposits # 0.13 0.16
Capital Creditors 63.22 18.82
TOTAL 372.49 360.91
# Investor Education and Protection Fund will be credited as & when due.
Note 25. OTHER CURRENT LIABILITIES
Advance from Customers 15.07 8.17
Statutory Dues 21.42 45.33
Deferred Govt. Grants 2.00 -
TOTAL 141.03 175.74
Note 26. SHORT TERM PROVISIONS

TOTAL 5.47 4.87
Note 27. CURRENT TAX LIABILITIES

Provision for Income Tax (Net of Advance tax) 2.71 6.63
TOTAL 2.71 6.63
Note 28. OTHER OPERATING REVENUES

Insurance Charges Recovered 0.12 -
Excess Provision no longer required written back 15.10 0.61
TOTAL 41.35 23.07
Note 29. OTHER INCOME
Interest Income 52.93 34.00
Profit on sale of Fixed Assets 0.06 -
Profit on Sale/Fair value of Current investment 21.02 15.30
Government Subsidy - State Government 17.80
TOTAL 103.81 50.00
178 | JK Paper
Note 30. COST OF MATERIALS CONSUMED
Hardwood & Bamboo 591.10 545.45
Pulp 245.55 325.38
Chemicals 333.50 316.11
Packing Material 96.68 91.17
TOTAL 1266.83 1,278.11
Note 31. CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS

Inventories at the beginning of the year
Renewable Energy Certificates 0.01 -
85.34 131.42
Less:- Obsolete Inventory - (0.99)
Inventories at the end of the year
219.38 85.34
Less:- Transfer to Pre-Operative Expense - (0.78)
(Increase)/ Decrease in Stock TOTAL (134.04) 47.85
Note 32. EMPLOYEE BENEFIT EXPENSES

Salaries, Wages, Allowances, etc. 268.09 243.14
Staff Welfare Expenses 5.09 7.36
TOTAL 287.67 262.73
Note 33. FINANCE COST

Interest on:
Term Loan and Fixed Deposits 100.90 100.05
Others 16.43 12.75
Other Borrowing Costs:
Financial Charges 5.07 7.09
Premium on Forward Exchange Contracts 1.23 0.60
Lease rent on Machinery 3.04 -
Net (Gain) or Loss on Foreign Currency Transaction 2.63 3.91
TOTAL 129.30 124.40

Note 34. DEPRECIATION AND AMORTISATION EXPENSES
Depreciation on Property Plant & Equipment 145.69 127.45
Amortisation of Other Intangible Assets 3.79 0.23
TOTAL 149.48 127.68
Note 35. OTHER EXPENSES

Power, Fuel and Water 295.27 258.67
Repairs to Building 8.95 12.70
Repairs to Machinery 30.76 31.70
Rent (Net) 15.22 10.93
Insurance 3.73 3.96
Rates and Taxes 3.16 1.04
Commission on Sales 0.33 2.93
Directors' Fees 0.48 0.43
Directors' Commission 3.66 3.40
Loss on Foreign Exchange Fluctuation 3.49 1.77
Loss on Sale of Assets - 0.37
Asset Written off 4.08 0.74
Bad Debts 0.56 (0.09)
Less: Withdrawal from Provision for Doubtful Advance 0.25 0.31 (0.11) 0.02
Other Miscellaneous Expenses 108.05 110.16
TOTAL 537.18 498.37
Note 36. PRINCIPLES OF CONSOLIDATION:

a. The Consolidated Financial Statements comprise of the financial statements of JK Paper Limited (Parent Company) and the following
as on 31st March, 2020;
i Subsidiaries:
Proportion of Financial Statements Status
Name
ownership interest as on
Jaykaypur Infrastructure & Housing Limited, India 100% 31st March, 2020 Audited
Songadh Infrastructure & Housing Limited, India 100% 31st March, 2020 Audited
JK Enviro-Tech Limited, India 96.08% 31st March, 2020 Audited
The Sirpur Paper Mills Limited, India 96.27% 31st March, 2020 Audited
(Subsidiary of JK Enviro-Tech Limited, India)
JK Paper International (Singapore) Pte Limited, 100% 31st March, 2020 Audited
Singapore
ii Joint Venture:
Proportion of Financial Statements
Name Status
ownership interest as on
Habras MZZ Plantation Myanmar Company Limited, 50.00% 31st March, 2020 Audited
Myanmar*
*Joint venture of JK Paper International (Singapore) Pte Limited, Singapore.
b. The Financial Statements of the Parent Company and its Subsidiaries have been consolidated on a line by line basis by
adding together the book value of like items of Assets, Liabilities, Income and Expenses, after eliminating intra-group balances and
intra-group
180 | JK Paper

Note 36. PRINCIPLES OF CONSOLIDATION: (contd.)
transactions.
c. Goodwill represents difference between company’s share in net worth of subsidiaries and the cost of acquisition at each point of
time of making investment.
d. Investment in Joint Venture, are accounted for using equity method as per Indian Accounting Standard (Ind AS) 28 – “Accounting for
Investments in Associates and Joint Ventures” notified under Section 133 of the Companies Act, 2013, read together with paragraph
7 of the Companies (Accounts) Rule, 2014.
e. In case of foreign subsidiary, being non-integral operations, revenue items are consolidated at the average exchange rate during
the year. All assets and liabilities are translated at year end exchange rate. The resulting exchange differences are accumulated in the
Foreign Currency Translation Reserve.
f. The summary of share of Net Assets and Profit/(Loss) of Subsidiaries and Joint Venture:
H in crores (10 million)
Net Assets i.e Total Assets Share in Profit/(Loss)
minus Total Liabilities
Name of the Entity As % of Amount As % of Amount
Consolidated Consolidated
Net Assets Profit
Subsidiaries
Jaykaypur Infrastructure & Housing Limited, India 0.13% 3.15 0.38% 1.79
Songadh Infrastructure & Housing Limited, India 0.28% 6.61 0.04% 0.17
JK Enviro-Tech Limited 3.33% 78.75 -0.74% (3.49)
The Sirpur Paper Mills Limited, India 6.71% 158.63 -4.63% (21.67)
(Subsidiary of JK Enviro-Tech Limited, India)
JK Paper International (Singapore) Pte Limited, Singapore 1.04% 24.49 -0.01% (0.05)
Joint Venture
Habras MZZ Plantation Myanmar Company Limited, Myanmar (Joint 0.00% - 0.00% -
Venture of JK Paper International (Singapore) Pte Limited)
g. Other Notes to Accounts of the Financial Statements of the Company and its subsidiaries are stated in their respective Financial
Statements. Hence not disclosed again in Consolidated Accounts.
Note 37. SEGMENT REPORTING
The Company has identified business segment as the primary segment, after considering all the relevant factors. The Company’s
manufactured products are sold primarily within India hence there is no reportable geographical segment. The Company’s operation
predominantly relates to manufacture of Paper & Boards. Other Business Segment comprises activities for providing housing facilities to
the employees engaged in Paper & Board manufacturing business. These operations are insignificant in the context of total turnover;
hence same has been shown as “Others”.
For the year ended 31st March 2020 For the year ended 31st March 2019
S. Particulars
Paper & Others Total Paper & Others Total
No.
Board Board
A Segment Revenue
Revenue 3,055.30 19.70 3,075.00 3,256.71 5.52 3,262.23
Inter- segment Revenue - (14.81) (14.81) - (5.52) (5.52)
Income from Operations 3,055.30 4.89 3,060.19 3,256.71 - 3,256.71
B Segment Results
Segment Results ( PBIT excluding Exceptional 731.26 (9.38) 721.88 747.24 (6.80) 740.44
items)
182 | JK Paper
Note 37. SEGMENT REPORTING (contd.)
For the year ended 31st March 2020 For the year ended 31st March 2019
S.
Particulars Paper & Others Total Paper & Others Total
No.
Board Board
Less : (i) Interest & Financial Charges (Net) 129.30 124.40
(ii) Exceptional items - -
(iii) Other Un-allocable Expenditure (net - -
off Un-allocable Income) (103.81) (50.00)
Total Profit / ( Loss ) before Tax ( PBT ) 696.39 666.04
C Capital Employed
Segment Assets 4,917.87 372.58 5,290.45 4,210.95 311.15 4,522.10
Segment Liabilities 2,663.18 253.77 2,916.95 2,198.39 234.73 2,433.12
Total Capital Employed (net) 2,254.69 118.81 2,373.50 2,012.56 76.42 2,088.98
Capital Expenditure 619.09 3.52 622.61 92.25 4.11 96.36
Depreciation & Amortisation 147.87 1.61 149.48 126.11 1.57 127.68
Non Cash Expenses other than Depreciation - - - - - -
Note 38. CONTINGENT LIABILITIES & COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
Particulars
March 31, 2020 March 31, 2019
Contingent Liabilities:
a) Claim against the company not acknowledged as debts.#
Excise duty/ Custom duty/Service tax liability in respect of matter in appeals 18.86 19.32
Sales tax/ VAT/Octroi liability in respect of matter in appeals 2.21 0.97
Income tax liability that may arise in respect of matters in appeal referred by the 0.10 0.63
department
Other matters 7.44 8.03
b) Commitments:
Contracts remaining to be executed on capital account (Net of Advances) 993.61 110.48
Export commitments against import of capital goods under EPCG scheme - 49.95
# In respect of certain disallowances and additions made by the income tax authorities, appeals are pending before the appellate authorities
and adjustments , if any, will be made after the same are finally determined.
Note 39.
A. In respect of levy of Octroi pertaining to Unit - CPM by Songadh Group Gram Panchayat, the Company has paid H1.25 crores till 31st
March 1997 under protest and also created a liability of the similar amount. As the matter is still pending in the court of law, the
necessary adjustment, if any, would be made after its disposal.
B. The Audited GST return for the year ended 31st March, 2019 is pending for the filing as competent authority has extended the date
of filing till 30th September, 2020. The company is in process of reconciling the data of GSTR 2A with GSTR 3B. In view of the
management on final reconciliation the impact will not be material.
C. During the previous year, the Company has allotted 27,42,735 Equity Shares of H10/- each upon conversion of FCCBs Series-5 of Euro 2.4
million.
D. Acquisition in Subsidiary
1. A corporate insolvency resolution process (“CIRP”) under the Insolvency and Bankruptcy Code, 2016 was initiated against the
Company vide an order of the Hyderabad Bench of the National Company Law Tribunal (“NCLT”) dated September 18, 2017.
Subsequent to that, on July 19, 2018, the NCLT had approved the terms of the Resolution Plan submitted by JK Paper Limited
(“JKPL”), which provides, inter alia, the acquisition of the Company by JKPL.

Note 39 (contd.)
Pursuant to the Resolution Plan, H371.04 crores has been settled by the JKPL and JK Enviro-Tech Limited (JKETL), a subsidiary
of the JKPL, towards financial creditors, corporate insolvency resolution process cost, admitted operational creditors, workmen
and employee dues, etc. This consists of cash payment of H166.04 crores & issue of securities consisting equity shares of H43.00
crores and preference shares of H162.03 crores by the Company.
JK Paper Limited and its subsidiary JK Enviro-Tech Limited, together subscribed to 100% [except 70 shares of H700/- to
outsider] (Previous year 76.37%) of the equity share capital of The Sirpur Paper Mill Limited for an aggregate amount of
H182.00 crores (Previous year H139.00 crores). During the year 23.63% of equity share capital is acquired over a period October 2019
to December 2019 from the erstwhile lenders of the The Sirpur Paper Mill Limited for H43.00 crores through its subsidiary JK Enviro-
Tech Limited.
On approval of the Resolution Plan by the NCLT, all other liabilities or obligations of the Company, whether admitted or not,
due or contingent, crystallised or uncrystallised, known or unknown, secured or unsecured, disputed or undisputed, present or future,
whether or not set out in the balance sheets of the Company or the profit and loss account statements of the Company, in
relation to any period prior to the Completion Date was written off in full and shall stand permanently extinguished and the
Company shall at no point of time be, directly or indirectly, held responsible or liable in relation thereto.
Post implementation of the resolution plan, Net Effect of H137.93 crores (net off H12.48. crores write-off of receivables/ loans) is
credited to the Capital Reserve as stated in the Approved Resolution Plan.
Goodwill H9.81 crores represents difference between company’s share in net worth of subsidiaries and the cost of acquisition is
not amortised and tested for impairment.
2. JK Paper Limited subscribed to 96.08%(Previous year 92.85%) to Equity share capital of JK-Enviro Tech Limited on 26th Aug 2019
for an aggregate amount of H20.00 crores including security premium of H10.80/- [Per equity share].
E. During the year the Sirpur Paper Mills Limited has recognised government grant in terms of MoA entered with Government of
Telangana as under:
Particulars H in crores (10 Million)
Revenue 44.51
Capital Subsidy 50.00
In current year H17.80 crores (including Deferred Government Grant of H0.17 crores ) has been recognised in Statement of Profit and Loss
Account and H26.88 crores been adjusted with Property , Plant and Equipments. Deferred Government Grant income of H0.17 crores has
been recognised in Statement of Profit and Loss Account.
Note 40.1 EARNING PER SHARE

Particulars
March 31, 2020 March 31, 2019
a) Profit/ (loss) after tax for Basic Earnings Per share 468.41 424.94
Add: Interest on Foreign Currency Convertible Bonds ( FCCBs) (net of tax) - -0.33
Profit for Diluted Earnings Per Share 468.41 424.61
b) Weighted Average Number of Ordinary Shares
Basic 17,82,43,585 17,79,65,554
Effect of Conversion Option - 2,78,031
Diluted 17,82,43,585 17,82,43,585
c) Nominal Value of Ordinary Shares H10/- H10/-
d) Earning Per Ordinary Share (H)
Basic 26.28 23.88
Diluted 26.28 23.82
184 | JK Paper
Note 40.2 LEASES
The Company has adopted Ind AS 116 “Leases’’ effective 1st April ,2019 as notified by the Ministry of Corporate Affairs ( MCA) and applied
the Standard to its leases using the simplified approach. This has resulted in recognising right –of –use assets and corresponding lease
liabilities.
1 Refer Note 2 for changes in the carrying value of right of use assets for the year ended March 31, 2020:
2 The following is the break-up of current and non-current lease liabilities as at March 31, 2020
Current lease liabilities 11.88
Non-current lease liabilities 16.22
TOTAL 28.10
3 The following is the movement in lease liabilities during the year ended March 31, 2020:

Balance at the beginning 38.94
Finance cost accrued during the period 3.04
Payment of lease liabilities (13.88)
Balance at the end 28.10
4 The table below provides details regarding the contractual maturities of lease liabilities as at March 31, 2020 on an undiscounted basis:

Not later than one year 13.88
Later than one year and not later than five years 16.58
Later than five years 2.48
Note 40.3
The pandemic caused to COVID-19 disease impacted adversely the economy . It impacted every component of the business including
sales , liquidity , supply chain management and production. The Company has considered impact of present and future economic
conditions which may result from COVID-19 Pandemic while assessing carrying amount of Receivables, Inventory, Property Plant &
Equipment and Provisions, based on information available till the date of approval of these financial results.
In consequence to the above , the Company has carried out its year end exercise of physical verification of Inventories at some locations
subsequently on resumption of business operations.
Note 41. RELATED PARTY DISCLOSURES
a) List of Related Parties
i. Enterprise which holds more than 20% of Equity Share
Bengal & Assam Company Limited (BACL)
ii. Trust under common control
JK Paper Limited (JK Paper Mills) Compulsory Employees Provident
Fund JK Paper Limited Employees Gratuity Fund
JK Paper Limited Officers Superannuation Scheme
iii. Key Management Personnel (KMP)
Executive Directors Non-Executive Directors
Shri Harsh Pati Singhania, Vice Chairman & Managing Director Shri Bharat Hari Singhania, Chairman
Shri Om Prakash Goyal, Whole-time Director (till 30th Sep 2018) Shri Arun Bharat Ram
Shri Amar Singh Mehta, President and Director (w.e.f 1st Oct 2018) Shri Dhirendra Kumar

Executives
Shri V. Kumaraswamy, Chief Finance Officer Shri M.H.Dalmia
Shri S.C. Gupta, Vice President & Company Secretary Shri R.V.Kanoria
Shri Sandip Somany
Relative of KMP Shri Shailendra Swarup
Shri Shrivats Singhania, Vice President (Marketing Development) Shri Udayan Bose
Smt. Vinita Singhania
Shri Wim Wienk (till 12th November 2018)
Smt. Deepa Gopalan Wadhwa (w.e.f 27 Jun 2019)
Shri Sushil Kumar Roongta (w.e.f 12th February 2019)
b) The following transactions were carried out with related parties in the ordinary course of business and on arm’s length basis :
Enterprise which holds
Sl. more than 20% of Equity Share
Nature of Transactions
No BACL
2019-20 2018-19
(i) Interest Paid - 0.01
(ii) Rent Paid 0.07 0.06
(iii) Loans Given 30.00 145.00
(iv) Loan installment received 60.00 25.00
(v) Interest Received 12.79 3.11
(vi) Preference Shares Investment 65.00 -
(vii) Loan Repaid - 7.50
(viii) Outstanding at end of the period - Receivable 155.62 120.81
Trust under common

Sl. Nature of control
No Transactions Employees Employees Officers Superannuation
Provident Fund Gratuity Fund Scheme
2019-20 2018-19 2019-20 2018-19 2019-20 2018-19
(i) Contribution 4.49 3.91 6.03 4.14 0.65 0.64
(ii) Outstanding at end of 0.38 0.35 0.60 0.69 0.66 0.64
the period- Payable
Key Management Personnel (KMP) :
Sl.
No
(i) #Short-term Employee Benefits including honorarium 35.40 35.22
(ii) Commission and other benefits to Non-Executive Directors * 4.09 3.78
# The above said remuneration is excluding provision for Gratuity & Leave Encashment, where the actuarial valuation is done on overall
Company basis.
* Including sitting fees and commission.
186 | JK Paper
Note 42. FINANCIAL INSTRUMENTS
Financial Assets
Fair value
profit and loss
b) Investments :
(i) Equity and Preference Investment F Level-3 80.34 80.34 - -
(ii) In mutual funds and others B Level-1 382.64 382.64 646.24 646.24
other comprehensive income
Investment In Equity shares C Level-1 3.74 3.74 6.64 6.64
3 Financial assets designated at amortised cost
a) Other Bank Balances * 12.51 12.51 11.50 11.50
b) Cash & Cash Equivalents * 29.52 29.52 15.24 15.24
c) Trade receivables * 73.79 73.79 73.48 73.48
d) Other receivables * 118.25 118.25 168.27 168.27
e) Other financial assets 135.07 135.07 41.73 41.73
4 a) Investment in joint venture D 24.50 24.50 22.48 22.48
869.12 869.12 992.59 992.59
Fair value
1 Financial liability designated at fair value through
profit and loss
2 Financial liability designated at amortised cost

a) Borrowings E 1,544.75 1,544.75 1,305.38 1,305.38
b) Trade payables * 382.22 382.22 274.24 274.24
c) Other financial liability 439.88 439.88 416.46 416.46
2,369.80 2,369.80 1,999.56 1,999.56
The fair value of financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction
between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values.
A The fair values of derivatives are on MTM as per Bank.
B Company has opted to fair value its mutual fund investment through statement of Profit &
Loss. C Company has opted to fair value its quoted investments in equity share through OCI.
D Investment in Joint Venture, are accounted for using equity method.
E Company has adopted effective rate of interest for calculating Interest. This has been calculated as the weighted average of effective
interest rates calculated for each loan. In addition processing fees and transaction cost relating to each loan has also been considered for
calculating effective interest rate.
F Company has opted to fair value its unquoted investments in equity and preference share through Profit & Loss
* The carrying amounts are considered to be the same as their fair values due to short term nature.

Note 42. FINANCIAL INSTRUMENTS (contd.)
Fair value hierarchy
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
Note 43. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
43.1 Financial Risk Factors
The Company’s operational activities expose to various financial risks i.e. market risk, credit risk and risk of liquidity. The Company
realizes that risks are inherent and integral aspect of any business. The primary focus is to foresee the unpredictability of financial markets
and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange
risk & interest rate risk. The Company calculates and compares the alternative sources of funding by including cost of currency cover also.
Whenever, the currency cover costs are such as to neutralize the advantage in foreign currency, loans are hedged so as to not to
lose advantage. The Company uses derivative financial instruments to reduce foreign exchange risk exposures.
i. Credit Risk
The Company evaluates the customer credentials carefully from trade sources before appointment of any distributor and only
financially sound parties are appointed as distributors. The Company secures adequate deposits from its distributor and hence
risk of bad debt is limited. The credit outstanding is sought to be limited to the sum of advances/deposits and credit limit
determined by the company. The company have stop supply mechanism in place in case outstanding goes beyond agreed
limits.
ii. Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of fluctuation in
market prices. These comprise three types of risk i.e. currency rate , interest rate and other price related risks. Financial instruments
affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments. Foreign
currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign
exchange rates. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. Regular interaction with bankers, intermediaries and the market participants help us to mitigate
such risk.
a. Foreign Currency Risk and Sensitivity
The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to
reduce foreign exchange risk exposures and follows its risk management policies to mitigate the same. After taking cognisance
of the natural hedge, the company takes appropriate hedges to mitigate its risk resulting from fluctuations in foreign currency
exchange rate(s).
Particulars USD Euro GBP SEK SGD Total
Financial Assets
Cash and cash equivalents 0.02 - - - 0.00 * 0.02
Trade receivables - - 0.01 - - 0.01
Other financials assets ( including loans) - - - - - -
Financial liabilities-
Trade payables (35.88) (0.55) - (0.06) - (36.49)
Other financials liabilities 0.03 - - - - 0.03
Borrowings (89.97) (151.88) - - - (241.85)
Interest Accrued but not due (0.08) (0.17) - - - (0.25)
Net assets / (liabilities) (125.88) (152.60) 0.01 (0.06) 0.00 (278.53)
* H16,993/-
188 | JK Paper
2020
Particulars USD Euro GBP SEK SGD Total
Financial Assets
Cash and cash equivalents 0.01 - - - 0.04 0.05
Trade receivables 7.98 - 0.15 - - 8.13
Other financials assets ( including loans) - - - - - -
Trade payables (46.61) (0.86) (0.00)* (0.06) - (47.53)
Other financials liabilities 0.03 - - - - 0.03
Borrowings (107.92) (185.18) - - - (293.10)
Interest Accrued but not due (0.10) (0.21) - - - (0.31)
Net assets / (liabilities) (146.61) (186.25) 0.15 (0.06) 0.04 (332.73)
* H41,402/-
The following significant exchange rates have been applied during the year.
Year-end spot rate

INR
March 31, 2020 March 31, 2019
USD 75.39 69.17
EUR 83.05 77.70
GBP 93.08 90.48
SGD 52.96 51.22
Foreign Currency Sensitivity

Sensitivity analysis is computed based on the changes in the income and expenses in foreign currency upon conversion into functional
currency, due to exchange rate fluctuations between the previous reporting period and the current reporting period.
0.25% Increase and decrease in foreign exchanges rates will have the following impact on profit before tax:
2019-20 2018-19
Particulars
0.25% Increase 0.25% decrease 0.25% Increase 0.25% decrease
USD Sensitivity (CY H127/-) (0.00) 0.00 0.01 (0.01)
Euro Sensitivity (CY H17,136/-, PY H25,925/-) (0.00) 0.00 (0.00) 0.00
GBP Sensitivity (CY H298/-, PY H3,694/-) 0.00 (0.00) 0.00 (0.00)
SEK Sensitivity (CY H1,588/-, PY H1,588/-) (0.00) 0.00 (0.00) 0.00
Increases/ ( decrease ) in profit or loss (0.00) 0.00 0.01 (0.01)
Summary of Exchange difference accounted in Statement of Profit and loss:

Particulars
March 31, 2020 March 31, 2019
Currency fluctuations
Net foreign exchange ( gain)/ losses shown as operating expenses 3.48 1.77
Net foreign exchange ( gain)/ losses shown as Finance Cost 0.17 0.26
Derivatives - -
Currency forwards ( gain) / losses shown as operating expenses - -
Interest rate swaps ( gain) / losses shown as finance cost 2.46 3.65
TOTAL 6.11 5.68
186 | JK Paper
2020
b. Interest Rate Risk and Sensitivity

The Company’s exposure to the risk of changes in market interest rates relates primarily to long term debt. The Company has
entered into various interest rate swap contracts, in which it agrees to exchange, at specific intervals, the difference between
fixed and variable interest amounts calculated by reference to an agreed upon principal amount. Borrowings at variable rates
expose the Company to cash flow interest rate risk. With all other variables held constant, the following table demonstrates
composition of fixed and floating rate borrowing of the company and impact of floating rate borrowings on company’s
profitability.
Interest Rate Risk Exposure

Particulars
(I in crores) % of Total (I in crores) % of Total
Fixed Rate Borrowings 503.31 28.24% 574.96 39.76%
Variable Rate Borrowings 1,278.95 71.76% 871.09 60.24%
Total Borrowings 1,782.26 100.00% 1,446.05 100.00%
Sensitivity on variable rate borrowings
Impact on Profit & Loss Account Impact on Equity

Particulars As at March As at March As at March As at March
31, 31, 31, 31,
2020 2019 2020 2019
Interest Rate Increase by 0.25% (2.82) (1.27) (2.82) (1.27)
Interest Rate decrease by 0.25% 2.82 1.27 2.82 1.27
c. Commodity Price Risk and Sensitivity

The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company
has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations. The
Company manages fluctuations in raw material price through hedging in the form of advance procurement when the prices are
perceived to be low and also enters into advance buying contracts as strategic sourcing initiative in order to keep raw material and
prices under check cost of material hedged to the extent possible.
CREDIT RISK
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to
the credit risk at the reporting date is primarily from trade receivables amounting to H73.79 crores and H73.48 crores as of March
31, 2020 and March 31, 2019, respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers
primarily located in India. Credit risk has always been managed by the company through credit approvals, establishing credit limits
and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of
business. On account of adoption of Ind AS 109, the company uses expected credit loss model to assess the impairment loss or gain.
The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes
into account as per the Company’s historical experience for customers.
The following table gives details in respect of percentage of revenues generated from top customer and top five customers:
(In %)
Particulars
2020 2019
Revenue from top customer 4.49% 4.10%
Revenue from top five customers 15.11% 14.96%

2020
Credit risk exposure

The allowance for lifetime expected credit loss on customer balances for the year ended March 31, 2020 was H0.48 crores.
Particulars
2020 2019
Balance at the beginning 0.35 0.20
Additional provision created during the year 0.13 0.15
Balance at the end 0.48 0.35
The deposits with banks constitute mostly the liquid investment of the company and are generally not exposed to credit risk
Ageing Analysis of Trade Receivables

Not Due Up to Six Six to Above 12 Not Due Up to Six Six to Above 12
Particulars
and Not Months Twelve Months and Not Months Twelve Months
Impaired Months Impaired Months
Unsecured 21.65 52.08 0.06 0.48 49.60 23.88 - 0.35
Provision for Doubtful - - - 0.48 - - - 0.35
Receivables
Net Balance 21.65 52.08 0.06 - 49.60 23.88 - -
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The objective of liquidity
risk management is to maintain sufficient liquidity and to ensure funds are available for use as per the requirement. The company has
an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity
management requirements. The company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial
assets and liabilities. The company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The
company also has adequate credit facilities agreed with the banks to ensure that there is sufficient cash to meet all its normal
operating commitments in a timely and cost effective manner.

Particulars
Amount year Year
Trade payables 382.22 382.22 - - 382.22
Trade Deposits 67.69 - - 67.69 67.69
188 | JK Paper
2020

Particulars
Amount year Year
Trade payables 274.24 274.24 - - 274.24
Trade Deposits 56.38 - 0.27 56.11 56.38
43.2 Competition and Price risk

The Company faces competition from local and foreign competitors. Nevertheless, it believes that it has competitive advantage in
terms of high quality products and by continuously upgrading its expertise and range of products to meet the needs of its
customers.
43.3 Capital Risk Management
The Company’s policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain
future development. Capital includes issued capital, share premium and all other equity reserves attributable to equity holders. In
order to strengthen the capital base, the company may use appropriate means to enhance or reduce capital, as the case may be
As at As at
Particulars
March 31 2020 March 31 2019
Borrowings 1,782.25 1,562.58
Less: cash and cash equivalents including bank balance 42.03 26.74
Less: Current Investments 382.64 646.24
Net debt 1,357.58 889.60
Equity 2,365.49 2,038.10
Capital and Net debt 3,723.07 2,927.70
Gearing Ratio 36% 30%
Note 44. DERIVATIVE FINANCIAL INSTRUMENTS

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in
exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial institution. These
derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly
or indirectly observable in the marketplace.
Forward Contract outstanding for the purpose of hedging at the Balance Sheet Date
1 US Dollar 21.70 163.62 20.76 143.61
2 Euro 10.76 89.33 13.55 105.29
Nominal amounts of Complete Currency Swaps (CCS) for hedging entered into by the Company and outstanding at end of the year is
H27.38 crores (Previous year H32.94 crores).

Note 44. DERIVATIVE FINANCIAL INSTRUMENTS (contd.)
Foreign Currency Exposure not hedged as at the Balance Sheet Date.
1 US Dollar * 0.001 0.01 0.44 3.04
2 Euro 4.32 35.88 6.18 48.02
3 GBP * (0.001) (0.01) (0.02) (0.15)
4 SEK 0.09 0.06 0.09 0.06
*Net of Receivables USD Nil – H Nil (Previous year USD 1.15 Million – H7.98 crores ) and GBP 0.001 Million – H0.01 crores (Previous year GBP
0.02 Million – H0.15 crores).
Interest Rate Swaps
The Company has variable interest foreign currency borrowings. To offset the risk of variation in interest rates, the Company has entered
into, fix pay and variable receipt, interest rate swaps. These swap contracts are in US Dollar & Euro. Outstanding amortised notional
value of loan for swap contracts and MTM taken there on are as follows :
Sr. No. Foreign Currency Loan FC in Mn MTM H In crores Loan FC in Mn MTM H In crores
(Gain)/Loss (Gain)/Loss
1 US Dollar 7.17 (0.40) 9.56 (0.01)
2 Euro 14.99 0.93 19.60 0.68
The company is fully covered on interest rate fluctuation on foreign currency borrowing through interest rate swaps (IRS) and complete
currency swaps (CCS).
Note 45. INCOME TAX
a) Amount recognised in Statement of Profit and Loss
Current Income Tax
Current year * 217.79 145.12
MAT Credit Entitlement
Current year (1.66) (102.58)
Reversal of MAT credit entitlement of earlier years 1.93 3.29
TOTAL 218.06 45.83
Deferred Tax 9.92 195.27
Income tax expense reported in the statement of profit and loss 227.98 241.10
* Including H0.10 crores related to earlier years.

b) Reconciliation of Effective Tax Rate
Profit before tax 696.39 666.04
At applicable Statutory Income Tax Rate 34.944% 243.35 232.74
Tax Impact on:-
Benefit of 80IA (29.08) (38.63)
Donation 0.09 0.44
Differential Tax Rates of Subsidiaries 0.05 0.52
In House R&D Expenditure (0.84) (0.84)
CSR Expenditure 2.67 1.17
190 | JK Paper
Note 45. INCOME TAX (contd.)
Deferred Tax Asset not recognised on business losses and unabsorbed depreciation of The Sirpur 7.57 2.34
Paper Mills Limited
Others 4.17 43.36
Reported Income Tax Expense 227.98 241.10
Effective Tax Rate 32.74% 36.20%
Note 46. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

After the end of financial year, the Board of Directors of the company has approved the buyback of its Equity Shares at the maximum
buy back price of H130/- per equity share for an aggregate amount not exceeding H100 crores, from the open market through the stock
exchanges mechanism.
Note 47.
Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current year’s classification.
Note 48.
Notes 1 to 47 are annexed to and form an integral part of financial statements.
A. S. Mehta
(N.K. LODHA)
Partner

Consolidated Cash Flow Statement for the year ended March 31, 2020

2019-20 2018-19
A. CASH FLOW FROM OPERATING ACTIVITIES :
Net Profit before Tax 696.39 666.04
Adjustments for :
Depreciation and amortization 149.48 127.68
Defined Benefit Plans charged to OCI (2.82) (1.27)
Income from Investments (21.02) (15.30)
(Profit)/ Loss on Sale of Assets (Net) (0.06) 0.37
Dividend Income (0.06) (0.01)
Finance Cost 129.30 124.40
Interest Income (52.93) (34.00)
Foreign Exchange Fluctuation 3.49 1.77
Assets Written off 4.08 0.74
Bad Debts 0.31 0.02
Provision for earlier years no longer required (15.10) (0.61)
Foreign Currency Translation gain / (loss) on Consolidation 2.02 0.99
Operating Profit before Working Capital Changes 893.21 870.97
Adjustments for Working Capital Changes:
Trade and Other Receivables (191.59) (2.61)
Inventories (151.92) 47.96
Trade and Other Payables 138.34 102.23
Cash generated from Operations 688.04 1,018.55
Taxes paid (130.31) (139.69)
Net Cash from Operating Activities 557.73 878.86
B. CASH FLOW FROM INVESTING ACTIVITIES :
Purchase of Property Plant & Equipment (722.45) (647.26)
Sale of Property Plant & Equipment 1.91 173.97
Sale/(Purchase) of Investments (Net) 202.26 (510.33)
Interest Received 73.26 8.89
Net Loans and Advances 50.02 (149.55)
Acquisition of Subsidiary (Net of Cash) - 9.09
Net Cash from Investing Activities (394.94) (1,115.18)
C. CASH FLOW FROM FINANCING ACTIVITIES :
Proceeds of Long-term Borrowings 334.79 567.17
Repayment of Long-term Borrowings (261.68) (236.05)
Proceeds/(Repayment) from Short-term Borrowings (Net) 101.65 (57.99)
Repayment of lease obligation (10.84)
Interest and Financial Charges (130.78) (131.79)
Dividend (including Dividend Tax) (160.64) (53.65)
192 | JK Paper
Consolidated Cash Flow Statement for the year ended March 31, 2020

2019-20 2018-19
Proceeds/(Repayment) from Preference Share Capital 23.00 8.00
Proceeds/(Payment) from Issue of Share Capital to Non Controlling (43.00) 44.00
Interest Net cash from Financing Activities (147.50) 139.69
D. Increase/(Decrease) in Cash and Cash Equivalents - Cash & Bank
15.29 (96.63)
Balance
E. Cash and Cash Equivalents as at the beginning of the year - Cash &
26.74 123.37
Bank Balances (Note No. 11 & 12)
F. Cash and Cash Equivalents as at the close of the year - Cash & Bank
42.03 26.74
Balances (Note No. 11 & 12)
Notes :
2019-20 2018-19
Long Term Short Term Long Term Short Term
(a) Total Liabilities from Financing Activities
Opening 1,544.54 18.04 1,233.50 76.03
Cash Flow Changes
Inflow/(Repayments) 73.11 101.65 331.12 (57.99)
Non-Cash Flow Changes
Foreign Exchange 14.10 - (4.33) -
FCCB Conversion - - (15.46) -
Lease Liabilities 28.10 - - -
Other 2.71 - (0.29) -
Closing 1,662.56 119.69 1,544.54 18.04
(b) Previous year’s figures have been re-grouped / re-arranged wherever necessary.
A. S. Mehta
(N.K. LODHA)
Partner

NOTE
NOTES
NOTE
PRODUCT
A
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Forward-looking statement

In this Annual Report, we have disclosed forward-looking information

This year our Annual Report theme is 'Sustainability which is part

JKPM: JK Paper Mills

Central Pulp Mills (Unit CPM)

statement came to a standstill. In its April 2020

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Chairman cheaper imports, not only from our FTA

Managing the growth slowdown, the government also

Director's corporate tax rate was cut down to 25% for

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2007 2013 2018

11.1 14.9 20.6 21.97

(in x) (in x) (in H crores)

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1,322 1,646 2,041 2,368

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Manufacturing excellence 100

Distribution network Profitability

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Overview providers as well as from within the

Treasury income Working capital Cost management Receivables cycle

Economies of scale Capital cost per tonne Fit for purpose

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The expansion Expansion: Proposed packaging Location: Location proximate to

strengthened its financial standing stronger surpluses.

Short-term credit rating Long-term credit rating

2016-17 2017-18 2016-17 2017-18

2018-19 2019-20 2018-19 2019-20

Liquidity Receivables cycle

2016-17 2017-18 2018-19 2019-20 2016-17 2017-18 2018-19 2019-20

Annual Report 2019-20 |

41% 45% 37%

Clonal greater inducement to

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Sustainability and farmers

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Annual Report 2019-20 |

The increase in asset utilisation was corresponded by

Challenges and responses

There was increased competition from The

The plant scale was sub-optimal,

JKPM CPM SPM

Annual Report 2019-20 |

Unit CPM’s edge

2004-05 2009-10 2014-15 2019-20

Aggregate installed capacity of

Capacity utilisation Production

2016-17 2017-18 2018-19 2019-20

Annual Report 2019-20 |

How we strengthened our customer-centricity

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How JK Paper is creating a distinctive brand

JKPL’s social media footprint

Sanjay Kumar Dhanuka, Neeraj Khemka, Khemka Ashish Bhoot, SRTC –

Annual Report 2019-20 |

Challenges and mitigation

The recruitment of professionals in rural manufacturing