JK Annual Report 2018 - 19 PDF

Board of Directors
BHARAT HARI SINGHANIA Offices

Chairman Registered Office
P.O. Central Pulp Mills - 394 660
HARSH PATI SINGHANIA Fort Songadh
Vice Chairman & Managing Director Dist. Tapi (Gujarat)
ARUN BHARAT RAM Administrative Office

Nehru House,
DHIRENDRA KUMAR 4, Bahadur Shah Zafar Marg
M.H. DALMIA New Delhi - 110 002
R.V. KANORIA
SANDIP SOMANY
Bankers
State Bank of India
SHAILENDRA SWARUP Axis Bank
SK ROONGTA IDBI Bank
Indusind Bank
UDAYAN BOSE
Bank of Bahrain and Kuwait
VINITA SINGHANIA
A.S. MEHTA Company Website
President & Director www.jkpaper.com
Plants Auditors
JK Paper Mills (Unit JKPM) Lodha & Co.
Jaykaypur - 765 017 Chartered Accountants
Rayagada (Odisha)
Central Pulp Mills (Unit CPM)

SURESH CHANDER GUPTA
P. O. Central Pulp Mills - 394 660 Vice President & Company Secretary
Fort Songadh
Dist. Tapi (Gujarat)
CHAIRMAN’S STATEMENT
Fostering the spirit of entrepreneurship has enabled JK Paper to

be the 'change leader' in the Indian paper industry. The talent
pool at JK Paper would rank among the very best in the Indian
Paper Industry today.
T
he global economy a non-event. Although RBI tried to offset To improve quality of life of the rural poor
has witnessed major the liquidity deficit, most notably through in and around our mills, we are committed
setbacks over the last twin dollar swaps, they were not enough. to help them organise self-help groups
twelve months in the This was further aggravated by the (SHGs). Recognising the good work, banks
form of heightened likelihood of the Government overshooting are coming forward with loans to build
risks of US-China trade the fiscal deficit target. Elevated oil prices confidence of SHGs and help them scale
war, a delayed Brexit, were a further drag. their income-generating activities. We have
renewed US sanctions on Iran, escalating oil adopted the Industrial Training Institute
On the business reforms front, the year
prices, and tightening financial conditions. (ITI), Ukai, Gujarat, under the PPP route,
gone by witnessed the stabilisation of GST
Global growth, which was earlier projected also undertake continuous upgradation
regime that could generate efficiencies
at almost 4%, has now been scaled down and provide training in line with industry
throughout the value chain. The IBC also
to only 3.3% this year and the next. requirements. Over thousands of students
put to bed the worst of the NPA crisis,
Although India remains one of fastest have been trained in various trades.
as both recoveries as well resumption in
growing major economies, and also the operations, some in the hands of new The farm forestry development program,
fastest to grow in the last decade following management took place. Your Company started in 1991, has created employment
the global financial crisis of 2008, the was able to successfully take over the and livelihood opportunities for a
growth momentum has eased. Growth has operations of Sirpur Paper Mills. significant number of people and the
come down to 6.8% from 7.2%, and is likely Company also sources its raw material
Your Company still managed to produce
to grow at 7% in 2019-20. requirement from farm forestry on low-
its best ever performance amidst such a
Better prices due to GST had helped productive land.
scenario, with highest ever sales volumes
maintain consumption growth, especially of over 5 Lac tonnes. We also managed full We believe that tomorrow belongs to those
for necessities. But inflation control capacity utilisation compared to the overall who prepare for it today. Past patterns
measures led to agrarian distress, leading to manufacturing sector running at a capacity cannot always be applied to find answers
a moderation in consumption spending on utilisation of 75%. for tomorrow. That is why we have to
declining rural incomes. The rural economy be flexible in our approach to maintain
At JK Paper, we have always believed
that is badly hit by the agrarian crisis could the Company's leadership in the market.
that true leadership is about developing
receive a further jolt from a less-than- Your continued support has enabled us
leaders at all levels. Because it is they with
normal monsoon this year. Urban demand to progress this far and look forward to
their passion, initiative and teamwork
too was affected by liquidity constraints continuing this journey and achieving
who anticipate change and lead their
and tighter financial conditions. Recovery greater heights together.
Company towards higher goals. Extensive
remains elusive, inspite of the general
investments were made in people and
elections throwing up a stable government.
people practices. Fostering the spirit of
While reining in inflation provided entrepreneurship has enabled JK Paper to
headroom to RBI to lower policy rates, be the 'change leader' in the Indian paper
the limited availability of liquidity after industry. The talent pool at JK Paper would
the NBFC crisis in the second half of last rank among the very best in the Indian
year led to an unsavoury outcome of high paper industry today.
interest rates, making RBI’s rate cuts almost Bharat Hari Singhania
02 | JK Paper Ltd.
VICE CHAIRMAN & MANAGING DIRECTOR’S STATEMENT
India’s status as a growth leader amongst the travails in the global

economy is commendable alongside the big strides it has taken in
its quest to improve the ease of doing business in the country. This
is evident in India’s ascent of 65 places to 77th in World Bank’s Ease
of Doing Business (EoDB) 2019 survey from 142nd in 2014. Besides,
there has been a greater thrust on improving infrastructure to
improve connectivity (to the last mile) and bring down high logistics
costs by leveraging roads, railways and waterways.
I
mpetus seems to and impacted future lending rates. This sourced from shorter distances, reducing
be lost in the overall was further accentuated by a persistent the overall delivered costs at the mills. We
growth paradigm. While liquidity deficit in the banking system, also managed to reduce our pulp usage
GDP growth of 7% is keeping lending rates elevated. But JK Paper through a reduction in fibre loss, besides
still high even amongst managed to bring down its finance cost bringing down bamboo usage in phases to
emerging market peers, significantly through lower leverage and improve pulp quality. This led to a notable
including China, it does efficient working capital. Besides a rating improvement in EBITDA margins.
not resonate with the other indicators on upgrade of the Company helped. The deployment of resource conservation
the ground. Despite the bottlenecks of overall demand measures, low water-use technology and
At the same time, India’s relatively better softness in the economy and pressure increasing use of treated effluent water also
growth is likely to have unwanted on the costs front, JK Paper managed to led to a big improvement in operational
repercussions on the trade front. The lure generate sales revenues that doubled parameters, leading to efficiency gains.
of the Indian market for imports, which is over the last 5-6 years. This was owing This has also reinforced our standing as
already incentivised by the existing FTAs to improved market conditions in paper, a responsible paper manufacturer, with
with ASEAN, Japan & Korea, would grow especially the demand for packaging paper. the Company managing to reach all-time
manifold post the RCEP deal. China too will This is expected to increase on the back of lows in terms water, power and coal
get access to the duty benefits that will a rapid expansion of the express delivery consumption, besides reducing effluent
be phased out over time, with impending business of e-commerce, along with generation per tonne of paper (TPA).
pains for Indian manufacturing. At the increasing penetration of organised retail, At JK Paper, it has been a saga of continuous
same time, we are unable to take up export higher growth in FMCG, pharmaceutical process development with an eye on the
opportunities thrown open by the US-China and processed food industries. This was customer, whether it the most modern
trade war, as we are yet to match our Asian further reinforced by rising consumer pulp mill or an automatic cut-size line for
peers in competitiveness. The lack of a consciousness regarding sustainable branded products. The Company remained
level playing field, both from FTAs as well packaging, along with strict regulations focused on R&D activities and conducted
as regulatory bottlenecks, undermines our regarding the use of environment-friendly various trials on the shop floor to upgrade
competitiveness and limits our pricing packaging products. the existing product quality to meet
power. To mitigate raw material scarcity, JK Paper customer perception, quality and product
JK Paper has attempted to overcome focused on developing high-yielding leadership.
this challenge by differentiating itself on saplings with shorter maturity periods. We have been fortunate enough to have
the back of its customer-centric last-mile The Company’s growing investment in the strong support of all stakeholders,
approach. With the huge headroom farm forestry initiatives in Odisha, Andhra right from customers, suppliers, banks and
for growth available in the country, we Pradesh, Chhattisgarh, Gujarat and shareholders. On behalf of the JK Paper
strengthened efforts to expand the Maharashtra, covering an area of 1.6 lac team, I assure you that your Company will
geographical reach and availability of our hectares, ensures round-the-year access continue to put its best efforts and remain
products. Foraying into direct retailer and to raw materials. Furthermore, a new pulp committed to ensure sustained returns to
customer servicing during the fiscal gone mill is being set up at Unit - CPM to cater to its stakeholders.
by was a decisive step in this regard. increasing requirements.
While there is some improvement in The continued thrust on plantation activity
recovery of NPAs over the past fiscal year, in the vicinity of its plants continues to
the reduction in NPAs was through writing bear fruit, with a greater proportion of the
Harsh Pati Singhania
off loans, which hurt banks’ profitability requirement being met out of material
Annual Report 2018-19 | 03

Reinventing
the last mile
04 | JK Paper Ltd.
For decades, JK Paper
marketed paper in much
the same way.
By engaging with its trade
partners in a conventional
manner.
In the last couple of
years, the Company set
about transforming this
approach.
The Company reinvented
its engagement across the
last mile.
This approach has
strengthened the The Company
reinvented its
Company’s position as one engagement
of the most exciting paper across the last
mile.
companies in India.

10 Ethos
Vision
To be a dynamic
benchmark and leader
things you need
to know about
our Company
Mission
To be a world-class company, creating shareholder value by achieving growth and
leadership through:
in the Indian paper JK brand equity
industry Customer obsession
Technological innovation
Cost-competitiveness
Environmental and social care
Promoter
The Company is a part of the prominent JK Organisation, which is over 100 years
old and one of the leading business conglomerates of India. The group enjoys
a significant presence in the manufacture of automotive tyres, cement, power
transmission, V-belts, oil seals, hybrid seeds, dairy products, textiles, health care,
education and clinical research besides paper. JK Organisation employs over
40,000 employees.
Products
The Company’s diverse product portfolio (office paper, packaging board, writing and printing paper and specialty paper, among others) is
synonymous with high quality leading to superior applications. The Company's pulp and paper manufacturing operations are integrated.
Brands Leadership
The Company has a diversified product portfolio and under JK Paper is one of the largest wood-based paper companies
each segment there are some established brands, which are in India. The Company established its position as a leader
the main revenue generators for the Company, namely – in the branded copier paper segment and high-end
JK Copier, JK Evervite, JK Sparke, JK Bond, JK SS Maplitho (SHB), packaging board segments and is one of the two leading
JK Cote, JK Ultima and JK Endure, among others. players in the coated paper.
06 | JK Paper Ltd.
Facilities
The Company’s state-of-the-art integrated
manufacturing facilities are located in Rayagada
(Odisha) and Songadh (Gujarat). The Company
acquired a plant at Sirpur (Telangana) in 2018-19,
which is expected to commence commercial
production. Unit JKPM, Odisha, manufactures
copier, coated and maplitho paper varieties; Unit
CPM, Gujarat, manufactures packaging board,
copier, maplitho and a variety of specialty papers.
Capacity Footprint
The Company's capacity was The Company’s pan-Indian
4.55 Lac TPA by the close distribution network comprises
of 2018-19. The Company 229 trade partners, more than 4000
produced 4.95 Lac tonnes
dealers, 18 depots and four regional
of paper, packaging board
marketing offices. The Company
and pulp in 2018-19. The
Company's aggregate exports products to around 62
capacity following the Sirpur countries (including the US, the UK,
Paper acquisition stood at Sri Lanka, Bangladesh, Singapore,
5.91 Lac tonnes. Malaysia, Africa and Middle East).
SYSTEM
EMENT
Certifications
ND-RvA
07-AQ-I
MANAG ATE
2016
te No: 5608-20 , 09, March,
Certifica
date: Chennai
Place and
IC
CERTIF Initial certificat
ion date:
Valid:
12, March,
2016 - 15,
Septemb
er, 2018
Append
ix to Cer
tificate
1998 Mills :
12, March, - JK Paper as follows
e No: Ltd. Unit ation are Site Scope
Certificat -RvA JK Paper in the certific
system of included Marketing
The Company has been accredited with

7-AQ-IND s
5608-200
gement Locations Site Addres House, 4,
the mana Nehru pulp,
certify that Site Name Head office: Zafar Marg, cture of
This is to JK Paper
Ltd. Bhadur Shah110 002, India
-
ment & manufa
Design, developard & related
products
Paper Mills New Delhi
Unit - JK paper, paperbo
Ltd.
017,
ur - 765
JK Paper
Works: Jaykayp
da, Odisha,
India
Dist. Rayaga
s Odisha, Indiathis certificate
Ltd.
Paper Mill
JK Paper
Paper Mills
ISO 9001:2008, ISO 14001:2004 and OHSAS

Rayagada, Unit - JK
Unit - JK ypur - 765
017, Dist.
the appen
dix accom
panying
Works: Jayka as mentioned in
m standard:
and the sites nt Syste
y Manageme
to the Qualit
conform
found to
has been 08
18001:2007 certifications, validating its quality,

1:20
ISO 900 d & relate
d
:
ing scope r, paperboar
for the follow re of pulp, pape
cate is valid & manufactu
This certifi ent
developm
Design,
products
environment and employee health and safety

commitment respectively. The Company is
Place and
date:
i, 09, March,
2016
For the issuing
DNV GL
ROMA, No.
Chenna
office:
– Busines
10, GST
i - 600 016,
s Assuran
India
ce
Road, Alandur
,
FSC-certified, endorsing its responsibility
towards forestry policies and practices.
Chenna
h
an Madiyat tative
Sivadas
ent Represen
Managem
.dnvgl.com
. assurance of 1
. invalid. 02922689 Page 1
invalid. 02922689 TEL:+311
this Certificate NDS. TEL:+311 this CertificateNETHERLANDS.
t may render ECHT, NETHERLA t may render ECHT,
n Agreemen 2994 LB, BARENDR on Agreemen1, 2994 LB, BARENDR
in the Certificatio EG 1, in the Certificati EG
as set out B.V., ZWOLSEW as set out B.V., ZWOLSEW
of conditions Assurance of conditionsBusiness Assurance
Lack of fulfilment DNV GL
Business Lack of fulfilment
ED UNIT:
DNV GL
ED UNIT: ACCREDIT
ACCREDIT
.dnvgl.com
assurance
Plantation management
The Company’s farm forestry within a
200 kms radius of its manufacturing
plants covered over 160,000 hectares
cumulatively and more than 5,000
farmers in 2018-19, accounting for a
major portion of the Company’s raw
material procurement. The Company
helped plant eucalyptus, casuarina
and subabul clones / saplings. The
Company is net wood and carbon-
positive; it plants more trees than it
harvests for paper manufacture.

1938 1962 1992
Commenced Installed the first fine Acquired Unit –
manufacturing straw paper machine at Unit – CPM (Gujarat).
boards in Bhopal with a JKPM (Odisha).
capacity of 3,600 TPA.
Milestones
Our (H Cr) (%) (%)
financial
2881 2989 3070 3469 15.7 19.5 22.2 28.4 7.6 11.1 14.9 20.6
numbers
over the
years
FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19
Revenues EBITDA margin RoCE
Performance Performance Performance
Aggregate sales increased by The Company reported a 620 The Company made a prudent
13% to H3469.19 Cr in 2018-19 basis points (bps) increase in investment in profitable niches
due to increasing demand and EBITDA margin in 2018-19 and value-added products,
improved footprint. through a superior product basket strengthening returns for
comprising value-added products shareholders.
and improved operating efficiency.
08 | JK Paper Ltd.
2005 2007 2013 2018
Commissioned a Commissioned a Commissioned a state- Acquired Sirpur Paper
coating plant at Unit – premium packaging of-the-art new fibre line Mills in Telangana with a
JKPM (Odisha). board plant at Unit – and high-speed paper capacity of 1,36,000 TPA.
CPM (Gujarat). manufacturing machine
at Unit – JKPM (Odisha)
with a capacity of
1,65,000 TPA.
(X)
1.68 1.08 0.64 0.34

Awards
FY16 FY17 FY18 FY19 Over the years, the Company has been bestowed with a number
Debt-equity ratio of awards comprising the ‘Water Efficient’ award in 2017,
Performance ‘Greentech Environment Gold’ award in 2015 to ‘HR Leader and
The Company’s gearing Talent Acquisition’ award in 2017 and Certificate of Honour and
moderated from 1.68 in Certificate of Appreciation at the Gujarat State Safety Awards in
2015-16 to 0.34 in 2018-19 as 2013 and 2015, among others.
the Company utilised surpluses
to repay debt.

Acquisition
How the Sirpur Paper Mills

acquisition is expected to
strengthen JK Paper’s market
presence
10 | JK Paper Ltd.
Background
JK Paper acquired Sirpur Paper for H371 Cr in In this strengthening environment, Sirpur
2018-19. Paper, one of India’s oldest and most respected
paper mills, acquired a large pre-used paper
The rationale for this acquisition needs to be
machine that was subsequently redesigned. This
explained against the backdrop of the extensive
redesigned facility could not stabilise production
investments made in the Indian paper industry in
across its expanded capacity, reported sub-
the span of five years starting 2008.
optimal utilisation, failed to cover fixed costs and
This aggressive investment phase virtually eventually eroded the Company's net worth.
transformed the competitiveness of India’s paper However, the Company's pulp mill (108,000 TPA)
sector. The size and scale of paper machines rose with sophisticated Andritz technology possessed
from around 35,000 TPA to1,50,000 TPA, machine viable fundamentals but could not achieve its
speeds accelerated from around 400 metres per desired potential due to the downstream paper
minute to 1,000 metres per minute, boiler pressure manufacturing facility not being able to stabilise
upgraded from 32 bars to 65 bars and there was a operations.
better availability of wood resources closer to the
The Company ceased operations in 2014.
factories, strengthening logistical economies.
The acquisition
The acquisition
JK Paper acquired Sirpur Paper to capitalise river Godavari in the vicinity.
on long-standing intangible advantages of
provided access
Three, the acquisition provided access to to abundant coal
the acquired company and for fast-tracking its
abundant coal from Singareni Collieries, only
investment, given that it is time-consuming and from Singareni
about 40 kms away.
expensive to commission a greenfield paper Collieries, only
manufacturing facility. Four, the acquisition provided access to a robust about 40 kms
logistical network - highways not more than
The Company was acquired for five principal away.
14 kms away and being upgraded from undivided
reasons.
two lanes to divided four lanes.
One, the acquired company possessed access
Five, the proximate catchment area is virtually
to ample land for future expansion, a prized
devoid of organised plantations, representing an
availability of industrial infrastructure difficult to
excellent resource-enhancing opportunity.
replicate with speed and convenience in present-
day India. We believe that the convergence of these realities
represents a fast-tracked option to widen one's
Two, the acquisition came with abundant water
presence in India's paper industry.
availability with river Peddavagu, a tributary to

At JK Paper, we
believe that
the successful
acquisition and
turnaround of
Sirpur Paper will
strengthen our
position as one
of India's most
exciting paper
company.
Sirpur Paper Mills
12 | JK Paper Ltd.
Strengthening manufacturing infrastructure
At JK Paper, we recognised that the production The acquired operations are expected to be
infrastructure of the acquired company commercialised from the first quarter of 2019-20.
would need to be modified and upgraded to The full result of these improvements is expected
bring it to acceptable quality, productivity and to manifest from the second half of 2020-21.
profitability. By then, the scaled operations are expected to
enhance operating EBITDA margins.
As a first step towards the restructuring, the
Company plans to shut four of the eight The Company believes that the acquisition
acquired machines and enhance throughput at H371 Cr represents a reasonable price with
of the remaining paper machines. Following a good long-term potential for expansion and
reasonable investment, the Company plans to growth. Besides, a greenfield facility would have
enhance the average production capacity consumed at least 40 months from scratch to
of the four retained machines to 1,36,000 commission, including all clearances whereas this
tonnes per annum by various measures of acquisition was actioned in 12 months. We believe
debottlenecking, higher speed and productivity. that the preponed revenues and profits justifies
The Company is also investing in a new power the acquisition, improving overall payback and
boiler and turbine. competitiveness.
Plugging the gap

At JK Paper, we believe that the successful When in operation, Sirpur’s products were
acquisition and turnaround of Sirpur Paper will marketed across India through a network of six
strengthen our position as one of India's most depots feeding more than 50 wholesalers in 33
exciting paper companies. cities in addition to sales in Sri Lanka, Bangladesh,
From two locations, the addition of Sirpur Paper Nepal, Malaysia and Singapore.
will add another resource-rich location to the The unit’s product mix comprised writing &
portfolio taking the number to three locations. printing paper; creamwove and maplitho paper;
The complement of three paper manufacturing ledger, bank and account book paper; speciality
locations will enable JK Paper to service a large grade paper bond, parchment, airmail, manila and
addressable market in general and south India in pastel paper; base for coated paper; duplex and
particular. triplex board; laminating grade kraft.
The revival
The acquisition will empower JK Paper to This capability provides JK Paper with a wide of the closed
capitalise on the rich and multi-decade 'Sirpur' portfolio through which to engage with Sirpur facility
brand (established 1938). customers. has already
strengthened
the local social
fabric, reflected in
Driving the local economy
a stronger work
At JK Paper, we are optimistic that the acquisition We believe that our purchase of products ethic and moral
will not just enhance shareholder value but also and services will set into motion a larger local discipline.
drive the rural economy. economic impact, enhancing regional prosperity.
Fundamentally, the revival of this manufacturing More than the numerical impact, we believe
facility is expected to recharge the local economy that the revival of this closed facility has already
by more than H300 Cr each year through the strengthened the local social fabric, reflected in a
employment of about 2000 individuals, large stronger work ethic and moral discipline.
procurement of wood produce and use of local
services.

How we reinvented
the last mile presence
14 | JK Paper Ltd.
Overview
For decades, the Indian paper and packaging It was a challenge for the Company to reach
board industry followed a distribution system out to the customers and get honest and
with the manufacturing company at one end valuable marketplace feedback of consumer
and distributors at the other. purchase patterns and requirements.
Need
As a future-focused company, JK Paper development. Besides, the Company was
recognised the need to extend its presence convinced that this extension would make it
to retailers and access consumers. The possible to address the needs of smaller buyers
Company’s strategic extension to retail was generally overlooked by the conventional
dictated by a priority to seed the market with distribution architecture.
new value-added products and create new
The extension was challenging for various
markets as opposed to routinely servicing
reasons: the challenges were unknown,
the existing. The Company was convinced
the Company did not possess relevant
that a reinvention of its presence at the last
experience, the complexities of distribution
mile would strengthen its brand, empower
were completely different and there were no
it to comprehend consumer needs deeper
contemporary models of how manufacturers
and create a basis for informed product
retailed products.
Preparedness Following green

shoots of success,
JK Paper pressed ahead after extensive The Company invested in a team to address the Company
preparedness. product dispatch through its existing trade plans to extend
The Company engaged in extensive market partners. its coverage
research to identify prospective customers and
across more than
The Company made a selective launch of this
30 cities
target audiences. service and a road map to service the entire
The Company engaged in responsible country across the foreseeable future.
recruitment comprising informed and trained
sales professionals.
Outcome
The Company is fully convinced that change is inevitable and will facilitate wholesale distribution and
direct retailer access, making it possible for both to co-exist.

Strengthened
our resource security
16 | JK Paper Ltd.
Overview
India’s irony is that even though it is the largest for manufacturers to import pulp, affecting
agricultural country across the world with the resource security.
highest new cropped area, it is wood fibre-
In the past, JK Paper sustained growing mill
deficient.
operations through long-distance wood
Besides, even as downstream paper consumption purchases from as far as 1200 kms. This increased
is increasing, the Indian government does not logistics costs, resource insecurity in view of
permit industrial plantations, making it imperative erratic material availability and carbon footprint.
Challenges and responses

Resource security is a challenge owing to the To make up for low wastepaper recovery (~30%)
non-availability of industrial plantation permits due to inefficient collection, low availability of
in India. To mitigate this long-standing risk, the quality raw material at competitive costs and
Company focused on farm forestry, relevant counter rising resource imports, the Central
manufacturing infrastructure and switch in raw Government drafted a new National Forest Policy,
material from bamboo to hardwood. permitting the corporate sector to grow, harvest
and market trees on government-owned lands.
Decisive restructuring
As a future-focused manufacturer, the Company a buyback assurance. The Company introduced
embarked on a decisive restructuring of its farmers to modern-day farm forestry practices,
resource procurement model. A decade ago, enhancing productivity per hectare. The
the Company began to invest in the long-term Company’s farm forestry initiative offered farmers As a future-
development of plantations in the vicinity of the prospect of sustainable livelihoods and focused
its mills. The Company motivated and assisted equitable realisations; the Company benefited manufacturer,
farmers within a radius of 200 kms from its through round-the-year raw material security and the Company
manufacturing facilities to plant hardwood price stability. embarked
species (eucalyptus, subabul and casuarina) with on a decisive
restructuring
of its resource
procurement
Successful showcase model.
What started as a tentative experiment through Odisha and Andhra Pradesh), benefited more
the complement of purchase assurance, seed than 50,000 farmers, increased the proportion
support and agricultural supervision has now of the Company’s resource procurement from
transformed into one of the most successful within 200 kms and not only helped recharge
plantation initiatives undertaken within India’s India’s rural economy through procurement but
paper industry. The exercise has extended also increased green cover by enhancing Trees
across more than 1,60,000 hectares, extended to Outside of Forest (TOF).
five states (Gujarat, Maharashtra, Chhattisgarh,

How JK Paper has Carbon-positive
transformed
itself over the years The result of this engagement has also had The result is that following the successful
a larger impact. Over the last few years, the demonstration of the vast potential of this
49 % Proportion of raw Company has transformed to wood- and plantation initiative, farmers have agreed
material procured carbon-positive status, planting more trees to allocate a larger farm area for wood
from local catchment than utilising. The Company developed plantations, enhancing rural prosperity.
of the Company’s short-rotation clones (two to three years)
plants, 2016-17 to enhance yields and income per hectare.
71 % Proportion of raw
material procured
from local catchment Highlights, 2018-19
of the Company’s
plants, 2017-18 In 2018-19, the Company distributed principal beneficiaries of the Company’s
more than 40 million saplings across more growth.
than 5,000 farmers. As an environmentally
The Company planted 414 Lac trees in
96 % Proportion of raw responsible manufacturer, the Company

2018-19, and has a plantation footprint of
material procured moderated wastewater discharge, reduced
more than 1,60,000 hectares cumulatively,
from local catchment freshwater consumption and moderated
strengthening its prospective resource
of the Company’s effluent generation per tonne of paper.
plants, 2018-19 security.
The Company increased the proportion
The Company helped enhance yield per
of raw material procured from local
hectare on farmer holdings through the
catchments local to its manufacturing
use of superior and early maturing clones.
facilities from 41% in 2015-16 to 96%
during 2018-19, making local farmers the
How JK Paper has enriched the lives of farmers
“I am now asking my fellow

villagers to undertake
eucalyptus plantations and
change their lives too.”
“I had 1.6 hectares of fallow land in 2014 when JKPM burra
babus encouraged me to undertake eucalyptus plantation.
‘This will be a life-changer for you’, they had said. After five
years, when I harvested for the first time, I earned H360,000
after deducting harvesting expenses. I was now able to afford
a pucca house for my family. I am now advising my fellow
villagers to plant eucalyptus and transform their lives as well.”
Baidahi Nayak, Sanabadigaon village, Odisha
18 | JK Paper Ltd.
R&D activities
The Company developed and introduced a it conducted progeny trials at Unit CPM and
new eucalyptus clone (CPM U283 turbo) with Unit JKPM with the objective to generate
wood productivity of 50-65 cubic metres per higher pulp yield and superior wood
hectare per year (under irrigated conditions) productivity.
and a high bleached pulp yield across a two-to- The Company installed an electric sample seed
three-year rotation cycle. scarifier to increase subabul germination and
The Company developed a hybrid of Leucaena survival.
leucocephala and Leucaena collinsii, resistant The Company established a gene bank-cum-
to psyllid pests and offering a higher wood progeny trial facility at Unit JKPM for the The Company
productivity. conservation of germplasm that could assist in has focused on
The Company developed 10 hybrids of prospective R&D programmes. the development
Eucalyptus urophylla and Eucalyptus globulus; of shorter
gestation clones
of two to three
years.
Outlook
The Company works with responsible and The Company has focused on the development
progressive resource suppliers and is continuously of shorter gestation clones of two to three years.
engaged in a comprehensive evaluation of their It developed four high-productive, disease-
resource quality, delivery compliance, technology resistant eucalyptus clones with corresponding
absorption and product consistency, among multi-locational trials likely to begin in 2019-20 for
others. commercial introduction in 2020-21.
“I am advising other farmers

to undertake large-scale
subabul plantations to
maximise their incomes.”
“Until 2015, I had 2.5 hectares under cotton cultivation. JK
Paper motivated me to plant subabul with high-yielding
saplings that they provided. When I harvested in 2019, I earned
H990,000. The fertility of my land improved. I am advising
other farmers to undertake large-scale subabul plantation to
minimise risks and maximise incomes.”
Jayesh Shashikand Josh, Harsunda, Gujarat

Strengthening a culture
of manufacturing excellence
20 | JK Paper Ltd.
Overview
India’s pulp and paper industry is marked by a Over the years, the Company's inspired shopfloors
high capital cost that makes it imperative for have translated into superior manufacturing
manufacturing facilities to be operated at a high productivity from the given infrastructure (more
capacity utilisation with the objective to generate out of less), superior and consistent product
superior efficiencies and amortise fixed costs quality, stronger consumption efficiency and
more effectively. lower downtime.
Besides, the large number of operational variables JK Paper’s manufacturing facilities – Unit JKPM in
has made it imperative to invest in an overarching Odisha and Unit CPM in Gujarat – possessed an
culture of manufacturing excellence. This culture aggregate capacity of 4.55 lac tonnes of paper
emphasises continuous improvement, passion- in 2018-19. These plants delivered an average
driven shopfloor motivation, high sense of team capacity utilisation of 108.7% during the year
work and extensive supervision with the objective under review.
to correct deviations with speed.
Strengths
Unit - JKPM Unit - CPM
Invested with state-of-the-art technology, In-house engineering capability helps de-
upgraded periodically. bottleneck manufacturing lines at a 35% lower
Arguably the lowest-cost paper manufacturing cost than OEMs.
facility in India. Continuous engagement in cost optimisation.
~65% of the power appetite addressed with Paper machine reported ~123.5% capacity High on-time
renewable energy utilisation. in-full score
Raw material requirements sourced from local The Company
catchment areas near manufacturing units. reported an on-
time in-full score
of ~88% in
2018-19,
validating the
Company’s ability
Challenges and responses to completely
deliver products
The Indian paper sector is challenged across a The Company used ~65% imported pulp for the on schedule.
number of fronts. manufacture of packaging board. The rising cost
of pulp is likely to be countered through the
Water costs for the Indian paper industry averages
commissioning of a new pulp mill, enhancing
~H32 per cubic metre, rising at 10% y-o-y. The
pulp security.
Company moderated power costs (coal and
steam) to counter the impact of rising water costs.

Highlights, 2018-19
Unit - JKPM Unit - CPM
Increased pulp production by 2% to 2.24 Lac Increased pulp production by 7% BDMT.
Bone Dry Metric Tonnes (BDMT).
Increased paper production by 6% in 2018-19.
Increased paper production by 1% to 3.04 Lac
Increased packaging board production by 9%.
tonnes.
Moderated steam, water and coal
The JKPM unit Improved raw material yield.
consumption.
edge Started recovering methanol and using it in
Debottlenecked capacities, strengthening
The strategic lime kilns to halve furnace oil consumption.
throughput.
location of Unit - Became one of the earlier paper companies in
Substituted ~21% pulp requirement with fillers,
JKPM empowers the country to commission a methanol plant.
reducing costs.
the plant to Undertook debottlenecking initiatives and
source its raw upgraded from the old gear system to a silent
materials from drive system.
local catchment
areas near its
manufacturing
facilities.
Key numbers - Unit JKPM (paper)
104.4 % capacity utilisation

during 2018-19 3.2 % reduction in kWh/tonne
of paper during 2018-19
2.8 % reduction in water usage

per tonne of paper during
2018-19
9.2 % reduction in coal usage per
tonne of paper during 2018-19
22 | JK Paper Ltd.
Outlook, 2019-20
The Company intends to increase pulp capacity The Company intends to increase pulp
to address growing packaging board demand. substitution with fillers.
The Company will strengthen product The Company intends to increase the quantum
customisation. of pulp derived from every tonne of wood to
The Company intends to debottleneck its ~44% through the enhanced planting of clonal
manufacturing capacity. saplings.
The Company intends to enhance packaging
board capacity to meet growing demand.
Key numbers - Unit CPM (paper)
123.5 % capacity utilisation

during 2018-19 2.6 % reduction in kWh/tonne
of paper during 2018-19

2018-19
4.4 % reduction in coal usage per
The CPM
unit edge
Unit - CPM accesses
wood at a lower
cost compared
Key numbers - Unit CPM (packaging board) to the JKPM
plant. Large tracts
near the plant
7.7
provide room for
111.3 % capacity utilisation % reduction in kWh/tonne expansion. Unit -

during 2018-19 of paper during 2018-19 CPM is strategically
located near the
core packaging
board markets of

2018-19
7 % reduction in coal usage per
Mumbai, Pune and
Ahmedabad.

How we reinforced
our brand recall
Overview
In a business often dismissed as commodity Even as there is a premium on prudent
where product differentiation is perceived to be corporate positioning, there is a concurrent
negligible, there is a premium on the need to need for India’s paper industry to emphasise its
brand products with the objective to generate a position as a rural economy driver engaged in
superior recall. responsible farm forestry on degraded lands,
R&D investments, development of high-yielding
Over the years, the Company invested in product
drought-tolerant and disease-resistant wood
differentiation – lustre, burst factor, smoothness,
varieties and collaborative engagements between
absorption and cleanliness – with the objective
manufacturing companies at one end and farmers
to strengthen its recall as a responsible and
at the other.
competent manufacturer.
24 | JK Paper Ltd.
9% 4% 5.5% ~13%
Key
numbers
Growth in packaging Growth in writing Growth in copier Growth in revenues,
board volumes, 2018- and printing paper volumes, 2018-19 2018-19
19 volumes, 2018-19
Strengths
JK Paper’s respect for sustainability has The Company is a dependable provider of
established its reputation as a responsible high-end packaging board, marked by enduring
corporate citizen. business-to-business relationships with some of
The Company’s brand recall is defined by words the most respected and demanding customers.
like ‘trust’ and ‘superior quality'. The Company is respected for market leadership
The Company provides a range of consumer in the office paper segment.
products (office paper, writing and printing The Company is wood- and carbon-positive.
paper and specialty paper, among others), The Company is engaged in school-based
reinforcing its position as a one-stop solution marketing campaigns that communicate
provider. sectoral responsibility.

The biggest challenge to the paper industry is company and how paper consumption not only
the myth that paper consumption is synonymous has nothing to do with cutting trees but also helps
with deforestation. The Company mitigates this increase the green cover by planting more trees.
challenge by organising awareness campaigns Further, the Company also focuses on social media
in schools on how JK Paper is a carbon-positive campaigns to reach a larger audience.
Highlights, 2018-19
The Company sponsored the fourth edition of The Company rechristened ‘JK Paper’ visibility
the Times Literature Festival - Delhi, increasing instead of promoting individual products.
visibility. The Company increased its reach through
The Company increased market visibility through the e-commerce route selling directly to the
signages. customers.
The Company initiated school campaigns to The Company continues its Super Sitare
transform student mindsets about paper and programme to incentivise outperforming
alleged deforestation. wholesalers and dealers.
The Company extended product access to The Company expanded its reach through The Company’s
retailers and consumers, enhancing its last mile Jobber contact programme, highlighting the brand recall is
visibility. copier paper brand.
defined by words
like ‘trust’, and
Outlook, 2019-20 ‘superior quality’ .
The Company intends to launch an electronic The Company intends to encourage women
media campaign promoting the responsibility of writers in India through an annual award.
the sector and Company towards sustainability. The Company intends to further expand its last
mile reach across India.

How we widened and
deepened our sales and
distribution network
Overview
Current network coverage In a vast India, the challenge lies in
–a visual representation distributing products wider and deeper to
provide products to where consumers need
them.
Besides, there is an ongoing challenge to
address latent demand, reflected in the
country’s extensive under-consumption
of paper: per capita consumption of 13 kg
of paper in India is a fraction of the global
average of 57 kg.
However, paper consumption in India
is rising faster on account of increased
incomes, aspirations, literacy and product
consumption. This makes it imperative to
not merely service existing markets but also
create markets through a wider portfolio on
the one hand and a wider presence on the
other.
Besides, there is a premium on the ability to
counter paper imports, higher commodity
prices, and digital disruption through
enhanced availability and geographic
penetration.
South North
Over the years, the Company strengthened
East West its sales and distribution structure by
collaborating closer with corporate
Plant Depots customers for promoting its writing and
printing as well as its packaging board
products. By engaging directly with the
printing and publishing community, the
Company reduced its dependence on
conventional trade partners.
26 | JK Paper Ltd.
Strengths
The Company’s robust distribution network and retailers) in 2018-19.
and direct contact programme for key clients The Company had a robust distribution network
strengthened a corporate consumer pull. comprising 238 trade partners (including
The Company leveraged its enduring overseas partners), more than 4,000 dealers and
engagement with publishers and printers. 18 depots (as on 31st March, 2019).
The Company capitalised on a near 100% The Company increased revenues by ~13%.
retention of trade partners (wholesalers, dealers

The business of paper marketing is restricted functions. The Company is addressing this
Redefining
by the inadequate availability of talented challenge through ongoing collaborations with
sectoral
professionals. The Company is addressing this specialised agencies and experts.
benchmarks
challenge through agencies identifying related Paper imports continue to pose a challenge for the The Company
talent and by benchmarking remuneration with Indian paper manufacturers. The Company is also is widening and
sectoral standards. addressing the challenge of imports through cost deepening its
The other challenge has been a dearth of leadership, direct interface with retail consumers semi-urban and
competent trainers for the sales and distribution and a superior engagement with trade partners. retail distribution
network beyond the
>10 Lac population
towns to the >5 Lac
population towns.
Highlights, 2018-19
The Company is
The Company engaged with downstream requirements; it engaged with these companies investing deeper
converters to enhance packaging board through fortnightly direct contact programme. in direct contact
acceptability and offtake. The Company generated a 13% increase in programmes to
The Company improved its reach across retailers revenues to H3,469.19 Cr and strengthened increase its revenue
and consumers. average realisations. share from marquee
The Company created a database of institutional The Company increased focus on distributors' clients.
customers with growing packaging board sales training.
Outlook, 2019-20
The Company intends to market products The Company intends to address growing
effectively and profitably in its regions of demand from South India through the recently
presence, carving out a superior wallet share. acquired Sirpur plant.
The Company intends to widen its distribution The Company will expand its product range
footprint to the last mile. following the Sirpur Paper Mills acquisition.

Our finance
review
Overview
In a capital-intensive business, there is a priority and branding initiatives, there is a premium on the
to generate a return considerably higher than the right financial structure, funding mix, repayment
cost of capital. terms and capital asset financing.
While most of the initiatives resulting in this During the year under review, the Company
superior return are derived from various strengthened financial control, enhancing liquidity,
manufacturing, marketing, resource procurement margins and competitiveness.
28 | JK Paper Ltd.
Strengths
Credit rating: The Company focused on Net debt-EBITDA: The net debt-EBITDA ratio
deleveraging its Balance Sheet to improve credit declined from 1.66x during 2017-18 to 0.75x
rating from A/Positive in 2017-18 to A+/Stable in during 2018-19.
2018-19. Investor relations: The Company engaged
Loan repayment: The Company ensured timely deeper with the investor community through
debt repayment to moderate interest outflow from quarterly performance-based conference calls and
5.1% of net sales in 2017-18 to 3.8% of net sales participation in various meetings, enhancing their
during 2018-19, while strengthening interest cover understanding of the Company’s performance and
from 4.47 to 7.57. prospects
Gearing: The Company’s gearing by the close of Capital management: The Company reduced its
2018-19 was 0.34, indicating its financial strength working capital requirement to 8 days of turnover
and enhanced room for borrowing, if needed. equivalent in 2018-19 compared to 32 days during
Debt cost: The average cost of consolidated debt 2015-16.
for the Company was 8.5% at the close of 2018-19; Receivables: The Company strengthened its
the lowest debt tranche had been mobilised at receivables management by reducing 5 days in
less than 9%. 2018-19

The high cost structure in the economy was a Company uses a mix of domestic and foreign
challenge. The Company increased sourcing debt.
from within 200 kms radius and reduced fuel Mobilising funds for projects and other solutions
and water consumption, which in turn reduced in a cost-effective manner was another
the cost of production.
Key
challenge. The Company leveraged long-
numbers
The paper industry is a capital-intensive sector, standing relationships with financial institutions
620
besides the cost of funds in India is on the coupled with increasing access to global funds
higher side. To mitigate this challenge, the at a lower cost, cushioned the Company from
this challenge.
bps, increase in
EBITDA margin in
2018-19 over 2017-18
Highlights, 2018-19
The Company successfully mobilised The Company repaid H284 Cr of long-term debt
3.10
required debt for Sirpur Paper acquisition at a in 2018-19.
comparative cost with a door-to-door maturity The consolidated gearing of the Company
of 12 years, strengthening cash flows. moved from 0.64 to 0.34 during the year under times, improvement in
review. interest cover in 2018-
19 over 2017-18
Outlook, 2019-20
The Company is optimisitc of prospects in the copier segment, resulting in superior offtake in
paper industry and protecting leadership in the the near future.

Our human
resource review
Overview
The last mile
approach of In a business where the biggest priority is to groomed professionals and combined in-sectoral
JKPL generate a consistently higher throughput from recruitment with non-paper industry recruitment
The Company’s last given equipment and infrastructure, there is a backgrounds. Besides, the Company enhanced
mile responsiveness premium in motivating employees to consistently a culture of caring, integrity, intellectual honesty,
comprises the outperform. openness, fairness, trust and excellence.
identification At JK Paper, we believe that this consistent The result of this ferment is that employees
of outstanding outperformance is derived from a differentiated embrace challenges, address directly what would
managers and workplace culture. At our Company, this culture normally have been outsourced, outline targets
customised training. has been reinforced through prudent recruitment, bottom-up and engage in multi-functional teams
This learning ongoing training, role expansion, delayered to collectively address objectives.
environment communication tiers, operational transparency
It has translated into enhanced throughput
strengthened people and career progression.
from given equipment and infrastructure, high
retention to 92%,
Over the years, the Company’s people operation efficiency, consistently superior product
higher than the
management has been woven around the grades and a complete fit with downstream
sectoral average
pillars of engagement, development and customer applications.
performance. The Company recruited from
prestigious pan-Indian institutes, mentored and
30 | JK Paper Ltd.
Strengths
Longstanding recall as a Great Place to Work Easy accessibility of the senior management.
within India’s paper sector. Respect for being a sectoral statesman and
Group-level structured employee development thought leader.
programme for individual companies. The Company's core value is people-centricity.
Workforce delivery marked by innovative,
differentiated and quality service.

The Company addressed the challenge of low on coaching cum mentoring and 10% focused on
competence through increased training and classroom / virtual training).
mentoring (especially of those from non-paper The Company supplemented its longstanding
backgrounds). manufacturing focus with enhanced customer-
The Company strengthened its learning and centricity through deeper employee engagement
development framework through ‘70:20:10’ and enhanced customer-friendliness.
Key HR
principle (70% focus on on-the-job learning, 20%
engagements at
JKPL
• The Sharing Minds
programme revolves
Highlights, 2018-19 around business
The Company launched e-Gyan, an e-learning The Company hosted sporting contests heads engaging with
portal for soft skills and interactive courses on (badminton and cricket), picnics and employees in small
various topics. celebrations of important days (International groups for informal
The Company reinforced its ‘customer first’ Women's Day). communication.
culture through periodic theme-based The Company undertook the Wrong 2 • Sampark involves
programmes at the manufacturing facilities and Right initiative, with employees submitting unit heads and senior
head office. testimonials on a public forum about errors and executives engaging
The Company undertook initiatives like Sharing their rectification. informally with
Mind, Sampark and Coffee with President, The Company undertook a study on employees.
among others, to enhance engagements organisational effectiveness. Based on their • Coffee with
between the workforce and senior managers. suggestions, the Company added four verticals President provides
The Company conducted employee satisfaction (retail, product development, operational the selected
survey and regular engagement programmes excellence and outsourcing). ‘Employee of the
(Funtakshari, Minute to Win It, Online Under the ‘Great Place to work’ the Company Quarter’ with the
Independence Day Quiz, among others), leading was recognised amongst the top 100 Indian opportunity of a one-
to an increased employee engagement score of companies. on-one interaction
91 compared to previous survey score of 84. The Company laid the foundation of a with the Company’s
performance-driven reward culture. President.
• Santusthi comprises
employees
Outlook, 2019-20
volunteering for social
Focus on people development catalysed by Implement a stronger e-learning programme work, emphasising
customised programmes. by developing a mobile app that enhances the JKPL value of
Introduce opportunities like intra-job and inter- employee accessibility. ‘caring for people’.
job rotations, enhancing holistic knowledge Organise contests wherein employees compete
building. with each other.

Our Corporate
Social Responsibility
India's Vice President Shri Venkaiah Naidu at BYST Grampreneurs Summit
Overview
JK Paper's Corporate Social Responsibility (CSR) strives to meet the Our CSR has earned appreciation from the State and national
development needs of the country, especially the communities development agencies, resulting in partnerships with NABARD and
that we work with, the underlying philosophy being to create other reputed institutions like IIT Bhubaneswar & CIBAT Gujarat,
socially harmonious and financially viable communities, provide among others, enabling us to extend our footprint to newer
them with sustainable livelihood opportunities, support weak geographies. The projects include plantations under the NABARD
and marginalised sections through initiatives that include them project and will cover over 2,800 hectares benefiting over 10,000
in the development process and build their capacity for greater farmers with an eventual target of addressing 60,000 farmers in
productivity. The projects are designed to not only benefit the six coastal districts of Odisha. Partnerships are also in the offing
population but leverage the inherent social capital for their overall in areas of rural marketing, whereby the Company will facilitate
development in the long term. the setting up of Rural Mart and a Rural Haat to establish a market
linkage for the products made by SHGs, reducing their vulnerability
Our CSR footprint has a geographical spread in three blocks of
on account of an absence of credible market linkages.
Rayagada, Odisha and two blocks in district Tapi, Gujarat, covering
over 32,000 households across 252 villages. We also support dairy
enterprise development in Gajraula, Uttar Pradesh.
32 | JK Paper Ltd.
Women
With a view to empower women and make them The Company opened accounts for 255
economically independent, the Company helped self-help groups (of 274 associated with the
form 274 self-help groups with a membership Company).
count of 2,877, empowering them to source loans The Company helped increase income per
from NABARD and commission small income- member from H2,500 per month in 2017-18 to
enhancing enterprises. H3,200.
The Company made available H23.60 Lac for 150
Highlights, 2018-19
self-help groups (Mission Shakti).
The Company provided a helping hand to
47 self-help groups engaged in fungiculture, The Company provided a goatery group with
tamarind processing and flour grinding. access to infrastructure, advice and customers,
the group being owned and managed by rural
The Company facilitated loans of H70 Lac to 70
women.
self-help groups.
The Company inaugurated a rural mart in
January 2019 at Rayagada with NABARD to
establish market linkages for SHG products.
The Company
helped form 274
self-help groups
with a membership
count of 2,877,
empowering them
to source loans
from NABARD and
commission small
income-enhancing
enterprises.
Hill broom binding enterprise by SHGs

Farmers
Farming is the primary livelihood source around with 26 acres, to cultivate three crops a year and
the Company’s manufacturing facilities. double their incomes.
The Company engaged with government The Company identified eight group-based
agencies to undertake initiatives to enhance micro-irrigation sites initiated in eight villages
farmer incomes and awareness of scientific with the help of IIT Bhubaneswar.
techniques. JK Paper and NGO Sparsh The Company organised exposure visits for
organised training camps in integrated livestock 60 farmers from Bhadrak and Puri districts to
management, vaccination and de-worming. At casuarina fields in Srikakulam (Andhra Pradesh)
Unit - CPM, 154 farmer clubs were formed, which and JK Paper Mills, Rayagada under the aegis of
engaged with 2,417 farmers including 205 women. the Capacity building and Adoption Technology
(CAT) programme of NABARD.
Highlights, 2018-19
The Company organised exposure visits for 50
The Company organised training sessions for
farmers from 26 villages of the Muniguda district
leaders of the farmer clubs in collaboration
to enhance their understanding of integrated
with NABARD, Krishi Vigyan Kendra, Agricultural
farming, crop rotation and water management.
Technology Management Agency and
Horticulture Department. The Company increased cropping area 10 fold
to 1,459 acres, increased farm incomes from
The Company piloted a solar-powered micro-
H45,000 to more than H1,00,000 and helped
irrigation project in Maudiguda for 45 farmers
reduce livestock healthcare costs.
Developing Tribal Entrepreneurship

JK Paper-BYST
partnership The Rayagada district is predominantly tribal and Raise awareness and sow the seeds of
has traditionally been an economy sustained entrepreneurship among the young people on
The Company signed
by rain-fed agriculture and minimal animal a large scale in Rayagada.
an MoU with Bharat
Yuva Shakti Trust husbandry. However one of the development Counsel and train young people in
(BYST) to create 130 challenges has been to unleash a spirit of entrepreneurial activities.
entrepreneurs in entrepreneurship among the youth and Fund and mentor youth businesses through
three years across encourage them to set up their own enterprises. BYST’s bank partners and mentors.
three Rayagada The Company created a Youth Entrepreneurship Ensure the creation of wealth and employment
blocks. The initial Development Project (YEDP) at Rayagada with Catalyse long term sustainability of the local
phase commenced the support of Bharat Yuva Shakti Trust (BYST), the
in September 2017 community.
objective being the following:
and was completed Create a group of youth icons to inspire
in March 2019. The potential young entrepreneurs.
Company reached
13,148 youth,
Impact (September 2017 to March 2019)
counseled 3,015 youth
and trained 676 youth. Cumulative Target as per MoU Cumulative achievements
Some 85 ventures Parameters
(2017-2019) (September 2017 to March 2019)
were commissioned
and H142.82 lac in loan Youths addressed 12,000 13,148
was disbursed. Youth counselled 2,400 3,015
Training (STEP) 480 676
Ventures created 80 85
Loans disbursed (Lac) 240 143
Mentors inducted 60 72
Turnover - 3.50 Cr (approximately)
34 | JK Paper Ltd.
Adult literacy class in progress
Youth
The Company laid a keen emphasis on skill The Company ran a campaign across 25 villages
development through tailoring, driving, mobile to enhance awareness of sanitation where 500
repair and MSME initiatives, among others. Unit village youths participated in a sanitation drive.
- CPM improved and upgraded the ITI at Ukai The Company trained local youth in driving light
through the public-private partnership mode to motor vehicles connected them to companies
kick-start a vocational training programme. The and individuals seeking drivers; the Company
total enrolment was 669 in 2018-19. also facilitated them with loans to start their
own vehicle hire service. The Company has
Highlights, 2018-19 The Company imparted vocational tailoring been running an
The Company formed 40 youth clubs across 25 training to adolescent girls and provided them adult education
villages by mobilising 892 individuals. with soft loans to set up tailoring units (helping programme for more
them earn upto H7,000 per month). than a decade and
has till date enabled
around 18,000
Education individuals to read
and write.
JK Paper's engagement with education dates schools in Rayagada (Odisha) and Songadh
back to its inception at Rayagada. Over time, the (Gujarat).
engagement has expanded to include adult, The Company commissioned six remedial
financial literacy and support to the specially coaching centres in local schools and colleges to
challenged. provide tutorial support to slow learners.
The Company continues to support Nutan
Highlights, 2018-19
Gyanvardhini, a special school for the educational
The Company provides quality education at the
rehabilitation of 30 children with special needs
primary, secondary and tertiary levels through
from the Rayagada and Kolnora blocks.

Healthcare
Other Cases (ENT, ophthalmological,

cancer, surgical, dental, etc) Orthopaedic and musculo-
872 skeletal disorders, 1132, 12%
9%
Malnutrition, 191, 2%
Central nervous system

disorders, 130, 1%
Sickle cell (Trait/Disease),

1648, 17% Respiratory tract infections,
2363, 25%
Pyrexia of unknown origin

(PUO) 160, 2%
Gynaecological disorders,
214, 2%
Gastro intestinal tract, 2801, 30%
Distribution of cases attended during 2018-19
Nutan JK Paper supports health care development by Increased institutional maternal deliveries by
Gyanvardhini - providing free medical checks, treatment and 94%; raised immunisation compliance to 100%.
key aspects medicines. The Company is improving healthcare Screened ~57,000 cataract patients and
Vocational training access for women through dedicated platforms performed 5,700 surgeries at the JK Centre for
offered for the (balika mandals) to handhold adolescent girls in Tribal Eye Health (partnership with LV Prasad Eye
rehabilitation of personal hygiene, reproductive and sexual health. Institute).
differently-abled As of 31st March 2019, 15,615 individuals had Launched Project Roshni in Rayagada to
children. been covered through 324 medical camps under enhance eye health and address cataract
Regular parent the Company’s guidance. The health outreach instances.
meetings organised programme empowered community volunteers Organised a community-led sanitation
to assess child prevent seasonal disease outbreaks. programme with youth federations and self-
development help groups.
Highlights, 2018-19
Children provided Paid visits to 25 villages helping 11,641 people Provided youth federation members with
with nutritious via community volunteers. cleaning equipment across 25 villages.
breakfast and lunch Deployed a mobile medical unit to help
Completed birth registrations in 25 villages,
daily as well as bus economically-disadvantaged indigenous
helping 104 beneficiaries.
transportation to communities in the area.
Immunised 1,788 beneficiaries across 25 villages.
school Offered treatment and individual counseling to
Organised 17 awareness-enhancing
General health check 1,276 patients suffering from sickle cell anaemia.
programmes for 1,500 pregnant and lactating
camps organised Formed sickle cell committees in intervening
mothers.
twice a month. villages, comprising the village head and
principal of the local school, among others.
36 | JK Paper Ltd.
Members of goatery enterprise
Project Roshni -
Rural infrastructure development key aspects
The pace of infrastructure development is a Company engaged in the building of overhead Provided free
crucial indicator of how the community is able to water tanks, crematoriums and village approach cataract surgery,
access services and enhance local prosperity. The roads. including medicine,
stay, food and logistics
Screened 187 people
for cataract; surgeries
Awards and recognitions, 2018-19 were conducted in
38 villages with NGO
Received the Odisha INC Green CSR Award Received the Best Performance Award
Sparsh in 2018-19.
2018 from the Health, Law, Information and (Corporate Social Responsibility) from the
Public Relations Minister, Mr. Pratap Jena. Central Board for Workers Education.
Dr. Prafulla Dhal, General Manager (Corporate Received a Certificate of Appreciation for
Social Responsibility) accepted this prestigious being a socially-responsible corporate from the
award on behalf of the Company for its Federation of Indian Chambers of Commerce
embracement of eco-friendly technologies and Industry.
to ensure zero wastage and the sustainable Received the CSR Excellence Award from
development initiatives undertaken in the the Odisha CSR Forum in acknowledgement
nearby areas in tow with Sparsh. of Sparsh’s work in the area of sustainable
Received the Best Performance Award at the livelihood creation.
Krushi and Pranisampad Mahostav from the
Rayagada district administration.

The JK Paper
business model
Sectoral context
Population growth: India has emerged a projected 100% by 2021, expected in 2016-17 to ~H1,25,397 in 2018-19,
as the second-most populous country, to enhance the offtake of textbooks, strengthening the consumption of paper
adding ~15 million people to its notebooks and assorted products. and paperboard.
population annually – a growing market Consequently, the demand in the printing
Robust outlook: India’s share in global
for the Company’s products. and writing paper segment is expected
paper demand is gradually growing as
to grow at a CAGR of 4.2% to 5.7 million
Demographics: A lower median age domestic demand is increasing at a steady
tonnes in 2019-20.
implies a higher number of working pace while demand in the Western nations
Indians, outlining earning and spending Increasing commercialisation: With the is contracting. In spite of the sustained
potential. Taking into account the age rise in commercial activity, demand for growth witnessed by the industry, per
group of more than 25 years being one writing /printing / office paper is gaining capita paper consumption in India stands
of the highest spending age group, the traction. The top seven cities in India are at ~13 kg, well below the global average
current age dynamics are expected to estimated to account for a total of 218 of 57 kg and significantly below 200 kg in
strengthen retail offtake and paper / million square feet of office space by 2022, North America. This indicates that there
paperboard offtake in India. strengthening demand for the Company’s is ample room available for the market to
products. grow in India over the medium-term.
Increasing literacy: Literacy in post-
Independence India has risen from Growing incomes: Per capita incomes Packaging prospects: Demand for
18% around 1950 to 80% in 2017 and in India strengthened from H1,03,870 packaging paper and boards caters to
38 | JK Paper Ltd.
FMCG, food, beverage, pharmaceutical and textile Plastic ban: The ban on single-use plastic in
industries, expected to grow at a CAGR of 8.9% to Maharashtra from 2018 is likely to boost prospects
11.4 million tonnes in 2019-20. of paper companies. Local governments in more
than 50% of India’s 29 states and seven Union
Online retail: The online market is likely to be
Territories drafted a legislation to ban single-
valued at US$ 200 billion by 2028 compared with
use plastic. This bodes well for the Company’s
US$ 30 billion in 2018, catalysed by smartphone
packaging paper segment.
users (pegged to reach 829 million by 2022). This
could enhance demand for packaging board.
JK Paper’s response
Direct approach: The Company is leveraging potential through cost leadership and reinventing
the direct contact programme to increase the its last-mile marketing personality.
share of business with marquee clients. This is not
R&D focus: The Company focused on developing
only moderating the Company’s dependence
clonal seedlings with a shorter gestation period,
conventional channels but also provides new
disease-resistant clones of eucalyptus, electric
opportunities in new markets.
sample seed scarifier for subabul to increase
Retail distribution: The Company is capitalising germination and survival and a gene bank-
on retail distribution growth to extend beyond cum-progeny trial facility at Unit - JKPM for the
the >10 Lac population towns to the >5 conservation of germplasm for R&D programmes.
Lac population towns. The Company’s retail
Synergistic acquisition: The Sirpur acquisition
distribution commenced in NCR, Chennai and
provides a growth opportunity to the Company to
Lucknow and will spread across more than 30
expand its business. This could more than double
cities.
the Company’s uncoated printing and writing
Last-mile approach: India is arguably the fastest- paper capacity and also supplement its speciality
growing major paper and packaging board market products portfolio.
in the world. The Company is addressing this
Outcomes
The Company
Revenue outperformance: The Company Reward: The Company declared a dividend of
reported possibly
reported a revenue growth that was 13% the 35% with a cash outflow of H75.21 Cr (last year
the fastest
sector’s growth in the last year ending 2018-19. H53.72 Cr) as dividend during 2018-19.
acquisition in
Rising margins: The Company grew EBITDA Market share: The Company maintained its India’s paper sector
margins 1,270 bps in the four years ending 2018- leadership in the office paper segment across the (when it acquired
19. country. Sirpur Paper in
2018)
Declining indebtedness: The Company repaid Acquisition: The Company reported possibly the
H573 Cr in debt in the four years ending 2018-19. fastest acquisition in India’s paper sector (when it
acquired Sirpur Paper in 2018).
Valuation: The Company strengthened market
capitalisation by H1,917 Cr (H630 Cr in 2015-16 Average realisation: The Company strengthened
to H2,547 Cr in 2018-19) in the four years ending average realisation per tonne in the four years
2018-19. ending 2018-19.

JK Paper’s
integrated report
Our strategy
Strategic Innovate and Cost advantage Supplier-of- Robust people Responsible Focus on value
focus excel choice practices corporate creation
citizenship
Key Nurtured a Focused on cost Emerged as Strived to Engaged in Enhanced value
enablers culture of cost management a supplier- achieve the community- through the
management through efficient of-choice highest levels strengthening manufacture of
and qualitative raw material owing to the of engagement initiatives to different grades of
excellence by sourcing and Company’s aided by different benefit farmers, quality paper and
laying a keen investments focus on HR initiatives the youth packaging boards.
emphasis on in superior ensuring undertaken and women The Company
R&D to develop manufacturing quality over the years. in the realms offers the best
clonal saplings technologies. In consistency The Company of education, quality products
with shorter order to emerge and re- believes in healthcare, pan-India. Further,
maturity periods. as the most cost- inventing growing with livelihood the Company's
Over the years, efficient sectoral the last-mile employees and and rural new initiative to
the Company player, the Company approach tries to identify infrastructural access customers
successfully started sourcing to emerge prospective development. and retailers is also
brought down raw materials from as a more managers and The Company a value-addition
the maturity within a radius of customer- train them channelised over for end customers,
period from seven 200 kms from its centric regularly. H3.35 Cr towards owing to which
years to five and is plants. On the back corporate. CSR activities JK Paper not only
now focusing on of cost reduction during 2018-19. provides customers
bringing it down measures, JK Paper with value-added
to three years. gained an upper products but also
hand over peers. value-added service.
Material Used cutting- Improved Boosted brand Improved Fostered Addressed customer
issues edge technology raw material recall among employee community needs effectively.
addressed and R&D procurement and customers. engagement engagement
initiatives to debottlenecked and raised and enhanced
develop high- facilities. transparency prosperity.
yielding saplings. levels.
Capitals Manufactured, Financial, Intellectual, Intellectual and Social and Intellectual,
impacted Intellectual and Manufactured and Manufactured Human Natural Manufactured and
Financial Social and Social Social
40 | JK Paper Ltd.
Our resources
Financial capital: The financial resources that Intellectual capital: The Company’s focus
the Company seeks are based on the funds it on cost optimisation, operational excellence,
mobilises from investors, promoters, banks and processes as well as repository of proprietary
financial institutions in the form of debt, net knowledge account for its intellectual resources.
worth or accruals. Natural capital: The Company sources raw
Manufactured capital: The Company’s assets, materials sourced in a manner that does not
technologies and equipment constitute its adversely affect the environment.
manufactured capital. The logistics for the Social capital: The Company’s relationships with
transfer of raw materials and finished products communities and partners (vendors, suppliers
are integral to its manufacturing competence. and customers) influence its role as a responsible
Human capital: The Company’s management, corporate citizen.
employees and contractual workers form a part
of its workforce.
Value created
Financial capital Retention rate: 92.1%
Turnover: H3,469.19 Cr Intellectual capital
Earnings per share: H24.57 Cumulative average senior management The Company’s
RoCE: 20.6% experience: ~31 years assets,
Manufacturing capital Natural capital technologies
Quantum of paper produced: 3.94 Lac tonnes Trees planted in 2018-19 : 414 Lac and equipment
Quantum of packaging board produced: 1 Lac Reduction in power consumption (y-o-y): 4% constitute its
tonnes Reduction in water consumption (y-o-y): 3.9% Manufactured
Average capacity utilisation: 109% Reduction in coal consumption (y-o-y): 6.1% Capital. The
logistics for the
Human capital Social and relationship capital
transfer of raw
Employees: 2,535 Number of farmers engaged with: >50,000
materials and
Training imparted: 766.6 person days Number of CSR beneficiaries: >60,000 finished products
Average age: ~39 are integral to its
manufacturing
competence.
Value shared with

Investors: The Company enriched investors Distributors and suppliers: The Company
through dividends and capital appreciation. enhanced value for distributors and retailers
through sustained business growth and return
on their invested capital.

Management discussion and analysis
GLOBAL ECONOMIC INDIAN ECONOMIC However, forecasts of a normal monsoon,
OVERVIEW OVERVIEW coupled with direct income transfer
Following a decade-high growth of 3.8% in India is not only one of the fastest schemes (PM-KISAN) along with higher
2017, the global economy slowed down in growing major economies but also the public spending on rural infrastructure,
2018, following major setbacks in the form fastest to grow in the last decade post- are expected to provide a fillip to a rural
of heightened risks of US-China trade war, global financial crisis of 2008. But that economy. With capacity utilising improving,
a delayed Brexit, renewed US sanctions on momentum, which saw growth reaching private investment is expected to revive,
Iran, escalating oil prices and tightening above 8%, has eased and is expected to giving further boost to growth. Overall
financial conditions. grow at 6.8% in 2018-19. Inflation control growth is expected to recover across the
had helped maintain consumption growth, foreseeable future.
The downside risks still remain, as US and
but it also led to agrarian distress, leading
China are yet to reach any conclusive trade
agreement. Meanwhile the US sanctions on
to moderation in consumption spending GLOBAL PAPER & PACKAGING
Iran and removal of the temporary waivers
on declining rural incomes. INDUSTRY OVERVIEW
given to 8 countries including India, could While reining inflation gave headroom Paper addresses growing humankind
have repercussions on oil prices, already to RBI to lower policy rates, the limited needs in areas like education, sanitation,
up 35-40% in 2019 and projected to rise availability of liquidity after the NBFC crisis packaging and communication.
above US$ 80 per barrel. This could have in the second half of last year kept lending North America is a dominant pulp and
an adverse impact on global growth rates elevated, making RBI’s rate cuts paper producer followed by Western
through the channels of currency, trade almost a non-event. Although RBI tried to Europe and East Asia though increasing
and capital flows. Higher oil bills will offset the liquidity deficit, most notably consumption in India and China is likely to
worsen the current account balance of by the twin dollar swaps, they were not shift the needle towards the countries.
the emerging economies, especially those enough. This was further aggravated by the
who are major oil importers, viz. India and likelihood of the Government overshooting The global paper and paperboard market
China, and who are also driving global the fiscal deficit target. Elevated oil price is was estimated at ~415 million tonnes in
growth. The emerging economies will be a further drag on growth. 2018 and expected to grow to 470 million
more vulnerable to rising inflation and tonnes by 2030 with a growing premium
India continued its ascent on the World on environmental compliance, responsible
hike in interest rates, leading to capital
Bank’s Ease of Doing Business radar, resource use and effluents neutralisation.
flight. Although there have been some
jumping 65 places in last five years to a
improvements in the global financial The paper industry is marked by
record 77th position in the latest survey
market sentiment, the challenges to the upstream presence of forestry,
that captured the performance of 190
growth in the Euro area remain, especially wood, agriculture, water and coal and
countries. The commencement of the US-
with the delayed Brexit. Emerging markets downstream applications extending to
China trade war opened a new opportunity
and developing economies are expected packaging and printing. All the upstream,
for India, particularly in the agro sector. The
to sustain the momentum of growth till midstream and downstream industries are
rupee rebounded after touching a low of
2020, but there is limited headroom in affected by global economic growth and
H74.45 to a dollar to close the financial year
expansionary fiscal space, while advanced lifestyle trends. Newspaper applications
at H69.44. During the fiscal under review,
economies could continue to face growth and a growing gadget usage are adversely
the Indian Government continued to invest
pangs. affecting newsprint as well as writing and
deeper in digitisation, renewable energy
As a result, the global economy that was capacity generation and infrastructure printing paper demand. On the other hand,
earlier projected to grow at 3.9% in 2019 building. e-commerce is strengthening the offtake of
is now set to grow by only 3.3% in 2019 packaging paper. The industry is starting to
The demand slowdown was apparent in focus on cardboard and packaging paper,
before recovering to 3.6% in 2020.
some pockets, especially in the automobile, expected to emerge as the biggest sectoral
FMCG and other consumer goods sectors. demand drivers.
42 | JK Paper Ltd.
Further, globally specialty papers are going Among various segments within paper, as the fastest-growing major paper market
to drive paper demand in the mid-term. The packaging has been the driver for growth across the world, growing at a robust rate
prime drivers behind this robust growth globally and this trend is expected to drive of ~7% in 2018-19, outpacing most other
comprise increasing urban population, growth well into the next decade. Within large economies during the same period.
developing economies transforming into packaging , container boards and carton
The industry is classified into four segments
colossal markets and growth of the food & boards will drive the next round of growth.
- printing and writing, packaging paper
beverage sectors.
Paper packaging is a versatile and cost- and board, specialty papers and newsprint.
efficient method to protect, preserve, Packaging paper and board’s share is over
and transport a wide range of products. 50% of the total Indian paper market,
Additionally, it can be customised as growing at over 8% annually. Some of the
per customer or product-specific needs. paperboard sub-segments such as virgin
Rising consumer consciousness regarding fibre based boards and cup stock grew at
sustainable packaging, along with strict over 12%.
regulations being imposed by various
Rising urbanisation, increasing penetration
environment protection agencies,
of organised retail, higher growth in
regarding the use environment-friendly
FMCG, pharmaceutical and processed
packaging products, is driving the market
food industries, among others, are the
for paper packaging.
key growth drivers of the segment.
INDUSTRY POSITIONING
The fact that the developed economies Rising literacy rate and universalisation
Opportunities
in North America and Europe possess of education through legislative steps
E-commerce is growing rapidly,
strong paper-recycling capabilities, like Right to Education, governmental
translating into an increased
supported by established infrastructure, measures like Sarva Shiksha Abhiyan
traction for packaging paper and
has driven the adoption of paper-based and mid-day meal schemes as well as
paperboard.
packaging. Additionally, the rapid growth increased spending on education are the
Tissue and hygiene products are of online shopping has fuelled the usage main reasons for growth in the demand for
experiencing increasing demand of packaging and paper-based bags. printing and writing paper.
on account of growing hygiene These trends are bound to be replicated
Further, owing to the increasing focus on
awareness. in developing economies where adoption
education coupled with ever-increasing
With a number of countries rates have been low at present.
commercialisation in India, the writing and
replacing plastic bags with paper printing paper segment accounts for about
equivalents, paper industry INDIAN PAPER AND PULP 30% market share in the domestic paper
opportunities are growing. INDUSTRY OVERVIEW market. Domestic demand for writing and
Increasing literacy is driving Per capita paper consumption in India is printing paper in 2017-18 was pegged at
higher writing & printing paper around 13 kg, while the global average is 5.1 million tonnes.
consumption in developing about 58 kg. Per capita paper consumption
Other paper varieties, including specialty
is projected to increase to about 17 kg
economies. papers, account for about 4% of the paper
by 2024-25. India’s share in the world
market by volume. This segment includes
Threats production of paper is about 3.7%. The
tissue papers, which is the fastest-growing
Increasing digitisation is seen as a annual turnover of the Indian paper
segment, albeit on a much smaller base.
threat, replacing paper with virtual industry is estimated to be H80,000 Cr
Its demand is derived out of a general
equivalents. with around H4,500 Cr contribution to the
improvement in the standard of living and
The availability and affordability of exchequer.
out-of-home consumption.
fibre are a continuous challenge. The domestic demand of paper and
The industry provides employment to >0.5
paperboards in India is estimated at 17.1
million people directly and ~1.5 million
million tonnes in 2017-18, growing at a
people indirectly.
CAGR of 6.5%. Furthermore, India emerged

GROWTH DRIVERS Retail, increased emphasis on brand requirements. These companies often
Demography and lifestyles: Changes and legislation: Development of retail pay a premium for availing imported raw
in lifestyles eating on the go, online trade, food safety regulations and paper materials, denting the profitability of the
shopping, fast food consumption etc., packaging to build brand image towards industry.
population growth, increasing health- sustainability perception, reducing waste. Competition from imports: In the
consciousness and ageing population, (Source : Poyry) past seven years, imports of paper and
increase in demand for pharmaceutical paperboard increased from ~0.5 million
and personal care, changes in shopping CHALLENGES tonnes in 2010-11 to ~1.7 million tonnes
behaviour and rising standards of living. Access to raw material: Sourcing in 2017-18. The sharp increase in imports
Economics: Middle class growth and wood fibre has been a longstanding comes on the back of a progressive
increasing disposable income as well as challenge in India owing to a lack reduction in the basic customs duty
increasing household consumption. of industrial plantation policy in the by India on paper imports under the
country. Furthermore, the recovery free trade agreements signed with the
Product trends and technology:
rate of wastepaper in India is as low ASEAN countries, Japan and South
Improved printability and barrier
as ~30% owing to the lack of an Korea. Domestic manufacturers are
properties; new technologies and
effective collection mechanism. The grappling with issues like increasing
innovative packaging; nanocellulose,
unavailability of quality raw material at raw material and energy costs as well as
biodegradable barriers and intelligent
competitive prices has meant that paper intense competition from cheap imports
and active packaging; new product
companies are dependent on imported flooding the domestic market due to
launches and packaging innovation;
pulp, wastepaper and even imported preferential tariffs extended under the
health consciousness and more stringent
pulpwood to meet their raw material free trade agreements.
food safety regulations.
PRODUCT REVIEW
Office paper and copier is the best in the country to produce Strengths
The Company offers a diversified range of superior quality copier papers. Strategic location: The Company’s
office papers and copier across the value packaging board output comes from
Highlights, 2018-19
chain – from economic to premium – used Unit - CPM, which is proximate to key
Exported 36,507 tonnes of copier and
in printers, fax machines and photocopiers. markets in Western India - the biggest
office papers.
The demand for office papers and copier is revenue-contributing zone for the
mainly being driven by the ever-increasing Restructured its distribution channel segment.
number of literate and working Indians and to reach out to a large number of
Qualitative excellence: Over the
growing commercial activities. stationers and jobbers.
years, the JK Paper brand has become
Strengths Packaging boards synonymous with quality, thanks to its
Sectoral leadership: Over the past few Riding on the back of the increasing continuous R&D efforts. The Company’s
years, the copier paper segment has demand coming in from the FMCG, F&B, farsighted initiatives in this regard have
borne the brunt of myths associated pharmaceutical and textile sectors, the allowed it to develop qualitatively
with the paper industry. Nevertheless, JK packaging board segment is poised consistent products and paved the way
Paper has emerged as a market leader by to grow in the near future. The paper for it to emerge as a customer-centric
dispelling myths by leveraging strategic packaging industry touched the 10 million organisation.
awareness-raising campaigns. tonnes mark in 2018. JK Paper is a key
player in the premium virgin fibre boards
Highlights, 2018-19
Brand recall: The Company’s rich legacy, Produced over 1,00,000 tonnes of
segment, crossing the 1,00,000 tonnes
coupled with the qualitative excellence packaging boards.
mark by achieving a growth of over 10%
of its products, strengthened JK Paper’s Launched J K Stiff cup, PE Coated Board
compared to 2017-18. The Company offers
brand recall and established it as the and Blister pack board etc.
a range of high-end coated packaging
largest-selling copier paper brand not
boards to service the varied needs of the Coated papers
just in India but also in international
packaging industry. The Company also The Company is amongst the two Indian
markets such as Sri Lanka.
announced an addition to its packaging players to manufacture coated paper
Cutting-edge technology: The board capacity at Unit CPM to cater to the domestically. A large portion of the
Company leverages its state-of-the-art growing demand of the domestic market. demand is met by imports. The Company
machinery housed at Unit – JKPM, which
44 | JK Paper Ltd.
is in a unique position to service customers Tailor-made solutions. paper to its customers speaks volumes
better by providing tailor-made solutions, On-time delivery and proactive after- about the Company’s client-friendly
ensuring on-time deliveries and offering sales service. approach down to the last mile.
proactive after-sales services. The Company
Highlights, 2018-19 Strengths
has a capacity of 54000 tonnes of coated
Produced 53,550 tonnes of coated paper Large range of maplitho.
paper but it also outsources a significant
volume from international manufacturers Effective servicing.
Maplitho and Speciality papers
of the types that are not manufactured The Company manufactures uncoated Tailor-made solutions.
in India. Coated papers are used in writing and printing paper, which enjoy Highlights, 2018-19
applications such as magazines, books, a wide range of applications. Some Launched JK Ecosip for paper straws, JK
brochures, posters and wedding cards, specialty applications include MICR cheque Fabprint for specialised paper for fabric.
among others. paper, parchment, ledger, bond etc. The
Strengths Company’s maplitho paper is one of the
The Company is a strong segment player bestselling products. JK Paper’s proven
owing to quality products. ability to supply customised maplitho
FUNCTIONAL REVIEW
Raw material management workplace. Moreover, the Company is ongoing technological advancements.
For virgin fibre-based pulp and paper FSC-certified, which speaks volumes about During the year, the Company organised
operations, the cost of wood is the largest the Company’s stringent compliance with training programmes in different areas
input cost. In India, paper companies led by relevant forestry policies. such as technical skills, behavioural skills,
JK Paper have increasingly invested in farm business excellence, general management,
JK Paper installed a 3,000-cubic-metre-
forestry programs. This has helped reduce advanced management, leadership skills,
per-day capacity sewage treatment plant,
the lead distance from which the wood has customer orientation, safety, values and
which made it possible to monitor effluents
to be transported into our manufacturing code of conduct.
generation in Jaykaypur, Odisha. In sync
facilities, reducing our overall input cost.
with its identity of being an eco-friendly Further, the Company was accredited by
Owing to a continuous focus on corporate, JK Paper focused on using ever- ‘Great Places to Work’. JK Paper’s last mile
afforestation, JK Paper has emerged as a increasing quantities of treated effluent responsiveness comprises the identification
carbon-positive company, which means water for irrigation purposes. of outstanding managers and customised
that the Company has sequestered training. This learning environment
The Company has operationalised an
more carbon than it generates. JK Paper strengthened the Company’s people
online monitoring system to assess real-
afforested >1.6 lac hectares across Odisha, retention to 92%, higher than the sectoral
time air quality and flue gas quality, treated
Andhra Pradesh, Chhattisgarh, Gujarat, average.
effluent quality and transmitted the data
Maharashtra and West Bengal as on 31st
to servers of the State and Central Pollution
March 2019. The Company’s farm forestry
Control Boards.
initiative has not only benefited >50,000
members of the farming community but The Company strives to be a responsible
also allowed the Company to reduce its corporate citizen. As a means to this
input wood cost. end, it has been consistently working on In the past seven
improving the quality of life of the people
Health safety and environment residing in the vicinity of its plants by years, imports of paper
JK Paper complies with all relevant
qualitative, environment and safety norms.
undertaking socially-responsible initiatives and paperboard have
in the realms of education, livelihood
The Company was accredited with ISO
generation and healthcare, among others. increased from ~0.5
9001:2008 certification for its quality
management, ISO 14001:2004 certification Human resources million tonnes in 2010-
for its environment-friendly policies and JK Paper believes that the quality of 11 to ~1.7 million
OHSAS 18001:2007 certification for the employees is key to its success and is
keen emphasis it has laid on ensuring committed to equip them with skills, tonnes in 2017-18.
employee health and safety at the enabling them to seamlessly evolve with

Procurement and higher global pulp prices dented many years. The supply price uncertainty
The year 2018-19 was challenging for the bottom line of paper board. The has now reduced the horizon of contracts
material procurement after years. The government increased the MSP of agro and suppliers are not extending prices by
global issues like trade protectionist policy crops in this year. This was coupled with more than a quarter now. The JK Paper
of countries, environment impact and less production; the maize price was participated in Tranche IV of coal auctions
new legislations created an imbalance in continuously increased after Q3, which for the non-power consumers conducted
demand and supply scenario, resulting impacted starch prices. The production by Coal India and secured the coal quantity
in a sharp increase in chemical prices like was curtailed by producers due to a lesser for the next five years. The coal demand has
caustic lye, hydrogen peroxide, whitening availability of maize and situation is likely to increased in this sector and auction prices
agent, dyes etc, which was aggravated by improve only after a good kharif crop this have gone much above the notified prices.
Rupee devaluation in Q3 of the year 2018. year. JK Paper historically has maintained The outlook of year 2019-20 is looking
China closed many intermediary chemical good business relations with vendors and better and stable. The prices are likely to
plants due to a tightening of environment always treats them as business partners soften from Q2 in year 2019-20; however
legislations, which impacted the availability which helped in a great way to tide over unpredictability of any adverse scenario
of paper chemicals. Raw materials and the the supply crisis. The few longer-term shall remain in the current political global
price of some paper chemicals increased contracts entered at the beginning of the situation and become the new norm in
multifold. The mixed waste paper embargo year helped fend off prices but the overall business.
increased the chemical pulp requirement impact remained negative this year after
RISK MANAGEMENT
Competition risk: The entry of new players Compliance risk: Inability to comply with hectares, ensures round-the-year access to
can reduce the Company’s market share. statutory norms could invite censure. raw materials.
Mitigation: With the huge headroom for Mitigation: The Company has invested in Import risk: Growing import levels could
growth available in the country, the paper cutting-edge technologies to debottleneck affect growth.
industry has become a borderless market its plants. This has enabled the Company Mitigation: The Company’s technological
for international players. The Company is reduce consumption of power, coal and expertise, sizeable capacity and
not just competing with domestic peers water to all-time lows in 2018-19. The marketing focus have strengthened
but also with international giants who are Company’s ISO 9001:2008, ISO 14001:2004 its competitiveness against imports.
offering products at lower prices. JK Paper and OHSAS 18001:2007 certifications speak The Company started using fillers to
has attempted to overcome this challenge volumes about its stringent compliance substitute pulp, reducing its dependence
by differentiating itself on the back of its with relevant qualitative, environmental on imported pulp. Consequent to better
customer-centric last-mile approach and its and safety norms. operating parameters the Company’s cost
brand strengths. Raw material risk: Raw material scarcity of production is competitive and competes
Digitisation risk: In a rapidly digitising can dent profitability. well in the market.
world, paper demand could decline. Mitigation: The main raw material for Resource risk: Excessive water use can
Mitigation: The Company has been pulp is wood and JK Paper has focused on affect resource security in areas proximate
continuously striving to serve its customers developing high-yielding saplings with to mills.
with superior products and its sectoral shorter gestation periods to surge ahead Mitigation: Water consumption per tonne
leadership in the copier paper segment of its peers. JK Paper’s growing investment at the Company’s mills almost halved,
stands as a testament to its qualitative in farm forestry initiatives in Odisha, following the deployment of conservation
excellence. Andhra Pradesh, Chhattisgarh, Gujarat and measures, low water-use technology and
Maharashtra, covering an area of 1.6 lac increasing use of treated effluent water.
FINANCIAL HIGHLIGHTS (H Cr)

2018-19 2017-18
Gross Sales 3,469.19 3,069.68
Net Sales 3,233.64 2,826.25
Profit before interest and depreciation and Tax (PBIDT) 926.05 639.10
Profit before depreciation and tax (PBDT) 803.66 496.08
Profit before tax (PBT) 678.35 375.19
Profit after Tax (PAT) 437.20 260.14
46 | JK Paper Ltd.
DETAILS OF SIGNIFICANT CHANGES ( i.e. change of 25% or more compared to the immediate
previous financial year )
Financial Ratios
S.No Particulars Definition UOM 2018-19 2017-18 % Change Remarks for variation
(i) Debtors Turnover Debtors / Gross Turnover Days 8 13 37% Better working capital
management.
(ii) Inventory Turnover Inventory / Gross Turnover Days 34 47 28% Better working capital
management.
(iii) Interest Coverage EBITDA/Finance Cost Times 7.57 4.47 69% Better performance of the
Ratio Company lower finance
cost.
(iv) Current Ratio Current Assets/Current Times 1.55 1.08 43% Better working capital
Liability management.
(v) Operating Profit EBITDA/Net Sales % 28.6% 22.6% 27% Better performance of the
Margin Company.
(vi) Net Profit Margin PAT/Net Sales % 13.5% 9.2% 47% Better performance of the
Company.
(vii) RONW PAT/Equity % 21.4% 15.8% 35% Better performance of the
Company.
The Company reported an increase of 13% exchange fluctuations on the principal, to ensure that assets are safeguarded,
growth in its net sales due to increased using a mix of instruments including established regulations are complied
better recoveries on its sales, control Forward Contracts, Call Options and Spread with and pending issues are addressed
over costs and enriched product mix. Contracts. promptly. The audit committee reviews
EBITDA increased by 45% to H926.05 Cr reports presented by the internal auditors
The Company’s net debt: equity ratio stood
from H639.10 Cr. The Company’s total net on scheduled intervals. The committee
at 0.34 and its total net debt to EBITDA
indebtedness came down by H362 Cr makes note of the audit observations and
ratio was 0.75, reflective of strong financial
(34.1%) and accordingly, finance costs have takes corrective actions, if necessary. It
fundamentals, which gives the Company
come down by 14%, partly influenced by maintains constant dialogue with statutory
the ability to negotiate a cyclical impact on
a reduction in interest rates post the rating and internal auditors to ensure that internal
its operations.
upgrade. As a consequence of these, control systems are operating effectively.
Profit after Tax (PAT) increased by 68% to The Company strengthened its investor
H437.20 Cr. engagements through quarterly investor
CAUTIONARY STATEMENT
conference calls and meetings. As a result,
During the year, the Company continued This statement made in this section
the number of shareholders increased from
repayments of its debt and improved describes the Company’s objectives,
42,735 to 66,060 between March 31 2018
performance, enabling it to secure a rating projections, expectation and estimations
to March 31, 2019.
upgrade to A+/Stable. During the year, which may be ‘forward-looking statements’
the Company placed NCDs worth H335 Cr The Company will be raising funds required within the meaning of applicable securities
with IFC (W). These NCDs are repayable for its proposed expansion at Unit CPM laws and regulations. Actual results
over a maturity of 10 years. The Company’s though an appropriate mix of foreign could differ materially from those either
fixed rate borrowings stood at 39.04% as currency loans and rupee loans. expressed or implied. Important factors that
on March 31, 2019. Approximately, 21.3% could make a difference to the Company’s
of the Company’s gross borrowings of INTERNAL CONTROL operation include among others, economic
H1,350 Cr were in Foreign Currency. Out of SYSTEMS AND THEIR conditions affecting demand/supply and
this, 100% of the Foreign Currency loans ADEQUACY price conditions, variation in prices of
were covered for interest rate variations The Company’s internal audit system has raw materials, changes in Government
and 81.8% covered for variations of foreign been continuously monitored and updated regulations, tax regimes, economic
developments and other incidental factors.

Directors’ Report
To the Members,
The Directors have pleasure in presenting the 58th Annual Report along with Audited Financial Statements of the Company for the financial
year ended 31st March, 2019.
FINANCIAL RESULTS Profit After Tax (PAT) of B437.20 crore (up 68%). Sales volume also
increased to 522,815 MT.
B in Crore (10 million)
2018-19 2017-18 This was possible due to enhanced realisations on account of
Gross Sales 3,469.19 3,069.68 improved market conditions, enriched product mix, higher
capacity utilization (108.7%), better control on raw material prices
Profit Before Finance Costs and 926.05 639.10
and improved operating efficiencies. JK Paper continued its thrust
Depreciation (PBIDT)
on expanding geographical reach and availability of its products by
Profit before Depreciation and Tax (PBDT) 803.65 496.08
strengthening the distribution network and responding to market
Profit After Tax (PAT) 437.20 260.14
needs by introducing new products. The Company’s efforts at
promoting plantation activity in the vicinity of its manufacturing
DIVIDEND units resulted in a greater proportion of raw material requirement
In view of better financial results, the Directors are pleased to being met out of material sourced from shorter distances. This has
recommend an enhanced Dividend of B3.50 per share (B2.50 sharply cut down the total delivered cost of wood at our units.
previous year) on the expanded Equity Share Capital. The Dividend Both the Units continued to improve their operating efficiencies to
outgo would amount to B75.21 crore (inclusive of Dividend optimize utilization of most inputs. As a consequence, EBIDTA went
Distribution Tax of B12.82 crore). up by 45% to B926.05 crore translating in a margin of 28.6% of net
sales compared to 22.6% during last year.
RESERVES AND APPROPRIATIONS The Company’s improved performance and reduced leveraging
The amount available for appropriation, including surplus from enabled it to get a rating upgrade to A + (stable) for long term
the year stood at B1009.14 crore. The Directors propose this to be debt from CRISIL and India Ratings and A1+ (short term) from India
appropriated as under: Rating. Lower debt and more efficient working capital management
enabled the company to reduce its finance costs by 14.4%. With
(B crore) these, the Profit Before Tax stood at B678.35 crore compared to
General Reserve 200.00 B375.19 crore last year.
Debenture Redemption Reserve 4.74
The Industry scenario both domestic and overseas, the market
Dividend (2017-18) 44.56 and demand supply balance and other operating conditions are
Corporate Dividend Tax 9.16 elaborated in the Management Discussions and Analysis section.
Surplus carried to Balance Sheet 750.68
An amount of B12.72 crore has been transferred to Securities

ACQUISITION BY JK PAPER
During the year, your Company together with its Subsidiary
Premium Reserve on conversion of FCCB.
acquired The Sirpur Paper Mills Limited (SPML). SPML products used
to enjoy reputation and customer confidence over several decades.
PERFORMANCE REVIEW However, beginning 2008-09, SPML started incurring losses and the
Your Company recorded its best ever financial performance with entire net worth was eroded by March 31, 2014.
Gross Sales of B3,469.19 crore (up 13% over the previous year) and
48 | JK Paper Ltd.
The Company had suspended its operations and some operational rate of 12% and is amongst the fastest growing paper and board
creditors made an application under the Insolvency and Bankruptcy segments. This segment is expected to maintain healthy growth
Code (IBC) 2016. The said application was admitted by the Hon’ble rates in the coming years due to changes in organised retail and the
National Company Law Tribunal (NCLT) Hyderabad. quest for more eco-friendly aesthetic packaging.
With a view to protect over 2000 direct jobs and provide livelihood Looking at this growing demand particularly in the high end VFB
to more than ten thousand farmer families through plantation and to participate in the market growth, the Company had decided
activities over a period of time, the Telangana State Government to set up a new Packaging Board facility along with an integrated
had announced tailor made benefits for revival of SPML. On 19-07- chemical pulp mill at Unit CPM. Orders for critical equipments and
2018, the Resolution Plan submitted by JKPL and its Subsidiary was some other areas have been finalised. The Packaging Board Project
approved by the NCLT. The Company settled all the dues as per the is likely to cost about B1900 crore (net of GST). Once completed the
Resolution plan and the management was taken over on 01-08- capacity for VFB will increase to 270,000 TPA along with a pulping
2018, on making it one of the earliest successful resolutions in the capacity of 160,000 TPA. The new project is likely to take 24 months
country under the IBC Process. from zero date to commence production. Post completion of this
project JK Paper will be the second largest producer of VFB in the
Revival/reconditioning activities commenced at SPML which was
country.
shut for over 4 years, on August 1, 2018. SPML had 8 machines
which produced a maximum of around 99,000 TPA as its highest The Company also made several de-bottlenecking and cost
production before the shut down during 2014-15. It was decided optimising investments in critical areas like head box, steam and
to revamp and modernize four paper machines along with the pulp power systems, finishing equipment, refiners, chemical processing,
mill and phase out four smaller machines. With the modification, effluent discharge etc. in its existing facilities during the year
SPML’s capacity will be 1,36,000 TPA. The paper machines will be totalling over B94 crore.
re-started in stages and the Mill is expected to be operational
in the second half of Financial Year 2019-20. The Company has CAPITAL STRUCTURE
invested B371 crore in the takeover of SPML. The Mill is also being During the year under review, remaining FCCBs of Euro 2.4 million
reconditioned and revived at an additional cost of about B400 crore. were converted, resulting in increase in paid up Equity Capital of the
This integrated pulp & paper unit, has an advantageous geographic Company from B175.50 crore to B178.24 crore. The Company has
location in close proximity of Peddavagu River, raw material sources issued 33,500 rated, unlisted, secured, redeemable, non-convertible
and Singareni Collieries, the Sirpur Kaghaznagar railway station and debentures aggregating to B335 crore on private placement basis.
is well connected to national highway No. NH-7, which facilitates
cost effective transportation of raw material and finished goods to COMPLIANCE WITH SECRETARIAL STANDARDS
customers. With the location advantage, modernised machines and The applicable Secretarial Standards issued under Section 118 of the
the incentives offered by the Government of Telangana, it is hoped Companies Act 2013 have been complied with.
that the Mill will become profitable in near future.
This acquisition will provide synergistic advantage to JK Paper AWARDS AND RECOGNITION
both in terms of a strategically located manufacturing facility as Our commitment towards Safety & Environment, Quality &
well as access to raw material. It will more than double JK Paper’s Operational Excellence and HR practices continue to garner
uncoated printing & writing (white wood free) paper capacity and appreciation from various industry chambers and social bodies.
also supplement its product portfolio including some specialty Some of the accolades and awards received during the year are as
products. The acquisition will take the combined capacity for the follows:
Company to 5,91,000 MT.
a. Awarded IPMA Paper Mill of the year 2017-18 by the Indian
Paper Manufacturers Association (IPMA).
EXPANSION PROJECT b. CII Energy Efficient Unit & Innovative Project at 19th National
The Company commenced virgin fibre boards (VFB) production in
Award for Excellence in Energy Management.
the year 2005-06 with an initial capacity of 60,000 TPA at unit CPM
c. Certificate of Appreciation at the National Energy Conservation
which was enhanced to 90,000 TPA and current production is about
Award 2018 in Pulp and Paper Sector, by BEE, Govt. of India.
100,000 TPA. This segment is growing at an annual compounded

d. Certificate of Appreciation for good practices in Quality system’ RELATED PARTY TRANSACTIONS
at 6th FICCI Quality System Excellence Award for Industry 2018. During the financial year ended 31st March 2019, all the contracts
e. Certificate of Appreciation for Commitment in Learning & or arrangements or transactions entered into by the Company with
Development to achieve Business Excellence at 13th Edition the Related Parties were in the ordinary course of business and
Annual BML Munjal Awards-2018, by Hero Corporate Service on arm’s length basis and were in compliance with the applicable
Private Ltd. provisions of the Companies Act, 2013 and SEBI (Listing Obligations
f. Winner of 12th TPM Circle competition in Jishu Hozen activity & Disclosure Requirements) Regulations, 2015.
by CII TPM Club of India. Further, the Company has not entered into any contract or
g. Certificate of Appreciation along with 3-star rating in safety at arrangement or transaction with the Related Parties which could be
SHE Excellence Award -2018 by CII, Eastern Region, Kolkata. considered material in accordance with the Policy of the Company
h. 17th Annual Greentech Safety Gold Award 2018. on materiality of Related Party Transactions. In view of the above,
disclosure in FORM AOC-2 is not applicable.
i. Winner of CII Jishu Hozen Champion’s Trophy 2018.
The Related Party Transaction Policy as approved by the Board is
available on the website of the Company.
INDUSTRIAL RELATIONS
Industrial Relations at both units continued to remain peaceful and
cordial throughout the year barring some minor incidents which DIRECTORS AND KEY MANAGERIAL
were amicably resolved by continuous dialogues and support by PERSONNEL
our existing unions, worker’s representatives, local stakeholders Smt. Vinita Singhania retires by rotation and being eligible offers
and district administration. We value the long association of our herself for re-appointment at the ensuing Annual General Meeting
contractors and their workmen to sustain industrial harmony and (AGM).
create a positive work environment. By introducing various new
During the year under review Shri A.S. Mehta was appointed as
work practices along with automation we have succeeded in
“President & Director” of the Company w.e.f. 01.10.2018 till 31.3.2022,
enhancing manpower productivity & attendance to the optimum.
pursuant to the Special Resolution, passed by Shareholders of the
We encourage continuous interaction, dialogues and participation
Company through Postal Ballot on 28.09.2018. He has also been
of local villagers, stakeholders in collaborating various social
appointed, w.e.f. 01.10.2018, (i) as whole time Key Managerial
intervention through our various CSR programs.
Personnel and (ii) as an Additional Director of the Company by the
Board of Directors to hold office as Director upto the date of the
EXTRACT OF ANNUAL RETURN ensuing AGM of the Company.
An extract of the Annual Return as on 31st March 2019 in the
Shri S.K. Roongta was appointed as an Additional Director of the
prescribed form MGT -9 is attached as Annexure-1 to this Report
Company w.e.f 12.2.2019 to hold office as Director upto the date of
and forms part of it.
the ensuing AGM of the Company.
Shri O. P. Goyal has ceased to be a Whole Time Director of the

PARTICULARS OF LOANS, GUARANTEES OR
Company w.e.f. 30.09.2018, upon completion of his existing term.
INVESTMENTS
He has also ceased w.e.f.30.09.2018 to be a (i) Director and (ii) whole
The particulars of loans, guarantees or securities and investments
time Key Managerial Personnel, of the Company. The Board wishes
covered under the provisions of Section 186 of the Companies Act,
to acknowledge the services rendered and valuable contribution
2013 are given in the financial statements.
made by Shri O.P Goyal during his tenure in office as Whole Time
The Company has not made any provision during the financial Director and in various other capacities for over 3 decades.
year 2018-19 for the purchase of, or subscription for, shares in the
Shri Wilhelmus Johannes Maria Wienk was nominated as a
Company by trustees of JK Paper Employees’ Welfare Trust for the
Nominee Director on the Board of the Company pursuant to the
welfare of the employees of the Company, for the shares to be held
Subscription Agreements for Foreign Currency Convertible Bonds
by or for the benefit of the employees of the company.
(FCCBs), between the Company and three European Development
Institutions. Since these FCCBs have now been redeemed/ converted
into Equity Shares of the Company and the said FCCB Holders are
50 | JK Paper Ltd.
not holding any equity shares of the Company, he has resigned as follows a Compliance monitoring software tool to capture status of
a Director of the Company w.e.f. 12.11.2018. The Board wishes to all applicable statutory compliances on line.
place on record its sincere appreciation for valuable support and
The Company has also developed a set of documented Risk Control
suggestions received from Mr Wienk during his tenure.
Matrices for all major functions and no material reportable weakness
All the six Independent Directors of the Company, namely Shri was observed during the year.
Arun Bharat Ram, Shri M.H. Dalmia, Shri R.V. Kanoria, Shri Shailendra
The Company also has a comprehensive budgetary control system
Swarup, Shri Udayan Bose and Shri Sandip Somany, who were
in sync with its Strategic Business Plan. Key performance targets are
appointed by the members at the AGM held on 27th September
set for each Plant and product lines. The actual performance against
2014 under Section 149 of the Act for a term of five consecutive
these targets is periodically monitored and corrective actions as
years, are proposed to be reappointed by the Shareholders at
needed are initiated.
the ensuing AGM of the Company by Special Resolution(s), as
Independent Directors of the Company, to hold office for another
term of (a) three consecutive years for Shri Arun Bharat Ram & Shri CORPORATE SOCIAL RESPONSIBILITY
M.H.Dalmia, (b) four consecutive years for Shri Shailendra Swarup Your Company considers the community as its key stakeholder
and (c) five consecutive years for Shri R.V.Kanoria, Shri Sandip and is one of the foremost proponents of inclusive growth and
Somany & Shri Udayan Bose, w.e.f 23rd August 2019. has continued to undertake projects for overall development and
welfare of the society in the fields of environment, conservation
All the Independent Directors of the Company have given requisite of natural resources, health, education, rural development and
declarations that they meet the criteria of independence as livelihood interventions etc.
provided in Section 149(6) of the Companies Act, 2013 and also
Regulation 16(1)(b) of SEBI (Listing Obligations and Disclosure The Company has a Corporate Social Responsibility (CSR) Policy in
Requirements) Regulations, 2015 and that they are not aware of accordance with the provisions of the Companies Act 2013 and
any circumstances or situation, which exist or may be reasonably rules made there under. The contents of the CSR Policy are disclosed
anticipated, that could impair or impact their ability to discharge on the website of the Company.
their duties with an objective independent judgment and without Annual Report on the CSR activities undertaken by the Company
any external influence. during the financial year under review, in the prescribed format is
There was no change in Managing Director, Chief Finance Officer annexed to this Report as Annexure-2.
and Company Secretary, during the year under review. Shri Harsh
Pati Singhania, Vice Chairman & Managing Director of the Company
AUDITORS
(a) Statutory Auditors and their Report
received an honorarium of B4.60 lac, for the period from 13th
M/s Lodha & Co., Chartered Accountants, have been appointed as
November 2018 to 31st March 2019, as an Advisor from The Sirpur
Auditors of the Company to hold office from the conclusion of the
Paper Mills Ltd., a step down subsidiary and a related party of the
56th Annual General Meeting (AGM) held in the year 2017 till the
Company.
conclusion of 61st AGM of the Company to be held in the 2022,
subject to ratification of the appointment by the members at the
INTERNAL CONTROL SYSTEM respective AGMs. However, the provision relating to ratification of
The Company follows a robust internal control mechanism across such appointment by Members at every Annual General Meeting
all offices, plants and key functions. There is a Corporate Internal stands deleted w.e.f. 7th May 2018 by the Companies (Amendment)
Audit team consisting of qualified professionals and system experts. Act 2017 and accordingly the said ratification is henceforth not
In addition, services of external Audit firms and other specialized required. The observations of the Auditors in their report on
agencies are also availed as and when needed to further strengthen Accounts and the Financial Statements, read with the relevant notes
its effectiveness. Regular internal audits are conducted to review the are self explanatory.
internal control systems and compliance thereof as per the annual
audit plan approved by Audit Committee of the Board. The findings (b) Secretarial Auditor and Secretarial Audit Report
of the Audit team are periodically reviewed by the Audit Committee The Board of Directors appointed Shri Namo Narain Agarwal,
and corrective actions are initiated. In addition, the Company also Company Secretary in Practice as Secretarial Auditor to carry out
Secretarial Audit of the Company for the financial year 2018-19. The

Report given by him for the said financial year in the prescribed others entitled thereto, excluding the said particulars of employees. 
format, pursuant to the provisions of Section 204 of the Companies Any member interested in obtaining such particulars may write to
Act, 2013 and Rule 24A of SEBI (Listing Obligations and Disclosure the Company Secretary.  The said information is also available for
Requirements) Regulations, 2015, is annexed to this Report as inspection at the Registered Office of the Company during working
Annexure-3. The Secretarial Audit Report does not contain any hours.
qualification, reservation or adverse remark.
CORPORATE GOVERNANCE
(c) Cost Auditor and Cost Audit Report
Your Company reaffirms its commitment to the highest standards
The Cost Audit for the financial year ended 31st March 2018 was
of corporate governance practices. Pursuant to Regulation 34
conducted by M/s R.J. Goel & Co., Cost Accountants, Delhi and
read with Schedule V of SEBI (Listing Obligations and Disclosure
as required Cost Audit Report was duly filed with the Ministry of
Requirements) Regulations, 2015, Management Discussion and
Corporate Affairs, Government of India. The Audit of the Cost
Analysis, Corporate Governance Report and Auditors Certificate
Records for the financial year ended 31st March 2019, is being
regarding compliance of conditions of Corporate Governance are
conducted by the said firm and the Report will also be filed with the
made part of this Annual Report.
Ministry of Corporate Affairs, Government of India.
The Corporate Governance Report which forms part of this Annual
Report also covers the following:
SIGNIFICANT AND MATERIAL ORDERS
PASSED BY THE REGULATORS OR COURTS OR a. Particulars of five Board Meetings held during the financial year
TRIBUNALS under review.
During the financial year under review, the Company, as Resolution
b. Policy on Nomination and Remuneration of Directors, Key
Applicant along with its Subsidiary, had acquired, The Sirpur Paper
Managerial Personnel and Senior Management including, inter
Mills Ltd, on 1st August 2018 pursuant to the Order of the Hon’ble
alia, the criteria for performance evaluation of Directors.
Hyderabad Bench of National Company Law Tribunal, dated 19th
July, 2018 under the Insolvency and Bankruptcy Code, 2016, which c. The manner in which formal annual evaluation has been made
became a subsidiary of the Company. by the Board of its own performance and that of its Committees
and individual Directors.
MATERIAL CHANGES AND COMMITMENTS d. The details with respect to composition of Audit Committee
The Company has finalized capital purchase orders for its proposed and establishment of Vigil Mechanism.
project at Unit CPM. The details of expenditure are given in the para
e. Details regarding Risk Management.
on Expansion Project.
f. Dividend Distribution Policy.
CONSERVATION OF ENERGY ETC. g. Details relating to the constitution of Internal Complaints

The details as required under Section 134(3)(m) read with the Committee under the Sexual Harassment of Women at
Companies (Accounts) Rules, 2014 is annexed to this Report as Workplace (Prevention, Prohibition and Redressal) Act, 2013.
Annexure-4 and forms part of it.
SUSTAINABILITY AND BUSINESS
PARTICULARS OF REMUNERATION RESPONSIBILITY REPORT
Disclosure of the ratio of the remuneration of each Director to Pursuant to Regulation 34(2)(f ) of the SEBI (Listing Obligations and
the median employee’s remuneration and other requisite details Disclosure Requirements) Regulations 2015, the Sustainability and
pursuant to Section 197(12) of the Companies Act, 2013 read with Business Responsibility Report of the Company for the year ended
Rule 5 (1) of the Companies (Appointment and Remuneration of 31st March 2019 is given in a separate section and forms part of this
Managerial Personnel) Rules, 2014, is annexed to this Report as report.
Annexure-5.  Further, Particulars of Employees pursuant to Rule
5(2) & (3) of the above Rules, form part of this Report. However, in CONSOLIDATED FINANCIAL STATEMENTS
terms of provisions of Section 136 of the said Act, the Report and During the financial year under review, The Sirpur Paper Mills Limited
Accounts are being sent to all the members of the Company and became your Company’s subsidiary.
52 | JK Paper Ltd.
The consolidated financial statements have been prepared by the and prudent so as to give a true and fair view of the state of
Company in accordance with the applicable Accounting Standards. affairs of the Company at the end of the financial year and of the
The Audited consolidated financial statements together with profit of the Company for that period;
Auditors’ Report form part of the Annual Report.
c. proper and sufficient care has been taken for the maintenance of
A report on the performance and financial position of each of the adequate accounting records in accordance with the provisions
subsidiaries & joint ventures included in the Consolidated Financial of the said Act for safeguarding the assets of the Company and
Statements is presented in a separate section in this Annual Report. for preventing and detecting fraud and other irregularities;
Please refer to AOC-1 annexed to the Financial Statements in the
d. the annual accounts have been prepared on a going concern
Annual Report.
basis;
Pursuant to the provisions of Section 136 of the Act, the financial
e. the proper internal financial controls to be followed by the
statements of the Company, Consolidated Financial Statements
Company have been laid down and that such internal financial
along with relevant documents and separate audited accounts in
controls are adequate and were operating effectively; and
respect of subsidiaries are available on the website of the Company.
f. the proper systems have been devised to ensure compliance
with the provisions of all applicable laws and that such systems
DEPOSITS
were adequate and operating effectively.
Pursuant to the approval of members by means of a Special
Resolution at the AGM held on 27th September 2014, the Company
is accepting deposits from the public, in accordance with the ACKNOWLEDGEMENT
provisions of the Companies Act, 2013 and rules thereunder. Your Directors acknowledge the unstinted support and cooperation
received from the Central Government, State Governments,
The particulars in respect of the deposits covered under Chapter
Shareholders, participating Financial Institutions and Banks,
V of the said Act, for the financial year ended 31st March 2019 is
Customers, Dealers and Suppliers.
annexed to this Report as Annexure-6.
The Board wishes to record its highest appreciation of the total
commitment, dedication and hard work, put in by every employee
DIRECTORS’ RESPONSIBILITY STATEMENT
and member of the Team JK Paper.
As required under Section 134(3)(c) of the Companies Act, 2013,
your Directors state that:
a. in the preparation of the annual accounts, the applicable

accounting standards have been followed along with proper
explanation relating to material departures, if any;
b. the accounting policies have been selected and applied

consistently and judgments and estimates made are reasonable
On behalf of the Board of Directors
New Delhi Bharat Hari Singhania
Date : 8th May, 2019 Chairman

ANNEXURES TO THE DIRECTORS’ REPORT FOR THE YEAR ENDED 31st MARCH, 2019
Annexure 1
FORM NO. MGT 9
EXTRACT OF ANNUAL RETURN
As on the financial year ended on 31st March 2019
[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 M/s MCS Share Transfer Agent Limited
Transfer Agent, if any. F-65, 1st Floor, Okhla Industrial Area
Phase – I, New Delhi -110 020
Ph. No. : 91-11- 41406149-50 | 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 products / services NIC Code of the Product/service % to total turnover of the company
1. Paper and Paper board 1701 100%
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

SI. Name and Address of the Company CIN/GLN Holding/ Subsidiary/ % of Applicable
No. Associate Shares held Section
1 Jaykaypur Infrastructure & Housing Ltd. U45201OR2008PLC010523 Wholly Owned 100 2(87)
JK Paper Mills, Jaykaypur – 765 017 Subsidiary
Rayagada, Odisha
2 Songadh Infrastructure & Housing Ltd. U45203GJ2009PLC055810 Wholly Owned 100 2(87)
P. O. Central Pulp Mills- 394660 Subsidiary
Fort Songadh, Distt.Tapi, Gujarat
3 JK Enviro-tech Ltd. U73100GJ2007PLC075963 Subsidiary 92.85 2(87)
P. O. Central Pulp Mills- 394660
Fort Songadh, Distt.Tapi, Gujarat
4 JK Paper International (Singapore) Pte.Ltd. Not Applicable Wholly Owned 100 2(87)
10 JalanBesar, #10-03, Sim Lim Tower Subsidiary
Singapore (208787)
5 The Sirpur Paper Mills Limited L21010TG1938PLC000591 Subsidiary 71.26* 2(87)
5-9-22/1/1, 1st Floor, Adarsh Nagar Hyderabad,
Telegana- 500463
*Represents aggregate % of shares held by the Company alongwith its subsidiary namely JK Enviro-tech Limited.
54 | JK Paper Ltd.
IV. SHAREHOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL
EQUITY) #
(i) Category-wise Share Holding
No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
(As on 01.04.2018) (As on 31.03.2019) during the
Category of Shareholders
Demat Physical Total % of Total Demat Physical Total % of Total year
Shares Shares
A. Promoters*
(1) Indian
a) Individual/ HUF 1406443 0 1406443 0.80 1416443 0 1416443 0.79 -0.01
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 48.37 84883568 0 84883568 47.62 -0.75
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) 86290011 0 86290011 49.17 86300011 0 86300011 48.41 -0.76
(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 86290011 0 86290011 49.17 86300011 0 86300011 48.41 -0.76
Promoter (A) = (A)(1) + (A)(2)*
B. Public Shareholding
1. Institutions
a) Mutual Funds 1830888 0 1830888 1.04 1363766 0 1363766 0.77 -0.27
b) Banks / FI 51276 0 51276 0.03 129989 0 129989 0.07 0.04
c) Central Govt 12021 0 12021 0.01 12021 0 12021 0.01 0
d) State Govt(s) 0 0 0 0 0 0 0 0 0
e) Venture Capital Funds 0 0 0 0 0 0 0 0 0
f) Insurance Companies 1898342 0 1898342 1.08 1010448 0 1010448 0.57 -0.51
g) FIIs 11624202 0 11624202 6.62 10897457 0 10897457 6.11 -0.51
h) Foreign Venture Capital Funds 0 0 0 0 0 0 0 0 0
i) Others 0 0 0 0 0 0 0 0 0
(i) International Finance 7690000 0 7690000 4.38 0 0 0 0 -4.38
Corporation
Sub-total (B)(1):- 23106729 0 23106729 13.16 13413681 0 13413681 7.53 -5.63
2. Non-Institutions
a) Bodies Corp.
i) Indian 11445568 150 11445718 6.52 12838492 150 12838642 7.20 0.68
* The total shareholding of Promoters at (A) above includes 4,98,71,712 Equity Shares (28.42%) as on 1.4.2018, 4,98,81,712 Equity Shares (27.98%) as on
31.3.2019 and a change of 0.44% during the year pertaining to constituents of the Promoter Group as per SEBI (Issue of Capital & Disclosure Requirements)
Regulations, 2009. The same does not form part of the Promoters as defined in the Companies Act, 2013.

No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
(As on 01.04.2018) (As on 31.03.2019) during the
Category of Shareholders
Demat Physical Total % of Total Demat Physical Total % of Total year
Shares Shares
ii) Overseas 0 0 0 0 0 0 0 0 0
b) Individuals
i) Individual shareholders 19970614 30449 20001063 11.40 25035316 26621 25061937 14.06 2.66
holding nominal share capital
upto B1 lakh
ii) Individual shareholders 21993115 4013500 26006615 14.82 29550040 4013500 33563540 18.83 4.01
holding nominal share capital
in excess of B1 lakh
c) Others
(i) Trust and Foundation 1259878 0 1259878 0.72 1264978 0 1264978 0.71 -0.01
(ii) Non Resident Individuals 4583836 297000 4880836 2.78 2937776 297000 3234776 1.81 -0.97
(iii) OCB 2500000 0 2500000 1.42 2500000 0 2500000 1.40 -0.02
(iv) Societies 10000 0 10000 0.01 5000 0 5000 0.00 -0.01
(v) NBFCs registered with SEBI 0 0 0 0 61020 0 61020 0.03 0.03
Sub-total (B)(2):- 61763011 4341099 66104110 37.67 74192622 4337271 78529893 44.06 6.39
Total Public Shareholding 84869740 4341099 89210839 50.83 87606303 4337271 91943574 51.59 0.76
(B)=(B)(1)+ (B)(2)
C. Shares held by Custodian for 0 0 0 0 0 0 0 0 0
GDRs & ADRs
Grand Total (A+B+C) 171159751 4341099 175500850 100 173906314 4337271 178243585 100 0
(ii) Shareholding of Promoters

SI. Shareholder’s Name Shareholding at the beginning of the year Shareholding at the end of the year % change in
No. (as on 1st April 2018) (as on 31st March 2019) shareholding
No. of Shares % of total %of Shares No. of Shares % of total %of Shares during the
Shares of the Pledged / Shares of the Pledged / year
company encumbered company encumbered
to total shares to total shares
1 Bengal & Assam Company Ltd. 36418299 20.75 - 36418299 20.43 -
-0.32
Total 36418299 20.75 - 36418299 20.43 -
(iii) Change in Promoters’ Shareholding (please specify, if there is no change)

SI. Shareholding at the beginning of the year Cumulative Shareholding
No. (as on 1st April 2018) during the year
No. of shares % of total shares of No. of shares % of total shares of
the company the company
1 Bengal & Assam Company Ltd.
At the beginning of the year 36418299 20.75 36418299 20.75
Change in Promoter’s Shareholding No Change
At the end of the year i.e., 31.03.2019. 36418299 20.43
56 | JK Paper Ltd.
(iv) Shareholding Pattern of top ten shareholders (Other than Directors, Promoters and Holders of GDRs and ADRs)
SI. Top Ten Shareholders Shareholding at the beginning of the year Cumulative Shareholding at the end of the
No. (1st April 2018) year (31st March 2019)
No. of Shares % of total Shares of No. of Shares % of total Shares of
the Company the Company
1 BMF Investments Limited 30089797 17.15 30089797 16.88
2 Florence Investech Limited 11833332 6.74 11833332 6.64
P.K. Khaitan jointly with S.K. Somany-Trustees, JK Paper 9828655 5.60 9828655 5.51
3
Employees Welfare Trust
4 J.K. Credit & Finance Limited 3575000 2.04 3575000 2.01
5 Edgefield Securities Limited 2500000 1.42 2500000 1.40
6 Dolly Khanna 245859 0.14 1910749 1.07
7 Acadian Emerging Markets Small Cap Equity Fund LLC 1300477 0.74 1334129 0.75
8 Pulp and Paper Research Institute 1237978 0.70 1237978 0.69
9 Nav Bharat Vanijya Limited 1191000 0.68 1191000 0.67
10 Juggilal Kamlapat Udyog Limited 1190000 0.68 1190000 0.67
Note: Around 97% 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.
(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 of the year Cumulative Shareholding
(as on 1st April 2018) during the Year
Date wise Increase/Decrease in Shareholding during the year No Change
At the end of the year i.e. 31.03.2019 100000 0.06
2. Shri Harsh Pati Singhania, Vice Chairman & Managing Director

3. Smt. Vinita Singhania, Director

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 Sh. A.S. Mehta, Directors 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 2018 and at the end of the year i.e, as
on 31st March 2019 and hence there was no increase/decrease in their shareholding during the financial year 2018-19.
#The Paid up Equity Shares of the Company increased from 17,55,00,850 to 17,82,43,585 during the year consequent upon the conversion of the Foreign
Currency Convertible Bonds (FCCBs) (Series 5) into 27,42,735 Equity Shares of the Company to the holders of such FCCBs.

V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
(B in Crore)
Secured Loans Unsecured Loans Deposits Total
excluding Indebtedness
deposits
Indebtedness at the beginning of the financial year
i) Principal Amount 1230.20 50.19 29.14 1309.53
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 12.07 0.53 3.05 15.65
Total (i+ii+iii) 1242.27 50.72 32.19 1325.18
Change in Indebtedness during the financial year
• Addition 537.73 - 21.98 559.71
• Reduction 455.02 50.72 19.18 524.92
Net Change 82.71 -50.72 2.80 34.79
Indebtedness at the end of the financial year
i) Principal Amount 1317.30 - 32.41 1349.71
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 7.67 - 2.59 10.26
Total (i+ii+iii) 1324.97 - 35.00 1359.97
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager
(B in Crore)
Name of MD/WTD/Manager
Sh. Harsh Pati Sh. O.P. Goyal* Sh. A.S. Mehta **
Singhania (Whole-time Director) (President & Director)
SI.
Particulars of Remuneration (Vice Chairman & (From 1.4.2018 to (From 1.10.2018 to Total Amount
No.
Managing Director) 30.9.2018) 31.3.2019)
(From 1.4.2018 to
31.3.2019)
1 Gross salary
(a) Salary as per provisions contained in section 17(1) 7.74 1.95 2.03 11.72
of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 0.91 0.02 0.01 0.94
1961
(c) Profits in lieu of salary under section 17(3)
Income- tax Act, 1961
2 Commission 16.75 0.05 0.10 16.90
- as % of profit
3 Others: Contribution to Provident Fund and 0.56 0.07 0.07 0.70
Insurance
Total (A) 25.96 2.09 2.21 30.26
B69.85 crores (being 10% of the net profits of the Company calculated as per Section 198 of the
Ceiling as per the Act
Companies Act, 2013)
(The Company does not have Sweat Equity/Scheme for stock option.
*Shri O.P. Goyal ceased to be a Whole time Director w.e.f. 30.09.2018.
** Sh. A.S. Mehta was appointed as President &Director w.e.f. 1.10.2018.
58 | JK Paper Ltd.
B. Remuneration to other Directors
(B in Crore)
SI. Particulars of Total
Name of Directors
No. Remuneration Amount
1. Independent Directors Sh. Arun Sh. M.H. Sh. R. V. Sh. Sandip Sh. Udayan Sh. Shailendra
Bharat Ram Dalmia Kanoria Somany Bose Swarup
• Fee for attending Board/ 0.07 0.02 0.05 0.02 0.06 0.02 0.24
Committee Meetings
• Commission 0.16 0.16 0.16 0.16 0.16 0.16 0.96
Total (1) 0.23 0.18 0.21 0.18 0.22 0.18 1.20
2. Other Non-executive Sh. Bharat Sh. Dhirendra Smt. Vinita Sh. Wim Wienk^ Shri S.K.
Directors Hari Singhania Kumar Singhania Roongta**
(Chairman)
• Fee for attending Board /
0.07 0.03 0.03 0.01 0.01 0.15
Committee Meetings
• Commission 2.00 0.16 0.16 0.10 0.02 2.44
Total (2) 2.07 0.19 0.19 0.11 0.03 2.59
Total(B)= (1+2) 3.79
Total Managerial
34.05
Remuneration (A+B)
Overall Ceiling as per the Act B76.83 Crore (being 11% of the net profits of the Company as per Section 198 of the Companies Act, 2013)
* Total Managerial Remuneration to Vice Chairman &Managing Director, Whole-time Director, President & Director and other Directors (being the total of A and
B) includes, sitting fees of B0.38 crores.
**Sh. S.K. Roongta joined as a Director w.e.f. 12.02.2019
^Sh. Wilhelmus Johannes Maria Wienk, ceased to be a Director w.e.f. 12.11.2018.
C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD

(B in Crore)
Key Managerial Personnel
SI.
Particulars of Remuneration Sh. V. Kumaraswamy, Sh. Suresh Chander Gupta,
No. Total
Chief Finance Officer Vice President & Company Secretary
1 Gross salary
(a) Salary as per provisions contained in section 17(1) 3.02 0.94 3.96
of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 0.02 0.02 0.04
(c) Profits in lieu of salary under section 17(3) Income- - - -
tax Act, 1961
2 Others: Contribution to Provident Fund and 0.08 0.001 0.08
Insurance
Total 3.12 0.96 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 March 31, 2019.

Annexure 2
ANNUAL REPORT ON THE CSR ACTIVITIES UNDERTAKEN BY THE COMPANY DURING THE
FINANCIAL YEAR ENDED 31ST MARCH 2019
1. A brief outline of the Company’s CSR Policy, including overview 2. The Composition of the CSR Committee:
of projects or programs proposed to be undertaken and a
The CSR Committee comprises of the following Directors:
reference to the web-link to the CSR policy and projects or
 Shri Harsh Pati Singhania (Chairman of the Committee), Non-
programs-
independent
The Company has been one of the foremost proponents
 Shri Shailendra Swarup, Independent
of inclusive growth and has been undertaking projects for
 Shri A.S.Mehta, Non-independent
overall development and welfare of the society through its
3. Average Net Profit/(loss) of the Company for last three financial
CSR initiatives in areas pertaining to promoting preventive
years: B234.65 crore.
healthcare, education, rural development, environmental
sustainability and conservation of natural resources, etc. 4. Prescribed CSR Expenditure (two percent of the amount as
in item 3 above): B4.69 crore. However, Committee members
The Company has framed a CSR Policy as required under
decided to spend an enhanced amount of B4.75 crore.
Section 135 of the Companies Act 2013. The details of the CSR
Policy has been posted on the website of the Company and the 5. Details of CSR spent during the financial year
web-link for the same ishttp://www.jkpaper.com/images/pdf/ a. Total amount to be spent for financial year: B4.75 crore
Corporate-Social-Responsibility-Policy.pdf b. Amount unspent, if any: B1.40 crore
c. Manner in which the amount spent during the financial year:
(B in lacs)
Sr. CSR project or Sector in which the project is covered Projects/programs Amount Amount spent Cumulative Amount
No. activity identified (1) Local area/ outlay on the projects expenditure spent Direct
others- (budget) or programs upto the or through
(2) Specify the project or Subheads: reporting implementing
State and district programs- (1) Direct period agency
where projects or wise expenditure
Programs were on projects or
undertaken programs
(2) Overhead:
(1) (2) (3) (4) (5) (6) (7) (8)
1. Mobile Medical Tapi (Gujarat) 38.15 27.65 27.65 Sparsh
Camps
Managing Sickle Cell
Anaemia
Eye Care Services Eradicating hunger, poverty and malnutrition; promoting
health care including preventive health care & sanitation
2. Providing safe
including contribution to the ‘Swachch Bharat Kosh’ set up
Tapi (Gujarat) 28.86 32.55 32.55 Sparsh
drinking water
by the central government for the promotion of sanitation
Providing sanitation
and making available safe drinking water.
facilities/Solid Waste
Management
3. Combating Tapi & Nandod 3.00 3.00 3.00 Sparsh
Malnutrition (Narmada)
60 | JK Paper Ltd.
Sr. CSR project or Sector in which the project is covered Projects/programs Amount Amount spent Cumulative Amount
No. activity identified (1) Local area/ outlay on the projects expenditure spent Direct
others- (budget) or programs upto the or through
(2) Specify the project or Subheads: reporting implementing
State and district programs- (1) Direct period agency
where projects or wise expenditure
Programs were on projects or
undertaken programs
(2) Overhead:
(1) (2) (3) (4) (5) (6) (7) (8)
4. Promoting basic Others (Umarpada, 10.58 10.20 10.20 Sparsh
educational Surat, Gujarat)
infrastructural
services in tribal area/ Rayagada (Odisha) 45.00 - - -
Remedial Education &
Scholarships
5. Promotion of Tapi (Gujarat) 192.93 158.05 158.05 Sparsh
Sustainable
Agriculture and Allied Promoting education, including special education and
Activities employment enhancing vocational skills especially among
Entrepreneurship children, women, elderly, and the differently abled &
Development livelihood enhancement projects.
(Livelihood Business
Enterprise Project)
Farmer Club,
Group Based Solar
Irrigation, Rural Mart,
Rural Haat, Seed
Support, Mushroom
Cultivation
6. Supporting Promoting gender equality and empowering women, Tapi (Gujarat) 54.33 44.27 44.27 Sparsh
SHGs to income setting up homes and hostels for women and orphans;
enhancement setting up old age homes, day care centres and such other
facilities for senior citizens and measures for reducing
inequalities faced by socially and economically backward
groups;
7. Construction of Multi Rural Development Projects Tapi (Gujarat) 102.15 59.37 59.37 Sparsh
Purpose Sheds in
schools/other infra
related works
TOTAL 475.00 335.09 335.09
6. Reasons for shortfall: authorities got delayed. Permissions for 6 centers out of 10
applied have been received and will be started in the academic
(i) An outlay of B56 lakhs provided for Solar Irrigation at 10 sites in
session beginning May 2019. B10 lakhs was earmarked for this
Rayagada has not been taken as spent since the boring at the
project.
sites encountered rocky terrain, the work therefore could not
(iv) Rural Haat project budgeted at B20 lakhs could not be started
be completed before 31st March, 2019, it is expected that all
on account of delay in project sanctioning at NABARD.
sites will be operational by 30th June 2019.
(v) B30 lakh budgeted for Interactive Remote Teaching (IRT)
(ii) A partnership project with an outlay of B24 lakhs with NSDC
was not spent as the feasibility study conducted pointed out
on women enterprise development has been deferred to next
inadequate availability of broadband as a major barrier in the
year as the SHG’s identified for this program lacked adequate
project implementation.
capability and they need capacity building training on
enterprise development. 7. The CSR Committee confirms that the implementation and
(iii) Remedial Education Centers Projects could not be implemented monitoring of CSR Policy, is in compliance with CSR objectives
in FY 2018-19 as the permissions required from the district and Policy of the Company.
A.S.Mehta Harsh Pati Singhania
Date : 8th May, 2019 President & Director Chairman, CSR Committee

Annexure 3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2019
[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,
The Members,
JK Paper Limited,
P.O. Central Pulp Mills - 394660
Fort Songadh, Dist. Tapi,
Gujarat
I have conducted the secretarial audit of the compliance of applicable (a) The Securities and Exchange Board of India (Substantial
statutory provisions and the adherence to good corporate practices Acquisition of Shares and Takeovers) Regulations, 2011;
by JK Paper Limited (hereinafter called ‘the Company’). Secretarial (b) The Securities and Exchange Board of India (Prohibition of
Audit was conducted in a manner that provided me a reasonable Insider Trading) Regulations, 2015;
basis for evaluating the corporate conducts/statutory compliances
(c) The Securities and Exchange Board of India (Issue of Capital
and expressing my opinion thereon.
and Disclosure Requirements) Regulations, 2009/2018;
Based on my verification of the Company’s books, papers, minute (d) The Securities and Exchange Board of India (Share Based
books, forms and returns filed and other records maintained by the Employee Benefits) Regulations, 2014 -(Not applicable to
Company and also the information provided by the Company, its the Company during the Audit Period);
officers, agents and authorized representatives during the conduct
(e) The Securities and Exchange Board of India (Issue and
of secretarial audit, I hereby report that in my opinion, the Company
Listing of Debt Securities) Regulations, 2008- (Not
has, during the audit period covering the financial year ended
applicable to the Company during the Audit Period);
on 31st March, 2019 (Audit Period), complied with the statutory
(f ) The Securities and Exchange Board of India (Registrars
provisions listed hereunder and also that the Company has proper
to an Issue and Share Transfer Agents) Regulations, 1993
Board-processes and compliance-mechanism in place to the extent,
regarding the Companies Act and dealing with client;
in the manner and subject to the reporting made hereinafter:
(g) The Securities and Exchange Board of India (Delisting of
I have examined the books, papers, minute books, forms and returns
Equity Shares) Regulations, 2009- (Not applicable to the
filed and other records maintained by the Company for the financial
Company during the Audit Period);
year ended on 31st March, 2019 according to the provisions of:
(h) The Securities and Exchange Board of India (Buyback of
(i) The Companies Act, 2013 (the Act) and the rules made Securities) Regulations, 1998/2018- (Not applicable to the
thereunder; Company during the Audit Period); and
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the (i) The Securities and Exchange Board of India (Listing
rules made thereunder; Obligations and Disclosures Requirements) Regulations,
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws 2015.
framed thereunder;
(vi) Management has identified and confirmed the following laws
(iv) Foreign Exchange Management Act, 1999 and the rules as being specifically applicable to the Company, which have
and regulations made thereunder to the extent of Foreign been complied with:-
Direct Investment, Overseas Direct Investment and External
(a) Paper and Paper Board Cess Rules, 1981
Commercial Borrowings;
(v) The following Regulations and Guidelines prescribed under (b) Indian Forest Act, 1927
the  Securities and Exchange Board of India Act, 1992 (‘SEBI I have also examined compliance with applicable clauses of the
Act’):- following:
62 | JK Paper Ltd.
(i) Mandatory Secretarial Standard 1 and Secretarial Standard 2 of the said company changed from ‘wholly owned subsidiary’
issued by the Institute of Company Secretaries of India, to a ‘subsidiary’ of the company;
(ii) The Listing Agreements entered into by the Company with the (iii) Became the Holding Company of The Sirpur Paper Mills Limited
Stock Exchanges. through the aforesaid JK Enviro-Tech Limited;
(iv) Allotted redeemable Non-Convertible Debentures (Series I) to
During the period under review, the Company has complied with
International Finance Corporation for B335.00 crore, in terms
the provisions of the Acts, Rules, Regulations, Guidelines, Standards,
of Members resolution passed at the Annual General Meeting
etc. as mentioned above.
held on 17.8.2018;
I further report that: (v) Increased Paid up Share Capital to B178.24 crore after allotment
The Board of Directors of the Company is duly constituted with of 27,42,735 equity shares of B10 each, at a premium of B46.37
proper balance of Executive Directors, Non-Executive Directors and each, on conversion of Foreign Currency Convertible Bonds
Independent Directors. (Series-5); and
The changes in the composition of the Board of Directors that (vi) Subscribed for 8,10,000 ordinary shares of USD 1 each in
took place during the period under review were carried out in JK Paper International (Singapore) Pte Ltd, a wholly owned
compliance with provisions of the Act. subsidiary.
Adequate Notice is given to all directors at least seven days in This report is to be read alongwith the following-
advance to schedule the Board Meetings. Agenda and detailed 1. Maintenance of secretarial record is the responsibility of the
notes on agenda are also sent in advance and a system exists for management of the company. My responsibility is to express
seeking and obtaining further information and clarifications on the an opinion on these secretarial records based on my audit.
agenda items before the meeting and for meaningful participation 2. I have followed the audit practices and processes as were
at the Meeting. appropriate to obtain reasonable assurance about the
All decisions at Board Meetings and Committee Meetings are carried correctness of the contents of the Secretarial records. The
out unanimously as recorded in the Minutes of the Meetings of the verification was done on test basis to ensure that correct facts
Board of Directors or Committees of the Board, as the case may be. are reflected in secretarial records. I believe that the processes
and practices, I followed provide a reasonable basis for my
I further report that, based on review of compliance mechanism
opinion.
established by the Company and on the basis of compliance
certificates issued by the Company Executives and taken on record 3. I have not verified the correctness and appropriateness of
by the Board of Directors and Audit Committee at their meetings, financial records and Books of Accounts of the company.
there are adequate systems and processes in the Company 4. Where ever required, I have obtained the Management
commensurate with the size and operations of the Company representation about the compliance of laws, rules and
to monitor and ensure compliance with applicable laws, rules, regulations and happening of events etc.
regulations and guidelines. 5. The compliance of the provisions of Corporate and other
I further report that, during the audit period, the Company - applicable laws, rules, regulations, standards is the responsibility
of management. My examination was limited to the verification
(i) Acquired The Sirpur Paper Mills Limited under the Resolution of procedures on test basis.
Plan approved by National Company Law Tribunal, Hyderabad
6. The Secretarial Audit report is neither an assurance as to
Bench, vide its order dated 19.7.2018 under Insolvency and
the future viability of the company nor of the efficacy or
Bankruptcy Code, 2016 and subscribed for 90,00,000 equity
effectiveness with which the management has conducted the
shares of B10 each of the said Company;
affairs of the company.
(ii) Subscribed for equity/preference shares of JK Enviro-Tech
Limited for an aggregate amount of B222 crore and the status
Namo Narain Agarwal

Place: New Delhi Secretarial Auditor
Date: 6th May 2019 FCS No. 234, CP No. 3331

Annexure 4
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 fuel has been confirmed as renewable biomass fuel by Ministry of
New & Renewable Energy, Government of India. About 20% of the
i) The steps taken for conservation of energy:
energy requirement at Unit CPM and 57% at Unit JKPM is being met
1) Installed LED lights in various locations throughout Unit JKPM
by this renewable source.
and Unit CPM replacing conventional lights.
2) Vacuum pump system motors replaced with sq cage motors in
C) TECHNOLOGY ABSORPTION, ADAPTATION
place of slip ring improving the power factor. Savings of over
AND INNOVATION
B12 Lacs/ year.
3) In house steam & Condensate modification, resulting reduction The efforts made towards technology absorption:
in steam consumption. 1) At unit JKPM Mitigated smell of Pulp Mill & Recovery plant by
recovering Methanol from Stripped Off Gases (SOG) & resulting
4) Installed Micro TG to avoid energy wasted through PRDS.
reduction in Furnace oil consumption in Lime Kiln.
5) Installation of new energy efficient motors in Unit CPM resulting
in savings of B5.4 lacs/annum. 2) Micro TG was installed to avoid energy loss through PRDS.
6) VFD for SA fan in boiler, achieved saving is B9 lacs/annum with 3) Utilization of ETP Secondary Sludge in Recovery Boiler.
an investment of 1 lac.
4) Increase in PM-1 Speed & reduction in Steam consumption by
7) Major reduction in specific steam for power achieved by proper installing Silent Drive, Steam & Condensate system.
scheduling of condenser cleaning using high pressure water
5) Bulk & Stiffness improved by rebuilding PM-1 Calendar.
jet.
8) Energy saving by operation optimization in CFB#4 - optimization 6) Installation of PM-3 Hydraulic Headbox with Dilution control
of Furnace pressure at inlet to cyclone, Optimization of excess system to reduce 2sigma variations.
air by programming auto combustion logic. 7) Installed Vacuum pumps with water separators in Paper
Machines.
ii) The capital investment on energy conservation
equipments: 8) Higher capacity liquor heater installed in Evaporator to reduce
The Company has invested B16.5 crore for energy conservation the steam consumption.
equipments during the year 9) PM-1 runnability improved by installing in-house couch roll
doctor and couch pit thickener at wet end.
B) RENEWABLE ENERGY
The steps taken by the company for utilizing alternate sources of i) The benefits derived as a result of above efforts:
energy: The initiatives have enabled the company in terms of product &
quality improvement, cost reduction, product development and
Concentrated black liquor contains carbohydrates(Lignin) extracted
enhance customer satisfaction.
from  wood and sodium salts bonded with carbohydrates  from
the cooking chemicals added at the digester. Combustion of the ii) Research & Development:
organic portion of Black liquor solids produces heat in the recovery During the year, the Company has spent B308 lacs on Research
boiler, heat is used to produce high pressure steam, which is used to & Development. The company performed various Research &
generate electricity in a turbine. Turbine extraction Medium & low Development activities. Various trials were conducted on the
pressure steam is used for process heating. Black liquor solids as a
64 | JK Paper Ltd.
shop floor to upgrade the existing quality of product to meet the showing potential growth in progeny trials. These hybrids are
customer perception and maintain quality and product leadership. targeted for higher pulp yield & wood productivity. (e) Planted
progeny trials for high yielding Eucalyptus at CPM & JKPM for
1. New Products developed and introduced during the current
development of future generation clones. (f ) Installed seed
year.
grading & scarification machine for Subabul seed treatment
(a) HSMT for Match Stick application (b) Ecosip,for Paper Straw to increase germination percentage & survival percentage in
application (c) Cream Cote for Mobile Cover application (d) Subabul plantations (g) Progeny trials are placed for capturing
Cost Reduction of Top coat color by using special coating positive effect of mutation. Recorded increase in growth. (h)
material. (e) Blister pack board for Blister application. Identified 3 new potential clones of Subabul namely CPM-3,
2. R & D activities in Plantation CPM-29 & CPM-32 with higher pulp yield & wood productivity.
Multi-locational trials will be placed for these potential clones
(a) Developed & commercially released new Eucalyptus clone in Gujarat & Maharashtra in June 2019
having high wood productivity (b) Released Subabul specific
nitrogen fixing Rhizobium namely CB-3126. This Rhizobium
inoculation is being provided to farmers with Subabul
D) FOREIGN EXCHANGE EARNINGS AND
seeds to enhance their wood productivity per unit area. (c)
OUTGO
B in Crore (10 Million)
Developed hybrid between Leucaena luecocephala & L.
collinsii which is resistant to psyllid insect & has higher wood (a) Foreign Exchange earned 226.23
productivity. Progeny trial is going on for development of (b) Foreign Exchange outgo:
future generation clones. (d) Developed 10 hybrids which are - CIF Value of Imports 667.04
placed under progeny trials at CPM & JKPM. These hybrids are - Others 13.87


Annexure 5
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
FY 2018-19 ended 31st March 2019
A. The ratio of the remuneration of each director to the median 49.17%, Shri Shailendra Swarup, 52.70%, Shri Udayan Bose,
remuneration of the employees of the Company- (a) Non- 68.46%, Smt. Vinita Singhania, 55.42%, Shri S. K. Roongta, Not
Executive Directors: Shri Bharat Hari Singhania, Chairman, 57.02; applicable since became a Director during the Financial Year
Shri Arun Bharat Ram, 6.25; Shri Dhirendra Kumar, 5.36; Shri 2018-19;Shri V. Kumaraswamy, CFO, 17.97%, and Shri Suresh
M.H. Dalmia, 4.91; Shri R.V. Kanoria, 5.88; Shri Sandip Somany, Chander Gupta, VP &CS, 17.63%.
4.98; Shri Shailendra Swarup, 5.08; Shri Udayan Bose, 6.05;
C. The percentage increase in the median remuneration of
Smt. Vinita Singhania, 5.15; Shri S.K.Roongta (appointed w.e.f.
employees –5.32%. The number of permanent employees on
12.2.2019), 0.75 and Shri Wim Wienk (ceased w.e.f. 12.11.2018),
the rolls of Company - 2472.
2.90 (b) Executive Directors: Shri Harsh Pati Singhania, VC &
MD, 716.71, Shri A.S.Mehta, President & Director (appointed D. Average percentage increase in the salaries of employees
w.e.f. 01.10.2018) 61.15 and Shri O.P. Goyal, WTD (ceased w.e.f. other than the managerial personnel in the financial year 2018-
30.9.2018), 57.81. 19 was 13.20% and increase in the managerial remuneration
for the same financial year was 30.14%.Higher increase in
B. The percentage increase in remuneration of each director, chief
managerial remuneration is due to profit linked commission
finance officer, company secretary - Shri Bharat Hari Singhania,
and performance linked incentive as per scheme of the
Chairman, 100.53%; Shri Harsh Pati Singhania, VC & MD, 34.41%;
Company.
Shri A.S.Mehta, President & Director, – Not applicable since
became a Director during the Financial Year 2018-19; Shri Arun E. We affirm that the remuneration paid during the year 2018-19
Bharat Ram, 87.19%; Shri Dhirendra Kumar, 57.72%; Shri M.H. is as per the Remuneration Policy for Directors, Key Managerial
Dalmia, 53.45%, Shri R.V. Kanoria, 63.85%, Shri Sandip Somany, Personnel and Senior Management of the Company.
Annexure 6
The particulars in respect of the deposits covered under Chapter V of the Companies Act, 2013
for the financial year ended 31st March 2019
(a) Accepted during the year –B17.14crore;

(b) Remained unclaimed as at the end of the year – B0.88crore;
(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.

66 | 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 1stApril, 2018 to 31stMarch, 2019
7 Sector(s) that the Company is engaged in Manufacturing
8 Three key products/services manufactured/ Office documentation paper
provided by the Company Uncoated paper and board
Packaging board
9 Total number of locations where business Rayagada, Odisha, India
activity is undertaken by the Company Songadh, Gujarat, India
10 Markets served by the Company India (4,000 dealers and over 200 wholesalers and have 16 depots) & 50 countries
SECTION B: FINANCIAL DETAILS OF THE COMPANY

1 Paid up capital INR 178.24 crore
2 Total turnover INR 3469.19 crore
3 Total profit after tax INR 437.20 crore
4 Total spending on CSR as percentage 0.76%
5 List of the activities in which expenditure in 4 CSR Activity Expenditure (INR
above has been incurred: Lacs)
Health care 27.65
Sanitation and Drinking water 32.55
Combating malnutrition 3.00
Livelihood projects 158.05
Education 10.20
Women empowerment & gender equality. 44.27
Community infrastructure development viz., roads, public 59.37
spaces repair & maintenance of public utilities
Total 335.09

SECTION C: OTHER INFORMATION
1 Does the Company have any Subsidiary Company/ Companies? 1. Jaykaypur Infrastructure & Housing Ltd.
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 Initiatives of the No, the subsidiary companies do not participate
parent company? If yes, then indicate the number of such subsidiary company(s) in the BR Initiatives of the Company
3 Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company No, the entities that the Company does business
does business with, participate in the BR initiatives of the Company? If yes, then with, do not participate in the BR Initiatives of
indicate the percentage of such entity/entities? [Less than 30%, 30-60%, More the Company
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 [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, Transparency and Codes of Conduct, Whistle Blower
Accountability
Principle 2 Businesses should provide goods and services that are safe and contribute to Quality Policy
sustainability throughout their life cycle
Principle 3 Businesses should promote the well-being of all employees HR Policy, SHAW – Prevention of
sexual harassment at workplace
Principle 4 Businesses should respect the interests of and be responsive towards all CSR Policy
stakeholders, especially those who are disadvantaged, vulnerable and marginalized
Principle 5 Businesses should respect and promote human rights CSR Policy
Principle 6 Business should respect, protect and make efforts to restore the environment Environment Policy
Principle 7 Businesses, when engaged in influencing public and regulatory policy, should do Codes of conduct
so in a responsible manner
Principle 8 Businesses should support inclusive growth and equitable development CSR Policy
Principle 9 Businesses should engage with and provide value to their customers and Quality Policy
consumers in a responsible manner
68 | JK Paper Ltd.
Details of compliance (Reply in Y/N)
S. Questions P P P P P P P P P
No.
1 2 3 4 5 6 7 8 9
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? Most of the policies are aligned to various standards like:ISO
If yes, specify? 18001(Quality Management System), ISO 14001 (Environment
Management System), OHSAS 18001 (OccupationalHealth &
Safety Management System)
4. Has the policy been approved by the Board? If yes, has it been Y - - Y Y - Y Y -
signed by the MD/owner/CEO/ appropriate Board Director?*
5. Does the Company have a specified committee of the Board/ Y Y Y Y Y Y Y Y Y
Director/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 Y Y Y Y Y Y Y Y Y
and external stakeholders?
8. Does the Company have in-house structure to implement the Y Y Y Y Y Y Y Y Y
policy/policies?
9. Does the Company have a grievance redressal mechanism related Y Y Y Y Y Y Y Y Y
to the 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
**No. The independent Agency’s evaluation work is ongoing.
3. Governance related to BR Principle 1: Businesses should conduct and govern themselves

1. Indicate the frequency with which the Board of Directors, with Ethics, Transparency and Accountability
Committee of the Board or CEO to assess the BR performance 1. Does the policy relating to ethics, bribery and corruption cover
of the Company. Within 3 months, 3-6 months, Annually, More only the Company? Yes/ No. Does it extend to the Group/Joint
than 1 year. Ventures/ Suppliers/Contractors/NGOs /Others?
The Company does not have a Committee of Board for dealing We are committed to highest standards of corporate
with this matter specifically. However, aspects of Business governance practices within our organisation. It forms an
Responsibility are reviewed by various other committees of the integral part of our values, ethics and business practices
Executives/ Board which is aimed at creating and enhancing long-term value
of stakeholder. We practise and promote corporate ethics to
2. Does the Company publish a BR or a Sustainability Report?
enhance transparency in our operations and accountability
What is the hyperlink for viewing this report? How frequently it
amongst the stakeholders. By virtue of the basic philosophy of
is published?
the code of conduct, there lies a strong alignment of the core
This is the Company’s ﬁrst foray into publishing the Business values and commitment to maintain the highest standards of
Responsibility Report for the year under review. said practices in its interface with all stakeholders, society at
large and the environment. There lies an element of fiduciary
responsibility with the Directors and senior management of
the company to maximise the value of shareholders via good
business practices and controls.

In order to reaffirm this commitment, the Company has several management certification programme and this has benefitted
policies guided by the Code of Conduct that are applicable the farmers through adoption of better and more sustainable
to the Board, Management as well as all the employees of the management of plantations. The Company has facilitated
Company. We take pride in our ‘Quality Policy’ which aims at plantation of more than 2,400 lac trees in the last four years.
providing customer delight-both internal and external-through
The Company carries extensive research and development to
our products at lowest cost by continuous improvement in
develop short rotation clones (2-3 years) for the improvement
processes, productivity, quality and management systems.
of plantation yields, which results in increased returns to
Finally, we ensure accountability with respect to the said
farmers. We have developed short-rotation clones (about three
commitment through a vigil mechanism providing a common
years) to enhance yields and farm productivity and actively
platform for associates and employees of the company to
provide training and development to farmers to achieve higher
report any suspected frauds, unethical behaviour, grievances,
yield.
violation of the Company’s Code of Conduct or Ethics Policy,
and any other event which would adversely affect the interests 2. For each such product, provide the following details in respect
of the business of the Company. of resource use (energy, water, raw material etc.) per unit of
product (optional):
2. How many stakeholder complaints have been received in
the past financial year and what percentage was satisfactorily (a) Reduction during sourcing / production / distribution
resolved by the management? If so, provide details thereof, in achieved since the previous year throughout the value
about 50 words or so. chain?
Eight investor complaints were received during the financial The Company believes that optimizing production
year ended 31st March 2019, all of which were promptly efficiency delivers value to customers and minimises
resolved to the satisfaction of the investor concerned. environmental impact, therefore driving the Company
Customer complaints have been covered under Principle 9. No towards the goal of long term sustainability.
other stakeholder complaints from depositors, vendors, dealers Raw material: The material intensity (wood consumed
etc. were received; all queries were promptly responded to the per ton of product) of the Company reduced from 2.10 in
stakeholder concerned. FY 2017-18 to 2.08 in FY 2018-19.
Principle 2: Businesses should provide goods and services that Energy: The energy intensity (total energy consumed per
are safe and contribute to sustainability throughout their life ton of product) has reduced from 1203 Kwh/ MT in FY
cycle. 2017-18 to FY 1142 in FY 2018-19.
1. List up to 3 of your products or services whose design has Water consumption per ton of product has
Water: 
incorporated social or environmental concerns, risks and/or reduced from 54.8M3/ MT in FY 2017-18 to 53.3M3/MT
opportunities. 2018-19.
Since its inception, the Company has been focussed on (b) Reduction during usage by consumers (energy, water) has
delivering stakeholder value while maintaining ecological been achieved since the previous year?
balance. Rooted in the concept of sustainable development, the Owing to the nature of the product, it is not feasible to
Company aims to deliver products that satisfy customer needs identify the reduction during usage by consumers.
while being durable, resource-efficient as well as economically
feasible. Sustainability is embedded into various stages of our 3. Does the Company have procedures in place for sustainable
product life-cycle, including procurement, manufacturing, sourcing (including transportation)?
transportation, distribution and, finally, the disposal of product (a) If yes, what percentage of your inputs was sourced
by the customer. sustainably? Also, provide details thereof, in about 50
Responsible and sustainable procurement of fibre is both words or so.
a key policy and principle at the Company. Manufacturing The Company acknowledge show significantly its supply
units of the Company are both FSC-COC (Forest Stewardship chain can impact the environment and society at large.
Council – Chain of Custody) and FSC-FM (Forest Stewardship In order to ensure sustainability across the entire value
Council – Forest Management) certified. The Company takes chain, the Company has made responsible sourcing an
up plantations under the Forest Stewardship Council Forest integral part of its sustainability strategy. Several principles
70 | JK Paper Ltd.
have been adopted and responsible forest management resource to the best use within the operations by optimising
practices are promoted to reap benefits like long-term existing processes. This has furthered the commitment towards
availability of raw materials for the operations. These efforts reducing environmental impact of business activities via waste
lead to absorption of atmospheric carbon, probably much minimisation and re-use.
more than what is emitted by the Company’s operations.
Non-hazardous solid wastes such as bamboo and hard wood
4. Has the Company taken any steps to procure goods and dust, screen rejects, fly-ash, lime sludge, and effluent sludge are
services from local & small producers, including communities re-used in various processes. For instance, lime sludge is used
surrounding their place of work? If yes, what steps have been as raw material to make egg trays and recycled board etc. We
taken to improve their capacity and capability of local and ensure that 100% of fly-ash is used to manufacture the fly-ash
small vendors? bricks and board rejects are entirely recirculated within the
board plant.
During the last 4-5 years, the Company has had a multi-pronged
strategy of increasing plantation coverage in the nearby
Principle 3: Businesses should promote the well-being of all
areas thereby enabling local procurement. Furthermore, the
employees.
Company invests its efforts in carrying out extensive research
1. Please indicate the total number of employees. 2472
and development to ensure long-term sustainability of raw
materials for operations via responsible sourcing and promote 2. Please indicate the total number of employees hired on
local procurement. temporary/contractual/casual basis. 3981
3. Please indicate the number of permanent women employees.
The Company is working towards developing clones for the
27
improvement of plantation yields, which results in increased
returns to farmers. This is to enhance yields and farm 4. Please indicate the number of permanent employees with
productivity and actively provide training and development disabilities. Nil
to farmers to achieve higher yield. The Company engages with 5. Do you have an employee association that is recognised by
the farmers to increase the overall plantation area and promote management?
agroforestry for better land utilisation. The farmer friendly Gate Collective bargaining agreements exist with trade unions on
Purchase initiative offers the farmers remunerative prices and a local level and these agreements promote the acceptance
improved logistics movement to ensure higher volume of of responsibility by both parties and the development of a
pulpwood procurement from plantations. positive health and safety culture.
Apart from the aforementioned, capacity building of farmers 6. What percentage of your permanent employees is members of
is taken up through different awareness programmes, field this recognised employee association? 32.31%
trainings and practical demonstrations so that the required 7. Please indicate the number of complaints relating to child
cultural operations as per specified package of practices labour, forced labour, involuntary labour, sexual harassment
can be understood by farmers and implemented in the in the last financial year and pending, as on the end of the
field. In addition, audio visual aids like leaflets, pamphlets, financial year.
videos and practical field demonstrations are used along
No such complaints pertaining to child labour, forced labour,
with focussed group discussions with experienced farmers
involuntary labour, sexual harassment were reported in the
through village level meetings. Exposure visits of farmers to the
current financial year.
Company’s production and research facilities, demonstration
plantations, plantations of progressive farmers and also to our Category No of complaints No of complaints
manufacturing units is undertaken for creating awareness. filed during the pending as on end
5. Does the Company have a mechanism to recycle products and financial year of the financial year
waste? If yes what is the percentage of recycling of products Child labour/forced NIL NIL
and waste (separately as <5%, 5-10%, >10%). Also, provide labour/involuntary
details thereof, in about 50 words or so. labour
Sexual harassment NIL NIL
The Company believes that waste created in operations is a
Discriminatory NIL NIL
potential resources for various other activities. Hence, it has
employment
strategically shifted its focus towards harnessing this potential

1. What percentage of your under mentioned employees were in a continuous, consistent and systematic manner. It has
given safety & skill up-gradation training in the last year? implemented mechanisms to facilitate effective dialogues with
all stakeholders across businesses, identify material concerns
(a) Permanent Employees – 100%
and their resolution in an equitable and transparent manner.
(b) Permanent Women Employees – 100%
The Company proactively engages with and responds to those
(c) Casual/Temporary/Contractual Employees – Data under sections in the society that are disadvantaged, vulnerable and
review marginalized. The Company has a structured CSR program
The skills and knowledge of the Company’s workforce are through which it assesses the needs of local stakeholders and
among its greatest strengths. The Company believes in 70-20- carries out initiatives to address societal needs.
10 philosophy of training and education. Maximum learning
Principle 5: Businesses should respect and promote human
and development, i.e. 70%, takes places through hands-on
rights.
involvement and practical experience, 20% is achieved through
1. Does the policy of the Company on human rights cover only
classroom training and the remaining 10% through textual
the Company or extend to the Group/Joint Ventures/ Suppliers/
learning. Continuous learning and development are essential.
Contractors/NGOs/Others?
In FY 2018-19, the Company imparted an average of 70 hours
of training per employee on topics such as safety, as well as Currently, the Company does not have any Human Rights
technical training specific to the employees’ different roles. policy, although it appreciates that human rights are
Almost all the employees form part of the Company’s safety inherent, universal, indivisible and interdependent in nature.
and skill upgradation programmes. The Company, within its sphere of influence, promotes the
awareness and realization of human rights across its value
Principle 4: Businesses should respect the interests of, and be chain. To this extent, the Company extends its initiatives to
responsive towards all stakeholders, especially those who are promote human rights to external stakeholders including
disadvantaged, vulnerable and marginalized. suppliers and contractors.
1. Has the Company mapped its internal and external
The Company’s approach to managing human rights is aligned
stakeholders? Yes/No
with internationally recognised principles and guidelines. It
Yes, the company has identified key stakeholder groups and is a constant endeavour to ensure that none of the suppliers
mapped its internal and external stakeholders. engage in employment of child, forced or compulsory labour.
2. Out of the above, has the Company identified the The Company strongly prohibits the employment of child,
disadvantaged, vulnerable & marginalised stakeholders? forced or compulsory labour in all of its operations.
Yes, the Company has identified the disadvantaged, vulnerable 2. How many stakeholder complaints have been received in the
& marginalised stakeholders from the nearby local communities past financial year and what percent was satisfactorily resolved
and surrounding villages in the form of contractual employees by the management?
and marginal farmers. In the reporting period, no violations or complaints surfaced
3. Are there any special initiatives taken by the Company to and no areas were discovered where any of our operations or
engage with the disadvantaged, vulnerable and marginalised suppliers might be found to have significant risk of child labour
stakeholders? If so, provide details thereof, in about 50 words or or forced or compulsory labour.
so.
Principle 6: Business should respect, protect, and make efforts
The Company values the support of its stakeholders and to restore the environment.
respects the interests and concerns they have towards 1. Does the policy related to Principle 6 cover only the Company
the company. The Company has put in place systems and or extends to the Group/Joint Ventures/ Suppliers/Contractors/
procedures to identify, prioritise and address the needs and NGOs/others.
concerns of its stakeholders across businesses and units
72 | JK Paper Ltd.
The Company is committed towards environmental protection Moreover, the Company uses environmental impact
and has a well-defined corporate environmental policy in assessments, recognized environmental management
place. The policy covers the Company and its employees. The standards, ISO 9001 (Quality Management System), ISO 14001
Company encourages its subsidiaries, suppliers and contractors (Environmental Management System), and OHSAS 18001
to employ environment friendly measures in their day to day (Occupational Health & Safety Management System) to
operations. sharpen its focus towards achieving sustainability goals.
2. Does the Company have strategies/ initiatives to address global 4. Does the Company have any project related to Clean
environmental issues such as climate change, global warming, Development Mechanism? If so, provide details thereof, in
etc.? Y/N. If yes, please give hyperlink for webpage etc. about 50 words or so. Also, if yes, whether any environmental
compliance report is filed?
Yes, the Company has taken up several initiatives to address
global environmental issues such as climate change, global Yes, the Company has registered two projects related to
warming, waste minimisation, effluent reduction, water the Clean Development Mechanism under UNFCCC. Vide
conservation. The Company has also signed an ‘Emission approval dated 15th July 2009, the Company’s CDM project on
Reduction Purchase Agreement (ERPA)’ with the Bio Carbon “Improving rural livelihoods through carbon sequestration” in
Fund of the World Bank covering 1,608 Ha mainly owned the nearby areas in Koraput, Kalahandi& Rayagada districts was
by small and marginal farmers associated with JK Paper’s approved under UNFCCC.
plantation program. This program provides additional income
Further the company implemented a program to upgrade its
for participating farmers, besides reducing harmful greenhouse
facilities for energy efficiency, resource conservation, reduction
gases and global warming.
in water consumption etc. This was facilitated by a USD 3 million
For further details, refer http://www.jkpaper.com/index. loan of IFC Washington under is Clean Production initiatives.
php?option=com_content&view=article&id=32&Itemid=33
5. Has the Company undertaken any other initiatives on – clean
3. Does the Company identify and assess potential environmental technology, energy efficiency, renewable energy, etc. Y/N. If
risks? Y/N yes, please give hyperlink for web page etc.
The Company has an elaborate risk management system to The Company undertakes various energy efficiency measures
inform Board Members about risk assessment and minimization at its manufacturing locations which include optimisation of
procedures. The Risk Management Committee meets on voltage level through tap position changing on transformer,
regular basis and evaluates the efficacy of the framework installation of energy efficient luminaries and motors on various
relating to risk identification and its mitigation laid down by machines, running motors with low current by converting
the Committee. delta to star connection, etc. Also, the Company ensures
100% conversion of fly ash into fly ash bricks. More details
At each location, there is a dedicated team within the umbrella
on the same is available at: http://www.jkpaper.com/ index.
of the Environmental, Health & Safety structure that, among
php?option=com_content&view=article&id=32&Itemid=33
other responsibilities, takes care of ensuring compliance to
applicable federal, state and local laws related to environmental 6. Are the Emissions/Waste generated by the Company within
matters. To assure compliance with applicable laws and the permissible limits given by CPCB/SPCB for the financial year
standards, the environmental department regularly interacts being reported?
with the manufacturing locations and conducts internal audits
The Company is committed to minimizing its waste as well
of all facilities, on a continuous and ongoing basis. In case any
as emissions. It has initiated various measures across the
of the units receive a notice of violation, environmental release
manufacturing locations to waste minimization and re-
or permit exceedance, it is promptly communicated to senior
use. Also, the Company continues to invest in reducing air
management through the incident reporting system and
emission levels through adoption of cleaner technologies/
corrective action is taken immediately.
fuels, monitoring of combustion efficiencies and investments

in pollution control equipment. All these measures ensure that overall development and welfare of the society in the ﬁelds
the emissions/waste generated by the Company are within the of environment, conservation of natural resources, health,
permissible limits given by CPCB/SPCB. education, rural development and livelihood interventions
etc. Accordingly, over the years, its programs have diversified
7. Number of show cause/ legal notices received from CPCB/
to women empowerment, entrepreneurship sustainable
SPCB which are pending (i.e. not resolved to satisfaction) as on
agriculture and climate resistant farm technologies along
end of Financial Year.
with modern health care and education. The Company has
During the FY 2018-19, there were zero non-compliances with a Corporate Social Responsibility (CSR) Policy in accordance
environmental laws and/or regulations and the company did with the provisions of the Companies Act 2013 and rules made
not pay any fines towards any case pending from previous there under. The contents of the CSR Policy are disclosed on the
years. website of the Company.
Principle 7: Business, when engaged in influencing public and 2. Are the programmes/projects undertaken through in-house
regulatory policy, should do so in a responsible manner. team/own foundation/external NGO/government structures/
1. Is your Company a member of any trade and chamber or any other organisation?
association? If Yes, Name only those major ones that your Each of the mills of the Company has a local CSR team and they
business deals with: can tailor their own approach and initiatives. Social research is
The Company is member of the following associations: used to establish a baseline and assess impact of the programs
on ground. Extensive in-depth interviews and focus groups are
• Federation of Indian Chambers of Commerce and Industry conducted to make an assessment of the needs & aspirations
(FICCI) of the people. The Company proactively works towards women
• Indian Paper Manufacturers Association (IPMA) empowerment via promotion of self-help groups, mobilization
of farmer clubs to enhance field productivity & their earnings,
2. Have you advocated/lobbied through above associations for
catalysing skill development programmes for youth and
the advancement or improvement of public good? Yes/No; if
carrying out infrastructural development projects.
yes specify the broad areas (Governance and Administration,
Economic Reforms, Inclusive Development Policies, Energy 3. Have you done any impact assessment of your initiative?
security, Water, Food Security, Sustainable Business Principles, The Company adopts tools like Participatory Rural Appraisal
Others) to involve people in prioritizing their needs and defining type
The Company continuously advocates the use of alternative of development initiatives suited to local needs. Villagers give
fuels, energy conservation and afforestation. For social scores to development initiatives, either individually scoring or
development projects, the Company partners with in small groups and aggregating for the community as a whole.
organisations such as Bharatiya Yuva Shakti Trust (BYST), SPARSH This facilitates a process of democratic prioritization by the
(NGO), National Skill Development Corporation (NSDC) etc. entire community, ensuring people’s involvement in their own
to seek their participation and involvement in implementing development. This is a very important tool for micro-planning
various initiatives. by the Principles for Responsible Investment (PRIs) at village
level.
Principle 8: Business should support inclusive growth and
4. What is your Company’s direct contribution to community
equitable development.
development projects- Amount in INR and the details of the
1. Does the Company have specified programmes/ initiatives/
projects undertaken?
projects in pursuit of the policy related to Principle 8? If yes
details thereof. Out of a total of expenditure of B3.35 cr, B2.90 cr was incurred
through Sparsh and the balance by the Company.
The Company has been one of the foremost proponents of
inclusive growth and has continued to undertake projects for
74 | JK Paper Ltd.
5. Have you taken steps to ensure that this community marketing communications. In line with this, the required
development initiative is successfully adopted by the information as mandated by law is inscribed on the product
community? Please explain in 50 words, or so. label of the Company.
The CSR team at the manufacturing locations regularly interact 3. Is there any case filed by any stakeholder against the Company
with the local communities to assess the impact of community regarding unfair trade practices, irresponsible advertising
development projects undertaken by these units to ensure and/or anti-competitive behaviour during the last five years
that the objectives and benefits of these projects are being and pending as on end of financial year? If so, provide details
met. thereof, in about 50 words or so.
There was no incidence of non-compliance with regulations

Principle 9 Business should engage with and provide value to
and voluntary codes concerning product and service
their customers and consumers in a responsible manner.
information and labelling. Similarly, there was no instance
1. What percentage of customer complaints/consumer cases are
reported for non-compliance with regulations and voluntary
pending as on the end of financial year.
codes concerning health and safety impacts of the Company’s
Customer complaints received during the year 486 and 19 products and services.
were in the process of being resolved as on 31st March 2019.
4. Did your Company carry out any consumer survey/ consumer
Pending at the end of the financial year 4%
satisfaction trends?
2. Does the Company display product information on the product
The Company is focused on delivering value to its customers
label, over and above what is mandated as per local laws? Yes/
and, therefore, customer satisfaction surveys are carried out on
No/N.A. /Remarks (additional information)
a regular basis. This provides valuable feedback for the Company
The Company has an uncompromising commitment to provide for providing the best possible service to customers and to
best in-class products and ace customer satisfaction. The continuously improve in its engagement with customers.
Company complies with all laws and regulations concerning

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 practised by its entire management cadre.
2. BOARD OF DIRECTORS
2.1 Board of Directors:
The Board of Directors presently consists of Twelve Directors of which two are Executive Directors and ten are Non-executive Directors. Out
of ten Non-executive Directors, six are Independent Directors. Details are as given hereunder:
Sl. Name of the Director Category No. of Board Whether No. of other Directorships and Committee
No.^ Meetings attended Memberships / Chairmanships
attended last A.G.M. Other Other Other
during (17.08.2018) Director- Committee Committee
2018-19 ships $ Memberships** Chairmanships**
1. Sh. Bharat Hari Singhania, Non- Executive 4 No 4 1 -
Chairman non-
Independent
2. Sh. Harsh Pati Singhania, Executive 5 Yes 2 - -
Vice Chairman & Managing
Director
3. Sh. Arun Bharat Ram Independent 5 No 3 - -
4. Sh. Dhirendra Kumar Non- Executive 4 No 5 2 -
non-
Independent
5. Sh. M.H.Dalmia Independent 3 No - - -
6. Sh. R. V. Kanoria Independent 4 No 7 3 2
7. Sh. Sandip Somany Independent 3 No 4 - -
8. Sh. Shailendra Swarup Independent 3 No 6 3 -
76 | JK Paper Ltd.
Sl. Name of the Director Category No. of Board Whether No. of other Directorships and Committee
No.^ Meetings attended Memberships / Chairmanships
attended last A.G.M. Other Other Other
during (17.08.2018) Director- Committee Committee
2018-19 ships $ Memberships** Chairmanships**
9. Sh. Udayan Bose Independent 5 Yes 2 - 2
10. Smt. Vinita Singhania Non- Executive 5 No 5 - -
non-Independent
11. Shri S.K. Roongta (w.e.f. Non-Executive 1 N.A. 9 5 1
12.2.2019) non-
Independent
12. Shri A.S. Mehta Executive 2 N.A. 4 3 1
President & Director
(w.e.f. 1.10.2018)
*Shri O.P. Goyal (DIN: 00030115) ceased to be a Whole time Director/Director w.e.f. 30.09.2018 (attended 3 Board meetings and last AGM) and Sh. Wilhelmus
Johannes Maria Wienk (DIN: 05177396), nominee of FCCB Holders, resigned as a Director w.e.f. 12.11.2018 (attended 1 Board meeting).
The appointment of Independent Directors is in accordance with the provisions of the Companies Act, 2013 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 Ltd Companies, Foreign Companies and Companies under Section 8 of the Companies Act, 2013. 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: 00009529, 6. DIN: 00003792,
7. DIN: 00053597, 8. DIN: 00167799, 9. DIN: 00004533, 10. DIN:00042983, 11. DIN: 00309302, and 12. DIN: 00030694.
** only covers Memberships/Chairmanships of Audit Committee and Stakeholders’ Relationship Committee.
Shri Bharat Hari Singhania, Chairman & Shri Harsh Pati Singhania, Vice Chairman & Managing Director are related to each other.
2.2 Name 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) 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
(v) Shri Sandip Somany
1. HSIL Limited Executive Director
(vi) Shri Shailendra Swarup
1. Gujarat Flurochemicals Limited Independent Director

Sl.No. Name of the Company Category
2. Bengal & Assam Company Limited Independent Director
3. Subros Limited Independent Director
(vii) Shri Udayan Bose
1. Pritish Nandy Communications Limited Independent Director
(viii) 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
(ix) 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 Independent Director
5. CL Educate Limited Independent Director
(x) Shri A.S. Mehta, President & Director
1. Florence Investech Limited Independent Director
2. JK Agri Genetics Limited Independent Director
Note: Shri Harsh Pati Singhania, Vice Chairman & Managing Director and Shri M.H. Dalmia, Director do not hold directorships in any listed entity, other than JK
Paper Limited.
Date and number of Board Meetings held that plans are in place for orderly succession for appointments to
Five Board Meetings were held during the year 2018-19 i.e., on 4th the Board and to senior management.
April, 2018, 14th May 2018, 31st July 2018, 12th November 2018 and
on 12th February 2019. 3. SEPARATE MEETING OF THE INDEPENDENT
The Board periodically reviews Compliance Reports of all laws DIRECTORS
applicable to the Company and has put in place procedure to In accordance with the provisions of Schedule IV of the Companies
review steps to be taken by the Company to rectify instances of non Act, 2013 and Regulation 25 of the Listing Regulations, a separate
– compliances, if any. meeting of the Independent Directors of the Company was held on
12th February 2019. Shri Arun Bharat Ram was unanimously elected
The Company already has a Code of Conduct in position for
as Chairman of the meeting and all the Independent Directors of
Management Cadre Staff (including Executive Directors). In terms
the Company were present at the said Meeting except Shri M.H.
of provisions of Regulation 17(5) of the Listing Regulations, and
Dalmia and Shri Shailendra Swarup to whom leave of absence was
contemporary practices of good corporate governance, the Board
granted.
has laid down a code of conduct for all Board Members and Senior
Management of the Company and the same is available on the
website of the Company (www.jkpaper.com). All the Board Members 4. FAMILIARISATION PROGRAMME FOR
and Senior Management Personnel have affirmed compliance with INDEPENDENT DIRECTORS
the said code. This report contains a declaration to this effect signed In accordance with the provisions of Regulation 25(7) of the
by Vice Chairman & Managing Director. The Board is also satisfied Listing Regulations, the Company has been conducting various
familarisation programmes for Independent Directors. The details
of such familarisation programmes for Independent Directors have
78 | JK Paper Ltd.
been disclosed on the website of the Company, the web link for carried by it and that the Independent Directors were satisfied in
which is http://www.jkpaper.com/images/pdf/Familiarisation%20 this regard.
Programme%20of%20INDs.pdf.
7. AUDIT COMMITTEE
5. BOARD SKILLS, EXPERTISE OR The composition and the “Terms of Reference” of the Committee are
COMPETENCE in conformity with the provisions of Section 177 of the Companies
The Board of Directors possess appropriate skills, experience and Act, 2013 and Regulation 18 of the Listing Regulations.
knowledge in one or more fields of finance, law, management,
The Committee presently consists of four Directors, out of which
sales & marketing, operations, research, corporate governance,
three are Non-executive Independent Directors and one is Executive
education, community service and other disciplines as required in
Director. Four meetings of the Audit Committee were held during
the context of the Company’s operations.
the year 2018-19 as detailed hereunder:
Dates of the meetings and the number of the Members attended

6. PERFORMANCE EVALUATION
are:
As required, the Nomination and Remuneration Committee
of Directors specified the manner for effective evaluation of Dates of meetings No. of members
performance of the Board, its Committees and individual Directors attended
in accordance with the provisions of the Companies Act, 2013 and 14th May 2018 4
the Listing Regulations. 31st July 2018 4
Accordingly, the Board of Directors has made formal annual 12th November 2018 3
evaluation of its own performance, and that of its committees and 12th February 2019 4
Individual Directors in accordance with the manner specified by the
The names of the Members of the Committee and their attendance
Nomination and Remuneration Committee of Directors.
at the Meetings are as follows:
Performance of the Board was evaluated after seeking inputs from
Name Status No. of Meetings
all the Directors on the basis of the criteria such as adequacy of
attended
its composition and structure, effectiveness of board processes,
information and functioning, etc. Shri Udayan Bose Chairman 4
Shri Arun Bharat Ram Member 4
The performance of the committees was evaluated by the Board
Shri R.V.Kanoria Member 3
after seeking inputs from the committee members on the basis of
Sh. A.S. Mehta * Member 2
the criteria such as composition of committees, terms of reference of
Sh. O. P. Goyal** Member 2
committees, effectiveness of the committee meetings, participation
of the members of the committee in the meetings, etc. * Shri A.S. Mehta became a member of the Committee w.e.f. 1st October,
2018.
The Board and the Nomination and Remuneration Committee also ** Shri O.P. Goyal ceased to be a member of the Committee w.e.f. 30th
carried out evaluation of the performance of individual directors on September 2018.
the basis of criteria such as attendance and effective participation
All the Committee Meetings were attended by the Head of Internal
and contributions at the meetings of the Board and its committees,
Audit, Vice President & Company Secretary and the representative
exercise of his/her duties with due & reasonable care, skill and
of Statutory Auditor. The Head of Finance Function also regularly
diligence, etc.
attends the Committee Meetings. The Vice President & Company
In a separate meeting of the Independent Directors of the Company, Secretary acts as the Secretary of the Committee.
performance of non-independent directors, performance of the
Board as a whole and performance of the Chairman was evaluated,
taking into account the views of executive directors and non-
executive directors of the Company. The Chairman of the Meeting of
the Independent Directors apprised the Board about the evaluation

8. NOMINATION AND REMUNERATION (i) The Nomination and Remuneration Committee of Directors
COMMITTEE (the Committee) shall take into consideration the following
criteria for recommending to the Board for appointment as
8.1 Nomination and Remuneration Committee
a Director of the Company: (a) Qualifications & experience.
The Nomination and Remuneration Committee presently consists
(b) Positive attributes like respect for Company’s core values,
of five Directors, out of which three are Non Executive Independent
professional integrity, strategic capability with business vision,
Directors namely Shri Arun Bharat Ram, (Chairman), Shri R.V.
etc. (c) In case the proposed appointee is an Independent
Kanoria and Shri Udayan Bose and two are Non Executive Non-
Director, he should fulfill the criteria for appointment as
Independent Directors namely Shri Bharat Hari Singhania and
Independent Director as per the applicable laws & regulations.
Shri Dhirendra Kumar. The Composition and the terms of reference
(d) The incumbent should not be disqualified for appointment
of the committee are in conformity with the provisions of Section
as Director pursuant to the provisions of the Act or other
178 of the Companies Act, 2013 and Regulation 19 of the Listing
applicable laws & regulations.
Regulations.
(ii) The Committee will recommend to the Board appropriate
Four meetings of the Nomination and Remuneration Committee
compensation to Executive Directors and senior management
were held during the year 2018-19 as detailed hereunder:
subject to the provisions of the Act, Listing Regulations and
Dates of the meetings and the number of the Members attended other applicable laws & regulations. The Committee shall
are: periodically review the compensation of such Directors in
relation to other comparable companies and other factors, the
Dates of meetings No. of members
Committee deems appropriate. Proposed changes, if any, in
attended
the compensation of such Directors shall be reviewed by the
14th May 2018 4 Committee subject to approval of the Board.
31st July 2018 5
(iii) The Board will review the performance of a Director as per the
12th November 2018 3
structure of performance evaluation adopted by the Board for
12th February 2019 5
Directors including Executive Directors.
(iv) The Committee will review from time to time Board diversity
to bring in professional performance in different areas of
Name Status No. of Meetings operations, transparency, corporate governance, financial
attended management, risk assessment & mitigation strategy and
Shri Arun Bharat Ram Chairman 4 human resource management in the Company. The Company
Shri Bharat Hari Singhania Member 2 will keep succession planning and board diversity in mind in
Shri R.V.Kanoria Member 3 recommending any new name of Director for appointment to
the Board.
Shri Udayan Bose Member 4
Shri Dhirendra Kumar Member 4 (v) The eligibility criteria for appointment of Key Managerial
Personnel (KMPs) and other senior management personnel
8.2 Nomination and Remuneration Policy shall vary for different positions depending upon the job
In accordance with the provisions of the Companies Act 2013 and the description of the relevant position. In particular, the position
Listing Regulations, the Company has put in place the Nomination of KMPs shall be filled by senior personnel having relevant
and Remuneration Policy for the Directors, Key Managerial Personnel qualifications and experience. The Compensation structure
and Senior Management of the Company including criteria for for KMPs and other senior management personnel shall be
determining qualifications, positive attributes, independence of a as per Company’s remuneration structure taking into account
Director as well as a policy on Board Diversity. The said policy has factors such as level of experience, qualification and suitability
been revised by the Nomination and Remuneration Committee of which shall be reasonable and sufficient to attract, retain
the Company and is available at the website of the Company and and motivate them. The remuneration would be linked to
the weblink is www.jkpaper.com. The said policy provides as follows: appropriate performance benchmarks. The remuneration may
80 | JK Paper Ltd.
consist of fixed and incentive pay reflecting short and long- 9. STAKEHOLDERS’ RELATIONSHIP
term performance objectives appropriate to the working of the COMMITTEE
Company and its goals. The Committee presently consists of four directors, namely
Shri Udayan Bose (Chairman), Shri R.V. Kanoria, Shri Arun Bharat
8.3 Remuneration paid to Directors Ram and Shri A.S. Mehta, President & Director. The Composition
A. Executive Directors and the “Terms of Reference” of the Committee are in conformity
The aggregate value of salary, perquisites and contribution to with the provisions of Section 178 of the Companies Act, 2013 and
Provident Fund and Superannuation Fund for the financial year Regulation 20 of the Listing Regulations, as amended.
ended 31st March, 2019 to the Executive Directors of the Company Three meetings of the said Committee were held during the year
is as follows: Shri Harsh Pati Singhania, Vice Chairman & Managing 2018-19 as detailed hereunder:
Director: B6.65 crore plus B19.31 crore payable as commission
and performance linked incentive as applicable; Shri A.S. Mehta, Dates of the meetings and the number of the Members attended
President & Director; B1.54 crore plus B0.67 crore payable as are:
commission and performance linked incentive as applicable for the Dates of meetings No. of members
period from 1st October 2018 to 31st March 2019 and Shri O.P. Goyal, attended
erstwhile Whole time Director B1.48 crore plus B0.61 crore payable
14th May 2018 3
as commission and performance linked incentive as applicable for
12th November 2018 2
the period from 1st April 2018 to 30th September 2018.
12th February 2019 3
The Company does not have any Stock Option Scheme. In the case
of Executive Directors, notice period is 6 months. Severance fee for
the Vice Chairman & Managing Director is remuneration for the
unexpired residue of term or for 3 years, whichever is shorter and Name Status No. of Meetings
for the President & Director, 6 months salary in lieu of notice period. attended
Shri Udayan Bose* Chairman -
B. Non-Executive Directors
Shri R.V.Kanoria Member 2
The Company has paid sitting fees aggregating to B37.90 lacs to all
Shri Arun Bharat Ram Member 3
Non-Executive Directors for attending the meetings of the Board
Shri A.S. Mehta** Member 2
and/or Committees of Directors (including sitting fee for a separate
meeting of Independent Directors), during the financial year 2018- Shri O.P.Goyal*** Member 1
19. In addition to sitting fees, commission of B200 lacs is payable to * Shri Udayan Bose became Chairman of the Committee w.e.f.12th February,
Shri Bharat Hari Singhania, Chairman and B16 lacs each to Shri Arun 2019.
Bharat Ram, Shri Dhirendra Kumar, Shri R.V.Kanoria, Shri Udayan **Shri A.S. Mehta became a member of the Committee w.e.f.1st October,
2018.
Bose, Shri Sandip Somany, Shri Shailendra Swarup, Shri M.H.Dalmia
*** Shri O.P. Goyal ceased to be a member of the Committee w.e.f.30th
and Smt. Vinita Singhania, B9.91 lacs to Shri Wilhelmus Johannes
September 2018.
Maria Wienk and B2.11 lacs to Shri S.K. Roongta, in accordance with
the Special Resolution passed by the members of the Company Shri Suresh Chander Gupta, Vice President & Company Secretary is
at the Annual General Meeting held on 14th September 2016. the Compliance Officer.
Number of Equity shares of B10/- each of the Company held by the Eight investor complaints were received during the financial year
Non-Executive Directors: Sh. Bharat Hari Singhania (1,00,000 Equity ended 31st March 2019, all of which were promptly resolved to the
Shares) and Smt. Vinita Singhania (2,25,550 Equity Shares). satisfaction of the investor concerned.
The Non-executive Directors did not have any other material The Board has delegated the power of share transfer to the
pecuniary relationship or transactions vis-à-vis the Company during Committee of Directors and the share transfer formalities are
the year. attended to as required. All valid requests for transfer of shares in
physical form were processed in time and there were no pending
transfers of shares. During the year ended 31st March 2019, 19
meetings of the said Committee of Directors were held.

10. GENERAL BODY MEETINGS (iii) Continuation of Shri Dhirendra Kumar (DIN: 00153773)
(i) Location and time for last three Annual General Meetings were: to be a Non-Executive Director of the Company.
Year Location Date Time (iv) Continuation of Shri Arun Bharat Ram (DIN: 00694766)
to be a Non-Executive Independent Director of the
2015-16 P.O. Central Pulp 14-09-2016 12.30 P.M.
Company.
Mills – 394 660
(v) Continuation of Shri M.H. Dalmia (DIN: 00009529)
Fort Songadh, to be a Non-Executive Independent Director of the
Distt.Tapi, Gujarat Company.
2016-17 Same as above 14-09-2017 12.30 P.M.
(b) At the Annual General Meeting of the Company held on
2017-18 Same as above 17-08-2018 12.30 P.M.
14th September 2017, Special Resolution was passed for
(ii) None of the businesses proposed to be transacted in the ensuing issue of Non-Convertible Debentures (NCDs) upto B335
Annual General Meeting require passing a special resolution crore on private placement basis.
through postal ballot.
(c) At the Annual General Meeting of the Company held on
(iii) One Special Resolution was passed by way of Postal Ballot 14th September 2016, Special Resolution was passed to
during the financial year ended 31st March 2019. The Company re-appoint and approve the terms of remuneration of
extended e-voting facility through Central Depository Services Vice Chairman & Managing Director of the Company for a
(India) Limited (CDSL), as an alternate for its Members to enable period of five years with effect from 1st January 2017.
them to cast their vote electronically instead of dispatching
physical postal ballot forms. Shri Namo Narain Agarwal, 11. DISCLOSURES
Company Secretary in practice was appointed as Scrutinizer (i) Related Party Transactions: Disclosures on materially significant
for conducting the postal ballot/e-voting process. After related party transactions that may have potential conflict with
receiving the Scrutinizer’s Report, it was announced that the the interests of company at large. None
Special Resolution was passed with requisite majority on 28th
September 2018. The voting pattern on the said resolution is as All the Related Party Transactions are dealt with in accordance
under: with the provisions of the Companies Act, 2013 and Regulation
23 of the Listing Regulations.
Resolution - Special Resolution for appointment of
Shri A.S. Mehta as President & Director of the Company with The Company has also formulated a policy on dealing with
effect from 1st October 2018 till 31st March 2022 on the terms Related Party Transactions and also on the materiality of Related
of remuneration as set out in the Statement pursuant to Party Transactions. This Policy is available on the website of the
Section 102(1) of the Companies Act,2013: Company and the weblink for the same is http://www.jkpaper.
com/images/pdf/Related-Party-Transaction-Policy.pdf.
- % of votes cast in favour of the Resolution: 99.998%
Suitable disclosure as required by Indian Accounting Standard
- % of votes cast in against the Resolution: 0.002% (IndAs)-24 on Related Party transactions has been made in the
(iv) Special Resolutions passed in previous 3 Annual General Annual Report.
Meetings: (ii) Details of non-compliance by the company, penalties, strictures
(a) At the last Annual General Meeting of the Company held imposed on the company by Stock Exchange or SEBI or any
on 17th August 2018, following Special Resolutions were statutory authority, on any matter related to capital markets,
passed: during the last three years. None
(i) Issue of NCDs of upto B500 crore on private placement (iii) Vigil Mechanism/Whistle Blower Policy: The Board of Directors
basis. of the Company at its meeting held on 11th August 2014 has
formulated a Vigil Mechanism/the Whistle Blower Policy for
(ii) Continuation of Shri Bharat Hari Singhania (DIN:
the Directors and Employees of the Company to report their
00041156) to be a Non-Executive Director of the
genuine concerns or grievances relating to actual or suspected
Company.
fraud, unethical behaviour, violation of the Company’s Code
82 | JK Paper Ltd.
of Conduct or Ethics Policy, and any other event which would The Composition and the “Terms of Reference” of the
adversely affect the interests of the business of the Company. Committee are in conformity with the provisions of Regulation
Whistle Blowers may send their concerns/complaints to the 21 of the Listing Regulations.
Chairman of Audit Committee in a sealed envelope marked
(vi) Disclosure of commodity price risks and commodity hedging
confidential, for appropriate action.
activities: The Company manages fluctuations in raw material
The details of establishment of such mechanism has been also prices through stocking by advance procurement when the
disclosed on the website of the Company. It is affirmed that no prices are perceived to be low and also enters into annual
personnel has been denied access to the Audit Committee. buying contracts as strategic sourcing initiative in order to keep
raw material availability and prices under check.
(iv) Prevention of Sexual Harassment of Women at Workplace:
Your Company is sensitive to women employees at workplace. (vii) Details of utilization of funds raised through preferential
As required under the Sexual Harassment of Women at the allotment: The Company had issued 33,500 rated, unlisted,
Workplace (Prevention, Prohibition & Redressal) Act, 2013, secured, redeemable, non-convertible debentures (Series I)
the Company has a formal policy to ensure safety of women of face value of Rupees One lac each (“Debentures – Series
and prevention of sexual harassment has set up a Complaint I”) aggregating to B335 crore on private placement basis and
Committee at its work place(s) to redress the complaints of the fund raised through such preferential allotment have been
women employees and requisite disclosures in relation thereto fully utilised during the financial year ended March 2019, for
are as under: the purpose(s) as mentioned in the Debenture Trust Deed.
a. number of complaints filed during the financial year: Nil (viii) A certificate has been issued by Mr. Shiv Kumar Gupta,
Company Secretary in Practice that none of the directors on
b. number of complaints disposed of during the financial
the board of the company have been debarred or disqualified
year: Nil
from being appointed or continuing as directors of companies
c. number of complaints pending as on end of the financial by the SEBI/Ministry of Corporate Affairs or any such statutory
year: Nil authority.
(v).1 Risk Management: The Company has an elaborate risk (ix) There were no instances where the Board had not accepted
management system to inform Board Members about risk any recommendation of any Committees of the Board which
assessment and minimization procedures. is mandatorily required during the financial year ended 31st
(v).2 Risk Management Committee: Pursuant to the provisions of March 2019.
Regulation 21 of Listing Regulations, the Board of the Company (x) During the financial year ended 31st March 2019, the Company
has constituted the Risk Management Committee, comprising and its subsidiary namely The Sirpur Paper Mills Limited has
of following members: paid total fees for various services including statutory audit,
amounting to B31.71 lacs, including taxes, to the Statutory
S.No. Name Designation
Auditor, namely M/s Lodha & Co., Chartered Accountants.
Directors
Further, no fees was paid by any of the subsidiaries or by the
1. Sh. R.V. Kanoria - Independent Director Chairman
Company to any entity in the network firm/ network entity of
2. Sh. S.K. Roongta - Non Executive Non Member which the Statutory Auditor is a part.
Independent Director
3. Sh. A.S. Mehta- President & Director Member (xi) Subsidiary Companies: The financial statements, in particular,
the investments made by the unlisted subsidiary companies, if
Executives
any, are reviewed by the Audit Committee of the Company.
4. Sh. V. Kumaraswamy- Chief Finance Member
Officer The minutes of the Board meetings of the unlisted subsidiary
5. Sh. Partha Biswas – Chief (Marketing Member companies are placed at the Board meeting of the Company.
& Sales) A statement of all significant transactions and arrangements
entered into by the unlisted subsidiary companies, if any, are
also placed at the Board meeting of the Company.

The Company has formulated a policy for determining material The Board shall refer to the guidelines laid out in this Dividend
subsidiary as required under Regulation 16 of the Listing Distribution Policy while announcing any Dividend in a Financial
Regulations and the same is disclosed on the Company’s Year keeping in mind the provisions of the Companies Act 2013
Website. The web link is http://www.jkpaper.com/images/pdf/ & Rules made therein & other applicable legal procedures.
Policy%20for%20Determining%20Material%20Subsidiary.pdf.
The Company currently has only one Class of Shares viz: Equity
During the year, the Company did not have any material Shares.
unlisted subsidiary as defined in Regulation 16 of the Listing
Regulations. 3 Factors to be considered while declaring dividend.
While recommending/ declaring Dividend, the Board shall take
(xii) Corporate Social Responsibility Committee: The Company has a
into account various Internal & External factors which shall
‘Corporate Social Responsibility Committee of Directors’ which
inter-alia include:
comprises of three Directors out of which one is independent
and two are Executive Directors. The composition and role (1) Profitability of the Company during the relevant year
of the Committee are in conformity with the provisions of (2) Past Dividend trends
Section 135 of the Companies Act, 2013. Two Meetings of the (3) Leverage profile
Committee were held during the financial year ended 31st
(4) Future capital expenditure programmes including organic
March 2019 i.e., on 14th May 2018 and 12th February 2019.
and inorganic growth opportunities.
The names of the Members of the Committee and their (5) Company’s Liquidity Position and Cash flow position.
attendance at the Meetings are as follows:
(6) Economic conditions and regulatory environment.
Name Status No. of Meetings (7) Any other relevant factors that the Board may deem fit to
attended consider.
Shri Harsh Pati Singhania Chairman 2
4 Utilisation of retained earnings.
Shri Shailendra Swarup Member 1
The retained earnings will be used inter alia for the Company’s
Shri A.S. Mehta * Member 1
growth plans, working capital requirements, investments, debt
Shri O.P.Goyal** Member 1 repayments, meeting contingencies or for other needs of the
* Shri A.S. Mehta became a member of the Committee w.e.f.1st Company.
October, 2018.
** Shri O.P. Goyal ceased to be a member of the Committee w.e.f.30th 5 Declaration of dividend
September 2018. The Board may declare/recommend Interim / Final Dividend
(xiii) Dividend Distribution Policy: out of the profits of the Company for that year arrived at
in conformity with the Companies Act. Only in exceptional
1 Preamble circumstances, the Board may consider utilizing its Retained
The SEBI (Listing Obligations and Disclosure Requirements) Earnings for Declaration of Dividend subject to other applicable
Regulations, 2015 (“Regulations”) require the top 500 listed legal provisions.
companies (by market capitalisation) to disclose a Dividend
Distribution Policy in the Annual Report and on the Corporate The dividend payout in each financial year, including interim
Website of the Company. dividends, will be dependent on the existing and expected
underlying financial performance, market conditions, cash
Accordingly, the Board of Directors of the Company has flow position and future requirements of funds and also non-
approved the Dividend Distribution Policy of the Company at financial factors prevailing during such financial year
its meeting held on 8th May, 2019.
6 Review & modification of dividend distribution policy.
2 Objective The Dividend Distribution Policy is subject to Review & Revision
The objective of this Policy is to provide a broad Dividend on periodical basis, as may be considered necessary by the
Distribution Framework to all the Stakeholders of the Company. Board. In case, the Board proposes to declare Dividend based
on the basis of parameters other than those mentioned in the
84 | JK Paper Ltd.
Dividend Distribution Policy, it shall disclose such changes 12. MEANS OF COMMUNICATION
alongwith the rationale therefor. Quarterly, half yearly and annual financial results are normally
published in the Economic Times newspaper (in all editions
7 Disclaimer including Gujarati translation) and are promptly furnished to the
This document neither solicits investments in the Company’s Stock Exchanges for display on their respective websites. The results
securities, nor it is an assurance of guaranteed returns (in any are also displayed on the website of the company “www.jkpaper.
form), for investments in the Company’s equity shares. 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, 23rd August 2019 at 12.30 P.M.
Venue : P.O. Central Pulp Mills- 394660, Fort Songadh, Distt. Tapi, Gujarat.
(b) A brief resume and other particulars of Director(s) seeking appointment /re-appointment at the aforesaid AGM are given in the
Notes to the Notice convening the said Meeting.
(ii) Book Closure/ Record date : 16th August 2019 to 23rd August 2019 (both days inclusive)
(iii) Dividend Payment Date : Within three weeks from AGM
(iv) Financial Calendar : Year Ending March 31
Annual General Meeting for the year ending March 31, 2020 Between June and September 2020
(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 Code – JKPAPER)
(Stock Code-532162) “Exchange Plaza”
Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Bandra (East)
Dalal Street Mumbai-400 051
Mumbai – 400 001
The annual listing fee for the financial year 2019-20 has been paid to both the aforesaid Stock Exchanges.

(vi) Stock Market Price Data :
Month Stock Market Price on Stock Market Price on
BSE Limited (BSE) National Stock Exchange of India
Limited (NSE)
High (C) Low (C) High (C) Low (C)

2018
April 152.00 135.50 152.00 135.10
May 153.50 125.20 153.60 125.25
June 132.05 103.45 132.00 103.45
July 131.25 97.85 131.40 97.30
August 193.95 133.05 194.20 132.75
September 191.95 139.75 191.70 139.80
October 174.00 138.55 174.00 138.35
November 189.70 158.65 189.40 158.20
December 174.10 145.35 173.95 145.00
2019
January 157.00 124.00 157.45 124.00
February 140.15 118.60 140.50 119.15
March 153.35 129.95 153.55 129.35
(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 2018 to
March 2019]:
130
120
Relative value to 100
110
100
90
80
Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19
Month & Year
JKPL BSE Sensex Other Large Paper Companies (Average)
(Source: www.bseindia.com)
86 | JK Paper Ltd.
(viii) Dematerialisation of shares and liquidity: The Equity Shares (ix) Share transfer system: The transmission of shares in physical
of the Company are presently tradeable in compulsory demat form is normally processed and completed within 15 days
segment. The ISIN No. for Equity Shares of the Company for both from the date of receipt thereof. In case of shares in electronic
the depositories is INE789E01012. As on 31st March 2019, 97.57% form, the transfers are processed by NSDL/CDSL through the
of the Company’s Equity Share Capital was in dematerialised respective Depository Participants. Pursuant to SEBI notification
form. dt. 30th November 2018 read with regulation 40 of Listing
Regulations except in case of transmission or transposition of
In respect of Shares held in electronic form, all the requests for
securities, requests for effecting transfer of shares shall not be
nomination, change of address and rematerialisation etc. are
processed unless the shares are held in the dematerialised form
to be made only to the Depository Participant with whom the
with a depository.
Shareholders have opened their Demat Account. The Company
will not be in a position to process such requests.
(x)(a) Distribution of Equity Shareholding (both in physical and electronic form) as on 31st March 2019:
Number of Equity Shares held Shareholders Shares Held

Number % Number %
1 to 500 53943 81.26 6439073 3.61
501 to 1,000 5741 8.65 4506564 2.53
1,001 to 5,000 5126 7.72 12084611 6.78
5,001 to 10,000 781 1.18 5790448 3.25
Over 10,000 792 1.19 149422889 83.83
Total 66383 100.00 178243585 100.00
(b) Pattern of Equity Shareholding (both in physical and electronic form) as on 31st March 2019:
Category No. of Equity Percentage of

Shares held Shareholding
Domestic Companies 9,78,00,251 54.87
Resident Individuals & Trusts 6,13,06,898 34.40
FIs, Mutual Funds & Banks 25,04,203 1.40
Foreign Investors/FPIs/ NRIs 1,66,32,233 9.33
Total 17,82,43,585 100.00
(xi) Outstanding GDRs/ADRs/Warrants or any Convertible the same. The risks as well as mitigating plans are reviewed from
Instruments, conversion date and likely impact on equity: time to time and are updated as may be required. The Company
NIL has also identified various risks involved in respect of key raw
material and has drawn risk mitigation plans for the same.
(xii) Commodity price risk or foreign Exchange risk and hedging
Hardwood & Bamboo are considered a material commodity,
activities: During the financial year ended 31st March 2019, the
as its consumption in comparison to the overall cost of raw
Company has managed the foreign exchange risk and hedged
material consumed, is around 43%. During the year ended 31st
to the extent considered necessary. The Company enters
March 2019, the Company consumed 7.89 lac MT of Hardwood
into forward contracts, swaps & options for hedging foreign
& Bamboo valuing B545.45 Crores. The Company does not have
exchange exposures against imports and exports.
any exposure hedged through commodity derivatives.
The Company is having a Risk Management framework for
identifying various risks and for formulating plans for mitigating

(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
Distt. Rayagada (Odisha). Fort Songadh, Distt. Tapi (Gujarat)
(xiv) Address for correspondence for Share Transfer and related matters:
1. Registrar and Share Transfer Agent (RTA)

M/s MCS Share Transfer Agent Limited,
F-65, 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. Vice President & Company Secretary

JK Paper Limited
Gulab Bhawan (Rear Block - 3rd Floor), 6A, Bahadur Shah Zafar Marg, New Delhi-110 002
Ph. 011-30179100 (ext : 560, 564)
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
2019:
A. Rating From CRISIL

At the beginning of Financial Year
Long Term Rating CRISIL A/Positive
Short Term Rating CRISIL A1
Upgraded during the year
Long Term Rating CRISIL A+/Stable
Short Term Rating No Change (CRISIL A1)
B. Rating From India Rating
At the beginning of Financial Year
Long Term Rating IND A/Stable
Short Term Rating IND A1
Upgraded during the year
Long Term Rating IND A+/Stable
Short Term Rating IND A1+
(xvi) This Corporate Governance Report of the Company for the financial year ended 31st March 2019 is in compliance with the
requirements of Corporate Governance under the Listing Regulations, as applicable.
(xvii) Adoption of discretionary requirements specified in Part E of Schedule II of the Listing Regulations- (a) Shareholder Rights: Half-yearly
and other quarterly financial results are published in newspapers and uploaded on Company’s website www.jkpaper.com. At present,
the half yearly financial performance and the summary of the significant events in last six months are not sent to each household of
shareholders; (b) Modified opinion(s) in audit report: The financial statements (both standalone and consolidated) of the Company
88 | JK Paper Ltd.
for the year ended 31st March 2019 are with unmodified audit Education and Protection Fund Authority (Accounting, Audit,
opinion; (c) Separate posts of Chairperson and CEO: Sh. Bharat Transfer and Refund) Rules, 2016
Hari Singhania is the Chairman of the Company and Sh. Harsh
Pati Singhania is the Vice-Chairman & Managing Director of the 14. DECLARATION
Company; and (d) Reporting of Internal Auditor: The Head of It is hereby declared that all the members of the Board and Senior
Internal Audit of the Company administratively reports to the Management personnel have affirmed compliance with the “Code
President & Director. However, his Internal Audit Reports are of Conduct for Members of the Board and Senior Management of
placed before the Audit Committee. JK Paper Limited” during the Financial Year ended 31st March 2019.
(xviii) The Company has complied with all the applicable requirements Harsh Pati Singhania
specified in Regulations 17 to 27 and clauses (b) to (i) of sub– Vice Chairman & Managing Director
regulation (2) of Regulation 46 of the Listing Regulations.
(xix) Disclosure with respect to demat suspense account/ unclaimed 15. CODE FOR PREVENTION OF INSIDER
suspense account TRADING
There were no shares in the demat suspense account or In accordance with the Securities and Exchange Board of India
unclaimed suspense account during the financial year 2018-19. (Prohibition of Insider Trading) Regulations, 2015, as amended,
the Board of Directors of the Company has adopted (i) the Code
However, during the financial year 2018-19, the Company of Practices and Procedures for Fair Disclosure of Unpublished Price
had not transferred any Equity shares to Investor Education Sensitive Information and (ii) the Code of Conduct to Regulate,
and Protection Fund Authority pursuant to the provisions of Monitor and Report Trading by Designated Persons in terms of the
Section 124 of the Companies Act, 2013 read with the Investor said Regulations.

Independent Auditors’ Certificate
on Corporate Governance
To
The Members of
JK Paper Limited
1. We have examined the compliance of the conditions of and as per the Guidance Note on Report or Certificates for
Corporate Governance by JK Paper Limited (“the Company”) for Special Purposes issued by the ICAI which requires that we
the year ended on 31st March, 2019, as stipulated in Regulations comply with the ethical requirements of the Code of Ethics
17 to 27, clauses (b) to (i) of regulation 46(2) and paragraphs issued by the ICAI.
C and D of Schedule V of the Securities and Exchange Board
6. We have complied with the relevant applicable requirements
of India (Listing Obligations and Disclosure Requirements)
of the Standard on Quality Control (SQC) 1, Quality Control for
Regulations, 2015, (‘SEBI Listing Regulations’) as amended.
Firms that Perform Audits and Reviews of Historical Financial
Information, and Other Assurance and Related Services
Management’s Responsibility
Engagements.
2. The compliance of conditions of Corporate Governance
is the responsibility of the management of the Company.
Opinion
This responsibility includes the design, implementation and
7. Based on our examination of the relevant records and according
maintenance of internal control and procedures to ensure the
to the information and explanations provided to us and the
compliance with the conditions of the Corporate Governance
representations provided by the Management, we certify that
as stipulated in the SEBI Listing Regulations.
the Company has complied with the conditions of Corporate
Governance as stipulated in regulations 17 to 27 and clauses
Auditor’s Responsibility
(b) to (i) of regulation 46(2) and para C and D of Schedule V of
3. Our responsibility is limited to examining the procedures
the SEBI Listing Regulations during the year ended 31st March,
and implementation thereof, adopted by the Company for
2019.
ensuring compliance with the conditions of the Corporate
Governance. It is neither an audit nor an expression of opinion 8. We state that such compliance is neither an assurance as
on the financial statements of the Company. to the future viability of the Company nor the efficiency or
effectiveness with which the Management has conducted the
4. We have examined the books of account and other relevant
affairs of the company.
records and documents maintained by the Company for the
purposes of providing reasonable assurance on the compliance
Restriction on Use
with Corporate Governance requirements by the Company.
9. This certificate is issued solely for the purpose of complying
5. We have carried out an examination of the relevant records with the aforesaid regulations. Our Certificate should not to be
of the Company in accordance with the Guidance Note on used for any other purpose or by any person other than the
Certification of Corporate Governance issued by the Institute of addressees of this Certificate. Accordingly, we do not accept
the Chartered Accountants of India (the ICAl), the Standards on or assume any liability or duty of care for any other purpose or
Auditing specified under section 143(10) of the Companies Act to any other person to whom this Certificate is shown or into
2013, in so far as applicable for the purpose of this certificate whose hands it may come without our prior consent in writing.
For LODHA & CO.

Chartered Accountants
Firm registration number: 301051E
Place: New Delhi N. K. Lodha

Date: June 18, 2019 Partner
UDIN: 19085155AAAAAY8259 Membership number 85155
90 | JK Paper Ltd.
Financial
Statements

Independent Auditor’s Report
To
The Members of
JK Paper Limited
Report on the Audit of the Standalone Financial Statements
OPINION described in the Auditor’s Responsibilities for the Audit of the

We have audited the accompanying standalone financial statements Financial Statements section of our report. We are independent
of JK Paper Limited (“the Company”), which comprise the Balance of the Company in accordance with the Code of Ethics issued by
Sheet as at 31st March 2019, the Statement of Profit and Loss the Institute of Chartered Accountants of India together with the
(including Other Comprehensive Income), Statement of Changes in ethical requirements that are relevant to our audit of the financial
Equity and the Statement of Cash Flows for the year then ended, statements under the provisions of the Companies Act, 2013 and
and notes to the financial statements, including a summary of the the Rules made thereunder, and we have fulfilled our other ethical
significant accounting policies and other explanatory information responsibilities in accordance with these requirements and the
(herein after referred to as “financial statements”). Code of Ethics. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements give KEY AUDIT MATTERS
the information required by the Companies Act, 2013 (“the Act”) in Key audit matters are those matters that, in our professional
the manner so required and give a true and fair view in conformity judgment, were of most significance in our audit of the standalone
with the accounting principles generally accepted in India, of the financial statements for the financial year ended March 31, 2019.
state of affairs of the Company as at 31st March, 2019, its Profit These matters were addressed in the context of our audit of the
including Other Comprehensive income, changes in equity and its standalone financial statements as a whole, and in forming our
cash flows for the year ended on that date. opinion thereon, and we do not provide a separate opinion on
these matters. We have determined the matters described below
BASIS FOR OPINION
to be the key audit matters to be communicated in our report. For
We conducted our audit in accordance with the Standards on
each matter below, our description of how our audit addressed the
Auditing (SAs) specified under Section 143(10) of the Companies
matter is provided in that context:
Act, 2013. Our responsibilities under those Standards are further
Description of Key Audit Matter Audit procedures to addressed the key audit matter
1. Revenue Recognition Our response to the risk
Recognition of Revenue , measurement , presentation and disclosure Our audit procedures includes:
as per Ind AS-115 “Revenue from Contracts with Customers”. • On a sample basis we performed testing to verify physical
deliveries of product in the year to ascertain transfer of control.
(Refer Note No.1(III)(i) of Accounting Policy)
• We performed revenue cut-off testing, by reference to shipment
There is possibility for material misstatement within revenue, / bill dates of sales recorded either side of the financial year end
particularly in relation to revenue being recorded in the different had legally completed.
period, due to cut off errors or management bias.
• Selected a sample of sales contracts and read, analysed and
We considered this to be a key audit matter. identified the distinct performance obligations in these
contracts ; and
• We performed walkthroughs to understand the key processes

and identify key controls related Ind AS 115 “Revenue from
Contracts with Customers”.
92 | JK Paper Ltd.
2. Valuation of financial instruments (held at fair value including Our audit procedures includes:
securities and financial Guarantees)
Control testing:
The company has given letter of comfort to banker against • We tested the design and operating effectiveness of key
borrowing facilities extended to a step subsidiary of H166 crs . Controls.
The Company has also invested H111 crs in to preference share
• Controls over the validation, completeness, implementation
capital of a subsidiary where dividend rate is not at par with market
and usage of valuation models.
instruments .
Independent reperformance:
Hence we have considered, valuation of financial instruments as key
• Our own valuation specialists independently challenged
audit matter considering complexities and financial impact involved
management on the valuations where they were outside our
over financial statements.
expected range.
Methodology choice:
• In the context of observed industry practice, our own valuation
specialists assisted us in challenging the appropriateness of
significant models and methodologies used in calculating
fair values, risk exposures, completeness of risk factors, and in
calculating FVAs.
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS RESPONSIBILITY OF MANAGEMENT AND THOSE CHARGED
AND AUDITOR’S REPORT THEREON WITH GOVERNANCE FOR THE STANDALONE FINANCIAL
The Company’s Board of Directors is responsible for the preparation STATEMENTS
of the other information. The other information comprises the The Company’s Board of Directors is responsible for the matters
information included in the Management Discussion and Analysis, stated in Section 134(5) of the Companies Act, 2013 with respect
Board’s Report including Annexures to Board’s Report, Business to the preparation of these financial statements that give a true and
Responsibility Report, Corporate Governance and Shareholder’s fair view of the financial position, financial performance, changes
Information, but does not include the standalone financial in equity and cash flows of the Company in accordance with the
statements and our auditor’s report thereon. accounting principles generally accepted in India, including the
Indian Accounting Standards (Ind AS) specified under Section
Our opinion on the financial statements does not cover the other
133 of the Act. This responsibility also includes maintenance of
information and we do not express any form of assurance conclusion
adequate accounting records in accordance with the provisions
thereon. In connection with our audit of the financial statements,
of the Act for safeguarding of the assets of the Company and for
our responsibility is to read the other information and, in doing so,
preventing and detecting frauds and other irregularities; selection
consider whether the other information is materially inconsistent
and application of appropriate accounting policies; making
with the financial statements or our knowledge obtained during the
judgments and estimates that are reasonable and prudent; and
course of our audit or otherwise appears to be materially misstated.
design, implementation and maintenance of adequate internal
If based on the work we have performed, we conclude that there is financial controls, that were operating effectively for ensuring the
a material misstatement of this other information, we are required accuracy and completeness of the accounting records, relevant to
to report that fact. the preparation and presentation of the financial statements that
We have nothing to report in this regard. 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 related to events or conditions that may cast significant doubt
responsible for assessing the Company’s ability to continue as a on the ability of the Company to continue as a going concern.
going concern, disclosing, as applicable, matters related to going If we conclude that a material uncertainty exists, we are
concern and using the going concern basis of accounting unless required to draw attention in our auditor’s report to the related
the Board of Directors either intends to liquidate the Company or to disclosures in the financial statements or, if such disclosures are
cease operations, or has no realistic alternative but to do so. inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s
Those Board of Directors are also responsible for overseeing the
report. However, future events or conditions may cause the
Company’s financial reporting process.
Company to cease to continue as a going concern.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE • Evaluate the overall presentation, structure and content of the
STANDALONE FINANCIAL STATEMENTS financial statements, including the disclosures, and whether
Our objectives are to obtain reasonable assurance about whether the financial statements represent the underlying transactions
the financial statements as a whole are free from material and events in a manner that achieves fair presentation.
misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high Materiality is the magnitude of misstatements in the financial
level of assurance, but is not a guarantee that an audit conducted statements that, individually or in aggregate, makes it probable that
in accordance with SAs will always detect a material misstatement the economic decisions of a reasonably knowledgeable user of the
when it exists. Misstatements can arise from fraud or error and are financial statements may be influenced. We consider quantitative
considered material if, individually or in the aggregate, they could materiality and qualitative factors in (i) planning the scope of our
reasonably be expected to influence the economic decisions of audit work and in evaluating the results of our work; and (ii) to
users taken on the basis of these financial statements. evaluate the effect of any identified misstatements in the financial
statements.
As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional skepticism throughout the We communicate with those charged with governance regarding,
audit. We also: among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies
• Identify and assess the risks of material misstatement of the in internal control that we identify during our audit.
financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and We also provide those charged with governance with a statement
obtain audit evidence that is sufficient and appropriate to that we have complied with relevant ethical requirements regarding
provide a basis for our opinion. The risk of not detecting a independence, and to communicate with them all relationships
material misstatement resulting from fraud is higher than for and other matters that may reasonably be thought to bear on our
one resulting from error, as fraud may involve collusion, forgery, independence, and where applicable, related safeguards.
intentional omissions, misrepresentations, or the override of
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
internal control.
1. As required by the Companies (Auditor’s Report) Order, 2016
• Obtain an understanding of internal control relevant to the (“the Order”), issued by the Central Government of India in
audit in order to design audit procedures that are appropriate terms of sub-section (11) of Section 143 of the Companies
in the circumstances. Under Section 143(3)(i) of the Companies Act,2013 we give in the “Annexure A” a statement on the
Act, 2013 we are also responsible for expressing our opinion matters specified in paragraphs 3 and 4 of the Order, to the
on whether the Company has adequate internal financial extent applicable.
controls system in place and the operating effectiveness of
2. As required by Section 143(3) of the Companies Act, 2013 we
such controls.
report that:
• Evaluate the appropriateness of accounting policies used
a) We have sought and obtained all the information and
and the reasonableness of accounting estimates and related
explanations which to the best of our knowledge and
disclosures made by management.
belief were necessary for the purposes of our audit.
• Conclude on the appropriateness of management’s use of the
b) In our opinion, proper books of account as required by law
going concern basis of accounting and, based on the audit
have been kept by the Company so far as it appears from
evidence obtained, whether a material uncertainty exists
our examination of those books.
94 | JK Paper Ltd.
c) The Balance Sheet, the Statement of Profit and Loss h) With respect to the other matters to be included in
including other comprehensive income, the Statement of the Auditor’s Report in accordance with Rule 11 of the
Changes in Equity and the Statement of Cash Flows dealt Companies (Audit and Auditors) Rules, 2014, in our
with by this Report are in agreement with the books of opinion and to the best of our information and according
account. to the explanations given to us:
d) In our opinion, the aforesaid financial statements comply i. The Company has disclosed the impact of pending
with the Indian Accounting Standards specified under litigations on its financial position in its standalone
Section 133 of the Act, read with Rule 7 of the Companies financial statements.;
ii. The Company has made provision, as required under
e) On the basis of the written representations received from the applicable law or Indian Accounting Standards,
the directors as on 31st March, 2019 taken on record by for material foreseeable losses, if any, on long-term
the Board of Directors, none of the directors is disqualified contracts including derivative contracts.;
as on 31st March, 2019 from being appointed as a director
iii. There were no amounts which were required to be
in terms of Section 164 (2) of the Act.
transferred to the Investor Education and Protection
f ) With respect to the adequacy of the internal financial Fund by the Company.
controls over financial reporting of the Company and
the operating effectiveness of such controls, refer to our
separate Report in “Annexure B”. Our report expresses
an unmodified opinion on the adequacy and operating
For LODHA & CO.
effectiveness of the Company’s internal financial controls
over financial reporting.
Firm‘s Registration No.301051E
g) The managerial remuneration for the year ended 31st
March, 2019 has been paid/ provided for by the Company (N. K. Lodha)
to its directors in accordance with the provisions of Section Place: New Delhi Partner
197 read with Schedule V to the Act. Date: 8th May, 2019 Membership No. 85155

Annexure – A to the Auditors’ Report
The Annexure referred to in Independent Auditors’ Report to the members of the JK Paper Limited on the standalone financial
statements for the year ended 31st March 2019, we report that:
(i) (a) The Company has maintained proper records showing full (iv) 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 the
fixed assets. provisions of section 185 and 186 of the Act, with respect to the
loans and investments made.
(b) The fixed assets have been physically verified by the
management according to the program of periodical (v) In our opinion and according to the information and
verification in phased manner which in our opinion is explanations given to us, the Company has complied with
reasonable having regard to the size of the company and the directives issued by the Reserve Bank of India and the
the nature of its fixed assets. The discrepancies noticed on provisions of Section 73 to76 of the Act or any other relevant
such physical verification were not material. provisions of the Act and the rules framed there under with
regard to deposits accepted from the public. We have been
(c) According to the information and explanations given to informed that no order has been passed by the Company Law
us and on the basis of our examination of the records of Board or National Company Law Tribunal or Reserve Bank of
the Company, the title deeds of immovable properties are India or any Court or other Tribunal in this regard.
held in the name of the Company as at Balance Sheet date
(vi) We have broadly reviewed the books of account maintained
except the following:
by the company pursuant to the rules made by the Central
Particular Total No. Gross Book Value Net Book Value Government for the maintenance of the cost records under
of Cases (H In Crore) (H In Crore) section 148(1) of the act in respect of the company’s products
Freehold to which the said rules are made applicable and are on the
1 20.24 20.24
Land* opinion that prima facie, the prescribed cost records have been
made and maintained. We have, however, not made a detailed
*Also Refer Note No. 2(a) of standalone financial
examination of the said records with a view to determine
statements.
whether they are accurate or complete.
(ii) The inventories of the Company (except stock in transit, which
(vii) (a) According to the records of the company, the company is
has been verified from receipt of material) have been physically
regular in depositing undisputed statutory dues including
verified by the management at reasonable intervals and the
provident fund, employees’ state insurance, income tax,
procedures of physical verification of inventory followed by
sales tax, service tax, custom duty, excise duty, value
the Management are reasonable in relation to the size of the
added tax, entry tax, goods and service tax, cess and other
Company and nature of its business. The discrepancies noticed
material statutory dues, with the appropriate authorities
on such physical verification of inventory as compared to book
to the extent applicable and there are no undisputed
records were not material and have been properly dealt with in
statutory dues payable for a period of more than six
the books of accounts.
months from the date they become payable as at 31st
(iii) The Company has not granted any loans to bodies corporate March 2019.
covered in the register maintained under section 189 of the
Companies Act, 2013 (‘the Act’), hence other parts of this clause
are not applicable.
96 | JK Paper Ltd.
(b) According to the records and information & explanations given to us, there are no dues in respect of income tax, sales tax, service
tax, goods and service tax, duty of excise and value added tax that have not been deposited with the appropriate authorities on
account of any dispute except as given below:
Name of the statute Nature of dues Period to which amount Amount involved Forum where dispute is pending
relates (H in Crores)
1981-1983 0.70 Deputy Commissioner Central Excise,
Raygada
1982-1983 0.41 Supreme Court
1986-1995 1.31 High Court, Cuttack
2005-2010 0.05 CESTAT Ahmedabad
2007-2010 2.88 CESTAT Ahmedabad
Central Excise Act,
Central Excise 2005-2014 4.12 CESTAT Ahmedabad
1944
2011-2016 2.84 Commissioner (Appeals), Surat
2004-2010 0.20 CESTAT ,Ahmedabad
2000-2005 0.49 Commissioner, Bhubaneshwar
2011-2012 0.36 Addl. Commissioner , Bhubaneshwar
2015-2016 7.42 CESTAT, Mumbai
2014-2017 0.10 Asst. Commissioner, Rayagada
Custom Act, 1962 Custom Duty 2011-2012 & 2012-2013 0.69 CESTAT Ahmedabad
Finance Act, 1944 Service Tax 2009-2010 0.25 Commissioner (Appeals), Surat
1983-84/ 1987-88 0.05 Sales Tax Department – Delhi
1997-98 0.10 Sales Tax Tribunal – Cuttack
2002-2003 0.01 Deputy Commissioner, Delhi
2005-2009 0.16 Sales Tax Tribunal – Cuttack
2006-2007 0.55 Gujarat Vat (Tribunal) Ahmedabad
Sales Tax Sales Tax
2012-2013 5.85 Additional Commissioner, Cuttack
2013-2014 0.03 Asst. Commissioner, Commercial Tax,
Raipur
2015-2016 0.37 Addl. Commissioner (Sales Tax),
Berhampur
Income Tax Act, 1961 Income Tax FY 2012-13 2.50 CIT(Appeals)
FY 2009-10 0.01 CIT(Appeals)
(viii) In our opinion, on the basis of audit procedures and according (x) Based on the audit procedures performed and on the basis
to the information and explanation given to us, the company of information and explanations given to us, no fraud by the
has not defaulted in repayment of loans and borrowings to Company or on the Company by its officers or employees has
financial institutions and banks. The company has neither taken been noticed or reported during the course of our audit.
any loan from the government nor having any outstanding
(xi) On the basis of records and information and explanations
debentures during the year.
made available and based on our examinations of the records
(ix) On the basis of information and explanation given to us, term of the company, the company has paid / provided managerial
loans have been applied for the purposes for which they were remuneration, in accordance with the requisite approvals
obtained. The Company did not raise any money by way mandated under Section 197 read with Schedule V of the Act.
of initial public offer or further public offer (including debt (Refer Note no.50(b))
instruments).

(xii) On the basis of information and explanation given to us , the (xv) According to the information and explanations given to us
Company is not a Nidhi Company. Accordingly, reporting and based on our examination of the records , the Company
under clause 3 (xii) of the said order is not applicable. has not entered into non-cash transactions with directors or
persons connected with him. Accordingly, clause 3(xv) of the
(xiii) As per the information and explanations and records made
Order is not applicable.
available by the management of the company and audit
procedures performed, for the related parties transactions (xvi) According to the information and explanation given to us , the
entered during the year, the company has complied with the Company is not required to be registered under section 45-IA
provisions of section 177 and 188 of the Act, where applicable. of the Reserve Bank of India Act 1934.
As explained and as per the records / details, the related party
transactions have been disclosed in the standalone financial
statements as required by the applicable accounting standards For LODHA & CO.
(Refer Note no.50). Chartered Accountants
(xiv) During the year, the Company has not made any preferential
allotment or private placement of shares or fully or partly paid (N. K. Lodha)
convertible debentures and hence reporting under clause 3 Place: New Delhi Partner
(xiv) of the Order is not applicable to the Company. Date: 8th May, 2019 Membership No. 85155
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 AUDITORS’ RESPONSIBILITY
reporting of JK Paper Limited (“the Company”) as of 31st March 2019 Our responsibility is to express an opinion on the Company’s internal
in conjunction with our audit of the standalone financial statements financial controls over financial reporting based on our audit. We
of the Company for the year ended on that date. conducted our audit in accordance with the Guidance Note on
Audit of Internal Financial Controls over Financial Reporting (the
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL “Guidance Note”) and the Standards on Auditing, issued by ICAI and
CONTROLS deemed to be prescribed under section 143(10) of the Companies
The Board of Director of the Company is responsible for establishing Act, 2013, to the extent applicable to an audit of internal financial
and maintaining internal financial controls based on the internal controls, both applicable to an audit of Internal Financial Controls
control over financial reporting criteria established by the Company and, both issued by the Institute of Chartered Accountants of India.
considering the essential components of internal control stated Those Standards and the Guidance Note require that we comply
in the Guidance Note on Audit of Internal Financial Controls with ethical requirements and plan and perform the audit to obtain
Over Financial Reporting issued by the Institute of Chartered reasonable assurance about whether adequate internal financial
Accountants of India (‘ICAI’). These responsibilities include the controls over financial reporting was established and maintained
design, implementation and maintenance of adequate internal and if such controls operated effectively in all material respects.
financial controls that were operating effectively for ensuring the
orderly and efficient conduct of its business, including adherence Our audit involves performing procedures to obtain audit evidence
to company’s policies, the safeguarding of its assets, the prevention about the adequacy of the internal financial controls system over
and detection of frauds and errors, the accuracy and completeness financial reporting and their operating effectiveness. Our audit
of the accounting records, and the timely preparation of reliable of internal financial controls over financial reporting included
financial information, as required under the Companies Act, 2013. obtaining an understanding of internal financial controls over
98 | JK Paper Ltd.
financial reporting, assessing the risk that a material weakness exists, INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS
and testing and evaluating the design and operating effectiveness of OVER FINANCIAL REPORTING
internal control based on the assessed risk. The procedures selected Because of the inherent limitations of internal financial controls over
depend on the auditor’s judgment, including the assessment of the financial reporting, including the possibility of collusion or improper
risks of material misstatement of the financial statements, whether management override of controls, material misstatements due to
due to fraud or error. error or fraud may occur and not be detected. Also, projections
of any evaluation of the internal financial controls over financial
We believe that the audit evidence we have obtained is sufficient
reporting to future periods are subject to the risk that the internal
and appropriate to provide a basis for our audit opinion on the
financial control over financial reporting may become inadequate
Company’s internal financial controls system over financial reporting.
because of changes in conditions, or that the degree of compliance
MEANING OF INTERNAL FINANCIAL CONTROLS OVER with the policies or procedures may deteriorate.
FINANCIAL REPORTING
OPINION
A company’s internal financial control over financial reporting is a
In our opinion, the Company has, in all material respects, an adequate
process designed to provide reasonable assurance regarding the
internal financial controls system over financial reporting and such
reliability of financial reporting and the preparation of financial
internal financial controls over financial reporting were operating
statements for external purposes in accordance with generally
effectively as at 31st March 2019, based on the internal control over
accepted accounting principles. A company’s internal financial
financial reporting criteria established by the Company considering
control over financial reporting includes those policies and
the essential components of internal control stated in the Guidance
procedures that (1) pertain to the maintenance of records that, in
Note on Audit of Internal Financial Controls Over Financial Reporting
reasonable detail, accurately and fairly reflect the transactions and
issued by the Institute of Chartered Accountants of India.
dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures For LODHA & CO.
of the company are being made only in accordance with Chartered Accountants
authorisations of management and directors of the company; and Firm‘s Registration No.301051E
(3) provide reasonable assurance regarding prevention or timely
detection of unauthorised acquisition, use, or disposition of the (N. K. Lodha)
company’s assets that could have a material effect on the financial Place: New Delhi Partner
statements. Date: 8th May, 2019 Membership No. 85155

Balance Sheet as at March 31, 2019
H in Crore (10 Million)
Particulars Note March 31, 2019 March 31, 2018
ASSETS
Non-Current Assets
Property,Plant and Equipment 2 2,567.43 2,602.70
Capital Work-in-Progress 37.10 31.56
Other Intangible Assets 3 0.27 0.21
Intangible Assets Under Development 15.10 2.84
Financial Assets
Investments 4 275.93 36.85
Loans 5 41.13 53.42
Other Financial Assets 6 16.56 16.52
Other Non-Current Assets 7 15.34 6.12
2,968.86 2,750.22
Current Assets
Inventories 8 322.47 394.23
Financial Assets
Trade Receivables 10 77.17 109.15
Cash and Cash Equivalents 11 9.24 18.85
Bank Balances other than above 12 5.80 103.17
Loans 13 73.04 -
Other Current Assets 15 106.28 89.88
1,266.78 857.64
Total Assets 4,235.64 3,607.86
EQUITY AND LIABILITIES
EQUITY
Equity Share Capital 16 178.24 175.50
Other Equity 1,862.97 1,470.09
2,041.21 1,645.59
LIABILITIES
Non-Current Liabilities
Financial Liabilities
Borrowings 17 1,074.77 971.49
Other Financial Liabilities 18 59.60 51.70
Provisions 19 7.49 6.55
Deferred Tax Liabilities (Net) 20 234.93 139.37
1,376.79 1,169.11
Current Liabilities
Borrowings 21 18.04 76.03
Trade Payables 22
Micro & Small Enterprises 0.84 0.55
Others 265.64 254.31
Other Current Liabilities 24 174.74 118.91
Current Tax Liabilities 26 7.77 2.62
817.64 793.16
Total Equity and Liabilities 4,235.64 3,607.86
Significant Accounting Policies 1
The accompanying notes referred to above form an integral part of the Standalone Financial Statements
For and on behalf of the Board of Directors
As per our report of even date. B.H. SINGHANIA Chairman
For LODHA & CO. H.P. SINGHANIA Vice Chairman & Managing Director
Chartered Accountants A.S. MEHTA President & Director
Firm’s Registration Number 301051E V. KUMARASWAMY
Chief Finance Officer
N.K. LODHA ARUN BHARAT RAM SHAILENDRA SWARUP
Partner S.C. GUPTA DHIRENDRA KUMAR UDAYAN BOSE
Membership No. 85155 Vice President & M.H. DALMIA VINITA SINGHANIA Directors
New Delhi, the 8th May, 2019 Company Secretary R.V. KANORIA S.K. ROONGTA
100 | JK Paper Ltd.

Statement of Profit & Loss for the year ended March 31, 2019
Particulars Note 2018-19 2017-18
REVENUES :
Sales 3,469.19 3,069.68
Less : Discounts 235.55 243.43
Net Sales 3,233.64 2,826.25
Other Operating Revenues 27 22.66 51.24
Revenue from Operations 3,256.30 2,877.49
Other Income 28 55.77 25.77
Total Revenue 3,312.07 2,903.26
EXPENSES
Cost of Materials Consumed 29 1,278.11 1,254.37
Purchases of Stock-in-Trade 301.53 284.48
Changes in Inventories of Finished Goods, Stock-in-Trade and Work-in-Progress 30 47.19 (10.36)
Employee Benefits Expense 31 262.26 231.71
Finance Costs 32 122.40 143.02
Depreciation and Amortisation Expenses 33 125.30 120.89
Excise Duty - 33.22
Other Expenses 34 496.93 470.74
Total Expenses 2,633.72 2,528.07
Profit Before Interest, Depreciation & Tax (EBITDA) 926.05 639.10
Profit/(Loss) Before Tax 678.35 375.19
Tax Expense
Current Tax (MAT) 144.99 73.03
Less : MAT Credit Entitlement (99.24) (69.41)
Provision / (Credit) for Deferred Tax 195.40 111.43
Profit for the period 437.20 260.14
Other Comprehensive Income
Items that will not be reclassified to statement of Profit and Loss
(i) Re-measurement Gain/(Loss) on Defined Benefit Plans (1.72) (1.86)
(ii) Tax on (i) above 0.60 0.58
(iii) Equity Instruments through Other Comprehensive Income (2.20) 0.01
(iv) Tax on (iii) above - -
Total Other Comprehensive Income for the period 433.88 258.87
Earnings per Equity Shares
1) Basic (in H) 24.57 15.29
2) Diluted (in H) 24.51 14.65

Statement of Changes In Equity for the year ended March 31, 2019
A. EQUITY SHARE CAPITAL H in Crore (10 Million)
Changes in Equity Share Capital
March 31, 2018 March 31, 2019
during 2018-19
175.50 2.74 178.24
B. OTHER EQUITY
Reserve and Surplus
(OCI)
Items that will not be
Retained
Particulars Capital Securities Reclassified to profit or loss Total
Earnings Retained Capital General
Redemption Premium Re-measurement Equity
Earnings Reserve Reserve
Reserve Reserve of the net defined Instruments
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 (200.00) - - - - 200.00 - - -
Retained Earnings
Other - - - - - - (1.12) (2.20) (3.32)
Comprehensive
Income for the year
Transfer to (4.74) - - - 4.74 - - - -
debenture
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
102 | JK Paper Ltd.

Notes to the Standalone Financial Statement
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 Ltd. 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 08, 2019.
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 followed 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 INR Crore (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.

Notes to the Standalone Financial Statement (Contd.)
Note 1. Company Overview, Basis of Preparation & Significant Accounting Policies (Contd.)
III. Significant Accounting Policies for the year ended March 31, 2019.
(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. The impact of
adoption of Ind AS 115 is immaterial on the financial statements in current year 2018-19 on the recognition and measurement of
revenue compared to erstwhile standard Ind AS 18.
Sale of goods
Revenue from the sale of goods is recognised, when all the significant risks and rewards of ownership of the goods have passed
to the buyer, 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.
104 | JK Paper Ltd.

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
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. 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 determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception
of the lease. The arrangement is, or contains, a lease if fulfillment of the arrangement is dependent on the use of a specific asset or
assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.
Finance Lease
Finance Lease that transfer substantially all of the risks and benefits incidental to ownership of the leased item, are capitalised at
the commencement of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease
payments. Lease payments are apportioned between finance charges and a reduction in the lease liability so as to achieve a
constant rate of interest on the remaining balance of the liability .Finance charges are recognised in finance costs in the statement
of profit and loss unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the
Company’s policy on borrowing costs.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will
obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset or
the lease term.

Operating Lease
Assets acquired on leases where a significant portion of the risks and rewards of ownership are retained by lessor are classified as
operating leases. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of
the leased asset. Payments under operating lease are recorded in the Statement of Profit and Loss on a straight line basis over the
period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the
expected inflationary cost increases.
(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 statement of profit or loss. The losses arising from impairment
are recognised in the Statement of Profit or Loss.
(b) Financial Assets at Fair value through Other Comprehensive Income

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
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.
106 | JK Paper Ltd.

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 in the Statement
of 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 in the Statement of 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.
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 &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 the
Statement of profit and 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 the statement of profit & 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 in the statement of profit & 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.
108 | JK Paper Ltd.

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 the Statement of Profit and Loss 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 (INDAS)-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 statement of 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:

(i) When the entity can no longer withdraw the offer of those benefits; and
(ii) 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

(a) 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.
(b)
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.
(c)
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.
110 | JK Paper Ltd.

(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.
(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.
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.
(xviii) Accounting standards, interpretations and amendments to existing standards that are effective from 1st April , 2019
Ministry of Corporate Affairs (“MCA”), through Companies (Indian Accounting Standards) Amendment Rules, 2019 and
Companies (Indian Accounting Standards) Second Amendment Rules, has notified the following new and amendments to Ind
ASs which are effective from 1st April, 2019
1. W.e.f. 1st April 2019 Ind AS 116 Leases will replace existing leases standard, Ind AS 17 Leases. Lessee will follow Single Lease
Accounting. There is no classification as operating or finance Lease for lessee. Under Ind AS 116 Lessee will recognize
assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Lessee
would recognize depreciation expense on the right of use asset and interest expense on the lease liability, classify the
112 | JK Paper Ltd.

lease payments into principal and interest component. Management is currently reviewing the operating lease contracts
in place to determine the impact of this standard.
2. The following standards or amendments made in below mentioned standards are not expected to have a material impact
over financial statements:
i) Ind AS 12 Income taxes (amendments relating to income tax consequences of dividend and uncertainty over income
tax treatments)
ii) Ind AS 109 – Prepayment Features with Negative Compensation
iii) Ind AS 19 – Plan Amendment, Curtailment or Settlement
iv) Ind AS 23 – Borrowing Costs
v) Ind AS 28 – Long-term Interests in Associates and Joint Ventures
vi) Ind AS 103 – Business Combinations and Ind AS 111 – Joint Arrangements

NOTE 2. PROPERTY, PLANT AND EQUIPMENT (PPE) H in Crore (10 Million)
Description Gross Carrying Value Depreciation Net Carrying Value
April 01, Additions/ Sales/ March 31, April 01, For the On Sales/ March 31, March 31, March 31,
2018 Adjustments Adjustments 2019 2018 year Adjustments 2019 2019 2018
Land - Freehold (a) 275.33 - - 275.33 - - - - 275.33 275.33
- Leasehold 82.76 - - 82.76 4.41 1.47 - 5.88 76.88 78.35
Building 287.27 7.57 0.41 294.43 30.98 10.99 0.38 41.59 252.84 256.29
Plant & Equipment (b) 2,216.68 77.91 8.60 2,285.99 248.28 107.70 5.74 350.24 1,935.75 1,968.40
Furniture and 1.88 2.03 0.01 3.90 0.81 0.22 - 1.03 2.87 1.07
Fixture
Office Equipment 8.25 2.48 2.41 8.32 3.80 1.84 2.24 3.40 4.92 4.45
Vehicles & 19.04 4.38 2.97 20.45 2.17 2.70 1.47 3.40 17.05 16.87
Locomotive
Railway Siding 2.57 - - 2.57 0.63 0.15 - 0.78 1.79 1.94
Total 2,893.78 94.37 14.40 2,973.75 291.08 125.07 9.83 406.32 2,567.43 2,602.70
Previous year 2,808.36 89.52 4.10 2,893.78 174.07 119.66 2.65 291.08 2,602.70
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 Crore (Previous year H20.24 Crore) for which title is yet to be transferred in name of the Company.
b) During the year H5.83 Crore has been deducted in Plant & Equipment due to Foreign Exchange Fluctuation (Net) (Previous year H25.92 Crore was added).
NOTE 3. OTHER INTANGIBLE ASSETS

Description Gross Carrying Value Amortisation Net Carrying Value
April 01, Additions/ Sales/ March 31, April 01, For the On Sales/ March 31, March 31, March 31,
2018 Adjustments Adjustments 2019 2018 year Adjustments 2019 2019 2018
Computer Software 3.90 0.29 - 4.19 3.69 0.23 - 3.92 0.27 0.21
Total 3.90 0.29 - 4.19 3.69 0.23 - 3.92 0.27 0.21
Previous year 3.87 0.03 - 3.90 2.46 1.23 - 3.69 0.21
NOTE 4. NON- CURRENT INVESTMENTS

Particulars Face Value March 31, 2019 March 31, 2018
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 6.64 1,91,000 8.84
Unquoted, Equity shares fully paid up
Investments Carried at Cost
Investment in Equity instruments of Subsidiaries
JK Enviro-Tech Limited 10/- 1,08,16,652 12.68 16,50,000 1.68
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 25,00,000 16.43
The Sirpur Paper Mills Limited- (w.e.f 1st August 2018) 90,00,000 9.00 - -
Unquoted, Preference shares fully paid up
JK Enviro-tech Limited 100/- 2,11,00,000 184.87 - -
Equity Component of Preference Share- JK Enviro-Tech Limited - 29.94 - -
Deemed Equity Contribution # - 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/-)
275.93 36.85
Aggregate book value of unquoted investments 269.29 28.01
Aggregate market value of quoted investments 6.64 8.84
# Fair Value of Letter of Comfort given for The Sirpur Paper Mills Limited.
114 | JK Paper Ltd.

NOTE 5. NON CURRENT FINANCIAL ASSETS - LOANS H in Crore (10 Million)
Particulars March 31, 2019 March 31, 2018
Unsecured considered good :-
Loans and advances to related parties (Subsidiaries)
Jaykaypur Infrastructure & Housing Limited. 18.33 27.50
Songadh Infrastructure & Housing Limited. 5.33 8.00
Other Loans & Advances (at amortised cost)
JK Paper Employees’ Welfare Trust 17.47 17.92
TOTAL 41.13 53.42
NOTE 6. NON CURRENT FINANCIAL ASSETS - OTHERS

Deposits with Government Authorities 1.58 5.98
Derivative Financial Instruments (at fair value through Profit & Loss) 4.94 7.62
Others 10.04 2.92
TOTAL 16.56 16.52
NOTE 7. OTHER NON CURRENT ASSETS

Capital Advances 7.24 1.74
Deposits with Government Authorities and Others 8.10 4.38
TOTAL 15.34 6.12
NOTE 8. INVENTORIES
Raw Materials # 171.52 211.99
Work-in-Progress @ 20.11 11.28
Finished Goods 39.13 67.03
Stock in Trade 24.98 53.11
Stores & Spares # 66.72 50.82
Renewable Energy Certificates 0.01 -
TOTAL 322.47 394.23
# Includes Raw Materials in transit H2.07 Crore (As at 31-03-18 H3.68 Crore) and Stores & Spares in transit H1.48 Crore (As at 31-03-18 H0.80 Crore).
@ Includes Pulp in process H10.77 Crore (As at 31-03-18 H3.81 Crore) and Semi Finished Goods H 9.35 Crore (As at 31-03-18 H7.29 Crore).
NOTE 9. CURRENT INVESTMENTS

Investments in Liquid Funds- at fair value through Profit & Loss
Investment in Non Convertible Debenture 499.48 -
Investment in Mutual Fund 112.24 127.22
FD with Non Schedule Bank 25.00 -
TOTAL 636.72 127.22
Aggregate book value of quoted investments 112.24 127.22
Aggregate book value of unqoted investments 524.48 NIL

NOTE 10. TRADE RECEIVABLES H in Crore (10 Million)
Unsecured
Considered Good# 77.17 109.15
Credit Impaired 0.35 0.20
77.52 109.35
Less: Allowance for credit impairment 0.35 0.20
TOTAL 77.17 109.15
# Includes H3.70 Crore (As at 31-03-18 HNIL) of The Sirpur Paper Mills Limited, related party.
NOTE 11. CASH AND CASH EQUIVALENTS

Current Accounts 9.02 18.48
Cheques/Drafts on hand 0.09 0.08
Cash on Hand 0.13 0.29
TOTAL 9.24 18.85
NOTE 12. BANK BALANCE OTHER THAN CASH AND CASH EQUIVALENTS
Other Bank Balances
Unclaimed Dividend Accounts 0.20 0.13
Fixed Deposit with Scheduled Banks # 5.60 103.04
TOTAL 5.80 103.17
# Includes H0.51 Crore (As at 31-03-18 H0.45 Crore) pledged with Government Authorities.
NOTE 13. CURRENT FINANCIAL ASSETS - LOANS

Unsecured considered good
Loans to related parties:
JK Enviro-Tech Limited (Subsidiary) 1.20 -
Jaykaypur Infrastructure & Housing Limited (Subsidiary) 9.17 -
Songadh Infrastructure & Housing Limited (Subsidiary) 2.67 -
Bengal & Assam Co. Limited.-(Associate of ) 60.00 -
TOTAL 73.04 -
116 | JK Paper Ltd.

NOTE 14. CURRENT FINANCIAL ASSETS - OTHER H in Crore (10 Million)
Advances to Related Parties- (Subsidiaries)
Jaykaypur Infrastructure & Housing Limited. 0.02 4.79
The Sirpur Paper Mills Limited. 3.60 -
Advances Recoverable 0.46 2.65
Interest Accrued but not due 29.21 4.53
Advances to Employees 0.70 0.55
TOTAL 36.06 15.14
NOTE 15. OTHER CURRENT ASSETS

Advances to Suppliers 40.81 61.45
Indirect Tax Recoverable 50.45 14.49
Other Deposits 9.22 1.13
Prepaid Finance Charges 0.23 4.42
Doubtful Advances
Other 0.60 0.49
106.88 90.37
Less : Allowance for Doubtful Advances 0.60 0.49
TOTAL 106.28 89.88
NOTE 16. SHARE CAPITAL

Authorised :
Equity Shares - 30,00,00,000 300.00 300.00
(30,00,00,000 Equity Share of H10 each as at 31-03-2018)
Redeemable Preference Shares - 2,00,00,000 200.00 200.00
(2,00,00,000 Share of H100 each as at 31-03-2018)
500.00 500.00
Issued, Subscribed and Paid-up :
Equity Shares - 17,82,43,585 (17,55,00,850 Equity Share of 178.24 175.50
H10 each fully paid up at 31-03-2018)
178.24 175.50
Notes :
a. Reconciliation of Equity Share Capital (In numbers)
Shares outstanding at the beginning of the year 17,55,00,850 15,59,58,865
Add : Shares issued during the year 27,42,735 1,95,41,985
Shares outstanding at the end of the year 17,82,43,585 17,55,00,850

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 3,64,18,299 3,64,18,299
BMF Investments Limited. 3,00,89,797 3,00,89,797
Florence Investech Limited 1,18,33,332 1,18,33,332
Trustees, JK Paper Employees Welfare Trust 98,28,655 98,28,655
NOTE 17. NON CURRENT FINANCIAL LIABILITIES - BORROWINGS H in Crore (10 Million)
SECURED
Term Loan
From Banks 836.04 1,000.66
From Financial Institutions 135.70 178.65
Non Convertible Debentures (NCDs) 331.57 -
UNSECURED
Foreign Currency Convertible Bonds (FCCB's) - 19.33
Loan from Related Party - 7.45
Public Deposits 28.66 27.41
1,331.97 1,233.50
Less : Current Maturities of Long Term (Non-current) Borrowings 257.20 262.01
TOTAL 1,074.77 971.49
A. Term Loans of H383.03 Crore (FIs – HNil, Banks H383.03 Crore) and NCD of H335 Crore are secured by means of first pari passu mortgage/
charge on the fixed assets of the Company . Out of the above Term Loan, H197.23 Crore (FIs - HNil, Banks H197.23 Crore) 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 H383.03 Crore are repayable in total 100 quarterly instalments from April 2019 to October 2024.
2 NCDs of H335.00 Crore is repayable in 15 Half yearly installment from September 2021 to July 2028.
B. Term Loans of H597.03 Crore (FIs – H136.00, Banks H461.03 Crore) 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 H228.40 Crore are repayable in total 49 equal Quarterly-instalments from June 2019 to September 2027.
2 Term Loans aggregating to H234.79 Crore are repayable in total 24 equal half-yearly instalments from May 2019 to August 2023.
3 Term Loans aggregating to H133.84 Crore are repayable in total 69 Quarterly instalmenst from May 2019 to Mar 2024.
C. Term Loans aggregating to H1.56 Crore (FIs – H Nil, Banks H1.56) are secured by specific charge on the Vehicle hypothicated against these
loans. These Term Loans are repayable in total 45 monthly instalments from April 2019 to December 2022.
D. Secured Term loans from Financial Institutions and Banks have been reduced by H9.88 Crore (FIs – H0.30 Crore, Banks H9.58 Crore) and
NCDs have been reduced by H3.43 Crore due to effective rate of interest.
E. Certain charges are in the process of satisfaction. Secured Term loans from Financial Institutions and Banks include H293.11 Crore foreign
currency loans.
F. Public deposits are due for repayment in 2019-20, 2020-21 & 2021-22.
118 | JK Paper Ltd.

NOTE 18. NON CURRENT FINANCIAL LIABILITIES - OTHER H in Crore (10 Million)
Trade Deposits 56.11 48.25
Interest Accrued but not due on Loans 0.73 1.21
Financial Obligation Towards Letter of Comfort 0.84 -
TOTAL 59.60 51.70
NOTE 19. NON CURRENT PROVISIONS

Provision for Employee Benefits (refer note 49) 7.49 6.55
TOTAL 7.49 6.55
NOTE 20. DEFERRED TAX LIABILITIES

Tax on difference between book value of depreciable assets as per books of account and 477.42 421.72
written down value as per Income Tax
Tax on carried forward unabsorbed Depreciation - (125.19)
Tax on Others 23.02 9.11
a. Total Deferred Tax Liability 500.44 305.64
Opening MAT Credit Entitlements (166.27) (96.86)
Current MAT Credit Entitlement (99.24) (69.41)
b. Total MAT Credit Entitlement (265.51) (166.27)
c. Net Deferred Tax Liability (a+b) 234.93 139.37
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. CURRENT FINANCIAL LIABILITIES - BORROWINGS

SECURED
Working Capital Borrowings from Bank 14.29 50.89
UNSECURED
Vendor Bill Discounting - 1.31
Buyer's Credit facilities from Bank - 22.10
TOTAL 18.04 76.03
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 H in Crore (10 Million)
Trade Payable
Total outstanding dues of Micro and Small Enterprises (refer note 48) 0.84 0.55
Total Outstanding dues of Creditors other than Micro and Small Enterprises 265.64 254.31
TOTAL 266.48 254.86
NOTE 23. CURRENT FINANCIAL LIABILITIES - OTHER

Current Maturities of Non Current Borrowings 257.20 262.01
Unclaimed Dividends # 0.20 0.13
Unclaimed Matured Deposits # 0.88 0.72
Unclaimed Interest on Unclaimed Matured Deposits # 0.16 0.11
Advances from related parties (Subsidiary)
Songadh Infrastructure & Housing Limited 0.41 0.73
Capital Creditors 4.40 1.17
Other Payables 70.72 55.15
TOTAL 345.06 334.86
# Investor Education and Protection Fund will be credited as & when due.
NOTE 24. OTHER CURRENT LIABILITIES

Advance from Customers 8.17 7.17
Statutory Dues 44.33 16.00
TOTAL 174.74 118.91
NOTE 25. SHORT TERM PROVISIONS

Provision for Employee Benefits 5.55 5.88
TOTAL 5.55 5.88
NOTE 26. CURRENT TAX LIABILITIES

Provision for Income Tax (Net of Advance tax ) 7.77 2.62
TOTAL 7.77 2.62
120 | JK Paper Ltd.

NOTE 27. OTHER OPERATING REVENUES H in Crore (10 Million)
Excess Provision no longer required written back 0.61 -
Miscellaneous Income 22.05 51.24
TOTAL 22.66 51.24
NOTE 28. OTHER INCOME

Interest Income 40.48 10.31
Dividend Income 0.01 0.01
Profit on Sale/Fair value of Current investment 15.28 15.45
TOTAL 55.77 25.77
NOTE 29. COST OF MATERIALS CONSUMED

Hardwood & Bamboo 545.45 611.13
Pulp 325.38 252.68
Chemicals 316.11 291.27
Packing Material 91.17 99.29
TOTAL 1,278.11 1,254.37
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 53.11 15.88
Work-in-Progress 11.28 17.49
Renewable Energy Certificates - 0.22
131.42 127.85
Inventories at the end of the year
Stock-in-Process 20.11 11.28
84.23 131.42
Add:- Excise Duty on Variation of Stock - (6.79)
(Increase)/ Decrease in Stock TOTAL 47.19 (10.36)

NOTE 31. EMPLOYEE BENEFIT EXPENSES H in Crore (10 Million)
Salaries, Wages, Allowances, etc. 242.89 213.13
Contribution to Provident and Other Funds 12.22 12.21
Staff Welfare Expenses 7.15 6.37
TOTAL 262.26 231.71
NOTE 32. FINANCE COSTS

Interest on:
Term Loan and Fixed Deposits 100.05 122.88
Others 10.75 9.80
Other Borrowing Costs:
Financial Charges 7.09 12.85
Premium on Forward Exchange Contracts 0.60 0.47
Net (Gain) or Loss on Foreign Currency Transaction 3.91 (2.98)
TOTAL 122.40 143.02
NOTE 33. DEPRECIATION AND AMORTISATION EXPENSES

Depreciation on Property Plant & Equipment 125.07 119.66
Amortisation of Other Intangible Assets 0.23 1.23
TOTAL 125.30 120.89
NOTE 34. OTHER EXPENSES

Consumption of Stores and Spares 59.40 60.03
Power, Fuel and Water 258.67 245.59
Repairs to Building 12.41 11.07
Repairs to Machinery 31.70 24.54
Rent (Net) 16.43 16.80
Insurance 3.95 4.06
Rates and Taxes 1.03 0.88
Commission on Sales 2.93 3.74
Directors' Fees 0.38 0.14
Directors' Commission 3.40 1.99
Loss on Foreign Exchange Fluctuation 1.77 3.06
Loss on Sale of Assets 0.37 0.17
Asset Written off 0.74 0.10
Bad Debts (0.09) 17.70
Less: Withdrawal from Provision for Doubtful Debts - 15.42
Less: Withdrawal from Provision for Doubtful Advance (0.11) 0.02 1.44 0.84
Provision for Doubtful Debts 0.15 0.19
Other Miscellaneous Expenses 103.58 97.54
TOTAL 496.93 470.74
122 | JK Paper Ltd.

NOTE 35. CONTINGENT LIABILITIES & COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
Particulars Year ended Year ended
March 31, 2019 March 31, 2018
Contingent Liabilities:
a) Claim against the Company not acknowledged as debts #.
Excise duty/ Custom duty/Service tax liability in respect of matter in appeals 19.32 18.08
Sales tax/ VAT/Octroi liability in respect of matter in appeals 0.97 0.91
Income tax liability that may arise in respect of matters in appeal referred by the 0.63 0.77
department
Other matters 7.26 7.26
b) Commitments:
Contracts remaining to be executed on capital account (Net of Advances) 42.16 47.45
Export commitments against import of capital goods under EPCG scheme 49.95 160.83
# 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.
In respect of levy of Octroi pertaining to Unit - CPM by Songadh Group Gram Panchayat, the Company has paid H1.25 Crore 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.
NOTE 37.
(A) The Audited GST return for the year ended March 31, 2018 is pending for the filing as competent authority has extended the date of
filing till June 30, 2019. 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.
(B) Hon’ble Supreme Court has pronounced a judgement in February, 2019 making clarification with respect to the definition of Wages for
the purpose of Employees Provident Fund contribution. Further petitions have been filed with the Supreme Court seeking additional
clarifications and there has been no clarity either from Govt., or from other concerned authorities.
In light of the above, the Company has not made any provision of the same in the financial statements. However, appropriate accounting
treatment will be given in its ensuing Financial Statements as and when clarification is received.

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
March 31, 2019 March 31, 2018
1. Gross amount required to be spent by the Company during the year 4.69 2.12
2. Amount spent during the year
Promotion of Education 0.60 1.11
Health Care 0.49 0.45
Others 2.26 0.50
TOTAL 3.35 2.06

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:
Name of the Company Balance as at Maximum outstanding during
Year ended Year ended Year ended Year ended
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
a. Loans and advances in the nature of loans given to
subsidiaries
JK Enviro-Tech Limited 1.20 - 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
b. Loans and advances in the nature of loans where Nil Nil Nil Nil
repayment schedule is not specified
c. Loans and advances in the nature of loans where Nil Nil Nil Nil
interest is not charged
ii. Loans given to JK Paper Employees` Welfare Trust 17.47 17.93 17.93 17.93
iii. 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 H166.14 Crore (Previous Year HNil).
NOTE 40.
a) Sales include export incentives of H10.13 Crore (Previous year H11.08 Crore).
b) Interest Income includes H2.45 Crore (Previous year H1.41 Crore) on Deposits with Banks, HNIL (Previous year H0.05 Crore) on Income Tax
refund and H38.03 Crore (Previous year H8.85 Crore) on others.
c) Scrap sale of H9.23 Crore (Previous year H8.87 Crore) has been netted off from Consumption of Stores and Spares.
NOTE 41. LEASES

a) The Company has taken office spaces on operating lease basis. The operating lease arrangements, are renewable on a periodic basis and
for most of the leases extend up to a maximum of 7 years from their respective dates of inception and relates to rented premises. Some
of these lease agreements have price escalation clauses.
Obligations on long-term, non-cancellable operating leases:

The lease rentals charged during the year is as under:
March 31, 2019 March 31, 2018
Lease Rentals recognized during the year (Excluding Tax) 7.44 7.12
The obligations on long-term, non-cancellable operating leases payable as per the
rentals stated in the respective agreements are as follows:
Future minimum lease payable
Not later than one year 7.44 7.44
Later than one year and not later than five years 16.68 23.80
Later than five years - 0.32
124 | JK Paper Ltd.

Note 42. EXPENDITURE ON RESEARCH AND DEVELOPMENT (R&D) ACTIVITIES H in Crore (10 Million)
March 31, 2019 March 31, 2018
a. Revenue Expenditure *
Employee Cost 2.32 2.09
Cost of Materials 0.98 0.54
Other Expenses 0.62 0.34
Sub Total 3.92 2.97
b. Capital Expenditure 0.29 0.89
Total (a+b) 4.21 3.86
* Included in respective revenue accounts..
NOTE 43. OTHER DISCLOSURE REQUIRED BY STATUTE

March 31, 2019 March 31, 2018
Auditors Remuneration ( including taxes)
1. Statutory Auditors
i. Audit Fee 0.21 0.19
ii. Tax Audit Fee 0.03 0.03
iii. Certification/other Services 0.03 0.20
iv. Out of Pocket Expenses - 0.02
TOTAL 0.27 0.44
2. Cost Auditors
i. Audit Fee 0.01 0.01
ii. Out of Pocket Expenses (CY H20,532/- PY H15,458/-) 0.00 0.00
TOTAL 0.01 0.01
NOTE 44. EXPENSES INCLUDED UNDER OTHER HEADS OF ACCOUNT

March 31, 2019 March 31, 2018
Salaries, Wages and Allowances etc. 5.98 6.08
Employees’ Welfare and Other benefits 0.35 0.37
Rent 0.10 0.10
Insurance 0.01 0.01
Rates and Taxes (CY H1920/- PY H NIL) 0.00 -
Miscellaneous Expenses 1.00 (0.19)
TOTAL 7.88 6.79

NOTE 45. Capital Work in progress includes following expenses pending allocation / capitalization H in Crore (10 Million)
March 31, 2019 March 31, 2018
Consultancy 1.96 -
Salary & Wages 3.92 -
Travelling and Other Misc. Expenses 2.02 -
TOTAL 7.90 -
NOTE 46. During the 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

March 31, 2019 March 31, 2018
a) Profit (Operating) after tax for Basic Earnings Per share 437.20 260.14
Add: Interest on Foreign Currency Convertible Bonds ( FCCBs) (net of tax) (0.33) 0.91
Profit for Diluted Earnings Per Share 436.87 261.05
b) Weighted Average Number of Ordinary Shares
Basic 17,79,65,554 17,01,22,773
Effect of Conversion Option 2,78,031 81,20,814
Diluted 17,82,43,585 17,82,43,587
c) Nominal Value of Ordinary Shares H10/- H10/-
d) Earning Per Ordinary Share ( H)
Basic 24.57 15.29
Diluted 24.51 14.65
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 entrprises under Section 22 of ‘The Micro,
Small and Medium Enterprises Development Act, 2006, are given below:
March 31, 2019 March 31, 2018
a) Principal amount and Interest due thereon remaining unpaid to any supplier NIL NIL
as on
b) Interest paid by the Company in terms of Section 16 of the MSMED Act NIL NIL
along with the 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 NIL NIL
payment (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 NIL NIL
succeeding 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.
126 | JK Paper Ltd.

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 H0.64 Crore (Previous year
H0.60 Crore) for Superannuation Fund.
b) Other long-term benefits

Amount recognized as an expense and included in Note 31 Item “Salaries, Wages, Allowances etc. H3.80 Crore (Previous year H3.21 Crore)
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” H9.39 Crore (Previous
year H9.10 Crore) for Provident and other fund
(ii) Gratuity Expense H2.42 Crore (Previous year H2.73 Crore) has been recognized in “Contribution to Provident and Other Funds” under
Note 31. as per Actuarial Valuation
March 31, 2019 March 31, 2018
Gratuity Gratuity
Funded Funded
I Change in present value of obligation during the year
Present value of obligation at the beginning of the year 37.72 36.62
Included in statement of profit and loss:
- Current Service Cost 2.07 1.96
- Interest Cost 2.93 2.67
- Past Service Cost - 0.29
- Actuarial Gain/(Loss) - -
Included in OCI:
Actuarial losses/(gains) arising from:
- Experience adjustments 2.05 2.48
- Financial assumption (0.02) (1.18)
Others
Benefits Paid (4.96) (5.12)
Present Value of obligation as at year-end 39.79 37.72
II Change in Fair Value of Plan Assets during the year
Plan assets at the beginning of the year 33.14 30.02
Included in statement of profit and loss:
Expected return on plan assets 2.58 2.19
Included in OCI:
Actuarial Gain/(Loss) on plan assets 0.30 (0.55)
Others:
Employer's contribution 4.58 6.60
Benefits paid (4.96) (5.12)
Plan assets at the end of the year 35.64 33.14
The plan assets are managed by the Gratuity Trust formed by the Company.

NOTE 49. EMPLOYEE BENEFITS (Contd.)
March 31, 2019 March 31, 2018
Gratuity Gratuity
Funded Funded
III Reconciliation of Present value of Defined Benefit Obligation and Fair
Value of Plan Assets
1 Present Value of obligation as at year-end (39.79) (37.72)
2 Fair value of plan assets at year -end 35.64 33.14
3 Funded status {Surplus/(Deficit)} (4.14) (4.58)
Net Asset/(Liability) (4.14) (4.58)
IV Expenses recognised in the Statement of Profit and Loss
1 Current Service Cost 2.07 1.96
2 Interest Cost 2.93 2.67
3 Past service Cost - 0.29
4 Expected return on plan assets (2.58) (2.19)
Total Expense 2.42 2.73
V Expenses recognised in the Statement of Other Comprehensive Income
1 Net Actuarial (Gain)/Loss 2.03 1.30
2 Expected return on plan assets excluding interest income (0.30) 0.55
Total Expense 1.73 1.85
VI Constitution of Plan Assets
1 Equity Instruments - -
2 Debt Instruments - -
3 Property - -
4 Insurance 35.64 33.14
VII Bifurcation of PBO at the end of the year
1 Current Liability 4.14 4.58
2 Non-Current Liability - -
VIII Actuarial Assumptions
1 Discount Rate 7.79% 7.78%
2 Expected rate of return on plan assets 7.79% 7.78%
3 Mortality Table IALM (2006-08) IALM (2006-08)
4 Salary Escalation 5.00% 5.00%
5 Turnover Rate Age up to 30-3%, Age up to 30-3%,
up to 44-2%, above up to 44-2%, above
44-1% 44-1%
128 | JK Paper Ltd.

NOTE 49. EMPLOYEE BENEFITS (Contd.)
IX The expected contribution for Defined Benefit Plan for the next financial year will be H3.98 Crore
X Experience Adjustment : Gratuity 2018-19 2017-18 2016-17 2015-16 2014-15
Present Value of obligation 39.79 37.72 36.62 31.04 28.24
Fair value of Plan assets 35.64 33.14 30.02 27.77 29.98
Net Asset/(Liability) (4.14) (4.58) (6.60) (3.27) 1.74
Actuarial (Gain)/Loss on plan obligation 2.05 2.48 4.30 3.62 (4.55)
Actuarial Gain/(Loss) on plan assets 0.30 (0.55) 1.34 (0.21) 1.19
XI Sensitivity Analysis
Gratuity Year ended March 31, 2019 Year ended March 31, 2018
Increase Decrease Increase Decrease
Discount rate (1% movement) (2.32) 2.64 (2.19) 2.49
Future salary growth (1% movement) 2.65 (2.36) 2.49 (2.25)
Employee turnover (1% movement) 0.54 (0.60) 0.49 (0.55)
XII Maturity Profile of projected benefit obligation from the fund

Year ended Year ended
Gratuity Gratuity
Funded Funded
1st Following Year 5.18 5.53
2nd Following Year 2.61 2.52
3rd Following Year 3.50 3.48
4th Following Year 10.33 3.30
5th Following Year 2.87 9.11
Sum of Years 6th to 10th 12.61 12.57
NOTE 50. RELATED PARTY DISCLOSURES

Particulars % of Shareholding/ Voting Power
2018-19 2017-18
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. Joint Venture
JK Enviro-Tech Limited (JKETL) 92.85% 100%
iii. Step-dpwn Subsidiary
The Sirpur Paper Mills Limited (w.e.f 1st August 2018) 71.26% NA
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

NOTE 50. RELATED PARTY DISCLOSURES (Contd.)
vii.
Key Management Personnel (KMP)
Executive Executive Directors Non-Executive Directors
Shri Harsh Pati Singhania, Vice Chairman & Managing Director Shri Bharat Hari Singhania, Chairman
Shri Om Prakash Goyal, Wholetime Director (till 30th Shri Arun Bharat Ram
September 2018) Shri Dhirendra Kumar
Shri Amar Singh Mehta, President and Director (w.e.f 1st October Shri M.H.Dalmia
2018) Shri R.V.Kanoria
Executives Shri Sandip Somany
Shri V. Kumaraswamy, Chief Finance Officer Shri Shailendra Swarup
Shri S.C. Gupta, Vice President & Company Secretary Shri Udayan Bose
Relative of KMP Smt. Vinita Singhania
Shri Shrivats Singhania, Vice President (Marketing Development) Shri Wim Wienk (till 12th November 2018)
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:
Sl. Nature of Transactions Subsidiaries (Wholly Owned) Subsidiary
No JIHL SIHL JKPI (S) PL JKETL
2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18
(i) Reimbursement of Expenses
- - - - - - - -
– Paid
(ii) Reimbursement of Expenses –
- - 0.01 0.01 - - - -
Received
(iii) Rent Paid 4.09 5.23 2.02 2.38 - - - -
(iv) Interest Received 2.48 2.71 0.72 0.79 - - 0.04 -
(v) Loans Given - - - - - - 2.25 -
(vi) Advance Given - - - - - - - -
(vii) Loan Instalment Received - - - - - - 1.05 -
(viii) Investment in Preference share - - - - - - 211.00 -
(ix) Investment in Equity share - - - - - - 11.00 -
(x) Purchase of share of JK Paper
International (Singapore) Pte. - - - - 5.63 8.43 - -
Limited
(xi) Outstanding at end of the
33.10 32.29 7.59 7.27 - - 212.20 -
period - Receivable
Sl. Nature of Transaction Step-down Subsidiary

No. The Sirpur Paper Mills Limited
2018-19 2017-18
(i) Reimbursement of Expenses – Received 2.00 -
(ii) Interest Received 0.69 -
(iii) Sale of Material including Pulp 3.88 -
(iv) Sale of Capital Equipment’s 2.44 -
(v) Loans Given 55.00 -
(vi) Loan installment received 55.00 -
(vii) Investment in Equity share 9.00 -
(viii) Outstanding at end of the period - Receivable 7.30 -
130 | JK Paper Ltd.

Sl. Nature of Transaction Enterprise which holds more than
No. 20% of Equity Share
BACL
2018-19 2017-18
(i) Interest Paid 0.01 1.32
(ii) Rent Paid 0.06 0.05
(iii) Loans Given 85.00 -
(iv) Loan installment received 25.00 -
(v) Interest Received 2.92 -
(vi) Loan Repaid 7.50 32.50
(vii) Outstanding at end of the period - Receivable 60.81 -
(viii) Outstanding at end of the period - Payable - 7.50
Sl. Nature of Transactions Trust under common control

No. Employees Provident Employees Gratuity Officers Superannuation
Fund Fund Scheme
2018-19 2017-18 2018-19 2017-18 2018-19 2017-18
(i) Contribution 3.91 3.52 4.14 4.58 0.64 0.60
(ii) Outstanding at end of the period- Payable 0.35 0.30 0.69 0.67 0.64 0.60
Key Management Personnel (KMP) :
Sl. Particulars 2018-19 2017-18

No
(i) Short-term Employee Benefits # 35.18 27.00
(ii) Commission and other benefits to Non-Executive Directors * 3.78 2.13
# 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 H in Crore (10 Million)
Sl. Particulars As at March 31, 2019 As at March 31, 2018
Fair value
No. Note Carrying Fair Carrying Fair
hierarchy
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 7.01 7.01 10.24 10.24
b) Investment
i) Deemed Equity Contribution Towards Letter of F Level-1 0.84 0.84 - -
Comfort
ii) In mutual funds and others B Level-1 636.72 636.72 127.22 127.22
2. Financial assets designated at fair value through other
comprehensive income
Investment In Equity shares C Level-1 6.64 6.64 8.84 8.84
3. Financial assets designated at amortised cost
a) Other Bank Balances* 5.80 5.80 103.17 103.17
b) Cash & Cash Equivalents* 9.24 9.24 18.85 18.85
c) Trade receivables* 77.17 77.17 109.15 109.15
d) Other receivables* 114.17 114.17 53.42 53.42
e) Other financial assets 45.61 45.61 21.42 21.42
4. Investment in subsidiary companies and joint venture D 268.45 268.45 28.01 28.01
1,171.65 1,171.65 480.32 480.32
Fair value
hierarchy
1. Financial liability designated at fair value through
Profit and Loss
2. Financial liability designated at amortised cost
a) Borrowings E Level-1 1,092.81 1,092.81 1,047.52 1,047.52
b) Trade payables* 266.48 266.48 254.86 254.86
c) Other financial liability* 400.34 400.34 383.91 383.91
d) Financial Obligation Towards Letter of Comfort F Level-3 0.84 0.84 - -
1,763.95 1,763.95 1,688.94 1,688.94
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.
132 | JK Paper Ltd.

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).
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 analyzes foreign currency risk from financial instruments as of March 31, 2019: H in Crore (10 Million)
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) - - - - -
Financial liabilities
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/-
The following table analyzes foreign currency risk from financial instruments as of March 31, 2018:
Particulars USD Euro GBP SEK Total
Financial Assets
Cash and cash equivalents - - - - -
Trade receivables 18.58 0.04 0.24 - 18.86
Financial liabilities
Trade payables (46.44) (0.58) (0.00)* - (47.03)
Other financials liabilities - - - - -
Borrowings (163.78) (256.19) - - (419.98)
Net assets / (liabilities) (192.04) (257.49) 0.24 - (449.29)
*H42,229/-
The following significant exchange rates have been applied during the year. (Amount in H)
INR Year-end spot rate
March 31, 2019 March 31, 2018
USD 69.17 65.04
EUR 77.70 80.62
GBP 90.48 92.28
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.
134 | JK Paper Ltd.

0.25% Increase and decrease in foreign exchanges rates will have the following impact on profit before tax:
Particulars 2018-19 2017-18
0.25% Increase 0.25% decrease 0.25% Increase 0.25% decrease
USD Sensitivity 0.01 (0.01) 0.04 (0.04)
Euro Sensitivity (CY H25,925/-, PY H29,877/-) (0.00) 0.00 (0.00) 0.00
GBP Sensitivity (CY H3,694/-, PY H5,875/-) 0.00 (0.00) 0.00 (0.00)
SEK Sensitivity (CY H1,588/-) (0.00) 0.00 - -
Increases/ (decrease) in profit or loss 0.01 (0.01) 0.04 (0.04)
Summary of Exchange difference accounted in Statement of Profit and loss:

Particulars Year Ended Year Ended
March 31, 2019 March 31, 2018
Currency fluctuations
Net foreign exchange (gain)/ losses shown as operating expenses 1.77 3.06
Net foreign exchange (gain)/ losses shown as Finance Cost 0.26 0.34
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 3.65 (3.32)
Net foreign exchange (gain)/ losses shown as Other Income - -
TOTAL 5.68 0.08
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
Particulars As at March 31, 2019 As at March 31, 2018
(H in Crores) % of Total (H in Crores) % of Total
Fixed Rate Borrowings 526.94 39.03% 660.95 50.47%
Variable Rate Borrowings 823.07 60.97% 648.58 49.53%
Total Borrowings 1,350.01 100.00% 1,309.53 100.00%
Sensitivity on variable rate borrowings
Particulars Impact on Statement of Profit & Loss Impact on Equity
As at March 31, 2019 As at March 31, 2018 As at March 31, 2019 As at March 31, 2018
Interest Rate Increase by 0.25% (1.69) (1.91) (1.69) (1.91)
Interest Rate decrease by 0.25% 1.69 1.91 1.69 1.91
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 H77.17 Crore and H109.15 Crore as of March 31, 2019 and March 31,
2018, 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.
(In %)
Particulars March 31, Year ended
2019 2018
Revenue from top customer 4.10% 4.23%
Revenue from top five customers 14.96% 16.41%
Credit risk exposure
The allowance for lifetime expected credit loss on customer balances for the year ended March 31, 2019 was H0.35 Crore.

Particulars March 31, Year ended
2019 2018
Balance at the beginning 0.20 15.43
Impairment loss reversed - (15.42)
Additional provision created during the year 0.15 0.19
Balance at the end 0.35 0.20
The deposits with banks comprises mostly the liquid investment of the Company and are generally not exposed to credit risk
Ageing Analysis of Trade Receivables

Not Due and Up to Six Six to Twelve Above 12 Not Due and Up to Six Six to Twelve Above 12
Not Impaired Months Months Months Not Impaired Months Months Months
Unsecured 53.29 23.88 - 0.35 86.33 20.92 1.19 0.91
Provision for Doubtful Receivables - - - 0.35 - - - 0.20
Net Balance 53.29 23.88 - - 86.33 20.92 1.19 0.71
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.
136 | JK Paper Ltd.

The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2019:
Particulars Carrying Amount Less than 1 year 1-5 years More Than 5 Year Total
Borrowings - Current 18.04 18.04 - - 18.04
Borrowings - Non-Current 1,331.97 257.20 857.86 216.91 1,331.97
Trade payables 266.48 266.48 - - 266.48
Other financial liabilities - Current 345.06 345.06 - - 345.06
Other financial liabilities - Non-Current
Trade Deposits 56.11 - - 56.11 56.11
Interest accrued but not due on loans 0.73 - 0.73 - 0.73
Derivative Financial Instruments 1.92 - 1.92 - 1.92
Financial Obligation Towards Letter of Comfort 0.84 - - 0.84 0.84
Trade payables 254.86 254.86 - - 254.86
Trade Deposits 48.25 - - 48.25 48.25
Derivative Financial Instruments 2.24 - 2.20 0.04 2.24
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.
Particulars As at As at
March 31 2019 March 31 2018
Borrowings 1,350.01 1,309.53
Less: cash and cash equivalents including bank balance 15.04 122.02
Less: Current Investments 636.72 127.22
Net debt 698.25 1,060.29
Equity 2,041.21 1,645.59
Capital and Net debt 2,739.46 2,705.88
Gearing Ratio 25% 39%

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 hedgeing at the Balance Sheet Date
Sr. Foreign Currency As at March 31, 2019 As at March 31, 2018
No. FC in Mn H in Cr. FC in Mn H in Cr.
1 US Dollar 20.76 143.61 30.70 199.67
2 Euro 13.55 105.29 17.77 143.27
Nominal amounts of Complete Currency Swaps (CCS) for hedging entered into by the Company and outstanding at end of the year is H32.94
Crore (Previous year H41.77 Crore)
Foreign Currency Exposure not hedged as at the Balance Sheet Date

No. FC in Mn H in Cr. FC in Mn H in Cr.
1 US Dollar * 0.44 3.04 (1.17) (7.63)
2 Euro 6.18 48.02 8.99 72.45
3 GBP * (0.02) (0.15) (0.03) (0.24)
4 SEK 0.09 0.06 - -
*Net of Receivables USD 1.15 Million – H7.98 Crore (Previous year USD 2.86 Million – H18.58 Crore), Euro Nil – HNil (Previous year Euro 0.004
Million – H0.04 Crore) and GBP 0.02 Million – H0.15 Crore (Previous year GBP 0.03 Million - H0.24 Crore).
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 :

No. Loan FC in Mn MTM H In Cr. Loan FC in Mn MTM H In Cr.
(Gain)/Loss (Gain)/Loss
1 US Dollar 9.56 (0.01) 11.61 0.68
2 Euro 19.60 0.68 24.20 (0.38)
The Company is fully covered on interest rate fluctuation on foreign currency borrowing through interest rate swaps (IRS) and complete
currency swaps (CCS).
138 | JK Paper Ltd.

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 AS110, 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

Dividend proposed to be distributed H in Crore (10 Million)
March 31, 2019 March 31, 2018
Dividend proposed for Equity Shareholders @ H3.50 per share (PY H2.50 per share) 62.39 44.56
Corporate Dividend Tax 12.82 9.16
NOTE 57. INCOME TAX

a) Amount recognised in Statement of Profit and Loss
Current Income Tax
Current year 144.99 74.85
Adjustment in respect of current income tax of earlier years - (1.82)
MAT Credit Entitlement
Current year (102.53) (74.85)
Reversal of MAT credit entitlement of earlier years 3.29 5.44
Total 45.75 3.62
Deferred Tax 195.40 111.43
Income tax expense reported in the statement of profit and loss 241.15 115.05

b) Reconciliation of Effective Tax Rate
Profit before tax 678.35 375.18
At applicable Statutory Income Tax Rate CY @ 34.944% PY @ 31.20% 237.04 117.06
Tax Impact on:-
Benefit of 80IA (38.63) 0.80
Donation 0.44 2.45
In House R&D Expenditure (0.84) (0.88)
CSR Expenditure 1.17 0.64
Others 41.97 (5.02)
Reported Income Tax Expense 241.15 115.05
Effective Tax Rate 35.55% 30.66%
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.
140 | JK Paper Ltd.

Cash Flow Statement for the year ended March 31, 2019 H in Crore (10 Million)
2018-19 2017-18
A. CASH FLOW FROM OPERATING ACTIVITIES :
Net Profit before Tax 678.35 375.19
Adjustments for :
Depreciation and amortization 125.30 120.89
Defined Benefit Plans charged to OCI (1.72) (1.86)
Income from Investments (15.28) (15.45)
(Profit)/ Loss on Sale of Assets (Net) 0.37 0.17
Dividend Income (0.01) (0.01)
Finance Cost 122.40 143.02
Interest Income (40.48) (10.31)
Foreign Exchange Fluctuation 1.77 3.06
Assets Written off 0.74 0.10
Bad Debts 0.02 0.84
Provision for earlier years no longer required 0.61 -
Operating Profit before Working Capital Changes 872.22 615.83
Adjustments for Working Capital Changes:
Trade and Other Receivables (43.84) (23.50)
Inventories 71.76 (11.29)
Trade and Other Payables 92.39 43.53
Cash generated from Operations 992.53 624.57
Taxes paid (139.84) (69.13)
Net Cash from Operating Activities 852.69 555.44
B. CASH FLOW FROM INVESTING ACTIVITIES :
Purchase of Property, Plant & Equipment (120.56) (86.65)
Sale of Property, Plant & Equipment 3.46 1.18
Sale/(Purchase) of Investments (Net) (735.50) 122.39
Interest Received 15.80 9.57
Net Cash from Investing Activities (836.79) 46.50
C. CASH FLOW FROM FINANCING ACTIVITIES :
Proceeds of Long-term Borrowings 401.03 177.51
Repayment of Long-term Borrowings (284.09) (460.16)
Proceeds/(Repayment) from Short-term Borrowings (Net) (57.99) (51.72)
Interest and Financial Charges (128.18) (143.46)
Dividend (including Dividend Tax) (53.65) (29.49)
Net cash from Financing Activities (122.88) (507.32)
D. Increase/(Decrease) in Cash and Cash Equivalents - Cash & Bank Balance (106.98) 94.62
E. Cash and Cash Equivalents as at the beginning of the year - Cash & Bank Balances 122.02 27.40
(Note No. 11 & 12)
F. Cash and Cash Equivalents as at the close of the year - Cash & Bank Balances (Note 15.04 122.02
No. 11 & 12)
Notes:
(a) Total Liabilities from Financing Activities Long Term Short Term Long Term Short Term
Opening 1,233.50 76.03 1,569.95 127.75
Cash Flow Changes
Inflow/(Repayments) 116.94 (57.99) (282.65) (51.82)
Non-Cash Flow Changes
Foreing Exchange (4.33) - 32.41 0.10
FCCB Conversion (15.46) - (94.70) -
Other 1.32 - 8.49 -
Closing 1,331.97 18.04 1,233.50 76.03
(b) Previous year’s figures have been re-grouped / re-arranged wherever necessary.
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

Sl. Particulars The Sirpur Jaykaypur Songadh JK Enviro-Tech JK Paper
No. Paper Mills Infrastructure Infrastructure Limited. International
Limited. & Housing & Housing (Singapore) Pte.
Limited. Limited. Limited.
1 Financial Year ended on March 31, 2019 March 31, 2019 March 31, 2019 March 31, 2019 March 31, 2019
2 Reporting Currency Indian Rupees Indian Rupees Indian Rupees Indian Rupees US$
3 Closing Exchange Rate - - - - 69.1713
4 Share Capital 182.00 4.95 4.95 11.65 22.06
5 Reserve & Surplus/ (Accumulated Losses) (6.96) (3.59) 1.48 27.59 0.46
6 Total Assets 420.36 40.93 15.47 232.19 22.55
7 Total Liabilities 420.36 40.93 15.47 232.19 22.55
8 Investments - - - 139.52 22.48
9 Total Turnover 2.00 3.77 1.83 1.08 0.00
10 Profit/ (Loss) before tax (11.69) 0.26 0.16 (5.98) (0.07)
11 Provision for Income Tax - 0.08 0.04 (1.10) 0.00
12 Profit/ (Loss) after tax (11.69) 0.18 0.12 (4.88) (0.07)
13 Proposed Dividend - - - -
14 % of Shareholding 71.26% 100% 100% 92.85% 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
Sl. Habras MZZ Plantation
Name of Joint Venture Company
No. Myanmar Company Limited
1 Financial Year/Period ended on March 31, 2019
2 % of Shareholding 50%
3 Investment in Joint Venture 22.48
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 22.48
7 Loss for the year NIL
i) Considered in consolidation NIL
i) Not Considered in consolidation NIL

B.H. SINGHANIA Chairman
H.P. SINGHANIA Vice Chairman & Managing Director
A.S. MEHTA President & Director
V. KUMARASWAMY
ARUN BHARAT RAM SHAILENDRA SWARUP
S.C. GUPTA DHIRENDRA KUMAR UDAYAN BOSE
Vice President & M.H. DALMIA VINITA SINGHANIA Directors
Company Secretary R.V. KANORIA S.K. ROONGTA
142 | JK Paper Ltd.

Independent Auditor’s Report
To
The Members of
JK Paper Limited
Report on the Audit of the Consolidated Financial Statements
OPINION report. We are independent of the Group in accordance with the

We have audited the accompanying consolidated financial Code of Ethics issued by the Institute of Chartered Accountants of
statements of JK Paper Limited (“the Company”) and its subsidiaries India (ICAI) together with the independence requirements that are
(the Company and its subsidiaries together referred to as “the relevant to our audit of the consolidated financial statements under
Group”), which comprise the Consolidated Balance Sheet as at March the provisions of the Act and the Rules made thereunder, and we
31, 2019, the Consolidated Statement of Profit and Loss (including have fulfilled our other ethical responsibilities in accordance with
Other Comprehensive Income), the Consolidated Statement of these requirements and the ICAI’s Code of Ethics. We believe that
Changes in Equity and the Consolidated Statement of Cash Flows the audit evidence we have obtained is sufficient and appropriate
for the year ended on that date, and a summary of the significant to provide a basis for our audit opinion on the consolidated financial
accounting policies and other explanatory information (hereinafter statements.
referred to as “the consolidated financial statements”).
EMPHASIS OF MATTER
In our opinion and to the best of our information and according As per the order of the National Company Law Tribunal (“NCLT)
to the explanations given to us, the aforesaid consolidated financial ,Hyderabad Bench , in respect of a subsidiary company which was
statements give the information required by the Companies Act, acquired during the year , certain accounting treatments have been
2013 (the “Act”) in the manner so required and give a true and fair carried out to capital reserve , credited (net) (under the head “ Other
view in conformity with Indian Accounting Standards prescribed Equity”), which is considered to override the relevant provisions
under section 133 of the Act read with the Companies (Indian of Ind AS -109 “Financial Instruments“ (refer Note No. 47 of the
Accounting Standards) Rules, 2015, as amended (“Ind AS”) and Consolidated Financial Statements).
other accounting principles generally accepted in India, of the
Our opinion is not modified in respect of this matter.
consolidated state of affairs of the Group as at March 31, 2019, the
consolidated profit, consolidated total comprehensive income, KEY AUDIT MATTERS
consolidated changes in equity and its consolidated cash flows for Key audit matters are those matters that, in our professional
the year ended on that date. judgment, were of most significance in our audit of the consolidated
financial statements of the current period. These matters were
BASIS FOR OPINION
addressed in the context of our audit of the consolidated financial
We conducted our audit of the consolidated financial statements in
statements as a whole, and in forming our opinion thereon, and
accordance with the Standards on Auditing (SAs) specified under
we do not provide a separate opinion on these matters. We have
section 143(10) of the Act (SAs). Our responsibilities under those
determined the matters described below to be the key audit
Standards are further described in the Auditor’s Responsibilities for
matters to be communicated in our report.
the Audit of the Consolidated Financial Statements section of our

1. Revenue Recognition Our response to the risk
Recognition of Revenue , measurement , presentation and disclosure We performed the following audit procedures over this risk area:
as per Ind AS-115 “Revenue from Contracts with Customers”. • On a sample basis we performed testing to verify physical
(Refer Note No.1 of Accounting Policy) deliveries of product in the year to ascertain transfer of control.
There is possibility for material misstatement within revenue, • We performed revenue cut-off testing, by reference to shipment
particularly in relation to revenue being recorded in the different / bill dates of sales recorded either side of the financial year end
period, due to cut off errors or management bias. had legally completed; and
• Selected a sample of sales contracts and read, analysed and

identified the distinct performance obligations in these
contracts.
• We performed walkthroughs to understand the key processes

and identify key controls related Ind AS 115 “Revenue from
Contracts with Customers.
2. Acquisition of The Sirpur Paper Mills Ltd. and recognition of Our audit procedures includes:
Goodwill
• We read and understood the legal agreements (NCLT Order )
The group acquired ‘ The Sirpur Paper Mills Ltd. (SPML)’ during the entered into by the Group in relation to the acquisitions and
year for a total consideration of H371.04 crores and recognised considered the basis of their inclusion in the consolidated
goodwill of H9.81 cores on date of acquisition. financial statements.
(Refer note no 47 of the Consolidated Financial Statements) • We tested the consideration and the identification and
valuation of the identified net tangible and intangible assets
The Group is required to identify and assess the fair value of the net
acquired.
assets acquired and the valuation of the goodwill attributable on
initial date of recognition. • We obtained the purchase price allocation performed by
management’s valuation experts and considered their
methodology and assumptions using our own valuation
experts.
• We understood management’s opening balance sheet

adjustments as on date of acquisition and obtained supporting
evidence to corroborate these.
144 | JK Paper Ltd.

OTHER MATTERS Our opinion on the consolidated financial statements does not
A) We did not audit the financial statements of four subsidiaries cover the other information and we do not express any form of
whose financial statements reflect total assets of H31,114.11 assurance conclusion thereon.
lacs as at 31st March 2019, total revenues of H669.15 lacs
In connection with our audit of the consolidated financial
and total profit /(Loss) after tax of H (465.24) lacs for the year
statements, our responsibility is to read the other information and,
ended on that date, as considered in the consolidated financial
in doing so, consider whether the other information is materially
statements. These financial statements have been audited by
inconsistent with the consolidated financial statements or our
other auditors whose reports have been furnished to us by the
knowledge obtained during the course of our audit or otherwise
Management and our opinion on the consolidated financial
appears to be materially misstated.
statements, in so far as it relates to the amounts and disclosures
included in respect of these subsidiaries and our report in If, based on the work we have performed, we conclude that there is
terms of sub-sections (3) of Section 143 of the Act, insofar as it a material misstatement of this other information, we are required
relates to the aforesaid subsidiaries based solely on the reports to report that fact. We have nothing to report in this regard.
of the other auditors.
MANAGEMENT’S RESPONSIBILITY FOR THE CONSOLIDATED
Our opinion is not modified in respect of this matter. FINANCIAL STATEMENTS
The Company’s Board of Directors is responsible for the matters
B) The Consolidated financial statements include the Company’s
stated in section 134(5) of the Act with respect to preparation
share of net profit / loss of H Nil for the year ended 31st March
of these consolidated financial statements that give a true and
2019 as considered in the consolidated financial statements,
fair view of the consolidated financial position, consolidated
in respect of one jointly controlled entity, whose financial
financial performance, consolidated total comprehensive income,
statements have been audited by other auditor whose reports
consolidated changes in equity and consolidated cash flows of
have been furnished to us by the management and our
the Group in accordance with the Ind AS and other accounting
opinion on the financial statements , to the extent they have
principles generally accepted in India . The respective Board of
been derived from such financial statements is based solely on
Directors of the companies included in the Group are responsible
the reports of the other auditor.
for maintenance of the adequate accounting records in accordance
Our opinion is not modified in respect of this matter. with the provisions of the Act for safeguarding the assets of the Group
C) The financial statements (Ind AS financial statements) of and for preventing and detecting frauds and other irregularities;
a subsidiary Company as on 1st April 2018 considered in selection and application of appropriate accounting policies;
consolidated financial statements w.e.f. 1st August 2018, are making judgments and estimates that are reasonable and prudent;
based on the previously issued statutory financial statements and design, implementation and maintenance of adequate internal
prepared in accordance with the Companies (Accounting financial controls, that were operating effectively for ensuring the
Standards) Rules, 2006 audited by their predecessor auditor i.e. accuracy and completeness of the accounting records, relevant
M/s B.N. Associates, whose audit report dated 13th Jan 2019 to the preparation and presentation of the consolidated financial
expressed qualified opinion, as adjusted for the differences statements that give a true and fair view and are free from material
in the accounting principles adopted by the Company on misstatement, whether due to fraud or error.
transition to the Ind AS, which have not been audited by us. In preparing the consolidated financial statements, the respective
Our opinion is not modified in respect of this matter. Board of Directors of the companies included in the Group are
responsible for assessing the Group’s ability to continue as a
INFORMATION OTHER THAN THE CONSOLIDATED FINANCIAL going concern, disclosing, as applicable, matters related to going
STATEMENTS AND AUDITOR’S REPORT THEREON concern and using the going concern basis of accounting unless
The Company’s Board of Directors is responsible for the preparation management either intends to liquidate the Group or to cease
of the other information. The other information comprises the operations, or has no realistic alternative but to do so.
information included in the Management Discussion and Analysis,
The respective Board of Directors of the companies included in the
Board’s Report including Annexures to Board’s Report, Business
Group are also responsible for overseeing the financial reporting
Responsibility Report, Corporate Governance and Shareholder’s
process of the Group.
Information, but does not include the consolidated financial
statements and our auditor’s report thereon.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE auditor’s report. However, future events or conditions may
CONSOLIDATED FINANCIAL STATEMENTS cause the Group to cease to continue as a going concern.
Our objectives are to obtain reasonable assurance about whether
• Evaluate the overall presentation, structure and content of the
the consolidated financial statements as a whole are free from
consolidated financial statements, including the disclosures,
material misstatement, whether due to fraud or error, and to issue
and whether the consolidated financial statements represent
an auditor’s report that includes our opinion. Reasonable assurance
the underlying transactions and events in a manner that
is a high level of assurance, but is not a guarantee that an audit
achieves fair presentation.
conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or • Obtain sufficient appropriate audit evidence regarding the
error and are considered material if, individually or in the aggregate, financial information of the entities or business activities within
they could reasonably be expected to influence the economic the Group to express an opinion on the consolidated financial
decisions of users taken on the basis of these consolidated financial statements. We are responsible for the direction, supervision
statements. and performance of the audit of the financial statements of
such entities included in the consolidated financial statements.
As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional scepticism throughout the Materiality is the magnitude of misstatements in the consolidated
audit. We also: financial statements that, individually or in aggregate, makes
it probable that the economic decisions of a reasonably
• Identify and assess the risks of material misstatement of the
knowledgeable user of the financial statements may be influenced.
consolidated financial statements, whether due to fraud or
We consider quantitative materiality and qualitative factors in
error, design and perform audit procedures responsive to
(i) planning the scope of our audit work and in evaluating the
those risks, and obtain audit evidence that is sufficient and
results of our work; and (ii) to evaluate the effect of any identified
appropriate to provide a basis for our opinion. The risk of not
misstatements in the financial statements.
detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve We communicate with those charged with governance regarding,
collusion, forgery, intentional omissions, misrepresentations, or among other matters, the planned scope and timing of the audit
the override of internal control. and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
• Obtain an understanding of internal financial controls relevant
to the audit in order to design audit procedures that are We also provide those charged with governance with a statement
appropriate in the circumstances. Under section 143(3)(i) of that we have complied with relevant ethical requirements regarding
the Act, we are also responsible for expressing our opinion independence, and to communicate with them all relationships
on whether the Company and its subsidiary companies and other matters that may reasonably be thought to bear on our
which are companies incorporated in India, has adequate independence, and where applicable, related safeguards.
internal financial controls system in place and the operating From the matters communicated with those charged with
effectiveness of such controls. governance, we determine those matters that were of most
• Evaluate the appropriateness of accounting policies used significance in the audit of the consolidated financial statements
and the reasonableness of accounting estimates and related of the current period and are therefore the key audit matters. We
disclosures made by management. describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely
• Conclude on the appropriateness of management’s use of the
rare circumstances, we determine that a matter should not be
going concern basis of accounting and, based on the audit
communicated in our report because the adverse consequences
evidence obtained, whether a material uncertainty exists
of doing so would reasonably be expected to outweigh the public
related to events or conditions that may cast significant doubt
interest benefits of such communication.
on the ability of the Group to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
draw attention in our auditor’s report to the related disclosures 1. As required by Section 143(3) of the Act, based on our audit we
in the consolidated financial statements or, if such disclosures report that:
are inadequate, to modify our opinion. Our conclusions are
a) We have sought and obtained all the information and
based on the audit evidence obtained up to the date of our
explanations which to the best of our knowledge and
146 | JK Paper Ltd.

belief were necessary for the purposes of our audit of the Companies (Audit and Auditors) Rules, 2014, as amended
aforesaid consolidated financial statements. in our opinion and to the best of our information and
according to the explanations given to us:
b) In our opinion, proper books of account as required by
law relating to preparation of the aforesaid consolidated I. The consolidated financial statements disclose
financial statements have been kept so far as it appears impact of pending litigations on the consolidated
from our examination of those books. financial position of the Group.
c) The Consolidated Balance Sheet, the Consolidated II. Provision has been made in the consolidated financial
Statement of Profit and Loss including (including Other statements, as required under the applicable law or
Comprehensive Income), Consolidated Statement of accounting standards, for material foreseeable losses,
Changes in Equity and the Consolidated Statement of if any, on long term contracts including derivative
Cash Flows dealt with by this Report are in agreement with contracts.
the relevant books of account maintained for the purpose
III. There has been no delay in transferring amounts,
of preparation of the consolidated financial statements.
required to be transferred, to the Investor Education
d) In our opinion, the aforesaid consolidated financial and Protection Fund by the Company and its
statements comply with the Ind AS specified under subsidiary companies incorporated in India.
Section 133 of the Act, read with Rule 7 of the Companies
h) With respect to the matter to be included in the Auditors’
report under Section 197(16) :
e) On the basis of the written representations received from
In our opinion and according to the information and
the directors of the Company as on March 31, 2019 taken
explanation given to us, the remuneration paid
on record by the Board of Directors of the Company and
during the current year by the Holding Company
its subsidiaries incorporated in India and the reports of the
and its subsidiaries which are incorporated in India
statutory auditors of its subsidiary companies incorporated
is in accordance with the provisions of Section 197
in India, none of the directors of the Group companies
of the Act. The remuneration paid to any director by
incorporated in India is disqualified as on March 31, 2019
the Holding Company and its subsidiaries which are
from being appointed as a director in terms of Section 164
incorporated in India, is not in excess of the limit laid
(2) of the Act.
down under Section 197 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
For LODHA & CO.
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.
(N. K. Lodha)
g) With respect to the other matters to be included in Place: New Delhi Partner
the Auditor’s Report in accordance with Rule 11 of the Date: 8th May, 2019 Membership No. 85155

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 Our audit involves performing procedures to obtain audit evidence
statements of the Company as of and for the year ended 31st March about the adequacy of the internal financial controls system over
2019, we have audited the internal financial controls over financial financial reporting and their operating effectiveness. Our audit
reporting of JK Paper Limited (‘the Holding Company’) and its of internal financial controls over financial reporting included
subsidiary companies, which are companies incorporated in India, obtaining an understanding of internal financial controls over
as of that date. financial reporting, assessing the risk that a material weakness exists,
and testing and evaluating the design and operating effectiveness of
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL internal control based on the assessed risk. The procedures selected
CONTROLS depend on the auditor’s judgment, including the assessment of the
The respective Board of Directors of the Holding Company and its risks of material misstatement of the financial statements, whether
subsidiary companies which are companies incorporated in India, due to fraud or error.
are responsible for establishing and maintaining internal financial
controls based on the internal control over financial reporting We believe that the audit evidence we have obtained and the audit
criteria established by the Holding Company considering the evidence obtained by the other auditors in terms of their reports
essential components of internal control stated in the Guidance referred to in the Other Matters paragraph below, is sufficient and
Note on Audit of Internal Financial Controls Over Financial appropriate to provide a basis for our audit opinion on the Company’s
Reporting issued by the Institute of Chartered Accountants of India internal financial controls system over financial reporting.
(‘ICAI’).These responsibilities include the design, implementation
MEANING OF INTERNAL FINANCIAL CONTROLS OVER
and maintenance of adequate internal financial controls that were
FINANCIAL REPORTING
operating effectively for ensuring the orderly and efficient conduct
A company’s internal financial control over financial reporting is a
of its business, including adherence to the respective company’s
process designed to provide reasonable assurance regarding the
policies, the safeguarding of its assets, the prevention and detection
reliability of financial reporting and the preparation of consolidated
of frauds and errors, the accuracy and completeness of the
financial statements for external purposes in accordance with
accounting records, and the timely preparation of reliable financial
generally accepted accounting principles. A company’s internal
information, as required under the Companies Act, 2013 (‘the Act’).
financial control over financial reporting includes those policies and
AUDITORS’ RESPONSIBILITY procedures that 1)pertain to the maintenance of records that, in
Our responsibility is to express an opinion on the internal financial reasonable detail, accurately and fairly reflect the transactions and
controls over financial reporting of the Holding company and its dispositions of the assets of the company; 2) provide reasonable
subsidiary companies, which are companies incorporated in India, assurance that transactions are recorded as necessary to permit
based on our audit. preparation of financial statements in accordance generally accepted
accounting principles, and that receipts and expenditures of the
We conducted our audit in accordance with the Guidance Note on company are being made only in accordance with authorizations of
Audit of Internal Financial Controls Over Financial Reporting (the management and directors of the company; 3) provide reasonable
“Guidance Note”) and the Standards on Auditing, issued by ICAI assurance regarding prevention or timely detection of unauthorized
and deemed to be prescribed under section 143(10) of the Act, to acquisition, use, or disposition of the company’s assets that could
the extent applicable to an audit of internal financial controls, both have a material effect on the financial statements.
applicable to an audit of Internal Financial Controls and, both issued
by the Institute of Chartered Accountants of India. Those Standards INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS
and the Guidance Note require that we comply with ethical OVER FINANCIAL REPORTING
requirements and plan and perform the audit to obtain reasonable Because of the inherent limitations of internal financial controls over
assurance about whether adequate internal financial controls over financial reporting, including the possibility of collusion or improper
financial reporting was established and maintained and if such management override of controls, material misstatements due to
controls operated effectively in all material respects. error or fraud may occur and not be detected. Also, projections
148 | JK Paper Ltd.

of any evaluation of the internal financial controls over financial OTHER MATTERS
reporting to future periods are subject to the risk that the internal i) Our aforesaid reports under Section 143(3)(i) of the Act on the
financial control over financial reporting may become inadequate adequacy and operating effectiveness of the internal financial
because of changes in conditions, or that the degree of compliance controls over financial reporting insofar as it relates to four
with the policies or procedures may deteriorate. subsidiaries, which are companies incorporated in India, is
based on the corresponding reports of the auditors of such
OPINION companies.
In our opinion, the Group and its Subsidiary companies , which are
incorporated in India, have, maintained, in all material respects, an
adequate internal financial controls system over financial reporting
and such internal financial controls over financial reporting were For LODHA & CO.
operating effectively as at 31st March 2019, based on the internal Chartered Accountants
control over financial reporting criteria established by the Company Firm‘s Registration No.301051E
considering the essential components of internal control stated
(N. K. Lodha)
in the Guidance Note on Audit of Internal Financial Controls Over
Place: New Delhi Partner
Financial Reporting issued by the Institute of Chartered Accountants
Date: 8th May, 2019 Membership No. 85155
of India.

Consolidated Balance Sheet as at March 31, 2019
Particulars Note March 31, 2019 March 31, 2018
ASSETS
Non-Current Assets
Property,Plant and Equipment 2 2,643.29 2,603.55
Capital Work-in-Progress 313.76 33.86
Investment Property 2A 52.93 50.37
Goodwill 9.81 -
Other Intangible Assets 3 0.27 0.21
Intangible Assets Under Development 15.10 2.84
Financial Assets
Loans 5 17.47 17.92
Other Non-Current Assets 7 21.72 6.12
3,121.72 2,756.10
Current Assets
Inventories 8 346.27 394.23
Financial Assets
Trade Receivables 10 73.48 109.15
Cash and Cash Equivalents 11 15.24 18.95
Bank Balances other than above 12 11.50 104.42
Loans 13 150.80 0.80
Other Current Assets 15 126.36 89.93
1,400.38 852.35
Total Assets 4,522.10 3,608.45
EQUITY AND LIABILITIES
EQUITY
Equity Share Capital 16 178.24 175.50
Other Equity 1,859.86 1,467.59
2,038.10 1,643.09
Non-controlling interest 50.88 -
LIABILITIES
Non-Current Liabilities
Borrowings 17 1,287.34 971.49
Deferred Tax Liabilities (Net) 20 238.83 143.44
1,643.57 1,173.18
Current Liabilities
Borrowings 21 18.04 76.03
Trade Payables 22
Micro & Small Enterprises 3.05 0.55
Others 271.19 254.71
Other Current Liabilities 24 175.74 119.49
Current Tax Liabilities 26 6.63 1.20
840.43 792.18
Total Equity and Liabilities 4,522.10 3,608.45
The accompanying notes referred to above form an integral part of the Consolidated Financial Statements
150 | JK Paper Ltd.

Consolidated Statement of Profit & Loss for the year ended March 31, 2019
Particulars Note 2018-19 2017-18
Revenue :
Sales 3,469.19 3,069.68
Less : Discounts 235.55 243.43
Net Sales 3,233.64 2,826.25
Other Operating Revenue 27 23.07 51.24
Revenue from Operations 3,256.71 2,877.49
Other Income 28 50.00 22.51
Total Revenue 3,306.71 2,900.00
EXPENSES
Cost of Materials Consumed 29 1,278.11 1,254.37
Purchases of Stock-in-Trade 301.53 284.48
Changes in Inventories of Finished Goods, Stock-in-Trade and Work-in-Progress 30 47.85 (10.36)
Employee Benefits Expense 31 262.73 231.88
Finance Costs 32 124.40 143.02
Depreciation and Amortisation Expenses 33 127.68 122.32
Excise Duty - 33.22
Other Expenses 34 498.37 465.65
Total Expenses 2,640.67 2,524.58
Profit Before Interest, Depreciation & Tax (EBITDA) 918.12 640.76
Profit/(Loss) Before Tax 666.04 375.42
Tax Expense
Current Tax (MAT) 145.12 73.12
Less : MAT Credit Entitlement (99.29) (69.42)
Provision / (Credit) for Deferred Tax 195.27 111.14
Profit for the period 424.94 260.58
Items that will not be reclassified to statement of Profit and Loss
(i) Re-measurement Gain/(Loss) on Defined Benefit Plans (1.27) (1.86)
(ii) Tax on (i) above 0.60 0.58
(iii) Equity Instruments through Other Comprehensive Income (2.20) 0.01
(iv) Tax on (iii) above - -
Total Other Comprehensive Income for the period 422.07 259.31
Net Profit attributable to:
a) Owners of the Company 427.28 260.58
b) Non controlling interest (2.34) -
Other comprehensive Income attributable to:
a) Owners of the Company (3.00) (1.27)
b) Non controlling interest 0.13 -
Total comprehensive Income attributable to:
a) Owners of the Company 424.28 259.31
b) Non controlling interest (2.21) -
Earnings per Equity Shares
1) Basic (in H) 23.88 15.32
2) Diluted (in H) 23.82 14.67

Consolidated Statement of Changes In Equity for the year ended March 31, 2019
A. EQUITY SHARE CAPITAL H in Crore (10 Million)
Changes in Equity Share Capital
March 31, 2018 March 31, 2019
during 2018-19
175.50 2.74 178.24
B. OTHER EQUITY
Other Comprehensive
Reserve and Surplus
Income (OCI)
Equity
Exchange Items that will not be
Component
of diferences on Reclassified to profit or loss
Particulars Capital Securities Debenture translating Total
Compound Retained Capital Revaluation General Re-
financial Redemption Premium Redemption the financial measurement Equity
Earnings Reserve Reserve Reserve Instruments
Instruments Reserve Reserve Reserve statements of the net
of a foreign through
defined
operations benefit plans OCI
March 31, 2018 - 569.63 29.92 3.00 513.21 - - 350.59 (0.19) (6.97) 8.40
1,467.59
Profit for the year 427.28 - - - - 427.28
FCCB Conversion - - - - 12.72 - - - - - - 12.72
Addition to Equity - - - - - - - - - - - -
Share Capital
Transfer from - (200.00) - - - - - 200.00 - - - -
Retained Earnings
Other Comprehensive - - - - - - - - - (0.80) (2.20) (3.00)
Income for the year
Transfer to debenture - (4.74) - - - 4.74 - - - - - -
redemption reserve
Dividend including - (53.72) - - - - - - - - - (53.72)
Corporate Dividend Tax
Issue of 0.1% 8.00 - - - - - - - - - - 8.00
Compulsory
Convertible Preference
Share
Adjustment for - - - - - - - - 0.99 - - 0.99
translation of Non
Integral Foreign
Operations
March 31, 2019 8.00 738.45 29.92 3.00 525.93 4.74 - 550.59 0.80 (7.77) 6.20 1,859.86
152 | JK Paper Ltd.

Notes to the Consolidated Financial Statements (Contd.)
Note 1. Significant Accounting Policies- Consolidated Accounts
I. Significant Accounting Policies for the year ended March 31, 2019
(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.
The impact of adoption of Ind AS 115 is immaterial on the financial statements in current year 2018-19 on the recognition and
measurement of revenue compared to erstwhile standard Ind AS 18.
Sale of goods
Revenue from the sale of goods is recognised, when all the significant risks and rewards of ownership of the goods have passed
to the buyer, 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.

Note 1. Significant Accounting Policies- Consolidated Accounts (Contd.)
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. 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 determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception
of the lease. The arrangement is, or contains, a lease if fulfillment of the arrangement is dependent on the use of a specific asset or
assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.
Finance Lease
Finance Lease that transfer substantially all of the risks and benefits incidental to ownership of the leased item, are capitalised at
the commencement of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease
payments. Lease payments are apportioned between finance charges and a reduction in the lease liability so as to achieve a
constant rate of interest on the remaining balance of the liability .Finance charges are recognised in finance costs in the statement
of profit and loss unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the
Company’s policy on borrowing costs.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will
obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset or
the lease term.
154 | JK Paper Ltd.

Operating Lease
Assets acquired on leases where a significant portion of the risks and rewards of ownership are retained by lessor are classified as
operating leases. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of
the leased asset.. Payments under operating lease are recorded in the Statement of Profit and Loss on a straight line basis over the
period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the
expected inflationary cost increases
(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

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

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
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.
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.
Subsequent Measurement
The measurement of financial liabilities depends on their classification, as described below :
156 | JK Paper Ltd.

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.
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 (INDAS)-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 yearend. 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
158 | JK Paper Ltd.

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 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.
(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.
160 | JK Paper Ltd.

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:
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.
(xx) Accounting Pronouncements Accounting standards, interpretations and amendments to existing standards that are effective
from 1st April, 2019
Ministry of Corporate Affairs (“MCA”), through Companies (Indian Accounting Standards) Amendment Rules, 2019 and Companies
(Indian Accounting Standards) Second Amendment Rules, has notified the following new and amendments to Ind ASs which are
effective from 1st April, 2019
1. W.e.f. 1st April 2019 Ind AS 116 Leases will replace existing leases standard, Ind AS 17 Leases. Lessee will follow Single Lease
Accounting. There is no classification as operating or finance Lease for lessee. Under Ind AS 116 Lessee will recognize assets and
liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Lessee would recognize
depreciation expense on the right of use asset and interest expense on the lease liability, classify the lease payments into
principal and interest component. Management is currently reviewing the operating lease contracts in place to determine the
impact of this standard.
2. The following standards or amendments made in below mentioned standards are not expected to have a material impact over
financial statements:
i) Ind AS 12 Income taxes (amendments relating to income tax consequences of dividend and uncertainty over income tax
treatments)
ii) Ind AS 109 – Prepayment Features with Negative Compensation
iii) Ind AS 19 – Plan Amendment, Curtailment or Settlement
iv) Ind AS 23 – Borrowing Costs
v) Ind AS 28 – Long-term Interests in Associates and Joint Ventures
vi) Ind AS 103 – Business Combinations and Ind AS 111 – Joint Arrangements
162 | JK Paper Ltd.

NOTE 2. PROPERTY, PLANT AND EQUIPMENT (PPE) H in Crore (10 Million)
April 01, Impact of Additions/ Sales/ March 31, April 01, Impact of For the On Sales/ March 31, March 31, March 31,
2018 SPML Adjustments Adjustments 2019 2018 SPML year Adjustments 2019 2019 2018
(c ) (c )
Land - Freehold (a) 275.33 67.45 - - 342.78 - - - - - 342.78 275.33
- Leasehold 82.76 - - - 82.76 4.41 - 1.47 - 5.88 76.88 78.35
Building 287.27 8.79 7.57 0.41 303.22 30.98 2.31 11.54 0.38 44.45 258.77 256.29
Plant & Equipment (b) 2,216.68 205.03 77.91 213.63 2,285.99 248.28 34.52 107.70 40.26 350.24 1,935.75 1,968.40
Furniture and Fixture 2.61 0.66 2.22 0.02 5.47 1.07 0.29 0.47 0.01 1.82 3.65 1.54
Office Equipment 8.91 0.01 3.53 2.42 10.03 4.08 -0.01 2.07 2.25 3.89 6.14 4.83
Vehicles & 19.04 0.02 4.84 2.97 20.93 2.17 0.01 2.70 1.47 3.41 17.52 16.87
Locomotive
Railway Siding 2.57 0.03 - - 2.60 0.63 0.02 0.15 - 0.80 1.80 1.94
Total 2,895.17 281.99 96.07 219.45 3,053.78 291.62 37.14 126.10 44.37 410.49 2,643.29 2,603.55
Previous year 2,809.52 - 89.77 4.12 2,895.17 174.44 - 119.84 2.66 291.62 2,603.55
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 Crore (Previous year H20.24 Crore) for which title is yet to be transferred in name of the Company.
b) During the year H5.83 Crore has been deducted in Plant & Equipment due to Foreign Exchange Fluctuation (Net) (Previous year H25.92 Crore was added).
c) Fair value as on 1st Aug 2018 on Acquisition of The Sirpur Paper Mills Limited as per resolution plan.
NOTE 2A. INVESTMENT PROPERTY

April 01, Additions/ Sales/ March 31, April 01, For the year Sales / March 31, March 31, March 31,
2018 Adjustments Adjustments 2019 2018 Adjustments 2019 2019 2018
Land - - - - - - - - - -
Freehold 6.99 - - 6.99 - - - - 6.99 6.99
Leasehold 12.01 - - 12.01 1.63 0.20 - 1.83 10.18 10.38
Buildings 38.88 3.91 - 42.79 5.88 1.15 - 7.03 35.76 33.00
Total 57.88 3.91 - 61.79 7.51 1.35 - 8.86 52.93 50.37
Previous year ended 31st March 57.64 0.24 - 57.88 6.26 1.25 - 7.51 50.37
2018
NOTE 3. OTHER INTANGIBLE ASSETS

April 01, Impact of Additions/ Sales/ March 31, April 01, Impact of For the On Sales/ March 31, March 31, March 31,
2018 SPML Adjustments Adjustments 2019 2018 SPML year Adjustments 2019 2019 2018
(c ) (c )
Computer Software 3.90 0.65 0.29 - 4.84 3.69 0.65 0.23 - 4.57 0.27 0.21
Total 3.90 0.65 0.29 - 4.84 3.69 0.65 0.23 - 4.57 0.27 0.21
Previous year 3.87 0.03 - 3.90 2.46 1.23 - 3.69 0.21

NOTE 4. NON- CURRENT INVESTMENTS H in Crore (10 Million)
Particulars Face Value March 31, 2019 March 31, 2018
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 6.64 1,91,000 8.84
Unquoted, Equity shares fully paid up
Investments Carried at Cost
Investment in Equity instrument of Joint Venture
Habras MZZ Plantation Myanmar Company Limited USD 1000 3,250 22.48 2,440 15.87
Investment in Others
JK Paper Mills Employees' Co-operative Stores Limited 10/- 250 0.00 250 0.00
(CY H2500/- , PY H2500/-)
29.12 24.71
Aggregate book value of unquoted investments 22.48 15.87
Aggregate market value of quoted investments 6.64 8.84
NOTE 5. NON CURRENT FINANCIAL ASSETS - LOANS

JK Paper Employees` Welfare Trust 17.47 17.92
TOTAL 17.47 17.92
NOTE 6. NON CURRENT FINANCIAL ASSETS - OTHERS

Deposits with Government Authorities 3.27 5.98
Derivative Financial Instruments (at fair value through Profit and Loss) 4.94 7.62
Others 10.04 2.92
TOTAL 18.25 16.52
NOTE 7. OTHER NON CURRENT ASSETS

Capital Advances 13.62 1.74
Deposits with Government Authorities and Others 8.10 4.38
TOTAL 21.72 6.12
164 | JK Paper Ltd.

NOTE 8. INVENTORIES H in Crore (10 Million)
Raw Materials # 183.79 211.99
Work-in-Progress @ 20.52 11.28
Stock in Trade 24.98 53.11
Stores & Spares # 76.94 50.82
TOTAL 346.27 394.23
# Includes Raw Materials in transit H2.07 Crore (As at 31-03-18 H3.68 Crore) and Stores & Spares in transit H1.49 Crore (As at 31-03-18 H0.80 Crore).
@ Includes Pulp in process H10.77 Crore (As at 31-03-18 H3.81 Crore) and Semi Finished Goods H9.35 Crore (As at 31-03-18 H7.29 Crore).
NOTE 9. CURRENT INVESTMENTS

Investments in Liquid Funds- at fair value through P&L
Investment in Non Convertible Debenture 499.48 -
Investment in Mutual Fund 121.76 127.22
Fixed Deposits with Non Schedule Bank 25.00 -
TOTAL 646.24 127.22
Aggregate book value of quoted investments 121.76 127.22
Aggregate book value of unqoted investments 524.48 NIL
NOTE 10. TRADE RECEIVABLES

Unsecured
Considered Good 73.48 109.15
Credit Impaired 0.35 0.20
73.83 109.35
Less: Allowance for credit impairment 0.35 0.20
TOTAL 73.48 109.15
NOTE 11. CASH AND CASH EQUIVALENTS

Current Accounts* 15.01 18.58
Cheques/Drafts on hand 0.09 0.08
Cash on Hand 0.14 0.29
TOTAL 15.24 18.95
* includes H3.56 Crore earmarked for specified purposes

NOTE 12. BANK BALANCE OTHER THAN CASH AND CASH EQUIVALENTS H in Crore (10 Million)
Other Bank Balances
Unclaimed Dividend Accounts 0.20 0.13
Fixed Deposit with Scheduled Banks # 11.30 104.29
TOTAL 11.50 104.42
# Includes H0.51 Crore (As at 31-03-18 H0.45 Crore) pledged with Government Authorities.
NOTE 13. CURRENT FINANCIAL ASSETS - LOANS

Loans to related parties
Bengal & Assam Co. Limited (Associate of ) 120.00 -
Deepti Electronics & Electro-optics Pvt. Limited 24.00 -
Global Strategic Technologies Limited 6.80 0.80
TOTAL 150.80 0.80
NOTE 14. CURRENT FINANCIAL ASSETS - OTHER

Advances to Employees 1.02 0.55
TOTAL 30.49 7.65
NOTE 15. OTHER CURRENT ASSETS

Advances to Suppliers 47.80 61.48
Indirect Tax Recoverable 66.65 14.50
Other Deposits 3.64 1.13
Prepaid Finance Charges 2.40 4.42
Doubtful Advances
Other 0.60 0.49
126.96 90.42
Less : Allowance for Doubtful Advances 0.60 0.49
TOTAL 126.36 89.93
166 | JK Paper Ltd.

NOTE 16. SHARE CAPITAL H in Crore (10 Million)
Authorised :
Equity Shares - 30,00,00,000 300.00 300.00
(30,00,00,000 Equity Share of H10 each as at 31-03-2018)
Redeemable Preference Shares - 2,00,00,000 200.00 200.00
(2,00,00,000 Share of H100 each as at 31-03-2018)
500.00 500.00
Issued, Subscribed and Paid-up :
Equity Shares - 17,82,43,585 (17,55,00,850 Equity Share of 178.24 175.50
H10 each fully paid up at 31-03-2018)
178.24 175.50
Notes :
(a) Reconciliation of Equity Share Capital (In numbers)
Shares outstanding at the beginning of the year 17,55,00,850 15,59,58,865
Add: Shares issued during the year 27,42,735 1,95,41,985
Shares outstanding at the end of the year 17,82,43,585 17,55,00,850
(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 -
Add: issued during the year (Nominal Value H100, H20 Paid up ) 40,00,000 -
Preference Shares outstanding at the end of the year 40,00,000 -
JK Enviro-Tech Limited, the Subsidiary, 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.
(d) List of Shareholders holding more than 5% of the Equity Share Capital of the Company (In numbers) :
Bengal & Assam Company Limited 3,64,18,299 3,64,18,299
BMF Investments Limited. 3,00,89,797 3,00,89,797
Florence Investech Limited 1,18,33,332 1,18,33,332
Trustees, JK Paper Employees Welfare Trust 98,28,655 98,28,655

NOTE 17. NON CURRENT FINANCIAL LIABILITIES - BORROWINGS H in Crore (10 Million)
SECURED
Term Loan
From Banks 1,000.57 1,000.66
From Financial Institutions 135.70 178.65
Non Convertible Debentures (NCDs) 331.57 -
UNSECURED
Foreign Currency Convertible Bonds (FCCB's) - 19.33
Loan from Related Party - 7.45
Liability Component of Redeemable Preference Share 48.04 -
1,544.54 1,233.50
Less : Current Maturities of Long Term Borrowings 257.20 262.01
TOTAL 1,287.34 971.49
A. Term Loans of H383.03 Crore (FIs – HNil, Banks H383.03 Crore) and NCD of H335 Crore are secured by means of first pari passu mortgage/
charge on the fixed assets of the Company. Out of the above Term Loan, H197.23 Crore (FIs - HNil, Banks H197.23 Crore) 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 H383.03 Crore are repayable in total 100 quarterly instalments from April 2019 to October 2024.
2 NCDs of H335.00 Crore is repayable in 15 Half yearly installment from September 2021 to July 2028.
B. Term Loans of H597.03 Crore (FIs – H136.00, Banks H461.03 Crore) 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 H228.40 Crore are repayable in total 49 equal Quarterly-instalments from June 2019 to September 2027.
2 Term Loans aggregating to H234.79 Crore are repayable in total 24 equal half-yearly instalments from May 2019 to August 2023.
3 Term Loans aggregating to H133.84 Crore are repayable in total 69 Quarterly instalmenst from May 2019 to Mar 2024.
C. Term Loans aggregating to H1.56 Crore (FIs – HNil, Banks H1.56) are secured by specific charge on the Vehicle hypothicated against these
loans. These Term Loans are repayable in total 45 monthly instalments from April 2019 to December 2022.
D. Secured Term loans from Financial Institutions and Banks have been reduced by H9.88 Crore (FIs – H0.30 Crore, Banks H9.58 Crore) and
NCDs have been reduced by H3.43 Crore due to effective rate of interest.
E. Certain charges are in the process of satisfaction. Secured Term loans from Financial Institutions and Banks include H293.11 Crore foreign
currency loans.
F. Public deposits are due for repayment in 2019-20, 2020-21 & 2021-22.
G. Subsidiary :
i. Term Loans of H166.14 Crore from Bank 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. ThisTerm Loan is repayable in 36 equal quarterly
instalments from December 2021 to September 2030
ii. Secured Term loans from Bank has been reduced by H1.61 Crore due to effective rate of interest.
iii. During the previous year Company had issued Redeemable Preference Shares, 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.
168 | JK Paper Ltd.

NOTE 18. NON CURRENT FINANCIAL LIABILITIES - OTHER H in Crore (10 Million)
Trade Deposits 56.38 48.25
Interest Accrued but not due on Loans 0.73 1.21
TOTAL 59.03 51.70
NOTE 19. NON CURRENT PROVISIONS

TOTAL 7.49 6.55
NOTE 20. DEFERRED TAX LIABILITIES

Tax on difference between book value of depreciable assets as per books of account and 524.04 426.18
written down value as per Income Tax
Tax on carried forward unabsorbed Depreciation (42.64) (125.54)
Tax on Others 23.03 9.11
a. Total Deferred Tax Liability 504.43 309.75
Opening MAT Credit Entitlements (166.31) (96.89)
Current MAT Credit Entitlement (99.29) (69.42)
b. Total MAT Credit Entitlement (265.60) (166.31)
c. Net Deferred Tax Liability (a+b) 238.83 143.44
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. CURRENT FINANCIAL LIABILITIES - BORROWINGS

SECURED
Working Capital Borrowings from Bank 14.29 50.89
UNSECURED
Vendor Bill Discounting - 1.31
Buyer's Credit facilities from Bank - 22.10
TOTAL 18.04 76.03
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 H in Crore (10 Million)
Trade Payable
Total Outstanding dues of Micro and Small Enterprises 3.05 0.55
Total Outstanding dues of Creditors other than Micro and Small Enterprises 271.19 254.71
TOTAL 274.24 255.26
NOTE 23. CURRENT FINANCIAL LIABILITIES - OTHER

Current Maturities of Non Current Borrowings 257.20 262.01
Unclaimed Dividends # 0.20 0.13
Unclaimed Matured Deposits # 0.88 0.72
Unclaimed Interest on Unclaimed Matured Deposits # 0.16 0.11
Capital Creditors 18.82 1.28
TOTAL 360.91 334.32
# Investor Education and Protection Fund will be credited as & when due.
NOTE 24. OTHER CURRENT LIABILITIES

Advance from Customers 8.17 7.17
Statutory Dues 45.33 16.58
TOTAL 175.74 119.49
NOTE 25. SHORT TERM PROVISIONS

TOTAL 4.87 5.88
NOTE 26. CURRENT TAX LIABILITIES

Provision for Income Tax (Net of Advance tax ) 6.63 1.20
TOTAL 6.63 1.20
170 | JK Paper Ltd.

NOTE 27. OTHER OPERATING REVENUES H in Crore (10 Million)
Excess Provision no longer required written back 0.61 -
Miscellaneous Income 22.46 51.24
TOTAL 23.07 51.24
NOTE 28. OTHER INCOME

Interest Income 34.00 7.05
Profit on Sale/Fair value of Current investment 15.30 15.45
Miscellaneous Income 0.69 -
TOTAL 50.00 22.51
NOTE 29. COST OF MATERIALS CONSUMED

Hardwood & Bamboo 545.45 611.13
Pulp 325.38 252.68
Chemicals 316.11 291.27
Packing Material 91.17 99.29
TOTAL 1,278.11 1,254.37
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 53.11 15.88
Work-in-Progress 11.28 17.49
Renewable Energy Certificates - 0.22
131.42 127.85
Less:- Obsolete Inventory (0.99) -
Inventories at the end of the year
Stock-in-Process 20.52 11.28
85.34 131.42
Add:- Excise Duty on Variation of Stock - (6.79)
Less:- Transfer to Pre-Operative Expense (Including of WIP of H0.41 Crore) (0.78) -
(Increase)/ Decrease in Stock TOTAL 47.85 (10.36)

NOTE 31. EMPLOYEE BENEFIT EXPENSES H in Crore (10 Million)
Salaries, Wages, Allowances, etc. 243.14 213.29
Staff Welfare Expenses 7.36 6.37
TOTAL 262.73 231.88
NOTE 32. FINANCE COST

Interest on:
Term Loan and Fixed Deposits 100.05 122.88
Others 12.75 9.80
Other Borrowing Costs:
Financial Charges 7.09 12.85
Premium on Forward Exchange Contracts 0.60 0.47
Net (Gain) or Loss on Foreign Currency Transaction 3.91 (2.98)
TOTAL 124.40 143.02
NOTE 33. DEPRECIATION AND AMORTISATION EXPENSES

Depreciation on Property Plant & Equipment 127.45 121.09
Amortisation of Other Intangible Assets 0.23 1.23
TOTAL 127.68 122.32
NOTE 34. OTHER EXPENSES

Power, Fuel and Water 258.67 245.59
Repairs to Building 12.70 12.51
Repairs to Machinery 31.70 24.54
Rent (Net) 10.93 9.88
Insurance 3.96 4.07
Rates and Taxes 1.04 0.89
Commission on Sales 2.93 3.74
Directors' Fees 0.43 0.16
Directors' Commission 3.40 1.99
Loss on Foreign Exchange Fluctuation 1.77 3.06
Loss on Sale of Assets 0.37 0.17
Asset Written off 0.74 0.10
Bad Debts (0.09) 17.70
Less: Withdrawal from Provision for Doubtful Debts - 15.42
Less: Withdrawal from Provision for Doubtful Advance (0.11) 0.02 1.44 0.84
Other Miscellaneous Expenses 110.16 97.89
TOTAL 498.37 465.65
172 | JK Paper Ltd.

NOTE 35. PRINCIPLES OF CONSOLIDATION:
a. The Consolidated Financial Statements comprise of the financial statements of JK Paper Limited (Parent Company) and the following as on
March 31, 2019;
i. Subsidiaries:
Name Proportion of Financial Statements Status
ownership interest as on
Jaykaypur Infrastructure & Housing Limited, India 100% March 31, 2019 Audited
Songadh Infrastructure & Housing Limited, India 100% March 31, 2019 Audited
JK Enviro-tech Limited, India 92.85% March 31, 2019 Audited
“The Sirpur Paper Mills Limited, India (Subsidiary of JK Enviro-Tech 71.26% March 31, 2019 Audited
Limited, India)”
JK Paper International (Singapore) Pte Limited, Singapore 100% March 31, 2019 Audited
ii. Joint Venture:

Name Proportion of Financial Statements as Status
ownership interest on
Habras MZZ Plantation Myanmar Company Limited, Myanmar* 50.00% March 31, 2019 Audited
*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 transactions
c. Goodwill represents difference between Company’s share in networth 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:
Name of the Entity Net Assets i.e Total Assets minus Share in Profit/(Loss)
Total Liabilities
As % of Amount As % of Amount
Consolidated Net Consolidated
Assets Profit
Subsidiaries
Jaykaypur Infrastructure & Housing Limited, India 0.07% 1.36 0.04% 0.18
Songadh Infrastructure & Housing Limited, India 0.32% 6.43 0.03% 0.12
JK Enviro-tech Limited 1.93% 39.24 -1.37% (5.81)
“The Sirpur Paper Mills Limited, India
(Subsidiary of JK Enviro-Tech Limited, India)” 8.59% 175.04 -1.57% (6.69)
JK Paper International (Singapore) Pte Limited, 1.11% 22.52 -0.02% (0.07)
Singapore
Joint Venture
Habras MZZ Plantation Myanmar Company Limited, 0.00% - 0.00% -
Myanmar (Joint 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 36. 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”.
S. Particulars For the year ended 31st March 2019 For the year ended 31st March 2018
No. Paper & Board Others Total Paper & Board Others Total
A Segment Revenue
External Revenue 3,256.71 - 3,256.71 2,877.49 - 2,877.49
Inter- segment Revenue - 5.52 5.52 - 6.92 6.92
Total Revenue 3,256.71 5.52 3,262.23 2,877.49 6.92 2,884.41
B Segment Results
Segment Results ( PBIT excluding 747.24 (6.80) 740.44 492.44 3.49 495.93
Exceptional items)
Less : (i) Interest & Financial - - 124.40 - - 143.02
Charges (Net)
(ii) Exceptional items - - - - - -
(iii) Other Un-allocable - - - - - -
Expenditure (net off
Un-allocable Income) - - (50.00) - - (22.51)
Total Profit / ( Loss ) before Tax - - 666.04 - - 375.42
( PBT )
C Capital Employed
Segment Assets 4,210.95 311.15 4,522.10 3,539.56 68.89 3,608.45
Segment Liabilities 2,198.39 234.73 2,433.12 1,961.54 1.12 1,962.66
Total Capital Employed (net) 2,012.56 76.42 2,088.98 1,578.02 67.77 1,645.79
Capital Expenditure 92.25 4.11 96.36 89.55 0.49 90.04
Depreciation & Amortisation 126.11 1.57 127.68 120.89 1.43 122.32
Non Cash Expenses other than - - - - - -
Depreciation
NOTE 37. CONTINGENT LIABILITIES & COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
March 31, 2019 March 31, 2018
Contingent Liabilities:
a) Claim against the Company not acknowledged as debts.#
Excise duty/ Custom duty/Service tax liability in respect of matter in appeals 19.32 18.08
Sales tax/ VAT/Octrai liability in respect of matter in appeals 0.97 0.91
Income tax liability that may arise in respect of matters in appeal referred by the 0.63 0.77
department
Other matters 8.03 7.26
b) Commitments:
Contracts remaining to be executed on capital account (Net of Advances) 110.48 47.45
Export commitments against import of capital goods under EPCG scheme 49.95 160.83
# 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.
174 | JK Paper Ltd.

NOTE 38.
In respect of levy of Octroi pertaining to Unit - CPM by Songadh Group Gram Panchayat, the Company has paid H1.25 Crore 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.
NOTE 39.
(A) The Audited GST return for the year ended March 31, 2018 is pending for the filing as competent authority has extended the date of
filing till June 30, 2019. 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.
(B) Hon’ble Supreme Court has pronounced a judgement in Feb., 2019 making clarification with respect to the definition of Wages for
the purpose of Employees Provident Fund contribution. Further petitions have been filed with the Supreme Court seeking additional
clarifications and there has been no clarity either from Govt., or from other concerned authorities.
In light of the above, the Company has not made any provision of the same in the financial statements. However, appropriate accounting
treatment will be given in its ensuing Financial Statements as and when clarification is received.
NOTE 40.
During the 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 41. EARNING PER SHARE

March 31, 2019 March 31, 2018
a) Profit after tax for Basic Earnings Per share 424.94 260.58
Add: Interest on Foreign Currency Convertible Bonds ( FCCBs) (net of tax) (0.33) 0.91
Profit for Diluted Earnings Per Share 424.61 261.49
b) Weighted average number of ordinary shares
Basic 17,79,65,554 17,01,22,773
Effect of conversion option 2,78,031 81,20,814
Diluted 17,82,43,585 17,82,43,587
c) Nominal value of ordinary shares H10/- H10/-
d) Earning per ordinary share (H)
Basic 23.88 15.32
Diluted 23.82 14.67

NOTE 42. 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 September Shri Arun Bharat Ram
2018) Shri Dhirendra Kumar
Shri Amar Singh Mehta, President and Director (w.e.f 1st October Shri M.H.Dalmia
2018) Shri R.V.Kanoria
Executives Shri Sandip Somany
Shri V. Kumaraswamy, Chief Finance Officer Shri Shailendra Swarup
Shri S.C. Gupta, Vice President & Company Secretary Shri Udayan Bose
Relative of KMP Smt. Vinita Singhania
Shri Shrivats Singhania, Vice President (Marketing Development) Shri Wim Wienk (till 12th November 2018)
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:
Sl. Nature of Transaction Enterprise which holds more
No. than 20% of Equity Share
BACL
2018-19 2017-18
(i) Interest Paid 0.01 1.32
(ii) Rent Paid 0.06 0.05
(iii) Loans Given 145.00 -
(iv) Loan installment received 25.00 -
(v) Interest Received 3.11 -
(vi) Loan Repaid 7.50 32.50
(vii) Outstanding at end of the period - Receivable 120.81 -
(viii) Outstanding at end of the period - Payable - 7.50
Sl. Nature of Transactions Trust under common control

No Employees Provident Employees Gratuity Fund Officers Superannuation
Fund Scheme
2018-19 2017-18 2018-19 2017-18 2018-19 2017-18
(i) Contribution 3.91 3.52 4.14 4.58 0.64 0.60
(ii) Outstanding at end of the period- Payable 0.35 0.30 0.69 0.67 0.64 0.60
176 | JK Paper Ltd.

Key Management Personnel (KMP) : H in Crore (10 Million)

Sl. Particulars 2018-19 2017-18
No
(i) Short-term Employee Benefits including honorarium # 35.22 27.00
(ii) Commission and other benefits to Non-Executive Directors * 3.78 2.13
# 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 43. FINANCIAL INSTRUMENTS

Financial Assets H in Crore (10 Million)
Fair value
hierarchy
1. Financial assets designated at fair value through
profit and loss
b) Investment
i) In mutual funds and others B Level-1 646.24 646.24 127.22 127.22
2. Financial assets designated at fair value through
other comprehensive income
Investment In Equity shares C Level-1 6.64 6.64 8.84 8.84
a) Other Bank Balances* 11.50 11.50 104.42 104.42
b) Cash & Cash Equivalents* 15.24 15.24 18.95 18.95
c) Trade receivables* 73.48 73.48 109.15 109.15
d) Other receivables* 168.27 168.27 18.72 18.72
e) Other financial assets 41.73 41.73 13.93 13.93
4. a) Investment in Joint Venture D 22.48 22.48 15.87 15.87
992.59 992.59 427.34 427.34
Financial Liabilities H in Crore (10 Million)

Fair value
hierarchy
1. Financial liability designated at fair value through
profit and loss
a) Borrowings 1,305.38 1305.38 1047.52 1047.52
b) Trade payables * 274.24 274.24 255.26 255.26
c) Other financial liability * 416.46 416.46 383.37 383.37
1,999.56 1,999.56 1,688.80 1,688.80

NOTE 43. FINANCIAL INSTRUMENTS (Contd.)
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.
* 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).
44. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

44.1 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).
178 | JK Paper Ltd.

The following table analyzes foreign currency risk from financial instruments as of March 31, 2019: H in Crore (10 Million)
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
Financial liabilities - - - - -
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)
Net assets / (liabilities) (146.61) (186.25) 0.15 (0.06) 0.04 (332.73)
*H41,402/-
The following table analyzes foreign currency risk from financial instruments as of March 31, 2018:
Particulars USD Euro GBP SGD Total
Financial Assets
Cash and cash equivalents 0.05 - - 0.06 0.11
Trade receivables 18.58 0.04 0.24 - 18.86
Other financials assets ( including loans) - - - -
Financial liabilities -
Trade payables (46.44) (0.58) (0.00)* - (47.03)
Other financials liabilities 0.03 - - - 0.03
Borrowings (163.78) (256.19) - - (419.98)
Net assets / (liabilities) (191.96) (257.49) 0.24 0.06 (449.15)
*H42,229/-
The following significant exchange rates have been applied during the year. (Amount in H)
INR Year-end spot rate
March 31, 2019 March 31, 2018
USD 69.17 65.04
EUR 77.70 80.62
GBP 90.48 92.28
SGD 51.22 47.95
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
0.25% Increase 0.25% decrease 0.25% Increase 0.25% decrease
USD Sensitivity 0.01 (0.01) 0.04 (0.04)
Euro Sensitivity (CY H25,925/-, PY H29,877/-) (0.00) 0.00 (0.00) 0.00
GBP Sensitivity (CY H3,694/-, PY H5,875/-) 0.00 (0.00) 0.00 (0.00)
SEK Sensitivity (CY H1,588/-) (0.00) 0.00 - -
Increases/ ( decrease ) in profit or loss 0.01 (0.01) 0.04 (0.04)
Summary of Exchange difference accounted in Statement of Profit and loss:

March 31, 2019 March 31, 2018
Currency fluctuations
Net foreign exchange ( gain)/ losses shown as operating expenses 1.77 3.06
Net foreign exchange ( gain)/ losses shown as Finance Cost 0.26 0.34
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 3.65 (3.32)
Net foreign exchange ( gain)/ losses shown as Other Income - -
TOTAL 5.68 0.08
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

(H in Crores) % of Total (H in Crores) % of Total
Fixed Rate Borrowings 574.96 39.76% 660.95 50.47%
Variable Rate Borrowings 871.09 60.24% 648.58 49.53%
Total Borrowings 1,446.05 100.00% 1,309.53 100.00%
Sensitivity on variable rate borrowings
Particulars Impact on Statements of Profit & Loss Impact on Equity
As at March 31, 2019 As at March 31, 2018 As at March 31, 2019 As at March 31, 2018
Interest Rate Increase by 0.25% (1.27) (1.91) (1.27) (1.91)
Interest Rate decrease by 0.25% 1.27 1.91 1.27 1.91
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.
180 | JK Paper Ltd.

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 H73.48 Crore and H109.15 Crore as of March 31, 2019 and March 31,
2018, 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 Year ended March 31st
2019 2018
Revenue from top customer 4.10% 4.23%
Revenue from top five customers 14.96% 16.41%
Credit risk exposure
The allowance for lifetime expected credit loss on customer balances for the year ended March 31, 2019 was H0.35 Crore.

Particulars Year ended March 31st
2019 2018
Balance at the beginning 0.20 15.43
Impairment loss reversed - (15.42)
Additional provision created during the year 0.15 0.19
Balance at the end 0.35 0.20
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 and Up to Six Six to Twelve Above 12 Not Due and Up to Six Six to Twelve Above 12
Not Impaired Months Months Months Not Impaired Months Months Months
Unsecured 49.60 23.88 - 0.35 86.34 20.92 1.19 0.91
Provision for Doubtful Receivables - - - 0.35 - - - 0.20
Net Balance 49.60 23.88 - - 86.34 20.92 1.19 0.71
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.

Trade payables 274.24 274.24 - - 274.24
Trade Deposits 56.38 - 0.27 56.11 56.38
Derivative Financial Instruments 1.92 - 1.92 - 1.92
Trade payables 255.26 255.26 - - 255.26
Trade Deposits 48.25 - - 48.25 48.25
Derivative Financial Instruments 2.24 - 2.20 0.04 2.24
44.2 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.
44.3 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.
Particulars As at As at
March 31 2019 March 31 2018
Borrowings 1,562.58 1,309.53
Less: Cash and cash equivalents including bank balance 26.74 123.37
Less: Current Investments 646.24 127.22
Net debt 889.60 1,058.94
Equity 2,038.10 1,643.09
Capital and Net debt 2,927.70 2,702.03
Gearing Ratio 30% 39%
182 | JK Paper Ltd.

NOTE 45. 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 hedgeing at the Balance Sheet Date
Sr. Foreign Currency March 31, 2019 March 31, 2018
No. FC in Mn H In Cr. FC in Mn H In Cr.
1 US Dollar 20.76 143.61 30.70 199.67
2 Euro 13.55 105.29 17.77 143.27
Nominal amounts of Complete Currency Swaps (CCS) for hedging entered into by the Company and outstanding at end of the year is H32.94
Crore (Previous year H41.77 Crore).
Foreign Currency Exposure not hedged as at the Balance Sheet Date

No. FC in Mn H In Cr. FC in Mn H In Cr.
1 US Dollar * 0.44 3.04 (1.17) (7.63)
2 Euro 6.18 48.02 8.99 72.45
3 GBP * (0.02) (0.15) (0.03) (0.24)
4 SEK 0.09 0.06 - -
*Net of Receivables USD 1.15 Million – H7.98 Crore (Previous year USD 2.86 Million – H18.58 Crore), Euro Nil – HNil (Previous year Euro 0.004
Million – H0.04 Crore) and GBP 0.02 Million – H0.15 Crore (Previous year GBP 0.03 Million - H0.24 Crore).
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 :

No. Loan FC in Mn MTM H In Cr. Loan FC in Mn MTM H In Cr.
(Gain)/Loss (Gain)/Loss
1 US Dollar 9.56 (0.01) 11.61 0.68
2 Euro 19.60 0.68 24.20 (0.38)
The Company is fully covered on interest rate fluctuation on foreign currency borrowing through interest rate swaps (IRS) and complete
currency swaps (CCS).

NOTE 46. INCOME TAX
a) Amount recognised in Statement of Profit and Loss
Current Income Tax
Current year 145.12 74.94
Adjustment in respect of current income tax of earlier years - (1.82)
MAT Credit Entitlement
Current year (102.58) (74.86)
Reversal of MAT credit entitlement of earlier years 3.29 5.44
Total 45.83 3.70
Deferred Tax 195.27 111.14
Income tax expense reported in the statement of profit and loss 241.10 114.84
b) Reconciliation of Effective Tax Rate
Profit before tax 666.04 375.42
At applicable Statutory Income Tax Rate CY @ 34.944% PY @ 31.20% 232.74 117.13
Tax Impact on:-
Benefit of 80IA (38.63) 0.80
Donation 0.44 2.45
Differential Tax Rates of Subsidiaries 0.52 (0.31)
In House R&D Expenditure (0.84) (0.88)
CSR Expenditure 1.17 0.64
Deferred Tax Asset not recognised on business losses and unabsorbed depreciation of The 2.34 -
Sirpur Paper Mills Limited
Others 43.36 (5.00)
Reported Income Tax Expense 241.10 114.84
Effective Tax Rate 36.20% 30.59%
NOTE 47. ACQUISITION OF SUBSIDIARY

Resolution Plan under Corporate Insolvency Resolution Process:-
A corporate insolvency resolution process (“CIRP”) under the Insolvency and Bankruptcy Code, 2016 was initiated against the The Sirpur
Paper Mill Limited(“SPML”) 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 has approved the terms of the Resolution Plan submitted by JK Paper Limited.
(“JKPL”), which provides, inter alia, the acquisition of the SPML by JKPL.
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 Crore & issue of securities consisting equity shares of H43.00 Crore and preference shares of
H162.03 Crores by the Company.
To fund the cash required for settlement as per the Resolution Plan, JKPL and its subsidiary JKETL, together subscribed to 76.37% of the
equity share capital of the SPML for an aggregate amount of H139.00 Crore. The remaining 23.63% of SPML’s equity share capital is given
to the erstwhile lenders of the SPML as part of the settlement plan given in the Resolution Plan for H43.00 Crore.
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
184 | JK Paper Ltd.

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 is 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 Crore (net off H12.48. Crore write-off of receivables/ loans) is credited
to the Capital Reserve as stated in the Approved Resolution Plan.
Goodwill H9.81 Crore represents difference between Company’s share in networth of subsidiaries and the cost of acquisition is not
amortised and tested for impairment.
NOTE 48.
Consolidated Financial results includes results of The Sirpur Paper Mills Limited which become subsidiary of the Company with effect
from 01st Aug 2018. In view of this, current year figures are not comparable with previous year.
NOTE 49.
A subsidiary Company had not created deferred tax liability on unamortised value of leasehold land on date of transition to Ind AS i.e.
1st April 2015. During the year related deferred tax liability has been provided in the books and corresponding adjustments pursuant to
Ind AS 8 have been made in retained earning available as on 1st April 2017 i.e. Opening retained earning at the beginning of the earlier
period presented and comparative figures for FY 2017-18 have been restated /remeasured accordingly of said subsidiary Company.
Impact of above adjustments in consolidated financial statements are as under :
Statement of Change in Equity :

Balance as on 31st March 2017 is lower by H2.75 Crore
Statement of Profit and Loss :

Deferred tax (Reversal of Liability) for the F.Y. 2017-18 is H0.05 Crore
Balance Sheet :
Deferred tax liability as on 31st March 2017 is increased by H2.75 Crore
NOTE 50.
Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current year’s classification.
NOTE 51.
Notes 1 to 50 are annexed to and form an integral part of financial statements.


Consolidated Cash Flow Statement for the year ended March 31, 2019
2018-19 2017-18
A. CASH FLOW FROM OPERATING ACTIVITIES :
Net Profit before Tax 666.04 375.42
Adjustments for :
Depreciation and amortization 127.68 122.32
Defined Benefit Plans charged to OCI (1.27) (1.86)
Income from Investments (15.30) (15.45)
(Profit)/ Loss on Sale of Assets (Net) 0.37 0.17
Dividend Income (0.01) (0.01)
Finance Cost 124.40 143.02
Interest Income (34.00) (7.05)
Foreign Exchange Fluctuation 1.77 3.06
Assets Written off 0.74 0.10
Bad Debts 0.02 0.84
Provision for earlier years no longer required (0.61) -
Foreign Currency Translation gain / (loss) on Consolidation 0.99 0.08
Operating Profit before Working Capital Changes 870.97 620.83
Adjustments for Working Capital Changes:
Trade and Other Receivables (152.16) (23.78)
Inventories 47.96 (11.29)
Trade and Other Payables 102.23 43.69
Cash generated from Operations 869.00 629.45
Taxes paid (139.69) (69.14)
Net Cash from Operating Activities 729.31 560.31
B. CASH FLOW FROM INVESTING ACTIVITIES :
Purchase of Property Plant & Equipment (647.26) (89.58)
Sale of Property Plant & Equipment 173.97 1.19
Sale/(Purchase) of Investments (Net) (510.33) 122.41
Interest Received 8.89 6.24
Acquisition of Subsidiary (Net of Cash) 9.09 -
Net Cash from Investing Activities (965.63) 40.27
C. CASH FLOW FROM FINANCING ACTIVITIES :
Proceeds of Long-term Borrowings 567.17 177.51
Repayment of Long-term Borrowings (236.05) (460.16)
Proceeds/(Repayment) from Short-term Borrowings (Net) (57.99) (51.72)
Interest and Financial Charges (131.79) (143.46)
Dividend (including Dividend Tax) (53.65) (29.49)
Proceeds/(Repayment) from Preference Share Capital 8.00 -
Proceeds from Issue of Share Capital to Non Controlling Interest 44.00 -
Net cash from Financing Activities 139.69 (507.32)
D. Increase/(Decrease) in Cash and Cash Equivalents - Cash & Bank (96.63) 93.26
Balance
E. Cash and Cash Equivalents as at the beginning of the year - Cash & 123.37 30.11
Bank Balances (Note No. 11 & 12)
F. Cash and Cash Equivalents as at the close of the year - Cash & Bank 26.74 123.37
Balances (Note No. 11 & 12)
186 | JK Paper Ltd.

Consolidated Cash Flow Statement for the year ended March 31, 2019
2018-19 2017-18
Notes:
(a) Total Liabilities from Financing Activities Long Term Short Term Long Term Short Term
Opening 1,233.50 76.03 1,569.95 127.75
Cash Flow Changes
Inflow/(Repayments) 331.12 (57.99) (282.65) (51.82)
Non-Cash Flow Changes
Foreing Exchange (4.33) - 32.41 0.10
FCCB Conversion (15.46) - (94.70) -
Other (0.29) - 8.49 -
Closing 1,544.54 18.04 1,233.50 76.03
(b) Previous year’s figures have been re-grouped / re-arranged wherever necessary.


NOTES

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Board of Directors

BHARAT HARI SINGHANIA Offices

ARUN BHARAT RAM Administrative Office

Central Pulp Mills (Unit CPM)

Fostering the spirit of entrepreneurship has enabled JK Paper to

India’s status as a growth leader amongst the travails in the global

Annual Report 2018-19 | 03

Annual Report 2018-19 | 05

The Company has been accredited with

ISO 9001:2008, ISO 14001:2004 and OHSAS

18001:2007 certifications, validating its quality,

environment and employee health and safety

Annual Report 2018-19 | 07

Our (H Cr) (%) (%)

1.68 1.08 0.64 0.34

Annual Report 2018-19 | 09

How the Sirpur Paper Mills

Annual Report 2018-19 | 11

Sirpur Paper Mills

Plugging the gap

Annual Report 2018-19 | 13

Preparedness Following green

Annual Report 2018-19 | 15

Challenges and responses

Annual Report 2018-19 | 17

96 % Proportion of raw responsible manufacturer, the Company

How JK Paper has enriched the lives of farmers

“I am now asking my fellow

Baidahi Nayak, Sanabadigaon village, Odisha

“I am advising other farmers

Jayesh Shashikand Josh, Harsunda, Gujarat

Annual Report 2018-19 | 19

Annual Report 2018-19 | 21

Key numbers - Unit JKPM (paper)

104.4 % capacity utilisation

2.8 % reduction in water usage

Key numbers - Unit CPM (paper)

123.5 % capacity utilisation

4.8 % reduction in water usage

111.3 % capacity utilisation % reduction in kWh/tonne expansion. Unit -

5.1 % reduction in water usage

Annual Report 2018-19 | 23

Challenges and responses

Annual Report 2018-19 | 25

Challenges and responses

Annual Report 2018-19 | 27

Challenges and responses

Annual Report 2018-19 | 29

Challenges and responses

Annual Report 2018-19 | 31

India's Vice President Shri Venkaiah Naidu at BYST Grampreneurs Summit

Hill broom binding enterprise by SHGs

Annual Report 2018-19 | 33

Developing Tribal Entrepreneurship

Annual Report 2018-19 | 35

Other Cases (ENT, ophthalmological,

Central nervous system

Sickle cell (Trait/Disease),

Pyrexia of unknown origin