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Shree Cement Ltd

BSE Code : 500387 | NSE Symbol : SHREECEM | ISIN:INE070A01015| SECTOR : Cement |

NSE BSE
 
SMC down arrow

25,936.65

-740.05 (-2.77%) Volume 280564

26-Nov-2021 EOD

Prev. Close

26,676.70

Open Price

26,264.85

Bid Price (QTY)

0.00(0)

Offer Price (QTY)

0.00(0)

 

Today’s High/Low 26,444.05 - 25,820.05

52 wk High/Low 32,050.00 - 22,600.00

Key Stats

MARKET CAP (RS CR) 93581.37
P/E 35.54
BOOK VALUE (RS) 4512.5064336
DIV (%) 600
MARKET LOT 1
EPS (TTM) 729.84
PRICE/BOOK 5.74772587732538
DIV YIELD.(%) 0.23
FACE VALUE (RS) 10
DELIVERABLES (%) 41.66
4

News & Announcements

22-Nov-2021

Shree Cement Ltd - SHREE CEMENT LIMITED - Loss of Share Certificates

15-Nov-2021

Shree Cement Ltd - SHREE CEMENT LIMITED - Analysts/Institutional Investor Meet/Con. Call Updates

11-Nov-2021

Shree Cement Ltd - SHREE CEMENT LIMITED - Loss of Share Certificates

08-Nov-2021

Shree Cement receives affirmation in ratings for CPs

08-Nov-2021

Shree Cement receives affirmation in ratings for CPs

29-Oct-2021

Shree Cement director resigns

23-Oct-2021

Shree Cement to hold board meeting

23-Sep-2021

Shree Cement receives reaffirmation in credit ratings from CARE

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
ACC Ltd 500410 ACC
Ambuja Cement Eastern Ltd(merged) 532201
Ambuja Cement Rajasthan Ltd (Merged) 500122 AMBUJARAJN
Ambuja Cements Ltd 500425 AMBUJACEM
Balaram Cements Ltd 518034
Barak Valley Cements Ltd 532916 BVCL
Basera Cements Ltd(liquidated) 530275
Birla Corporation Ltd 500335 BIRLACORPN
Burnpur Cement Ltd 532931 BURNPUR
Dhar Cement Ltd(liquated) 502076
Gangotri Cement Ltd 518093
Garden Cements Ltd 40395
Gujarat High Tech Industries Ltd 524003
Gujarat Himalaya Cements Ltd 502096
Gujarat Sidhee Cement Ltd 518029 GSCLCEMENT
HeidelbergCement India Ltd 500292 HEIDELBERG
Indo American Cement Corporation Ltd 518099
J K Cements Ltd 532644 JKCEMENT
Jaipur Udyog Ltd 502145
Jamshedpur Cement Ltd 40103
Janpriya Cement Ltd 502088
JK Lakshmi Cement Ltd 500380 JKLAKSHMI
Kalyanpur Cements Ltd 502150
Kesoram Industries Ltd 502937 KESORAMIND
Kesoram Industries Ltd Partly Paidup 890156 KILPP
Lloyd Cements Ltd 531605
Mahendra Cements Ltd 518079
Mangalam Cement Ltd 502157 MANGLMCEM
Modern Cement Industries Ltd 518081
Narmada Cement Company Ltd(merged) 502162 NARMADCEM
Nihon Nirmaan Ltd 500453 NIHONIRMAN
Nirman Cements Ltd 531954
Nuvoco Vistas Corporation Ltd 543334 NUVOCO
OCL India Ltd(Merged) 502165 OCL
Panchmahal Cement Ltd 502070 PANCHMACEM
Pittie Cement & Industries Ltd(liquidated) 500332 PITTIECEM
Prism Johnson Ltd 500338 PRSMJOHNSN
Prudential Cements Ltd (Wound-up) 518059
Radhakisan Cement Ltd 502079
Ranisagar Cement Company Ltd 518107
RCC Cements Ltd 531825
Sahas Cements Ltd 531124
Samruddhi Cement Ltd(merged) 533209 SAMRUDDHI
Sanghi Industries Ltd 526521 SANGHIIND
Saurashtra Cement Ltd 502175 SAURASHCEM
Scan Projects Ltd 531797
Shree Digvijay Cement Co. Ltd 502180 SHREDIGCEM
Shree I-Jee Cement Industries Ltd 518089
Shri Hariganga Cement Ltd 502083
Shubham Industries Ltd 518087
Sigma Cements Ltd 518113
Somani Cement Company Ltd 518071 SOMANICEM
Star Cement Ltd 540575 STARCEMENT
Sukhchain Cements Ltd 518095
Udaipur Cement Works Ltd 530131 JKUDYOG
UltraTech Cement Ltd 532538 ULTRACEMCO
Ultratech Nathdwara Cement Ltd 532849 BINANICEM
Vaishno Cement Co Ltd 526941
Varun Cements Ltd 518109
Vedvyas Cement Ltd 531195
Vinay Cements Ltd 518051
Vishwakarma Cements Ltd 518097
Zodiac Cements Ltd 532082

Share Holding

Category No. of shares Percentage
Total Foreign 4983350 13.81
Total Institutions 3648237 10.11
Total Govt Holding 0 0.00
Total Non Promoter Corporate Holding 3746766 10.38
Total Promoters 22569797 62.55
Total Public & others 1134064 3.15
Total 36080748 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About Shree Cement Ltd

Shree Cement Ltd is one of India's premier cement makers. The company's manufacturing operations are spread over North and East India across six states. The company has a consolidated cement production capacity of 44.4 million tonnes per annum(MTPA) and a power generation capacity of 742 MW. The company is an energy conscious & environment friendly business organization. They have three brands under their portfolio, namely Shree Ultra Jung Rodhak Cement, Bangur Cement and Rockstrong Cement. Their manufacturing units are located at Beawar, Ras, Khushkhera Suratgarh and Jobner (Jaipur) in Rajasthan, Laksar (Roorkee) in Uttarakhand, Aurangabad in Bihar, Panipat in Haryana, Baloda Bazar in Chhattisgarh and Bulandshahr in Uttar Pradesh. The company is headquartered in Kolkata, India. Shree Cement Ltd was incorporated in the year 1979. The company was promoted by Calcutta-based industrialists P D Bangur and B G Bangur. The company is one of the largest cement producers in Rajasthan (Beawar) and is the largest single location manufacturer in Northern India. During the year 1994-95, the company undertook new activities in the field of leasing and hire purchase. The company made a tie up with Christian Pfeiffer & Company, Germany, for installing a horizontal impact crusher to pre-crush clinker before using it in the cement mill for upgrading cement output and save energy. Also, they made a tie up with IKN, Germany, for incorporating their KIDS system in the clinker cooler. In the year 1997, the company commissioned their second plant with the capacity of 1.24 million tonnes, raising total capacity to 2.0 MTPA. In October 1997, the Raj Cement commenced their production. During the year 2001-02 the company exercised to commission a captive 36 MW thermal power project at a cost of Rs.120 crores. In September 2001, they signed an EPC contract with Thermax Ltd and commenced the civil work in October 2001. During the year 2003-04, the company installed a 36 MW captive power plant, which translated into a complete self-dependency and significant savings. During the year 2005-06, the company commissioned a greenfield plant of 1.5 million tonnes per annum (MTPA) capacity at Ras. In August 2005, they commissioned 6 MW captive thermal power plant at their cement manufacturing facility in Rajasthan. During the year 2006-07, the company expanded their production capacity at Bangur city from 1.50 MTPA to 3.00 MTPA by commissioning their unit-IV on March 26, 2007. Also, the company commissioned one unit of captive power plant of 18 MW capacity at Bangur city in order to meet the power requirement of the expanded capacity. In April 2007, they launched their third premium cement brand in the market called Tuff Cemento 3556. During the year 2007-08, the company completed two clun clinkerization units namely, unit V and VI at Bangur city and two grinding units at Khushkhera in Alwar, Rajasthan. Thus, the company attained a total capacity of 6.83 MTPA on ordinary portland cement (OPC) basis. Also, they commissioned the two captive power plants at Bangur City in order to meet the power requirement of these expanded capacities. During the year 2008-09, the company completed their 1 MTPA Clinkerisation Unit (unit-VII) at Bangur city and started their trial production on March 24, 2009. In September 2008, they increased the thermal power generation capacity by commissioning 18 MW turbine generator (TG-VI) at Bangur city. On 8 March 2010, Shree Cement announced that the company has commissioned its 1.8 MTPA Clinker Grinding Unit at Village Udaipur Udasar, Tehsil Suratgarh in Sri Ganganagar District, Rajasthan. On 15 March 2010, Shree Cement announced that the company has commissioned its 1.8 MTPA Clinker Grinding Unit at Village Akbarpur-Oud, Tehsil Laksar in Haridwar District, Uttrakhand. On 16 September 2010, Shree Cement announced that the company has lighted up its Clinker Manufacturing Unit (Unit VIII) of 1 Million tonnes Per Annum capacity at Bangur City, Ras in Pali District of Rajasthan on 15 September 2010. On 24 June 2013, Shree Cement announced that the company has lighted up its Clinker Manufacturing Unit having capacity of 6,000 Ton per day (TPD) at Bangur City, Ras in Pali Distt of Rajasthan on 20 June 2013. On 19 May 2014, Shree Cement announced that it has commissioned one new cement unit of 2 Million Tons Per Annum (MTRA) capacity at Bangur City, Ras, District Pali, Rajasthan on 16 May 2014. The unit is named as Ras New Cement Unit (RNCU). On 1 July 2014, Shree Cement announced that it has commissioned a grinding unit of 2 Million Tons Per Annum (MTPA) capacity at Aurangabad in Bihar on 30 June 2014. On the same day, the company announced that it has lighted up its Clinker Manufacturing Unit having capacity of 6,000 Ton per day (TPD) at Bangur City, Ras in Pali District of Rajasthan on 30 June 2014. On 2 March 2015, Shree Cement announced the company has commissioned Cement Mill Section of 2.6 Million Tons Per Annum (MTPA) Capacity at Baloda Bazar near Raipur in Chhattisgarh on 25 February 2015. On 15 April 2015, Shree Cement announced that the company has completed the phase-2 of Ras New Cement Unit at Bangur City Ras, District Pali, Rajasthan and enhanced its cement production capacity by 2 MTPA with effect from 9 April 2015. On 27 April 2015, Shree Cement announced it has completed the transaction for the acquisition of 1.5 MTPA cement grinding unit of Jaiprakash Associates Ltd. situated at Panipat in the State of Haryana on a going concern basis for an aggregate consideration of Rs 358.22 crore. Earlier, on 19 September 2014, Shree Cement announced that it has entered into a Business Transfer Agreement (BTA) with Jaiprakash Associates for the acquisition of 1.5 MTPA cement grinding unit of Jaiprakash Associates Ltd. situated at Panipat in the state of Haryana on a going concern basis. On 28 May 2015, Shree Cement announced that the company has commissioned clinker manufacturing unit of 1.5 Million Tons Per Annum (MTPA) capacity at Baloda Bazar near Raipur in Chhattisgarh on 20 May 2015. The Cement Mill Section was already commissioned on 24 February 2015. On 31 October 2015, Shree Cement announced that Cement Grinding Unit of 2 Million Tons Per Annum (MTPA) Capacity of the company at Bulandshahr in Uttar Pradesh was commissioned on 30 October 2015. On 19 February 2016, Shree Cement announced that it has emerged as the highest bidder for Limestone deposit at Village Karhi Chandi, District-Baloda Bazar- Bhatapara of Chhattisgarh having estimated reserve of 155 million tons spread over 242 hectares in an e-auction conducted by the state Government of Chhattisgarh on 18 February 2016. The official confirmation from Govt. of Chhattisgarh declaring Shree Cement as the winner of the above deposit is awaited. On 30 March 2016, Shree Cement announced that the company has commissioned Autoclaved Aerated Concrete (AAC) Blocks Project having capacity of 3 Lac Cubic Meter Per Annum at Sikandrabad, Bulandshahr in Uttar Pradesh on 29 March 2016. On 26 May 2016, Shree Cement announced its decision to set up a new clinker unit of 2.8 MTPA at Raipur, Chhattisgarh at an estimated cost of Rs 700 crore (excluding cost of land and other infrastructure) to be financed through internal accrual. On 22 June 2016, Shree Cement announced that it has completed the expansion of grinding unit at Aurangabad (Bihar) from 2 Million Tons Per Annum (MTPA) to 3.6 MTPA on 22 June 2016. On 18 July 2016, Shree Cement announced that the company participated recently in the auction for coal linkages from South Eastern Coalfields Limited (a subsidiary of Coal India Ltd.) for cement sector and won the coal linkage in the State of Chhattisgarh. On 19 Jul 2016, Shree Cement announced that the company has completed the up-gradation of Preheater of Clinker line of Unit-I at Beawar (Rajasthan) on 15 July 2016. Consequently, the Clinker Capacity of Unit-I stands increased from 1.1 MTPA to 1.4 MTPA. On 7 November 2016, Shree Cement announced that it has decided to set up a new cement grinding unit of 3.6 MTPA with an initial plan to set up a blending unit at village Rohi Udaipur Udasar, District Sriganganagar, Rajasthan. The estimated cost of the new project is Rs 300 crore and it will be financed through internal accruals. The project is expected to be completed by the quarter ending June 2018. The company also announced expansion of existing cement grinding capacity at its Aurangabad, Bihar unit from 3.6 MTPA to 4.5 MTPA at an estimated cost of Rs 17 crore to be financed through internal accruals. The company also announced its decision to set up a new cement unit of 5.5 MTPA (considering 100% production based on PPC) in Bihar at an estimated cost of Rs 335 crore to be financed through internal accruals. On 20 January 2017, Shree Cement announced that the Competition Commission of India (CCI) has vide its order dated 19 January 2017, has passed an order against 7 cement companies including Shree Cement for alleged contravention of provisions of the Competition Act, 2002 in respect of bids submitted by them in tender floated by Director Supplies & Disposals, Haryana, for supply of cement at different locations within the state and imposed a penalty of Rs 18.44 crore on the company. Shree Cement said that the company has decided to file an appeal against the CCI order before the Competition Appellate Tribunal. The Board of Directors of Shree Cement at its meeting held on 30 January 2017 approved setting up of an integrated cement plant having clinker capacity of 2.8 MTPA and cement capacity of 3 MTPA at village Kodla in Karnataka. The total investment for the new plant is estimated at Rs 1800 crore. The project will be financed through internal accruals. The project is expected to be completed by the quarter ending December 2018. On 3 March 2017, Shree Cement announced that it has participated in the auction for coal linkage from South Eastern Coalfields Limited (a subsidiary of Coal India Ltd.) for cement sector and won the coal linkage for the company's cement plant at Raipur, Chhattisgarh. On 1 November 2017, Shree Cement announced that it has participated in the auction for coal linkage of Coal India Limited (SECL) for Captive Power Plant sub-sector and won the coal linkages in the State of Chhattisgarh. On 14 December 2017, Shree Cement announced that it has lighted-up its Clinkerisation Unit (KiIn-2) having capacity of 2.60 MTPA at Baloda Bazar near Raipur in Chhattisgarh. The Board of Directors of Shree Cement at its meeting held on 11 January 2018 approved the acquisition of majority equity stake (minimum 92.83%) in Union Cement Company (P.S.C.) (UCC), a company based in UAE, for an enterprise value of USD 305.25 million excluding cash and cash equivalent (for a 100% equity stake) subject to closing adjustments. The company has also signed the Definitive Agreement in this regard with the sellers. Established in 1972, UCC is one of the leading cement manufacturers in the UAE and is a listed company on the Abu Dhabi Securities Exchange. It has its operations in the Emirate of Ras Al-Khaimah in the UAE with a clinker capacity of 3.3 MTPA and cement capacity of 4 MTPA. It deals with a variety of cements like Ordinary Portland Cement, Sulphate Resisting Cement and Oil-Well Cement. UCC has a consistent track record of stable performance. For the calendar year 2016, UCC reported consolidated revenue of USD 153.42 million and EBITDA of 33.73 million (excluding investment and other income). For the nine months ended 30 September 2017, the reported consolidated revenue was USD 120.27 million and EBITDA of 25.97 million (excluding investment and other income). With this acquisition, the aggregate cement capacity of Shree Cement will increased from present 29.3 MTPA to 33.3 MTPA. The proposed acquisition will help Shree Cement create its first footprint outside India. On 15 February 2018, Shree Cement announced that it has commissioned new Cement Grinding Unit (namely Bangur Cement Unit) having capacity of 3.60 MTPA at Village Rohi Udaipur Udasar, District Sriganganagar in Rajasthan. On 19 February 2018, Shree Cement announced that it has commissioned new Cement Grinding Unit having capacity of 2 MTPA at Aurangabad in Bihar. The Company has completed acquisition of Union Cement Company (UCC), th Ras-Al-Khaimah, United Arab Emirates on 11 July 2018 for an Enterprise Value of USD 305.24 Million. The Company now holds a majority stake of 97.61%. The acquisition was made through Wholly Owned Step-down Subsidiary Company viz. Shree International Holding Ltd., incorporated in U.A.E. The Company also acquired Raipur Handling and Infrastructure Private Limited (RHIPL) for an aggregate consideration of Rs 59 crore. RHIPL is engaged in operating a Railway Siding as a Private Freight Terminal near Company's cement plant at Baloda Bazar in Chhattisgarh. The Company completed following projects during the year 2018-19:- a. Integrated Cement Plant having capacity of 3.0 MTPA at Kodla in Kalaburagi (erstwhile Gulbarga) District of Karnataka, b. Commissioned balance 6.3 MW (3 Wind Towers) out of 21 MW Wind Power Plant at Village Kustagi, District Koppal in Karnataka. Further, Company has following on-going projects:- a. Clinker grinding unit of 2.5 MTPA at SeraikelaKharsawan District in Jharkhand which is expected to be operationalized by June, 2019, b. Clinker grinding unit of 3.0 MTPA at Athagarh Tehsil in Cuttack District of Odisha which is planned to be completed in first half of FY 19-20, c. Setting up of 3.0 MTPA Clinker Grinding Unit in Patas District of Maharashtra which is expected to be completed in first half of FY 20- 21. The company bagged Golden Peacock Award for Sustainability -2018 by Institute of Directors, New Delhi. The company also won Asia's Most Trusted Company Award 2018 by International Brand Consulting (IBC), USA. The company received Fly Ash Utilisation Award-2019 by Mission Energy Foundation. The company also received Corporate Governance and Sustainability Vision Award-2019 by Indian Chamber of Commerce. During the FY19-20, the company raised Rs 2,400 Crore by allotting 12,43,523 equity shares of Rs 10 each at a price of Rs 19,300 per share on 23 November 2019 through Qualified Institutions Placement. During the year, Company completed Clinker Grinding Unit having capacity of 2.5 MTPA at Seraikela- Kharsawan District in Jharkhand. Further, Company has following on-going projects: a. Clinker grinding unit of 3.0 MTPA at Athagarh Tehsil in Cuttack District of Odisha which has got delayed and is now expected to be completed in second quarter of FY 20-21, b. Clinker Grinding Unit of 3.0 MTPA at Patas in Pune District of Maharashtra which is scheduled to be completed by second quarter of FY 20-21.

Shree Cement Ltd Chairman Speech

We acknowledge the immense power inside a tiny seed when we witness its transformation into a gigantic tree. This seed has fought its way out overcoming nature's obstacles in its path to become one giant that touches skies.

An enterprise also starts its journey in form of a tiny seed. It is sowed as an idea which gradually grows into a colossal institution crossing all barriers in its path to touch the echelons of success.

All this is made possible on the back of consistent hard work, innovation and perseverance of its members. Like this, four decades back, Shree Cement was also once just a tiny seed.

Over these years, Shree has leveraged interdependencies of technology, processes and people to deliver best-in-class products. Our teams constantly research, experiment, innovate and persevere to optimise everything that they do. Our operations branch out across the breadth of India to widen its reach. We have maximised creation of value and share it equitably amongst our universe of stakeholders. All actions at Shree remain anchored in fulfilling our shared vision of "Lead in creating prosperity and happiness for all stakeholders through innovation and sustainable practices". This shared vision keeps all of us grounded to our roots and our purposes.

The history of human race demonstrates that severe storms of different kind have tried to rock the boat of human progress, time and again. But the resilience of human spirit and collaboration led innovative solutions have helped it sail through these storms. The present COVID-19 health challenge is one such storms the world is facing today. At Shree Cement, we have taken utmost care to ensure that we not only stay safe ourselves, but also be a part of government's mission to collectively defeat this common enemy. Overcoming this challenge may take some time, but collectively we all shall overcome it for sure.

Despite the challenges, we are committed to put our best foot forward for continued and sustained value creation for our stakeholders.

   

Shree Cement Ltd Company History

Shree Cement Ltd is one of India's premier cement makers. The company's manufacturing operations are spread over North and East India across six states. The company has a consolidated cement production capacity of 44.4 million tonnes per annum(MTPA) and a power generation capacity of 742 MW. The company is an energy conscious & environment friendly business organization. They have three brands under their portfolio, namely Shree Ultra Jung Rodhak Cement, Bangur Cement and Rockstrong Cement. Their manufacturing units are located at Beawar, Ras, Khushkhera Suratgarh and Jobner (Jaipur) in Rajasthan, Laksar (Roorkee) in Uttarakhand, Aurangabad in Bihar, Panipat in Haryana, Baloda Bazar in Chhattisgarh and Bulandshahr in Uttar Pradesh. The company is headquartered in Kolkata, India. Shree Cement Ltd was incorporated in the year 1979. The company was promoted by Calcutta-based industrialists P D Bangur and B G Bangur. The company is one of the largest cement producers in Rajasthan (Beawar) and is the largest single location manufacturer in Northern India. During the year 1994-95, the company undertook new activities in the field of leasing and hire purchase. The company made a tie up with Christian Pfeiffer & Company, Germany, for installing a horizontal impact crusher to pre-crush clinker before using it in the cement mill for upgrading cement output and save energy. Also, they made a tie up with IKN, Germany, for incorporating their KIDS system in the clinker cooler. In the year 1997, the company commissioned their second plant with the capacity of 1.24 million tonnes, raising total capacity to 2.0 MTPA. In October 1997, the Raj Cement commenced their production. During the year 2001-02 the company exercised to commission a captive 36 MW thermal power project at a cost of Rs.120 crores. In September 2001, they signed an EPC contract with Thermax Ltd and commenced the civil work in October 2001. During the year 2003-04, the company installed a 36 MW captive power plant, which translated into a complete self-dependency and significant savings. During the year 2005-06, the company commissioned a greenfield plant of 1.5 million tonnes per annum (MTPA) capacity at Ras. In August 2005, they commissioned 6 MW captive thermal power plant at their cement manufacturing facility in Rajasthan. During the year 2006-07, the company expanded their production capacity at Bangur city from 1.50 MTPA to 3.00 MTPA by commissioning their unit-IV on March 26, 2007. Also, the company commissioned one unit of captive power plant of 18 MW capacity at Bangur city in order to meet the power requirement of the expanded capacity. In April 2007, they launched their third premium cement brand in the market called Tuff Cemento 3556. During the year 2007-08, the company completed two clun clinkerization units namely, unit V and VI at Bangur city and two grinding units at Khushkhera in Alwar, Rajasthan. Thus, the company attained a total capacity of 6.83 MTPA on ordinary portland cement (OPC) basis. Also, they commissioned the two captive power plants at Bangur City in order to meet the power requirement of these expanded capacities. During the year 2008-09, the company completed their 1 MTPA Clinkerisation Unit (unit-VII) at Bangur city and started their trial production on March 24, 2009. In September 2008, they increased the thermal power generation capacity by commissioning 18 MW turbine generator (TG-VI) at Bangur city. On 8 March 2010, Shree Cement announced that the company has commissioned its 1.8 MTPA Clinker Grinding Unit at Village Udaipur Udasar, Tehsil Suratgarh in Sri Ganganagar District, Rajasthan. On 15 March 2010, Shree Cement announced that the company has commissioned its 1.8 MTPA Clinker Grinding Unit at Village Akbarpur-Oud, Tehsil Laksar in Haridwar District, Uttrakhand. On 16 September 2010, Shree Cement announced that the company has lighted up its Clinker Manufacturing Unit (Unit VIII) of 1 Million tonnes Per Annum capacity at Bangur City, Ras in Pali District of Rajasthan on 15 September 2010. On 24 June 2013, Shree Cement announced that the company has lighted up its Clinker Manufacturing Unit having capacity of 6,000 Ton per day (TPD) at Bangur City, Ras in Pali Distt of Rajasthan on 20 June 2013. On 19 May 2014, Shree Cement announced that it has commissioned one new cement unit of 2 Million Tons Per Annum (MTRA) capacity at Bangur City, Ras, District Pali, Rajasthan on 16 May 2014. The unit is named as Ras New Cement Unit (RNCU). On 1 July 2014, Shree Cement announced that it has commissioned a grinding unit of 2 Million Tons Per Annum (MTPA) capacity at Aurangabad in Bihar on 30 June 2014. On the same day, the company announced that it has lighted up its Clinker Manufacturing Unit having capacity of 6,000 Ton per day (TPD) at Bangur City, Ras in Pali District of Rajasthan on 30 June 2014. On 2 March 2015, Shree Cement announced the company has commissioned Cement Mill Section of 2.6 Million Tons Per Annum (MTPA) Capacity at Baloda Bazar near Raipur in Chhattisgarh on 25 February 2015. On 15 April 2015, Shree Cement announced that the company has completed the phase-2 of Ras New Cement Unit at Bangur City Ras, District Pali, Rajasthan and enhanced its cement production capacity by 2 MTPA with effect from 9 April 2015. On 27 April 2015, Shree Cement announced it has completed the transaction for the acquisition of 1.5 MTPA cement grinding unit of Jaiprakash Associates Ltd. situated at Panipat in the State of Haryana on a going concern basis for an aggregate consideration of Rs 358.22 crore. Earlier, on 19 September 2014, Shree Cement announced that it has entered into a Business Transfer Agreement (BTA) with Jaiprakash Associates for the acquisition of 1.5 MTPA cement grinding unit of Jaiprakash Associates Ltd. situated at Panipat in the state of Haryana on a going concern basis. On 28 May 2015, Shree Cement announced that the company has commissioned clinker manufacturing unit of 1.5 Million Tons Per Annum (MTPA) capacity at Baloda Bazar near Raipur in Chhattisgarh on 20 May 2015. The Cement Mill Section was already commissioned on 24 February 2015. On 31 October 2015, Shree Cement announced that Cement Grinding Unit of 2 Million Tons Per Annum (MTPA) Capacity of the company at Bulandshahr in Uttar Pradesh was commissioned on 30 October 2015. On 19 February 2016, Shree Cement announced that it has emerged as the highest bidder for Limestone deposit at Village Karhi Chandi, District-Baloda Bazar- Bhatapara of Chhattisgarh having estimated reserve of 155 million tons spread over 242 hectares in an e-auction conducted by the state Government of Chhattisgarh on 18 February 2016. The official confirmation from Govt. of Chhattisgarh declaring Shree Cement as the winner of the above deposit is awaited. On 30 March 2016, Shree Cement announced that the company has commissioned Autoclaved Aerated Concrete (AAC) Blocks Project having capacity of 3 Lac Cubic Meter Per Annum at Sikandrabad, Bulandshahr in Uttar Pradesh on 29 March 2016. On 26 May 2016, Shree Cement announced its decision to set up a new clinker unit of 2.8 MTPA at Raipur, Chhattisgarh at an estimated cost of Rs 700 crore (excluding cost of land and other infrastructure) to be financed through internal accrual. On 22 June 2016, Shree Cement announced that it has completed the expansion of grinding unit at Aurangabad (Bihar) from 2 Million Tons Per Annum (MTPA) to 3.6 MTPA on 22 June 2016. On 18 July 2016, Shree Cement announced that the company participated recently in the auction for coal linkages from South Eastern Coalfields Limited (a subsidiary of Coal India Ltd.) for cement sector and won the coal linkage in the State of Chhattisgarh. On 19 Jul 2016, Shree Cement announced that the company has completed the up-gradation of Preheater of Clinker line of Unit-I at Beawar (Rajasthan) on 15 July 2016. Consequently, the Clinker Capacity of Unit-I stands increased from 1.1 MTPA to 1.4 MTPA. On 7 November 2016, Shree Cement announced that it has decided to set up a new cement grinding unit of 3.6 MTPA with an initial plan to set up a blending unit at village Rohi Udaipur Udasar, District Sriganganagar, Rajasthan. The estimated cost of the new project is Rs 300 crore and it will be financed through internal accruals. The project is expected to be completed by the quarter ending June 2018. The company also announced expansion of existing cement grinding capacity at its Aurangabad, Bihar unit from 3.6 MTPA to 4.5 MTPA at an estimated cost of Rs 17 crore to be financed through internal accruals. The company also announced its decision to set up a new cement unit of 5.5 MTPA (considering 100% production based on PPC) in Bihar at an estimated cost of Rs 335 crore to be financed through internal accruals. On 20 January 2017, Shree Cement announced that the Competition Commission of India (CCI) has vide its order dated 19 January 2017, has passed an order against 7 cement companies including Shree Cement for alleged contravention of provisions of the Competition Act, 2002 in respect of bids submitted by them in tender floated by Director Supplies & Disposals, Haryana, for supply of cement at different locations within the state and imposed a penalty of Rs 18.44 crore on the company. Shree Cement said that the company has decided to file an appeal against the CCI order before the Competition Appellate Tribunal. The Board of Directors of Shree Cement at its meeting held on 30 January 2017 approved setting up of an integrated cement plant having clinker capacity of 2.8 MTPA and cement capacity of 3 MTPA at village Kodla in Karnataka. The total investment for the new plant is estimated at Rs 1800 crore. The project will be financed through internal accruals. The project is expected to be completed by the quarter ending December 2018. On 3 March 2017, Shree Cement announced that it has participated in the auction for coal linkage from South Eastern Coalfields Limited (a subsidiary of Coal India Ltd.) for cement sector and won the coal linkage for the company's cement plant at Raipur, Chhattisgarh. On 1 November 2017, Shree Cement announced that it has participated in the auction for coal linkage of Coal India Limited (SECL) for Captive Power Plant sub-sector and won the coal linkages in the State of Chhattisgarh. On 14 December 2017, Shree Cement announced that it has lighted-up its Clinkerisation Unit (KiIn-2) having capacity of 2.60 MTPA at Baloda Bazar near Raipur in Chhattisgarh. The Board of Directors of Shree Cement at its meeting held on 11 January 2018 approved the acquisition of majority equity stake (minimum 92.83%) in Union Cement Company (P.S.C.) (UCC), a company based in UAE, for an enterprise value of USD 305.25 million excluding cash and cash equivalent (for a 100% equity stake) subject to closing adjustments. The company has also signed the Definitive Agreement in this regard with the sellers. Established in 1972, UCC is one of the leading cement manufacturers in the UAE and is a listed company on the Abu Dhabi Securities Exchange. It has its operations in the Emirate of Ras Al-Khaimah in the UAE with a clinker capacity of 3.3 MTPA and cement capacity of 4 MTPA. It deals with a variety of cements like Ordinary Portland Cement, Sulphate Resisting Cement and Oil-Well Cement. UCC has a consistent track record of stable performance. For the calendar year 2016, UCC reported consolidated revenue of USD 153.42 million and EBITDA of 33.73 million (excluding investment and other income). For the nine months ended 30 September 2017, the reported consolidated revenue was USD 120.27 million and EBITDA of 25.97 million (excluding investment and other income). With this acquisition, the aggregate cement capacity of Shree Cement will increased from present 29.3 MTPA to 33.3 MTPA. The proposed acquisition will help Shree Cement create its first footprint outside India. On 15 February 2018, Shree Cement announced that it has commissioned new Cement Grinding Unit (namely Bangur Cement Unit) having capacity of 3.60 MTPA at Village Rohi Udaipur Udasar, District Sriganganagar in Rajasthan. On 19 February 2018, Shree Cement announced that it has commissioned new Cement Grinding Unit having capacity of 2 MTPA at Aurangabad in Bihar. The Company has completed acquisition of Union Cement Company (UCC), th Ras-Al-Khaimah, United Arab Emirates on 11 July 2018 for an Enterprise Value of USD 305.24 Million. The Company now holds a majority stake of 97.61%. The acquisition was made through Wholly Owned Step-down Subsidiary Company viz. Shree International Holding Ltd., incorporated in U.A.E. The Company also acquired Raipur Handling and Infrastructure Private Limited (RHIPL) for an aggregate consideration of Rs 59 crore. RHIPL is engaged in operating a Railway Siding as a Private Freight Terminal near Company's cement plant at Baloda Bazar in Chhattisgarh. The Company completed following projects during the year 2018-19:- a. Integrated Cement Plant having capacity of 3.0 MTPA at Kodla in Kalaburagi (erstwhile Gulbarga) District of Karnataka, b. Commissioned balance 6.3 MW (3 Wind Towers) out of 21 MW Wind Power Plant at Village Kustagi, District Koppal in Karnataka. Further, Company has following on-going projects:- a. Clinker grinding unit of 2.5 MTPA at SeraikelaKharsawan District in Jharkhand which is expected to be operationalized by June, 2019, b. Clinker grinding unit of 3.0 MTPA at Athagarh Tehsil in Cuttack District of Odisha which is planned to be completed in first half of FY 19-20, c. Setting up of 3.0 MTPA Clinker Grinding Unit in Patas District of Maharashtra which is expected to be completed in first half of FY 20- 21. The company bagged Golden Peacock Award for Sustainability -2018 by Institute of Directors, New Delhi. The company also won Asia's Most Trusted Company Award 2018 by International Brand Consulting (IBC), USA. The company received Fly Ash Utilisation Award-2019 by Mission Energy Foundation. The company also received Corporate Governance and Sustainability Vision Award-2019 by Indian Chamber of Commerce. During the FY19-20, the company raised Rs 2,400 Crore by allotting 12,43,523 equity shares of Rs 10 each at a price of Rs 19,300 per share on 23 November 2019 through Qualified Institutions Placement. During the year, Company completed Clinker Grinding Unit having capacity of 2.5 MTPA at Seraikela- Kharsawan District in Jharkhand. Further, Company has following on-going projects: a. Clinker grinding unit of 3.0 MTPA at Athagarh Tehsil in Cuttack District of Odisha which has got delayed and is now expected to be completed in second quarter of FY 20-21, b. Clinker Grinding Unit of 3.0 MTPA at Patas in Pune District of Maharashtra which is scheduled to be completed by second quarter of FY 20-21.

Shree Cement Ltd Directors Reports

#MDStart#

Management Discussion and Analysis

Dear Members,

The Directors take pleasure in presenting their 42nd Report and the Audited Financial Statements of the Company for the financial year 2020-21. Management Discussion and Analysis has also been incorporated into this report.

1. FINANCIAL PERFORMANCE

A brief of financial performance for the year gone by and its comparison with previous year is given below: -

Particulars Standalone Consolidated
2020-21 2019-20 2020-21 2019-20
Revenue from Operations 12,588.39 11,904.00 13,476.33 12,868.39
Other Income 458.00 271.62 466.33 274.40
Total Income 13,046.39 12,175.62 13,942.66 13,142.79
Total Expenditure 8,633.67 8,229.47 9,424.95 9,109.29
Profit Before Interest, 4,412.72 3,946.15 4,517.71 4,033.50
Depreciation and Taxes (PBIDT)
Finance Costs 247.10 286.52 251.29 291.43
Depreciation and Amortisation expenses 1,139.90 1,699.42 1,262.34 1,807.81
Profit Before Tax 3,025.72 1,960.21 3,004.08 1,934.26
Tax Expense 713.79 390.03 714.49 390.20
Profit After Tax 2,311.93 1,570.18 2,289.59 1,544.06
Profit attributable to Owners of the Company - - 2,285.87 1,535.85
Profit attributable to Non-Controlling Interest - - 3.72 8.21

Key highlights of the year (Standalone basis):

• Sale volume (cement and clinker) witnessed an increase of 7.7% to 26.84 million tons in 2020-21 from 24.92 million tons of previous year. This is despite COVID-19 impacting the sale volumes in the early part of the year. Increase in volume was observed across all regions where Company operates. However, increase in cement sales from Kodla unit in Southern India went up significantly from 1.47 million tons to 2.19 million tons.

• Increase in sales volumes led to Revenue from operations growing by 5.7% from Rs.11,904 crore to Rs.12,588 crore. Company's continued focus on raising share of its premium products along with continuous efforts to position its brands led to maintaining price realisation.

Key Cost components: Company has a sustained program to drive efficiency and mitigate cost headwinds across various cost items which has made it one of the lowest cost cement producers in the country.

(a) Raw material: On account of continued optimisation in our limestone mining operations and higher in-house production of gypsum helped mitigate the increase in cost of fly ash and other materials. As a result, raw material cost remained at the same level of previous year.

(b) Power & Fuel: Increase in share of low cost renewable energy and efficient energy management practices helped the Company reduce its power cost during the year. Company's pro-active procurement strategy and use of multiple fuels coupled with increased usage of alternative fuels helped Company keep fuel cost static despite increasing prices of coal / petcoke in international markets.

(c) Logistic Cost: Logistics and transportation cost increased mainly on account of increase in diesel prices. Company continues to work on efficiency improvement initiatives, rationalising routes and lead distances, enhancing direct dispatches and raising use of technological tools in supply management etc. to keep the cost under check.

(d) Finance Cost: Finance cost came down by 13.9% from Rs.287 crore to Rs.247 crore on account of repayment of long-term borrowings and efficient working capital management.

• Earnings Before Interest Depreciation and Tax (EBIDTA) rose to Rs.4,413 crore by 11.8% compared to Rs.3,946 crore of previous year on account of growth in volumes, higher share of premium products and cost optimisation measures.

Key Financial Ratios

Key financial ratios of the Company in terms of showing the financial performance are as under: -

Particulars 2020-21 2019-20 % Change Remarks

Operating Profit Margin 31.42% 30.87% 1.77% No significant change (without other income) (%) Net Profit Margin (%) 18.37% 13.19% 39.23%

Improved due to lower depreciation charge

Return on Net Worth (%) 15.71% 11.77% 33.43%

Interest Coverage Ratio 17.86 13.77 29.66% Improved due to higher operating profit & reduction in interest cost Debtors Turnover (Days) 14.09 25.40 -44.54% Reduced due to efficiency in collection process Inventory Turnover (Days) 42.83 43.78 -2. 17% Reduced due to increase in turnover Current Ratio (Times) 2.05 1.79 14.28% Improved due to reduction in current maturity of long-term debts

Debt-Equity Ratio (Times) 0.11 0.20 -43.75% Repayment of Long Term Debts

2. DIVIDEND AND RESERVES

The Board of directors of the Company has recommended final dividend of Rs.60/- per equity share of Rs.10/- each for the Financial Year 2020-21.

For previous year 2019-20, the Company had paid total dividend of Rs.110/- per share (which included Rs.70/- per equity share as normal dividend and Rs.40/- per equity share as additional dividend).

In terms of the provisions of the Finance Act, 2020, dividend shall be taxed in the hands of the shareholders and the Company shall withhold tax at source at the applicable rates.

Total dividend relating to the year 2020-21 amounts to Rs.216.48 crore as against Rs.478.47 crore (including dividend distribution tax of Rs.81.58 crore) for the year 2019-20.

During the year 2020-21, an amount of Rs.500 crore was transferred to General Reserves.

The Board of Directors of the Company in line with provisions of Regulation 43A of Securities

Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) had approved Dividend Distribution

Policy on August 12, 2016. The policy is uploaded on Company's website and can be accessed at the link https://www.shreecement.com/uploads/ cleanupload/dividend-distribution-policy.pdf.

3. MANAGEMENT OUTLOOK OF MACRO ECONOMY AND INDUSTRY

I. Indian Economy-Developments and Outlook

Indian economy faced one of its most challenging years during 2020-21. Lockdown imposed by Central Government to contain spread of coronavirus brought the economic activities to a standstill. Following its six-year low performance of 4.2% in 2019-20, GDP growth expectedly nosedived with sharp contraction of 24.4% (on constant prices) in first quarter which further continued by 7.3% in second quarter of 2020-21. Government of

India announced various stimulus measures to generate job opportunities and provide liquidity support to various sectors including construction, infrastructure development and housing. This was subsequently followed by slew of announcements made in the Union Budget of 2021-22 to boost economic growth. The fiscal deficit expansion and thereby creating extra room for investing in infrastructure development with

34.5% increase in the capital expenditure helped improve sentiments. The support provided by RBI in terms of easy liquidity, moratorium of loan recovery and a benign interest rate environment helped push up the consumption. All these measures and pent up demand helped sharp recovery in the economic activities in second half of year 2020-21. Economic Survey 2020-

21 also showed a sharp recovery due to resurgence in high frequency indicators such as power demand, rail freight, e-way bills,

GST collection, steel consumption, etc. The second advance estimates for year 2020-21 released by National Statistical Office projects a contraction of 8.0% in real GDP growth which came lower than initial assessments.

Sector-wise, manufacturing, services and construction were hit while agriculture, government consumption and net exports helped contain the deceleration of growth.

Just as the economy appeared to be inching back to normalcy, India has been hit by a second wave of Covid-19 infections in early

April. This time, the Covid-19 has been more infectious. Spiraling cases of infections have overwhelmed the health system in the country. The Government, both at central and state level, are working relentlessly to counter the situation and mitigate its impact.

While there is no complete lockdown, the restrictive measures adopted by States have started denting the economic activities. RBI, IMF and various Rating agencies had, in April, projected GDP growth of upwards of 11% for FY 2021-22 have started revising their projection downward to below 10%.

Overall, despite the challenging environment, the growth-story of India remains intact.

India remains a preferred investment destination for FDI amidst global asset shifts towards emerging economies. Faster containment of second wave and successful implementation of vaccine program can help faster mitigation of the impact of Covid-19.

Proactive and decisive measures taken by governments and policy makers will certainly help kick-off growth bandwagon again and put the economic recovery back on rails. The

“Atma-Nirbhar Bharat Abhiyan” (Self-reliant

India Mission) which entails greater focus on local manufacturers and service providers will help country reduce its dependence on imports and boost exports thereby giving impetus to economic growth. Further, both the India Meteorological Department (IMD) and Skymet, have predicted a normal monsoon for 2021. Normal rains will offset the demand contraction induced by the pandemic. In view of the above, while there are several favourable factors for positive outlook for the Indian economy for FY 2021-22, the biggest challenge in terms of uncertainty around duration and impact of Covid-19 led restrictions may make such assessment erratic.

II. Cement Industry – Development and Outlook

Cement industry started the year 2020-21 with cement demand witnessing disruption due to suspension of production, stalled construction activities and non-availability of labour due to lockdown. The outlook seemed uncertain with continued extension of lockdown restrictions. With gradual unlocking of economic activities, sentiment started picking up due to pent-up demand specially from rural areas. With enhanced government spending and normalisation of labour availability, the demand from infrastructure segment also witnessed steady pick-up. In later part of the year, Real estate sector also emerged as a major contributor to the demand revival due to increased housing requirement, decline in housing loan rates and stamp duty reduction announced by some States. All in all, year 2020-21 ended on a positive note led by a solid increase in the construction activities across rural and urban areas as well as elevated spending from Governments towards infrastructure projects. While the final data for the cement industry for 2020-21 are yet to come out, considering the momentum witnessed towards the later part of the year, all India cement production is likely to have exceeded the level of approx. 333 million tons recorded in 2019-20.

Cement demand is closely linked to the overall economic growth, particularly of the housing and infrastructure sector. With the

GDP growth for FY 2021-22 is projected to be in higher single digit, the cement industry is also expected to achieve healthy growth.

The accommodative stance of RBI to push economic growth is incentivising businesses with higher credit offtake and business activities. A benign interest rate policy coupled with “work from home” practice adopted by businesses has led to increased housing construction activities. Also, focus on infrastructure sector and housing for all scheme, shall be the drivers of the demand. In light of the above, while there are continued uncertainties in terms of impact and duration of Covid-19 related restrictions, considering that present Covid-19 infections are likely to peak out soon and economic activities will start returning to normalcy, the outlook for the cement industry is considered cautiously optimistic.

4. NEW / EXPANSION PROJECTS

During the year 2020-21, Company commissioned commercial operations of Clinker Grinding Unit having capacity of 3.0 Million Ton Per Annum (MTPA) at Athagarh Tehsil in Cuttack District of Odisha. The completion of Clinker Grinding Unit of 3.0 MTPA at village Patas in Pune District of Maharashtra has however, got delayed because of Covid-19 and Right of Way issues. The same is now expected to commence commercial production by September, 2021.

Further, Company is setting-up upto 12000 Ton Per Day (TPD) brownfield clinkerisation unit at village Khapradih in Baloda Bazar district of Chhattisgarh. The project activities are running on track and the project is likely to be completed in first half of FY 2022-23.

5. RISK MANAGEMENT

Company's risk management process is designed to identify and mitigate risks that have the potential to materially impact its business objectives and maintains a balance between managing risk and making most of the opportunities. The Board is responsible for overseeing the overall risk management framework of the Company. The Audit and Risk Management Committee of Board, keeps an eye on execution of the risk management plan of the Company and advises the management on strengthening mitigating measures wherever required. The actual identification, assessment and mitigation of risks are however done by key executives of the Company in a systematic manner through regular meetings and dialogue and engagement

/ consultation with relevant stakeholders. The risks are prioritised according to significance and likelihood. Risks having high likelihood and high significance are classified as ‘key risk'. The key risks identified by the Company and their mitigation measures are as under:

S. No. Risks Risk component and mitigation measures
1. Over- capacity in the industry Continued over capacity in the industry poses risk of under- utilisation of production capacities, loss of market share and output prices falling to non-remunerative levels. As mitigation strategy for this risk, Company has invested in building customer loyalty through consistent high quality products, faster delivery to consumers, focus on premium segment and continued customer engagement. It has also been continuously adding capacity in markets where demand-supply conditions are considered to be relatively favourable so as to increase overall market share.
2. Availability of limestone and other natural resources Limestone is the principal raw material for cement production and its consistent availability at optimum cost is essential for existing and future plant requirements. With depleting reserves at existing mines and acquisition of new limestone mines getting uncertain due to regulatory and competition issues, conservation of limestone has become paramount. Company has been making all efforts to optimise its usage, thereby, conserving the deposits and enhancing their life. These include use of additives in clinker production without compromising the quality, enhanced production of blended cement, deployment of latest mining techniques to reduce overburden and wastage, etc. Water is an essential component of environment, human life and economy. Company's plants in Rajasthan are located in water deficient areas with continuously depleting water tables and as such, conserving water becomes very important. In power generation, Company installed Air Cooled Condensers (ACC) in all its thermal power plants which though involve additional capital expenditure, have helped Company reduce water consumption significantly. Additionally, Company has installed Waste Heat Recovery Systems in all its clinker units thereby, eliminating the need for cooling of waste hot gases and thus, saving water. Water harvesting reservoirs have also been constructed within plant and mines area.
3. Fuel cost Company meets its fuel requirement by sourcing from open market and hence is exposed to volatility of market prices of the fuel. As mitigation measures, Company has deployed multi-fuel usage strategy as well as state-of-the-art technology in its operations, which allows it to use different fuels and most economical fuel among a basket of different fuels as per prevailing trends in the market. Company also participates in auction for securing coal linkage as and when organised by relevant authorities. Company has secured coal linkages for its Baloda Bazar cement plant(s). Additionally, to reduce reliance on conventional fuel for power generation, Company has extensively invested in Waste Heat Recovery Power Plants which do not entail usage of any fuel and thereby, cushioning itself from fuel price volatility to that extent. It has also been continuously investing in expanding its renewable portfolio (wind, solar) for meeting its energy requirements.
4. Economic slowdown COVID-19 pandemic has impacted the business and economy across the world. Restrictions and lockdown imposed in India to contain spread of virus have brought the business activities to a standstill and inducing economic slowdown all across. Company has taken the risks of such external factors into its business strategy and have taken necessary steps in terms of devising plans for mitigating such risk. It has prepared contingency plans such as work from home, enhanced safety measures, strategies for continuity of business and rapid restoration of operations.
5. Cyber security Owing to increasing importance of digitisation, majority of business activities of the Company have been witnessing digital transformation including logistics, marketing and manufacturing. Significant advantages of digitisation reflect in the form of faster customer servicing, enhanced process efficiency, better controls and speedy decision making. Digitisation is however fraught with risk of misuse of hardware and software, cyber-attacks, unauthorised access, data loss, etc. which can impact business operations. Company has been taking necessary measures like systematic back-up procedures, firewall systems, better monitoring & control mechanism to mitigate any risks arising due to digitisation.
6. Climate change Global warming and consequent impact in the form of erratic and frequent climate change has emerged as a major risk across globe. This impacts Company's operations also as cement manufacturing is an energy and resource intensive process and releases CO2 due to calcination process and combustion of fuels. Efforts to address climate change by reducing emissions of Greenhouse Gases (GHG) through National, State and regional laws and regulations as well as international agreements will bring about various regulatory requirements impacting the way Company carry out its operations. New legislative or regulatory controls may pose risks which could include costs to purchase allowances or credits to meet GHG emission caps, costs required to procure advanced equipment to reduce emissions to comply with GHG limits or required technological standards or higher production costs. In addition, physical risks arising from extreme weather or high temperatures may impact any manufacturing sector in terms of property damage and disruption to operations. While combating climate change require collaborative and coordinate efforts from all, the Company has been continuously making efforts in this field. Efforts towards conservation of natural resources, enlarging renewable energy portfolio at various plant locations, use of efficient and state-of-art technologies in operations, etc. are testimony to the same. We have integrated sustainability as core to our operations and are thus prepared to meet new regulatory and legislative requirements resulting from climate change risks.
7. Health and safety of employees Health and safety of our employees and workers remains our utmost priority specially during the pandemic time. To mitigate the risk, the Company continues to work on institutionalising operational discipline particularly observing the safety procedures and protocols, both for employees and workers. Safety Committees have been formed to oversee safety related issues and implementing best safety practices. Wellness Management Centres have been established at plant level to meet any medical emergency requirement and oversee health related issues of the employees. To mitigate COVID-19 related challenge, required protocols and practices have been stringently implemented and compliance is ensured.
8. Impact of regulatory changes In developing and dynamic economy such as India, regulatory environment keeps on progressing to keep pace the global dynamics in the fields of environment, taxation, competition, governance, etc. Non-compliance of applicable regulations may lead to imposition of penalties, suspension of operations, among others apart from reputational damage. This may also hinder the pace of innovation, upgradation, transformation within the organisation. To mitigate the same, the Company keeps a strict vigil and regularly tracks on the regulatory environment and take necessary actions. Wherever required, it amends/ upgrade its operational practices and incur capex to ensure the compliance.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Company has put in place adequate internal control systems commensurate with its size of operations. Company's internal control systems include policies and procedures, IT systems, delegation of authority, segregation of duties, internal audit and review framework, etc. Company has laid down internal financial controls and systems with regard to adherence to Company's policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and timely preparation of reliable financial information. The framework is in compliance with the requirements of the Companies Act, 2013. The Company periodically assesses design as well as operational effectiveness of its internal controls across multiple functions and locations through extensive internal audit exercises. Based on the assessment of internal audit function, process owners undertake corrective action in their respective areas, and thereby strengthen the controls. Significant audit observations and corrective actions thereon are presented to the

Audit and Risk Management Committee of the Board on periodical basis. The Audit and Risk Management Committee evaluates the adequacy and effectiveness of internal financial control systems periodically.

7. HUMAN RESOURCES / INDUSTRIAL RELATIONS

In today's fiercely competitive business environment, attracting, retaining and nurturing the best talent is key to attaining the strategic objective of the Company. In this respect, the

Company continues to take necessary measures and create a conducive atmosphere for the same. Major initiatives taken during the year were: -

(a) Offline to Online:The process of talent acquisition and learning was made online within 10 days of the COVID-19 induced lockdown in April, 2020. The Company launched AI based learning platform STEPS and used Webex and Zoom platforms to deliver live training programmes. Learning was a focus in this year and average man hours increased by 53%. The interview and selection process which used to be conducted in person have shifted to online platforms and was successfully managed even when volumes increased.

(b) Focus on automation: There has been an increased focus on automation. Multiple HR processes have been automated, thereby bringing in a significant reduction in cycle time and incidence of errors. The focus was

SPARQ an app internally developed by the

IT team with inputs from HR. It is a one stop solution for all employee queries, leave balance, attendance management, policy related solutions and a lot more. These solutions have been extremely well received within the organisation, and the team is working towards improving it further based on the feedback received.

(c) Health & Wellness: As important as it is in all times, the year gone by showed how important health and wellness of employees are. Company conducted programmes on holistic health and wellness, staying fit at home, mental health, yoga by industry experts etc. The in-house coach also conducted virtual exercise classes encouraging people to stay fit. The efforts were well appreciated when the Company was recognised as a winner in the Health and Wellness category by Society of Human

Resource Management, India.

(d) Among India's Best Companies to Work for: The Company's team has been making consistent efforts to make the Company a more receptive, inclusive and employee friendly organisation. Company conducts formal and informal surveys throughout the year to get the pulse of employees. The most important of these is through participation in “Great Place to Work” Survey. Company's scores in the “Great Place to Work” Survey has consistently been at par with the top

100 companies in India. During the year, the Company was again certified as a Great Place to Work continuously for the third time. It was adjudged Best in Cement and Building

Materials category, stood among the Top 30 in the Manufacturing and Production sector category and was among the Top 100 Organisations to Work for across sectors.

(e) Occupational Health and Safety- Following a ‘Safety First' approach, health and safety is a top priority area of the Company. To institutionalise the organisation-wide focus on Occupational Health and Safety, Company has built a robust safety management system based on the globally recognised and practised OHSAS 18001 standard.

‘Safety Committees' have been formed at all manufacturing units with equal representation from both management and non-management categories. These committees play a pivotal role in achieving the objective of ‘Safety First' by undertaking assessment of safety issues on an ongoing basis and implementing suitable initiatives and programs for the same. To transform the way workers' look at safety and make them aware and adopt best practices related to safety, these Committees periodically organise online and offline trainings, mentoring and coaching with the help of internal and external safety experts. This has helped bring about a positive change to the workers' safety performance. Such interactions also help the plant level safety committees get feedback from workers and thereby identify hazards and minimise the recurrence of the same. Company has established a structured hazard identification and risk assessment process which helps us identify potential risks which could have resulted in production disruptions and liabilities.

To provide its employees and contractual workers access to quality healthcare services, Company has established ‘Wellness Management Centres' (WMC) at all the locations. WMCs are equipped with qualified doctors and modern facilities which help carry out day to day health-care services and also conduct annual health check-ups for employees & contract workers. Health talks by experts and specialists are also organised to propagate awareness on chronic and lifestyle diseases.

All safety initiatives and employee engagement programs have been designed to ensure their continuous review and monitoring. Through a regular internal audit protocol, the Company assesses the overall safety performance and examines the existing procedures, systems and control measures for fire & safety hazards.

Observations and recommendations are implemented by concerned departments within set timelines. As part of the process, monthly safety performance of all grinding units are reviewed and discussed with all safety professionals for implementation of common safety system and practices.

(f) Industrial Relations - Employee relations remained cordial during the year. This has enabled

Company to build healthy relationship and resolve issues through dialogue and discussions.

Total number of employees as on March 31, 2021 were 6,259.

8. RESPONSE TO COVID-19 OUTBREAK AND

MEASURES TAKEN

COVID-19 has posed an unprecedented health challenge across the globe. Health and safety of

Company's employees and of local communities has gained more importance than ever before. On resumption of operations post relaxation of the nation-wise lockdown imposed by Government, several measures were taken by the Company. All prescribed COVID-19 related protocols advised by Government, industry bodies, etc. were immediately implemented and put in place to ensure safe working conditions for employees and workers. Depending upon nature of work, facility of ‘work from home' was extended. The

Company focused on enhancing use of digital and online mode of working to cater to the changed working environment. For nearby communities, the Company extended its support in form of regular sanitisation, disinfectant sprays, distribution of masks & other hygiene products, creating awareness through boards, banners, etc.

Company provided its support for strengthening and upgrading medical facilities in nearby areas and improving working conditions for health workers which included arrangement of oxygen cylinders, ventilators, testing machines and other critical life-savings equipment. Company made financial contributions to Chief Minister Relief

Funds of the State of Rajasthan, Chhattisgarh and

Karnataka besides contributing to PM CARES fund to augment government resources.

9. SUSTAINABILITY

Sustainability is at the forefront of the Company since inception. It has been Company's constant endeavour to formulate, adopt and continuously improve its business model embracing both sustainability and growth agenda. As part of its sustainability agenda, Company focuses on conservation of environment, natural resources and energy efficiency. Company's operational strategy is built on a long- term commitment to experiment and implement new ideas for improving efficiencies and minimising the use of input resources. During the year, the Company continued pursuing its sustainability agenda with same intensity and rigour. Key notable initiatives in this area were as follows: -

(a) Generation of power from renewable resources – Focus on renewable energy (RE) continues to remain a thrust area in our sustainability agenda. This has helped

Company in conserving precious natural resources and mitigating GHG emissions.

Over the years, the Company has been steadily ramping up its RE power generation capacity spanning across Waste Heat Recovery (WHR), Solar and Wind power plants. The Company continues to have largest WHR capacity in World Cement

Industry excluding China. This apart, in terms of operational efficiency of WHRP, Company is regarded as one of the best in the industry.

Its total RE power capacity (including WHR) stood at 255 MW at the end of financial year 2020-21.

(b) Energy Conservation – Energy conservation has been another focus area of the Company.

As part of “Perform, Achieve & Trade” (PAT) scheme of the Govt. of India, the Monitoring & Verification Audit for PAT cycle -III (2017-

18 - 2019-20) has been completed and the Company has overachieved its targets and thereby entitled to claim 12,623 (Nos) of ESCerts. In PAT Cycle I & II also, the Company had overachieved its targets. The Company was awarded with the ‘Best Performer' award for energy saving under PAT Cycle I by Bureau of Energy Efficiency. More details on initiatives taken in the area of energy conservation are given in Annexure – 3 to this report.

(c) Alternative Fuels and Raw Materials – Company is constantly working on to increase usage of alternative raw materials and fuels in its operations. Company uses of wastes of various industries such as Pharma, Chemical,

Sponge Iron as alternate fuel. As alternative raw materials, the Company has been using marginal grade limestone and quarry rejects with high grade material in a cost effective manner.

(d) Water Conservation - Water is increasingly becoming a scarce and precious natural resource. The Company has been working on two-pronged approach of optimising water consumption as well as increasing availability of water through water harvesting and recharging. Company's macro level initiatives in this regard such as installation of Air Cooled Condensers in all its thermal power plants and setting-up Waste Heat Recovery based power plants have been a great success. Micro initiatives include construction of rain water harvesting structures around operating sites and mining area, installation of Sewage Treatment Plants for treating domestic waste water, use of recycled water in operations which help in increasing the availability of water and reduce dependence on ground water. Company is also undertaking a detailed assessment of water flows around its plants to identify potential areas which are most suited for water harvesting and recharge.

(e) Sustainability Reporting - Company released its 16th annual Corporate Sustainability Report for the reporting period 2019-20 titled “Innovative to Survive and Collaborative to Thrive”. Company has been advocating its policies and procedures and is proactive in showcasing its unique practices at the global platform. Company has built a strong collaborative approach with its partners such as suppliers, customers, vendors, and many other participating bodies. The said report was prepared in accordance with the “GRI Standards – Comprehensive Option” and assured by an independent certifying agency. The

Company has also consistently issued its Business Responsibility Report as part of

Annual Report since year 2012-13 disclosing its performance with respect to various

Business Responsibility principles.

Company's continued endeavours towards improving productivity and efficiency of all processes, equipment and systems as well optimisation measures have made it one of the most efficient players in terms of energy consumption and resource utilisation. With sustained efforts towards greening its operations, the Company has been able to keep its direct CO2 emission intensity at one of the lowest levels in the cement industry.

10. CORPORATE GOVERNANCE

Your Directors reaffirm their continued commitment to good corporate governance practices. During the year under review, Company was in compliance with the provisions relating to corporate governance as provided under the Securities Exchange Board of India (Listing

Obligations and Disclosure Requirements) Regulations, 2015 (as amended). The compliance report is provided in the Corporate Governance section of this Annual Report. The Auditor's Certificate on Corporate Governance is enclosed at Annexure - 1.

11. BUSINESS RESPONSIBILITY REPORTING

Company is also releasing Business Responsibility Report (BRR) as part of this Annual Report covering its compliances towards the Business Responsibility Principles enunciated by the Securities and Exchange

Board of India as required under Regulation 34(2) (f) of Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended).

12. CORPORATE SOCIAL RESPONSIBILITY

As part of its triple bottom-line approach to its business, Company has always considered the community as its key stakeholder. It believes that the community around its operations should also grow and prosper in the same manner as does its own business. Accordingly, Corporate Social Responsibility is an integral part of the Company's business philosophy. In order to oversee all its CSR initiatives and activities, the Company has constituted a Board level Committee - “Corporate Social and Business Responsibility Committee” (CSBR

Committee). The major thrust areas of the Company include healthcare, education, women empowerment, infrastructure support, integrated rural development, etc. which are aligned to the areas specified under Schedule VII to the Companies Act, 2013. The Annual Report on CSR activities of FY 2020-21 with requisite details in the specified format as required under Companies (Corporate Social Responsibility Policy) Rules, 2014 (as amended) is enclosed at Annexure-2 and forms part of this report. The CSR Policy of the Company may be accessed on website of the Company at link https://www.shreecement.com/uploads/cleanupload/ csr-policy.pdf.

13. SUBSIDIARY COMPANIES

The Company has following subsidiaries:

1. Shree Global FZE, Jebel Ali Free Zone, Emirate of Dubai, U.A.E. Wholly Owned Subsidiaries
2. Raipur Handling and Infrastructure Private Limited, Baloda Bazar, Chhattisgarh
3. Shree Enterprises Management Ltd, Dubai International Financial Centre, Emirate of Dubai, U.A.E.
4. Shree International Holding Ltd, Dubai International Financial Centre, Emirate of Dubai, U.A.E. Step-down Subsidiaries
5. Union Cement Company, PrJSC, Emirate of Ras- Al-Khaimah, U.A.E.
6. Union Cement Norcem Co. Ltd. LLC, Emirate of Ras-Al-Khaimah, U.A.E.
7 Shree Cement East Bengal Foundation Subsidiary Company (Incorporated under Section 8 of the Companies Act, 2013)

Audited financial statements of the subsidiaries of the Company are available on the website of the Company. The shareholders, who wish to receive a copy of Annual Accounts of the

Subsidiary Companies, may request the Company Secretary for the same. The policy for determining material subsidiaries as approved by the Board can be accessed on the website of the Company at link https://www.shreecement.com/uploads/ cleanupload/policy-determining-material-subsidiaries.pdf.

As required under Section 129(3) of the Companies Act, 2013 read with the Companies

(Accounts) Rules, 2014, Statement showing the salient features of the financial statements of the Subsidiary Companies in Form AOC-1, forms part of the Consolidated Financial Statements of

Company.

14. CONSOLIDATED FINANCIAL STATEMENTS

The Consolidated Financial Statements of the

Company are prepared as required in terms of provisions of Companies Act, 2013 and Securities

Exchange Board of India (Listing Obligations and

Disclosure Requirements) Regulations, 2015 (as amended) by following the applicable Accounting

Standards notified by the Ministry of Corporate Affairs and forms part of the Annual Report.

15. DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134(5) of the Companies Act, 2013, the Board of Directors, to the best of their knowledge and belief and according to the information and explanations obtained by them, state that:

• In the preparation of the annual accounts for the year ended March 31, 2021 the applicable accounting standards have been followed and there are no material departures from the same;

• They have selected such accounting policies, judgments and estimates that are reasonable and prudent and have applied them consistently so as to give a true and fair view of the state of affairs of the company as at March 31, 2021 and of the statement of Profit and Loss as well as Cash Flow of the company for the year ended on that date;

• Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

• The annual accounts have been prepared on a going concern basis;

• Necessary internal financial controls have been laid down by the Company and the same are commensurate with its size of operations and that they are adequate and were operating effectively; and

• Proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

16. PERFORMANCE EVALUATION OF BOARD, ITS COMMITTEES & INDIVIDUAL DIRECTORS

In terms of requirements of Securities Exchange

Board of India (Listing Obligations and Disclosure

Requirements) Regulations, 2015 (as amended) and provisions of Companies Act, 2013,

Nomination cum Remuneration Committee of the

Board of Directors of the Company specified the manner for effective evaluation of performance of Board, its Committees and Individual Directors.

Based on the same, the Board carried out annual evaluation of its own performance, performance of its Committees, Individual Directors including

Independent Directors during the year. Company had adopted the evaluation parameters as suggested by the Institute of Company Secretaries of India and Securities and Exchange Board of India with suitable changes from Company's perspective. The performance of the Board was evaluated by the Board on the basis of criteria such as Board composition and structure, effectiveness of Board processes, information flow to Board, functioning of the Board, etc. The performance of Committees was evaluated by the Board on the basis of criteria such as composition of Committees, effectiveness of Committee working, independence, etc. The Board evaluated the performance of individual Director on the basis of criteria such as attendance and contribution of Director at Board/Committee

Meetings, adherence to ethical standards and code of conduct of the Company, inter-personal relations with other Directors, meaningful and constructive contribution and inputs in the Board/

Committee meetings, etc.

For the above evaluation, the Board members completed questionnaires providing feedback on different parameters as already stated above including on performance of Board / Committees / Directors, engagement levels, independence of judgment and other criteria. This is followed with review and discussions at the level of Board.

The results of evaluation showed high level of commitment and engagement of Board, its various committees and working directors.

In a separate meeting of the Independent Directors, performance evaluation of Non-Independent Directors, the Board as a whole and performance evaluation of Chairman was carried out, taking into account the views of Executive and Non-Executive Directors. The quality, quantity and timeliness of flow of information between the Company Management and the Board which is necessary for the Board to effectively and reasonably perform their duties were also evaluated in the said meeting.

The Independent Directors well appreciated the functioning of the Board of Directors, Working

Directors as well as Committee of the Board. They were also highly satisfied with leadership role played by the Chairman.

Company had appointed an External Facilitator for the purpose of carrying out the performance evaluation in a fair and transparent manner.

17. DIRECTORS AND KEY MANAGERIAL PERSONNEL

Director retiring by rotation - In accordance with the provisions of the Companies Act, 2013 and Article 112 of the Articles of Association of the Company, Shri B. G. Bangur (DIN: 00244196),

Director of the Company will retire by rotation in the ensuing Annual General Meeting and being eligible, offers himself for re-appointment. Item seeking approval of members for the same is included in the Notice convening the 42nd Annual

General Meeting (AGM). The Board recommends the re-appointment of Shri B. G. Bangur.

Key Managerial Personnel - Shri H. M. Bangur (DIN: 00244329) was re-appointed as Managing

Director of the Company for a period of 5 years from April 1, 2016. His tenure as Managing Directors completed on March 31, 2021. The

Board of Directors of the Company in its meeting held on January 30, 2021, on the recommendation of Nomination cum Remuneration Committee and after evaluating his performance and considering the Company's growth under his stewardship, approved his reappointment as Managing Director of the Company for five years w.e.f. April 1, 2021 subject to approval of the members.

Profile and other information of the aforesaid Directors, as required under Regulation 36 of

Securities and Exchange Board of India (Listing

Obligations and Disclosure Requirements)

Regulations, 2015 (as amended) and Secretarial Standard – 2 forms part of the Notice convening the 42nd Annual General Meeting.

Independent Directors - During the year under review, Shri Sanjiv Krishnaji Shelgikar (DIN: 00094311) was re-appointed as Independent Director for second term of 5 years w.e.f. August 5, 2020.

In accordance with Section 149(7) of the

Companies Act, 2013 and Regulation 25(8) of the

Securities and Exchange Board of India (Listing

Obligations and Disclosure Requirements)

Regulations, 2015 (as amended), each

Independent Director has given a declaration to the Company confirming that he/she meets the criteria of independence as specified under Section 149(6) of the Companies Act, 2013 and

Securities and Exchange Board of India (Listing

Obligations and Disclosure Requirements) Regulations, 2015 (as amended).

18. FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS

In order to acquaint the new directors with the

Company, a detailed presentation is given to them at the time of their appointment which covers their role, duties and responsibilities, Company's strategy, business model, operations, markets, organisation structure, products, etc. A detailed presentation along similar lines is sent to existing Independent Directors every year to keep them apprised of the above details.

As part of Board discussions, presentation on performance of the Company is made to the

Board during its meeting(s). Plant visits are also arranged for Independent Directors from time-to-time for better understanding of the Company's operations. The details of such familiarisation programmes for Independent Directors are posted on the website of the Company and can be accessed at link https://www.shreecement.com/ investors/shareholder-information.

19. CONSERVATION OF ENERGY, TECHNOLOGY

ABSORPTION AND FOREIGN EXCHANGE

EARNINGS / OUTGO

The particulars relating to conservation of energy, technology absorption, foreign exchange earnings and outgo, as required to be disclosed under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules,

2014 is set out at Annexure - 3 which forms part of this report.

20. PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the

Companies (Appointment and Remuneration of

Managerial Personnel) Rules, 2014 are provided at

Annexure - 4.

In terms of the provisions of Section 197(12) of the Companies Act, 2013 read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel)

Rules, 2014, a statement showing the names of employees and other particulars of the top ten employees and employees drawing remuneration in excess of the limits as provided in the said rules are set out in the Board's Report as an addendum thereto. However, in terms of provisions of the first proviso to Section 136(1) of the Companies Act, 2013, the Annual Report is being sent to the members of the Company excluding the aforesaid information. The said information is available for inspection at the Registered Office of the

Company during working hours and any member interested in obtaining such information may write to the Company Secretary and the same will be furnished on request.

21. AUDITORS

I. Statutory Auditors

M/s. Gupta & Dua, Chartered Accountants (Firm Registration No. 003849N) were appointed as Statutory Auditors of the

Company, in the Annual General Meeting held on July 31, 2017, for a consecutive term of five years from the conclusion of 38 th Annual General Meeting till the Conclusion of 43rd Annual General Meeting. They have given their report on the Annual Financial Statements for Financial Year 2020-21.

The Audit Report does not contain any qualification, reservation or adverse remark.

II. Secretarial Auditors

The Board had appointed M/s. P. Pincha

& Associates, Company Secretaries as Secretarial Auditor of the Company to conduct Secretarial Audit for the Financial

Year 2020-21. They have submitted their report in prescribed format and the same is enclosed at Annexure - 5. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.

III. Cost Auditors

In terms of the provisions of Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Amendment Rules, 2014, the Board of

Directors of the Company appointed M/s. K. G. Goyal & Associates, Cost Accountants, Jaipur (Firm Registration No. 00024) to conduct the cost audit for the financial year ending March 31, 2022 at a remuneration as stated in the Notice convening the 42nd

Annual General Meeting of the members. As required under the Companies Act, 2013, the remuneration payable to cost auditors has to be placed before the Members at a general ratification. Hence, a resolution meetingfor ratification of remuneration by the seeking Members, payable to the Cost Auditors forms part of the Notice of the ensuing 42nd Annual

General Meeting.

The Cost Auditors are in process of conducting the audit of cost records for year 2020-21 and shall submit their report in due course.

22. OTHER DISCLOSURES

(a) Composition of Audit and Risk Management Committee: The Committee comprises of Shri O. P. Setia as Chairman, Shri R. L. Gaggar, Dr. Y. K. Alagh, Shri Nitin

Desai, Shri Shreekant Somany and Shri Sanjiv

Krishnaji Shelgikar as other Members. More details are given in the Corporate Governance

Report. All the recommendations made by the Audit and Risk Management Committee were accepted by the Board.

(b) Details of Meetings of Board and its Committees: The Board of Directors of your Company met 4 times during the year to deliberate on various matters. The meetings were held on May 8, 2020, August 10, 2020, November 11, 2020 and January 30, 2021. Further, details are provided in the

Corporate Governance Report forming part of this Annual Report. The intervening gap between the meetings was within the period prescribed under the Companies

Act, 2013 and the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended).

(c) Annual Return: In terms of Section 92(3) of the Companies Act, 2013 and Rule 12 of the Companies (Management and

Administration) Rules, 2014, the Annual Return of the Company is available on the website of the Company at link https://www. shreecement.com/investors/shareholder-information.

(d) Particulars of Loans, Guarantees or Investments: Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Act read with the Companies (Meetings of Board and its

Powers) Rules, 2014 are given in Notes to the standalone financial statements.

(e) Particulars of Contracts or Arrangements with Related Parties: All Related Party

Transactions during the financial year

2020-21 were on arm's length basis and in ordinary course of business. They were all in compliance with the applicable provisions of the Companies Act, 2013 and the

Securities Exchange Board of India (Listing

Obligations and Disclosure Requirements) Regulations, 2015 (as amended). All such transactions are placed before the Audit and

Risk Management Committee for review/ approval. The necessary omnibus approvals have been obtained from Audit and Risk

Management Committee wherever required.

There were no material Related Party Contract/Arrangement/Transactions made by the Company during the year that would have required Shareholders' approval under provisions of Section 188 of the Companies

Act, 2013 or of the Securities Exchange

Board of India (Listing Obligations and

Disclosure Requirements) Regulations, 2015 (as amended). The Company has adopted a Related Party Transactions Policy duly approved by the Board, which is uploaded on the Company's website & may be accessed at link https://www.shreecement.com/uploads/ cleanupload/related-party-transaction-policy. pdf.

Further, in terms of Securities and Exchange Board of India (Listing Obligations and

Disclosure Requirements) (Amendment)

Regulations, 2018, the transactions with person/entity belonging to the promoter/ promoter group holding 10% or more shareholding in the Company are as under:

Name of the Entity % Holding in the Company Amount Rs.( Cr.) Nature of Transaction
Shree Capital 24.90% 0.27 Payment of
Services Ltd. Office Rent

(f) Deposits from Public: The Company has not accepted any deposits from public covered under Chapter V of the Companies Act, 2013 during the year and as such, no amount on account of principal or interest on deposits from public was outstanding.

(g) Vigil Mechanism/ Whistle Blower Policy: The Company has adopted a whistle blower policy and has established the necessary vigil mechanism for employees and Directors to report concerns about unethical behaviour. The policy provides for adequate safeguards against victimisation of employees who avail of the mechanism and also provides for direct access to the Chairman of the Audit and Risk

Management Committee. The whistle blower policy may be accessed on the website of the

Company at link https://www.shreecement. com/uploads/cleanupload/whistleblower-policy.pdf.

(h) Remuneration Policy: Company firmly believes in nurturing a people friendly environment which is geared to drive the organisation towards high and sustainable growth. Each and every personnel working with Company strives to achieve the Company's vision of being the best in the industry. Its remuneration policy is therefore designed to achieve this vision.

The policy has been approved by the Board on the recommendation of Nomination cum Remuneration Committee. The policy is applicable to Directors, Key Managerial Personnel and other employees. The policy provides that while nominating appointment of a Director, the Nomination cum Remuneration Committee shall consider the level and composition of remuneration which is reasonable and sufficient to attract, retain and motivate the Directors for delivering high performance. The Remuneration Policy can be accessed on the website of the Company at link https://www.shreecement.com/ uploads/cleanupload/remuneration-policy. pdf.

(i) Policy on Prevention, Prohibition and

Redressal of Sexual Harassment at

Workplace: The Company has complied with the provisions of the constitution of the Internal Committee under the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act,

2013 and has adopted a Policy on Prevention,

Prohibition and Redressal of Sexual Harassment at the Workplace, in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made thereunder. Company has formed an ‘Internal Complaints Committee' for prevention & redressal of sexual harassment at workplace.

The Committee has four members and is chaired by a senior woman member of the organisation. The Company has not received any complaint of sexual harassment during the financial year 2020-21.

(j) Material Changes after the Close of

Financial Year: There have been no material changes and commitments which have occurred after the close of the year till the date of this report, affecting the financial position of the Company.

(k) Significant and Material Orders passed by the Regulators or Courts: No significant material orders have been passed by the Regulators or Courts or Tribunals which would impact the going concern status of the

Company and its future operations.

(l) Maintenance of Cost Records: Company is required to maintain cost records as specified by the Central Government under subsection (1) of section 148 of the Companies

Act, 2013, accordingly such accounts and records are made and maintained by the

Company.

(m) Compliance with Secretarial Standards:

Company has complied with the Secretarial Standards issued by Institute of Companies

Secretaries of India (ICSI) on Board Meetings (SS- 1) and General Meetings (SS-2).

23. ACKNOWLEDGEMENT

The Directors take this opportunity to express their deep sense of gratitude to its lenders,

Central and State Governments and the local authorities for their continued co-operation and support. They also would like to place on record their sincere appreciation for the commitment, hard work and high engagement level of every member of the Shree family without which the exemplary performance of the Company year after year, would not have been possible. The Directors would also like to thank various stakeholders of the Company including customers, dealers, supplies, transporters, advisors, local community, etc. for their continued committed engagement with the Company. The Directors would also like to thank the Members of the Company for confidence and trust reposed in them.

For and on behalf of the Board

B. G. Bangur

Chairman

DIN: 00244196

Place: Dubai Date : May 21, 2021

#MDEnd#

   

Shree Cement Ltd Company Background

B G BangurH M Bangur
Incorporation Year1979
Registered OfficeBangur Nagar,P B No 33 Beawar
Ajmer,Rajasthan-305901
Telephone91-1462-228101-06/228101,Managing Director
Fax91-1462-228117/228119/228117
Company SecretaryS S Khandelwal
AuditorGupta & Dua
Face Value10
Market Lot1
ListingBSE,MSEI ,NSE,
RegistrarLink Intime India Pvt Ltd
C-101 247 Park ,L B S Marg ,Vikhroli West ,Mumbai-400083

Shree Cement Ltd Company Management

Director NameDirector DesignationYear
B G Bangur Chairman (Non-Executive) 2021
H M Bangur Managing Director 2021
R L Gaggar Non-Exec. & Independent Dir. 2021
Shreekant Somany Non-Exec. & Independent Dir. 2021
Y K Alagh Non-Exec. & Independent Dir. 2021
Nitin Desai Non-Exec. & Independent Dir. 2021
S S Khandelwal Company Secretary 2021
Prashant Bangur Joint Managing Director 2021
Sanjiv Krishnaji Shelgikar Non-Exec. & Independent Dir. 2021
Prakash Narayan Chhangani Whole-time Director 2021
Uma Ghurka Non-Exec. & Independent Dir. 2021

Shree Cement Ltd Listing Information

Listing Information
NIFTY
BSE_500
BSE_100
BSE_200
BSEDOLLEX
CNX500
CNX100
CNXINFRAST
CNX200
CNXCOMMODI
BSECARBONE
NFT100EQWT
BSEALLCAP
BSELARGECA
BSEMETERIA
SENSNEXT50
ESG100
LMI250
BSEDSI
BSE100LTMC
NFTYLM250
NFTY200M30
NF500M5025

Shree Cement Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Cement MT 00010856.26
Power Traded NA 000515.59
Clinker MT 000267.31
Other Operating Revenues NA 000264.84
Rebate & Discounts NA 0000
Internal Consumption NA 0000
Thermal Power MW 0000
Thermal Power Uni0000
Excise Duty NA 0000

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