Ambuja Cement AR 2021

Strength and Sustainability
for a green future.
AMBUJA CEMENTS LIMITED

Integrated Annual Report 2021
Give a man orders
and he will do the
task reasonably well.
But let him set his
own targets, give him
freedom and authority,
and his task becomes a
personal mission:
Contents CREATING
VALUE FOR OUR
STAKEHOLDERS
Corporate overview
About the report 02
Progress report 2021 04
Chairman’s communiqué 08
Vision 10
Mission 11
About the Company 12
Investment case 14
Managing Director’s insight 16
Board of Directors 18
Leadership team 20
Creating value for our stakeholders

Value creation process 22 Read more Page 22
Business model 24
Strategic priorities and progress 26
Sustainability strategy 28
Trends and topics impacting value creation TRENDS AND TOPICS

Operating context 30 IMPACTING VALUE
Stakeholder engagement 32
Materiality assessment 34
CREATION
Risk management 38
Capital-wise performance
Financial capital 42
Manufactured capital 48
Intellectual capital 58
Natural capital 64
Social capital 76
Relationship capital 86
Human capital 94
Governance 104
Awards and Recognition 106
Statutory Reports
Management Discussion and Analysis 120
Directors’ Report 134 Read more Page 30
Corporate Governance Report 154
Financial Statements
Standalone 180
Consolidated 260
CAPITAL-WISE
Notice 349 PERFORMANCE
Click here for Online Integrated report including the

Notice of Annual General Meeting Secretarial Report and
LISTING
Bombay Stock Exchange (Scrip: 500425)
National Stock Exchange (Scrip: AMBUJACEM)
Market Cap: `74,968 crore (as on December 31, 2021) Read more Page 42
About the report
INTEGRATED REPORT 2021 REPORTING SCOPE, BOUNDARY AND THE COMPANY’S VALUE CHAIN
Our second Integrated Report reflects our progress on The Integrated Report 2021 covers information on our
an integrated management journey and reinforces our business segments in India, along with associated activities
integrated thinking to forge a stronger connection between that enable short, medium and long-term value creation.
business, sustainability and finance. We also build on our The report contains a detailed reference to sustainability
stakeholders’ feedback to improve our reports consistently. initiatives undertaken by Ambuja Cement to address the
material issues identified in an extensive stakeholder
This report includes information related to the value creation engagement and due diligence exercise carried out during
process of Ambuja Cement and outlines the Company’s early 2018. The engagement exercise included all relevant
progress on its long-term strategies, governance, stakeholder groups and the topic boundary was defined with
performance, and its efforts towards sustainability. high-importance material topics. The aspect boundaries
and content have been defined using reporting principles
FRAMEWORKS, GUIDELINES AND STANDARDS prescribed in the GRI Standards. The report covers all
The report is prepared as per the framework prescribed operations and businesses of Ambuja Cement that fall under
by the International Integrated Reporting Council (IIRC). its direct operational control. However, we welcome our
It also contains performance indicators in line with the readers’ valuable feedback to further enrich the quality of
Global Reporting Initiative (GRI) Standards ‘In Accordance our report.
– Comprehensive’ criteria. It measures our performance
against the United Nations Sustainable Development Goals
(UN SDGs) as well.
COMPANY VALUE CHAIN
Input Logistics Manufacturing Logistics Marketing Services-B2C Use Disposal
Sections of this Integrated Report also comply with the

requirements stated in the Companies Act, 2013 (including Exclusion: The subsidiaries and JVs, and channel partner/
the rules made thereunder), the Indian Accounting dealer networks beyond our direct operational control.
Standards, the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) ASSURANCE STATEMENT
Regulations, 2015 and the Secretarial Standards issued by The report is externally assured as per AA 1000 Assurance
the Institute of Company Secretaries of India. We encourage Standard. The organisation, employees and the assurance
our stakeholders to read them in conjunction with the providers are independent agencies.
contents.
Third-party assurance statement
We also endorse various economic, environmental and The non-financial disclosures of Ambuja Cements Limited’s
social charters, principles or initiatives. Integrated Report have been assured by TUV India Private
Limited. The assurance report issued by TUV India Private
Limited can be found on 116.
RATINGS AND STANDARDS
2 Ambuja Cements Limited Integrated Annual Report 2021

Corporate Overview Statutory Reports Financial Statements
OUR STAKEHOLDERS MATERIAL MATTERS

We engage periodically with our key stakeholders to understand their needs and This report provides information on
interests, and align our strategies accordingly. matters that we believe could have a
significant influence on our ability to
Key stakeholders create and sustain value over the short,
medium and long term.
Shareholders
Dealers
and investors Read more Page 34
SUSTAINABILITY TARGET
Suppliers
Customers Sustainability remains our key focus
area and we are continuously working
towards addressing challenges
around issues of climate and energy,
environment, circular economy and
Employees Community
community. We have developed carbon
emissions reduction targets for 2030,
which are validated by the Science
Based Targets initiative (SBTi), to limit
global warming below 2 degree Celsius.
Construction Industry
professionals associations
Read more Page 28
Read more Page 32
OUR CAPITALS
Our capitals include the key inputs and relationships we require to carry out our business.
Financial capital Social capital

Read more Page 44 Read more Page 78
Manufactured capital Relationship capital

Intellectual capital Human capital
Natural capital
Read more Page 66
Ambuja Cements Limited Integrated Annual Report 2021 3

Progress report 2021
Financial
Net sales (K crore) Operating EBITDA (K crore) Profit after tax (K crore)*
13,794 3,207 2,081

+23% +21% +16%
EBITDA margin (%) Return on average capital PROPOSED DIVIDEND per share (K)
23.3 6.30
employed (%)
13.10
-40 bps +160 bps
Read more Page 42
Operational
Cement production (MnT) Capacity utilisation (%) Average realisation per tonne (K)
25.89 86 5,105
+16% +3.5%
Share of sustainable New capacity added (MTPA)
1.8
products in total sales (%)
89.5
Read more Page 48

People, health and safety

New employees added (%) Safe onsite man-hours Reduction in LTIFR (/million hours)
342* 0.21
(million)
101.8
*Of which 9% are women
-24%
Employee training Reduction in total onsite
man-hours recordable injury (%)
8 21
Read more Page 94
Sustainability
Water positivity Clinker factor (%) Plastic negative
8X 63.00 3.5X
+150 BPS
Waste consumption (MT) People impacted through Specific net CO2 emission
8.8
community intervention (kg CO2 per tonne of cementitious
programmes (million) materials)
2.80 528.8
Read more Page 64

Strength and
sustainability
for a green future
GREENING GROWTH IS THE ONLY WAY TO BUILD A SUSTAINABLE FUTURE. GUIDED BY THE
BELIEF AND ALIGNED WITH THE GROUP STRATEGY OF ‘ACCELERATING GREEN GROWTH’,
WE ARE CHANGING THE STORY OF FINDING SUSTAINABLE SOLUTIONS. ON ONE HAND, WE
ARE EXPANDING OUR CAPACITIES TO ADDRESS THE GROWING NEEDS OF A FAST GROWING
ECONOMY. ON THE OTHER, WE ARE FURTHER IMPROVING OUR OPERATIONAL EFFICIENCY
WHILE CONTINUOUSLY LOWERING OUR CARBON FOOTPRINT.

At Ambuja Cement, we have deployed share of green power in total energy

institutionalised mechanisms to consumption, we have laid out a clear
monitor our environmental risks. As glide path to achieving our ambitious
part of India’s construction materials sustainability targets. Our 2030 carbon
ecosystem, we are driving the emission reduction targets have been
industry discourse around developing validated by the Science Based Targets
sustainable products and solutions that initiative (SBTi). Our 2030 carbon
contribute significantly to the global emission reduction targets have been
fight against climate change. validated by the Science Based Targets
initiative (SBTi), adding more credence
Deploying clean technology, converting to our concerted efforts to build a
industrial wastes to raw materials, stronger and sustainable future.
conserving energy and increasing the

Chairman’s communiqué
Towards a
DEAR STAKEHOLDERS,
At the onset, I would like to express
my heartfelt gratitude to our frontline
workers, whose untiring efforts at
sustainable
ensuring the safety and well-being of
our employees and communities have
allowed us to hold our heads high,
and continue our operations without
disruptions. Despite the challenges,
future for all

we have been able to create sustained
value for our stakeholders, and, as
an industry frontrunner, retain our
leadership position through improved
production, cost and distribution
efficiency, and sustainability initiatives.
For the cement industry in general,

2021 started on a robust note, with
strong signs of demand recovery.
However, the second wave of the
pandemic disrupted the market, led by
localised lockdowns and a dampened
consumer sentiment. Further, the
unprecedented hike in fuel prices
created cost pressures. Demand was
particularly impacted during the fourth
quarter of 2021 by unexpected rains in
different parts of the country, a ban on
construction activities in the National
Capital Region (NCR), and shortage of
labour and sand.
Notwithstanding these challenges,

your Company reported one of the
best performances in the recent
past, registering substantial growth
across both financial and non-financial
metrics. I join the Board in thanking
the team for demonstrating resilience
and agility and delivering on our set
objectives. We registered a volume
growth of 17% year-on-year. We
strengthened our revenues by 23%
while EBITDA and profit after tax
reported a growth of 21% and 16%,
respectively, over the previous year.
OUR MOMENT OF PRIDE

Equally noteworthy are the significant
interventions made by the Ambuja
Cement Foundation (ACF), our
CSR arm, in tackling the fallout
of the second wave on the health
infrastructure and community
well-being. Having meticulously
mapped locations that saw a surge
in cases, and thereby areas which
were in critical need of oxygen, ACF
8
went about methodically to distribute cement demand. The recovery manufacturing in the country
oxygen concentrators and cylinders. in the real estate sector, backed environmentally sustainable while
Not stopping at that, we set up oxygen by historically low interest rates, creating a safe work environment for
plants at Dadri and Ambujanagar. also augurs well for the industry. our colleagues across our plants.
ACF also trained community volunteers Furthermore, the e-commerce
as CoviSainiks to provide help at boom, which is spurring demand for OUR LARGER COMMITMENT
hospitals and community clinics. We warehouse space, data centres and Since inception, we have built
actively participated in furthering the energy storage systems, will attract trust in Brand Ambuja by ensuring
government’s immunisation mission, more investment as they have been consistency in quality and reliability
with ACF pitching in to help vaccinate granted infrastructure status. of service. This is perhaps the
more than 2.7 million community most valuable asset we have
members. We are well-braced to meet the created over the years, and this
expanding demand. As part of our is what we hold most dear to
This was also a remarkable year in growth strategy, we are investing in the us. We pledge to strengthen this
terms of our commitment towards cement grinding expansion plan of 7 trust by not only delivering on our
creating a sustainable future for all. MTPA across locations, including in a promise of providing our customers
Following the lead of the Holcim Group, greenfield project at Barh, Bihar. This innovative and sustainable building
we developed and had our 2030 carbon will help us move closer to our target of solutions, but also ensuring that
emission reduction targets validated achieving 50 MTPA capacity (presently the construction sector takes the
by the Science Based Targets initiative at 31.45 MTPA) in the near future. lead in building a stronger and
(SBTi). Further, we are increasing our presence greener India. Notwithstanding the
in existing and new markets through temporary headwinds the industry
At Ambuja, we have consistently aimed our strong distribution network and may face, we are strongly committed
at including sustainability in all our dealer partnerships. to this goal. Together with ACC
operational and project planning. This Limited, we have begun cleaning
year as well, we continued to reduce OUR FOCUS AREAS India’s river waters of plastic. The
our carbon footprint by lowering We aim to grow sustainably and coming days will see us explore such
the clinker factor, reducing thermal meaningfully. This year saw us initiatives more through partnerships
and electrical energy intensity, while launch our new strategy aligned with like-minded institutions and
implementing Waste Heat Recovery with the Holcim Group’s strategy individuals while continuing to drive
Systems at our plants and increasing of ‘Accelerating Green Growth’. our CSR efforts towards promoting
our use of and capacity of generating Our own strategy to expand market inclusive development.
renewable energy. presence while being one of the most
efficient cement manufacturers with On behalf of the Board of Directors,
At the same time, we remain committed sustainability at the core of everything I would like to thank our
to catering to the evolving requirements we do, mirrors the Group strategy. stakeholders for their continued
of our customers, enabling them to Our belief that green growth is the trust in us. We will continue to draw
build more durable and sustainable only way to grow sustainably is not inspiration from your support to take
structures with materials that are made new. Environmental consciousness on new challenges.
sustainably. is good for both the planet and for
business. Our own experience over Warm regards,
OPPORTUNITIES AT HAND the years has established this beyond
We look at the future with unflagging doubt. Our sustainability vision has
enthusiasm. India continues to had a direct beneficial impact on the
remain the second-largest cement bottom line, helping the premiumisation
producer in the world. The industry of our offering and enhancement
offers significant headroom for growth of our product mix with sustainably N.S. Sekhsaria
aided by low per capita consumption manufactured products. Chairman and Principal Founder
and a massive government push for
infrastructure and affordable housing. We are consolidating our sustainability
The Union Budget 2022-23 saw a leadership by investing in our Plants of
significant increase in proposed Tomorrow program that will accelerate
capital expenditure, vindicating the our transition to digital plants. This
government’s sustained focus on path-breaking project will lead to
infrastructure. The Pradhan Mantri transformative outcomes not just in
Awas Yojana’s target of 8 million terms of operational and financial
houses by 2023, will further push gains but also in making cement

Vision
To be the most
sustainable
and competitive
company in our
industry
Mission
DELIGHTED INSPIRED
CUSTOMERS EMPLOYEES
ENLIGHTENED ENERGISED
PARTNERS SOCIETY
LOYAL HEALTHY
SHAREHOLDERS ENVIRONMENT

About Ambuja Cement
Leading with
sustainability
and innovation
Established in 1983, Ambuja Cement is India’s foremost cement
manufacturer and an indispensable part of aspirational India’s growth story.
With our scale, reach, ingenuity and I Can spirit, we have transformed the
face of the industry and continue to do so with our emphasis on responsible
manufacturing and sustainable development.
Our six integrated manufacturing units, 70,000+ people across 70+ countries We are an industry leader in
eight strategically located grinding in the world. The Global Depositary sustainability practices including
units and a network of more than Receipts (GRDs) issued by Ambuja responsible use of materials,
50,000 channel partners help us cater Cement are listed on the Luxembourg continuous reduction in emissions and
to the northern, western, central and Stock Exchange. a greater focus on circular economy.
eastern markets of the country and Our robust policies help us uphold
continue our growth momentum. Our superior quality products are the highest standards of corporate
targeted at providing hassle-free home governance. Our Corporate Social
Our majority shareholder is building experiences for our customers Responsibility (CSR) arm, the Ambuja
Switzerland-based Holcim, a global which, in turn, helps build durable Cement Foundation, works tirelessly in
leader in innovation and sustainable relationships. developing the communities around our
building solutions, operating with plants.
A QUICK GLANCE
Integrated Grinding Cumulative manufacturing

manufacturing units units capacity (MTPA)
6 8 31.45
Bulk cement terminals Employees Share of blended cement
5 4,723 >89%
As on December 31, 2021

CORPORATE STRUCTURE
Holcim Ltd. Ambuja Cement Foundation (ACF)

Parent company
Developing communities
www.holcim.com in 50 districts
across 11 states
Global Cement
Excellence
Global expertise in
waste management
PRESENCE
Darlaghat
Ropar
Nalagarh
Bhatinda
Roorkee Farakka
Rabriyawas
Marwar Dadri
Surat
Region-wise revenue share
24 20
Bhatapara
Muldwarka Sankrail
2021 (%)
Ambujanagar
Panvel
Maratha
Mumbai 21 35
23 22
Mangalore
2020 (%)
Kochi
23 32
Key Regions
Integrated cement plants Grinding units Bulk cement terminals North-west North East West-south
Head/Corporate office Registered office

investment case
Setting us apart
Solid macro and market fundamentals
− Stable government and progressive
economic policies to drive strong
Gross Domestic Product (GDP)
growth of ~7.0% per annum in
medium to long term
− India is a high growth attractive
cement market, with a low annual
per capita consumption of ~242 kg
against a global average of 525 kg
− Rising urbanisation is expected to
reach 40% by 2030 – additional
113 million people in cities by
2030 (Source: Fitch Solutions;
United Nations report on World
Urbanization Prospects 2018)
− Indian cement industry scores high
on sustainability metrics
India’s per capita cement consumption reflects strong headroom for

growth Per capita cement consumption (kg)
1600
1050
875
745
385
305
Brazil 255
242
Vietnam
Russia
Korea
China
Egypt
India
USA
Source: CRISIL Research

Robust financials Sustainability leadership

− Superior operating performance − Enhancing share of green power in
has helped strengthen financial overall portfolio through significant
performance investments in Waste Heat Recovery
System (WHRS) and solar power
− Net sales for the year stood at
plants
`13,794 crore while operating
EBITDA stood at `3,207 crore − Aligned with Holcim’s sustainability
commitment of becoming a Net
− Reported a strong RoCE of 13.10%
Zero company with focus on
− Debt-free balance sheet with cash climate change, water consumption,
and liquid investments of circular economy and community
`3,985 crore development
− `1,251 crore proposed dividend − Developed and validated our 2030
for the year carbon emission reduction targets
by the Science Based Targets
Return on capital employed (%) initiative (SBTi)
2021 13.1 − The SBTi has classified our scope
2020 11.5 1 and 2 target ambition and has
determined that it is in line with a
2019 9.2
well-below 2°C trajectory.
2018 7.6
Water consumed in cement operations

and recycled (Mn m3)
2021 16.2
2020 13
2019 14.5
2018 14.8
Expansion road map Enriching product Enhancing

in place portfolio efficiency
− Commissioning of Marwar integrated − Our wide portfolio of trusted brands − Increasing operational efficiency
plant helped increase our clinker spans across diverse cement and through the implementation of digital
capacity by 3 MTPA and cement concrete categories comprising tools and automation across plants
manufacturing by 1.8 MTPA more than 89% of blended cements;
− Leveraging Master Supply
suited to various climatic conditions,
− Brownfield expansion of 1.5 MTPA at Agreement with ACC and improving
the products meet the diverse needs
Ropar in Punjab by 2023 profitability
of our customers
− Further expansions are planned − Undertaking important cost
− Extended the portfolio to include
in Eastern and Western India with optimisation initiatives in the areas
other sustainable and innovative
various debottlenecking initiatives to of captive fuel security and rail
building materials
reach a capacity of 50 mn tonnes in infrastructure
mid-term
− Use of technology in logistics
12%
Share of premium
helping optimise operating cost
products as percentage
EBITDA per tonne (`)
of total sales 2021 1,187
2020 1,168
2019 893
2018 780

Managing Director’s insight
Demonstrating the
strength of our resolve
favourable product mix. Operating EBIT
stood at `2,656 crore, up 25% y-o-y,
while profit after tax rose 16% y-o-y to
`2,081 crore. However, margins came
under pressure due to the increase
in input costs. The operating EBITDA
margin declined 40 bps while net profit
margin declined 90 bps.
STRONGER FOCUS ON PRIORITY AREAS

Despite restricted mobility of
manpower and materials, the on-
time commissioning of our hi-tech
Marwar plant in September 2021
speaks volumes about the grit and
determination of our people. The
resilience demonstrated by the team is
the true embodiment of our I Can spirit.
The ‘Green’ plant is key to our strategic
plan of strengthening our competitive
position, especially in northern Indian
markets, and managing operations with
improved efficiency.
Digitalisation remains our key focus

DEAR STAKEHOLDERS, area and will continue to shape the
The year 2021 was a study in contrast way we operate – from running the
The resilience for the Indian economy and the cement plants and managing logistics and
industry. While the government’s supply chain, to market and customer
demonstrated by continued policy push for infrastructure connect. Our objective is to effectively
the team is the true and affordable housing bode well predict demand fluctuations, schedule
for a strong rebound in demand, the maintenance, improve logistics and
embodiment of our I onset of a more severe second wave transportation capabilities. Under
Can spirit. The ‘Green’ in the second quarter, the extended the Plants of Tomorrow initiative,
monsoon and rising input cost in the being implemented across units,
plant at Marwar is key fourth quarter, partially offset the gains. we expect to enhance operational
to our strategic plan The robust rollout of the world’s largest efficiency significantly in comparison to
immunisation programme provided a conventional cement plants.
of strengthening our boost to sentiments.
competitive position, STRENGTH AND SUSTAINABILITY
A YEAR OF ALL-ROUND PERFORMANCE I am particularly happy to report a
especially in Northern The volatile external environment major development on the ESG front.
Indian markets, and notwithstanding, we delivered a We became the first cement company
robust set of numbers for 2021 across globally to make it to the ‘A’ list of CDP
managing operations operational and financial metrics. We 2021 for water security, a testimony
with improved clocked our highest ever annual sales to our water stewardship. We intend
volume. Net sales grew 23% y-o-y to become a carbon-neutral building
efficiency to `13,794 crore, further aided by a materials and construction solutions

business by 2050. Accordingly, we in Farakka and Sankrail (existing units),

are investing in a whole range of and Barh (new greenfield location). The
sustainability initiatives – from Waste estimated capex for these projects is
Heat Recovery System (WHRS) `3,500 crore.
I am particularly
to clinker factor reduction, energy happy to report a
efficiency (thermal and electrical), REWRITING THE STORY OF SUSTAINABILITY
and the use of renewable energy, Under Holcim, one of the largest
major development
especially waste-derived resources/ cement manufacturing groups in the on the ESG front.
alternative fuels. The positive changes world, we believe that tomorrow’s
made through our sustainability efforts solutions cannot be designed on
We became the first
positioned us 5th in the Dow Jones yesterday’s problem statements. To cement company
Sustainability Index (DJSI) 2021 among mainstream sustainability and effect
construction materials companies impactful change for the benefit of
globally to make it to
globally. the planet and its people, we have the ‘A’ list of CDP 2021
launched the ‘Change The Story’
During the year, we had our 2030 platform. It showcases technology-led
for water security, a
carbon emission reduction targets solutions that take us closer to realising testimony to our water
validated by the Science Based Targets our vision of a better tomorrow.
initiative (SBTi) and it is in line with a
stewardship
‘well-below’ 2°C trajectory. What this To begin with, we have taken the
means is that we have committed to responsibility of addressing the
reducing our Scope 1 and Scope 2 pressing challenge of plastic pollution
GHG emissions by 21% per tonne of in India’s rivers. Using the ‘bubble
cementitious materials by 2030 from curtain’ technology, the pilot project at
the 2020 base year. Yamuna River (Mantola canal) in Agra
is expected to remove 2,400 tonnes of
It is imperative for us to push the plastic waste. Such bubble barriers can
decarbonisation agenda. Today, we be extended to other rivers across the
have the knowledge and the means country.
to combat climate change. It is no
longer about what we can do, but what OPTIMISM
we must do. At Ambuja, that is what At Ambuja, we will continue to focus on
we are doing. From mining for raw resource conservation, utilising green/
materials to shipping finished products, clean energy sources, driving energy
we are approaching every part of our efficiency in all our plants and building
operations from the sustainability lens. an inclusive and equitable world. We
This is because we believe in profit are on the cusp of exciting change,
and purpose, not profit or purpose. and we are happy to play our role in
Business growth and sustainability can strengthening the nation’s ambitions
go together when there is consensus while contributing to the concerted
and commitment across the company, global efforts to create a sustainable
the industry, and society at large. We future. I thank you all for being part of
are targeting to achieve that. this exciting journey.
UNVEILING THE NEXT PHASE OF EXPANSION Warm regards,

We are extremely upbeat about
the prospects of the Indian cement
industry. The industry is coming out of
a challenging phase triggered by the
pandemic, but we expect to see a lot
of tailwinds going forward, particularly Neeraj Akhoury
from the housing sector and public Managing Director and CEO
spending on infrastructure. The long-
term industry fundamentals remain
unchanged, and cement will continue
to play a pivotal role in shaping the
India growth story. To better capitalise
on the emerging growth opportunities,
we have embarked on our next phase
of capacity expansion with a
3.2 MTPA brownfield clinker capacity
in Bhatapara and cement grinding
units with a total capacity of 7 MTPA

Board of Directors
MR. N.S. SEKHSARIA MR. JAN JENISCH MR. NASSER MUNJEE

Chairman and Principal Founder Vice Chairman Independent Director
C M M C C M M M M
MR. RAJENDRA CHITALE MR. SHAILESH HARIBHAKTI DR. OMKAR GOSWAMI

Independent Director Independent Director Independent Director
C C M M M M M M M M M
MS. SHIKHA SHARMA MR. CHRISTOF HASSIG MR. MARTIN KRIEGNER

Independent Director Director Director
M M M M M C

MS. THEN HWEE TAN MR. MAHENDRA KUMAR SHARMA MR. RANJIT G. SHAHANI
Director Director Director
M M M C M
MR. PRAVEEN KUMAR MOLRI MR. RAMANATHAN MUTHU MR. NEERAJ AKHOURY
Director Director Managing Director & CEO
M M M M M
Audit Committee
Nomination & Remuneration Committee
Stakeholders’ Relationship Committee
CSR Committee
Risk Management Committee
Compliance Committee
Sustainability Committee
C Chairman
M Member

leadership team
MR. NEERAJ AKHOURY

Managing Director & Chief Executive Officer
MS. RAJANI KESARI MR. SUKURU RAMARAO MR. RAJIV KUMAR

Chief Financial Officer Chief Manufacturing Officer Chief Commercial Officer
MR. SURESH RATHI MR. RAHUL MAITRA MR. MANOJ CHHURA

Head - Raw Material, Fuel and Logistics Chief Human Resource Officer Chief Procurement Officer

Living the spirit

of
New connections When a stream of
discovered. What old positivity flows, every
routes overlooked. drop matters
We paused to prepare We built a Darpan (mirror)

better. And then surged that reflects capabilities
ahead to achieve.
We built a shield that let’s We need to keep

only smiles seep through some silos intact, with
teamwork
Concrete steps to reduce

carbon footprint
Read more Page 64

value creation process
The strength of our vision, mission and sound value system support our value
creation process. An efficient leveraging of our capitals enable us to create
enduring value for our stakeholders.
GROWING TO THE BENEFIT OF ALL
Operating
context
The environment in which we
operate impacts our ability to
create stakeholder value Risk and
opportunity
Read more Page 30 management
Stakeholder
engagement Governance
We have a wide range of Our governance
stakeholders, participating in our framework supports our Our material
shared value creation through value creation process, issues create
a range of engagements and ensuring our business opportunities or
relationships decisions are aligned with restrict the ability
our vision, mission, values of our
and strategic priorities value creation
Read more Page 32
while maintaining ethics,
integrity and transparency
Risks and
opportunities
The future presents risks
and opportunities, impacting
the delivery of value to our Resource
stakeholders allocation
and
Read more Page 38 trade-offs

THE VALUE WE CREATE
For our customers

− High quality products and
solutions aiding robust
construction
− Timely delivery
Performance
management
For our employees
− Providing employment and
opportunities
Strategic priorities for growth and development
Our strategic priorities − Diverse and inclusive work
outline the way we intend to environment,
achieve our medium- and free of discrimination
long-term goals
Read more Page 26 For our communities

− Contribution to society
through engagement with
Business model
communities where we
Our robust business model operate
with an integrated value
− Responsible management
chain helps us respond
of impact of our operations
to dynamic business
on the environment
environment with agility
Read more Page 24

For our investors
− Sustainable returns to our
Sustainability pillars shareholders
The sustainability pillars − Timely debt servicing
underpin our strategy and
help us in operating in a
responsible manner For our supplier partners
− Boosting local economy
Read more Page 28
through localised
procurement
− Collaboration and
Review partnering opportunities
and adopt
For the government

− Contribution to the
government exchequer
through timely tax payment

business model
INPUT CAPITALS PROCESS
Financial capital
Vision Mission
22,207 47 Delighted
To be the
To create Customers
Net worth Debt most sustainable
value
(` crore) (` crore) and competitive
for all Inspired
company in our
industry Employees
Manufactured capital Collaboration and Trust

6 8 5 5
Customers
Integrated Grinding Bulk cement Captive
plants units terminals power plants
Results
Agility and
simplicity
Intellectual capital
Continuous investments Culture
in innovation
Integrity
Business Activities
Natural capital Inbound Logistics

1,474 58 13.6
Energy Specific water Capital spend on Ensuring
intensity consumption environment (` crore) raw material
(MWh/Cr) (lit/t cement) security Mining
Operations Cement
Grinding
Social capital and Storage
64.41 Reinitiating
CSR spend (` crore) demand
Outbound Logistics
Relationship capital Marketing and Sales
55,000 Services
Active channel
partners Long-term strategic objectives
Human capital
Accelerating Expanding solutions
4,723 678 8 growth and products
On-roll Employee benefit Total hour of employee
employees expenditure (` crore) trainings
(hours/employee)
EXTERNAL DRIVERS Economic growth Government initiatives Competition

OUTPUTS OUTCOMES
17.40 Financial capital

Enlightened Healthy Clinker 13,794 3,207 2,081 2,466
Partners Environment production
Net sales EBITDA PAT Cash flow
(mn tonnes) (` crore) (` crore) (` crore) from
Loyal operations
Shareholders (` crore)
Manufactured capital
25.89 86%
Cement Capacity
Cement
Utilisation (%)
Sustainability production
(mn tonnes)
Empowerment Intellectual capital
accountability
and transparency 17%
Share of revenue from
special products
People
22.35
Natural capital
Blended
cement 8.6 528.8 72.8 596
Demonetisation production Waste CO2 emission SOx emission NOx emission
impact (mn tonnes) co-processed (kg CO2/ (g/ton of (g/ton of
(mn tonnes) tonne of cementitious cementitious
cementitious material) material)
material)
Raw Material 17.3 15
Extraction Drying and Dust emission (g/ton of Water recycled
Grinding of cementitious material) (%)
Raw Meal 1,285
Clinkerisation Captive Social capital
Administrative
power
burden
generated 2.8
(mn units) Lives touched through
CSR initiatives
(million)
Taxation
Relationship capital
33,665 81 53,000+
26.50
New contractors Net Customers
Cement enrolled on Promoter connected through
sales Abhimaan in 2021 Score (%) digital platforms
(mn tonnes) during the lockdown
Delivering superior Leading in

Human capital
performance sustainability
0.21 2.84%
Lost time injury Share of women
Read more Page 26 (per million hrs) in workforce (%)
Regulatory compliance Technology advancements Climate change advancements

strategic priorities and progress
Shaping our
future course
Aligned with the growth strategy of our parent company
and rooted in our robust vision, our strategy has been
designed to capitalise on emerging opportunities and
ensure that we emerge more profitable, responsible and
beneficial for our stakeholders.
Resource
Focus areas allocation in 2021
Accelerating To expand capacity and Spent towards capex

growth strengthen market position in
core markets through low cost
`580 CRORE
brownfields and greenfields
Leading in Reinforcing our leadership

by conducting business in
Environment related
spending
sustainability a sustainable and inclusive
`154 CRORE
and innovation manner along with the
introduction of responsible
products
Delivering Ensuring superior performance

of our existing portfolio
Employee benefit
expenses
superior through premium variants, cost
`678 CRORE
performance efficiency projects, enhancing
our people capabilities and
digitalisation of systems and
processes
Expanding Continuing to scale up volume

and revenue and strengthen
Continuous investments
in innovation
solutions and our position in products and
products solutions segments

Vision
To be the most
sustainable
and competitive
company in our
industry
Linkage to Key risks impacting

Progress in 2021 material issues strategy
− Commissioned 3.0 MTPA clinker − Economic performance − Elevated global energy

and 1.8 MTPA cement greenfield − Sustainable development prices and supply chain
integrated unit at Marwar disruptions
September 2021
− Macro instability due to
− Finalised on brownfield expansion geo-political shocks
of 1.5 mn tonne cement at
existing plant in Ropar, Punjab
− 2.7 million community − Greenhouse Gas (GHG) − Climate change

members vaccinated emissions and climate change
− Policies and regulations
− Air emissions, Waste
− Waste heat recovery projects
management, Circular − Product responsibility
in progress across plants
economy (AFR)
− Local communities
− Emerged as 8X water positive − Sourcing of water
− Biodiversity
− Corporate Social Responsibility
− Share of premium products in − Economic performance − Inflation

revenue increased 170 BPS − Attraction and retention of
− Cyber security
talent
− Per tonne cost increased by 3.4%
− Employee retention
− 8 man-hours of training provided
for employee development
− Share of revenue from − Customer satisfaction − Product innovation

special products 17% − Sustainable constructions
− Market acceptance

sustainability strategy
Blueprint for green

growth
At Ambuja Cement, we have always embedded social and environmental
considerations into our operations and decision-making, which has
strengthened our competitive edge. Our distinctive approach to sustainability
enables us to measure the impact we are creating on society and the
environment and calibrate our business operations and actions accordingly.
We scrupulously map our progress along set targets and report on our non-
financial impact.
TRUE VALUE APPROACH because True Value has helped us take We reported incremental growth in
We have set an industry benchmark strategic business decisions based ‘true value’ over the years driven by our
by adopting the True Value approach, on a qualitative measurement of the sustainable environmental and social
or the triple bottom-line accounting Company’s impact on the environment interventions and backed by our robust
method, which encompasses the and society. We have been able to economic growth. We are looking
three pillars of sustainability—people, identify a portfolio of cost-effective forward to standardising our True Value
planet and profit—and emerged as projects, reduce costs, increase processes by working with the relevant
the most competitive and sustainable earnings and subsequently increase stakeholders.
cement company in the country. This is ‘true value’ for our stakeholders.
− Economic value − Rain water harvesting

− Value created for society − Alternative raw
through CSR initiatives materials and fuels
− Quarry rehabilitation
− Renewable energy
− Water saving at
customer end
Financial Social Environmental

Value Value Value True Value
− Retained earnings − Human health − Gaseous emissions
− Depreciation − Water extraction
− Land disturbed

In line with ‘Well-below

2°C trajectory’
To further our sustainability
agenda, we have also developed
and validated our 2030 carbon
emission reduction targets by the
SBTi, in alignment with the required
reductions to limit global warming to
well below 2°C. We are committed
to reducing Scope 1 and Scope 2
GHG emissions by 21% per tonne of
cementitious materials by 2030 from
a 2020 base year. With this target,
Ambuja Cement commits to reduce
Scope 1 GHG emissions by 20%
per ton of cementitious material and
Scope 2 GHG emissions by 43%
per ton of cementitious materials in
this timeframe.
SUSTAINABLE DEVELOPMENT PLAN 2030

Our Sustainable Development Ambition provides a broad framework to undertake strategic interventions in order to meet
challenges across four thematic areas – Climate and Energy, Circular Economy, Water & Nature and People & Communities.
Climate and Circular Water People &

Energy Economy & Nature Communities
CO2 WASTE WATER VALUE
Reduced Re-used Saved Shared
Lead metrics (kg CO2/t of (million tonnes) (Fresh water (million beneficiaries)
cementitious material) consumption: L/t of
cementitious material)
Performance 2021
528.8 8.6 58 2.8
Target 2030 453
(excluding CPP)
21 62 3.5
SDGs linked

Operating context
Ready to seize emerging

opportunities
As a leading cement manufacturer, we are aware of the need to remain
nimble-footed while navigating a dynamic external environment, which has
turned more complex following the global health crisis. Yet, the industry’s
growth potential in India remains intact. We are well-positioned to capture this
demand and help the industry restructure its footprint.
Key trends impacting the Indian cement sector
Urbanisation Demography
Rapid urbanisation driving demand for urban A young population driving urbanisation
homes

Better standard of living Affordable housing

Increased demand for better living standards and Thrust on Affordable Housing schemes
more effective infrastructure from the government
Rural income growth Infrastructure push

Focused initiatives to drive rural income has Increased budgetary outlay to continuously
broadbased the sectoral growth drive infrastructure sector in the country
Detailed discussion on Page 78

STAKEHOLDER ENGAGEMENT
Understanding our
stakeholders
STAKEHOLDERS HOW WE ENGAGE
Through our investor relations arm and various communication

Shareholders/ channels including annual report, quarterly releases and investor
investors calls, we engage with our shareholders and investors. Key concerns
are shared with the Board
Dealers/Channel We engage with our dealers through channel satisfaction surveys,

partners annual conferences, meetings and marketing meets
We hold regular supplier meets, periodic assessments and

Suppliers interactions to ensure a transparent procurement system, address
suppliers’ grievances, expand network and reduce their risks
We engage with our customers through technical services team

Customers camps, workshops, seminars and site visits
We regularly undertake employee engagement surveys, hold

Employees function specific meetings, and engage with our employees through
internal newsletters and magazines, townhalls and events
Community Through the Ambuja Cement Foundation, the Community Advisory

Panel continues the positive engagement with communities for
sustainable mining, water conservation, land reclamation, and health
and safety of stakeholders in operations and logistics
Government and We hold periodic meetings with respective regulatory agencies and
regulatory agencies communications on proposed legislations
Construction We engage with construction professionals through Ambuja

professionals Knowledge Centres for right product selection, knowledge
dissemination on good construction, product quality and
applicability
We interact with industry associations through meetings, policy
Industry papers, conferences to highlight issues faced by the Company/
associations industry, need for policy interventions, policy advocacy on
sustainable development practices in the value chain

Strong stakeholder relationships help IDENTIFICATION AND PRIORITISATION OF STAKEHOLDERS

us to communicate our business The following factors − Business dependency
helped in identification and criticality of the
decisions, activities and performance and prioritisation of key stakeholder
to our stakeholders and provide us stakeholders:
− Identification by senior
the opportunity to co-create effective − Stakeholders directly/ management from
indirectly impacted or different functional areas
and lasting solutions for our business influenced by business
− Peer companies’
and other challenges. activities
stakeholders
− Stakeholder inclusivity
FREQUENCY COMPANY RESPONSE
One-on-one shareholder − Collaborated with different stakeholders to promote sustainable products

interaction when requested − Positive vibrations in the Indian economy and government initiatives driving
cement demand
− Deployed innovative approaches to encourage cost savings
− Once in two years
− Various engagement activities and feedback mechanisms are conducted to
(survey)
measure and monitor channel partner satisfaction [Net Promoter Score (NPS) and
− Annual/continuous
Satmetrix, among others]
process
Spread across the year − Systematic efforts are made to build and maintain long-term relations
− Regular focused group approach is followed to strengthen supplier relationships,
listen to and address transporters’ concerns
− Handholding is provided for vendor development through our supplier assessment
practice
Spread across the year
− Developing sustainable products and services that reduce energy and other
resource consumptions for the customer. This will also lead to increased customer
satisfaction and retention, alongside enhanced brand image
− Create great value for our customers and end-users through knowledge sharing
initiatives
− Once in two years
− Various safety awareness programmes
(survey)
− Training programmes conducted to nurture leadership at all levels
− Continuous process/
− Transformational initiatives like ‘I Can’ drives the right mindset in the Company’s
quarterly/monthly
leadership
Continuous process
− Our Skill & Entrepreneurship Development Institutes (SEDIs) foster self-employment
and livelihood development
− Water conservation projects, land reclamation and biodiversity action plans
− An Social Return on Investment (SROI) study of development interventions was
conducted in core villages of Bhatapara, Chhattisgarh by Confederation of Indian
Industries (CII) Centre of Excellence for Sustainable Development with the overall
SROI revealed at `9.7 for every `1 spent
Continuous process
− Ensured compliance in all areas
− New emission control equipment is installed to comply with standards for the
cement sector in India
− Product innovation and BIS certification are proactively followed
Continuous process
− Providing regular training to construction professionals
− Staying connected through our digital platforms with construction professionals to
discuss various technical and practical upgrades in the sector
Need-based − Through industry associations, we discussed various sector-specific issues on

sustainability topics like carbon emission reduction, new groundwater guidelines,
and other environmental regulations. We also submitted our representations to
government authorities through these associations

MATERIALITY Assessment
Material priorities
for our business
Through a comprehensive materiality assessment, we
identify, assess and understand the financial and non-
financial issues that impact our business and the process
by which we create long-term value for our stakeholders.
These issues are integral to our planning process and help
support the delivery of our business strategy.
We engage in a comprehensive stakeholder

engagement exercise, based on a well-defined,
closed-loop approach. This includes identification
of stakeholders, prioritisation, engagement,
strategy development, preparation and
implementation of the action plan to complete the
feedback loop. The prioritisation of material topics
related to performance, people, and planet are
well aligned with our strategic pillars.

PRIORITISE
IDENTIFY Topics gathered
Relevant topics
from the opinions
to include in the
and concerns of
assessment
our stakeholders
How we
assess our
materiality
issues
REVIEW
Results reviewed
DEFINE internally to ensure
Stakeholder their alignment
groups with our business
risks and strategy
Why materiality matters?
STAKEHOLDER ENGAGEMENT RISK MANAGEMENT IDENTIFYING KEY OPPORTUNITIES
The process of stakeholder Materiality assessment is a strategic Materiality assessment leads to

engagement serves as a tool for business tool because it is a opportunity identification around
understanding the reasonable fundamental step in understanding material issues such as cost savings,
expectations and interests of material issues which leads to efficiency gains, new revenue
stakeholders, as well as their assessment of risks around streams from green products and so
information needs. Systematic these topics. Today, enterprise on. Materiality helps in creating a lens
stakeholder engagement is likely risk management includes risks in understanding opportunities and
to result in ongoing learning associated around ESG as well. staying ahead of competitors.
within the organisation, as well as The World Economic Forum
increased accountability to a range also highlights the increasing
of stakeholders. Accountability interconnectedness among ESG
strengthens trust between the risks with risks in other categories—
organisation and its stakeholders. particularly the complex relationship
between environmental risks and
The materiality assessment process social issues.
gives insights in understanding
current and future risks and
opportunities to build a sustainable
business strategy.

MATERIALITY
03 06 08
19 20
12
01
31 02
21 26
30
04
25
18 34
28
32 33
Importance to Stakeholders
29
35
05
24 23
09
22
36
17 07
13 15 27
16 11
10
14
Medium High Very High
Importance to Business

MATERIAL TOPICS ALIGNED WITH OUR THREE PILLARS OF SUSTAINABILITY
Environment Social Governance
01 Energy efficiency 12 Health and Safety 23 Economic performance
02 Renewable Energy 13 Employee training 24 Indirect economic impacts
03 Greenhouse Gas (GHG) 14 Attraction and retention of 25 Compliance with regulatory

emissions and Climate talent requirements
Change
15 Mental health and employee 26 Customer satisfaction
04 Other air emissions well-being
27 Sustainable constructions
05 Biodiversity 16 Gender Equality
28 Transparency and Corporate
06 Sourcing of water (and water 17 Non-Discrimination Governance
management)
18 Labour issues 29 Anti-Bribery and Corruption
07 Waste management
19 Human Rights 30 Anti - Competitive behaviour
08 Circular economy
20 Corporate Social 31 Risk Management
09 Green Supply chain Responsibility (CSR)
(Transportation and Logistics) 32 Public Policy and Advocacy
21 Customer Privacy
10 Sustainable packaging 33 Product quality and innovation
22 Land acquisition for mines and
11 Relocation and rehabilitation new operations 34 Operational efficiency
(post mine closure)
35 Capacity utilisation and
current demand
36 Procurement Practices
Internal External Internal and external

01 32 20 26 02 03 04 05 06 07 08 09 10 11
12 13 14 15 16 17 18 19 21 22
23 24 25 27 28 29 30 31 33 34 35 36
High priority
01 02 03 04 06 08
12 19 20
23 25 26 31 33 36

RISK MANAGEMENT
Navigating risks and

opportunities
Our operating environment is evolving rapidly, and it is imperative for us to
identify, assess and respond appropriately to both the upside and downside of
uncertainties to achieve our strategic objectives and protect the interests of our
stakeholders. Our ability to create long-term value depends on how we mitigate
the impact of these risks and leverage emerging opportunities.
We take both the ‘top-down’ and the The Risk Management Committee
‘bottom-up’ approaches for assessing of the Board reviews and provides
risks and opportunities. The identified oversight to the management regarding
risks are relevant for us over a period of the identification and evaluation of the
one to three years. More than 45 risks identified risks, including sustainability,
have been identified across three broad information security and so on.
categories – strategic, operational
and external. We have prioritised top We put special emphasis on
10 risks across categories that have sustainability and have identified the
a material impact on our operations, key risks associated with our business,
profitability, cash flows and long-term with impact on the climate/environment.
value creation for our stakeholders. We have mapped these risks as per the
disclosure standards prescribed by the
Task Force on Climate-related Financial
Disclosure (TCFD).

The following table represents some of the key risks identified by us. We have devised and applied relevant mitigation
strategies for each risk, depending on the gravity of impact and likelihood of occurrence.
Key risk Mitigation Impact

STRENGTHENING MARKET POSITION
Risk context With government spending focused on Strategic objectives
External macro factors remain extremely volatile. infrastructure and housing, the cement sector Accelerating Growth
Many factors such as policy uncertainty, access to is poised for growth. This is further backed by Expanding Products and
funds, higher interest rates and the continuation of favourable interest rates and government policies. Solutions
the pandemic may impact growth prospects We have presence in both key and emerging
markets and progressively expanding our market Capitals impacted
reach. We are always evaluating the emerging
Value creation opportunities socio-political and economic trends and aligning
Our ability to navigate the external uncertainties our strategies accordingly
helps us create opportunities for stronger growth,
increased returns and better market positioning Risk trend
INPUT COST AND AVAILABILITY

Risk context We continuously look for new sources for raw Strategic objectives
Continuous rise in prices of key inputs and limited material and use alternative raw materials. We Delivering Superior
availability of natural resources could impact our recently started underground mining of Gare Palma Performance
operations as well as profitability Coal Block, securing coal supply for our Bhatapara
unit. Our investments in WHRS units across plants Capitals impacted
are helping us utilise waste better and reduce input
Value creation opportunities cost. Infrastructure for enhanced use of fly ash is
We relentlessly optimise input cost, use alternative under construction
raw materials and industrial waste that help us
reduce consumption of natural resources Risk trend
ENSURING HEALTH AND SAFETY OF OUR PEOPLE

Risk context We have implemented necessary measures to Strategic objectives
Our employees who work at the manufacturing ensure ‘Zero Harm’ and protect employees, Delivering Superior
units or mines are exposed to inherent health contractors and third parties from injury, illness or Performance
and safety risks. We remained operational during fatality, both on-site and offsite. We have guidelines
the second wave of the pandemic by stringently in place for ‘Operating in with and without COVID’, Capitals impacted
following all safety norms handling of day-to-day operations and surge
requirements (shutdowns, maintenance, etc.), and
focus on personal safety behaviour while at work.
Value creation opportunities We have emergency preparedness in line with the
A safe and healthy work environment underpins COVID Trigger and Response Plan (TARP) along Risk trend
our commitment to being a responsible corporate with mental resilience programme
citizen
Financial capital Manufactured capital Intellectual capital Natural capital
Social capital Relationship capital Human capital

RISK MANAGEMENT
Sustainability-related risks
Key risk Mitigation response Impact
WATER AVAILABILITY
Risk context We are optimising our water consumption through various Strategic objectives
Water availability has become a significant risk area, initiatives including water harvesting. We track specific Leading in Sustainability
considering the depleting water tables freshwater withdrawal, consumption and efficiency
through monthly Water Management Reports (WMRs) Capitals impacted
for efficient utilisation. Our Sustainability Committee and
Value creation opportunity executive committees of the management regularly
We are working continuously to reduce water
monitor the performance of water-related KPIs
consumption, recycle process water and recharge
groundwater to remain water positive Risk trend
SUSTAINABLE CONSTRUCTION AND GREEN BUILDINGS

Risk context We promote sustainable construction with focused Strategic objectives
To guarantee long-term viability of the sector, it is product development, R&D and technical assistance to Accelerating Growth
imperative to ensure optimum resource utilisation our customers. We have created a sustainable product Expanding Products
and minimise the environmental impact of building portfolio; more than 89% of our responsible products and Solutions
materials. There is a likelihood of stronger regulatory such as PuraSand, AAC Cool Wall Blocks, Ambuja Leading in Sustainability
measures to ensure sustainable practices and Kawach, Ambuja Plus, Compocem etc.
products Capitals impacted
Value creation opportunities

This provides us with the opportunity to introduce
innovative products that have limited impact on the Risk trend
environment
LOGISTICS
Risk context We are using ships that run on biodiesel to optimise cost Strategic objectives
Increasing logistics expense and distribution cost are and reduce our carbon footprint. We are further reducing Delivering Superior
areas of concern for the industry. Rail is a preferred distribution and logistics costs by enhancing movement Performance
mode of transport for distances above 250 km; by rail in collaboration with Indian Railways as per agreed Leading in Sustainability
however, rail transport has always been impacted by terms of long-term freight revenue commitment and
the shortage of wagons, particularly during the peak assurance on the availability of wagons. We are also Capitals impacted
period. Policies of the Indian Railways (preference for increasingly leveraging digitalisation and Master Service
food and power companies) have posed a challenge Agreement (MSA) with ACC Limited for route optimisation
in the movement of cement to the consumption and minimise delivery cost
centres, adversely impacting the production schedule
Risk trend
and increasing the overall transportation cost

This provides us the opportunity to optimise cost by
using digitalisation for route optimisation. It also helps
in reducing our carbon footprint
MINING
Risk context Limestone from our captive mines allows us to have Strategic objectives
The key challenges associated with mining better operational control and maintain product quality. Accelerating Growth
operations are land acquisition, mineral distribution, We are using state-of-the-art environmentally friendly and Leading in Sustainability
mineral quality, mine rehabilitation, biodiversity, and safe mining techniques that cause minimal disturbance
groundwater table intersection to the people, land and the environment. We have Capitals impacted
installed Overland Belt Conveyor (OLBC) systems for the
Value creation opportunities transportation of limestone from the mines to our plants.
We continuously work towards enhancing mining We have in place policies on mine rehabilitation and
efficiency. The use of waste helps us in conserving biodiversity protection post-mining. We are a signatory
to the India Business and Biodiversity Initiative (IBBI) Risk trend
natural resources
of the CII and Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ), and implement IUCN guidelines

Key risk Mitigation response Impact

LOCAL COMMUNITIES
Risk context We engage with the community through our CSR arm, the Strategic objectives
We have manufacturing sites in rural areas, where Ambuja Cement Foundation (ACF). We have established Leading in Sustainability
income disparities and other inequalities often lead Community Advisory Panels in our locations, comprising
to discontent and social unrest. The inflow of migrant representatives from the Company and the community Capitals impacted
workers and truck drivers also cause demographic to discuss community issues and arrive at a consensus
changes. Support from the communities is essential to implement programmes for them. We stringently
to conduct business operations monitor all programmes through the Social Engagement
Scorecard
Risk trend
Our approach is to minimise the impact of our
business, and engage openly and honestly to build
lasting relationships and foster socio-economically
resilient communities
REGULATORY CHANGES
Risk context We ensure compliance in all areas. New emission control Strategic objectives
Changes in law and regulations may result in systems have been installed to comply with the new Accelerating Growth
disruptions. Non-compliance can lead to reputational emission standards for cement industry Expanding Products
and financial consequences, although compliance and Solutions
too comes at a cost of innovation, alternatives, Leading in Sustainability
transformation and upgradation, among others
Capitals impacted
Risk trend
SCARCITY OF NATURAL RESOURCES

Risk context Our portfolio and processes have evolved with emerging Strategic objectives
Depleting natural reserves, new regulations, needs. Our products and solutions reduce the risk of Accelerating Growth
availability, price, currency exchange rate volatility unsustainable consumption of natural resources such as Expanding Products
and other factors have led to a steady increase in the limestone, fossil fuel (coal) and other resources like water. and Solutions
cost of raw materials, power and fuel We are promoting circular economy that helps us address Leading in Sustainability
concerns arising from scarcity of natural resources
through the use of waste-derived resources Capitals impacted
Value creation opportunity
This gives us the opportunity to work on alternative
raw material mix and use higher share of waste in the
manufacturing process
Risk trend
CLIMATE CHANGE
Risk context There are four focus areas for lowering carbon emission Strategic objectives
Climate change poses risks which are evident in in our operations—reduction in clinker factor; improving Leading in Sustainability
our operations and their mitigation represents a key electrical and thermal energy efficiency and process
aspect of our sustainability strategy. Increase in the technology; waste heat recovery; and optimising fuel Capitals impacted
frequency and intensity of precipitation/extreme composition. Our climate change risk assessment
weather events such as cyclones can lead to floods is based on Task Force on Climate-related Financial
and submergence that can potentially disrupt our Disclosure (TCFD) guidelines, which also helped us
supply chain and operations including our sea identify the action plans to address the risks and
opportunities. The identified opportunities are to the tune Risk trend
transport terminals From the transitional risk
perspective, we face regulatory risks such as of 7% of EBITDA (as of 2021)
increase in carbon tax on coal, Renewable Purchase
Obligations (RPO), volatility in fossil fuel prices and
increase in prices of AFR due to growing market
demand
Value creation opportunity

Through our focused climate change programme, we
strive to ensure emissions and climate change issues
are identified, understood and monitored

New connections
discovered.
What old routes
overlooked.
The second wave of the Soon, TAC fine-tuned its features to optimise
production and despatch schedules,
COVID-19 pandemic posed rationalise routes, help build a more robust
severe hurdles in the order allocation programme, thus enhancing
management of the e-platform driven freight
transportation of manufactured procurement.
products to distributors.
As a result, our trucker partners’ minimised
Our ability to serve our time spent on roads, optimised pick-up and
customers’ needs was being delivery, ensuring all essential documentation
was easily available on their devices for
compromised. So, the team swifter transit. For Ambuja, it provided
put their heads together on a single-window view for the efficient
management of costs, time, driver well-being
how to circumvent this situation and customer satisfaction.
and ensure seamless business
Besides, this marked a significant milestone in
continuity. Ambuja’s journey towards automation of our
processes and controls.
The team decided that it was time to refocus
their energies and accelerate its digitalisation
efforts. By now, the Transport Analytics Centre
(TAC)—launched a couple of years ago—had
evolved and moved to the next level, addressing
the twin needs of trucker safety and real-time
route optimisation. TAC had now become the
single source of truth for the entire supply chain.

Buoyed by a commitment
to get the job done
well AND rejuvenated
by the spirit that
every challenge is
an opportunity to do
better, THE TEAM went
the last mile to ensure
digitisation would
come to the rescue of
serving our customers
better.

FINANCIAL
CAPITAL
Successful financial capital management helps
us achieve our business objectives, retain
stakeholder value and ensure the smooth
continuity of business operations. Our financial
capital includes the surplus generated from
our business operations and funds generated
through financing activities. The year saw us
achieve a record revenue growth, efficiently
manage cost rationalisation and deliver robust
returns to our shareholders.
STAKEHOLDERS IMPACTED
Shareholders
Employees Dealers
and investors
Suppliers Community
MATERIAL ISSUES ADDRESSED

− Economic − Marketing − Procurement
performance communication practices
and reputation
KEY RISKS ADDRESSED

− Maintaining market position − Funding requirements
SDGS IMPACTED

Value creation at a glance
Developments and KPIs

key initiatives
23%
Achieved a historic
GROWTH high revenue
growth in revenues
In CY2021
21%
− Focus on cost optimisation
MARGIN MANAGEMENT across the organisation
AND EFFICIENCY growth in EBITDA
− Growing contribution of
premium products driving
40 bps
realisations
decline in
EBITDA margin
90 bps
FOCUS AREAS
decline in net profit

margin In CY2021
− Strengthened capital
FINANCIAL STABILITY profile K21,810 cr
Other equity
K22,207 cr
Net worth As on
December 31, 2021
− Delivered superior return for

SHAREHOLDER
RETURNS
shareholders with strong
dividend
K1,251 cr
Proposed payout for
the year 2021

Capital-wise performance >> FINANCIAL CAPITAL
OVERVIEW − Raw material costs per tonne EARNINGS

We ensure regular operations are at increased by 8.8% due to increase Robust improvement in core business
an optimum level. Our operational in input material cost performance and low interest outgo
KPIs are compared with internal resulted in strong profit growth. EBIT
− Power and fuel costs per tonne
and external benchmarks to achieve during the year reported a growth
increased by 27% due to steep
higher productivity and yields. Our of 25%, from `2,125 crore in 2020 to
increase in fuel prices
innovative marketing initiatives and `2,656 crore in 2021. Pre-tax profit
various ongoing digital programmes − Logistics cost per tonne decreased registered a growth of 15% from `2,414
provide better customer connect and by 2.8%. This was a result of our crore in 2020 to `2,785 crore in 2021.
reach, and higher realisations. This digitalisation efforts in logistics as Pre-tax profit margin decline 140 bps
operational efficiency enables us to well as increased volume under from 21.6% in 2020 to 20.2% in 2021.
generate positive cash flows from master supply agreement with ACC
operations. We have a robust financial Limited Our net profit for the year registered
planning process that assesses the a 16% increase from `1,790 crore in
requirement of funds for sustainable Other expenses per tonne increased by 2020 to `2,081 crore in 2021. Net profit
business operations as well as for 4% in 2021 over 2020. margin for the year showed a decline
investments towards present and future by 90 bps from 16% in 2020 to 15.1%
business sustainability and growth Cost break-up as percentage of in 2021.
opportunities. total cost (` crore)
1% 10%
Earnings per share in 2021 witnessed a
Driven by strong volume growth and 16% 16% growth from `9.02 in 2020 to
3%
realisations, we reported one of the `10.48 in 2021.
6%
best performances ever in the history
5%
of Ambuja Cement. 2021 Net profit (` crore)
GROWTH 29% 2021 2,081
During the year, we reported a revenue 30% 2020 1,790
of `13,965 crore, a 23% growth over
2019 1,529
the 2020 revenue of `11,372 crore. Finance cost (`91)
Performance was driven by a strong Cost of materials consumed (`1,134) 2018 1,487
demand, which led to 1,100 bps Purchase of traded goods (`381)
growth in capacity utilisation as well Employee benefit expenses (`678) FINANCIAL STABILITY
as continued focus on the premium Depreciation and amortisation Our total assets reported a growth of
category, resulting in 4% growth in expenses (`551) 11% from `25,481 crore in 2020 to
average realisations over that in 2020. `28,173 crore in 2021. Current assets
Power and fuel cost (`3,421)
accounted for 24.0% of the total assets
Freight and forwarding expenses (`3,308)
Net Sales (K crore) during the year under review against
Other expenses (including change in
17.4% in 2020.
2021 13,794 inventory) (`1,835)
2020 11,175 Our funding profile strengthened further

1% 9% during the year on the basis of a strong
2019 11,353 2%
20% profit generation that boosted the
2018 10,977 7%
Company’s equity base.
6%
MARGIN AND EFFICIENCY 2020 Our effective utilisation of capital and
Strong growth in volumes along with
strong EBITDA helped us post 160 bps
better realisation led to a 21% growth 31% 24% increase in return on capital employed
in EBITDA from `2,647 crore in 2020 to
over 2020.
`3,207 crore in 2021. EBITDA margin
for the year reported a 40 bps marginal Finance cost (`83)
decline from 23.7% in 2020 to 23.3% Cost of materials consumed (`875)
Cash and cash equivalents (K crore)
in 2021. Purchase of traded goods (`197)
2021 3,985
Employee benefit expenses (`669)
In the face of an inflationary 2020 2,717
Depreciation and amortisation
environment, cost optimisation 2019 4,512
expenses (`521)
initiatives were undertaken in 2018 3,150
Power and fuel cost (`2,252)
operations and logistics through
Freight and forwarding expenses (`2,855)
our ‘Plants of Tomorrow’ and other
programmes. Total cost per tonne Other expenses (including change in
reported 3% increase during the year. inventory) (`1,878)

Net worth (K crore) CASH FLOW

Our cash position strengthened
2021 22,207 during the year, reflecting the broad-
2020 20,316 based improvement in operational
performance. Cash used in investing
2019 22,205
activities increased by 37% from `641
2018 21,013 crore in 2020 to `882 crore in 2021. Net
cash balance stood at `3,985 crore at
Return on capital employed (%) the end of 2021 against `2,717 crore at
the end of 2020.
2021 13.1
2020 11.5 Dividend per share (K)
2019 9.2
2021 6.30
2018 7.6
2020 18.00
2019 1.50
2018 1.50

We paused to
prepare better.
And then surged
ahead to achieve.
The cement plant of the future The entire operation of Marwar Cement
Works is guided by the state-of-the-art
will embrace digitisation and Robotic Lab, which has the highest number
sustainability trends to earn of auto sampling points. Robotic arms
across the plant, collect samples in capsules
a competitive advantage and and transport to the lab for analysis with
build resilience. absolute accuracy guaranteed without any
human intervention. Automated sampling has
Challenging times in the recent past have eliminated hazards associated with physical
proved the importance of building resilience sampling besides creating a dust-free
into the core of any manufacturing industry. The environment in labs and sample rooms.
path forward for our industry is clear - embrace
digitisation and sustainability in the cement Mining operations are assisted by another
plant. advanced technology that examines
limestone samples at 1/10th of a second and
Ambuja has incorporated both these trends updates operators on consistency of input
at the core of its planning as evident with its materials within minutes. Besides time, fuel
newest plant, Marwar Cement Works which is consumption is reduced due to consistency in
clearly a trendsetter as a Plant of Tomorrow. raw material; and thus energy is saved.
With the vision that the cement plant of the This targeted and effective maintenance
future would boost productivity and efficiency, lengthens the lifeline of the equipment.
innovations were incorporated in Marwar right The plant’s environmental footprint is
from the planning stage. A strong technological minimised, securing its license to operate
base facilitated a fully-integrated cement value across locations. All non-value added tasks
chain, across different functions. are automated and real-time information is
remotely available at all levels to make better
decisions.

The swift turnaround

is an example of
spirit that has helped
Marwar stay ahead
of competition. we
had only visualised a
plant with this level of
technology, automation
and digitisation. For us
at Ambuja, it is a dream
come true.

Manufactured
capital
Effective management of our manufacturing
assets contribute to our operational efficiency,
profitability and continued growth. During the
year, we continued to maximise our existing
facilities, implement planned expansion and
invest in Industry 4.0 through the Plants of
Tomorrow initiative that is designed to make
manufacturing more sustainable and safer.
Employees Construction
Dealers
professionals
Government
Suppliers and regulatory
authorities

− Capacity utilisation − Energy efficiency − Land acquisition
and current demand for mines and new
operations
− Compliance
to regulatory
requirement
KEY RISKS ADDRESSED

− Market position − Scarcity of natural resources
SDGS IMPACTED


key initiatives
6.1%
− Commissioning of the new
CAPACITY greenfield unit at Marwar
EXPANSION increase in
− Embarked on brownfield
expansion and waste heat grinding capacity
recovery projects among in CY2021
others
30 bps
− Strengthening the Plants
ENHANCING of Tomorrow initiative to
EFFICIENCY strengthen digitalisation increase in operating
− Leveraging other efficiency cost as a percentage
enhancement initiatives to of operating revenue
emerge as a lean manufacturer in CY2021
FOCUS AREAS
96 bps
Reducing the
SUSTAINABLE environment impact of
MANUFACTURING our operations through: increase in thermal
− Enhanced use of waste substitution rate
− Increased share of
green energy
154 bps
improvement in
clinker factor
in CY2021
>95%
Continuous investments in
QUALITY quality control and quality
IMPROVEMENT assurance measures compliance in
Annual Quality
Programme (AQP)
in CY2021

Capital-wise performance >> Manufactured capital
OVERVIEW
`380 crore
Environmental clearance and other
Our manufactured capital consists required approvals for the mining
the tangible objects that facilitate our lease have been obtained. Land
Spend on development and
day-to-day operations and delivery of acquisition is in progress, along
efficiency capex in 2021
our products. This includes physical with necessary infrastructure
(excluding Marwar expansion)
infrastructure such as our land, development
buildings, production plants, mines on
lease, heavy machinery, equipment
− To ensure adequate availability of MANUFACTURING PERFORMANCE
dry fly ash, we are setting up fly ash We adopt best practices in
fleet, and furniture and fittings among
dryers/hot air generators at Ropar manufacturing. Our parent, Holcim,
others.
and Bathinda (Punjab), Nalagarh has developed a ‘Cement Industrial
(Himachal Pradesh), Dadri (Uttar Framework’, which defines the systemic
DEVELOPMENT AND EFFICIENCY Pradesh), Roorkee (Uttarakhand) approach towards manufacturing
At Ambuja Cement, we continuously
and Rabriyawas (Rajasthan) with an in its entirety, including people and
invest to strengthen our market position
estimated investment of `140 crore processes. This framework is the
and evolve as a more efficient, cost-
guiding principle for all manufacturing
competitive and environmentally − To meet future limestone
activities at Ambuja Cement.
sustainable organisation. Key initiatives requirement, we have invested
of the year include: `77 crore to purchase land at
The framework has helped us in
Ambujanagar, Darlaghat and
running operations more efficiently,
Capacity expansion Bhatapara
strengthen plant availability and ramp
− We have set up a greenfield
− To secure limestone needs of the up production seamlessly. Some of the
integrated plant with 3.0 MTPA
Maratha Cement Works plant in highlights for the year includes:
clinker capacity and 1.8 MTPA
Chandrapur, Maharashtra, we
cement grinding capacity at
have acquired a new mining lease − Utilised around 8.6 million tonnes
Marwar in Nagaur District of
at the Nandgaon Ekodi mine. of waste derived resources
Rajasthan. Commercial operations
Environmental clearance and other in production, in line with our
commenced from September 2021
required approvals for mining are in commitment of continuously
and installation of a Waste Heat
progress reducing use of natural resources in
Recovery System (WHRS) of ~ 14.5
manufacturing
MW capacity is in progress
Energy
− We are setting up a 1.5 MTPA − To minimise power cost and Cement production volume (Mn tonnes)
brownfield grinding unit at Ropar, enhance the use of green power, we
Punjab at a total investment of are setting up WHRS (totalling 53 2021 25.89
~`310 crore MW capacity) at Marwar, Darlaghat 2020 22.26
and Bhatapara plants at a total
2019 23.93
Raw material security investment of over `550 crore.
− To secure our fuel resources, we The projects are expected to be 2018 24.34
acquired a coal block at Gare Palma completed by April-June quarter
sector IV/8 in Chhattisgarh through of 2022 Capacity utilisation (%)
e-auction. Open cast mining at full
− To reduce power cost and increase
capacity commenced from October 2021 86
usage of green power, tendering and
2018 and underground mining 2020 75
requisite approvals are in progress
commenced from October 2021
for WHRS at the Ambujanagar 2019 81
− To secure long-term limestone and Maratha plants in Gujarat and 2018 82
requirement for the Bhatapara plant, Maharashtra, respectively
we commissioned a new limestone
mining lease at Maldi Mopar. The Logistics
EFFICIENCY IMPROVEMENT
In order to emerge as one of the
Limestone Crusher and Conveying To strengthen our logistical capability
most cost-competitive cement
system, with a project cost of and enhance customer outreach, a new
manufacturers in the country, we make
~`190 crore, has commenced railway siding project at Rabriyawas
continuous investments in the areas
operations from July 2021 has been commissioned at a total
of clinker factor reduction, energy
investment of ~`210 crore. Clinker and
− To secure the long-term limestone efficiency, raw material mix and fuel
cement despatch by rail started from
requirement for the Ambujanagar mix optimisation and enhanced use of
October 2021.
plant in Gujarat, we acquired alternative fuels and raw materials in
a new mining lease at Lodhva. manufacturing.

Plant efficiency FOCUSED APPROACH FOR REDUCTION IN ENERGY AND POWER CONSUMPTION
− Reduction in electrical power
consumption achieved through Our optimisation efforts during the year resulted in the following:
optimisation of grinding media
− Optimisation of kiln operation to reduce Specific Thermal Energy
charging and optimisation of
Consumption (STEC) from 769 kCal/kg of clinker to 746 kCal/kg of clinker
grinding aid consumption
− Optimisation of kiln and cement grinding mill to reduce power
− Installation of new high momentum
consumption from 61.4 to 60.2 kWh/t of clinker in kiln and 37.4 to
and low NOx burner in Ambuja,
36.0 kWh/t of cement Grinding
Gajambuja and Bhatapara
− Baghouse filter bag replacement
with low drag to reduce the pressure
PLANTS OF TOMORROW
drop, leading to reduction of
Our investment in Industry 4.0 under the ‘Plants of Tomorrow’ programme
SEEC (Specific Electrical Energy
is part of Holcim’s Strategy for Growth 2022. The initiative aims to make
Consumption)
manufacturing more efficient through better plant optimisation, higher plant
− Installation of IKN Cooler to reduce availability and a safer working environment. We are implementing several
heat consumption and improve projects under the programme including FinCem and free lime prediction
efficiency at Bhatapara among others. Once implemented and certified, a plant usually promises
15-20% more operational efficiency compared to a conventional cement plant.
− Reduction in SHR (Station
Heat Rate) and auxiliary power
consumption by replacing SJAE with Power and fuel cost per tonne (`) Thermal substitution rate (%)
vacuum pump for STG3
2021 1,266 2021 5.13
Cost rationalisation
2020 994 2020 4.17
− Maximisation of Wet fly ash (WFA)
and conditioned fly ash (CFA) usage 2019 1,075 2019 5.36
to reduce overall fly ash cost 2018 1,051 2018 5.61
− Replacement of 50% traditional High

Speed Diesel usage with pyrolytic oil
at the time of cold kiln startup
− Maximisation of alternative fuels and
raw materials to reduce fuel cost
− Optimisation of raw mix in fuel to
reduce overall cost of cement
− Use of molecule-based grinding aid
to reduce procurement from vendors
− Maximum utilisation of fly ash to
reduce clinker factor
− Variable Frequency Drive (VFD)
Installation in In-line Calciner (ILC)
Coal Firing Blower to save 480 kWh
per day
− Increase in the nozzle area of raw
mill from 5.25 m2 to 6.55 m2 to
reduce pressure drop in system and
increase mill productivity
− Mill Master commissioned for better
mill performance

PRODUCT QUALITY MANAGEMENT To ensure consistent results, we follow SUPPLY CHAIN AND LOGISTICS
We have an impeccable record in the round robin test methodology to The past year saw continuation of the
delivering superior quality products. identify issues and improve upon the challenges created by the pandemic.
Our quality parameters are stringent same. Although disruptions were more
and we keep a close tab on them to localised during the second wave, they
improve the overall Product Quality Key initiatives to improve overall still caused uncertainty of demand and
Index (PQI). process/product quality during the costs and put the supply chain under
year: pressure.
Our product quality monitoring strategy − Installed robotic lab for real time
includes daily testing on defined quality monitoring and control of Relieving stress
quality parameters; three-day and cement manufacturing at Marwar Despite the challenges, our team
28-day measurement of coefficient of ensured continuous supplies to all
− Installed Cross Belt Analyser for real
variations, clinker quality assessment; markets and healthy inventories with
time quality check of input limestone
customer satisfaction; bi-monthly utmost focus on safety amidst while
from mines
product benchmarking; bi-monthly maintaining all COVID protocols. The
application-oriented product testing; − Implemented Technical Information major enablers were technology-driven
monthly testing of random market System (TIS) for production and lab operations and high agility among the
samples and monthly assessment of data information teams as well as the service providers.
bag quality index. With management focus on sales and
− Use of molecule-based grinding aid to
operations planning, we were able
improve the strength of cement
We are compliant with all the statutory to respond to market variability with
requirements as mandated by the − Optimised SO3 across location to agility.
Bureau of Indian Standards (BIS) improve strength
as well as all weights and measures Technology as a driver for cost
− Qualitative and quantitative
norms. As a statutory compliance, Digitalisation initiatives across the
identification of clinker phases for
our bags display the contact details supply chain helped optimise cost.
strength optimisation using X-ray
for customers to communicate any Transport Analytics Center (TAC) is
Defraction Meter (XRD)
complaint, observation and query. being used for finding deviations on the
ground. We are also using best-in-class
tools for network optimisation, Sales

& Operations planning, e-platforms CAPTIVE POWER GENERATION − Effective and efficient mining and
for freight procurement, etc. All our We have undertaken strategic initiatives extraction processes without
logistics excellence projects are driven in our value chain for energy sourcing disturbing the ecological balance
through automated dashboards. and are developing in-house capacity
− Use of limestone Screening end
to cater to our energy needs. Some
extraction
Freight reduction of these include use of alternative
Several initiatives are being taken fuels/Biomass, Waste Heat Recovery
Our Group policy prohibits operations
to improve efficiency and negotiate (WHR), renewable energy like, wind and
in the immediate vicinity of specific
contracted rates. We are using the solar and implementation of energy
biodiversity zones, world heritage sites
latest e-procurement platforms to management system (ISO 50001:2011).
or International Union for Conservation
discover real time freight rates. Vendor A substantial part of our power
of Nature (IUCN) category I-IV
performances are being closely tracked consumption comes from our captive
protected areas. We adhere to the
and monitored to improve their value power plants at four integrated plants
Holcim Group Quarry Rehabilitation
proposition. and one grinding unit.
and Biodiversity Directive, requiring
67%
us to prepare a Biodiversity Action
Safety and Sustainability
Plan (BAP) for sensitive sites. Every
The Driver Management Centres
three years, a biodiversity indicator
(DMC) that were closed during the Share of power sourced from captive
reporting system (BIRS) assessment is
initial phase of the pandemic were units in 2021
undertaken, as per IUCN guideline, and
re-opened to engage with the driver
an improvement/action plan prepared.
community and counsel them towards MINING
safety-oriented behaviour. TAC has Our integrated units have captive mines
All issues with the local community
also helped develop more meaningful for limestone.
are resolved through dialogue and
safety dashboards for use by the
negotiations. There were no strikes
Driver Management Center (DMC). We How we ensure optimum utilisation
or lockouts at our mines during the
are developing a Carbon Reduction of mines:
reporting period.
tracker while working on bio-fuel trails, − Maximise the use of alternative
e-vehicles, lead reduction and mode and waste derived materials in the
mix to reduce our carbon footprint. process

Key initiatives undertaken in the mines during the year
− Initiated pilot project for real-time monitoring of equipment

performance
− Conducted study for use of electrical excavator in place of diesel
excavator
Bhatapara
− Reduction in limestone purchase from market owing to
GALM mines limestone extraction (30,000 MT)
− Strengthened in-house maintenance of tippers and water
tanker to reduce the AMC/FMC charges
− Initiatives undertaken to reduce diesel consumption
− Reduction of moisture percentage in limestone
− Initiated pilot project for use of Compressed Natural Gas
(CNG) in tippers and bulkers
− Pilot project on electric vehicles for limestone transportation
Ambujanagar
− Implemented raw mix design with higher SO3 percentage to

increase mine life
− Initiatives on reduction in fuel consumption
Maratha
− Ras-I mine expansion to reduce high grade limestone

consumption
− Trial for diesel additives to reduce diesel consumption in mining
− New road identified from Ras-I to plant to reduce lead distance
of upto 4 km and reduce transport cost
− Prepared plan for procurement of high-grade mines within a
50-60 km radius around the plant
Rabriyawas
− Close monitoring to reduce diesel and lead consumption,

and trial of Thermol-D
Darlaghat

Safety Ecosystem protection
− Fatigue monitoring system for operators − Excavated soil used for cultivation/
− Proximity sensor in heavy earth-moving pasture land development
machinery with 20 meter alert system − Dump slopes designed for stability
− Haul road maintained with compactors − Waste disposal as per approved
and graders mining plan
− Dust suppression on haul roads, − Operating sites do not encroach into
crawler-mounted equipment territories of indigenous people
− In-built water sprinklers and dust − Approved mine closure and
extractors in drilling machines rehabilitation plans
− Reverse cameras and alarms in
dumpers
RESPONSIBLE
MINING STRATEGY
Constant monitoring AT AMBUJA CEMENT Efficient techniques
− Blast monitoring − Eco-friendly blast-free surface mining

− Vibration measurement after each blast (Ambujanagar)
− Vibration measurement as per approved • Replaces blasting and drilling
standards • Eliminates ground vibration
− Technology-based mining and demand • Noise minimisation
mapping − Controlled blasting
− GIS*-GPS* based blasting and production • Minimal fly rocks and vibration
− Prompt Gamma Neutron Activation Analysis • Safe extraneous electric environment
(PGNAA)-based crushed Rom analysis • High-precision electronic detonators
*GIS - Geographic Information Systems | *GPS - Global Positioning Systems

We built a
shield that let’s
only smiles seep
through
A house of one’s own is a Kawach was manufactured using waste
materials/mineral admixtures, which replaced
long-cherished dream for clinker in the production process. The result
millions of Indians. However, was 30% lower carbon footprint compared
with ordinary Portland cement. Launched
leaking walls and seepage in virtually during the lockdown, Kawach
ceilings could turn this dream garnered nearly 2.9% of our total sales in a
short span, despite the challenging demand-
into a nightmare. supply environment.
Realising that these problems are endemic
The product met with a resounding response.
to humid and tropical regions where water
The Solar Impulse Foundation endorsed
tables are low and waterlogging common,
Kawach as one of Holcim’s Top 10 solutions
our R&D team decided to seek out a durable
globally, that was both ‘green’ and created
and affordable solution. And what resulted
‘economic value’ for its customers.
after intensive brain-storming, testing ideas
and experimentation was Ambuja Kawach—a
product with inherent water-repellent features
that worked as a shield against seepage and
without any chemical additives.

While the introduction

of Kawach has
strengthened customer
preference for the
Ambuja brand to
actualise their dream
home; it is the
spirit to think out-of-
the-box and create
customised solutions
for our customers that
has proved to be true
once again.

Intellectual
capital
Our intellectual capital consists of the wealth of
ideas, technical expertise, process knowledge,
consistent capability of innovation and other
intangibles such as our brand value and corporate
culture. During the year, we strengthened our
knowledge base through focused learning and
development activities while leveraging our
innovation strength to create new knowledge and
formulate sustainable products and construction
solutions that are aligned to a low carbon future.
Government
Stakeholders
Customers and regulatory
and investors
authorities
Employees Construction
Dealers
professionals
Suppliers Industry
Community
associations

− Customer − Economic − Sustainable
satisfaction performance construction
KEY RISKS ADDRESSED

− Maintaining market − Resource availability − Cyber security
position and price
SDGS IMPACTED


key initiatives
RESPONSIBLE
PRODUCTS AND
Strengthening reach of
Ambuja Kawach 7.7 lakh
tonnes of Kawach
SUSTAINABLE sales volume
CONSTRUCTION achieved during
the year
TECHNICAL SERVICES − Address challenges at

construction sites and
marketplace for sustainable
1,994
Sites where modular
construction curing solutions were
FOCUS AREAS
provided
− Augmented onsite sustainable
construction solutions
− Technical guidance on
rainwater harvesting
14,824
customer sites
provided with instant
mix solutions In
CY2021
− Strengthen digital − Tech-enabled

ACCELERATED
transformation for operations
DIGITALISATION
internal and external across the value
stakeholders chain
in CY2021

Capital-wise performance >> Intellectual capital
− Our blended cements portfolio, differentiator for the Company. Our
OVERVIEW consisting of Ambuja Plus, Ambuja Technical Services team undertakes
We are a frontrunner in technology use
Kawach, Ambuja Compocem and various initiatives to promote
and have built on our reputation as
Ambuja Cement (PPC), is now listed sustainable construction. Instant
pioneers in product innovation through
in the Green Product Catalogue of concrete mix proportioning solution,
our strong emphasis on research
Green Rating for Integrated Habitat which reduces usage of natural
and development. We are constantly
Assessment (GRIHA), a national resources, is one onsite construction
innovating not only to bring new and
green rating system of India co- solution provided by the Company.
sustainable products and solutions
developed by the Ministry of New During the year, this solution was
to the market but also optimise
and Renewable Energy, Government provided to 14,824 customer sites,
resource use and decarbonise the
of India. Our products were leading to a saving of ~17.20 million
cement industry. We are scaling up
evaluated on third-party test results, litres of water. Modular Curing or Zero
digitalisation across the organisation
benchmarks and environmental Water Curing solution is another such
value chain to strengthen our
certifications etc. sustainable construction solution,
competitive edge in the market.
which was provided at 1,994 sites,
saving ~24 million litres water at
SUSTAINABLE AND RESPONSIBLE GLOBAL RECOGNITION FOR AMBUJA
construction sites.
CONSTRUCTION SOLUTIONS KAWACH
We take proactive initiatives to help
Our team is also creating awareness
reduce our carbon footprint, while Ambuja Kawach has been endorsed
about Rainwater Harvesting (RWH)
enhancing our product quality and by Solar Impulse Foundation, a
solution and helping customers
brand promise. Our products and renowned environmental non-profit,
implement the same at their sites.
services help our customers and as ‘Green Building Solution’. We are
During 2021, RWH solution was
construction professionals reduce their the first cement brand from India
provided at 100 sites, conserving ~8.5
carbon footprint, manage maintenance to be awarded this label. Ambuja
million litres water annually.
requirements and cost of operations, Kawach also features among the first
making the projects greener and top ten Holcim solutions recognised
Our applicator training programs
cleaner with lower environmental by Solar Impulse Foundation.
have helped masons and contractors
footprint.
upgrade skills across the country.
During the year, 514 contractors
During 2021, we continued to scale up Technical services
were covered under various training
our sustainable products and solutions. We have developed various products
programs and 1,000+ contractors were
and solutions with ‘Ambuja Certified
educated digitally at the height of the
− Launched in 2020, Ambuja Kawach Technology’ to enable sustainable
pandemic.
has emerged as a preferred product construction, which has become a key
for its unmatched attributes. To
expand availability, we started
supplying the product from four
more plants – Bhatapara, Dadri,
Ropar and Darlaghat. Currently,
Ambuja Kawach is supplied to 17
states and Union Territories from
12 plants across the country. The
product has seen an overall growth
in volume by 328% on y-o-y basis
− Ambuja Cool Walls, our green
solution for walls, is made of
pre-cast autoclaved aerated
concrete with a special heat-barrier
technology that helps keeping
homes cooler during summer and
warm during winters. In 2021, we
added six new plants for Ambuja
Cool Walls manufacturing, reaching
a total of 18 plants pan-India, and
a 25% volume growth on a y-o-y
basis.

1,994
a primary segment we cater to. To Plants of Tomorrow
empower, engage and fulfil the unmet Following the Plants of Tomorrow
needs of contractors, we launched program of Holcim, we are
Customer sites advised on Zero Water
Ambuja Abhimaan, a differentiated implementing automation technologies
Curing solution, leading to saving of
long-term loyalty program. The and robotics, artificial intelligence
~24 million litres water
program has achieved many and predictive maintenance across
milestones, including recognition as the entire production process. We
Ambuja Knowledge Center
one of best mobile loyalty programs, have implemented predictive tools
The Ambuja Knowledge Center was
engaging and benefiting 80,000+ for quality assurance (FinCem) and
as a knowledge sharing platform for
key contractors. Besides earning piloted predictive tools for maintenance
architects and engineers. We have
loyalty points, we are also facilitating (Preheated Cyclone Blockage, Kiln
19 such centres across the country contractors to market their own work Energy Optimisation, Ball Mill Slide
to promote and educate construction and manage their projects with help of Shoe Failure, Refractory Lining Failure)
professionals on sustainable Ambuja Darpan, a business aid mobile to enhance product quality, plant
construction and advanced material app, further buttressing the loyalty. The efficiency and safety.
and techniques. During the year, 5,350 key features of the app are contractor
professionals were covered through profiling and estimator among others. It Another Plants of Tomorrow
various knowledge sharing activities also offers Vaastu tips, event calendar initiative is TIS/PACT- the Technical
and webinars helped reach out to over and Ambuja dealer locator facilities that Information System and Performance
1,500 leading professionals. can be used both online and offline. & Collaboration Tool--which helps
take operational decisions based on
ACCELERATING DIGITALISATION AND For internal stakeholders data about weekly operations, monthly
INNOVATION We have two apps for our Technical performances, projects and actions.
With an aim to strengthen operations Services team – My World, which helps We have introduced Edge AI at all
and enhance our competitiveness, capture onfield efforts in Customer manufacturing locations to facilitate
we are driving digitalisation initiatives Relationship Management and Ambuja rapid deployment of predictive models
focusing on Operational Excellence, Abhimaan which is used both by and seamless connectivity with plant
Controls and Compliance and contractors as well as the Company’s data sources.
Culture. officers. This year, we incorporated the
Price MIS (Management Information We also initiated the Digital
For external stakeholders System) mechanism in both the apps Eye Program, which facilitates
Contractors are an important to get the correct and on-ground inspection of confined spaces
stakeholder, given their importance information from the market. through the use of drones. The
to the individual house builder (IHB), concept of connecting mines through
the Mines of Tomorrow initiatives was
also introduced.
Logistics
The Transport Analytics Center
(TAC) is helping us enhance logistics
efficiency through route optimisation,
cost optimisation and increase road
safety. We are leveraging BlueYonder
and other software packages to drive
logistics efficiency in the organisation.
76%
Safe kms through TAC

Concrete steps
to reduce carbon
footprint
Climate action is no longer Sensing the urgency to combat climate

change, we have developed 2030 carbon
an option but a time-bound emission reduction targets, validated by the
imperative to limit global Science Based Targets initiative (SBTi). We
have also partnered with Carbon Disclosure
warming to well below 2°C. In Project (CDP) India’s SBTi Incubator Program
line with the Holcim Group’s to put in place a decarbonisation roadmap.
Net Zero pledge, we are We are also enriching the low-carbon building
integrating sustainability into materials value chain with innovative green
solutions, such as Ambuja Kawach that has
the organisational culture, 30% lower carbon footprint as compared
prompting our people to come to OPC products and Ambuja Buildcem
that uses fly ash to produce high strength
up with concrete measures to Portland Pozzolana Cement (PPC) while
reduce carbon emissions and conserving natural resources. Ambuja Cool
Walls replaces clay brick walls with pre-cast
lower energy intensity; and concrete inbuilt with a special heat barrier
increase the share of clean and technology that keeps houses 5oC cooler
during summers and warmer in winters.
renewable energy.

we are setting new

industry benchmarks
and elevating our own
sustainability quotient.
It is imperative to push
for the decarbonisation
agenda as that is what
we must do. And it is
the ethos that
will ensure growth and
sustainability go hand-
in-hand for a shared
future.

Natural
capital
We understand that we can play a significant
role in promoting sustainable development
and limiting climate change. We have stringent
controls in place to ensure that we manufacture
sustainably through prudent resource allocation,
energy saving initiatives, efficient waste
management and adoption of technologies that
reduce our carbon imprint. We are increasingly
using waste derived raw materials, waste derived
alternative fuels and evolving our product mix to
create greener products.
Government
Dealers Employees and regulatory
authorities
Suppliers Community

− Biodiversity − Circular economy − Customer
satisfaction
− Sourcing of water − CSR
− Energy efficiency
− Land acquisition − Sustainable supply
for mines and new chain − GHG emissions and
operations climate change
− Compliance
− Relocation and with regulatory − Other air emissions
rehabilitation (post requirements
− Waste management
mine closure)
KEY RISKS ADDRESSED

− Environment and sustainability
SDGS IMPACTED


key initiatives
CLIMATE AND
ENERGY
− Maximise usage of alternative fuels
and mineral component in cement 2.2 Kg
reduction in CO2
− Expanding solar panel farms, waste
emission per
heat recovery system
tonne of cement
− Accelerating green solutions
− New technologies that help in
reducing carbon footprint 3%
reduction in Specific
Thermal Energy
Consumption
WATER AND
− Higher use of recycled water
8x
FOCUS AREAS
and rainwater harvesting

NATURE water positive
− Develop innovative products
that reduce water usage for our
customers
63%
clinker factor
CIRCULAR
ECONOMY
− Partnering for clean
India through Geocycle 8.6 MT
of waste
co-processed
3.5x
plastic negative

Capital-wise performance >> Natural capital
OVERVIEW CLIMATE AND ENERGY

We associate with various regional Carbon emission
and global bodies to implement our Aware of the cement industry’s contribution in GHG emissions globally, we have
sustainability objectives, particularly undertaken a four-pronged strategy to reduce our carbon emission.
those related to the environment. In
2020-2021, we participated in a pilot
project on Natural Capital Accounting
Use of alternative Waste heat recovery
and Valuation of Ecosystem Services-
materials to reduce and use of Renewable
Business Accounting Pilot Case
clinker factor Energy (RE)
(NCAVES) with UN Statistics Division
(UNSD) based on which a case study
has been published by the UN (https:// 7.5
seea.un.org/content/business-and-
mn tonnes
in 2021
Arrested fr
natural-capital-accounting-case-study-
CO2
ambuja-cement-india). The project was
supported by the European Union.
ere
ph
om
We continue to invest in improving our
ei
os
ng atm
b
environmental performance, which Improve energy Optimise fuel
rele
results in significant cost savings. efficiency (thermal ased into the composition, along
During 2021, we spent ~ `31 crore and electrical) and with the use of waste
towards climate change resilience, process technology as alternative fuel
including environmental protection,
energy efficiency, compliance
management, etc., which led to savings
of `5 crore. In alignment with World Business to fuel combustion in kilns or from
Council for Sustainable Development onsite energy generation and clinker
At the end of 2021, three cases (WBCSD) Cement Sustainability production. Scope 2 emissions are
involving environment-related issues Initiative (CSI) CO2 protocol, we associated with purchased electricity
were pending in different courts. monitor and report our emissions from grid. Scope 3 emissions include
No significant fines or penalties from all manufacturing locations. other indirect GHG emissions, including
(>$10,000) were incurred in 2021. No We disclose our environmental emissions from purchased products
formal grievance about environmental performance as per CSI and GRI and services, fuel and energy-related
impact had been filed through the guidelines and annually in the Carbon activities, upstream and downstream
various grievance mechanisms during Disclosure Project (CDP) and Dow transportation and distribution, waste
the reporting period. Through our Jones Sustainability Index (DJSI). generated in operations, business
advocacy and action, we intend to travel and employee commuting among
ensure that climate change measures Our Scope 1 emissions include direct others.
are integrated into national policies, emissions from owned or controlled
strategies, and planning. sources, including emissions due Performance in 2021
− Scope 1 Specific net CO2 per

tonne of cementitious materials
was 528.8 kg, down 31.5%
(taking 1990 levels as the
baseline)
− Scope 2 Specific CO2 per tonne
of cementitious materials was
22 Kg (decreased from 24 Kg in
2020)

Scope 1: Absolute gross CO2 emissions data, except for data on captive Performance in 2021
power plants and other stacks, is
including onsite power generation
made available on the website of the As a percentage of total operating
(million tonnes CO2) regulatory agencies. Further, we have cost, energy cost stood at 30%
2021 16.2 invested in Selective Non-Catalytic against 24% in 2020. About 63%
2020 13 Reduction (SNCR) systems, new of our power requirements are met
Electro-Static Precipitators (ESPs) and through captive energy sources.
2019 14.5
baghouse modifications, reinforcing
2018 14.8 our commitment towards emission − Thermal energy efficiency stood
minimisation. at 3,122 MJ/tonne clinker as
against 3,218 MJ/tonne clinker
Specific Scope 1 emission: Absolute
gross CO2 emissions including onsite Average NOx specific concentration − Electrical energy consumption
(Gramme per tonne of cement) stood at 73.94 kWh/tonne of
power generation (kg CO2/tonne of cement)
cement against 77.05 kWh/tonne
534.8 2021 596
2021 of cement
528.8
2020 811
536 − Alternative Fuel (AF) in the kilns
2020
531 2019 850
helped achieve a TSR of 5.1% of
538 2018 1,111
2019 the total thermal energy vis-à-vis
531
536 4.2% the previous year
2018
530 Average SOx specific concentration
Gross Net (Gram per tonne of cement) Specific thermal energy consumption
2021 72.9
(MJ/tonne of clinker)
Scope-wise emission (%)
2020 44 2021 3,122
10.4 86.4 2019 43 2020 3,218
3.2 2018 43 2019 3,221
2018 3,178
Average dust specific concentration
2021 (Per tonne of cement) A detailed list of various energy
efficiency measures taken are listed
2021 17.3 in the Annexure – VI (Page 152), and
2020 23 also available on ambujacement.com/
investors/annual-reports
2019 16
3 85
2018 22 Renewable energy
12
Renewable energy remains a key factor
Energy management for reducing our carbon footprint.
We are undertaking measures to
2020 reduce our energy intensity across
the cement value chain and have
implemented ISO 50001:2011
2.7%
Share of renewables in total power
standards to augment our energy generation in 2021 (1.4% in 2020)
management system. We are working
Scope - 1 Scope - 2 Scope - 3 relentlessly to increase the share of Performance in 2021
renewables such as solar, biomass,
Other emissions and wind in the energy mix. We are − The Rabriyawas unit in Rajasthan
Our manufacturing process does not using alternative fuel and raw material started sourcing solar-based
emit any ozone depleting substance (AFR) and waste heat recovery to power through Power Purchase
(ODS). The ODS data covers only core increase our energy efficiency. We use Agreement (PPA) (project capacity
processes and not the administrative waste derived raw materials like fly of ~ 5.14 MW)
facilities, which include office buildings, ash, slag, and waste gypsum etc. in − WHR power generation of 441
staff quarters among others at plants our manufacturing process, which has kWh lakh units in 2021 as against
and offices. The installed continuous resulted in lower clinker factor. We have 355 KWh lakh units in 2020
monitoring systems across our plants also optimised our processes for use of
help us monitor NOx, dust/particulate low-grade limestone and waste derived
matter and any other significant alternative fuels. We are proud to have
emissions from our ten kilns or raw set new benchmarks in the industry in
mill stacks. Real-time display of this energy use.

Operational renewable energy portfolio of Ambuja Cement
30 MW 7.5 MW 330 kV 55.14 6.5 MW

Coal and
biomass-based
power plant at
Wind power
station at Kutch,
Gujarat
Solar power
station at
Bhatapara,
kWp
Rooftop solar
WHR based
power generation
system at
Ropar, Punjab Chhattisgarh PV project at Rabriyawas,
Gurgaon office Rajasthan
We use biomass at the captive power than other processes. And now, our
Performance in 2021
plants as well. Along with renewable products are helping minimise the use
energy certificates, the power cost of water in construction. Our steadfast
− Total volume of water withdrawn
optimisation strategy also helps us efforts in ensuring water efficiency
for all our operations increased
add value to power sourcing and be enabled us to turn 8x water positive
5.17% to 6.1 million cubic metres
compliant in renewable purchase in 2021.
(million m3) from 5.8 million m3 in
obligations.
Five of our plants are located in water 2020 due to over 16% increase in
scarce regions and we comply with all cement production
Thermal energy from alternative water related regulatory requirements.
fuels (TJ) At our plants, we are maximising the
− However, we significantly
reduced specific freshwater
use of recycled water that has been
2021 2,963 withdrawal (operational) to
treated at our effluent treatment plants
2020 2,818 58 litres per tonne of cement
as well as reverse osmosis plants.
produced (77 litre in 2020)
2019 3,479 Recycled water is also used for dust
2018 3,546 suppression and gardening, along with − Total net freshwater consumption
other purposes. marginally declined from
4.27 million m3 in 2020 to
WATER AND NATURE At the community level, we have
4.13 million m3 in 2021
Water is among the key pillars of our undertaken water conservation and
Sustainable Development Plan 2030. rainwater harvesting projects under − Few locations discharge
Our dry process of cement production the aegis of the Ambuja Cement wastewater through septic tank
requires significantly less water Foundation (ACF), our CSR arm soak-pit but total discharge
(Details can be found on page 80 & 81 (24,168 m3) is less than 0.4% of
of this report). our total water withdrawal

15%
UNMATCHED FEAT We are in the process of implementing
mitigation hierarchy for our biodiversity
1st ever by any cement company management and conservation efforts
Of total water withdrawn was recycled
in the World, Ambuja Cement has which includes three key elements:
in 2021 (15% in 2020)
been recognised for its leadership in avoid, minimise and restore. We avoid
Water Security 2021 by CDP, the undertaking operations near any of
Our water sustainability risk
global environmental non-profit, and the World Heritage Sites and IUCN
assessment framework has been
secured a place on its prestigious ‘A Category I-IV protected areas. Our
developed in association with the
List’ for tackling water sustainability. operating sites are not located adjacent
International Union for Conservation of
This achievement reaffirms our will to indigenous peoples’ territories.
Nature (IUCN). It considers business/
to remain committed to addressing
company risks as well as the basin
water scarcity in the future and We plant trees on the overburden
risk, covering various risk aspects and
contributing to the establishment and area around the mines and on
identifying units with water stress.
of a sustainable tomorrow. The the mine lease boundaries, which
three initiatives – concrete mix helps reduce dust pollution and
This assessment also uses the World
proportions, modular curing, and promotes the absorption of carbon
Business Council for Sustainable
rainwater harvesting – helped us emissions and preservation of
Development (WBCSD) Global Water
save ~70 million litres of water, and regional biodiversity. We regularly
Tool. Scenario analysis to identify the
promote sustainable construction train our team members working
potential impact on operations has
initiative. We will continue to closely with communities to ensure
also been conducted using country
advocate for environmentally- minimal impact on the biodiversity.
Specific India Water Tool. True Value
friendly solutions by actively taking Our overburden/interburden or waste
assessment for water interventions in
part in such initiatives. material is disposed of separately in
2021 indicated a contribution of `1,544
non-mineralised zones through an
crore.
excavator-dumper-dozer combination
as per the approved mine plan.
Surface water consumption (million m3) Biodiversity management
Progressive mine closure plans are
Our biodiversity policy is part of the
available as per statute for all locations.
2021 1.96 Group’s Quarry Rehabilitation and
2020 1.96 Biodiversity Directive. We adhere to
BIRS score
Indian national regulations and are
2019 1.92
a signatory to the India Business (Site Biodiversity Index on
2018 1.78 and Biodiversity Initiative (IBBI) of a scale of 1-4)
the Confederation of Indian Industry Units 2019-20 2016-17
Harvested water consumption (million m3) (CII), and Deutsche Gesellschaft für Ambujanagar, Gujarat 1.9 1.7
Internationale Zusammenarbeit (GIZ). Darlaghat, Himachal 2.1 2.1
2021 1.96 We also partner with organisations/ Pradesh
2020 1.49 industry associations like Global Rabriyawas, Rajasthan 2.3 2.1
Climate Change Alliance (GCCA) Maratha Cement Works, 2.1 2.0
2019 1.83
for biodiversity-related policy Maharashtra
2018 1.46 management, assessment and Bhatapara, Chhattisgarh 1.9 1.7
reporting guidelines.
Ground water consumption (million m3) Protected areas
As part of our Sustainable
Protected areas like the Majathal
2021 1.74 Development Plan 2030, we are
Sanctuary and Darlaghat Conservation
2020 1.49 committed to achieving ‘Positive
Reserve (both in Himachal Pradesh)
Change in Biodiversity’ (net positive
2019 1.83 are situated within 10 km of our mining/
impact) by 2030. For all our sites, we
2018 1.46 plant operations at Darlaghat. The Gir
carefully classify our ecological assets
sanctuary lies within 10 km of a mining
and maintain a biodiversity inventory.
site at Ambujanagar, Gujarat. We have
Water recycled (million m3) We also assess the net positive impact
prepared a wildlife conservation plan
through set KPIs every three years. For
for key species, approved by the state
2021 0.94 measuring this, we have implemented a
government, for Darlaghat. Biodiversity
2020 0.86 new baseline biodiversity assessment
Action Plan (BAP) for all our five plants
at our sites through a Biodiversity
2019 0.97 with mining sites is being implemented.
Indicator and Reporting System
2018 0.92 (BIRS) developed by experts from the
International Union for Conservation of
Nature (IUCN). BIRS assessments were
conducted in 2017, 2019 and 2020.

We continuously monitor biodiversity − Improving degraded habitats across PROMOTING A CIRCULAR ECONOMY
and set protection and action priorities sites through targeted habitat Through the Holcim brand, Geocycle,
for species like IUCN red data list and management plans and the waste management arm of
regional threatened species list. We Ambuja Cement, we have emerged as
− Working closely with the community
conduct periodic ecological study on a pioneer in the industry in effectively
to adequately manage the planted
species and habitats through our local utilising waste in kiln co-processing.
and rehabilitated areas and
partners such as the Gujarat Institute
partnering for the management of
of Desert Ecology (GUIDE), university Geocycle India is part of the global
any other adjoining offset areas
experts and research institutions to Geocycle network and has four
identify the causes of decline in species − Turning regenerated areas into dedicated pre-processing facilities
and take corrective measures. natural habitats by adopting new with installations for blending liquids,
forestry practices shredding solids and sludge and
Key aspects of our biodiversity homogenising waste before it is co-
− Carrying out mining operations and
management processed sustainably at five locations.
raw material transportation only
Partnering with local experts and forest Through Geocycle, we co-process
during the daytime near protected
department to develop comprehensive waste from other industries in our kilns
areas
biodiversity action plans with regional as alternative fuel, thus promoting a
measurable targets across sites, and − Providing mine tippers with a circular economy and reducing the
act on the outcomes of our assessment multi-cap covering system to use of coal, which, in turn, results in
avoid spillage of material during natural resource conservation and
transportation GHG mitigation. Geocycle has already
developed 14 co-processing facilities
across India around AFR storage areas,
feeding arrangement, and laboratories
FOCUS AREAS that support both ACC and Ambuja
Cement. During the year under review,
we co-processed ~3.7 million tonnes
of alternative fuels, substituting 5.1% of
total thermal energy.
5.1%
Thermal substitution rate
Water Positive (4.2% in 2020)
program (Plants
& Community)
ACCELERATED APPROACH IN NEXT
THREE YEARS TO TRIPLE TSR TO 15%,
Social WITH KEY PLANTS ABOVE 20% TSR
infrastructure for
resource − Market approach driven by
conservation footprint expansion of municipal
solid waste across key markets
Greenbelt Water leveraging Swachh Bharat
development & Harvesting Abhiyan and the Smart City
Native species & Recharge campaign
plantation
− Associated with 65+ cities for
managing legacy waste through
Greenbelt Habitat urban mining; 250,000+ tonnes
development & improvement of plastic used as alternative fuel
Native species across plants
plantation − Drive advocacy efforts on
Power Sustainable Wildlife recognition of co-processing
generation & responsible conservation at par with recycling, and
using biomass mining stakeholder interaction for
& waste practices inclusion of landfill tax and
guidelines on the usage of
chlorine dust in the cement
manufacturing process

CO-PROCESSING WASTE IN CEMENT KILNS Performance in 2021
− We consumed ~2.8 lakh tonnes Further, with Geocycle, we are

of alternative fuels (AF) in kilns expanding our footprint across
Completely Recovers energy and ~0.9 lakh tonnes of AF in key markets for managing Refuse
decomposes and recycles our captive power plants against Derived Fuel (RDF) and EPR
waste through mineral value of 1.9 lakh tonnes and 0.9 lakh (Extended Producer Responsibility)
high temperatures waste, if any tonnes in 2020, respectively. plastics through the following ways:
and long This resulted in a TSR of 5.1% of
− Tie ups with municipalities of
residence time the total thermal energy against
Tier 1 cities and villages near the
4.2% in 2020
plants
− We consumed ~8.6 million
tonnes of waste-derived • RDF: Utilise 1.2 million tonnes
Leaves no Leads to alternative raw materials like fly of RDF by 2025
residue conservation of ash, slag, phosphogypsum in the
• EPR plastic waste: 300 kilo
natural resources manufacturing process against
tonnes by 2025
7.3 million tonnes in 2020
− Our incremental use of fly ash; − Complex waste and LFP waste:
water harvesting and recharge Market mapping and agreement
projects; agro-based livelihood in progress with key industry
Reduces Offers local
creation; and use of AFR resulted players. Spent potlining waste
greenhouse gas waste management
in net positive contribution to the usage in January 2022.
emission solution
environment and society to the
tune of more than `2,000 crore in
2021 compared to ~`750 crore
in 2012
Saves public Promotes a
funds circular economy

Partnering for clean India
Geocycle Bubble Cleaning up

Barrier airports and ports
− 2022 : 3 projects in the pipeline : − Dry waste collection and co-processing
Varanasi on river Ganga, Gujarat on river from airports, ports, customs
Vishwamitri, Himachal on River Beas
− 10 additional bubble barriers to be set up
by 2025
Leave Behind no Waste Community Clean Up

Initiative #LBnW Direct sourcing of biomass from farmers at
Rabriyawas
− Ambuja and ACC partnership with BCCI for − Reduction in open burning of agricultural waste
post match clean up across stadiums during − Sustainable source of alternative fuel
T20 series
Project #BHOOMI
− Municipal solid waste and plastic waste
management of villages and towns near plants

PUTTING A BARRIER
Plastics in our water bodies are
causing irreversible damage
to the environment and thus
public health. That is why Holcim
brought two cement giants of
India to solve this problem. What
emerged can be termed as
the lightest approach from two
corporate heavyweights: a bubble
curtain. Through the bubble
barrier technology, channelised
bubbles push plastics to a
collection point, after which they
are ecologically co-processed in
cement plants. This pilot project
at the Mantola canal in Agra is
expected to remove 2,400 tonnes
of plastic, with more cities slated
to receive their own bubble barrier.
The initiative is in line with the
government’s Swachh Bharat
initiative, and a big step towards
realising our vision of a better
tomorrow.

When a stream
of positivity
flows, every
drop matters
Water has been the key This is what was being faced by local
residents of over 50 water-stressed villages
focus area for us ever since in Rajasthan and Maharashtra who realised
inception. Our efforts have that the only way out was to tackle this
issue head-on. Their local representatives
been acknowledged with the (panchayats) approached Ambuja’s CSR arm,
latest recognition we received the Ambuja Cement Foundation to provide a
viable plan with technical knowhow.
for leadership in water security
in CDP 2021 with the best-ever First, a detailed site study was conducted in
partnership with ATE Chandra Foundation,
‘A’ score. Globally, Ambuja is which revealed 17 defunct water bodies
the only cement company to could be restored once the pits were cleaned
and desilted. Community members stepped
have achieved this feat. in with tractors and excavators and these
volunteers successfully unearthed over
With growing water stress over the past few
1,66,000 cubic metres of silt that was spread
decades, Ambuja has been addressing water
over agricultural land.
scarcity issues especially in our communities
where erratic rainfall and inadequate irrigation
Water storage capacity expanded by 166
coverage has increased groundwater usage
million litres and 550 tube wells recharged.
in farming, leading to steadily depleting water
With the immense benefit staring them in the
beds.
face, the villagers readily shouldered 75% of
the project cost. The arrival of monsoons gave
a fresh lease of life to the water bodies and
rejuvenated the villages.

It is innumerable
efforts like this
for the sustainable
consumption of natural
resources that has
ensured us a place in
the sun. Today, Ambuja
Cement is the only
company to be certified
over eight times
water positive - amply
displaying the
spirit to systematically
shape our destiny
and create a shared
prosperous future.

Social
Capital
At Ambuja Cement, the community is
considered the primary stakeholder of the
Company. Our holistic community development
initiatives are implemented under our CSR arm
– Ambuja Cement Foundation (ACF) – which
engages at the grassroots level to assess
community needs and priorities so that our
intervention is evidence-based and effective.
Community

− CSR − Transparency and corporate
governance
− Health and safety
− Economic impact
− Human rights
− Public policy and advocacy
− Code of conduct
KEY RISKS ADDRESSED

− Environment and sustainability − Water availability
− Maintaining market position − Licence to operate
SDGS IMPACTED


key initiatives
COMMUNITY
− ACF continued to focus on its key
intervention areas while supporting `64.41 crore
FOCUS AREAS
SUPPORT national efforts in countering the spent on CSR activities In

COVID-19 pandemic CY2021
2.8 million
lives touched In CY2021

Capital-wise performance >> Social Capital
OVERVIEW WATER RESOURCE

At ACF, we harness the power of Our social MANAGEMENT
collaboration—among communities,
governments (at the state and central
intervention areas
levels), NGOs and corporates—to
promote inclusive development. We
strongly believe that for a business
to prosper, it is essential to foster the Water Resource Agro-based
prosperity of the communities within Management livelihood
which it operates. Our community-
specific interventions start well before
we secure land for our operating sites
and we remain keenly involved in the
holistic development of the lives of Skill-based Health and
the people in and around our areas livelihood sanitation
of operation. Our aim is to maximise
people’s participation in community
development by creating village-level
institutions, and to invest in capacity
building to ensure that the implemented Women Education
projects are self-sustaining. empowerment
Water conservation has been of
APPROACH TO CSR designated areas while undertaking
paramount importance to Ambuja
Our CSR activities are governed by Cement since the beginning of
other initiatives to safeguard the
our Sustainability and Corporate its operations. We are enabling
communities against coronavirus
Responsibility Committees with communities to face challenges such
and participating in the immunisation
Independent Directors at the helm. Our as water scarcity by promoting water
programme rolled out by the
well-formulated CSR Policy lays down conservation, ensuring adequate
government.
in detail our CSR objectives and work availability of clean and safe drinking
in accordance with Schedule VII of the water, water quality testing and
Companies Act, 2013. COMMUNITY ENGAGEMENT TO encouraging judicial water use through
MAXIMISE IMPACT the use of sprinklers and micro
Our community initiatives are carried irrigation system.
out across 11 states around our We have consciously focused on
manufacturing sites. Besides, we run partnering with the community Partnering with like-minded
the following projects: to ensure that the interventions organisations, corporates and
were community-led. This is government institutions, our water
− Five English-medium schools, under essential to amplify the impact conservation initiatives have helped
the Ambuja Vidya Niketan Trust, that of all development projects. We transform the scenario in some of
provide quality education require the communities to invest the critically water-starved areas of
in the initiatives, through financial the country. We ensure that no water
− A multi-speciality hospital at
support or in-kind contributions, source or protected area (nationally or
Ambujanagar under the Ambuja
to ensure that they come to value internationally) is disturbed by water
Hospital Trust
these projects and they themselves withdrawal. We ensure sustainable
− Our dedicated data management become agents of change. Keeping withdrawal, water efficiency, water
and research cell monitors this objective in mind, we have harvesting and groundwater recharge
the progress of projects and organised farmers’ clubs, farmer to help maintain water tables.
conducts mid-course evaluation producers’ organisations, women’s
to understand if the projects are federations, water-user groups, We have developed a water
being implemented correctly and are village development committees sustainability risk assessment
creating value for the community. among others. ACF also focuses on framework in association with the
All mature projects are subject to developing village-level leaders for International Union for Conservation of
evaluation and impact assessment. effective on-ground execution of the Nature (IUCN) to understand business
External consultants and institutions projects. Deloitte was engaged to risks as well as the basin risk, and
support us in carrying out impact conduct an impact assessment of identify units with water stress. This
assessment of critical projects. core (mining) villages in Rabriyawas, assessment also uses the WBCSD
Rajasthan. The study highlighted the Global Water Tool. Two of our plants
In 2021, despite the challenges created positive change in terms of water are in water scarce regions. We comply
by the pandemic, we continued with availability, improved livelihoods and with all regulatory requirements on
our community interventions in the overall growth. water.

Our water conservation initiatives Through our Agro-Based Livelihood

have led to our inclusion in the ‘A’ Initiatives, we are building farmers’ SKILL-BASED LIVELIHOOD
list of CDP, which is a testimony to capacities, introducing science-based INITIATIVES
our commitment to our sustainability farming practices and encouraging
mission. We are the only company in enhanced use of technology. The
the world to have achieved this feat. initiatives are being implemented in 17+
locations across nine states, covering
Key highlights 2021 more than 2 lakh farmers. Besides, we
are also encouraging projects related
to animal husbandry including dairy,
− Developed and revived 159
poultry, aquaculture, goat farming
water harvesting and recharge
among others. Better Cotton Initiative
structures with cumulative
(BCI) remains a core interest, which
storage capacity of 59.73 million
now covers 1.73 lakh farmers.
m3. This includes village ponds,
During the pandemic, we extended
check dams, ‘khadins’ and farm
these initiatives by offering insurance
ponds
opportunities to individuals who had
− Renovated and strengthened lost their regular source of income.
205 drinking water sources
and supported 773 households
Key highlights 2021 The Skill & Entrepreneurship
with construction of Rooftop
Development Institutes (SEDI) is an
Rainwater Harvesting Systems
initiative of ACF which aims to provide
(RRWHS) − 18,886 households of small
youth with training, employment and
and marginal farmers and
− Developed 940 Ha of watershed business opportunities to help them
landless families benefited
through water and soil achieve their aspirations in life and lift
through intervention in vegetable
conservation initiatives their families out of poverty. Currently,
cultivation, fishery, goatery and
we have more than 35 SEDI centres
− Water quality testing encouraged poultry-based enterprises
active in 10 states across the country.
in 67 core villages across ACF
− Continued to strengthen 17 We continue to partner with other
locations
Farmer Producer Organisations organisations including corporates to
− Facilitated by ACF, 2,281 with a total membership of train SEDI students and provide them
households in 12 villages ~8,000 farmers with placements.
received tap water connections
− Better Cotton Initiative (BCI)
under the Jal Jeevan Mission in Sattva Consulting undertook an impact
remains the largest program
Ambujanagar assessment study of SEDI, highlighting
with an overall reach of 1.73 lakh
the best practices of the peer
farmers through 5,228 farmer
organisation along with benchmarking.
groups in 1,451 villages
AGRO-BASED LIVELIHOOD − Focused on farmers’ capacity

Key highlights 2021
INITIATIVES building, reaching out to 2.20
lakh farmers; 54,263 farmers
− Set up three new centres in Una,
trained under Integrated Crop
Lucknow and Udaipur
Management
− SEDIs trained 6,462 young adults
− Conducted 1,500 demonstrations
and placed 4,104 of them, at a
on different aspects of crop
placement rate of 63%
production to help farmers
gain more understanding and − Expansion of funding partners
knowledge and renewal of certification
partner, National Skill
− Planted 9,00,000 trees of a target
Development Corporation
of 1 million trees in Chandrapur
(NSDC)
under plantation and horticulture
projects
81,200+
− Entered a new partnership to
support 10,000 farmers for
organic farming
Youths trained through
SEDI till date

HEALTH AND Key highlights 2021

SANITATION
− Our village health functionaries − Installed 3 napkin-making
(Sakhis) helped expand our units in village institutions for
Maternal and Child Healthcare biodegradable sanitary napkins,
(MCH) interventions in villages, and enabled menstrual hygiene
reducing maternal deaths, neo- management and income
natal mortality, still births and generation for women members
helped institutionalised delivery of SHGs
rate to reach 97% in our impact
− Extended malnutrition program to
villages
100 anganwadi centres
− Initiated 9 community clinics and
− Initiated a focused programme
mobile medical units with the
inducting village leadership
support of village panchayats
to deal with rise of non-
and village development
communicable diseases,
This remained a core focus area, given committees, reaching 3,672
especially hypertension and
the adverse impact of the pandemic beneficiaries. Specialty camps
diabetes; programme reached
on public health. During the year, we organised for 6,157 beneficiaries
97,000 people in 167 villages
widened the scope of our intervention
− ACF had been among the first
and included mental health under the − Treated 31,245 patients in
to initiate HIV/AIDS prevention
ambit of our health-related initiatives. Ambujanagar Multispeciality
measures for truckers through
Besides, malnutrition also emerged as Hospital
its Health Care Centres (HCC).
an important area of action.
In 2021, 55,075 truckers were
reached across 4 locations
12,800+
Women and adolescent girls
− Initiated mental health
interventions in 4 locations
covering 101 villages
benefited through the Menstrual
Hygiene Management Program
CARING FOR THE TRUCKER COMMUNITY
Truckers are a major stakeholder truckers, holding frequent health

at Ambuja Cement, with ~ 6,000 camps and awareness sessions
truckers entering and exiting our to inculcate responsible behaviour
plants every day. Ensuring their among the community. Truckers
health and safety is a matter of were also a major component
high priority for us. stakeholder group for its initiatives
during the pandemic and
Long and irregular work hours, vaccination drive.
extended periods of stay away
from their families, challenging road In Bhatapara, ACF has tied up with
conditions and stress affect the the government hospital to conduct
physical and mental well-being of HIV/AIDS screening camps on a
truckers. Through frequent camps, quarterly basis at the truck yard.
vulnerability to sexually transmitted Through awareness sessions and
diseases, Non-Communicable frequent meetings the truckers
Diseases (NCDs) and poor eye- union and transport association
sight emerged as common health encourage their truckers to visit
risk indicators. Under its health these camps. This awareness
program, ACF, along with its creation has led to truckers freely
partners, has been focusing on the coming forth to get tested and are
health and general well-being of incorporating lifestyle changes.

WOMEN Key highlights 2021

EMPOWERMENT
− ACF promotes women led Self − Trained women in tailoring under
Help Groups (SHGs) to build the livelihood enhancement
capacity in managing accounts, programme; 4,52,000 face masks
credit rotation and income were made and sold to health
generation. During the year under authorities, medical stores and
review, 207 new SHGs were even to Ambuja Cement
promoted, taking the total to
− Strengthened micro-enterprise
2,970 SHGs, with a membership
initiatives across 17 locations,
of 35,099 women managing a
where income generating skills
total corpus of `27.14 crore
such as tailoring, mask-making,
− Established 3 new federations, pickle-making, sanitary pad-
taking the total to 8, and making, cleaning and hygiene
supported them in governance product marketing etc. are taught
and operations to women
Women play a critical role in inclusive
development and, thus, national − ACF assisted 525 SHGs to apply − Around 368 women are engaged
progress. We focus on empowering for the COVID Sahay loan and as Sakhis, 9,527 in various
rural women and initiated projects like received `4.26 crore as livelihood income generating activities and
drinking water supply and health and support 115 as Pashu Swasthya Sevikas
sanitation and engage them in social (Para vets)
and economic activities to ensure
overall rural prosperity.
Apart from improving school

Key highlights 2021
EDUCATION infrastructure, we focus on
programmes aimed at enhancing
− Promoted capacity building in
access to quality education in the
physical education for the staff of
locations where we operate. To make
62 schools
learning more engaging and interesting
we are helping introduce teaching aids − Set up four mini science labs
in classes and building capabilities in Rabriyawas, Ambujanagar,
of students and teachers. Ambuja Darlaghat and Bhatapara
Manovikas Kendra (AMK), a school
− Established libraries in
for specially-abled students, caters
Ambujanagar and Darlaghat
to 134 children. During 2021, 106 of
them were enrolled under regular − Initiated water quality testing in
schooling programme, 10 under home- schools at three locations; the
based rehabilitation and 18 at the skill reports were shared with the
development centre. school management committee
for follow up
Our ‘Make India Play’ programme is
− Students of AMK were honoured
gaining traction in schools. We believe
by the Punjab State Government
that sports plays an important role in
for Best Sportsperson with
the development of the country’s youth.
Disability; AMK Principal
awarded Best Individual Working
with People with Disabilities

CONTINUING SUPPORT DURING THE

PANDEMIC
With the pandemic still impacting the
lives and livelihoods of communities
across the country, we continued
to provide multi-pronged support.
This included building public
awareness of Do’s and Don’ts, as
well as promoting the government’s
immunisation drive. We trained
community members as COVISainiks
to volunteer in activities to combat
the pandemic and assist the local
health system. We also undertook
various initiatives to support
individuals who lost their jobs due to
the lockdowns.
Key highlights 2021
− Trained 6,347 people as − Provided 204 vaccine carrier

COVISainiks; 2,576 are currently boxes to Community Health
volunteering at hospitals and Clinics and other institutions at
community clinics various locations
− Distributed 2,200 COVID-19 − ACF supported the public
kits to volunteers and frontline healthcare system by supplying
workers across ACF locations 460 oxygen concentrators and
during October to December 130 oxygen cylinders in 2021
2021
− ACF supported 250 vaccination
− Received appreciation certificate camps conducted by Ambuja
from the Department of Health Cement; 12,535 vaccinations
& Family Welfare Office of CMO, done for Ambuja Cement
Solan district, for our efforts to employees and their families;
promote vaccination 9,008 truckers vaccinated and
10,229 third-party vaccinations
− Invested resources in setting up
achieved
6 oxygen plants
2.7 million
Community members from ACF
villages were vaccinated

MAKING POSITIVE IMPACT AT MARWAR

ACF has been actively engaged in
the socio-economic development
initiatives in villages around our
plant at Marwar since 2005, when
we began talks for acquiring land
for our operations. The area is a
water stressed region and thus
water resource management was a
priority. ACF began by reviving one
of Marwar’s major ponds, Lakholav,
which is the community’s lifeline
and the main source of water. ACF
is also working on other initiatives
in the region such as skill-building,
health and sanitation, promotion
of rural infrastructure and women
empowerment to improve the
socio-economic status of the
communities.
ACF today works in 12 core

villages of Marwar, reaching
out to 35,000 people directly or
indirectly through its CSR initiatives.
ACHIEVEMENTS
− ACF certified Great Place To

Work in the Non-Profit & Charity
Organisation category
− Won the 3rd ICC Social Impact
Awards 2021 for women
empowerment and healthcare
− Organised a virtual round-
table on ‘Gender Equality in
Manufacturing’ with GRI, South
Asia. Speakers and panellists
included leaders from the
manufacturing industry and UN
representatives

We built a
Darpan (mirror)
that reflects
capabilities
Contractors are a critical “Why can’t we develop a one-stop platform
for contractors’ business needs?” asked a
bridge in our relationship team member overseeing our engagement
with customers and other with them. To turn the idea into a reality, the
technology team got to work. And an app
stakeholders, especially was born, Ambuja Darpan, which mirrored
Individual House Builders the contractor’s needs as it provided round-
the-clock access to tools for running their
(IHBs). Their onsite presence is business efficiently and showcasing their
crucial as they are responsible capabilities. The multilingual app was
equipped with a live compass, Vaastu tips,
for project execution and event calendar, product guide and an Ambuja
managing men (labour), dealer locator, among other tools.
materials and method The popularity of this app has grown multi-
(construction practices). fold. And the Ambuja Abhimaan programme
that pro-actively engages over 60,000 key
However, most contractors do contractors has now empowered them with
not have formal training for the the Darpan app.
job and even lack office space
to conduct their business in an
organised manner.

Understanding
the needs of this
critical stakeholder,
empowering and
enabling them to
chart their own
success stories, is
a reflection of the
quintessential
spirit that is embodied
within the fabric of the
organisation.

Relationship
capital
Our relationship capital relates to the
intangible value inherent in our ties and shared
commitments with our business partners,
consumers and other external stakeholders. We
ensure quality products reach our customers
through our deep distribution network, catering
to their diverse needs and also provide them
value-added services that help them build
sustainable, resilient structures.
Government
Suppliers and regulatory
authorities
Construction
Dealers
professionals

− Procurement practices − Compliance with regulatory
requirements
− Sustainable supply chain
− Marketing communication and
− Green supply chain
reputation
(logistics and transport)
KEY RISKS ADDRESSED

− Maintaining market position − Competition
SDGS IMPACTED


key initiatives
CUSTOMERS
We continued to drive customer
value through innovation, `89.25
responsible products, engagement
initiatives and good customer
service
crore
Advertisement and
Promotion (A&P) spend
in CY2021
DISTRIBUTORS
Strengthen distributor connect
with various initiatives 1,850
Dealers added
in 2021
FOCUS AREAS
4,200
New retailers
onboarded in CY2021
SUPPLIERS Focus on local suppliers

92%
local procurement
`11,975
crore
paid out to 8,312
suppliers in CY2021

Capital-wise performance >> Relationship capital
We relentlessly work towards creating
OVERVIEW CUSTOMER CAPITAL a product portfolio that provides
An enduring relationship with our It is our goal to become the best retail
superior strength and quality and
business partners, suppliers and construction brand in India, but we also
provides hassle-free construction for
contractors and channel partners are understand that given India’s diversity,
our customers across the country
essential to retain our competitive edge multifarious strategies are required
with diverse climatic conditions. Our
in the market, extend our reach across to serve our wide customer base. We
base product is a premium offering
geographies into new markets and ensure that all our customers get equal
with superior strength. Additionally,
capitalise on emerging opportunities and complete focus. Hence, we have
we have a special products category
in the industry. Equitable contracts, different dedicated teams for both our
that provide additional benefits to
collaboration and information sharing segments—Trade and B2B. We cater
our consumers. For example, strong
are necessary for maintaining the agility to Individual House Builders (IHBs),
and cohesive concrete (Ambuja Plus,
of our supply chain. As a customer- institutional projects, commercial
Compocem in East) or and water
centric company, it is equally important projects, mass housing, infrastructure
repellent (Ambuja Kawach) properties.
for us to meet our customers’ projects (roads, dams, bridges etc.).
present and emerging needs, and By ensuring lower lead time, additional
growing expectations related to Customer segment (%) technical services support and product
the sustainability of our processes, demonstration, we have been able to
products and practices. Our brand 20
improve acceptance for our special
reputation as well as business products. Our on-ground branding
sustainability hinge on the trust and and digital marketing efforts have
loyalty we inspire among these key also improved the pull factor for these
stakeholders. 2021
2020 products. During 2021, we reported
substantial increase in the special
To execute market specific strategies, 80 products volume against that in 2020
we focus on the following: by both push and pull levers.
Our core value proposition for
− Creating synergies between all our
19 our customers is our product and
resources, external partners and
services offerings for every stage of
consumers
the construction process. In line with
− Driving change in purview of our 2020 this, we have introduced the ‘Ambuja
stakeholders’ needs and wants Certified Technology’ campaign to
81 present Ambuja Cement as the go-to
− Analysing the potential threats and
solution for all construction needs by
opportunities for 360-degree value
promoting the use of right products,
creation
right services and right techniques
− Ensuring continuous skill-building Retail Institutional during construction.
of all our business partners and
contractors for their long-term
business growth

AMBUJA CERTIFIED TECHNOLOGY HOUSE
We will continue to strengthen the one sustainable product under the We measure brand equity by
products and solutions portfolio under ECOPlanet category and create more conducting brand health studies on
the umbrella of Ambuja Certified value for our customers. individual customers. The satisfaction
Technology. We aspire to establish level of dealers is evaluated using
ourselves as the most sustainable CUSTOMER SUPPORT AND SATISFACTION the Net Promoter Score (NPS)
construction brand in India and will be Our unmatched product portfolio, methodology. We also have an internal
looking to add more green products superior customer servicing philosophy system of getting feedback from the
to our portfolio. We would also like to and an always-available culture help market through virtual means.
penetrate our rural and semi-urban ensure highest level of customer
segments further and capture all satisfaction. We systematically measure Product quality complaints raised
the white spaces in existing markets customer satisfaction through our through toll-free number
using our technical services, ATL engrained channels and continuously (1800 22 3010) printed on all cement
and BTL activities along with digital improve our services to help them bags are managed through a customer
marketing. We are planning to launch build structures that are more resilient, complaint handling system.
resource-efficient and cost-effective.

Capital-wise performance >> Relationship capital
CUSTOMER ENGAGEMENT
Flagship projects using Ambuja cement products It has been our endeavour to delight all
our customers by offering the highest
quality of services and products.
Border Roads organisation (BRO)- Rohtang Dhaulasidh Hydro project
Tunnel We have been strengthening our
HPCL-L&T jetty project (Chara Gujarat) relationships with architects, engineers,
Border Roads organisation (BRO)- Leh contractors and masons to enhance
Bagodara Vasad highway project
Manali highway
the experience of our end consumers.
Daman Sea wall and sea link
Rishikesh Karan Prayag tunnel project
(RVNL- Rail Vikas Nigam Ltd)-Megha Ahmedabad Metro The past two years needed an
Engineering, Navyuga, Max Infra
Bhayla to Bagodra highway extraordinary approach to stay
Pandoh-Takoli road project – HP engaged with our customers as the
Mumbai Metro
Srinagar Airport- E5 infrastructure pandemic made physical interactions
Nagpur Metro difficult. We organised several mental
Zojila Tunnel J&K
Mumbai Trans harbour link and physical well-being sessions for
Holi Bajoli dam project - HP our external stakeholders, employees,
Mumbai Coastal road project
Jammu Ring road project and their families to tide over these
Samruddhi Mahamarg- Mumbai Nagpur tough times. We also organised several
Pakul dam project - Jammu expressway virtual bonding activities with our
Silkayara Barkot tunnel - Uttarakhand ( 4 IIT Patna channel partners and families. We
Dham project) have come up with focused mobile and
Nalanda University
Ramban Banihal Qazigund road tunnel web applications for each of our major
project, Jammu Medical College, Ambikapur, Chattisgarh external stakeholders, and we keep
AIIMS Bilaspur, AIIMS BHATINDA, AIIMS Joka Esplanade Metro Project adding new features to these apps
Awantipura, AIIMS Jammu Kolkata Police Training Academy, Shibpur
periodically based on the feedback
from them. We also remain connected
IIT Ropar, IIT Jammu University of Health Science, Salt Lake with customers through digital
IIM Jammu IIT Kharagpur platforms by conducting virtual meets.
Thermal Power plant Khujra Minerva Lokhandwala -Mahalakshami Race
For influencers, we have the Ambuja
course -Mumbai (under construction) Abhimaan platform, with a holistic
War Memorial Ambala
approach towards strengthening
relationships.
Other customer engagement

initiatives:
− To revitalise our brand and
strengthen its positioning, we
developed a mother-brand TVC
‘Deewar 2’ starring Boman Irani
and Vinay Pathak, which was
aired in September 2021 on major
national and regional channels. Post
campaign research indicated high
recall, engagement and enjoyability.
The digital campaign was a huge
success and garnered over 2 crore+
views. It was rated among the top 10
most-seen ads
− To boost our sales efforts and
build saliency, we launched our
10-second ‘Giant’ TV commercial in
December 2021. The TVC went on
air on leading national and regional
news channels in Rajasthan, Gujarat,
Maharashtra and Punjab
− In order to leverage the power of
cricket to develop a deeper connect

with people, we partnered with them to help them grow their business and safety. Suppliers who make up
Board of Control for Cricket in India and support them in delivering 80% of the allocated total spend are
(BCCI) as their official sponsor. We the best-in-class services to end classified as critical. 1,095 suppliers were
made heavy on-ground presence consumers. identified as ‘critical’ among the total
through branding on perimeter Tier-I suppliers. The top three categories
boards, ropes, sight screens, and
backdrops among others. Along with
BCCI and Geocycle, we embarked
300
.
New channel partners added in 2021
of critical suppliers include production
service providers (including manpower
contractors), facilities service providers
on collecting and recycling waste and logistics service providers.
generated in the cricket stadiums SUPPLIER ENGAGEMENT
and used it as alternative fuel in our We engage with our suppliers through We introduce our suppliers to our Code of
plants issues concerning health and safety, Business Conduct for Suppliers commonly
contractor safety management, known as Supplier Code of Conduct
− We also engaged with stakeholders
sustainable procurement, anti-bribery (SCC), and obtain their consent to follow
through festival/event specific films.
and anti-corruption directives, third- the Code, which sums up our expectation
During 2021, we developed four
party due diligence and automation from them in all procurement dealings. The
occasion-based films – for the New
in SAP-Ariba. We encourage our SCC covers standards specified in Social
Year, Diwali, Independence Day and
business partners to imbibe our Accountability Standard SA 8000 and
Republic Day. Each film generated
corporate values and demonstrate EMS ISO 14001. We intend to undertake
50 lakh+ views on digital platforms
good corporate citizenship and follow capacity building for our supplies so
sustainable practices. The Sustainable that they have their own sustainable
33,665 Procurement Initiative (SPI) includes

a thorough assessment of our
procurement policy.
New contractors enrolled on Abhimaan suppliers, who are mapped as per SPI Local suppliers (Nos.)
in 2021 guidelines on high, medium or low risk
parameters. 2021 8,243
43,000+
Sites provided with value added
In 2021, we engaged with 8,312
Tier-I suppliers and prioritised
2020
2019
7,597
8,260
services potential high-risk suppliers based 2018 7,792

on three categories − Anti-Bribery
53,000+
and Corruption (ABC), sustainable
development and contractor health
Customers connected through digital
platforms during the lockdown
DEEPENING OUR MARKET REACH

To improve our reach, we appoint
dealers and retail stockists who help
us deepen our market penetration.
We nurture our channel partners,
providing them with quality products,
strong influencers’ network, varied
on and off ground branding activities,
onsite value-added services and a
talented sales team. Our supportive
system, ethical business practices
and continuous efforts to deepen our
relationships with our external partners
have helped us stand out amongst
competition.
We organise several virtual and

physical meetings and events
throughout the year for our channel
partners and their families. In addition,
our frontline team works closely with

We need to
keep some silos
intact, with
teamwork
Cleaning a 21,800 MT capacity First, 18 contract workers were hand-picked
for this job. Each health and safety protocol
silo in two weeks could seem was extended to them as they entered the
like a Herculean task for most; silo. Every move was manned by an expert
emergency team trained to manage any crisis.
however, not to our team A drone monitored movement and adequate
from Bhatapara. Cleaning levels of air supply maintained through a
designated unit. Advanced equipment such as
silos is integral to the efficient pneumatic whipping and cardox blasting were
management of a plant’s deployed under expert surveillance.
inventory and supply chain and Precise planning, inspirational teamwork,
imperative to be accomplished deployment of advanced technology and swift
decision by the senior leadership ensured a
despite any external challenges single-minded focus to complete the entire
or roadblocks. exercise in a record-breaking 11 days.

This success story

had a ripple effect
– it inspired other
teams from Dadri
and Ambujanagar
plants to emulate the
process. Our Bhatapara
team led the way in
demonstrating how the
embodiment of the
spirit could dwarf any
challenges, thanks to a
shared commitment by
an amazing team.

Human
Capital
The Ambuja Cement team of 10,463 employees
(including third-party contractual employees)
is our most valuable asset, which propels the
Company forward through their competencies,
skills, and knowledge. We provide our people
a supportive and safe working environment
while promoting inclusivity and diversity at the
workplace.
Employees

− Health and safety − Labour issues
− Employee training − Attrition and retention rate
− Gender equity − Code of Conduct
KEY RISKS ADDRESSED

− Talent acquisition and retention − Health and safety
SDGS IMPACTED


key initiatives
EMPLOYEE HEALTH
AND SAFETY
Implement and monitor stringent
health and safety measures across
operations to ensure safety of
99%
employees vaccinated
people
101.8
Million
safe on-site man hours
In CY2021
FOCUS AREAS
DEVELOPING THE
TALENT POOL
Leveraging the digital ecosystem
for employee learning and
development, and leadership
8
hours on average of
pipeline training imparted per
employee
EMPLOYEE
ENGAGEMENT
Focus on e-learning
64
e-learning courses

Capital-wise performance >> Human Capital
OVERVIEW the organisation. Hence the concept well as Awareness & Communication.
Our Human Resources function of ‘Saksham’ was envisioned. The Our COVID-specific policies
is closely aligned with the overall core intent of the program is to make included leave, medical expenses for
business strategy and plays an people ‘samarthvan’ or able by employees and family. Sparsh provided
important role in its execution. We providing them equal opportunities counselling and mental health support
recognise the importance of well- for their holistic development. while outsourced agencies such as
trained and motivated employees in Saksham has been rolled out at Health Spring, provided medical
achieving our goals. multiple units with the enthusiastic kits, vaccination support and tele
participation of employees counselling. Unfortunately, we also
We are aiming to become more lost colleagues during the pandemic.
inclusive and therefore the promotion An internal survey registered 90%
of gender diversity has been one of
EMPLOYEE ENGAGEMENT employee satisfaction on the support
Given the persisting uncertainties on
the key features of our talent strategy. provided by the Company during the
account of the pandemic, we focused
From setting a specific target to pandemic.
on promoting employee engagement
improve women’s participation in the
in activities that their families could
workforce for the next three years to As per Company policy, women
also participate in. Under the banner
implementing programs and policies employees are entitled to maternity
of ‘Umang’, a host of activities were
that improve worker diversity, we have leave for a continuous period of
organised, such as ‘I Can Talent
clear objectives to improve worker 26 weeks, or opt for two 13-week
Hunt’, that led to the discovery of
engagement and build trust. segments to cover the pre-natal and
capable dancers, singers and other
post-natal period as per convenience.
talents among participating adults
We have a ‘Zero Tolerance’ policy During 2021, three women employees
and children. There was also the ‘I
towards any kind of discrimination and availed of maternity leave; two of them
Can Dream Project’, which, along with
harassment at the workplace based remained employed for the rest of the
motivational and informative sessions
on the applicable laws and our internal year after resuming work, and one is
like the ones of financial planning,
directives. still on leave.
boosted the morale of the workforce.
Other such activities are planned for
Total employees (Nos.) We are an equal opportunity employer
the future.
providing equal remuneration for
2021 4,723 women and men. We aim to reach
2020 4,923
TALENT ACQUISITION gender diversity of 10% in management
We have had a healthy flow of talent
2019 5,068 workforce by 2025. The ratio of the
as a result of lateral movements and
average basic and total salary of
2018 5,058 campus hires. During the year, we hired
women to men is 1.17:1 and 1.14:1,
342 new employees, 9% are women.
respectively management level roles
TALENT MANAGEMENT and 1:1 for the entry level average total
INDUSTRIAL RELATIONS salary, considering all locations of our
− Under the ‘People for Tomorrow’
Healthy industrial relations have
initiative under the Cement Industrial operations.
been our hallmark. We signed wage
Framework, we are developing
settlements across five units over
a talent pool across units. This We have recognised trade unions
the past one year. There was no loss
ensures we do not have any talent affiliated to INTUC/AITUC/BMS,
of man-days or stoppage of work
gap across functions while giving representing blue collar employees at
during the negotiations. While working
employees the opportunity to different locations. Ambuja Cement
within the framework of the Cement
acquire skills and progress their respects freedom of association
Manufacturers’ Association Wage
careers and allows its employees to join an
Board agreement, we have been able to
independent trade union. Out of our
− For our Marwar greenfield project, maintain adequate performance-based
total permanent workforce ~30%
we successfully utilised our in- differentiation for our units. Disciplinary
employees are covered by collective
house talent. Employees across actions have also been conducted
bargaining agreement.
units were transferred to this site in seamlessly as per laid down policies
various roles, enabling knowledge and procedures of the organisation.
exchange and a deepening sense of
LEARNING AND DEVELOPMENT
At Ambuja Cement, Learning &
camaraderie. We are also readying EMPLOYEE BENEFITS Development is an integral part of our
a talent pool that we will tap into for In purview of the health crisis, we
people strategy. Since the pandemic,
various upcoming projects have launched a plethora of policies,
the ACC ACL Leadership Academy
support plans and mechanisms to
− A need was felt for a more targeted (AALA) has leveraged the digital
ensure employee well-being and
program to enable employees to ecosystem to expedite the learning
security. The Business Resilience Team
acquire new skills so that they could process through virtual instructor-led
launched its four-pronged action plan
assume new roles and make use of master classes. Short, customised
that included Crisis Management as
the opportunities opening up within web sessions have also been used for

targeted groups which were coached business. AALA organised sensitisation Employee retention (%)
on functional and leadership aspects. programs for 65 senior leaders in
We also have dedicated learning Manufacturing and Sales, promoting 2021 91.2
programs for successor development, conversations that reflected on bias at 2020 94
promoting the safety culture and for work, on building inclusive practices
2019 89
performance management among and action plans to promote gender
others. Numerous on-the-job training diversity in the organisation. 2018 88
programs at the unit-level were
3%
designed and implemented with the
SUPER ASSISTED INTELLIGENT
help of internal faculty, subject matter
LEARNING (SAIL)
experts and functional leaders.
Share of women employees
Our L&D sessions utilised the
ASPIRE
During the year, we launched

online meeting platform, along with
the in-house learning experience
platform, Super Assisted Intelligent
10%
Targeted share of women
Aspire, our successor development
Learning (SAIL). SAIL is an employees by 2025
program for grooming talent for
application which works not only
Plant Head positions through a
blend of technical, business and
as a repository for programmes PLANT-SPECIFIC PROGRAMMES
conducted, but also for content We run some specific programmes
leadership modules. The program
creation, curation and e-learning. to achieve consistent operations and
includes both on-the-job functional
standard maintenance within the
tasks, assignments and mentoring
plant along with operators, engineers
by senior leaders in manufacturing.
and technicians for sustainable high
The training journey culminates in a A total of 676 training programmes
performance.
cross-functional capstone project were conducted during 2021 including
set by the Chief of Manufacturing. physical and virtual sessions on
Programme objective
Each participant gets the modules relevant for management and
− Consistently achieve operational
opportunity to present his/her personal development
and maintenance targets by having
project to the Managing Director.
reliable operators, engineers and
Throughout the pandemic, AALA has
managers who perform well and in a
worked very closely with the Business
safe manner
Resilience Team and curated programs
In addition to the Aspire program, the
to establish meaningful connect with − Achieve sustainable high
year saw us conduct a large sales
employees. It organised 12 webinars on performance in our plants
training initiative with all Branch Heads
COVID-19 and its management, mental
on new dealer appointment. The − Standardised maintenance within
well-being and resilience, covering
training consisted of three modules and Holcim Group standards on
a total of 4,511 employees, of which
covered 261 Sales Managers. It was operation and safety
1,882 were from Ambuja.
run through a ‘Train the Trainer’ mode,
whereby nine Regional Sales Heads
were trained to lead the modules.
A special program was designed in
partnership with the Global Sales
Excellence team to develop Regional
Sales Office (RSO) Heads as Sales
Coaches. The program not only
imparted coaching skills through
peer coaching sessions, but also the
opportunity to practice these skills
during the intervening sessions. The
training covered 62 Regional Sales
Heads and consisted of four modules.
AALA also created content for 128

micro learning modules on its Learning
Experience platform and 64 e-learning
courses in the areas of Sales &
Marketing, H&S, Compliance and
Success factors among others.
Diversity and Inclusion has been a

long-term goal for the Company,
and acts as a sustainability lever for

HEALTH AND SAFETY dependants and workers. In a plants without any major accident.
In the midst of an ongoing pandemic, challenging environment, we continued During the year, we also reduced our
our commitment towards safeguarding to keep sustainability at the heart of our Lost Time Injury Frequency rate (LTIFR)
the health of our people and ensuring operations, and ensured this through by 24% and Total Injury Frequency Rate
safety at the workplace has been necessary emphasis on better H&S (TIFR) by 21% vis-à-vis 2020.
further stepped up. The Business performance.
Resilience Team has worked While we worked towards making our
proactively to safeguard our people, The year saw substantial improvement sites safer, we also took significant
putting in place a set of dynamic of this performance, demonstrated by steps in to reduce manual handling
guidelines that evolved with the the fact that we had zero onsite and across the country through the
situation. As a result, more than offsite fatalities in all our operating installation of automatic conveyor
99% vaccination (both doses) has units. Till date, we have achieved 101.8 systems at seven of our largest
been achieved for our employees, million safe manhours in our operating warehouses.
Focus on frontline safety
Our strategy in 2021 was to sustain

performance with a focus on
frontline safety. The journey was
planned under six pillars i.e. Onsite
Safety, Zero Harm Culture, Systems
& Processes, Control of Health
Risks, Road Fatality Reduction
and Environmental Excellence. The
actual output was assured through
a strong governance and assurance
system that reviewed deliverables
on a monthly basis.

ONSITE SAFETY ZERO HARM CULTURE SYSTEMS & PROCESSES
− Further improve leading − Visible frontline safety leadership − Digital transformation:

indicators- Hazards/ near – Boots on Ground (BOG)
• Training Management System
misses/Visible Personal
− Review We Care, simplify and
Commitments (VPCs) • Long working integration with
revitalise
H&S app
− Focus on frontline
− Strengthen behaviour-based
implementation - Key lessons • Hazard reporting in
safety
iCare 2.0
− Strengthen job risk -Tool Box Talk
− Critical Control Management for
and Permit to Work
8 Priority unwanted event (PUEs) − Unit Scorecard roll out for better
− Ensure silo cleaning capability across ACL assurance
and process compliance
− Improve and sustain − Robust implementation of
− Step up on electrical safety and housekeeping standards across occupation health procedures –
work at height compliances all plants ergonomics, asbestos, hearing
conservation and vibration
− Step change – safety culture at − H&S competency – frontline
mines and wagon loading (supervisors, workmen) − Pre-startup safety review and
Health & Safety Management
− Better onsite vehicles and traffic − Shop Floor H&S compliance –
System implementation at
safety (all plants) Don’t walk past, H&S Rules, Use
Marwar
of tools
− Zero tolerance for non
compliance – consequence
management
CONTROL OF HEALTH RISKS ROAD FATALITY REDUCTION ENVIRONMENTAL EXCELLENCE
− COVID-19 Compliance − >95% controlled fleet monitoring − Establish a systematic scheme

through compliant in-Vehicle / baseline for management
− Fugitive emission control plan
Monitoring System (iVMS) of spillage/leakages of oils,
implementation
lubricants, chemicals across
− >95% controlled fleet drivers
− Emergency Response Capability plants related to:
InCab assessed
and Capacity – General medical
response, COVID, WAH, CS − Robust Reward & Recognition • Monitoring & Control
and consequence management
− Qualitative risk assessment for • Engineering measures in
implementation for truck drivers
hazardous substance across all transport, handling storage,
plants − Minimum vehicle specifications processing or disposal
compliance:
− Industrial hygiene – Verification
− Competency development of
survey at 4 plants, noise control
• 100% load carriers with seat relevant personnel to prevent
plan validation across ACL
belts with >95% 3 point seat / control spills, leakages of
− Reduce manual handling belts for controlled fleet oils, chemicals, etc. at critical
– conveyors at 15 large locations
• >95% Site Underwrite
warehouses (15% of total
Protection Device (SUPD) and − Monitoring incidents and review
volumes handled)
Rare Underrun Protection of site-specific spill response
Device (RUPD) (controlled plans for future improvements
fleet) [Integrated Management System
(IMS) integration, training record
− Greater focus on two and four and inventory control
wheeler safety

Safety journey highlights
− Safety Compliance Weeks which led to an increase in − Increased coverage of in-vehicle

conducted every quarter, training manhours by 55% monitoring systems for the fleet
focused on mandatory safe of trucks used to carry our goods
− Greater visibility of leadership
behaviours on the frontline and enhancement of the capacity
teams on the frontline through
of In-Cab (Defensive Driving)
− Extending our successful a ‘Boots on Ground’ program,
assessors; each plant now has
behaviour-based program to which was supported by an
1-2 assessors as per need
another two units, covering interactive digital app
all large plants (50% of total − Timely sharing of lessons learnt
− Program on critical controls so
locations) from incidents, supplemented by
that no unwanted occupational
fair consequence management
− Focused approach on injuries/incidents occurred
(both positive and negative
improvement of safety culture as around our highest risk areas;
reinforcement)
also H&S competency at mines now formally verified on a
quarterly basis − Efficient execution of
− Training and competency
environment-related deliverables
enhancement through a digital
across the Company
training management system,
6,228
InCab assessments
1,597
iVMS installations
34.7%
Reduction in offsite incidents with
done in 2021 67% lesser injuries through better
monitoring and training
Safe journey
We have achieved two consecutive years zero road fatality.

This was possible due to relentless efforts and passion of
the teams involved for the past 5 years across all the sites
of Ambuja Cement. We continued our focus around skill
development and driving behaviour management based on
critical inputs from TAC, backed up with consistent work
around strengthening the process and lead measures. We
moved from a meagre 14% Safe Km in 2016 to over 72% in
2021, achieved through driver behaviour management and
learnt skills being applied while driving.
80% 11 72% 12
67%
70% 61%
10
60%
8
50% 41%
40% 6
30% 4
18% 3 4
15%
20%
2
10% 2
0 0
0% 0
2016 2017 2018 2019 2020 2021
%Safe KM Fatality

Outcomes
− 7 manufacturing units achieved While we have delivered an excellent Near miss mapping (Nos)
Zero Harm in 2021 H&S performance in line with our
values and long-term sustainability 2021 1,768
− 24% reduction in LTIFR against
development goals, we are 2020 1,466
2020
conscious of the need for continued
2019 1,349
− 21% reduction in TIFR against commitment and efforts to better this
2020 performance. Our plan for this is in 2018 859
place and preparations are also in full
− 21.20% increase in leading
swing to achieve the goals.
indicators vis-à-vis 2020
− Total injuries reduced by 23% over
Lost time injury frequency rate
(per million hrs)
the years
Lost time injury and medical
− 6,228 In-Cab assessments and treatment injury (Nos) 2021 0.21
1,597 iVMS installations made 2020 0.28
2021 24
2019 0.40
2020 26
2018 0.58
78,976
2019 36
2018 56
hours of safety trainings in CY 2021

GOVERNANCE
Upholding a culture
of accountability
We are guided by a the management and approves the More than 46% of the Board members
strategic objectives of the Company. have been associated with the Company
strong value system Above all, it ensures that the Company for five years or more. The average tenure
and take pride in is able to remain true to its obligations of the Board during 2021 was six years.
to the stakeholders and function in a
being a responsible sustainable way. The Board executes its The senior management of the Company
corporate body that has duties in a way that involves careful risk ensures that the Directors are regularly
considerations so that the Company is familiarised and updated on business
consistently built upon able to remain viable in the long term. processes and key activities. Interaction
its solid foundation of with the Holcim management is
Our Board comprises of 15 Directors, undertaken regularly and the Directors
oversight. By abiding 1 Executive and 14 Non-executive updated about the best practices and
with the established Directors, including 5 Independent key events at the Group level. Details
Directors. about the familiarisation programme can
laws and regulations, be accessed on the Company website at
and ingraining a The Board supervises the performance https://www.ambujacement.com/Upload/
of the Company and takes decision on its PDF/Familiarization-Programme-for-
culture of compliance, strategies while reviewing various aspects Independent-Directors.pdf.
accountability and of its operations that includes, but is not
limited to, risk management, sustainability A key matter that involves the Board
ethical conduct across and stakeholder relationship, among is succession planning. Under the
the organisation, we others. The Board holds regular meetings aegis of the Board, the Nomination and
to review and give its opinion on various Remuneration Committee drives the
are upholding the matters. The active involvement of succession planning process for the
best interests of our the Board is evident from the fact that Company.
meeting attendance was 94% during
stakeholders. 2021. All related-party transactions are
entered into on an arm’s length basis
Our business is underpinned by our Ambuja Cement is the first company and are compliant with the applicable
adherence to high ethical standards and in the country to involve Board-level provisions of the Companies Act, 2013
best practices in corporate governance. participation for compliance, with a and the Listing Agreement. No materially
As a public company, we are committed committee formed specifically for this significant related party transactions,
not merely to guarantee consistent purpose and chaired by an Independent having potential conflict with the interests
profitability to our shareholders, but also Director. of the Company at large, have been made
contribute to the economic growth of the by our Promoters, Directors and key
nation by performing with integrity and The senior management of the Company managerial personnel among others. The
in strict compliance with public laws and regularly updates the Board on key details of the process to manage related-
regulations. We are, at the same time, matters that concern and impact the party transactions are provided on page
committed to work in the best interests of business. At a special meeting every year, 243 and those of transactions with related
our stakeholders, which include not only Board members are required to review parties are provided in the financial
our business partners, and employees and approve the business plan for the statements that form part of the Annual
but also the larger society we impact next year and give its feedback, which Integrated Report 2021.
through our operations. is addressed while drawing up the final
plan. The Audit Committee and the Board The Board ensures that the Company
The Board of Directors at Ambuja Cement also review and approve every related- adheres to Environment, Social and
provides leadership to the Company, party transaction. We seek the approval Governance (ESG) parameters under
ensures that it delivers shareholder of the shareholders whenever necessary. various Board committees. It seeks
value, provides oversight and guides regular updates on the functioning of
each project and other specific updates.

GOVERNANCE FRAMEWORK
Code of Business
Conduct and Ethics
Trans
p a re
ncy
Ethi c a
l de
a li n
Em pl g
oye
es
− Executive Committee
(ExCo) Executive
− Managing Director Management
& CEO
Ambuja
Cement’s − Compliance to all the
Governance Structure Philosophy on Board of applicable laws
Corporate Directors − Focus on sustainability
− Nomination & Governance
Remuneration
− CSR & Sustainability
− Risk Management
− Audit Committees
of Directors
− Compliance
− Ethical View Reporting
− Others
ility
c c ou ntab
A nt
Compliance vi ro nme
E n
Management it y
mun
Framework Com
VALUES, ETHICS AND INTEGRITY were investigated and concluded and 2 particularly of sexual harassment. Any
The Board of Directors at Ambuja Cement complaints are still under investigation. reported incident is investigated with
has laid down a holistic Ethical View The investigated cases were mainly of the due attention and appropriate decisions
Policy (EVP) (akin to the Whistleblower nature of kickbacks/favours from vendors are taken based on the outcome of the
Policy) and Anti-Bribery and Corruption (13%), violation of the Code of Conduct investigation. During the year under
Directive (ABCD) as an extension of its (55%) and non-Code of Conduct-related review, we received one POSH-related
Code of Business Conduct and Ethics, (32%). The financial impact of these complaint and it has been resolved.
which covers the Directors, employees cases was insignificant and caused no
and relevant stakeholders of the damage to the Company. INVESTOR GRIEVANCE
Company. Our policy of Zero Tolerance The Stakeholders’ Relationship
towards corruption and bribery ensures We have a vigil mechanism for disclosure Committee is responsible for managing
fair and transparent business dealings. and for avoiding conflict of interest in all investor grievances, and is assisted by
These policies play a critical role in our dealings that covers the Board of the registrar and share transfer agent
eradicating the risks of fraud, corruption Directors and all employees across levels. of the Company. We had no pending
and unethical business practices across complaints at the beginning of the year;
our business value chain. A more detailed review can be found and received 30 new complaints during
in the Corporate Governance Report, the year. At the end of the reporting
The Audit and Compliance Committees forming part of this Integrated Report. period, all complaints were addressed.
of the Board keep a stringent watch on Based on the nature of the queries/
the implementation and maintenance of PREVENTION OF SEXUAL HARASSMENT complaints, we usually take seven days to
ABCD and this is periodically reviewed (POSH) a month to resolve investors’ complaints.
by the Board. During 2021, we received We have a comprehensive POSH policy,
37 complaints, of which 13 complaints which is overseen by the Chief Financial
were pre-assessed, but did not warrant Officer (CFO). We practice a policy of
further investigation. About 22 complaints Zero Tolerance towards any misconduct,

AWARDS AND ACCOLADES
RECOGNISED ACROSS
PLATFORMS
The awards and recognition received during the year are testament to our
efforts to create a difference in the industry.
Awards received during the year

1 2 3 4
‘Best Mobile Loyalty ‘DSIJ 2021 CFO CII 3R Award under Punjab State Awards in
Program’ for our Award’ in Best the category of Disability Sector 2021
contractor loyalty Women CFO category Excellence in Managing for Ambuja Manovikas
program, ‘Ambuja for our Chief Municipal Solid Waste’ Kendra; ‘Best Individual
Abhimaan’, at the Financial Officer for Geocycle India for Professional’ award
Customer Fest (CFO), Rajani Kesari, undertaking various for Ms Anupama
Leadership Awards for demonstrating projects to collect and for working for the
Show 2021, under exceptional calibre co-process segregated cause of persons with
the Customer Loyalty and making municipal solid waste disabilities 2021 and
category and ‘Best remarkable and plastic waste ‘Best Sportsperson
Use of Influencer contribution to across the country with Disability - 2021
Marketing’ in the B2C Ambuja’s growth in (Female Category) for
Content Marketing 2020 Ms. Priya Devi
category at the MINT
Marketing Summit 2021
5 6 7 8
Two awards for ‘Best Cement Brand Gold Award in Training ICAI Awards for
Ambuja Cement – East’ award by Excellence 2020 for Excellence in Financial
Foundation (ACF) at Times Business Cement Excellence Reporting 2020-21
the ICC Impact Awards Awards 2021 for Manufacturing – “Plaque” for category
2021 by the Indian Ambuja Cement (Techport) – Asia – Manufacturing
Chamber of Commerce for contributing by Apex India and Trading Sector
(ICC) recognising significantly towards Foundation, a non- (Turnover equal to
the Foundation’s the growth and profit that recognises `3,000 crore or more)
exemplary work development of West excellence in various by the Institute of
in community Bengal fields including in Chartered Accountants
development in manufacturing of India
Sankrail and Farakka,
West Bengal
9 10
Audit World Summit 2022:
ICAI International Sustainability Reporting
1. Best Internal Audit team of the year in
2020-21 “Plaque” for category –
‘Manufacturing’ Sector
ICAI International Award on Climate Change
2. Audit Visionary Leader of the year –
Mr. Prabhakar Mukhopadhyay
3. Woman Audit Leader of the year – Ms. Vrinda Nai

Recognition
1 2 3 4
Ambuja Cement Ambuja Cement Ambuja Kawach, the Listed in GRIHA’s
ranked 5th globally recognised for high-quality water- (Green Rating for
for consecutive leadership in repellent cement brand Integrated Habitat
second year by corporate of Ambuja Cement, Assessment) green
the internationally sustainability by became the first cement product catalogue
renowned Dow global environmental brand from India to for our blended
Jones Sustainability non-profit CDP, be endorsed globally cement; inclusion
Index (DJSI) in securing a place on by the ‘Solar Impulse accelerated by
the construction its prestigious ‘A List’ Efficient Solution’ label, the Company’s
materials category, for tackling water a recognition of the commitment towards
the only Indian security. Globally, Company’s innovative achieving Net Zero
company to be Ambuja is the only product that protects by 2050
among the top five cement company to the environment in a
in the sector have achieved this feat profitable way
5 6
11 operating mines Ambuja Cement
of Ambuja Cement Foundation (ACF)
awarded 5-Star team in Dadri, Uttar
rating at the 5th Pradesh, felicitated
National Conclave by the Rotary Club
on Mines & Minerals for its outstanding
2021 for their efforts contributions towards
in implementing Water, Sanitation
the Sustainable and Hygiene (WASH)
Development initiatives over the
Framework (SDF) years at the Rotary
CSR Awards 2021
This is to certify that the products of
“Ambuja Cements Ltd. ”

Ambuja Cement (PPC), Ambuja Plus (PPC),
Ambuja Compocem (Composite Cement- PCC), Ambuja Kawach (PPC/PCC)
(under typology PPC and Innovation ( Environmental Product Declaration (EPD))
have been included in the GRIHA Product Catalogue under the following categories:
GRIHA v.3 criterion: 15 & 34;

GRIHA v.2015 criterion: 19 & 31;
GRIHA v.2019 criterion: 19 & 30
& SVAGRIHA: 11
These products can be used in GRIHA & SVAGRIHA registered projects to meet
the GRIHA & SVAGRIHA norms, respectively. This is valid
only for the products which have been mentioned above.
The certificate for the above mentioned products is valid from

10th December 2021 – 9th December 2023
Sanjay Seth
Chief Executive Officer

GRI indicators: Sustainability Performance (2018-2021)
GRI Std.
SDG TARGET
/ GCCA Assurance 2018 2019 2020 2021
Target 2021
KPIs
Economic Performance &
Value Creation
Net Sales ` crores 201-1 8.1,8.2 10,977 11,353 11,175 13,794
Direct Economic value ` crores 201-1 11,602 12,094 11744 14,185
generated
Payments to providers of ` crores 201-1 380 381 3,657 1,342
capital
Payments / Benefit to ` crores 201-1 473 81 465 1,092
governments (taxes)
Direct economic value ` crores 201-1 10,403 10,894 13,448 13,210
distributed
Economic Value Retained ` crores 201-1 1,199 1,200 (1,704) 975
(=Economic Value generated -
Economic value distributed)
Operating costs ` crores 201-1 9,465 9,519 8,725 10,757
Suppliers 9.1.2, 2018 2019 2020 2021 TARGET
9.3.32, 2021
12.7.1,
10.7
Number of Suppliers √ 7,874 8,359 7,681 8,312
Number of local (Indian) 204-1 √ 7,792 8,260 7,597 8,243
suppliers
Number of foreign suppliers √ 82 99 84 69
% of suppliers identified as 308-1, √ 7% 6% 7% 5%
"High Risk" (for sustainability 308-2,
criteria aligned with Supplier 414-1,
Code of Conduct) 414-2
Number of Suppliers screened √ 553 518 518 441
through Self Assessment
Questionnaire (social,
environmental aspects)
Total suppliers assessed during √ 767 1,548 1,547 1,095
the year
No. of Suppliers with non √ 96 116 165
compliance
No. of suppliers with action √ 72 62 81
plan
No. of suppliers showed √ 58 56 47
performance improvement
Monetary value of payments ` crores √ 9,395 9,479 8,708 11,975
made to suppliers
Proportion of spending on local % √ 96 98 92 92
suppliers
Expenditure on Raw Materials √ - - -
Imported % √ 3% 6% 3% 0%
Indian % √ 97% 94% 97% 100%
Expenditure on Spares - - - -
Imported % √ 11% 18% 32% 10.4%
Indian % √ 89% 82% 68% 89.6%
Government relations √ 2018 2019 2020 2021 TARGET
2021
Political contribution ` crores 415-1, Nil Nil Nil Nil
201-1
Total monetary value of financial ` crores 201-4 (a) 234 205 48 3
assistance received from
governments (grants, tax, reliefs
and other finance benefits)

GRI Std.
SDG TARGET
/ GCCA Assurance 2018 2019 2020 2021
Target 2021
KPIs
Customer Satisfaction
Overall Net Promoter Score % √ 54% 59% 79% 81%
(NPS)
Data coverage (e.g. as % of % √ NA 30% 65% 63%
revenues, customers, etc.):
Environmental 2018 2019 2020 2021 Target 2021
Performance
Number of plants (Cement, # √ 13 13 13 14
Grinding plants)
Plants certified by 3rd party for # √ 13 13 13 13
ISO:14001 EMS
Environmental investments ` crores 307-1 √ 102 118 31 154
Savings, cost avoidance, ` crores √ 153 31 5 21
income, tax incentives, etc.
Number of plants/quarries # √ Nil Nil Nil Nil
reporting non-compliance
cases
Fines or penalties paid for ` 0 0 0 0
environmental non-compliances
Clinker Production Details 8.4.1, 12.2 √ 2018 2019 2020 2021 TARGET
2021
Clinker Produced Tonnes √ 1,56,75,998 1,53,16,910 1,41,58,685 1,74,00,911
Clinker Consumed Tonnes √ 1,58,08,639 1,55,29,918 1,43,77,385 1,63,08,019
Limestone-Own mines Tonnes √ 2,24,12,489 2,20,49,486 2,00,84,455 2,50,47,566
Limestone Purchased Tonnes √ 12,77,131 5,68,709 6,81,933 3,07,131
Total Limestone Tonnes √ 2,36,89,620 2,26,18,195 2,07,66,388 2,53,54,697
Clay & Shale Tonnes √ 5,34,998 5,70,698 6,16,836 7,36,159
Silica corrective (Sandstone, Tonnes √ 1,46,371 84,074 82,335 85,797
Silica sand, Bed Material, China
Clay)
Gypsum used in Kiln Raw Mill Tonnes √ 12,113 1,272 11,081 37,861
(SO3-provider)
Iron correctives (Iron ore, Iron Tonnes √ 2,12,172 2,24,672 1,65,588 2,05,228
scales, Laterite, Blue dust,
Mill scales, LD Sludge, Tailing
Waste)
Alumina correctives (Bauxite, Tonnes √ 1,56,880 2,12,648 1,96,682 2,90,624
Flyash, Red ocre, Brown ocre,
Low silica laterite)
Bottom/Bed ash Tonnes √ 27,293 13,599 18,703 22,807
Cementitious Material Tonnes √ 2,41,92,935 2,37,12,206 2,20,52,855 2,69,75,680
produced
Cement Produced Tonnes √ 2,43,25,576 2,39,25,304 2,22,71,555 2,58,82,788
OPC Tonnes √ 24,27,930 26,28,100 22,87,536 27,53,041
Blended (PPC and Composite) Tonnes 9.4, 9.5, √ 2,18,97,646 2,12,97,204 1,99,84,019 2,31,29,747
12.2, 12.4
Total Gypsum Consumption Tonnes √ 11,44,383 12,82,712 13,82,839 17,42,899
Natural Gypsum Tonnes √ 7,09,570 7,95,359 9,61,902 13,41,655
Synthetic & Phospho Gypsum Tonnes √ 4,34,813 4,87,353 4,20,937 4,01,311
Flyash/Chemical Additives Tonnes √ 61,52,996 69,17,638 63,14,501 76,16,856
Slag Tonnes √ 95,343 1,82,498 2,81,879 2,06,015
Total Raw Materials Used Tonnes √ 5,57,66,446 5,45,43,703 5,03,21,341 6,14,47,692
Total Recycled Raw Materials Tonnes √ 69,84,154 78,55,910 71,16,411 85,36,826
used
% of Materials used that are % √ 12.52% 14.40% 14.14% 13.89%
Recycled Input Materials

GRI Std.
SDG TARGET
/ GCCA Assurance 2018 2019 2020 2021
Target 2021
KPIs
Alternative Material Rate % √ 31.60 31.70 31.50 32.00
Clinker factor (average % of % 9.3,9.4 √ 64.99 64.91 64.55 63.01
clinker in cement)
Share of Sustainable Products % 301-2 √ 90% 89% 90% 89%
Revenue from Sustainable % 12.5.1 √ 92 89 89.5 89.5
Products
Sustainable Solutions 2018 2019 2020 2021 TARGET
Provided 2021
Instant Mix Proportion No. of sites 36,647 43,433 14,721 14,824
Modular Curing System No. of sites 9,078 7,714 2,391 1,994
Rain Water Harvesting System No. of sites 282 893 253 100
Water Saved (Credit) at m3 2,38,200 2,22,760 68,598 49,600
Customer Sites
CO2 emissions 9.4.1, √ 2018 2019 2020 2021 TARGET
12.2.2, 2021
13.1
Total Scope 1 Direct emissions Tonnes of 305-1, √ 1,48,49,220 1,45,23,738 1,34,05,629 1,61,80,247 1,62,00,000
(Absolute gross: cement & CO2 GCCA
onsite power generation)
Total Scope 2 Indirect Tonnes of √ 5,39,597 5,51,219 5,37,403 6,01,907 6,10,000
Emissions from Imported CO2
Electricity
Total Scope 3 emissions Tonnes of 305-3 √ 19,32,218 19,73,623 17,55,911 19,38,531
CO2
Number of Plants included in √ 13of13 16of16 16of16 16of16
Scope-3 emissions
CO2 from Alternate Fossil
Fuel
Biomass (kiln & non-kiln fuels)
Tonnes of √ 1,76,348 1,56,599 1,26,038 1,80,010
CO2
Other Alternate Fossil Fuels Tonnes of √ 1,52,876 1,67,498 1,42,687 1,61,658
CO2
Specific Absolute emissions (kg CO2/t √ 614 613 608 600
(Scope-1) cement)
Specific CO2 from CPP (kg CO2/t √ 77.9 74.8 71.6 65.0
cement)
Specific Gross CO2 emissions (kg CO2/t 305-4, CSI √ 536 538 536 534.8
(Scope-1) cement)
Specific Net CO2 emissions (kg CO2/t GCCA √ 530 531 531 528.8
(Scope-1) cement)
Reduction in Net CO2 per % 305-5 √ 31.4% 31.3% 31.2% 31.5%
tonne of cementitious
product (Scope-1) relative to
base year 1990
Specific CO2 emissions (kg CO2/t √ 22 23 24 22
(Scope-2) cement)
Other atmospheric emissions 305-7 √ 2018 2019 2020 2021 TARGET
2021
Number of kilns reporting √ 9 9 9 10
Coverage rate of CEMS (for GCCA √ 98 99 99 99
dust, NOx, SOx)
SOx emissions Tonnes GCCA √ 1,029 1,031 974 1,966 1,200
NOx emissions Tonnes GCCA √ 26,886 20,150 17,888 16,073 22,000
Dust emissions Tonnes GCCA 11.6.2 √ 530 371 507 466 500
Average Mercury (Hg) Tonnes √ 0.014 0.014 0.019 0.009 0.015
emissions
Average SOx specific g/tonne √ 42.5 43 44 72.9
concentration cement
Average NOx specific g/tonne √ 1,111.3 850 811 595.8

GRI Std.
SDG TARGET
/ GCCA Assurance 2018 2019 2020 2021
Target 2021
KPIs
Average Dust specific g/tonne √ 21.9 16 23 17.3
Energy
Direct /Thermal Energy 302-1 12.2
Consumption
Kiln Fuel Consumption
Coal TJ √ 14,439 15,869 18,261 37,652
Petrol coke TJ √ 32,534 30,741 25,323 13,765
Diesel oil TJ 7.1,7.2 √ 81 83 78 92
Alternative fossil and mixed TJ 7.1,7.2 √ 1,904 2,032 1,494 2,071
fuels
Biomass fuels TJ √ 895 613 406 714
Non-Kiln Fuel Consumption - - -
Coal TJ √ 13,395 14,823 14,402 14,781
Petrol coke TJ √ 3,296 1,658 1,295 750
(Ultra) heavy fuel, bitumen TJ √ 40 35 82 15
Diesel oil TJ √ 713 678 611 12
Alternative biomass fuels TJ 7.1, 7.2 √ 748 834 917 893
Total Energy consumption TJ √ 68,044 67,368 62,869 70,745
from Fossil and other fuels MWh √ 1,89,01,043 1,87,13,323 1,74,63,736 1,96,51,445
Direct Energy Consumed Crore Units √ 0.94 0.97 1.76 1.99
from Wind & Solar Power (Kwh)
Generation MWh √ 9,400 9,700 17,581 19,910
TJ √ 34 35 63 72
Electricity Purchased/ Crore Units √ 59 60 58 66
Imported (Indirect Energy) (Kwh)
(excl. Corp & mktg offices) MWh √ 5,85,278 5,99,151 5,84,167 6,61,437
TJ √ 2,107 2,157 2,103 2,381
Total Direct & Indirect Energy TJ √ 70,185 69,560 65,036 73,198
Consumption from all sources MWh √ 1,94,95,721 1,93,22,174 1,80,65,485 2,03,32,792 1,83,19,459
Total Power Generation MWh √ 13,28,759 12,92,962 11,72,722 13,30,346
WHR Power MWh √ 31,461 35,317 35,538 44,125
Renewable Energy MWh 7.2, 7.3 √ 9,432 9,888 16,611 35,264
Generation
RE Certificates Purchased MWh √ 0 65,506 0 1,89,910
Total RE Consumed MWh √ 9,432 75,394 16,611 2,25,174
(Purchased or Generated)
% of RE in total power % √ 0.7% 0.8% 1.4% 2.7%
generation
% RE in total energy % √ 0.0% 0.4% 0.1% 1.1%
consumed
Total installed RE capacity MWh 7.3, 13.2 √ 29.39 29.39 34.53 34.53
Power and fuel expenses Crore ` √ 2,549.69 2,586.42 2,251.91 3,421.01
Thermal energy efficiency MJ/ton 302-3 7.3, 9.4, √ 3,180 3,221 3,218 3,122 3,200
clinker 13.2
KCal/Kg of √ 760.0 769.9 769.1 746.2
Clinker
Electrical energy efficiency Kwh/ton 302-3 7.3, 9.4, √ 76.63 77 77 74
cement 13.2
Energy intensity based on MWh/Cr 1,776 1,702 1,617 1,474
Turnover
LDO consumption (Ltr/T of √ 0.13 0.141 0.136 0.141
Clinker)
Co-processed Waste Tonnes in 12.5 √ 2.9 3.1 2.8 3.7
(AF used) lakhs

GRI Std.
SDG TARGET
/ GCCA Assurance 2018 2019 2020 2021
Target 2021
KPIs
Thermal Substitution Rate % 301-2 √ 5.61 5.36 4.17 5.13
(% thermal energy from
alternative fuels)
Biodiversity and resources 15.1.1, √
conservation 15.2.1,
15.5.1
Total number of quarries 15.3.1 √ 10 10 10 14
Total land disturbed Ha 304 (1,3), √ 1,607 1,618 1,719 1,966
MM1
Total rehabilitated area Ha √ 154 164 169 200
Total land disturbed but not yet Ha √ 832 716 1,550 1,732
rehabilitated as presently used
for working
Approved mining plans of local % 304-1 √ 100 100 100 100
authorities (% sites)
% of sites with quarry % "304-3, √ 100 100 100 100
rehabilitation plans in place GCCA"
Number of biodiversity- √ 2 2 2 2
sensitive sites
Number of biodiversity- GCCA √ 2 2 2 2
sensitive sites with Biodiversity
Action Plans in place
Number of IUCN Critically √ 1 1 1 1
Red List species Endangered
Endangered √ 1 1 1 1
Vulnerable √ 3 4 4 8
Near √ 4 21 23 24
Threatened
Of Least √ 175 175 175 222
Concern
Water 2018 2019 2020 2021 TARGET
2021
Water Withdrawal 303-1 6.1,6.3, - - -
6.6
From groundwater m3 √ 23,08,324 21,33,706 17,59,402 17,39,842
From surface water m3 √ 17,80,853 19,22,975 19,61,615 19,61,067
From harvested rainwater m3 √ 14,64,778 18,28,799 14,93,686 19,58,135
3rd party purchase/municipal m3 √ 7,02,667 6,27,449 5,99,880 4,53,977
water
Total Water Withdrawn m3 √ 62,56,622 65,12,930 58,14,583 61,13,021
Recycled Water (from STP/ m3 303-3 6.3,14.1.1 √ 9,20,043 9,74,101 8,64,554 9,42,165
ETP/RO Reject etc.)
% of sites with water % 100 100 100 100
recycling
% of water recycled % √ 15% 15% 15% 15%
Total water discharge m3 306-1 √ 51,872 63,939 48,831 24,168
Total Net Freshwater m3 √ 47,39,972 46,20,191 42,72,066 41,30,718 45,00,000
Consumption
Water Balance Index √ 6 8 8 8
Specific Operational Fresh lit/t cement √ 63 68 77 58
Water withdrawal
% of sites in water stressed % √ 23 30.7 39 39
area
Outbound Logistics / 2018 2019 2020 2021 TARGET
Dispatches 2021
Sea (Bulk Cement Ships) Mil. Tonnes √ 3 3 3 3.1
Railways (railway/Rake) Mil. Tonnes √ 6 6 5 6
Road (Trucks & Bulkers) Mil. Tonnes √ 15 15 15 17

GRI Std.
SDG TARGET
/ GCCA Assurance 2018 2019 2020 2021
Target 2021
KPIs
Total Mil. Tonnes √ 24 24 22.2 26
Sea % √ 12% 13% 12% 12%
Rail % √ 25% 24% 23% 23%
Road % √ 63% 63% 66% 65%
Road Direct Dispatch % √ 57% 55% 60% 57%
Lead Distance Kms 283 276 278 248
Waste management and 2018 2019 2020 2021 TARGET
recycling 2021
Hazardous waste generated Tonnes 306-2 12.4.2 √ 511 646 326 382
Non-hazardous waste Tonnes √ 3,83,200 4,14,287 3,42,071 3,92,501
generated
Total Waste disposed Tonnes 11.6.1 √ 73 45 24 54 100
Waste reused/recycled/sold √ 3,83,638 4,14,888 3,42,374 3,92,829
Waste Mgmt System Data √ 100 100 100 100
Coverage (%)
Co-processed Waste (AF used) Tonnes in √ 2.9 3.1 2.8 3.7
lakh
Plastic Wastes Co-processed Tonnes √ 69,082 94,570 83,138 1,26,095
HDPE Plastic bags used for Tonnes √ 32,008 34,839 33,368 35,677
cement packaging
Plastic Negative Index = Plastic √ 2.2 2.7 2.5 3.5
Wastes Coprocessed/Plastic
packaging bags
Total Waste Derived Resource million √ 7.9 8.7 8.2 8.6
consumed (Flyash, slag, tonnes
AF,AR,Syn/phospho gypsum)
Social Performance 2018 2019 2020 2021 TARGET
2021
Employment practices 9.2.2 √ 2018 2019 2020 2021 TARGET
2021
Number of Permanent 102-8 √ 5,058 5,068 4,923 4,723
Employees
Management staff √ 3,536 3,562 3,416 3,370
Non-Management staff √ 1,522 1,506 1,507 1,469
Male √ 4,940 4,943 4,798 4,586
Under 30 years of age √ 452 415 414 329
30-50 years of age √ 3,486 3,248 2,968 2,971
>50 years of age √ 1,002 1,280 1,416 1,286
Female 405-1 √ 118 125 125 137
Under 30 years of age √ 36 36 39 47
30-50 years of age √ 72 78 73 77
>50 years of age √ 10 11 13 13
Female-Top management level 5.1.2 √ 2 3 3 3
Female-Senior management √ 3 1 1 3
level
Female-Middle management √ 22 21 22 26
level
Number of temporary/ 102-8 √ 5,995 6,392 6,057 6,177
contractual/casual
Employees
Male √ 5,972 6,364 6,030 6,151
Female √ 23 28 27 26
Number of Employees with 405 √ 21 6 11 10
Disability
New employee hires 401-1 8.3, 8.9 √ 376 555 142 342
Male < 30 years √ 189 243 48 125

GRI Std.
SDG TARGET
/ GCCA Assurance 2018 2019 2020 2021
Target 2021
KPIs
Male 30-50 years √ 159 265 72 176
Male >50 years √ 11 13 9 9
Female < 30 years √ 13 19 7 23
Female 30-50 years √ 4 15 6 8
Female >50 years √ 0 0 0 1
Employee turnover (%) 401-1 √ 12.36 10.8 6.36 8.76
Notice given for operational √ 1 month 1 month 1 month 1 month
changes
Employee Engagement Score √ NA NA NA NA
Employee grievance procedures √ Yes Yes Yes Yes
in place
Anonymous grievances √ Yes Yes Yes Yes
submission
No. of training programs √ 12,096 457 702 676
conducted (Total)
Top Management Level √ 68 16 30 29
Senior Management Level √ 956 105 150 151
Middle Management Level √ 5457 164 238 236
Other org. levels √ 5615 172 284 260
(FML & Wage Board)
Hours of training per hrs / 404-1 √ 18.05 6.3 11 8
employee employee
Top Management Level hrs / √ 2.68 7 5 4
employee
Senior Management Level hrs / √ 5.44 14 13 8
employee
Middle Management Level hrs / √ 4.28 17 13 9
employee
Other organisational levels (FML hrs / √ 5.65 4 11 11
& Wage Board) employee
Ratio of % increase in annual √ 17.85 -1.36 0 1.2
total compensation for the
highest-paid individual to the
median % increase in annual
total compensation for all
employees
Ratio of Management level 1.01 1.17 1.36
salary (Base) (Female:Male)
No. of employees who opted 7 8 7 3
parental leave
No. of employees who resumed 6 6 6 2
office after parental leave
No. of employees who are still 1 2 1 1
on parental leave
Health and Safety 8.1,8.2 2018 2019 2020 2021 TARGET
2021
% of workforce represented by % 403-1 √ 100 100 100 100
committees.
% Plants with joint health and % 403-1 √ 100 100 100 100
safety committees
Plants certified with OHSAS √ All All All All
18000
Safety training Hours (Total) Hours √ 93,409 71,726 78,976
Directly Employed (own and Hours √ 9,657 9,482 18,322
subcontractors)
Indirectly employed (3rd party Hours √ 11,506 19,168 27,484
service providers)
Drivers Hours 3.6, 11.2 √ 72,246 43,076 33,170

GRI Std.
SDG TARGET
/ GCCA Assurance 2018 2019 2020 2021
Target 2021
KPIs
Total Fatalities 403-2 √ 5 4 0 1
Employee Onsite √ 0 1 0 0
Employee Offsite √ 0 1 0 0
Contractor Onsite √ 2 0 0 1
Contractor Offsite √ 2 1 0 0
Third parties √ 1 1 0 0
Lost-time injury frequency #/million Hrs. 403-2 √ 0.58 0.40 0.28 0.21
rate (LTIFR)
LTIFR Employee #/million Hrs. √ 0.64 0.52 0.33 0.08
LTIFR Contractor Onsite #/million Hrs. √ 0.54 0.34 0.25 0.26
Directly employed (Own & √ 0.64 0.52 0.33 0.08
subcontractors onsite)
Indirectly employed (3rd party √ 0.54 0.34 0.25 0.26
service providers on site)
Lost-time Incident Severity √ 44.09 13.21 10.75 14.43
Rate (LTISR)
LTI & MTI √ 56 36 26
Occupational Diseased Nos. 403-2 √ 0 0 0 0
Occupational Illness number/ √ 0 0 0 0
Frequency Rate(OIFR) million work
hrs.
Community involvement 2018 2019 2020 2021 TARGET
2021
Community investments ` Crore 201-1 √ 53.46 62.57 53.97 64.41
(Benefit to communities)
Net New Direct Beneficiaries in Number 3,07,997 1,66,967 1,13,301
the year
Total number of beneficiaries in Millions 203-1 11.2 √ 2.4 2.6 2.7 2.8
the year 413-1
Stakeholder engagement % of sites 102-43 √ 100 100 100 100
at local level:-Stakeholder
dialogues, Need assessment.
Stakeholder involvement in
CSR planning, Community
advisory panels, Community
engagement plan.
Employee Volunteering
Total Hours Hrs 1,832 1,044 229 2,826
Paid Working Hours Hrs 1,035 788 181 2,826
Monetary value of Paid Working ` million 0.29 0.22 0.05
Hours
Public Policy 2018 2019 2020 2021 TARGET
2021
Contribution/spending to ` million 1.9 1.1 0.73 8.7
trade/commerce/industry
associations and initiatives
# All figures include ACL’s Standalone financial results. For some environmental parameters, offices & cement transportation terminals are not covered.


INSIDE THIS
SECTION
Statutory Reports
Management Discussion and Analysis 120
Directors’ Report 134
Corporate Governance Report 154
Standalone 180
Consolidated 260
Notice 349
Management
discussion
and analysis
Setting new benchmarks in

sustainability
Powered by the vision of emerging as the most
competitive and sustainable cement company in
India, Ambuja Cement is setting new benchmarks
across sustainability parameters in the country’s
cement sector. Following the lead of our parent
company Holcim, we have developed and validated
our 2030 carbon emission reduction targets by
the Science Based Targets initiative (SBTi), aligned
with the reductions required to limit global warming
to below 2°C. Besides, we have taken another
stride towards strengthening our climate change
adaptability by joining the ‘Race to Zero’.

Highlights 2021
AUGMENTING CAPACITIES
Driven by the rebound in real estate demand
after a prolonged period of sluggishness, the
Indian cement industry is registering a strong
growth momentum. The government’s push
towards infrastructure creation is also driving
demand for cement in the country.
To capitalise on market opportunities and to
strengthen our positioning, we have already
commenced the commercial operations of
our greenfield unit at Marwar, Rajasthan.
This has helped increase our clinker capacity
by 3 MTPA and cement manufacturing by
1.8 MTPA. Further, we have embarked on a
brownfield expansion of 1.5 MTPA grinding
unit at Ropar, Punjab.
`310 crore
Committed investment to ramp up
capacity at the Ropar unit
STEPPING UP CAPABILITIES
We are taking multi-pronged initiatives
to strengthen our capabilities,
including securing raw material
linkages, augmenting captive green
energy capacities, and enhancing
efficiencies. At the Gare Palma coal
mine, we have started underground
mining operations this year, providing
fuel linkage to our Bhatapara plant in
Chhattisgarh. Further, we have made
the railway siding operational at our
Rabriyawas plant to facilitate efficient
raw material unloading and cement
loading. Waste heat recovery systems
(WHRS) of 80 MW are under various
stages of implementation across
plants to help us increase the use
of green energy as well as optimise
resource utilisation.

AMPING UP INVESTMENTS IN INDUSTRY 4.0

With a view to further consolidate
our position in India’s cement sector,
we are investing heavily under the
‘Plants of Tomorrow’ programme
across our manufacturing units. A
part of our parent company Holcim’s
growth strategy, this transformative
programme aims at making cement
manufacturing more efficient through
better plant optimisation, higher
plant availability, and a safer working
environment. This will also work
towards achieving an environmentally
sustainable approach towards cement
manufacturing in the country.
SCALING NEW HEIGHTS IN Snapshot 2021

ENVIRONMENTAL STEWARDSHIP
Our relentless efforts towards water

conservation have been lauded by
the global non-profit charity CDP.
`1,160 crore
Spent towards capex
We have secured a place on CDP’s
‘A List’ for tackling water security.
This achievement reaffirms our will
to remain committed to addressing
water scarcity issues in the future, and
2.8%
Reduction in freight and forwarding
contribute to the establishment of a cost per tonne
sustainable tomorrow.
`64.41 crore
Spent on CSR activities
#5
DJSI ranking
8x
Water positive
80 MW
WHRS

previous financial year. The April- inflation touched RBI’s tolerance
June quarter of the current fiscal saw limit of 6.0% in January 2022
the second wave of the pandemic On Year Growth %
Economic
9.3
sweep through the country and tested
6.0
our health infrastructure to its limit. 5.8
review However, localised and selective
lockdowns ensured that its impact
5.6
on economic activity was relatively
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
cushioned.
GLOBAL ECONOMY The government successfully rolled out
The global economy grew by 5.9% in All Commodities Food Fuel Core
the world’s largest vaccination program
2021 following a contraction of 3.1% Source: National Statistical Office (NSO),
and this, combined with continuing
in 2020 (Source: IMF World Economic Government of India
monetary and fiscal support, helped
Outlook, January 2022).
the economy bounce back with an
estimated real GDP growth of 8.9% this
OUTLOOK
Countries across the globe focused on While initial forecasts of real GDP
year compared to a contraction of 6.6%
vaccination coverage and implemented growth for fiscal 2023 (April 2022-
in the previous year.
various economic stimuli to minimise March 2023) are in the range of 7.5%
the impact of COVID-19 and hasten to 8.0%, the recent geo-political
economic recovery. Real gross domestic product developments in Ukraine pose
(Y-o-y
\ growth %) a downside risk. Inflation is also
The growth momentum started slowing FY22 (f) 8.9 expected to remain elevated in the near
towards the end of 2021, as the term.
(6.6) FY21
effects of fiscal and monetary stimuli
dissipated along with the onset of the FY20 3.7 Other key factors which can impact
Omicron variant of COVID-19. FY19 6.5 growth in the coming year are energy
FY18 6.8 prices and the future trajectory of the
COVID-19 pandemic.
OUTLOOK FY17 8.3
While the early forecast for global
Source: National Statistical Office (NSO),
economic growth in 2022 is pegged Government of India
INDUSTRY INSIGHT
at 4.4% (Source: IMF World Economic Cement industry
Outlook, January 2022), the recent India is the second largest cement
The fiscal deficit for 2021-22 is
geo-political tensions and conflict in producer in the world, accounting
expected to moderate to 6.9% of GDP
Ukraine will weigh on global growth for ~8% of global cement production
from the previous year’s high of 9.3% of
projections and also lead to high with an estimated production capacity
GDP, which was primarily driven by the
inflation in the short term. of 550 MTPA. Its per capita cement
socio-economic welfare expenditure
consumption is less than half the world
on the pandemic. The government has
Other downward risks to the global average of 525 kg.
targeted a further improvement to 6.4%
growth outlook are emergence of
of GDP for the next fiscal (April 2022- share in global cement production (%)
new COVID-19 variants, supply chain
March 2023).
disruptions, energy price volatility
and increased occurrence of extreme 28
Fiscal deficit to moderate to 6.9% of
climate events.
GDP in FISCAl 2022; sharp improvement
global Economy (Y-o-y growth %) over 9.3% in Fiscal 2021
(% of GDP) 57
2023 (f) 3.8 9.3
2022 (f) 4.4 8

2021 5.9 6.9 22
(3.1) 2020 6.4 22
Data is for Calender Year-January to China Turkey

December, f=Forecast India Indonesia
4.6
Source: IMF World Economic Outlook, Vietnam Others
January 2022 FY20 FY21 FY22 FY23 (f) USA
INDIAN ECONOMY FY=Fiscal, f=forecast,

Economic growth in the current Fiscal 22= April 2021 to Mar 2022
Source: United States Geological Survey,
financial year is poised for a sharp Fiscal 23= April 2022 to Mar 2023 Mineral Commodity Summaries, January 2022;
recovery compared to that in the Source: Union Budget 2022, Government of India CRISIL Research
Calendar year - January 1 to December 31 | Financial year - April 1 to March 31

per capita cement consumption (KG) of warehousing space due to Coupled with higher kharif and rabi
e-commerce boom and data centres output (increase of 2% y-o-y) and
1,600 for back offices increase in minimum support price for
major crops (paddy, wheat etc.), farmer
income from cultivation and allied
1,050 KEY STRUCTURAL DRIVERS activities are set to improve further.
875 I. Housing
745 World Average:
The government continues to focus on
385 525 kg Average daily rural wage rates have
its flagship affordable housing scheme,
305 255 242 gone up by 5% CAGR over the last six
the Pradhan Mantri Awas Yojana
years.
(PMAY). While the execution of PMAY
(Urban) slowed down in fiscal 21 (April
China
Korea
Vietnam
Egypt
Russia
USA
Brazil
India
2020-March 2021), it will see a sharp average daily wage rates in rural
uptick over the next 2-3 years. india (`)
Rural affordable housing saw a sharp CAGR +5%
Source: United States Geological Survey,
Mineral Commodity Summaries, January 2022; pick-up in fiscal 2021 (April 2020-
CRISIL Research March 2021) and the strong execution 324
is expected to continue in fiscal 2022 301
291
(April 2021-March 2022). 281
Cement demand grew by an estimated 267
13.0% y-o-y in the calendar year 2021 252
Of the total housing units targeted till 239
(January to December) compared to a
2025, 47% have been completed under
FY16
FY17
FY18
FY19
FY20
FY21
FY15
8.6% y-o-y drop in calendar year 2020.
PMAY (Urban) and 57% under PMAY
(Rural).
Demand grew robustly during the first
nine months of calender year 2021 but FY=Fiscal year starting April to March
PMAY Target till Completed* Completed
heavy unseasonal rains and shortage 2025
Fiscal 21= April 2020 to Mar 2021
of sand in some regions led to a (mn houses) (mn houses) (%)
Average Daily Wage is simple average of
contraction in growth in the last quarter (A) (B) (B as % of A) construction, horticulture, general agriculture
and non-agriculture daily wage
of the year (October-December 2021). PMAY 11.4 5.4 47%
(Urban) Source: RBI-Handbook of Statistics on Indian
Government infrastructure spending, PMAY 29.5 16.9 57% States
pent up demand in the real estate (Rural)
segment and continuing rural demand *Data till December 2021 III. Infrastructure
for affordable housing remained the Source: Ministry of Housing and Urban Affairs The infrastructure sector is expected to
major drivers for cement consumption record healthy growth over the medium
in calender year 2021. Demand growth term led by the government’s thrust on
in the industrial/commercial segment the National Infrastructure Pipeline.
The Union Budget 2022 has allocated
was relatively lower.
`48,000 crore towards the PMAY
The NIP projects are worth `111
scheme and completion of 8 million
lakh crore and 80% of this are to be
OUTLOOK houses is envisaged in fiscal 2023 (April
invested in road, energy, urban rail and
Cement demand is expected to grow 2022-March 2023).
irrigation sectors.
at more than 7% y-o-y in calendar year
2022. The key drivers will be – Activity in residential housing projects
National highway and road
across towns and cities has also
development has been resilient through
a. Structural demand for housing due to witnessed a sharp rebound and is
the pandemic and the momentum
continued shortage of housing stock approaching pre-COVID levels.
is expected to continue. The Union
Budget 2022 has set a target to
b. Increase in rural incomes over recent II. Increase in rural incomes
construct 25,000 kms of national
years to further supplement cement Rural income in the recent years has
highways and has increased allocation
demand for individual housing increased due to higher returns on
for PMGSY by 36%.
cultivated produce and increase in
c. Healthy infrastructure growth budgetary outlay for various rural
The overall capital expenditure
over the next five years led by the income schemes such as Mahatma
allocation in Union Budget 2022 for
government push to expedite the Gandhi National Rural Employment
fiscal 2023 is up by 17% y-o-y with
National Infrastructure Pipeline (NIP) Guarantee Act (MNREGA), PM Kisan,
the allocation for core infrastructure
fertiliser subsidy scheme and Pradhan
sectors improving by 10% y-o-y.
d. Growth in industrial/commercial Mantri Grameen Sadak Yojana
segment driven by requirement (PMGSY).

overall capital expenditure (` cr.) COVID-19 vaccination drives and
camps in nearby villages with the help
17%
of the local administration. Several
10,43,200
12,19,200
Business oxygen concentrators were provided by
ACF during the second wave.
review Sales
− Backed by strong retail demand,
OPERATIONAL AND FINANCIAL cement sales volume reported
PERFORMANCE a growth of 17% despite the
With an installed capacity of
challenging April-June quarter
31.45 MTPA of cement, we continue
of 2021, when the second wave
to be a leading cement player in India
resulted in local restrictions and
FY22 FY23 with the retail segment contributing
inflationary pressures. Cement
to ~80% of our sales. Our wide range
production stood at 25.89 million
FY 2022= April 2021 to Mar 2022 of products, comprising Ordinary
tonne, reflecting a growth of 16%
FY 2023= April 2022 to Mar 2023 Portland Cement (OPC), Pozzolana
over 2020
Portland Cement (PPC), and Pozzolana
Capital expenditure for core Composite Cement (PCC), along − Sales value reported 23% increase,
infrastructure sectors (` cr.) with other sustainable and innovative owing to stronger volumes as well as
building materials and solutions, an increase in realisations
10% provides our customers a wide range
− There has been an increased
6,41,000 of choices.
5,81,700
penetration of value-added
products, resulting in an increased
A year of robust performance
realisation of 3.5% per tonne of
After a challenging 2020, we
cement, from `4,930 per tonne in
entered 2021 with renewed vigour
2020 to `5,105 per tonne in 2021
and optimism, backed by strong
demand from the retail segment. Our − Our strong market pull-and-
greenfield integrated unit at Rajasthan push strategies, along with
commenced operations in September cost optimisation and product
2021 and is expected to bolster our improvisation initiatives, helped in
FY22 FY23 growth in the coming years. While strengthening the sales of special
rise in input cost put pressure on our products. The segment made up
FY 2022= April 2021 to Mar 2022 margins, we undertook a host of cost 17% of the trade sales revenue
FY 2023= April 2022 to Mar 2023 optimisation initiatives that led us to in 2021
86%
absorb the impact. Meanwhile, our
Source: Union Budget 2022
continued focus on premiumisation led
The government’s proposal to grant to an increase in realisations.
Capacity utilisation in 2021, driven by
infrastructure status to data centres We strengthened our distributor
stronger market demand
and energy storage systems and its network further during the year under
focus on multi-modal logistics parks review.
Financial performance
and cargo terminals will also be a
− Revenue from operations reported
positive factor for cement demand in To secure raw material supply for our
a growth of 23% from `11,372 crore
the coming years. operations, we continued to invest
in 2020 to `13,965 crore in 2021.
in acquisition of mines (limestone)
The growth can be attributed to
across locations. Besides, several
robust market demand as well as
projects were initiated to optimise fuel
improvement in realisations
and freight costs, accelerate digital
transformation across plants, and − We embarked on several cost
improve efficiency. optimisation measures, which
helped in absorbing hikes in
Through Ambuja Cement Foundation the costs of various inputs and
(ACF), we continued to support enhanced profitability. We reported
communities across villages during the 21.2% growth in the operating
pandemic. We conducted awareness EBITDA for the year, from
and input sessions for the entire ACF `2,647 crore in 2020 to `3,207 crore
staff, health workers and beneficiaries in 2021. The net profit for the year
in order to break myths and rumours registered 16.2% growth, from
surrounding vaccination. We mobilised `1,790 crore in 2020 to

Key financial ratios
Inventory turnover Ratio (days)

2021 12.48
2020 13.14
Market development initiatives

Asset turnover ratio (x)
`2,081 crore in 2021. The operating
EBITDA margin declined 40 bps − We continued to bolster Below the 2021 1.68
while net profit margin declined Line and Above the Line activities to 2020 1.52
90 bps strengthen our market penetration
across geographies
− The earnings per share for the year
stood at `10.48 − Revived and launched a new Current ratio (X)
campaign trail with ‘Viraat
− Raw material costs per tonne 2021 1.26
Comprehensive Strength’ to connect
increased by 8.8% due to increase
with customers across digital 2020 0.98
in input material cost
platforms, and mainline and regional
− Power and fuel costs per tonne television channels
increased by 27% due to steep
increase in fuel prices
− Strengthened market penetration Return on average
with an addition of 1,850 new capital employed (%)
− Logistics cost per tonne decreased dealers across markets 2021 13.10
by 2.8%. This was a result of our
− Remained connected with 2020 11.50
digitalisation efforts in logistics as
customers through digital platforms
well as increased volume under
by conducting virtual meets
master supply agreement with ACC
Limited − Commissioned the Marwar plant net profit margin (%)
during the year which is further 2021 15.10
− The cash generated from the
expected to bolster our market
business declined by 5% from 2020 16.00
presence in the North Western
`2,606 crore in 2020 to
region of the country
`2,466 crore in 2021
− Focused approach helped
Performance of material subsidiary strengthen sales of ‘Kawach’
Operating EBITDA margin (%)
ACC Limited, the material subsidiary of 2021 23.30
− Undertook various initiatives to
Ambuja Cement, is among the leading 2020 23.70
strengthen our relationship with
cement companies in India with an
architects, engineers, contractors,
installed capacity of 34.45 MTPA. The
and masons to enhance the
performance of the company during the
experience of our end-consumers
year has been summarised below: Return on net worth (%)
− Cement sales volume for the year
OUTLOOK 2021 9.80
Going ahead, our focus will continue 2020 8.40
increased 13% at 28.9 million tonnes
to remain on strengthening the share
− Revenue for the year stood of value-added products in our
`16,152 crore, reflecting a growth portfolio. We will further strengthen
of 17%. The operating EBITDA our market penetration by entering
Debtors turnover ratio (x)
reported 27% increase in 2021 into newer geographies. We aim to 2021 56.92
to reach `2,998 crore, largely further augment our capacities through 2020 31.71
owing to the cost control initiatives brownfield expansions, as well as
undertaken by the company de-bottlenecking initiatives across our
existing units. Sustainability will remain For a detailed discussion on
− Profit after tax for the year stood at financial capital, please refer to
the focus area in whatever we do.
`1,863 crore, reflecting a growth of
Page 42
30% over `1,430 crore reported
in 2020

Strategic ACCELERATING DELIVERING SUPERIOR
priorities and GROWTH PERFORMANCE
progress STRATEGIC
PRIORITIES
Aligned with our parent
company Holcim, we have
realigned our strategic
priorities around four LEADING IN SUSTAINABILITY EXPANDING SOLUTIONS AND
AND INNOVATION PRODUCTS
pillars.
ACCELERATING GROWTH 3.5 million beneficiaries through our coming year will be to further improve
Given the low per capita cement various Corporate Social Responsibility logistics efficiencies by reducing lead
consumption in comparison to the programs across the country. and delivery cost, ensuring direct
global average, and the continued dispatches from rake points, network
focus on infrastructure and housing Low CO2 cement is a key focus area optimisation, and leveraging our Master
sectors, cement demand in India to achieve our sustainability goals. We Supply Agreement with ACC Limited.
is expected to grow strongly in the are also actively working to increase
foreseeable future. As an established the share of green power in our overall People capabilities
player in the industry, our ambition is power mix, and investing in Waste Employees remain our key assets and
to grow profitably in this flourishing Heat Recovery Systems with 40 MW of we have been taking initiatives for
market. projects in progress, and another their holistic development. Under our
40 MW in the pipeline. ‘People of Tomorrow’ initiative, we are
During 2021, we successfully developing our talent pool to meet our
commissioned our integrated greenfield The SBTi’s Target Validation Team has strategic objectives. We are plugging
facility at Marwar, in Rajasthan, classified your company’s scope 1 and gaps across functions and continuously
enhancing our annual clinker capacity 2 target ambition and has determined developing the team. Considering the
by 3 MTPA and the cement capacity that it is in line with a well-below 2°C lingering impact of the pandemic, we
by 1.8 MTPA. We have finalised on trajectory. have initiated multiple initiatives to
brownfield expansion of 1.5 MTPA ensure the mental and financial well-
cement at our existing plant in Ropar, DELIVERING SUPERIOR PERFORMANCE being of our employees.
Punjab. This pillar focuses on superior
performance of our existing portfolio We are committed to creating a diverse
32.95 MTPA
through premium variants, cost and inclusive workplace. During the
efficiency projects, enhancing our year, out of the new employees hired,
people capabilities and digitalisation of 9% of them were women.
Expected capacity by the end of
systems and processes.
2023
We have undertaken structured
Premium variants initiatives to identify leaders of
LEADING IN SUSTAINABILITY AND We are reinforcing our core position tomorrow and encourage internal
INNOVATION in profitable markets and in the retail employees to assume strategic roles.
Sustainability is a core value for segment through a wide range of Our pool of future leaders will help us
Ambuja Cement with clearly defined premium offerings – Ambuja Plus, achieve long-term business goals.
strategic goals as enunciated in our Ambuja Kawach, and Compocem.
`678 CRORE
Sustainable Development Plan 2030 This will enhance our brand image and
(SDP 2030). By 2030, we aim to reduce improve our average realisations.
our CO2 emissions per tonne of cement
Employee benefit expenses in 2021
to 453 kg (excluding captive power Cost efficiency projects
plant), and to also reuse 18 million The ongoing initiatives under ICAN
tonnes of waste-derived resources. - our flagship program - continue to
Our target is to be 10x water positive, deliver significant improvements across
and to positively impact the lives of our value chain. A key focus in the

Digitalisation of systems and business and operations sustainable blend of available domestic and import
processes and secure. Some of the risks may be options. Besides, we are going to adopt
We will continue to strengthen our ongoing, while a few could be emerging more sustainable and efficient energy
digital footprint across our value chain risks due to the changing environment modes and options.
- from our operations and distribution around our business operations.
to our customer interfaces. The We are investing continuously to
market- focused digital initiatives, KEY RISKS IDENTIFIED IN 2021 make our plants compatible for fuel
implementation of the ‘Plants of Raw material flexibility while using residual fuels such
Tomorrow’ initiative, and leveraging Demand for fly ash and slag has as washery rejects, dolachar, Coal
digitalisation in logistics will be the key increased multifold on account of Shale, coal fines etc. We will eventually
drivers for superior performance. continuous capacity expansion and replace our grid dependency by
larger adoption of blended cement, increasing the usage of alternate fuels
Expanding solutions and products resulting in increased pressure on and raw materials and install WHRS,
Our solutions and products portfolio availability and price. While supply was solar and wind energy sources.
(temperature-resistant concrete impacted due to contraction in power
blocks, micro-fine mineral additives demand and delayed blast furnace Health and Safety
and maturity sensors), while nascent, steel production during the pandemic, Maintaining safety of all stakeholders,
aims to complement our strength in this resulted in a demand-supply be it internal or external, is a
our core cement business, and cater imbalance and consequent hardening humongous task, especially in today’s
to specialised applications. We will of prices. challenging times where we wish to
continue to scale up volumes and promote our vision of ‘Zero Harm’ in
revenue, and strengthen our position A well-considered plan has been laid our day-to-day operations (road safety,
in this segment. Our aim in 2022 is down to address the risks. We have safe project execution, safe supply
to augment top line revenue growth increased the usage of wet/conditioned chain movements, etc.). At the same
by more than 40% in solutions and fly ash and also increased the pace tme, we want to continue to ensure
products. of investment for fly ash dryer at that we follow all Health & Safety (H&S)
our plants. We can also expect slag related protocols without impacting
Read more on Page 26 availability and price to show some business.
correction with a more balanced
demand-supply equation. In order to meet this dual challenge, a
Business Risks Team was created to
Further, we are participating in monitor and adhere to all applicable
limestone auctions to create a pipeline H&S protocols across the organisation.
Risks and areas for our upcoming greenfield projects in
attractive markets. We are also continuing with our
of concern Energy
safety induction programs for our
employees/labour/third party workers
High volatility in global fuel prices and and reviewing them from time to time
Our comprehensive Enterprise Risk
high power cost add up to the risk. Our to ensure full compliance with H&S
Management (ERM) framework helps
journey to mitigate the risk of energy directives/guidelines. The Transport
us identify risks and opportunities and
has been initiated through an optimum
monitor their movement. It ranks each
risk based on two parameters:
a) likelihood of the event and
b) the impact it is expected to have
on the Company’s operations and
performance to form a risk heat map.
The risks that fall under the purview
of high likelihood and high impact are
identified as primary risks. ERM also
identifies the potential emerging risks.
This structured process of identifying

risks supports the management in
making strategic decisions and in
developing detailed mitigation plans.
The identified risks are then integrated
into the Company’s planning cycle,
which is a rolling process, and is
reviewed periodically to make the

Analytic Center is in place for tracking threat detection and response Environmental impact
various parameters for vehicles and (ETDR) solutions for advanced threat Climate change, CO2 emission,
providing inputs for improving driving protection (e.g. Cylance/Carbon Black/ securing resources like water,
behaviour. CrowdStrike) to tackle advanced limestone, coal etc. and other
persistent threats/Ransomware and environmental changes could hugely
Information and cyber security advanced malwares. impact business and we meed to
With faster-than-expected evolution prepare today to meet this risk.
of technology and digitalisation, the Backup solutions have been developed Proactive steps taken today will ensure
risks associated with these have also for critical users and local servers, a sustainable tomorrow.
evolved. The proliferation of business which provide immutable backup,
data beyond our data centres to cloud, encryption and snapshot of the solution We are consistently investing in low
social media and digital platforms for to restore data and protect against carbon technologies to increase
business-to-business and business- advanced malwares. our attractiveness. We also focus
to-consumer connect, have forced us on changing customer behaviour so
to change the way we deal with cyber We are also implementing multi-factor that more and more green products
security. There is a need to tighten authentication for critical applications are encouraged in the market, thus
certain key security controls (including to guard against identity and password creating a win-win situation for all.
cyber security) across levels (network, theft. Many more such ongoing
application, data, etc.) investments are being made in this Holcim has been rendering research
area to ensure sustained security of and development support for the
To keep pace with technology our system and process across the development of new products with
advances and associated risks, organisation. lower clinker factor.
we have implementation end point
Read more on Page 38
Health and
Safety
As we continue to face the COVID-19
pandemic, our commitment towards
safeguarding the health of our people,
and efforts to ensure safety at our
workplaces has been in greater focus.
On the COVID front, the Company’s
Business Resilience Team (BRT)
has worked proactively to protect
our people against the disease
by implementing a set of dynamic
guidelines (as per the evolving
situation). Also, more than 99%
vaccination (both doses) has been
achieved for employees, dependents
and workers. We adapted as the year
progressed and ensured sustainable
operations in a challenging environment
with an even better H&S performance.
Our superlative H&S performance is

demonstrated by the fact that we had
zero onsite and offsite fatalities in all
our operating units. Till date, we have
achieved 101.8 million safe onsite
manhours in our operating plants

four key pillars (climate and energy,

circular economy, water and nature,
and community), under which key
initiatives are undertaken. Despite a
challenging 2021, we could achieve
considerable improvements across our
pillars and are confident of achieving
our 2030 targets.
We could validate our 2030 carbon

emission reduction targets by the
Science Based Targets initiative (SBTi),
aligned with the reductions required
to limit global warming. The SBTi’s
Target Validation Team has classified
your company’s scope 1 and 2 target
ambition and has determined that it is
in line with a well-below 2°C trajectory.
With this, Ambuja Cement has now
joined the group of global companies
for promoting an ambitious low carbon
economy model for the industry. This is
just another step towards strengthening
without any major accident. During the same is in place and preparations for our Climate Change adaptability. In
year, we also reduced our Lost Time execution are in an advanced stage. CDP Climate Change 2021, Ambuja
Injury Frequency Rate (LTIFR) by 24% Cement was rated A- (Leadership).
and Total Injury Frequency Rate (TIFR) Read more on Page 100
by 21% as compared to 2020. We have also taken up materiality
assessment, which will help us in
While we worked towards making our identifying areas of action that are
sites safer, we also took responsible core to business, environment and
and significant steps in our journey governance.
towards reducing manual handling Sustainability
across the country through the We have tied up with the Indian Institute
installation of automatic conveyor initiatives of Technology Delhi to develop green
systems at seven of our largest products like Limestone Calcined Clay
warehouses. We have been setting benchmarks Cement (LC3), which will add to our
in creating sustainable business sustainable products portfolio and
Our strategy in 2021 was to sustain operations in the industry. Continuous help us reduce our carbon footprint.
performance with a focus on frontline improvement, enhanced process We are 8x water positive and have
safety. Our safety journey was planned efficiency and periodic capital emerged 3.5x plastic negative through
under six pillars - Onsite Safety, Zero expenditures have helped us position co-processing of plastic wastes in
Harm Culture, Systems and Processes, Ambuja Cement as one of the most our kilns. We are the first ever cement
Control of Health Risks, Road responsible cement manufacturers company globally to make it to the
Fatality Reduction and Environmental in the country. We are sure that our ‘A’ list in the CDP Water Security
Excellence. The actual output was continued efforts will help us in building 2021, which demonstrates our water
assured through a strong governance sustainability benchmarks in the long stewardship.
and assurance system that reviewed run.
deliverables on a monthly basis. The positive changes made through our
Our sustainability initiatives are also sustainability efforts helped us win 5th
While we have delivered an excellent aligned with the United Nations position in the Dow Jones Sustainability
H&S performance in line with our Sustainable Development Goals Index (DJSI) 2021 among construction
values and long-term sustainability (UN SDGs), and we report on them materials companies globally. In the
development goals, we are conscious in accordance with the latest Global ‘S&P Global Sustainability Awards
of the need for continued commitment Reporting Initiatives (GRI) standards. 2021’, Ambuja Cement received the
and greater effort in the years to In line with our parent company Holcim, ‘Bronze Class Award’ in the COM
come, so as to sustain and improve we have developed the Sustainable sector on a global level.
performance. Our planning for the Development Plan 2030, identifying

and do more than placing and tracking efficiency, we completed
orders through our Dealer Connect implementation of Technical
app. Information Systems (TIS) and
Digital Our simple and user-friendly contractor
Performance and Collaboration Tool
(PACT) dashboards across all our
transformation app has been the jewel in the crown. It
has won the award for being the ‘Best
plants in 2021 to capture and visualise
all process-related data. This has
Mobile Loyalty Program’ in the 14th provided data transparency at the
We have seen an uptick in the adoption
Customer First Leadership Awards, plant, region and country levels, and
of digital means for doing business
2021, having seen the user base grow has laid the foundation for running
across all the functions after the
65% from 46,000+ to 76,000+, despite various machine learning algorithms,
setback caused by the pandemic. Our
the intermittent disruptions during last targeted at improving operational
digital transformation strategy was
year. efficiency.
targeted at making our digital assets
more functional so that we could better
Overall, we saw a considerable change Going ahead, as technology pervades
serve growing customer needs.
in behaviour in favour of adopting deeper and deeper into human lives,
digital means for doing business. we see data grow more significant as
To smoothen remote ways of working
a critical resource. Digital prowess
for our employees and partners, we
In the manufacturing function, we have is steadily ascending and gaining a
augmented our digital apps with added
a two-pronged focus on safety and competitive edge, even in a brick-and-
features. The apps for employees
operational efficiency using artificial mortar industry like ours. To ride the
now have more information to serve
intelligence and machine learning wave of technology ascension, we are
customers, automated means of
technologies. now focusing on the unison of digital
marking market visits, and the ability
assets across the business to create
to capture geo-spatial information.
Our sustained efforts on safety a synergistic impact on revenue and
Besides, we built an in-house platform,
bore fruits with the completion of margin management.
‘Write to MD & CEO’ to have a direct
a successful pilot using drones for
connect with the leadership. Through
unmanned inspection. We further plan
this platform, our employees can
to automate our weighbridge facilities,
express, suggest innovative ideas, and
contactless operations, smart cameras
offer feedback.
for intrusion detection, and robotic labs
Our dealers now have more discreet
for quality inspection.
Corporate
business information available on
their mobiles. They can perform
Under our ‘Plants of Tomorrow’
initiative to enhance operational
social
compliance-related functions digitally,
responsibility
Our community development initiatives
are implemented at the local level,
thereby channeling contributions to
areas of the greatest impact in the
local context. We have been working
towards the development of our
communities around our plant areas
since the inception of the Company.
We consider these communities as our
primary stakeholders, and our vision is
to ensure their prosperity (through our
CSR arm Ambuja Cement Foundation)
in tandem with our growth.
Our aim is to fulfil basic human rights of

the communities. In line with our goals,
our key intervention areas include,
water resource management, skill
development, as well as agri-livelihood
development, women empowerment,
community health, and education
for all.

We use IT-supported platforms to

keep the IFC framework robust. The
design as well as the effectiveness
of the internal controls are assessed
during the year. This provides
reasonable assurance across
multiple functions and locations
through extensive documentation
reviews, enquiries, testing and other
procedures as considered appropriate
in the circumstances. Based on the
assessment of internal audit, process
owners undertake corrective action to
strengthen the controls on an ongoing
basis.
The strong in-house Internal Audit

(IA) department, consisting of
professionals skilled to deliver audit
During the pandemic, the community
assurance at the highest levels,
needed immediate assistance.
reports to the Chairman of the Audit
We worked closely with the local
Committee, thereby maintaining its
administration and health departments
to ensure that the communities Internal control objectivity and independence. The
scope and authority of the IA function
remained safe and carried out
initiatives to restrict the spread of systems and is defined in the Internal Audit Charter.
Over a period, the IA department
the virus. We organised vaccination
camps in the remote areas for their adequacy has acquired in-depth knowledge
about the Company, its businesses,
community stakeholders, as well as
systems and procedures, which is now
ensured that other stakeholders such The Company recognises that
institutionalised. Our IA function is ISO
as our workers and truckers were implementation of corporate
9001:2015 certified.
vaccinated. We managed to vaccinate governance reinforces the corporate
26.9 lakh people in our locations. The culture and values among employees
The IA department develops a risk-
need for volunteers peaked during and business partners. A strong
based annual internal audit plan,
the debilitating second wave of the internal control framework sets the
which covers core business operations
pandemic, for which we trained tone and serves as the foundation
as well as support functions. The
volunteers on basic of COVID-19 for the implementation of corporate
IA plan is approved by the Audit
management. Today, we have over governance policies and guidelines.
Committee at the beginning of every
6,000 community youths as ‘Ambuja The Company’s Internal Financial
year. The IA department carries
CoviSAINIKs,’ working closely with the Controls (IFC) framework, established
out risk-focused audits across all
local administration. in accordance with the Committee
locations and functions, enabling
of Sponsoring Organisations (COSO)
identification of areas where risk
While we invest in our CSR initiatives, framework, is commensurate with the
management processes may need
we have also created a multiplier size and operations of the business,
to be strengthened. Significant audit
effect and leveraged other like-minded and is in line with the requirements
observations and corrective action
organisations to join hands with us to of the Companies Act, 2013. This
plans are presented to the Audit
implement our program models across framework includes well-documented
Committee. The whistle blower
extended geographies. Due to such policies, procedures and Standard
mechanism also forms part of the
partnerships, the Ambuja Cement Operating Procedures (SOP), specific
internal controls and is overseen by
Foundation, acting as an implementing to respective processes. Regular
the Audit Committee. This formalised
partner, has reached 11 states covering management review processes
system of internal control and risk
43 districts in India, and has succeeded evaluate various policies for the
management framework facilitates
in bringing about a change in the lives dynamic and evolving business
effective compliance of Section 138 of
of 2.7 million people. environment. Furthermore, our internal
the Companies Act, 2013 and relevant
auditors undertake rigorous testing
statutes applicable to the Holcim
Details on CSR expenditure mandated of the control environment of the
Group.
by the relevant laws are presented Company.
under Annexure 1 of the Directors’
Report. The CSR Policy of Ambuja
Cement is available on the website.

Directors’ Report
Dear Members,
It is our pleasure to present the Annual Report of Ambuja Cements Limited for the year ended December 31, 2021. The PDF
version of the Report is also available on the Company’s website (www.ambujacement.com/investors/annual-reports).
Financial Performance – 2021

(` in crore)
Standalone Consolidated
Particulars Current Year Previous Year Current Year Previous Year
2021 2020 2021 2020
SUMMARISED PROFIT AND LOSS
Net Sales 13,793.56 11,174.97 28,548.08 24,093.86
Profit before depreciation & amortisation, finance cost and 3,493.12 3,018.60 6,562.84 5,455.16
exceptional items
Depreciation and amortisation expense 551.24 521.17 1,152.49 1,161.78
Finance costs 90.94 83.05 145.66 140.22
Share of profit of associates and joint ventures - - 20.23 14.44
Exceptional items 65.69 - 120.45 176.01
Profit before tax and non controlling interest 2,785.25 2,414.38 5,164.47 3,991.59
Tax expense 704.71 624.28 1,453.43 884.75
Net Profit before non controlling interest 2,080.54 1,790.10 3,711.04 3,106.84
Non controlling interest - - 930.66 741.40
Profit attributable to the owners of the Company 2,080.54 1,790.10 2,780.38 2,365.44
Movement in Retained Earnings
Opening Balance 1,644.64 3,534.96 3,925.98 5,248.70
Net profit for the year 2,080.54 1,790.10 2,780.38 2,365.44
Add : other comprehensive income 5.59 -6.97 8.40 -14.34
Less : Dividend on equity shares 198.56 3,673.45 198.56 3,673.45
Less : Corporate dividend tax on above - - - 0.37
Closing balance 3,532.21 1,644.64 6,516.20 3,925.98
There are no significant changes in the key financial ratios affirmed by the credit rating agency CRISIL with long-term
during the year under review. instrument rated as AAA/STABLE and short-term instrument
rated as A1+.
Dividend
Management’s Discussion and Analysis Report
The Company has a robust track record of rewarding its
shareholders with a generous dividend pay-out. In view of Management’s Discussion and Analysis Report for the
the strong operational and financial performance during year under review, as stipulated under the Securities and
the year under review, the Board of Directors is pleased Exchange Board of India (Listing Obligations and Disclosure
to recommend a dividend of `6.30 per share (315%)for Requirements) Regulations, 2015, is presented in a separate
the year ended December 31, 2021. This represents a section, forming part of the Annual Report.
pay-out ratio of 60%.
The dividend pay-out is in accordance with the Company’s

Capacity Expansion and New Projects
Dividend Distribution Policy. The Policy is available on the The Company’s current installed capacity is 31.45 MTPA.
Company’s website https://www.ambujacement.com/Upload/ Detailed information on capacity expansion and new projects
PDF/dividend-distribution-policy.pdf is covered in the report on Management Discussion and
Analysis.
As per the prevailing provisions of the Income Tax Act, 1961,
the dividend, if declared, will be taxable in the hands of the
shareholders at the applicable rates. For details, shareholders
Company’s Response to COVID
are requested to refer to the Notice of annual general meeting. The COVID-19 crisis continued to impact during the year
2021 as well. As the pandemic prolonged another year,
Credit Rating Ambuja Cement Foundation (ACF), our CSR arm decided to
The Company’s sound financial management and its ability turn more resilient and approached with utmost optimism.
to service financial obligations in a timely manner, has been

The nationwide vaccination drive steered ACF into running fuels. These efforts of the Company were highly recognised in
awareness campaigns, plying beneficiaries to vaccination various ESG benchmarking and ratings.
centres and offering assistance at vaccination camps. Till date,
27 lakh people are fully vaccinated due to ACF’s mobilisation. A It is a matter of pride for all of us to note that Ambuja became
community volunteering program called ‘Ambuja CoviSAINIK’ 1st ever Cement Company in the World to achieve “A” rating
was also launched offering a cadre of community members to (Leadership) in Water Security CDP 2021. Ambuja was rated
the health administration as volunteering support. A-(Leadership) in CDP Climate Change 2021 also. During the
year 2021, Ambuja ranked 5th in the World in Construction
During the year, we launched several health and wellness Material (COM) Category at the prestigious Dow Jones
programs for our employees and stakeholders covering various Sustainability Index (DJSI) 2021, thus, only cement company
aspects of physical and emotional wellbeing, counselling from India to appear in top 5 in DJSI. In the ‘S&P Global
support and awareness. In particular, together with health Sustainability Awards 2021’, Ambuja got “Bronze Class Award”
professionals and hospitals across our various locations, we in COM sector.
offered COVID-19 related care for our employees and their
families. Necessary safety and hygiene protocols like wearing
of face masks, social distancing norms, workplace sanitation
Disclosures under the Companies Act, 2013 and Listing
and employee awareness programmes were followed in
Regulations
compliance with the regulations of the local authorities. Annual Return
The Annual Return as required under section 92 and section
Corporate Social Responsibility (CSR) and Sustainability 134 of the Companies Act, 2013 read with Rule 12 of the
Companies (Management and Administration) Rules, 2014
CSR, where we envision prosperous communities around our is available on the Company’s website (www.ambujacement.
manufacturing sites has always been part of our DNA and integral com/investors/annual-reports).
to sustainable business practices. Through Ambuja Cement
Foundation (ACF), we have reached to 2.81 million people across Number of Board Meetings
3,547 villages in 50 districts spanning 11 states of India.
Six Board meetings were held during 2021. The particulars of
the meetings held and attended by each Director during the
Through need based assessments and active community
financial year 2021 are given in the Corporate Governance
engagement and participation, ACF works on thrust areas
Report which forms part of this Annual Report.
across sites addressing the social and economic issues of
the communities. The core areas include Water Resource
Composition of the Audit Committee
Management, Agro-based as well as skill based livelihood
development, Healthcare, Women Empowerment and The Board has constituted the Audit Committee, which has
Education. Mr. Rajendra Chitale as the Chairman and Mr. Nasser Munjee,
Ms. Shikha Sharma, Mr. Martin Kriegner, Mr. Mahendra Kumar
During the year under review, your Company has spent Sharma and Dr. Omkar Goswami as members. More details on
`64.41 crore on CSR activities, which is 3.52% against the the committee are given in the Corporate Governance Report
mandated 2% of the average net profit of last three years as forming part of this Report.
required under section 135 of the Companies Act, 2013.
During the year under review, all recommendations made by
The Annual Report on CSR activities and expenditure, as the Audit Committee were accepted by the Board.
required under sections 134 and 135 of the Companies Act,
2013 read with Rule 8 of the Companies (Corporate social Related Party Transactions
Responsibility Policy) Rules, 2014 and Rule 9 of the Companies In line with the requirements of the Companies Act, 2013 and
(Accounts) Rules, 2014, is provided as Annexure I to this Listing Regulations, the Company has formulated a Policy
Report and the CSR Policy along with the action plan of CSR on Related Party Transactions, which is also available on
activities for the Financial Year 2022 is available on the website the Company’s website (https://www.ambujacement.com/
of the Company. Upload/PDF/Policy-on-materiality-of-RPT-221020.pdf).
Our Sustainable Development Plan 2030, ‘Building for All the related party transactions entered into by the Company
Tomorrow’ is on track and progressing well in four thrust areas during the financial year were on an arm’s length basis and in
for our business; Climate & Energy, Circular Economy, Nature the ordinary course of business and adheres to the applicable
& Environment and Community. Our operational-site level provisions of the Act and the Listing Regulations. There were
objectives help the respective heads align with and accomplish no materially significant related party transactions made by
overall sustainability objectives. With the strides made in 2021 the Company with Promoters, Directors, Key Managerial
on validated Science Based Targets initiative (SBTi), and Net Personnel or others, which may have a potential conflict
Zero ambition by 2050, we are aligned towards our parent with the interest of the Company at large or which warrants
Holcim’s sustainability targets as well as global efforts. the approval of the shareholders. No material contracts or
arrangements with related parties were entered during the
We are also progressing well on our targets in areas such as year. All related party transactions are presented to the Audit
Waste Heat Recovery System (WHRS), Renewable Energy, Committee and the Board. Omnibus approval is obtained
Clinker Factor reduction, Energy Efficiency (thermal and before the commencement of the financial year, for the
electrical), and use of Waste-derived resources/ alternative transactions which are repetitive in nature and also for the
transactions which are not foreseen (subject to financial limit).

A statement of all related party transactions is presented long-term improvements in corporate value, and accordingly
before the Audit Committee on a quarterly basis, specifying the Company works to strengthen such structures. The
the nature, value, and terms and conditions of the transactions. Company believes that a strong internal control framework is
The statement is supported by the certification from the an important pillar of Corporate Governance.
Managing Director & Chief Executive Officer and the Chief
Financial Officer. All related party transactions are subject to The current system of Internal Financial Controls is aligned
half-yearly independent review by a reputed accounting firm with the requirement of the Companies Act, 2013 and is in
to establish compliance with the requirements of Arms’ Length line with globally accepted risk-based framework as issued
Pricing. by the Committee of sponsoring Organisations (COsO) of
the Treadway Commission. This framework includes entity-
In accordance with section 134 of the Companies Act, 2013 level policies, processes and standard Operating Procedures
and Rule 8 of the Companies (Accounts) Rules, 2014, the (SOP). Compliance with these policies and procedures is
particulars of the contract or arrangement entered into by the ingrained into the management review process. Moreover, the
Company with related parties referred to in section 188(1) in Company regularly reviews them to ensure both relevance
Form AOC-2 is attached as Annexure II of this report. and comprehensiveness of the Internal Financial Controls.
The Company uses IT-supported platforms to keep the IFC
Policy on Sexual Harassment of Women at Workplace framework robust.
The Company has zero tolerance towards sexual harassment at
the workplace and to this end, has adopted a policy in line with The Company periodically assesses design as well as
the provisions of Sexual Harassment of Women at Workplace operational effectiveness of its internal controls across
(Prevention, Prohibition and Redressal) Act, 2013 (POSH multiple functions and locations through extensive internal
Policy) and the Rules thereunder. All employees (permanent, audit exercises. Based on the assessment of internal audit
contractual, temporary, trainees) are covered under the said function, process owners undertake corrective action in
Policy. An Internal Complaints Committee (ICC) has also been their respective areas, and thereby strengthen the controls.
set up to redress complaints received on sexual harassment. Significant audit observations and corrective actions thereon
are presented to the Audit Committee of the Board.
During the financial year under review, the ICC received one
complaint, which was dealt in line with the POSH Policy of the Managing the Risks of Fraud, Corruption and Unethical
Company and disposed off. No cases of child labour, forced Business Practices
labour, involuntary labour and discriminatory employment
were reported during the period. Vigil Mechanism/Whistle-Blower Policy
Ambuja’s core value has been to create a fraud and corruption-
The Company is committed to providing a safe and conducive free culture. We believe that the potential risk of fraud,
work environment to all its employees and associates. corruption and unethical behaviour could adversely impact the
Company’s business operations, performance and reputation.
With a view to create ethical environment and to mitigate the
Corporate Governance risk of fraud, a comprehensive Ethical View Reporting Policy
The Company has complied with the corporate governance akin to Vigil Mechanism or the Whistle-Blower Policy has been
requirements under the Companies Act, 2013 and the Listing laid down.
Regulations. A separate section on corporate governance,
along with a certificate from the statutory auditors confirming This policy encourages Directors, employees and third parties
compliance is annexed and forms part of the Annual Report. to bring to your Company’s attention, any instances of illegal
or unethical conduct, actual or suspected incidents of fraud,
actions that affects the operational & financial integrity and
Risk Management actual or suspected instances of leak of unpublished price
The Company has formulated an Enterprise Risk Management sensitive information that could adversely impact operations,
(ERM) policy to identify, assess and mitigation of various risks business performance and/or reputation.
to our business, which is covered in detail in the Management
Discussion and Analysis Report attached to this Report. In terms of the said Policy, all the reported incidents are
reviewed by the Ethical View Committee. Based on an
The Risk management committee at Ambuja is constituted in-depth review, all such incidents are investigated in an
under the chairmanship of Mr. Rajendra Chitale, Independent impartial manner and appropriate actions are taken to uphold
Director. The objective of the Committee is to define the the highest professional, ethical and governance standards.
framework for the identification, assessment, monitoring and The Policy also provides for the requisite checks, balances
mitigation of risks, oversee the risk management performance and safeguards to ensure that no employee is victimised or
of the Management and to review the ERM policy framework harassed for reporting and bringing up such incidents in the
in line with the regulatory requirements. interest of the Company.
No personnel have been denied access to the Audit Committee

Internal Audits and Controls for any matter pertaining to the Ethical View Policy. The
The establishment of an effective corporate governance and implementation of the Policy and the functioning of the Ethical
internal control system is essential for sustainable growth and View Committee is overseen by the Audit Committee.

More details on this Policy are given in the Corporate and experience to have a diverse Board. The Policy also lays
Governance Report, which forms part of this Report. down the positive attributes/criteria while recommending the
The Policy is available on the Company’s website candidature for the appointment of a new Director.
(www.ambujacement.com/investors).
The Board Diversity Policy of the Company requires the
Code of Conduct Board to have a set of accomplished individuals, ideally
The Company has laid down a robust Code of Business representing a wide cross-section of industries, professions,
Conduct and Ethics, which is based on the principles of ethics, occupations and functions and possessing a blend of skills,
integrity and transparency. More details about the Code is domain and functional knowledge, experience and educational
given in the Corporate Governance Report. qualifications, both individually, as well as collectively.
Anti-bribery and Corruption Directives (ABC Directives) Directors are appointed/re-appointed with the approval of the
Members for a term in accordance with the provisions of the
In furtherance to the Company’s philosophy of conducting
law and the Articles of Association. The initial appointment of
business in an honest, transparent and ethical manner,
Managing Director & Chief Executive Officer is generally for
the Board has laid down ‘ABC Directives’ as part of the
a period of five years. All Directors other than Independent
Company’s Code of Business Conduct and Ethics. As a
Directors are liable to retire by rotation unless otherwise
Company, Ambuja Cement has zero-tolerance to bribery and
specifically provided under the Articles of Association or under
corruption and is committed to act professionally and fairly
any statute. One-third of the Directors who are liable to retire
in all its business dealings. To spread awareness about the
by rotation, retire at every Annual General Meeting and are
Company’s commitment to conduct business professionally,
eligible for re-appointment.
fairly and free from bribery and corruption and as part of
continuous education to the employees on ‘ABC Directives’,
The relevant abstract of the Policy for selection, Appointment
regular awareness emails were circulated, face-to-face and
and Remuneration of Directors is given as Annexure III to
online trainings were conducted, and close to 1200 relevant
this report.
employees were trained.
Independent Directors
The above policies and its implementation are closely
monitored by the Audit and Compliance Committees of The Independent Directors have submitted the Declaration of
Directors and periodically reviewed by the Board. Independence, stating that they continue to fulfil the criteria
of independence as required pursuant to section 149 of
the Companies Act, 2013 and Regulations 16 of the Listing
Board of Directors and Key Managerial Personnel Regulations. This section require companies to have at least
Retirement by Rotation one-third of the total number of Directors as Independent
Director and the Company complies with this requirement.
In accordance with the provisions of the Companies Act,
There has been no change in the circumstances affecting their
2013 and the Articles of Association of the Company,
status as Independent Directors of the Company. The profile
Mr. Christof Hassig (DIN 01680305), and Mr. Ranjit Shahani
of the Independent Directors forms part of the Corporate
(DIN 00103845) Non-Executive Directors of the Company are
Governance Report
liable to retire by rotation at the ensuing Annual General Meeting
of the Company and being eligible, have offered themselves for
In the Board’s opinion, the Independent Directors are persons
re-appointment. The Board recommends their re-appointment.
of high repute, integrity and possess the relevant expertise and
experience in their respective fields.
More details about the Directors are either given in the
Corporate Governance Report or in the Notice of the ensuing
Board Evaluation
Annual General Meeting being sent to the shareholders along
with the Annual Report. The annual evaluation process of the Board, its committees
and individual Directors for the year 2021 was conducted as
Key Managerial Personnel per provisions of the Companies Act, 2013 and the Listing
Regulations with a view to maintain high level of confidentiality
Mr. Neeraj Akhoury, Managing Director & CEO, Ms. Rajani
and ease of doing evaluation, the exercise was carried out
Kesari, Chief Financial Officer and Mr. Rajiv Gandhi, Company
online using secured web-based application. Each Board
Secretary are the Key Managerial Personnel of the Company.
member filled up the online evaluation template on the
functioning and overall level of engagement of the Board and
During the year under review, there were no changes in the Key
its committees, on parameters such as composition, execution
Managerial Personnel of the Company.
of specific duties, quality, quantity and timeliness of flow of
information, deliberations at the meeting, independence of
Attributes, Qualifications and Independence of Directors
judgement, decision-making, management actions etc. The
and their Appointment
evaluation templates were designed considering the guidelines
The Nomination & Remuneration Committee of Directors issued under the Listing Regulations and secretarial standards
have approved a policy for the selection, Appointment and and taking into consideration the suggestions given by the
Remuneration of Directors, which inter-alia, requires that the Directors.
Directors shall be of high integrity with relevant expertise

Feedback Mechanism i) in the preparation of the annual accounts, the applicable
A one-on-one meeting of the individual Directors with the accounting standards have been followed and that no
Chairman of the Board was also conducted as a part of self- material departures have been made from the same;
appraisal and peer-group evaluation and the engagement and
impact of individual Director was reviewed on parameters ii) they have selected such accounting policies, judgements
such as attendance, knowledge and expertise, inter-personal and estimates that are reasonable and prudent and have
relationship, engagement in discussion and decision-making applied them consistently to give a true and fair view of
process, actions oriented and others. The Directors were also the state of affairs of the Company as on December 31,
asked to provide their valuable feedback and suggestions on 2021, and of the statement of Profit and Loss and Cash
the overall functioning of the Board and its committees and Flow of the Company for the period ended December
the areas of improvement for a higher degree of engagement 31, 2021
with the management.
iii) proper and sufficient care has been taken for the
Evaluation Results maintenance of adequate accounting records in
accordance with the provisions of the Companies Act,
The Independent Directors met on December 15, 2021 to
2013 for safeguarding the assets of the Company and for
review the performance evaluation of Non-Independent
preventing and detecting fraud and other irregularities
Directors and the entire Board of Directors, including the
Chairman, while considering the views of the Executive and
iv) the annual accounts have been prepared on going
Non-Executive Directors.
concern basis
The Independent Directors were highly satisfied with the overall
v) proper internal financial controls to be followed by the
functioning of the Board and its various committees, which
Company have been laid down and that such internal
displayed a high level of commitment and engagement. They
financial controls are adequate and were operating
also appreciated the exemplary leadership of the Chairman of
effectively
the Board and its committees in upholding and following the
highest values and standards of corporate governance.
vi) proper systems to ensure compliance with the provisions
of all applicable laws have been devised and that such
Post the review by the Independent Directors, the results were
systems are adequate and are operating effectively
shared with the entire Board and its respective committees.
The Board expressed its satisfaction with the evaluation
results, which reflects very high degree of engagement of the Auditors & Auditors’ Report
Board and its committees with the Management.
Statutory Auditor
Based on the outcome of the evaluation and assessment cum M/s. Deloitte Haskins & Sells, LLP, Chartered Accountants (ICAI
feedback of the Directors, the Board and the Management have Firm Registration No. 117366 W/W-100018) were appointed
agreed on various action points, which will be implemented as the Statutory Auditors for a period of five years commencing
during the year 2022. The Board also suggested various areas from the conclusion of the 34th Annual General Meeting until the
such as sustainability, strategy, risk management etc. requiring conclusion of the 39th Annual General Meeting. Accordingly,
more focused attention from the Management. M/s. Deloitte Haskins & Sells LLP will be completing their
term of five years at the conclusion of the forthcoming Annual
Remuneration Policy General Meeting.
The Company follows a policy on the Remuneration
The company is proposing to appoint M/s. SRBC & Co
of Directors and senior Management Employees. The
LLP (Firm Registration No. 324982E/E300003), Chartered
Policy is approved by the Nomination & Remuneration
Accountants, as Statutory Auditors for a period of 5 years
Committee and the Board. The main objective of the
commencing from the conclusion of the 39th Annual General
said Policy is to ensure that the level and composition of
Meeting till the conclusion of the 44th Annual General Meeting.
remuneration is reasonable and sufficient to attract, retain
and motivate the Directors, Key Managerial Personnel
M/s. SRBC & Co LLP is a leading professional services firm
(KMP) and senior Management employees. The remuneration
engaged in the field of audit, taxation, risk and transaction advisory
involves a balance between fixed and incentive pay, reflecting
services.
short- and long-term performance objectives appropriate to
the working of the Company and its goals. The Remuneration
M/s. SRBC & Co LLP have consented to the said appointment,
Policy for the Directors and senior Management employees is
and confirmed that their appointment, if made, would be within
given in the Corporate Governance Report.
the limits mentioned under Section 141(3)(g) of the Companies
Act, 2013 and the Companies (Audit and Auditors) Rules, 2014.
Induction and Familiarisation Programme for Directors
Further, they have confirmed that they hold a valid certificate
The details of the induction and Familiarisation programme of issued by the Peer Review Board of the Institute of Chartered
the Directors are given in the Corporate Governance Report. Accountants of India (ICAI).
Directors’ Responsibility The Audit Committee and the Board of Directors recommend the
appointment of M/s. SRBC & Co LLP, Chartered Accountants
Pursuant to section 134 of the Companies Act, 2013, the Board as Statutory Auditors of the company from the conclusion of
of Directors to the best of their knowledge and ability confirm
that:

the 39th Annual General Meeting till the conclusion of the 44th provisions of section 204 of the Companies Act, 2013 for 2021
Annual General Meeting. and his report is annexed as Annexure IV to this Report. The
report does not contain any qualification, reservation and
The Board places on record its appreciation for the services adverse remarks.
of M/s. Deloitte Haskins & Sells LLP, Chartered Accountants,
during their tenure as the Statutory Auditors of your company. Reporting of Fraud
The Auditors of the Company have not reported any fraud as
The Auditors’ Report for financial year 2021 on the financial specified under section 143(12) of the Companies Act, 2013.
statements forms part of this Annual Report. The Auditors have
also furnished a declaration confirming their independence
as well as their arm’s length relationship with the Company as Compliance with Secretarial Standards on Board and
well as declaring that they have not taken up any prohibited Annual General Meetings
non-audit assignments for the Company. The Audit Committee The Company has complied with the Secretarial Standards
reviews the independence of the Auditors and the effectiveness issued by the Institute of Company secretaries of India on
of the Audit process. The Auditors attend the Annual General Board Meetings and Annual General Meetings.
meeting of the Company.
The observations made by the Statutory Auditors on the Significant and Material Orders Passed by the Courts or
Financial Statements of the company, in their Report for Regulators
the financial year ended December 31, 2021, read with the Order passed by the National Company Law Appellate
explanatory notes therein, are self-explanatory and, therefore, Tribunal (NCLAT) in the Matter of Penalty Levied by the
do not call for any further explanation or comments from the Competition Commission of India (CCI)
Board under Section 134(3)(f) of the Act. The Auditors’ Report
i) Appeal filed by the Company against the Order of the
does not contain any qualification, reservation or adverse
CCI levying penalty of `1,163.91 crore on the Company
remark or disclaimer. Explanations or comments by the Board
was heard and dismissed by the NCLAT in July 2018
on emphasis of matters made by the statutory auditors in their
and CCI’s Order was upheld. Further, the Company has
report includes Order passed by the Competition Commission
challenged the judgement passed by NCLAT before the
of India in two matters, which has been dealt in more detail
Hon’ble Supreme Court in September 2018. The Hon’ble
in this Report.
Supreme Court has admitted the Company’s Appeal and
ordered for the continuation of interim order passed by
Cost Auditor
the Tribunal.
Pursuant to section 148 of the Companies Act, 2013, the Board
of Directors on the recommendation of the Audit Committee ii) Pursuant to a reference filed by the Director, supplies
appointed M/s P.M. Nanabhoy & Co. Cost Accountants (ICWAI and Disposals, Government of Haryana, the CCI vide its
Firm Registration No. 000012) as the Cost Auditors of the Order dated January 19, 2017 has imposed a penalty
Company for 2022 and has recommended their remuneration of `29.84 crore on the Company. The Company filed
to the shareholders for their ratification at the ensuing Annual an Appeal before the Competition Appellate Tribunal
General Meeting. M/s P.M. Nanabhoy & Co. have given their (COMPAT) and obtained an interim stay on the operation
consent to act as Cost Auditors and confirmed that their of the said Order. Further, by virtue of Government of India
appointment is within the limits of the section 139 of the notification, all cases pending before the COMPAT were
Companies Act, 2013. They have also certified that they are transferred to the NCLAT and as such, the hearing on the
free from any disqualifications specified under Section 141 Appeal is underway at the NCLAT.
of the Companies Act, 2013. The Audit Committee has also
received a certificate from the Cost Auditor certifying their Other than the aforesaid, there have been no significant
independence and arm’s length relationship with the Company. and material orders passed by the courts or regulators
Pursuant to Companies (Cost Records and Audit) Rules, 2014, or tribunals impacting the ongoing concern status and
the Cost Audit Report for the financial year 2020 was filed with the Company’s operations. However, members’ attention
the Ministry of Corporate Affairs on May 25, 2021 vide SRN: is drawn to the statement on contingent liabilities and
T20097267. commitments in the notes forming part of the Financial
statements.
As per the requirements of section 148 of the Act read with the
Companies (Cost Records and Audit) Rules, 2014, the Company
has maintained cost accounts and records in respect of the Particulars of loans, guarantees or investments
applicable products for the year ended December 31, 2021. Particulars of loans, guarantees given and investments
made during the year, as required under section 186 of the
Secretarial Auditor Companies Act, 2013 and schedule V of the Securities and
The Board had appointed Mr. Jayesh Shah, (CP No.2535), Exchange Board of India (Listing Obligation and Disclosure
Partner of M/s. Rathi & Associates, Company secretaries in Requirement) Regulations, 2015, are provided in Notes 26 and
whole-time practice, to carry out Secretarial Audit under the 34 of the standalone financial statements.

Treasury Operations Consolidated Financial Statements
During the year, the Company’s treasury operations continued
As stipulated by Regulation 33 of the Listing Regulations, the
to focus on cash forecasting and the deployment of excess
Consolidated Financial Statements have been prepared by
funds on the back of effective portfolio management of
the Company in accordance with the applicable Accounting
funds within a well-defined risk management framework. All
Standards. The audited Consolidated Financial Statements,
investment decisions in deployment of temporary surplus
together with Auditors’ Report, form part of the Annual Report.
liquidity continued to be guided primarily by the tenets of
safety of Principal and liquidity. Surplus funds are parked only
Pursuant to section 129(3) of the Companies Act, 2013, a
within the approved investment categories with well defined
statement containing the salient features of the financial
limits. Investment category is periodically reviewed by the
statements of each subsidiary, joint venture and joint operations
Company’s Board of Directors.
in the prescribed Form AOC-1 is annexed as Annexure VII to
this Report.
During the year, the investment portfolio mix was continuously
rebalanced in line with the evolving interest rate environment.
Pursuant to section 136 of the Companies Act, 2013, the
financial statements of the subsidiary and joint venture
Transfer of Unclaimed Dividend and Unclaimed shares companies are kept for inspection by the shareholders at
the Registered Office of the Company. The Company shall
The details relating to unclaimed dividend and unclaimed
provide free of cost, the copy of the financial statements of its
shares forms part of the Corporate Governance Report forming
subsidiary and joint venture companies to the shareholders
part of this Report.
upon their request. The statements are also available on the
Company’s website (www.ambujacement.com/investors).
Energy, Technology and Foreign Exchange
The consolidated net profit attributable to the Company is
Information on the conservation of energy, technology
`2,780.38 crore for 2021 as compared to `2,365.44 crore for
absorption, foreign exchange earnings and out go is required
2020.
to be given pursuant to the provisions of section 134 of the
Companies Act, 2013, read with the Companies (Accounts)
Rules 2014, which is marked as Annexure V to this Report. Business Responsibility Reporting
The Company follows the <IR> framework of the International
Particulars of Employees Integrated Reporting Council to report on all the six capitals
that are used to create long-term stakeholder value. We also
There were 4,418 permanent employees of the Company
provide the requisite mapping of principles between the
(excluding the employees on probation and shipping sailing
Integrated Report, the Global Reporting Initiative (‘GRI’) and
staff) as of December 31, 2021. The disclosure pertaining
the BRR as prescribed by SEBI. The report is independently
to remuneration and other details as required under section
assured by TUV India Private Limited.
197(12) of the Companies Act, 2013 read with Rule 5(1) of the
Companies (Appointment and Remuneration of Managerial
As stipulated under the Listing Regulations, the Business
Personnel) Rules, 2014 is annexed as Annexure VI to this
Responsibility Report (BRR) describing the initiatives
Report.
undertaken by the Company from an environment, social and
governance perspective is available on Company’s website
Further, a statement showing the names and other particulars
https://www.ambujacement.com/Upload/Content_Files/
of employees drawing remuneration in excess of the limits
annual-reports/Business-Responsibility-Report-2021.pdf
as set out in the Rules 5(2) and 5(3) of the aforesaid Rules
forms part of this Report. However, in terms of first provision
A copy of the BRR will be made available by email to any
of section 136(1) of the Act, the Annual Report and Accounts
shareholder on request.
are being sent to the members and others entitled thereto,
excluding the aforesaid information. The said information is
available for inspection by the members at the Registered Other Disclosures
Office of the Company during business hours on working
No disclosure or reporting is made with respect to the following
days up to the date of the ensuing Annual General Meeting.
items, as there were no transactions during the year under
If any member is interested in obtaining a copy thereof, such
review:
member may write to the Company secretary, whereupon a
copy would be sent.
• Details relating to deposits that are covered under Chapter
V of the Act
subsidiaries, Joint Ventures and Joint Operations • The issue of equity shares with differential rights as to
As of December 31, 2021, the Company has six subsidiaries, dividend, voting or otherwise
one joint venture and one joint operation.
• The issue of shares to the employees of the Company under
any scheme (sweat equity or stock options)
The Policy for determining Material subsidiaries adopted by the
Board pursuant to Regulation 16 of the Listing Regulations, can • There is no change in the Share Capital structure during the
be accessed on the Company’s website (www.ambujacement. year under review
com/investors).

• The Company does not have any scheme or provision of conditions affecting selling prices, new capacity additions,
money for the purchase of its own shares by employees or availability of critical materials and their cost, changes in
by trustees for the benefits of employees government policies and tax laws, economic development of
the country and other factors that are material to the business
• Managing Director & CEO has not received any remuneration
operations of the Company.
or commission from any of its subsidiaries
• There was no revision in the financial statements
Appreciations and Acknowledgements
• There was no change in the nature of business
Your Directors place on record their deep appreciation to
• There were no material changes and commitments affecting every member of Ambuja family for their hard work, dedication
financial position of the Company between the end of the and commitment, to whom the credit for the Company’s
financial year and the date of this report achievements goes, particularly during this unprecedented
year. Your Directors would also like to acknowledge the
• The Company has not transferred any amount to reserves
valuable contribution by the Company’s Promoter, M/s Holcim
during the year under review.
Ltd. in continuous improvement in our Business Practices.
Equal Opportunity Employer Your Company looks upon its suppliers, distributors, retailers,
business partners and others associated with it in its progress
The Company has always provided a congenial atmosphere for
and the Board places on record its appreciation for the support
work that is free from discrimination and harassment, including
and co-operation from all of them. The Directors take this
sexual harassment. It has provided equal opportunities of
opportunity to express their deep sense of gratitude to the
employment to all without regard to their caste, religion, colour,
Banks, Government and Regulatory authorities, both at Central
marital status and sex.
and State level for their continued guidance and support.
Caution Statement And to you, our shareholders, we are deeply grateful for the
confidence and faith that you have always reposed in us.
Statements in the Directors’ Report and the Management
Discussion and Analysis describing the Company’s objectives,
For and on behalf of the Board of Ambuja Cements Limited
expectations or predictions may be forward-looking within
the meaning of applicable securities laws and regulations.
Mumbai N. S. Sekhsaria
Actual results may differ materially from those expressed in the
Date February 17, 2022 Chairman & Principal Founder
statement. Crucial factors that could influence the Company’s
operations include global and domestic demand and supply

Annexure I to Directors’ Report
Annual Report on CSR Activities for Financial year 2021

1) Brief outline on CSR Policy of the Company:
Ambuja Cements Ltd. (ACL) conducts its CSR Programs mainly through its social development arm, Ambuja Cement Foundation (ACF).
ACF was envisioned in 1993 to create self-empowered communities. Since the last 3 decades, ACF has been working mainly with
communities around ACL’s manufacturing sites, across thirty two districts in eleven states. ACF’s approach is to energise, involve and
enable communities to realise their true potential and be self sustaining. The key identified programme areas of ACF are Natural Resource
Management (Land and Water Resource Management), Livelihood Promotion (Agro Based Livelihoods and Skill and Entrepreneurship
Development), Human Development (Community Health and Sanitation, Education and Women Empowerment) & Rural Infrastructure
Development.
CSR activities in the field of education and healthcare services are being undertaken by Ambuja Vidya Niketan Trust and Ambuja Hospital
Trust.
2) Composition of CSR Committee:
Number of CSR No. of the CSR
Sr.
Name of the Director & Designation/Nature of Directorship Committee meetings Committee meetings
No.
held during the year attended during the year
1 Mr. Narotam Sekhsaria, Chairman 5 5
2 Mr. Nasser Munjee, Independent Director 5 4
3 Mr. Rajendra Chitale, Independent Director 5 5
4 Mr. Martin Kriegner 5 4
5 Mr. Mahendra Kumar Sharma 5 5
6 Mr. Neeraj Akhoury 5 5
3) Provide the web-link where Composition of CSR committee, CSR Composition of CSR Committee : https://www.ambujacement.com/
Policy and CSR projects approved by the board are disclosed on the about-ambuja/management-team/othercommittees
website of the company. CSR Policy : https://www.ambujacement.com/Upload/PDF/ACL-
CSR-Policy-2021.pdf
CSR Projects : https://www.ambujacement.com/Upload/PDF/CSR-
Projects-approved-by-the-Board---FY-2021.pdf
4) Provide the details of Impact assessment of CSR projects carried Nil
out in pursuance of sub-rule (3) of rule 8 of the Companies
(Corporate Social Responsibility Policy) Rules, 2014, if applicable:
5) Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social responsibility Policy)
Rules, 2014 and amount required for set off for the financial year, if any
(` in crore)
Amount available for Amount required to be
Sr.
Financial Year set-off from preceding set-off for the financial
No.
financial years year, if any
1 Financial year 2020 23.07 NIL
6) Average net profit of the company as per section 135 (5) (` in Crore): 1,828.50
7) Details of the CSR Obligation:
a) Two percent of average net profit of the company as per section 135(5) 36.57 crores
b) Surplus arising out of the CSR projects or programmes or activities of the previous -
financial years.
c) Amount required to be set off for the financial year, if any -
d) Total CSR obligation for the financial year (7a+7b-7c). 36.57 crores
8 (a) CSR amount spent or unspent for the financial year:

Amount Unspent (` in crore)
Total Amount transferred to Unspent CSR Amount transferred to any fund specified under Schedule VII as per
Total Amount Spent for the Account as per section 135(6). second proviso to section 135(5).
Financial year (` in crore)
Amount. Date of transfer. Name of the Fund Amount. Date of transfer
64.41 Not Applicable
8 (b) Details of CSR amount spent against ongoing projects for the year ended December 31, 2021:
(` in crore)
Amount
Item from
Local Location of Amt. Amt. spent by transferred to
Name the list of Mode of Name of CSR
area the Project Project allocated implementing Unspent CSR
Sr of the activities in Implementation Implementation Registration
(Yes / (District and Duration for the agencies & account for the
project schedule VII Direct (Yes/No) Agency Number
No) State) project Ambuja itself project as per
to the Act
section 135 (6)
Not Applicable

8 (c) Details of CSR amount spent against other than ongoing projects for the financial year:
Amount
Mode of Name of
Item from the list of activities in Local area Location of the Project spent in CSR Registration
Sr Name of the project Implementation Implementation
schedule VII to the Act (Yes / No) (District and State) the current Number
Direct (Yes/No) Agency
financial year
1 Drinking Water Program Eradicating extreme hunger, Yes 1. Nadikudi, Guntur, Andhra Pradesh 1.97 No
2 Integrated Crop Management poverty and malnutrition, promoting Yes 2. Chattisgarh 3.18 No
3 Animal Husbandry and Dairy preventive health care and sanitation Yes A) Bhatapara, Baloda Bazar 0.35 No
4 Farmer Producer Organisations and making available safe drinking Yes B) Raigarh 0.88 No
5 Promotion of Horticulture and water Yes 3. Gujarat 0.44 No
Vegetables Cultivation A) Kodinar, Gir Somnath
6 Community Healthcare Yes B) Gandhinagar 4.15 No
7 Sanitation Yes C) Sanand, Ahmedabad 0.48 No
8 Water Use Efficiency Yes D) Surat 0.49 No
9 Education- School Support Yes E) Junagarh 1.29 No
program F) Ahmedabad
10 Special School: Ambuja Promoting education, including Yes 4. Himachal Pradesh 0.64 No
Manovikas Kendra special education and employment A) Darlaghat, Solan
11 Skill And Entrepreneurship enhancing vocational skills Yes B) Nalagarh, Solan 9.29 No Ambuja Cement
5. Amarwara, Chhindwara, Madhya Pradesh CSR00006913
Development Institute (SEDI) especially among children, women, Foundation
elderly, and the differently abled and 6. Maharashtra
12 Micro enterprise/ Income Yes 0.50 No
Corporate Overview
livelihood enhancement projects. A) Gadchandur, Chandrapur

Generation program in Self Help
B) Panvel, Raigad
Groups
C) Higna, Nagpur
13 Women Federation Yes 0.21 No
D) Mumbai
14 Women Self Help Groups Promoting gender equality, Yes 0.96 No
E) Nagpur
15 Water Harvesting & Recharge empowering women, setting up Yes 3.52 No
Ambuja Cements Limited

7. Punjab
16 Non Conventional, Biogas, Solar homes & hostels for women & Yes 0.07 No
A) Bathinda
and Plantation orphans; setting up old age homes,
B) Ropar, Roopnagar
day care centres and such other
C) Firozpur
facilities for senior citizens &
Statutory Reports
D) Nanki, Faridkot and Barnala

measures for reducing inequalities
8. Rajasthan
faced by socially and economically
A) Marwar, Nagaur
background groups
B) Rabriyawas, Pali
17 Rural development projects. Ensuring environmental Yes 13.53 No Ambuja Cement CSR00006913
C) Hanumangarh, Ganganagar
sustainability, ecological balance, Foundation
9. Roorkee & Bhagwanpur, Haridwar,
protection of flora and fauna, animal
Uttarakhand
welfare, agroforestry, conservation
10. Dadri, Gautam Budh Nagar, Uttar Pradesh
of natural resources and maintaining

11. West Bengal
quality of soil, air and water
A) Farakka, Murshidabad
B) Sankrail, Howrah
18 Monitoring, Research & Yes 5.75 No Ambuja Cement CSR00006913
Evaluation Studies Foundation
19 Education Promoting education, including Yes - Kodinar, Gir Somnath, Gujarat 4.50 No Ambuja Vidya CSR00003629
special education and employment - Darlaghat, Solan, Himachal Pradesh Niketan Trust
enhancing vocational skills - Rabriyawas, Pali, Rajasthan
especially among children, women, - Bhatapara, Baloda Bazar, Chhattisgarh
elderly, and the differently abled and - Gadchandur, Chandrapur, Maharashtra
livelihood enhancement projects.
20 Healthcare Eradicating extreme hunger, Yes Gir Somnath, Gujarat 3.70 No Ambuja Hospital CSR00003430
poverty and malnutrition, promoting Trust
preventive health care & sanitation
and making available safe drinking
water
143
Amount
144
Mode of Name of
Item from the list of activities in Local area Location of the Project spent in CSR Registration
Sr Name of the project Implementation Implementation
schedule VII to the Act (Yes / No) (District and State) the current Number
Direct (Yes/No) Agency
financial year
21 COVID-19 Support Supply of Oxygen cylinder and Yes Oxygen Cylinder Distributed: 6.36 Yes Not Applicable NA
setting up oxygen plants - Dadri, Gautam Budh Nagar, Uttar Pradesh
- Rabriyawas, Pali, Rajasthan
- Marwar, Nagaur, Rajasthan
- Delhi
- Nalagarh, Solan, Himachal Pradesh
- Gurgaon, Haryana
Oxygen Plants donated at Hospital

- Dadri, Gautam Budh Nagar, Uttar Pradesh
- Marwar, Nagaur, Rajasthan
- Farakka, Murshidabad, West Bengal”
22 Infrastructure Dispatch of Cement for Charitable Yes Marwar, Rajasthan 0.25 Yes NA
Purpose
23 Others Utkarsh Global Foundation For Yes Mumbai, Maharashtra 0.03 Yes NA
Animal Welfare
Total 62.54
8 (d) Amount spent in Administrative Overheads 1.87 crore

8 (e) Amount spent on Impact Assessment, if applicable Nil
8 (f) Total amount spent for the Financial Year(8b+8c+8d+8e) 64.41 crore

8 (g) Excess amount for set off, if any
Sr. no. Particulars Amount (` in crore)
(i) Two percent of average net profit of the Company as per Section 135(5) 36.57
(ii) Total amount spent for the Financial Year 64.41
(iii) Excess amount spent for the Financial Year [(ii)-(i)] 27.84
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any. Nil
(v) Amount available for set off in succeeding Financial Years [(iii)-(iv)] 27.84
9 (a) Details of Unspent CSR amount for the preceding Financial Years: Not Applicable
9 (b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial years: Not Applicable

10) In case of creation or acquisition of capital asset, furnish the details relating to the assets so created or acquired through CSR spent in the financial year:
a) Date of Creation or acquisition of the capital asset(s)
b) Amount of CSR spent for creation or acquisition of capital assets
Not Applicable
c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their address etc.
d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset).
11) Specify the reason(s), if the company has failed to spend two percent of the average net profit as per Section 135(5) Not Applicable
On behalf of the CSR Committee
Sd/- Sd/-
N.S.Sekhsaria Neeraj Akhoury
CHAIRMAN - CSR COMMITTEE MANAGING DIRECTOR & CEO
(DIN NO. 00276351) (DIN NO. 07419090)
Annexure II to Directors’ Report
Form No. AOC - 2

January to December - 2021
Particulars of contracts contracts/arrangements made with related parties
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)
This Form pertains to the disclosure of particulars of contracts/arrangements entered into by the company with related parties
referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm’s length transactions under third
proviso thereto.
Details of contracts or arrangements or transactions not at arm’s length basis

There were no contracts or arrangements or transactions entered into during the year ended December 31, 2021, which are
not at arm’s length basis.
Details of material contracts or arrangement or transactions at arm’s length basis

No material related party transactions as stipulated under the Companies Act, 2013 or SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 were entered during the year by the Company.
The details of the significant transactions with Related Party are as follows:-
Nature of Amount
Name of the related party Duration of Contract Terms (1)
Relationship (` in crore)
Nature of Contract
Purchase of goods
Holcim Trading Ltd., Switzerland Fellow Subsidiary Case to Case Purchase Based on Transfer Pricing 199.03
orders Guidelines
ACC Limited Subsidiary January 1, 2021 - Based on Transfer Pricing 479.34
December 31, 2021 Guidelines
678.37
Sale of goods
888.21
Receiving of services
Holcim Technology Ltd, Switzerland Fellow Subsidiary January 1, 2021 - Based on Transfer Pricing 131.25
Holcim Services (South Asia) Limited Fellow Subsidiary January 1, 2021 - Based on Transfer Pricing 39.52
241.81
Rendering of services
56.26
Note:
1. All related party transactions entered during the year were in Ordinary course of business and at Arm’s length basis.
2. Appropriate approvals have been taken from Audit Committee, Board and Shareholders (wherever required) for the related
party transactions entered by the Company and advances paid have been adjusted against bills, wherever applicable.

Annexure III to Directors’ Report
Abstract of the Policy for selection and appointment of Directors

The Nomination and Remuneration (N&R) Committee has adopted a Charter which, inter alia, deals with the manner of selection
of Board Directors and Managing Director & CEO and their remuneration. The Charter also deals with the remuneration Policy
for Senior Management Employees. This Policy is accordingly derived from the said Charter.
1. Criteria of selection of Non Executive Directors

i. The Non Executive Directors shall be of high integrity with relevant expertise and experience so as to have a diverse
Board with Directors having expertise in the fields of manufacturing, marketing, finance & taxation, law & governance
and general management.
ii. In case of appointment of Independent Directors, the N&R Committee shall satisfy itself with regard to the Independent
nature of the Directors vis-à-vis the Company so as to enable the Board to discharge its function and duties effectively.
iii. The N&R Committee shall ensure that the candidate identified for appointment as a Director is not disqualified for
appointment under Section 164 of the Companies Act 2013.
iv. The N&R Committee shall consider the following attributes / criteria whilst recommending to the Board the candidature
for appointment as Director.
a. Qualification, expertise and experience of the Directors in their respective fields;
b. Personal, Professional or business standing
c. Diversity of the Board
v. In case of re-appointment of Non Executive Directors, the Board shall, take into consideration the performance
evaluation of the Director and his engagement level.
2. Criteria of selection/appointment of Managing Director & CEO

For the purpose of selection of the MD & CEO, the N&R Committee shall identify persons of integrity who possess relevant
expertise, experience and leadership qualities required for the position and shall take into consideration recommendation
if any, received from any member of the Board.
The Committee will also ensure that the incumbent fulfils such other criteria with regard to age and other qualifications as
laid down under the Companies Act or other applicable laws.

Annexure IV to Directors’ Report

SECRETARIAL AUDIT REPORT
[Pursuant to Section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
FOR THE YEAR ENDED 31ST DECEMBER, 2021
To i. The Securities and Exchange Board of India

The Members, (Prohibition of Insider Trading) Regulations,
Ambuja Cements Limited 2015;
Elegant Business Park, MIDC Cross Road ‘B’,
Off. Andheri - Kurla Road, Andheri (East), ii.
The Securities and Exchange Board of
Mumbai – 400 059 India (Listing Obligations and Disclosure
Requirements) Regulations, 2015.
Dear Sirs,
iii.
The Securities and Exchange Board of
We have conducted online verification and examination of
India (Substantial Acquisition of Shares and
records, as facilitated by the Company, due to COVID-19
Takeovers) Regulations, 2011;
and subsequent lockdown situation for the purpose of the
secretarial audit of the compliance of applicable statutory
2. Provisions of the following Regulations and Guidelines
provisions and the adherence to good corporate governance
prescribed under the Securities and Exchange Board of
practice by Ambuja Cements Limited (hereinafter called “the
India Act, 1992 (‘SEBI Act’) were not applicable to the
Company”) and for issuing this Report. Secretarial Audit was
Company during the year under report:-
conducted in a manner that provided us a reasonable basis for
evaluating the corporate conduct/statutory compliances and
i. The Securities and Exchange Board of India (Issue
expressing our opinion thereon.
and Listing of Debt Securities) Regulations, 2008;
Based on our verification of the Company’s books, papers,
ii. The Securities and Exchange Board of India (Delisting
minutes books, forms and returns filed and other records
of Equity Shares) Regulations, 2009;
maintained by the Company and also the information
provided by the Company, its officers, agents and authorized
iii.
The Securities and Exchange Board of India
representatives during the conduct of secretarial audit, we
(Buyback of Securities) Regulations, 2018;
hereby report that in our opinion, the Company has, during
the audit period covering calendar year (“year”) ended on
iv.
The Securities and Exchange Board of India
December 31, 2021, complied with the statutory provisions
(Registrars to an Issue and Share Transfer Agents)
listed hereunder and also that the Company has proper Board
Regulations, 1993, regarding the Companies Act and
processes and compliance mechanism in place to the extent,
dealing with client;
in the manner and subject to the reporting made hereinafter:
v. The Securities and Exchange Board of India (Issue of
1. We have examined the books, papers, minutes books,
Capital and Disclosure Requirements) Regulations,
forms and returns filed and other records maintained by
2018; and
Ambuja Cements Limited (“the Company”) for the year
ended on December 31, 2021, according to the applicable
vi. The Securities and Exchange Board of India (Share
provisions of:
Based Employee Benefits) Regulations, 2014;
(i) The Companies Act, 2013 (the Act) and the rules
We further report that, having regard to the compliance system
made thereunder;
prevailing in the Company and on examination of the relevant
documents and records in pursuance thereof, on test-check
(ii) The Securities Contracts (Regulation) Act, 1956
basis, the Company has complied with following Acts, Laws
(‘SCRA’) and the rules made thereunder;
and Regulations applicable specifically to the Company:
(iii) The Depositories Act, 1996 and the Regulations and
(i) Mines and Mineral (Regulation and Development) Act,
Bye-laws framed thereunder;
1957 read with Mineral Conservation and Development
Rules, 1988
(iv) Foreign Exchange Management Act, 1999 and the
rules and regulations made thereunder to the extent
(ii) Mines Act, 1952 read with Mines Rules, 1955
of Foreign Direct Investment and Overseas Direct
Investment and External Commercial Borrowings;
(iii) Cement Cess Rule, 1993
(v) The following Regulations and Guidelines prescribed
(iv) Cement (Quality Control) Order, 2003.
under the Securities and Exchange Board of India
Act, 1992 (‘SEBI Act’):-

We have also examined compliance with the applicable clauses Since none of the members have communicated dissenting
of Secretarial Standards 1 and 2, issued by The Institute of views in the matters / agenda proposed from time to time for
Company Secretaries of India under the provisions of the consideration of the Board and Committees thereof, during the
Companies Act, 2013. year under the report, hence were not required to be captured
and recorded as part of the minutes.
During the year under the report, the provisions of the Acts,
Rules, Regulations, Guidelines, Standards, etc. mentioned We further report that there are adequate systems and
above read with circulars, notifications and amended rules, processes in the Company commensurate with the size and
regulations, standards etc. issued by the Ministry of Corporate operations of the Company to monitor and ensure compliance
Affairs, Securities and Exchange Board of India and such with applicable laws, rules, regulations and guidelines.
other regulatory authorities for such acts, rules, regulations,
standards etc. as may be applicable, from time to time issued We further report that the Company had furnished the requisite
for compliances under the pandemic situation, have been information / clarifications / explanations in response to the
complied with by the Company. letter received from Registrar of Companies, Gujarat, Dadra
and Nagar Haveli. There has been no further correspondence
We further report that: from the said Authority.
The Board of Directors of the Company is duly constituted There was no event/action which had major bearing on the
with proper balance of Executive Directors, Non-Executive Company’s affairs in pursuance to the above referred laws,
Directors and Independent Directors. There were changes in rules, regulations, guidelines, standards, etc.
the composition of the Board of Directors of the Company.
The changes in the Board of Directors that took place during For RATHI & ASSOCIATES
the year under report were carried out in compliance with the COMPANY SECRETARIES
provisions of the Act.
JAYESH SHAH
Adequate notice is given to all directors to schedule the Board PARTNER
Meetings, except for the meeting convened for urgent matters, MEM. NO. FCS 5637
agenda and detailed notes on agenda were sent at least Date: February 17, 2022 COP No. 2535
seven days in advance and a system exists for seeking and Place: Mumbai UDIN: F005637C002622781
obtaining further information and clarifications on the agenda
Note: This report should be read with our letter of even date
items before the meeting and for meaningful participation at
which is annexed as Annexure I and forms are integral part of
the meeting.
this report.
To, Annexure I
The Members
Elegant Business Park, MIDC Cross Road ‘B’,
Off. Andheri – Kurla Road, Andheri (East),
Mumbai – 400 059
Our report of even date is to be read along with this letter.
1. Maintenance of Secretarial record is the responsibility of the management of the Company. Our responsibility is to express
an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts
are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis
for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
4. Wherever required, we have obtained the Management representation about the compliance of laws, rules and regulations
and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards, is the responsibility
of management. Our examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Company.
For RATHI & ASSOCIATES
COMPANY SECRETARIES
JAYESH SHAH
PARTNER
Date: February 17, 2022 MEM. NO. FCS 5637
Place: Mumbai COP No. 2535

Annexure V to Directors’ Report

Conservation of Energy, Technology Absorption And Foreign Exchange Earnings And Outgo Pursuant to the
provisions of Section 134 of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2016.
A) Conservation of Energy 16. Optimisation of grinding aid consumption (Farakka,

Sankrail, Roorkee)
(a) The steps taken or impact on conservation of energy:
17. Reduction in STEC by 3.5 % by implementing
1. Optimisation of bag filter operation (purging time/ o p e r a t i o n a l m e a s u r e s , H LC i n s t a l l a t i o n
cycle time/delay time) at TPP. (Bhatapara, Roorkee, commissioning & tuning, process optimisation (Suli,
Farakka, Dadri, Nalagarh) Rauri)
2. Optimising Aux power by replacement of three 18. Reduction in SULI SEEC by 1.8 kWh/t-Cem by
Nos High efficiency CCW Pumps for STG-TPP. implementing operational discipline, i.e. judicious
(Bhatapara) blending of limestone from both mines (Suli)
3. Reduction in SHR and aux power consumption by 19. Upgradation of OLBC 2 VFD to avoid starting
replacing STG3 vacuum pump. (Bhatapara) problems and subsequent production loss (Reliability
improvement) (Suli, Rauri)
4. Improvement in SEEC of Line 2 Clinker power by
reduction in False Air ingress in Pre-heater fan inlet 20. Maximised usage of WFA 17 % in PPC grinding (out
down-comer duct. Pre Heater fan power reduced by of 32.8 total FA) (Suli, Rauri)
1unit/T Clk. (Bhatapara)
21. Burner up gradation (Suli, Rauri)
5. Coal Ash analyser, to analyse ash content of coal at
site. (Bhatapara) 22. VFD Installation in ILC Coal Firing Blower (480 kWh/
Day saving) (Rabriyawas)
6. Idle running of packers and its connected equipment
monitored on a daily basis, Avoid Idle running. 23. Power Factor Improvement at 6.6 KV in all sections
(Bhatapara) of cement plant (INR 11K/Day Benefit) (Rabriyawas)
7.
Power Factor maintained 0.99 by optimising 24. Conversion of motors from Delta to Star Connection
capacitor banks (Bhatapara, Sankrail, Bhatinda) in 3 nos. Packing Plant JPFs (360 kWh/Day Savings)
(Rabriyawas)
8. Installation of LED Lights at Plant and Colony.
(Bhatapara, Sankrail, Farraka) 25. Cooler IKN Grates Cleaning to achieve improved
secondary air temperature
9. Management of change in OT environment (Farraka,
Dadri) 26. Reduction in System Voltage from 6.66 KV to 6.55
KV (1680 kWh/Day Saving) (Rabriyawas)
10. Silo RADAR Level sensors upgradation (Cement &
flyash) (Farraka) 27. Optimisation of Grinding Media Pattern in CM 4
(Reduction of 3.1 kWh/T from Previous Year) (Ropar)
11.
Weigh feeder inter count controller replaced.
(Farraka, Dadri) 28. Optimisation of Grinding Media Pattern and Proper
Production Planning of Different 47. Products with
12. Direct unloading of FA bulker in Mill feed FA hopper minimum change overs in CM 2 (Reduction of 4.0
instead of Fly ash silo by installing auto change over kWh/T from Previous Year) (Ropar)
pneumatic operated valve (Farraka)
29. Increased Fly Ash Consumption by 3.8% in PPC
13. Reduction in Electrical power consumption by Production (From 29.5% in 2020 to 33.3% in 2021)
increasing mill throughput from 164 to 173. (CM (Ropar)
-SEEC Reduced From 2020: 34.30 kWh/t to 32.51
kWh/t in 2021) (Power Saving: 1.79 kWh /t of Cmt 30. Reduction in CPP SHR Consumption from 3,456 to
with various initiatives) (Farakka) 3389 kCal/kWh (Ropar)
14. Optimisation of grinding media charging. (Farakka, 31. (CM -SEEC Reduced From 2020: 35.14 kWh/t to
Roorkee, Bhatinda) 33.33 kWh/t in 2021) (Power Saving: 1.81 kWh /t of
Cmt with various initiatives) (Roorkee).
15. Nibs Gate made operational (Farakka)

32. Increased use of WFA to the level of 10 % when DFA 51. In house Grinding Aid made grinding aid from
is not available with the use of Local made Furnace molecules introduced.
(Roorkee)
(b) The capital investment on energy conservation equipment
33. Lowest Sp. electrical energy consumed i.e 31.84
1. Power saving in Bag filter fans by installing VFD
kWh/t.cem in PPC grinding. (Bhatinda) In 2020, SEEC
was 35.95 kWh/t.cem; 4.11 u/t saved. (Bhatinda) 2. Three Nos High efficiency CCW Pumps for STG3-
TPP
34. Maximise fly ash consumption 33.88 %, including
3. STG3 Vacuum Pump in place of SJAE
6.62 % wet ash i.e reduced clinker factor (Bhatinda)
4. Kiln-2 Outlet Seal replacement.
35. Maintained 45 micron residue less than 10.06 % by
5. Coal ash analyser
periodic replacement of sepa. Classifier top seal.
(Bhatinda) 6. MPRO relays
7. Upgraded radar sensors.
36. Dry fly ash flow controlled for mill feeding, by fine
tuning of PID controller. (Bhatinda) 8. WHRS erection work under progress.
9. New AFR feeding system, with increased capacity
37.
31.5 MVA transformer with new switchyard
commissioned. (Dadri) 10. Burner upgradation
11. Replacement of Driers for Compressed Air
38. Natural Gas based Hot Air Generator (Dadri)
12. Replacement of Main Baghouse bags (3000 bags)
39. Stopped gypsum/Wet Ash Handling group Bag
13. Replacement of internal parts for Gaj Line-2 cooler
filters during high moisture thus saving approx.34
ESP
kw/Hr. (Nalagarh)
14. Ambuja Kiln PLC upgradation
40. Stopped gypsum crusher (45 KW) and gypsum &
15. Ambujanagar: polycom separators fans
wet ash feeding being done through bypass chute.
(Nalagarh) 16. high efficiency blade of fan in Air Cooled Condenser
in power
41. Installation of VVF in product elevator top bag filter
thus saving 7.5 kw/Hr and consistent reliable product (c) Steps taken for alternate source of utililsation:
sampling. (Nalagarh)
1. Use 26% solar power of total power. (Dadri)
42. Installation of VVF in Packing plant bag filters (04 2. Ever lowest auxiliary power consumption from
Nos.) thus saving approx.65kw/Hr. WHRS (%) 4.97 (Rabriyawas)
3. Ever highest generation from WHRS (surpassed by
43. Replacement of under loaded conveyor belt motors
24% w.r.t. pr. best) (Rabri)
(04 Nos.) in both packers’ discharge (from 11 kw to
5.5 kw). (Nalagarh) 4. WHRS installation (SULI, RAURI) (power generation
capacity 21 MW)
44. Reduction in false air across Mill and Bag house
5. Upgradation of AFR feeding system (6%TSR) (Rauri)
circuit from23.3%to 14.7%. (Nalagarh)
6. Replacement of 50% traditional HSD usage with
45. Removal of all the three S-Rollers releasing a saving PYROLITIC oil at the time of every cold (Suli, Rauri)
potential of 0.5 kWh/T in Mill fan SEEC. (Nalagarh)
46. Raw mix & Fuel Mix Optimisation to improve the

B) Technology Absorption
burnability which resulted in reduction in Thermal (a) Efforts made towards Technology Absorption:
Energy Consumption (Ambujanagar) 1. Digitalisation of walk by inspection to improve quality
of inspection across all Plants.
47. Raw Mill Fan inlet modification to improve the fan
efficiency (power consumption reduction) (Gaj L2) 2. Technical Information system (TIS) Installation at
plant locations along with PACT dashboard for close
48. 1.8 kWh/MT SEEC(G) reduction in 2021 over 2020 monitoring of process data
(~13% reduction) (Surat)
3. Close Monitoring & Rescheduling of colony and
49. Conversion of Twin Drive Cement Mill Motor into plant lighting as per requirement (Power Saving: 0.13
Single Drive thereby reducing approx. 100 kW (Surat) kWh/t of Cmt) (Farakka)
50. Replacement of lower capacity OPC Solid Flow

Feeder by Higher one thereby increasing Mill output
and hence reduction in SEEC(G)(Surat)

(b) Information regarding Technology Imported during last 3 year:

Details of Technology imported Year Of Import Status
Kiln-2 Burner replacement (Low Primary air) at BT 2021 Partially Observed.
Commissioned in Nov’21.
Low Efficiency CWP pump replaced with high efficacy Pump 2021 Fully Absorbed.
Bhatapara: Line -2 Cooler Up graded with IKN cooler- Investment-1400 Lac 2020 Fully Absorbed.
Replacement of conventional 3 Low effc blowers with Hybrid screw blowers. 2020 Fully Absorbed.
Commissioning of SNCR to control Nox emission of Kilns. 2019 Fully Absorbed.
Procurement of Coal Ash Analyser at BT 2021 Fully Absorbed.
Optimise the capacitor HT capacitor ON timings & restored the LT faulty capacitors. 2020 Fully Absorbed.
Lighting circuit modification with introduction of lighting circuit breaker additional with PLC 2021 Partial
control
MPRO motor protection relay installed for motor above rating of 37 KW in plant operation 2019 Partial
Logic bypass record to be maintained and approval for the requirement in plant operation 2021 Fully Absorbed.
Siemens belt weigher installation and commissioning done for analysing weight of the total 2021 Fully Absorbed.
clinker received through clinker rake
TIS system implemented for operational control feedback established 2021 Fully Absorbed.
RADAR level sensors. 2021 Fully Absorbed.
NewTersus control electronics are used for weighing tasks in continuous process 2021 Fully Absorbed.
sequences.
Packer spoute weight accuracy and auto correction feature established by introducing new 2021 Fully Absorbed.
SEWAREX controller by OEM
Idea was to direct unloading from all 4 pipelines if we are having sufficient Fly ash bulkers to 2021 Partial
run both the Mill to save specific power consumption by 0.1 unit
Digitalisation of walk by inspection to improve quality of inspection at Plant 2020 Fully Absorbed.
Technical Information system (TIS) Installation at plant with PACT dashboard for close 2021 Fully Absorbed.
monitoring of process data.
EMS Server and Power Plant DCS Server Connectivity with TIS for Energy Management 2021 In Progress
Installed Wet Fly Ash Dryer to ensure availability of Fly Ash during lean seasons. 2019 Fully Absorbed
Mill Master commissioned for better mill performance. 2021 Completed
Natural Gas based Hot Air Generator 2021 Completed
Process optimisation only. 2021 Complete
Schenck make SFF (180 TPH) 2021 Installed
(c)
Benefits derived (Cost reduction, product C) Expenditure for R/D
improvement/improvement, Import substitution): ` in crore
1. Improvement in clinker factor by increasing clinker Current Year Previous Year
reactivity and intern increasing the Flyash usage. 31.12.2021 31.12.2020
Capital Expenditure 0.00 0.00
2.
AFR used brings down the requirement of Recurring Expenditure 0.40 0.53
conventional fuels. Total Expenditure 0.40 0.53
Total R & D expenditure - -
3. Solar power saves fuels used and impacts heavily on as a percentage of total
electricity cost. turnover
4. Energy saving through initiative like VFD installation,

LED lights and optimisation.
D) Foreign Exchange Earnings And Outgo
` in crore
Current Year Previous Year
31.12.2021 31.12.2020
Used 1,056.60 2,843.36
Earned 4.47 2.53

Annexure VI to Directors’ Report
Details pertaining to remuneration as required under Section 197(12) read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014
(A) Ratio of the remuneration of each Director/KMP to the median remuneration of all the employees of the Company for
the financial year:
Ratio of remuneration
% increase in
of each Director to
Name of Director and KMP Remuneration remuneration in the
median remuneration
Financial Year 2021
of employees(a)
Non Executive Directors
Mr. N.S. Sekhsaria 54,20,000 7.96 5.24%
Mr. Jan Jenisch 22,50,000 3.31 4.55%
Mr. Christof Hassig 23,00,000 3.38 15.91%
Mr. Martin Kriegner - - -
Ms. Then Hwee Tan 40,20,000 5.91 22.33%
Mr. Mahendra Kumar Sharma 38,39,589 5.64 49.38%
Mr. Ranjit Shahani 24,50,000 3.60 46.91%
Mr. Praveen Kumar Molri 23,00,000 3.38 46.46%
Mr. Ramanathan Muthu 22,50,000 3.31 N.A.
Independent Directors
Mr. Nasser Munjee 44,70,000 6.57 14.25%
Mr. Rajendra Chitale 54,60,000 8.88 5.75%
Mr. Shailesh Haribhakti 43,00,000 7.32 11.37%
Dr. Omkar Goswami 44,50,000 6.87 7.82%
Ms. Shikha Sharma 41,30,000 6.90 -6.77%
Executive Director
Mr. Neeraj Akhoury, MD & CEO (w.e.f February 21, 2020) 11,54,40,137 169.59 87.24%
Other KMPs
Ms. Rajani Kesari, CFO (w.e.f September 1, 2020) 6,14,49,034 90.27 419.64%
Mr. Rajiv Gandhi, Company Secretary 1,41,20,785 20.74 14.23%
(a) The ratio of remuneration to the median remuneration is based on the remuneration paid during the period January 1,
2021 to December 31, 2021.
(b) The remuneration to Directors includes sitting fees paid for attending Board and Committee Meeting and commission
payable to them for the year ended December 31, 2021.
(c) Remuneration to MD & CEO and KMPs includes salary, performance bonus, allowances & other benefits on payment
basis and applicable perquisites and contribution to approved Pension Fund but except for the accrued Gratuity Fund.
(d) There were changes in the Director and KMP including the MD & CEO and CFO during the previous year 2020 and
hence the figures are not comparable.
(B) Median remuneration of all the employees of the Company for the Financial Year 2021 6,80,688
(C) Percentage increase in the median remuneration of employees in the Financial Year 6.07%
(D) Number of permanent employees on the rolls of the Company as on December 31, 2021 4,418
(E) Average percentile increase in the salaries of employees other than the Managerial Personnel and its comparison
with the percentile increase in the Managerial Remuneration and justification thereof:
(i) Average percentile increase over the previous year in the salaries of employees other than the Managerial Personnel
(i.e. MD & CEO) is 6.21%.
(ii) Average percentile of the remuneration of the Managerial Personnel (i.e MD & CEO) increased by 23.37%.
(iii) Average increase in the remuneration of the employees other than the Managerial Personnel is in line with the industry
practice and is within the normal range.
(F) The remuneration is as per the remuneration policy of the company.

Annexure VII to Directors’ Report

Form AOC-1
Statement containing salient features of the financial statement of subsidiaries and joint ventures. pursuant to first proviso to
sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014.
A) Subsidiary Company
(` in crore)
Profit / (loss)
after taxation
Profit
Provision but before
Date of Financial year Reporting Share Reserves Total Total Total / (loss) Proposed % of
Sr Name Turnover for share of profit
acquisition ending Currency capital and surplus assets liabilities Invetments before Dividend Shareholding
taxation in associates
taxataion
and minority
interest
1 M.G.T. 20/10/2007 December 31, ` 0.75 (0.77) - 0.02 - - (0.01) - (0.01) - 100.00%
Cements 2021
Private December 31, ` 0.75 (0.76) - 0.01 - - - - - - 100.00%
Limited 2020
2 Chemical 20/10/2007 December 31, ` 5.14 (5.38) 1.65 1.89 - - (0.24) - (0.24) - 100.00%
Limes 2021
Mundwa December 31, ` 5.14 (5.15) 1.68 1.69 - - (0.20) - (0.20) - 100.00%
Private 2020
Limited
3 Dirk India 02-09-2011 December 31, ` 2.08 (33.01) 19.56 50.49 - 9.62 2.66 - 2.66 - 100.00%
Private 2021
Limited December 31, ` 2.08 (35.76) 16.67 50.35 - 3.45 (1.03) - (1.03) - 100.00%
2020
4 Dang Cement 06-05-2011 December 31, Nepalese 13.84 (8.00) 5.92 0.08 - - (0.83) - (0.83) - 91.63%
Industries 2021 Rupee
Private December 31, Nepalese 13.84 (7.18) 6.68 0.02 - (0.92) - (0.92) - 91.63%
Limited (Refer 2020 Rupee
Note 1)
5 ACC Limited 12-08-2016 December 31, ` 187.99 14,120.84 21,038.84 6,726.66 149.55 15,814.40 2,506.38 643.28 1,863.10 1,089.17 50.05%
(Refer Note 2) 2021
December 31, ` 187.99 12,511.14 18,200.23 5,497.86 129.27 13,486.83 1,708.85 278.59 1,430.26 262.90 50.05%
2020
6 Oneindia 13/08/2015 December 31, ` 2.50 4.17 6.79 0.12 - - 0.13 - 0.13 - 50.00%
BSC Private 2021
Limited (Refer December 31, ` 2.50 4.04 9.50 2.96 - 16.35 0.14 0.79 (0.65) - 50.00%
Note 3 & 4) 2020
B) Joint Venture company

(` in crore)
Shares of Joint Ventures held by Net worth
Reason why Profit / (loss)
the company on the year end Description attributable to
the associate
Date of Financial year Amount of of how there shareholding
Sr Name / joint Not
acquisition ending Reporting investment is significant as per latest For the Considered in
No. venture is not Considered in
Currency in Joint influence audited Year Consolidation
consolidated Consolidation
Venture Balance Sheet
1 Counto 01-08-2011 December 31, 76,44,045 ` 14.86 58.95 17.41 8.71 8.70
Microfine 2021 Refer Not
Products Private December 31, 76,44,045 ` 14.86 Note 4 applicable 47.03 9.75 4.87 4.87
Limited 2020
Notes :
1) Dang Cement Industries Private Limited is a subsidiary situated in Nepal. Exchange Rate considered is 1 ` = 1.6 Nepalese Rupee.
2) Figures of ACC Limited are as per their consolidated financial statements which also includes its share in Joint venture, Oneindia BSC Private
Limited.
3) Figures of Oneindia BSC Private Limited (indirect subsidiary of the Company) is proportionate to the shareholding of the Company as the same
is joint venture of its subsidiary ACC Limited.
4) Significant influence is demonstrated by holding 20% or more of the voting power of the investee.
For and on behalf of the Board of Directors
Rajani Kesari N.S. Sekhsaria Rajendra P. Chitale

Chief Financial Officer Chairman & Principal Founder Chairman - Audit Committee
DIN - 00276351 DIN - 00015986
Rajiv Gandhi Martin Kriegner Neeraj Akhoury

Company Secretary Director Managing Director & Chief Executive Officer
DIN - 00077715 DIN - 07419090
Mumbai : February 17, 2022

Report on Corporate Governance
A Report on compliance with the Corporate Governance stakeholders. In line with these principles, the Company
provisions as prescribed under the Securities and has formed three tiers of Corporate Governance structure,
Exchange Board of India (Listing Obligations and Disclosure viz.:
Requirements) Regulations, 2015, as amended from time to
time (“Listing Regulations”) for the Financial Year 2021 is given (i) The Board of Directors: - The primary role of the
herein below: Board is to protect the interest and enhance value
for all the stakeholders. It conducts overall strategic
supervision and control by setting the goals and
1. Corporate Governance targets, policies, governance standards, reporting
1.1 Ambuja’s Philosophy on Corporate Governance: mechanism and accountability and decision making
At Ambuja Cements, Corporate Governance has been process to be followed.
an integral part of the way we have been doing our
business since inception. We believe that good Corporate (ii) Committees
of Directors:- The Committees of
Governance emerges from the application of the best and the Board such as Audit Committee, Compliance
sound management practices and compliance with the Committee, Nomination and Remuneration
laws coupled with adherence to the highest standards of Committee, CSR & Sustainability Committee (w.e.f
transparency and business ethics. These main drivers, January 1, 2022, CSR & Sustainability Committee
together with the Company’s ongoing contributions to is bifurcated into CSR Committee and separate
the local communities through meaningful “Corporate Sustainability Committee) and Risk Management
Social Responsibility” initiatives will play a pivotal role in Committee etc. are focused on financial reporting,
fulfilling our renewed vision to be the most sustainable audit and internal controls, legal & compliance
and competitive company in our industry and our mission issues, appointment and remuneration of Directors
to create value for all our stakeholders. and Senior Management Employees, implementation
and monitoring of CSR and Sustainability activities
The Company places great emphasis on values such as and the risk management framework.
empowerment and integrity of its employees, safety of
the employees and communities surrounding our plants,
(iii) Executive Management:– The entire business
transparency in decision making process, fair and ethical including the support functions are managed with
dealings with all, pollution free clean environment and last clearly demarcated responsibilities and authorities
but not the least, accountability to all the stakeholders. at different levels.
These practices being followed since inception have
contributed to the Company’s sustained growth. The (a)
Managing Director and CEO:– The Managing
Company also believes that its operations should ensure Director and CEO is responsible for achieving
conservation and development of economic, social the Company’s vision and mission, business
and environmental capital and that the precious natural strategies, project execution, mergers and
resources are utilised in a manner that contributes to acquisition, significant policy decisions and all
the “Triple Bottom Line”. The relentless efforts made on the critical issues having significant business
these fronts have resulted in the Company becoming 8 and financial implications. He is also responsible
times water positive and 3.5 times plastic negative among for the overall performance and growth of the
various other sustainability initiatives. The Company Company and ensures implementation of the
has been recognised for leadership in corporate decisions of the Board of Directors and its
sustainability by global environmental non-profit C DP, various Committees. He reports to the Board
securing a place on its prestigious ‘A List’ for tackling of Directors.
water security. Ambuja Cements is one of a small number
of high-performing companies out of nearly 12,000 (b) E
xecutive Commit tee:- The E xecutive
that were scored. Through significant demonstrable Committee is headed by the Managing
actions to protect water resources, the Company is Director and CEO. The CFO and the Heads
leading on corporate environmental ambition, action and of Manufacturing, Marketing, Logistics,
transparency worldwide. Sustainability being embedded Procurement and HR are its other members.
in Company’s core strategy, Ambuja Cements, in 2021, This committee is a brain storming committee,
was once again ranked 5th globally by the internationally which meets at regular intervals, wherein all
renowned Dow Jones Sustainability Index (DJSI) in the important business issues are discussed
construction materials category. and decisions are taken. This Committee
reviews and monitors monthly performances,
1.2 The Governance Structure: addresses challenges faced by the business,
draws strategies and policies and keep the

Ambuja’s governance structure is based on the principles
Board informed about important developments
of freedom to the executive management within a given
having bearing on the operational and financial
framework to ensure that the powers vested in the
performance of the Company. Additionally, the
executive management are exercised with due care and
Committee also reviews Health and Safety,
responsibility so as to meet the expectation of all the

Environment and Sustainability initiatives of the diverse Board. The abstract of the said policy forms part
Company. of the Directors’ Report.
1.3 The Compliance Framework: The Directors are appointed or re-appointed with the
The Company has a robust and effective framework approval of the shareholders and shall remain in office
for monitoring compliances with applicable laws within in accordance with the provisions of the law and the
the organisation and to provide updates to senior retirement policy laid down by the Board from time-to-
management and the Board on a periodic basis. The time. The current retirement age for the Directors is 75
Audit, Risk and Compliance Committee of Directors and years. The Independent Directors are appointed for a fixed
the Board periodically review the status of compliances term not exceeding five years. The Managing Director is
with applicable laws and provide valuable guidance to the also appointed for a term of five years and is not liable
management team wherever necessary. to retire by rotation. Non-executive Directors (except
Independent Directors) are liable to retire by rotation
and are eligible for re-appointment, unless otherwise
2. Board of Directors specifically provided under the Articles of Association or
The Board of Directors is entrusted with the ultimate under any statute.
superintendence, control and responsibility of the affairs
of the Company. As required under Regulation 46(2)(b) of the Listing
Regulations, the Company has issued formal letters
2.1. Composition and Board Diversity: of appointment to the Independent Directors. The
terms and conditions of their appointment are posted
The Company has a very balanced and diverse Board of
on the Company’s website and can be accessed at
Directors. The Composition of the Board primarily takes
www.ambujacement.com.
care of the business needs and stakeholders’ interest.
The Non-Executive Directors including Independent
2.3. Other Directorships etc.:
Directors on the Board are well qualified, experienced,
competent and highly renowned persons from the fields None of the Directors is a Director in more than 10 Public
of manufacturing, finance & taxation, economics, law, Limited Companies or acts as an Independent Director
governance etc. They take active part in the Board and in more than 7 Listed Companies. The Managing Director
Committee Meetings by providing valuable guidance and CEO does not serve as Independent Director on
and expert advice to the Board and the Management on any listed company. Further, none of the Directors acts
various aspects of business, policy direction, governance, as a member of more than 10 committees or acts as a
compliance etc. and play critical role on strategic issues, chairman of more than 5 committees across all Public
which enhances the transparency and add value in the Limited Companies in which he/she is a Director.
decision making process of the Board of Directors. The
Company has also devised a policy on board diversity. Independent Directors:
Independent Directors are non-executive directors
Section 149(1) of the Companies Act, 2013 (the Act), as defined under Regulation 16(1)(b) of the Listing
requires certain companies to have at least one woman Regulations read with Section 149(6) of the Act along
Independent Director. ACL has one Non-Executive, with rules framed thereunder. Further in terms of the
Independent woman Director and one Non-Executive, Regulation 25(8), they have confirmed that they are not
Non-Independent woman Director as part of its Board. aware of any circumstances or situation which exists or
may be reasonably anticipated that could impair or impact
As at the end of corporate financial year 2021, the total their ability to discharge their duties. The Independent
Board strength comprises of the following: Directors provide an annual confirmation that they meet
the criteria of independence. Based on the declarations
Category No. of Directors
received from the Independent Directors, the Board of
Non-Executive, Independent Directors 5 Directors has confirmed that they meet the criteria of
including Independent Woman Director Independence as defined under Section 149 of the Act
Other Non-Executive and Non-Independent 9 and Regulation 16(1)(b) of Listing Regulations and that
Directors they are independent of the management. They have
Executive Director (MD & CEO) 1 also confirmed that they have enrolled themselves in the
Total Strength 15 Independent Directors Databank maintained with the
Indian Institute of Corporate Affairs.
Note: None of the Directors have any inter-se relationship
among themselves and with any employees of the Section 149(4) of the Companies Act, 2013, requires
Company. companies to have at least one-third of the total number
of Directors as ‘Independent Director’, and ACL currently
2.2. Selection, Appointment and Tenure of Director: complies with this requirement with 33% Independent
The Nomination and Remuneration Committee have Directors on the Board.
approved a Policy for the Selection, Appointment and
Remuneration of Directors. In line with the said Policy, The Board consists of 5 Independent Directors i.e.
the Committee facilitate the Board in identification and Mr. Nasser Munjee, Mr. Rajendra Chitale, Mr. Shailesh
selection of the Directors who shall be of high integrity Haribhakti, Dr. Omkar Goswami and Ms. Shikha Sharma
with relevant expertise and experience so as to have well (Women Independent Director).

2.4. Certification from Company Secretary in Practice: (ii)
Mr. Jan Jenisch (DIN:07957196) (Vice-Chairman,
Mr. Surendra Kanstiya, Company Secretary in whole- Non-Executive, Non- Independent Promoter Director
time practice has issued a certificate as required under representing Holcim Ltd., (erstwhile LafargeHolcim
the Listing Regulations, confirming that none of the Ltd.)
Directors on the Board of the Company are debarred Mr. Jan Jenisch is Chief Executive Officer of Holcim.
or disqualified from being appointed or continuing as Since joining in 2017, Jan has led Holcim to a new level of
director of company by the SEBI/Ministry of Corporate financial performance and growth, with record profitability
Affairs or any such statutory authority. levels, revenues of over CHF 23 billion in 2020, 70,000
people worldwide and industry-leading ESG ratings.
2.5. Directors’ Profile
The brief profile of each Director as at the year-end is
Building on his track record of superior financial
given below: performance, Mr. Jan is now leading Holcim’s next era of
transformational growth to become the global leader in
(i) Mr. N. S. Sekhsaria (DIN: 00276351) innovative and sustainable building solutions. Diversifying
(Non-Executive Chairman, Non-Independent) Holcim’s portfolio, he is expanding the Company’s
Solutions & Products Business, with transformational
Mr. N. S. Sekhsaria is the Principal Founder of the
acquisitions like Firestone Building Products and Malarkey
Company. Mr. Sekhsaria is a doyen of the Indian Cement
Roofing Products, becoming a global leader in roofing
Industry and one of the most respected business
systems. Putting sustainability at the core of Holcim’s
personalities in India. He introduced new standards in
strategy, Mr. Jan oversaw the launch of the industry’s
manufacturing, management, marketing efficiency and
first global ranges of green concrete. Prior to Holcim,
corporate so-cial responsibility to an industry he helped
Mr. Jan served as Chief Executive Officer of Sika AG, a
transform.
global leader in innovative systems and products for the
building and automotive sectors. Under his leadership,
A first generation industrialist, Mr. Sekhsaria obtained
Sika expanded its reach in high value markets, setting
his Bachelor’s in Chemical Engineering with honours and
new standards of performance in sales and profitability.
distinction from the University of Bombay. As the Principal
Founder-Promoter of Ambuja Cements, he was the Chief
In 2021, Mr. Jan was elected to the Board of Directors of
Executive & Managing Director of the Company from its
Holcim, in addition to his role as CEO and membership
inception in April 1983, until January 2006. Mr. Sekhsaria
of the Board of the Holcim Foundation for Sustainable
relin-quished the post of Managing Director and was
Construction. He is the President of the Global Cement
appointed as the Non-Executive Vice Chairman when
and Concrete Association as well as a Member of the
management control of the Company was transferred
Executive Committee of the World Business Council
to erstwhile LafargeHolcim Ltd. In September 2009, he
for Sustainable Development (WBCSD), the European
was appointed as the Non-Executive Chairman after Mr.
Round Table for Industry (ERT) and the board of the
Suresh Neotia relinquished the post of Chairman.
Swiss-Japanese Chamber of Commerce (SJCC). In
addition, he serves as a Member of the Board of Directors
Mr. Sekhsaria built Ambuja Cements into the most
at Glas Troesch SA.
efficient and profitable cement company in India. He
created and developed a result-oriented management
Born in Germany in 1966, Mr. Jan studied in Switzerland
team, and an extraordinary business model for the Com-
and the US, and graduated from the University of Fribourg,
pany that centred on continually fine-tuning efficiencies
Switzerland, with a Master of Business Administration.
and upgrading facilities to meet increased competition
In 2021 he received a Dr. H.C. from the University of
and growing challenges in the Cement Industry.
Fribourg for his accomplishments as CEO of two large
listed companies and for his transformation of Holcim into
Mr. Sekhsaria redefined industry practices by turning
a sustainable company.
cement from a com-modity into a brand, bringing cement
plants closer to cement markets and linking plants to
He joined the Board in October, 2017 and is the Vice
lucrative coastal markets by setting up ports and a fleet
Chairman of the Board.
of bulk cement ships for the first time in India. During
his ten-ure, the Company grew from a 0.7 million tonne
(iii) Mr. Nasser Munjee (DIN:00010180)
capacity to 15 million tonnes, from a market capitalisation
(Non-Executive, Independent Director)
of `18 crore to `14,000 crore, and from a single location
to a pan-India Company which has set new benchmarks Mr. Nasser Munjee holds a Master’s degree in economics
for the cement industry. These achievements, from a from the London School of Economics (LSE), U.K. His
first generation industrialist, speak volumes about Mr. journey in creating financial institu-tions began with
Sekhsaria’s vision, business acumen and leadership HDFC, which he joined at its inception in February 1978.
qualities. In March 1993, he was inducted on the Board of HDFC
as Executive Director until 1997. He is currently on the
Mr. Sekhsaria is the Chairman of the CSR & Sustainability Board of companies such as Cummins India, Indian
Committee and a Member of the Nomination & Hotels Company Ltd., Tata Motor Finance, Jaguar Land
Remuneration Committee. Rover.

In 1997, Mr. Munjee played a pivotal role in setting up IDFC a Cost Accountant, Certified Internal Auditor, Financial
and was its CEO in its formative years. Mr. Munjee has Planner & Fraud Examiner with a career span over four
a deep interest for rural de-velopment, housing finance, decades.
urban issues, specially the development of modern cities
and humanitarian causes. He is a global thought leader in the area of Environment,
Social & Governance, and has helped pioneer impactful
He was, until recently, also the Chairman of DCB Bank concepts like IR & Innovating path to Net Zero. He is also
Limited and of two other Aga Khan institutions in India. He an author of 2 books namely “The Digital Professional” &
was the President of the Bombay Chamber of Commerce “Audit Renaissance”.
and Industry the city’s oldest Chamber of Commerce and
has served on numerous Government Task Forces on He has been involved with various philanthropic initiatives
Housing and Urban Development. He has been awarded as well. He is an advisory member of the steering
as the “Best Non-Executive Independent Director 2009 committee on India Covid Response Fund (Give India)
by Asian Centre for Corporate Governance (ACCG). and also part of the advisory board of Global Parli,
WOTR. Some of his current innovations are Digital
He joined the Board in August, 2001. He is the Chairman Board Governance through the GOvEVA platform, Social
of the Nomination & Remuneration Committee and the Impact Investing, Data-led Lending, Diligence, Scoring
Compliance Committee and a member of the Audit and Rating, Digital Treasury and Foreign Exchange
Committee, CSR & Sustainability Committee and Risk Management. He has been conferred with the Global
Management Committee. Competent Boards Designation (GCB.D) by Competent
Boards Inc.
(iv) Mr. Rajendra Chitale (DIN:00015986)
(Non-Executive, Independent Director) Mr. Haribhakti joined the Board in May, 2006. He is the
Mr. Rajendra Chitale, an eminent Chartered Accountant member of the Nomination and Remuneration Committee,
and a Law Graduate, is the Managing Partner of M/s. Risk Management Committee and the Compliance
Chitale & Co, a leading boutique structuring and advisory Committee.
firm and of M/s M. P. Chitale & Co., one of the leading
accounting and consulting firm. He has served as a (vi) Dr. Omkar Goswami (DIN: 00004258)
member of the Insurance Advisory Committee of the (Non-Executive, Independent Director)
Insurance and Regulatory Development Authority of India, Dr. Omkar Goswami, a professional economist, did
the Company Law Advisory Committee, Government of his Masters in Economics from the Delhi School of
India, the Takeover Panel of the Securities & Exchange Economics and his D. Phil (Ph.D.) from Oxford University.
Board of India, the Financial Sector Legislative Reforms He taught and researched economics for 20 years at
Commission (FSLRC) Working Group on Insurance, various reputed universities in India and abroad. During
Pensions, Small Savings-Government of India, the a career spanning over three and a half decades, he
Investor Education and Protection Fund Committee, has been associated as a member or advisor to several
Government of India and the Maharashtra Board Government committees and international organisations
for Restructuring of State Enterprises, Government like the World Bank, the OECD, the IMF and the ADB,
of Maharashtra. He has served on the Board of Life and on the Boards of several reputable listed companies.
Insurance Corporation of India, Unit Trust of India, Small He also served as the Editor of Business India, one of
Industries Development Bank of India, National Stock India’s prestigious business magazines and as the Chief
Exchange of India Ltd. and Clearing Corporation of India Economist of the Confederation of Indian Industry. Dr.
Limited, Asset Reconstruction Company (India) Limited, Goswami is the Founder and Executive Chairman of
SBI Capital Markets Limited. He is on the Board of several CERG Advisory Pvt. Ltd., which is engaged in corporate
large corporates. advisory and consulting services for companies in India
and abroad.
He is a go to Advisor to international and Indian corporations
for advice on Business structuring, tax and legal advice Dr. Goswami joined the Board in July, 2006. He is a member
on foreign investments, mergers and acquisitions, private of the Audit Committee, the Compliance Committee and
equity fund formation and investments, financial market the Stakeholders Relationship Committee.
laws, and financial services regulations.
(vii) Ms. Shikha Sharma (DIN: 00043265)
Mr. Chitale joined the Board in July, 2002. He is the (Non-Executive, Independent Director)
Chairman of the Audit Committee and Risk Management Ms. Shikha Sharma is a B.A. (Hons.) in Economics, PGD
Committee and the member of the Stakeholders in Software Technology and MBA from IIM Ahmedabad.
Relationship Committee and CSR & Sustainability She was the MD & CEO of Axis Bank Ltd. from 2009 to
Committee. 2018. She began her career with ICICI Bank in 1980. At
ICICI, she was instrumental in setting up ICICI Securities
(v) Mr. Shailesh Haribhakti (DIN:00007347) besides setting up various group business for ICICI
(Non-Executive, Independent Director) including investment banking and retail finance. Before
Mr. Shailesh Haribhakti, a Chartered Accountant is the moving to Axis Bank, she was the MD & CEO of ICICI
Chairman of Shailesh Haribhakti & Associates. He is also Prudential Life Insurance Co. Ltd. She was a Member

of RBI’s Technical Advisory Committee and chaired (x) Ms. Then Hwee Tan (DIN: 08354724) (Non-Executive,
CII National Committee on Banking. She has featured Non-Independent Promoter Director representing
in Fortune’s Top 50 most powerful Women in business Holcim Ltd.)
outside US and has several awards & recognition to her Ms. Then Hwee Tan is Singapore national and an MBA
credit. from Wichita State University, Kansas, USA.
Ms. Sharma joined the Board in April, 2019. She is a Ms. Tan has attended Executive Development Programs
Member of the Audit Committee and Nomination and at the Institute of Management Development. She is
Remuneration Committee. currently the Group Head of Learning & Development,
at Holcim. At Holcim, she is a member of the HR
(viii) Mr. Christof Hassig (DIN: 01680305) (Non-Executive, leadership team responsible for executive learning and
Non-Independent Promoter Director representing talent development. She has over twenty years of HR
Holcim Ltd.) management experience in an international business
Mr. Christof Hassig is a Swiss national and a professional environment across Asia Pacific including leadership
banker with Masters in Banking and the Advanced development, talent & succession management,
Management Program from Harvard Business School. employee engagement, organisational development
and compensation & benefits management. Apart from
He is currently acting as board member for the Holcim Holcim, she has worked with reputed companies such as
Group in Bangladesh and India. Prior to this, he served Sika, Asia Pacific, Lucent Technologies, USA and Philips
as the Head of the Corporate Strategy and Mergers Mobile Display Systems, Hong Kong.
and Acquisitions function at Holcim Ltd. Mr. Hassig has
worked for over twenty five years at UBS in different Ms. Tan joined the Board in February, 2019. She is a
functions including global relationship manager and member on the Compliance Committee.
investment banker. He has also worked in corporate
finance and treasury functions for over fifteen years. In (xi)
Mr. Mahendra Kumar Sharma (DIN: 00327684)
2013, he took over the additional responsibility as Head (Non-Executive, Non-Indpendent Promoter Director
of Mergers and Acquisitions. representing Holcim Ltd.)
Mr. Mahendra Kumar Sharma is an Arts & Law Graduate
Mr. Hassig joined the Board in December, 2015. from University of Lucknow and a Post Graduate Diploma
holder in Personnel Management and Labour Laws. After
(ix) Mr. Martin Kriegner (DIN: 00077715) (Non-Executive, a five year stint with Delhi Cloth & General Mills Co. Ltd.
Non-Independent Promoter Director representing he joined Hindustan Unilever Ltd. in 1974 as a Legal
Holcim Ltd.) Manager. He retired in 2007 as its Vice Chairman with
Mr. Martin Kriegner is an Austrian national. He is a the responsibility of HR, Legal & Secretarial, Corporate
graduate of Vienna University with a Doctorate in Law and Affairs, Real Estate etc.
he obtained an MBA from the University of Economics in
Vienna. He has served as member of the Corporate Law
Committee to comprehensively redraft the Companies
Mr. Kriegner was appointed as Head of Asia Pacific and Act and as a member of Naresh Chandra Committee on
member of the Group Executive Committee of Holcim in Corporate Governance. He is on the Board of several
August 2016. Since 2019 he has also been responsible for companies.
the Holcim Group Cement Excellence team.
Mr. Sharma joined the Board in April, 2019. He is a
Mr. Kriegner joined the Group in 1990 and became the CEO member of the CSR & Sustainability Committee and the
of Lafarge Perlmooser AG, Austria in 1998. He moved to Audit Committee.
India as the CEO of Lafarge’s cement operations in 2002
and later served as Regional President Cement for Asia, (xii) Mr. Ranjit Shahani (DIN: 00103845) (Non-Executive,
based in Kuala Lumpur. In 2012, he was appointed CEO Non-Independent Promoter Director representing
of Lafarge India for the Cement, RMX and Aggregates Holcim Ltd.)
business. In July 2015, he became Area Manager Central Mr. Ranjit Shahani is a Mechanical Engineer from IIT Kanpur
Europe and was appointed Head of India effective March and MBA from Jamnalal Bajaj Institute of Management
1, 2016. Studies. He started his career with Imperial Chemical
Industries (ICI) in India and then served as General
Mr. Kriegner joined the Board in February, 2016. He Manager with ICI, Zeneca in UK overseeing Asia Pacific
is a member on the Audit Committee, Nomination & and Latin America operations for the petrochemicals and
Remuneration Committee and CSR and Sustainability plastics division. He was the CEO of Roche Products
Committee. Ltd. and then Vice Chairman and Managing Director of
Novartis India Ltd. from 2001 to 2018.

He is President Emeritus of The Organisation of Executive Committee of Lafarge India, heading corporate
Pharmaceuticals Producers of India (OPPI) and of the affairs followed by sales. In 2011, he moved to Nigeria as
Swiss Indian Chamber of Commerce India (SICCI). He CEO & Managing Director of Lafarge AshakaCem PLC.
is on Advisory Council of The Harvard School of Public Thereafter, he was appointed as Strategy & Business
Health and past President of the Bombay Chamber of Development Director for the Middle East & Africa at the
Commerce and Industry (BCCI). erstwhile Lafarge headquarters in Paris. He was also
the CEO of Lafarge Surma Cement Limited and country
Mr. Shahani joined the Board in April, 2019. He is the representative of Holcim Bangladesh.
Chairman of the Stakeholder Relationship Committee.
Mr. Akhoury was appointed as the MD & CEO of ACC
(xiii) Mr. Praveen Kumar Molri (DIN:07810173) (Nominee, Ltd. in February 2017. In February 2020, he took over as
Non-Executive, Non-Independent Director) CEO India, Holcim, Managing Director & CEO, Ambuja
Mr. P. K. Molri is a Commerce Graduate and Chartered Cements Limited and Non-Executive Director, ACC
Accountant. He joined LIC of India in July 1985 and has Ltd. He is the Vice Chairman at the National Council for
rich experience of more than 34 years of having worked Cement and Building Materials (NCCBM) constituted
in different senior positions including Senior Divisional by the Ministry of Commerce & Industry, Government
Manager of two Divisions and Chief Risk Officer of the of India. He also serves as Vice President of Cement
Organisation. He recently superannuated from LIC from Manufacturers Association of India.
the post of Executive Director- Investment Operations
wherein he was heading Equity, Debt, Treasury, Pension Mr. Akhoury joined the Board in February, 2020. He is
& Group schemes and ULIP Portfolios. a member of the CSR & Sustainability Committee, Risk
Management Committee, Compliance Committee,
Mr. Molri joined the Board in April, 2019. Stakeholders Relationship Committee and a Permanent
Invitee of Audit Committee and Nomination and
(xiv)
Mr. Ramanathan Muthu (DIN:01607274) (Non- Remuneration Committee.
Executive, Non-Independent Promoter Director
representing Holcim Ltd.) 2.6 Meetings, agenda and proceedings etc. of the Board
Meeting:
Mr. Ramanathan Muthu holds an undergraduate degree in
Industrial Economics from University of Warwick, United (i) Meetings:
Kingdom and is a certified chartered accountant. The Board generally meets 5 times during the year
and the maximum interval between any two meetings
Mr. Muthu is Global Head of Strategy for Holcim since did not exceed 120 days. The Company adheres to the
March 2019. He is also leading the Group’s Investment Secretarial Standards on the Board and Committee
Committee. Meetings as prescribed by the Institute of Company
Secretaries of India. The annual calendar of Meetings is
Mr. Muthu joined the Holcim Ltd in 2005 in the Finance broadly determined before the beginning of the year to
and Controlling function in Zurich, before moving to work enable the Directors to plan their schedule and to ensure
in Region Asia Pacific supporting the region in various their meaningful participation in the meetings. At the
strategic projects and growth investments. He took on Meetings, the Board review, deliberate and approve on
the role of Project Manager for an Energy initiative and matters such as business performance, strategy, Capex,
Manufacturing transformation across India and South CSR & Sustainability, governance and compliance.
East Asia. He also served as the Executive Assistant
to EXCO Member in charge of Asia Pacific working on The Board has complete access to any information within
strategic initiatives across the region before moving back the Company. Agenda papers containing all necessary
to the Group where he took over the role of Head of Group information/documents are made available to the Board/
CEO Office. Committee Members in advance to enable them to
discharge their responsibilities effectively and take
Mr. Muthu joined the Board in December, 2020. informed decisions. The information as mentioned in Part
A of Schedule II of the SEBI Listing Regulations is placed
(xv)
Mr. Neeraj Akhoury (DIN:07419090) (Executive, before the Board at its meeting for its consideration,
Non-Independent, Managing Director and CEO) whenever applicable.
Mr. Akhoury has a degree in Economics and an MBA
from the University of Liverpool. He has also studied one- The Senior Management of the Company make timely
year General Management at XLRI, Jamshedpur. He is an disclosure to Board relating to all material, financial and
alumnus of the Harvard Business School. commercial transactions.
Mr. Neeraj Akhoury brings with him over 3 decades of During the year ended on December 31, 2021, the Board
rich experience in the steel and cement industries. He has of Directors had 6 meetings. These were held on February
worked in leadership roles in India and other emerging 18, 2021, March 26, 2021, April 29, 2021, July 23, 2021,
markets. October 26, 2021 and December 16, 2021. Due to the
COVID-19 pandemic and consequent relaxations granted
He began his career with Tata Steel in 1993 and joined by MCA and SEBI, all Board Meetings were held through
the Holcim Group in 1999. He was a member of the Video Conference.

The names and category of the Directors on the Board, their attendance at Board Meeting held during the year under review
and at the last Annual General Meeting (AGM), name of the other Public Companies in which the Director is a Director and
the number of the Directorship and Committee Chairmanship/Membership held by them in other public limited company
as on December 31, 2021 are given below:-
No. of Attendance No. of Committee

Board at last Director- Positions in India 2
Sr. Name of the
Category Meetings AGM held ships held in Directorship in Public Companies & Category
No. Director
attended on April 9, Indian Public Chairman Member
(FY 2021) 2021 Companies1
1. Mr. N. S. Non-Executive 6 No 4 Nil Nil Non-Executive, Non-Independent:
Sekhsaria, Non-Independent 1. ACC Ltd.
Chairman 2. Everest Industries Ltd.
3. JM Financial Asset Reconstruction Ltd.
4. Ambuja Cements Ltd,
2. Mr. Jan Non-Executive, 5 Yes 2 Nil Nil Non-Executive, Non-Independent:
Jenisch, Non-Independent 1. ACC Limited
Vice-Chairman 2. Ambuja Cements Ltd.
3. Mr. Nasser Independent 6 Yes 6 4 1 Non-Executive, Independent Director in:
Munjee 1. Cummins India Ltd.
2. The Indian Hotels Company Ltd.
3. Tata Motors Finance Ltd.
4. Tata Motors Finance Solutions Ltd.
5. TMF Holdings Ltd.
6. Ambuja Cements Ltd.
4. Mr. Rajendra Independent 6 Yes 6 3 4 Non-Executive, Independent Director in:
Chitale 1. Everest Industries Ltd.
2. Reliance General Insurance Company
Ltd.
3. Reliance Nippon Life Insurance
Company Ltd.
4. JM Financial Asset Management Ltd.
5. DAM Capital Advisors Ltd.
5. Mr. Shailesh Independent 5 Yes 10 4 6 Non-Executive, Independent Director in
Haribhakti Listed Company:-
1. Torrent Pharmaceuticals Ltd.
2. L & T Finance Holdings Ltd.
3. Blue Star Ltd.
4. Future Lifestyle Fashions Ltd.
5. Bajaj Electricals Ltd.
6. ACC Ltd.
7. NSDL E-Governance Infrastructure Ltd.
8. L&T Mutual Fund Trustee Limited
9. Bennett Coleman & Company Ltd.
6. Dr. Omkar Independent 6 Yes 2 Nil 3 Non-Executive, Independent Director in:
Goswami 1. Godrej Consumer Products Ltd.
7. Ms. Shikha Independent 5 Yes 5 Nil 4 Non-Executive, Independent Director in:
Sharma 1. Dr. Reddy’s Laboratories Ltd.
2. Tata Consumer Products Ltd.
3. Tech Mahindra Ltd.
4. Mahindra & Mahindra Ltd.
8. Mr. Christof Non-Executive, 6 Yes 1 Nil Nil Non-Executive, Independent Director in:
Hassig Non-Independent 1. Ambuja Cements Ltd.
9. Mr. Martin Non-Executive, 6 Yes 2 Nil 2 Non-Executive, Non-Independent Director:
Kriegner Non-Independent 1. ACC Limited
10. Ms. Then Hwee Non-Executive, 6 Yes 1 Nil Nil Non-Executive, Non-Independent Director:
Tan Non-Independent 1. Ambuja Cements Ltd.
11. Mr. Mahendra Non-Executive, 5 Yes 4 1 2 Non-Executive, Independent Director in:
Kumar Sharma Non-Independent 1. Asian Paints Ltd.
2. United Spirits Ltd.
3. Atria Convergence Technologies Ltd.
Non-Executive, Non-Independent Director:


No. of Attendance No. of Committee

Board at last Director- Positions in India 2
Sr. Name of the
Category Meetings AGM held ships held in Directorship in Public Companies & Category
No. Director
attended on April 9, Indian Public Chairman Member
(FY 2021) 2021 Companies1
12. Mr. Ranjit Non-Executive, 6 Yes 4 1 2 Non-Executive, Independent Director in:
Shahani Non-Independent 1. Hikal Ltd.
2. J. B. Chemicals & Pharmaceuticals Ltd.
3. Wellness Forever Medicare Ltd.
Non-Executive, Non-Independent Director:

13. Mr. Praveen Non-Executive, 6 Yes 1 Nil Nil Non-Executive, Non-Independent Director:
Kumar Molri Non-Independent 1. Ambuja Cements Ltd.
14. Mr. Non-Executive, 5 Yes 1 Nil Nil Non-Executive, Non-Independent Director:
Ramanathan Non-Independent 1. Ambuja Cements Ltd.
Muthu
15. Mr. Neeraj Managing Director 6 Yes 3 Nil 1 Non-Executive, Non- Independent Director
Akhoury and CEO in:
1. ACC Ltd.
2. Holcim Services (South Asia Ltd.)
Managing Director & CEO

1 Includes Indian Public Companies including Ambuja Cements Limited but excluding Directorships in Private Limited Companies, Foreign
Companies and Section 8 Companies.
2 Includes only Audit Committee and Stakeholders’ Relationship Committee of Public Limited companies (whether listed or not) including
Ambuja Cements Ltd.
(ii) Separate Meeting of Independent Directors: (iv) Invitees and Proceedings:

The role of Independent Directors is to review the Apart from the Board members, the CFO and the Company
performance of the Non-Independent Directors Secretary attend all the Board Meetings. Other senior
(including the Chairman) and the entire Board and also management executives are invited as and whenever
to assess the quality, content and timeliness of the flow necessary. The MD & CEO, the CFO and other senior
of information between the Management and the Board executives make presentations on quarterly and annual
and its Committees which is necessary to effectively and operating and financial performance, annual operating &
reasonably perform and discharge their duties. capex budget, health and safety, marketing and cement
industry scenario and other business issues.
During the year ended on December 31, 2021, the
Independent Directors met amongst themselves without The annual strategic and operating plans of the business
the presence of the Company executives on December are presented to the Board. The quarterly financial
15, 2021. statements and annual financial statements are first
presented to the Audit Committee and subsequently
(iii) Agenda: to the Board for their approval. Also, the Compliance
All the meetings are conducted as per well designed Committee and the Board periodically reviews compliance
and structured agenda and in line with the compliance reports with respect to laws & regulations applicable to
requirement under the Companies Act, 2013, Listing the Company. Important managerial decisions, material
Regulations and applicable Secretarial Standards developments and statutory matters are presented
prescribed by ICSI. All the agenda items are backed to the Committees of the Board and the Committee
by necessary supporting information and documents recommendations are placed before the Board. As a
(except for the critical price sensitive information, which system, information is submitted along with the agenda
is circulated separately in advance or placed at the papers well in advance of the meetings.
meeting) to enable the Board/Committee to take informed
decisions. Agenda also includes minutes of the previous The Chairman of various Board Committees brief the
meetings of all the Board Committees and unlisted Board on all the important matters discussed and
subsidiaries for the information of the Board. decided at their respective committee meetings, which
are generally held prior to the Board meeting.
Additional agenda items in the form of “Other Business”
are included with the permission of the Chairman and (v) Post Meeting Action and Follow-up system:
majority of the Directors present at the meeting. Agenda Post meetings, all important decisions taken at the
papers are circulated seven days prior to the Board / meeting are communicated to the concerned officials
Committee Meeting. Further, information is also provided and departments. Action Taken Report is prepared and
to the Board members on critical matters for their inputs, reviewed periodically by the Managing Director and
review and approval. For any business exigencies, the Company Secretary for the action taken / pending to be
resolutions are passed by circulation and later placed taken.
at the subsequent Board / Committee Meeting for
ratification/approval.

(vi) Support and Role of Company Secretary: As a normal practice, this year also the Audit Committee
The Company Secretary is responsible for convening reviewed the Direct and Indirect tax matters pertaining to
the Board and Committee meetings, preparation and the Company. As a part of deeper engagement, the Board
distribution of Agenda and other documents and Members also interact with the senior management team
recording of the Minutes of the meetings. He acts as on various critical issues having impact on the Company’s
interface between the Board and the Management and operations.
provides required assistance and assurance to the Board
and the Management on compliance and governance The details of familiarisation program can be accessed
aspects. from the ‘Investors’ section on the website of the
Company.
(vii) Compliance Officer:
2.8. Board Evaluation:
Mr. Rajiv Gandhi, Company Secretary is the compliance
officer for complying with the provisions of the Companies During the year under review, the Board adopted a
Act and the Securities Laws. formal mechanism for evaluating its performance and
effectiveness as well as that of its Committees and
2.7. Induction and Familiarisation Program for Directors: individual Directors, including the Chairman of the Board.
The details of the methodology followed along with the
Induction and training of the newly appointed Director and
criteria for performance evaluation are provided in the
ongoing familiarisation of all the Board Members are the
Directors Report.
responsibility of the Managing Director and CEO and the
Company Secretary.
2.9.
Core skills/expertise/competencies of the Board
Members
A newly appointed Director is provided with an
appointment letter along with an induction kit setting out The Members of the Board are committed to ensuring
their roles, function, duties & responsibilities and copies that the Board is in compliance with the highest standard
of the Code of Business Conduct, Insider Trading Code of Corporate Governance. In terms of the requirement
and other policies as may be applicable to them. of the Listing Regulation, the Board has identified the
following skills/expertise/competencies fundamental
Each newly appointed Independent Director is taken for the effective functioning of the Company, which are
through an induction and familiarisation program currently available with the Board along with the names of
including the presentation and interactive session with the Directors, who have such skill/expertise/competence,
the Managing Director and CEO, Executive Committee are given below:-
Members and other Functional Heads on the Company’s
Business & Industry Domain Knowledge in Business and
manufacturing, marketing, finance and other important understanding of business environment,
aspects. The Company Secretary briefs the Director about Optimising the development in the
their legal & regulatory responsibilities as a Director. The industry for improving Company’s
program also includes visit to the plant to familiarise them business.
with all facets of cement manufacturing. On the matters Financial Expertise Financial and risk management,
of specialised nature, the Company engages outside Internal control, Experience of complex
experts/consultants for presentation and discussion with financial reporting processes, taxation,
the Board members. Capital allocation, resource utilisation,
Understanding of Financial policies and
accounting statement and assessing
On an on-going basis, periodic presentations are made economic conditions.
at the Board and Committee meetings, on Health and
Governance & Experience in developing governance
Safety, Sustainability, performance updates of the Compliance practices, serving the best interests of
Company, Industry scenario, business strategy, internal all stakeholders, maintaining board and
control and risks involved and mitigation plan. The management accountability, building long-
Directors are also provided with quarterly update on term effective stakeholder engagements
relevant statutory changes, judicial pronouncements and and driving corporate ethics and values.
important amendments.
Sr. No. Name of the Director Skills

1. Mr. N. S. Sekhsaria, Chairman Business & Industry, Financial Expertise, Governance & Compliance
2. Mr. Jan Jenisch, Vice Chairman Business & Industry, Financial Expertise
3. Mr. Nasser Munjee Financial Expertise, Governance & Compliance
4. Mr. Rajendra Chitale Financial Expertise, Governance & Compliance
5. Mr. Shailesh Haribhakti Financial Expertise, Governance & Compliance
6. Dr. Omkar Goswami Financial Expertise, Governance & Compliance
7. Ms. Shikha Sharma Financial Expertise, Governance & Compliance
8. Mr. Christof Hassig Business & Industry, Financial Expertise
9. Mr. Martin Kriegner Business & Industry, Financial Expertise, Governance & Compliance
10. Ms. Then Hwee Tan Business & Industry, Governance & Compliance

Sr. No. Name of the Director Skills

11. Mr. Mahendra Kumar Sharma Business & Industry, Financial Expertise, Governance & Compliance
12. Mr. Ranjit Shahani Business & Industry, Governance & Compliance
13. Mr. Praveen Kumar Molri Financial Expertise
14. Mr. Ramanathan Muthu Business & Industry, Financial Expertise,
15. Mr. Neeraj Akhoury Business & Industry, Financial Expertise, Governance & Compliance
3. Committees of the Board: 2. The Chief Internal Auditor attends all the Audit
Committee Meetings as far as possible and briefs the
The Committees of the Board play an important role Committee on all the points covered in the Internal
in the governance structure of the Company and have Audit Report as well as the other related issues that
been constituted to focus on specific areas and make comes up during the discussions.
informed decisions within the delegated authority. Each
Committee is guided by its Charter or Terms of Reference, 3. During the year under review, the representatives of
which provides for the composition, scope, powers and the Statutory Auditors have attended all the Audit
duties and responsibilities. The recommendation and/or Committee meetings, where Financial Results were
observations and decisions are placed before the Board approved and Direct and Indirect Tax matters were
for information or approval. The Chairman of respective reviewed.
Committee updates the Board regarding the discussions
held / decisions taken at the Committee Meeting. 4. The representatives of the Cost Auditors have
attended 1 (one) Audit Committee Meeting when the
The Board has constituted the following mandatory and Cost Audit Report was discussed.
non-mandatory Committees:-
5. The CFO and the Heads of Manufacturing, Marketing
3.1 Audit Committee- Mandatory Committee and Logistics also attends the Committee meetings
The Board has constituted a well-qualified Audit to provide inputs on issues relating to internal audit
Committee. All the members of the Committee are Non- findings, internal controls, accounts, taxation, risk
Executive Directors with majority of them are Independent management etc. Other executives are invited to
Directors including the Chairman. They possess sound attend the meeting as and when required.
knowledge on accounts, audit, finance, taxation, internal
controls etc. The Company Secretary acts as the 6. The Committee also invites the representatives of
Secretary to the committee. Holcim group’s internal audit department to attend
the Audit Committee meetings for review of the
A. Composition and Meetings: special audit projects as and when undertaken by
The Audit Committee had 6 meetings during the year them and also to get their valuable support and
2021. The composition of the Audit Committee as at guidance on the international best practices in
December 31, 2021 and attendance of each committee internal audit and strengthening of internal controls.
member are as under:-
C. Private Meetings:
Sr. No. of Meetings
No.
Name of the Directors Category
Attended
In order to get the inputs and opinions of the Statutory
Auditors and the Chief Internal Auditor, the Committee
1. Mr. Rajendra Chitale Independent 6
also held two separate one-to-one meetings during the
(Chairman)
year with the Statutory Auditor and Head of Internal Audit
2. Mr. Nasser Munjee Independent 6
department but without the presence of the MD and CEO
3. Ms. Shikha Sharma Independent 5 and other management representatives.
4. Dr. Omkar Goswami* Independent 5 of 5
5. Mr. Martin Kriegner Non-Independent 6 D. Terms of Reference:
6. Mr. Mahendra Kumar Non-Independent 4 of 5 The terms of reference of the Audit Committee are as per
Sharma* the guidelines set out in the Listing Regulations, 2015
*Dr. Omkar Goswami and Mr. Mahendra Kumar Sharma were read with section 177 of the Companies Act, 2013. These
inducted as members of the Committee w.e.f February 18, broadly includes
2021.
(i) developing an annual plan for Committee, (ii)
Mr. Rajendra Chitale, Chairman of the Audit Committee review of financial reporting processes, (iii) review of
was present at the last Annual General Meeting for risk management, internal control and governance
answering the shareholders queries. processes, (iv) discussions on quarterly, half yearly and
annual financial statements and the auditor’s report,
B. Invitees / Participants: (v) interaction with statutory, internal and cost auditors
1. The MD and CEO is a permanent invitees to all Audit to ascertain their independence and effectiveness of
Committee meetings. audit process and (vi) recommendation for appointment,
remuneration and terms of appointment of auditors.

In addition to the above, the Audit Committee also reviews (including disciplinary action) of any instances of
the following: non-compliance.
(i) Matter included in the Director’s Responsibility E. Other Matters:

Statement. i. The Audit Committee has framed its Charter for
the purpose of effective compliance of Regulation
(ii) Changes, if any, in the accounting policies. 18 of the Listing Regulations, 2015. The Charter is
reviewed by the Committee from time-to-time and
(iii)
Major accounting estimates and significant necessary amendments as may be required are
adjustments in financial statement. made in it.
(iv) Compliance with listing and other legal requirements ii. In view of large number of laws and regulations
concerning financial statements. applicable to the Company’s business, their
complexities and the time required for monitoring the
(v) Subject to review and approval by the Board of compliances, the task of monitoring and reviewing of
Directors, review and approve all Related Party legal and regulatory compliances has been assigned
Transactions entered into by the Company pursuant to a separate committee of directors called the
to each omnibus or specific approval. “Compliance Committee”. The composition and the
scope/function of Compliance Committee are given
(vi) Qualification in draft audit report. under point no. 3.2 below.
(vii) Scrutiny of inter-corporate loans and investments. F. Details of the payment to Statutory Auditors:
Deloitte Haskins & Sells LLP, Chartered Accountants
(viii)
M anagement’s Discussions and Analysis of
(Firm Registration No. 117366W/W-100018) have been
Company’s operations.
appointed as the Statutory Auditors of the Company.
During the year ended December 31, 2021, the Company
(ix) To investigate into substantial default in the payment
and its subsidiary, ACC Ltd. and OneIndia BSC Pvt.Ltd.
to depositors/shareholders (non-payment of
have paid a consolidated sum of `5.53 crores to the
dividend) and creditors.
Statutory Auditors and all its entities.
(x) Review of utilisation of loans and/or advance from/
3.2. Compliance Committee-Non-Mandatory Committee
investment by Company in subsidiary.
With the rapid growth of business and its complexities
(xi) Valuation of undertakings or assets of the company, coupled with increasing regulatory compliances, the
wherever it is necessary. Board felt it necessary to have zero non-compliance
regimes for sustainable business operations. With
(xii) Periodical Internal Audit Reports and the report of this object, a structured mechanism for ensuring full
Ethical View Committee. compliance of various statutes, rules and regulations
has been put in place and a separate Committee of
(xiii) Findings of any special investigations carried out Directors by the name “Compliance Committee” has
either by the Internal Auditors or by the external been constituted by the Board.
investigating agencies.
A. Composition and Meetings:-
(xiv) Letters of Statutory Auditors to management on During the year under review, the Committee held 4
internal control weakness, if any. meetings. The composition of the Compliance Committee
as at December 31, 2021 and attendance of each
(xv) M ajor non routine transactions recorded in the committee member are as under:-
financial statements involving exercise of judgement
Sr. No. of Meetings
by the management. Name of the Directors Category
No. Attended
(xvi) Recommend to the Board, the appointment, re-
(Chairman)
appointment and, if required the replacement or
2. Mr. Shailesh Haribhakti Independent 4
removal of the statutory auditors, cost auditors and
secretarial auditors considering their independence 3. Dr. Omkar Goswami Independent 4
and effectiveness, and recommend their audit fees. 4. Ms. Then Hwee Tan Non-Independent 4
5. Mr. Neeraj Akhoury Managing Director 4
(xvii) Recommend to the Board, the appointment and and CEO
remuneration of the CFO and Chief Internal Auditors.
B. Invitees / Participants:
(xviii)
E ffectiveness of the system for monitoring The Executive Committee Members and the Head of
compliance with laws and regulations and the results Legal department are the Permanent Invitees to all the
of the Management’s investigation and follow-up

Committee meetings. The Company Secretary acts as B. Invitees/Participants:

the Secretary to the Committee. Mr. Neeraj Akhoury, MD and CEO is the Permanent Invitee
to this Committee. The Company Secretary acts as the
C. Terms of Reference: Secretary to the Committee.
The terms of reference of the Committee are to:
C.
Terms of Reference of the Nomination and
a) periodically review the Legal Compliance Audit Remuneration Committee:
report of various Units / Department submitted by The Committee is empowered to -
the Corporate Legal Department;
(i) Formulate criteria for determining qualifications,
b) suggest taking necessary corrective actions for non positive attributes and independence of Directors
compliance, if any; and oversee the succession management process
for the Board and senior management employees.
c)
specifically review and confirm that all the
requirements of Competition Law and Anti Bribery (ii) Identification and assessing potential individuals with
and Corruption Directives are fully complied with; respect to their expertise, skills, attributes, personal
and professional standing for appointment and re-
d) review the significant amendments in the laws, rules appointment as Directors / Independent Directors
and regulations; on the Board and as Key Managerial Personnel.
e) review the significant legal cases filed by and against (iii) Formulate a policy relating to remuneration for
the Company; the Directors, Committee and also the Senior
Management Employees.
f) review the judgements of various court cases not
involving the Company as a litigant but having (iv) Develop a process for evaluation of the Board of
material impact on the Company’s operations; Directors including Independent Director and its
Committees.
g) periodically review the Code of Business Conduct
and Ethics and Code of Conduct for prevention of (v) Conduct Annual performance review of MD and CEO
Insider Trading. and Senior Management Employees;
The Corporate Legal and Secretarial departments provide (vi) Administration of Employee Stock Option Scheme
‘backbone’ support to all the business segments for (ESOS), if any.
timely compliance of all the applicable laws, rules and
regulations by putting in place a robust compliance D. Remuneration Policy
mechanism with adequate checks and balances and
The Company follows a policy on remuneration of
thus facilitates the management in practicing the highest
Directors and Senior Management Employees, which is
standards of Corporate Governance and compliance.
available on the website of the Company.
The Compliance Committee on its part gives valuable
Non – Executive Directors
guidance to ensure full compliance of all significant
laws, rules and regulations as may be applicable to the The Non-Executive Directors shall be entitled to receive
Company on top priority. remuneration by way of sitting fees, reimbursement of
expenses, for participation in the Board/Committee
3.3.
Nomination and Remuneration Committee- meetings and Commission.
Mandatory Committee
Senior Management Employees
A. Composition and Meetings:
The remuneration is divided into two components viz;
The Nomination and Remuneration Committee held
fixed component of salaries, perquisites and retirement
4 meetings during the year. The composition of the
benefits and variable component of performance based
Committee as on December 31, 2021 and the attendance
incentive.
of the members are as under:-
Sr. No. of Meetings E. Details of Remuneration Paid to the Directors

No. Attended
Remuneration to Directors:
(a) The Non-Executive Directors are paid sitting fees of
(Chairman)
`50,000/- per meeting for attending the Board, Audit
2. Mr. N.S. Sekhsaria Non-Independent 4
Committee and the Special Committee meeting and
3. Mr. Shailesh Haribhakti Independent 4 `30,000/- per meeting for attending other committee
4. Mr. Martin Kriegner Non-Independent 4 meetings. The CSR and Sustainability Committee

members have unanimously waived the sitting fees The Commission to Directors is generally revised
for the CSR & Sustainability Committee meeting to once in three years. However, for this Financial
be attended by them. Year 2021, inspite of the better than previous year
performance by the Company, the Directors decided
In addition to the sitting fees, the Company also to continue with the same commission keeping in
pays commission to the Non-Executive Directors view the current pandemic situation.
for their overall engagement and contribution for
the Company’s business. The Commission is paid Taking into consideration the amount of time spent
on a uniform basis to reinforce the principle of on the critical policy decisions, higher degree of
collective responsibility. Accordingly, the Company engagement and increased responsibilities of the
has provided for payment of commission of `20 lakh Chairman of the Board and greater involvement of
to each of the Non-Executive Directors who were in the Chairman of the Audit Committee in some of
office for the whole of the financial year 2021 and on the critical issues relating to internal audit, internal
pro-rata basis to those who were in office for part of control, accounting and compliance and governance
the year. aspects, the Board based on the recommendation
of the Nomination and Remuneration Committee
Considering the accountability and the complexities approved the payment of an additional amount of
of issues handled by the Audit and Compliance `30 lakh and `9 lakh to the Chairman of the Board
Committees respectively, the Company has and the Audit Committee respectively. The maximum
provided additional commission of `16 lakh for each commission payable to the Chairman of the Board
of the Non-Executive Member Directors of the Audit and the Chairman of Audit Committee has been
Committee and Compliance Committee who were in capped at `50 lakh and `45 lakh respectively.
office for the whole of the financial year 2021 and on
pro-rata basis to those who were in office for part of None of the Directors hold any convertible
the year. The maximum commission payable to each instruments.
Non-Executive Director has however been capped
at `36 lakh per Director.
The details of remuneration, sitting fees, performance bonus, and commission paid to each of the Directors during
the year ended on December 31, 2021 are given below:-
(` in lakh)
Sr.
Name of the Director Remuneration Sitting Fees Commission No. of Shares held
No.
1. Mr. N. S. Sekhsaria Nil 4.20 50.00 1,000
2. Mr. Jan Jenisch Nil 2.50 20.00 Nil
3. Mr. Nasser Munjee Nil 8.70 36.00 Nil
4. Mr. Rajendra Chitale Nil 9.60 45.00 4,945
5. Mr. Shailesh Haribhakti Nil 7.00 36.00 Nil
6. Dr. Omkar Goswami Nil 8.50 36.00 Nil
7. Ms. Shikha Sharma Nil 5.30 36.00 Nil
8. Mr. Christof Hassig Nil 3.00 20.00 Nil
9. Mr. Martin Kriegner2 Nil Nil Nil Nil
10. Ms. Then Hwee Tan Nil 4.20 36.00 Nil
11. Mr. Mahendra Kumar Sharma Nil 4.50 33.90 Nil
12. Mr. Ranjit Shahani Nil 4.50 20.00 Nil
13. Mr. Praveen Kumar Molri Nil 3.00 20.00 Nil
14. Mr. Ramanathan Muthu Nil 2.50 20.00 Nil
15. Mr. Neeraj Akhoury3 1154.40 Nil Nil Nil
MD & CEO
TOTAL 1154.40 67.50 408.90 5,945
Note:
1. The Company has not issued any stock options to the Independent Directors.
2. Mr. Martin Kriegner has waived his right to receive any sitting fees and/or commission effective October, 2018.
3. Appointment of MD and CEO is governed by a service contract for a period of 5 years and the notice period of 3 months. His
remuneration includes basic salary, performance bonus, allowances, contribution to provident, superannuation, Holcim performance
shares, national pension scheme etc. and perquisites (including monetary value of taxable perquisites) etc.
3.4. Stakeholder’s Relationship Committee – Mandatory Committee

The Stakeholder’s Relationship Committee is responsible for transfer/transmission of shares, satisfactory redressal
of investors’ complaints and recommends measures for overall improvement in the quality of investor services. The
Committee also looks into allotment of shares kept in abeyance, allotment of shares on exercise of the stock options by
the employees, if any and allotment of privately placed preference shares, debentures and bonds, if any.

A. Composition and Meetings: 3.5.

CSR and Sustainability Committee-Mandatory
The Stakeholders Relationship Committee had 5 meetings Committee
during the year. The Composition of the Committee as The Company has constituted a CSR and Sustainability
at December 31, 2021 and the details of the Members Committee as required under Section 135 of the
participation at the meeting of the Committee are as Companies Act, 2013.
under:-
The Company is at the forefront of undertaking various
Sr. No. of Meetings
Name of the Directors Category CSR activities in the fields of Health and Sanitation, Skill
No. Attended
Development, Agriculture, Water Resource Management
1. Mr. Ranjit Shahani Non- Independent 5
etc. which has tremendously benefitted the communities
(Chairman)
around our operations. Sustainability has been embedded
in the Company’s Vision statement and is a major thrust
3. Dr. Omkar Goswami Independent 5 area for carrying our activities in the most sustainable
4. Mr. Neeraj Akhoury Managing Director 5 manner. The major Sustainability areas include Health
& CEO and Safety, Environment, Alternative Fuels and Raw
Materials (AFR), Waste Management, Renewable Energy,
Mr. Ranjit Shahani, Chairman of the Committee was Sustainable Construction Practices etc.
present at the last Annual General meeting for answering
the shareholders queries. The Company has also formulated “CSR Policy”,
“Sustainability Policy”, “CSR and Sustainability Charter”
B. Redressal of Investors’ Grievances and also publishes its Annual Corporate Sustainable
The Company Secretary is designated as the “Compliance Development Report (GRI G4 compliant A+) which is
Officer” who oversees the redressal of the investors’ available on the Company’s website.
grievances.
A. Composition and Meetings:
The detailed particulars of investors’ complaints handled The Committee is headed by the Board Chairman,
by the Company and its Registrar and Share Transfer Mr. N.S. Sekhsaria. The Committee held 5 meetings
Agent during the year are as under: during the year 2021. The details of the composition and
the attendance at meeting as on December 31, 2021 is
Pending
Nature of Complaints Opening Received Resolved as under:-
Resolution
Non-Receipt of Bonus Nil Nil Nil Nil Sr. No. of Meetings
Shares No. Attended
Non-Receipt of Nil Nil Nil Nil 1. Mr. N. S. Sekhsaria Non-Independent 5
Transferred Shares (Chairman)
Non-Receipt of Nil Nil Nil Nil 2. Mr. Nasser Munjee Independent 4
Dividend 3. Mr. Rajendra Chitale Independent 5
Non-Receipt of Nil Nil Nil Nil 4. Mr. Mahendra Kumar Non-Independent 5
Revalidated Dividend Sharma
Warrants
5. Mr. Martin Kriegner Non-Independent 4
Letters from SEBI / Nil 29 29 Nil
Stock Exchanges, 6. Mr. Neeraj Akhoury Managing Director 5
Ministry of Corporate and CEO
Affairs etc.
Demat Queries Nil 1 1 Nil B. Invitees and Participants
Miscellaneous Nil Nil Nil Nil Ms. Pearl Tiwari, Head – ACF is the Permanent Invitee
Complaints to this Committee. The Company Secretary acts as the
TOTAL Nil 30 30 Nil Secretary to the Committee.
No investor grievances remain pending/unattended for C. Terms of Reference:

a period exceeding 15 days. All the valid requests for The Terms of Reference of the Committee are to:-
transfer of shares have been processed on time and there
a) frame the CSR Policy and its review from time-to-
are no transfers pending for more than 15 days.
time.
Over and above the aforesaid complaints, the Company b) ensure effective implementation and monitoring of
and its Registrar and Share Transfer Agent have received the CSR activities as per the approved policy, plans
around 8389 letters / queries / requests on various and budget.
matters such as change of address, change of bank
c)
ensure compliance with the laws, rules and
particulars, ECS mandate, nomination request etc. and
regulations governing the CSR and to periodically
we are pleased to report that except for requests received
report to the Board of Directors.
towards the year end which are under process, all other
queries / requests have been replied on time. d) review and monitor Sustainability initiatives and its
performance and such other related aspects.

Constitution of Sustainability Committee – Non- A. Composition and Meetings:
Mandatory Committee During the year ended on December 31, 2021, this
The importance of sustainability in business and for Committee had 2 meetings which were attended by the
stakeholders has grown manifold and Commitments by members as under:-
the Holcim Group and the Company to be Net Zero by
Sr. No. of Meetings
2050 to fight climate change is a significant step towards Name of the Directors Category
No. Attended
sustainability. The key sustainability areas include
Circular Economy (Alternative Fuels and Raw Materials,
(Chairman)
Construction & Demolition Waste), Environment, Water
and Nature (Biodiversity), Waste Management, Renewable
Energy, Health and Safety, Sustainable Construction 3. Mr. Shailesh Haribhakti Independent 2
Practices etc. Shareholders and other stakeholders are 4. Mr. Neeraj Akhoury Managing Director 2
increasingly looking for more sustainable actions from the and CEO
companies.
B. Terms of Reference:
In order to maintain the fine balance between the business The Committee is required to lay down the procedures to
and the sustainability initiatives, its periodic review and to review the risk assessment and minimisation procedures
get regular guidance from a standalone committee of the and is responsible for framing, implementing and
Board, CSR & Sustainability Committee was bifurcated monitoring the risk management plan of the Company.
into CSR Committee and the separate Sustainability
Committee of the Board was constituted w.e.f January 1, The Terms of Reference of the Committee are to:-
2022. The Sustainability Committee shall comprise of the
following Member Directors: a) review the framework of Business Risk Management
process;
Composition b) risk identification and assessment;
Sr.
Name of the Directors Category c) review and monitoring of risk mitigation plans and its
No.
implementation.
1. Mr. Martin Kriegner Non-Independent
(Chairman) d) monitor and review the risks & measures related to
2. Mr. N.S. Sekhsaria Non-Independent cyber security.
3. Mr. Ranjit Shahani Non-Independent
During the year, the Committee reviewed the risk trend,
4. Mr. Mahendra Kumar Sharma Non-Independent
exposure and potential impact analysis carried out by
5. Mr. Nasser Munjee Independent
the management. It was specifically confirmed to the
6. Mr. Neeraj Akhoury Managing Director and CEO Committee by the MD and CEO and the CFO that the
mitigation plans are finalised and up to date, owners
Terms of Reference are identified and the progress of mitigation actions are
The Terms of Reference of the Committee are to:- monitored.
a) review and monitor Sustainability initiatives and its
3.7 Management Committee- Non-Mandatory Committee
performance and such other related aspects;
The Management Committee is formed to authorise
b)
review and approve changes in Sustainability grant of Power of Attorney to executives, to approve
Policies, Targets (Short-term and long-term), and various facilities as and when granted by the Banks
Budget (if any), from time to time; and execution of documents for these facilities. Four
c) review the progress on Science Based Targets (SBT), committee meetings were held during the year 2021. The
Net Zero path or any such voluntary commitments committee comprises of Mr. Rajendra Chitale - Chairman,
made by the Company, nationally or globally; Mr. Shailesh Haribhakti and Mr. Neeraj Akhoury as the
Members.
d)
Ensure the development and execution of a
sustainability and decarbonisation strategy and
roadmap; 4. Code & Vigil Mechanism
e) Ensure compliance with the relevant laws, rules 4.1 Code of Conduct:
and regulations governing the Sustainability and to Good companies attract the best talent and at Ambuja
periodically report to the Board of Directors. Cements we believe that our greatest asset is our people.
ACL is a vibrant company, with broad horizons and a
3.6 Risk Management Committee-Mandatory Committee truly diverse workforce. As we continue to evolve and
In compliance with the provisions of Listing Regulations, develop we will do so pursuing the highest standards of
2015 and Companies Act, 2013, the Board has constituted excellence in all our business practices. In line with this
a Risk Management Committee under the Chairmanship philosophy, the Board of Directors has laid down a Code
of Mr. Rajendra Chitale and consists of the members as of Conduct for Business and Ethics (the Code) for all the
stated below. Board members and all the employees in the management
grade of the Company. The Code lays emphasis amongst

other things, on the integrity at workplace and in business The main objectives of the policy are:
practices, honest and ethical personal conduct, diversity,
fairness and respect etc. The Company believes in “Zero (i) To protect the brand, reputation and assets of
Tolerance” to bribery and corruption in any form. In line the Company from loss or damage, resulting
with our governance philosophy of doing business in from suspected or confirmed incidents of fraud/
most ethical and transparent manner, the Board has laid misconduct.
down an “Anti Bribery and Corruption Directives”, which
is embedded to the Code. The Code of Conduct is posted (ii) To provide guidance to the employees, vendors and
on the website of the Company. customers on reporting any suspicious activity and
handling critical information and evidence.
To raise awareness on relevant topics from the Code
amongst employees, the Company conducts regular (iii) To provide healthy and fraud-free work culture.
awareness workshops right from the induction stage to
periodic face to face trainings and online courses and (iv) To promote ACL’s zero tolerance approach towards
also circulates awareness emails from time to time. bribery, corruption, un-ethical behaviour and
noncompliance.
All the Board members and senior management personnel
have confirmed compliance with the code during the year The policy is applicable to all the Directors, employees,
2021. A declaration to that effect signed by the Managing vendors and customers and provides a platform to all of
Director and CEO is attached and forms part of the Annual them to report any suspected or confirmed incident of
Report of the Company. fraud/misconduct, unethical practices, violation of code
of conduct etc. through any of the following reporting
Further, the senior management employees have made protocols:
disclosure to the effect confirming that there were no
financial or commercial transactions in which they or their • E-mail: [email protected]
relatives had any potential conflict of interest with the
• National Toll Free Phone No.: 18002091005
Company.
• Fax Number: 022 66459796
4.2 Prevention of Insider Trading Code:
• Written Communication to: P.O. Box No. 25, HO, Pune
As per SEBI (Prohibition of Insider Trading) Regulations, 411 001
2015, the Company has adopted a Code of Conduct for
Prevention of Insider Trading. All the Directors, employees • Online reporting through: https://integrityline.holcim.
and third parties such as auditors, consultants etc. who com/
could have access to the unpublished price sensitive
information of the Company are governed by this In order to instill more confidence amongst Whistle-
code. The trading window is closed during the time of Blowers, the management of the above referred reporting
declaration of results and occurrence of any material protocols are managed by an independent agency.
events as per the code. The Company has appointed Adequate safeguards have been provided in the policy to
Mr. Rajiv Gandhi, Company Secretary as Compliance prevent victimisation of anyone who is using this platform
Officer, who is responsible for setting forth procedures and direct access to the Chairman of the Audit Committee
and implementation of the code for trading in Company’s is also available in exceptional cases. The policy is also
securities. PAN Number based online tracking mechanism posted on the Company’s website.
for monitoring of the trade in the Company’s securities
by the “Designated Employees” and their relatives has For the effective implementation of the policy, the Audit
also been put in place to ensure real time detection and Committee has constituted an Ethical View Reporting
taking appropriate action, in case of any violation / non- Committee (EVC) of very senior executives comprising of:
compliance of the Company’s Insider Trading Code. (i) Mr. Rajiv Gandhi (Company Secretary), Member and
Secretary
4.3 Vigil Mechanism and Ethical View Policy:
(ii)
Mr. Prabhakar Mukhopadhyay (Chief Internal
With the rapid expansion of business in terms of volume,
Auditor), Member
value and geography, various risks associated with the
business have also increased considerably. One such (iii) Mr. Kanaiya Thakker (Joint President Legal), Member
risk identified is the risk of fraud and misconduct. The
(iv) Mr. Rahul Maitra (Chief Human Resource Officer),
Companies Act, 2013 and the listing regulations requires
Member
all the listed companies to institutionalise the vigil
mechanism and whistle blower policy. The Company, (v) Mr. Sanjay Kumar Khajanchi (Joint President Finance
since its inception believes in honest and ethical conduct & Controlling), Member
from all the employees and others who are directly or
indirectly associated with it. The Audit Committee is also The EVC is responsible for the following:
committed to ensure fraud-free work environment and
(i)
implementation of the policy and spreading
to this end the Committee has laid down a Ethical View
awareness amongst employees;
Policy (akin to the Whistle-Blower Policy), long before the
same was made mandatory under the law.

(ii)
review all reported cases of suspected fraud During the year 2021, a total of 37 complaints have been
misconduct; filed. Of these, based on the pre-assessment of the EVC,
13 complaints did not warrant further investigation. 22
(iii) order investigation of any case either internally or
complaints were investigated and concluded whereas
through external investigating agencies or experts;
2 complaints are still under investigation. The cases
(iv)
recommend to the management for taking investigated were mainly of the nature of alleged bribery
appropriate actions such as disciplinary action, kickbacks, violation of Code of Conduct, conflict of
termination of service, changes in policies and interest, etc. Appropriate actions have been taken where
procedure and review of internal control systems; the case is proved. These were in the form of termination,
transfer and issue of warning letters to employees and
(v) annual review of the policy.
termination of contract, blacklisting of vendor, etc. The
financial impact of these cases were insignificant and
The EVC functions independently and reports directly to
caused no material damages to the Company.
the Audit Committee.
5. General Body Meetings

(i) Annual General Meeting (AGM):
The Company convenes Annual General Meeting generally within four months of the close of the Corporate Financial Year.
The details of Annual General Meetings held in last 3 years along with the details of the Special Resolutions, as more
particularly set out in the notices of the respective AGMs and passed by the members are as follows:-
Financial Year/AGM Venue of AGM Date, Day and Time Special Resolution passed
2020 38th AGM Video conferencing (VC) /Other Audio Friday, April 9, 2021 No special resolutions were passed.
Visual Means(OAVM) at 12:00 noon
2019 37th AGM Video conferencing (VC) /Other Audio Friday, July 10, 2020 No special resolutions were passed.
Visual Means(OAVM) at 10.30 a.m.
2018 36th AGM At the Registered Office at Friday, March 29, 2019 Re-appointment of Mr. Nasser Munjee, Mr.Rajendra
Ambujanagar, Kodinar, Dist. Gir at 10.30 a.m. Chitale, Mr. Shailesh Haribhakti and Dr. Omkar
Somnath, Gujarat Goswami as Independent Director for the second
term.
6. Disclosures 5. Recommendation of the Board Committees: During

the year under review, there has been no instances of
1. Related Party Transactions: There are no materially rejection by the Board of any recommendations made by
significant transactions with the related parties viz. any of its Committees.
Promoters, Directors or the Management, or their relatives
or subsidiaries that had potential conflict with the interest 6. The Company has in place a mechanism to inform the
of the Company. Transactions with related parties, as Board members about the Risk assessment and mitigation
per requirements of Indian Accounting Standard-24, are plans and periodical reviews to ensure that the critical
disclosed in notes to accounts annexed to the financial risks are controlled by the executive management. The
statements and the details of significant transactions in details of the Risk Management Committee are provided
Form AOC-2 is annexed to the Directors Report. at point no. 3.6 of this report.
The Related Party Transactions Policy as approved by the 7. The Company has complied with and disclosed all the
Board is uploaded on the Company’s website mandatory corporate governance requirements under
Regulation 17 to 27 and sub-regulation (2) of Regulation
2. Accounting Standards: The Company has followed all 46 of Listing Regulations, 2015 (relating to disclosure on
relevant Accounting Standards notified by the Companies the website of the Company).
(Indian Accounting Standards) Rules, 2015 while preparing
Financial Statements. 8. The disclosure in relation to Sexual Harassment of Women
at Workplace (Prevention, Prohibition and Redressal) Act,
3. There are no pecuniary relationships or transactions of 2013 forms part of the Directors’ Report.
Non-Executive Directors vis-à-vis the Company which
has potential conflict with the interests of the Company 7. CEO / CFO Certification
at large.
The MD and CEO and Chief Financial Officer (CFO) have
issued certificate pursuant to the provisions of Regulation
4. Details of non-compliance: No penalties or strictures
17(8) of the Listing Regulations, 2015 certifying that the
have been imposed on the Company by Stock Exchange
financial statements do not contain any materially untrue
or SEBI or any statutory authority on any matter related
statement and these statements represent a true and
to capital markets during the last three years.

fair view of the Company’s affairs. The said certificate is Report and other important information is circulated to
annexed and forms part of the Annual Report. members and others entitled thereto. The Management’s
Discussion and Analysis (MDA) Report and the Integrated
8. Discretionary Requirements under Regulation 27 of Report forms part of the Annual Report.
Listing Regulations, 2015

The status of compliance with discretionar y Chairman’s Communiqué: The Chairman’s Letter forms

recommendations of the Regulation 27 of the Listing part of the Annual Report.
Regulations, 2015 with Stock Exchanges is provided
below: F iling with the Stock Exchanges: All periodical

compliance filings required to be filed with the Stock
8.1 Non-Executive Chairman’s Office: Chairman’s office is Exchanges like shareholding pattern, corporate
separate from that of the Managing Director and CEO. governance report, media releases, statement of investor
complaints, among others are filed electronically with the
8.2 Shareholders’ Rights: As the quarterly and half yearly BSE Limited and the National Stock Exchange of India
financial performance along with significant events are Limited.
published in the newspapers and are also posted on the
Company’s website, the same are not being sent to the S EBI Complaints Redress System (SCORES): The

shareholders. investor complaints are processed in a centralised
web-based complaints redress system. The salient
8.3 Modified Opinion in Auditors Report: The Company’s features of this system are: Centralised database of all
financial statements for the year 2021 do not contain any complaints, online upload of Action Taken Reports (ATRs)
modified audit opinion. by concerned companies and online viewing by investors
of actions taken on the complaint and its current status.
8.4 Separate posts of Chairman and CEO: The Chairman
of the Board is a Non-Executive Director and his position eminder to Investors: Reminders to the shareholders
R
is separate from that of the Managing Director and CEO. are sent for claiming returned undelivered shares
certificates, unclaimed dividend investor complaints etc.
8.5 Reporting of Internal Auditor: The Chief Internal Auditor
reports to the Audit Committee and he participates in the 10. General Shareholders’ Information
meetings of the Audit Committee and presents his audit
observations to the Committee. 10.1 39th Annual General Meeting:
Day and Date : Friday, April 29, 2022
9. Means of Communication Time : 2.00 p.m.
F inancial results: The Company’s quarterly, half Venue :
V ideo conferencing (VC) /Other
yearly and annual financial results are sent to the Stock Audio Visual Means(OAVM)
Exchanges and published in ‘Financial Express’ and other
newspapers. Simultaneously, they are also uploaded on 10.2 Financial Calendar:
the Company’s website (www.ambujacement.com) The Company follows the period of January 1 to
December 31, as the Financial Year. For the FY 2022,
News releases, presentations, etc.: Official news financial results will be announced as per the following
releases and official media releases are sent to Stock tentative schedule:-
Exchanges and are displayed on Company’s website
(www.ambujacement.com). First quarterly results : April, 2022
Second quarterly / Half yearly results : July, 2022
Presentations to institutional investors / analysts: Third quarterly results : October, 2022
These presentations and Schedule of analyst or
Annual results for the year ending on : February, 2023
institutional investors meet are also uploaded on the December 31, 2022
Company’s website (www.ambujacement.com) as well
Annual General Meeting for the year : April, 2023
as sent to the Stock Exchanges. No unpublished price ending on December 31, 2022
sensitive information is discussed in the presentation
made to institutional investors and financial analysts.
10.3 Record Date:
Website: The Company’s website (www.ambujacement.
The Company has fixed Friday, April 1, 2022 as the
com) contains a separate dedicated section ‘Investors’ Record date for determining the shareholders to whom
where shareholders’ information is available. The the dividend shall be paid.
Company’s Annual Repor t is also available in
downloadable form. 10.4 Dividend Payment Date:
Dividend shall be paid to all the eligible shareholders from
A nnual Report: The Annual Report containing, inter
May 5, 2022 onwards.
alia, Audited Financial Statements, Audited Consolidated
Financial Statements, Directors’ Report, Auditors’

10.5 Dividend Policy:
The Company is paying dividend from its very first full year of operation. From a modest dividend of 11% in 1987-88, the
Company has been rewarding its shareholders with appropriate dividend.
During the last 5 years, the Company has usually been maintaining the pay-out ratio of more than 20%. The Board of
Directors have framed a Dividend Policy which is posted on the website of the Company.
10.6 Dividend history for the last 5 years is as under:

Interim Dividend Final Dividend Total Dividend Dividend Amt.
Financial year
Rate (%) Rate (%) Rate (%) (` in crore)
2016 80 60 140 486.58
2017 80 100 180 714.83
2018 Nil 75 75 297.85
2019 75 Nil 75 297.85
2020 850 50 900 3574.16
10.7 Listing of Shares and Other Securities:

A. Equity Shares
The equity shares are at present listed on the following Stock Exchanges and the Listing fees have been duly paid to the
Exchanges:
Name of the Stock Exchanges and the stock code/Symbol

(i) BSE Ltd. 500425
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001.
(ii) National Stock Exchange AMBUJACEM

of India Ltd.
Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051.
B. Debentures
There are no outstanding debentures.
C. GDRs
The GDRs are listed under the EURO MTF Platform (Code:US02336R2004) of Luxembourg Stock Exchange, S.A, 35A
Boulevard Joseph II, L-1840, Luxembourg.
D. ISIN Code for the Company’s equity share:

INE079A01024
E. Corporate Identity Number (CIN):

L26942GJ1981PLC004717
10.8 Market Price Data:

The high / low market price of the shares during the year 2021 at the Bombay Stock Exchange Limited and at National
Stock Exchange of India Ltd. were as under:-
Bombay Stock Exchange National Stock Exchange

Month
High (`) Low (`) High (`) Low (`)
January-21 274.40 242.00 274.60 241.75
February-21 290.70 242.35 290.50 242.10
March-21 310.80 273.50 310.95 273.50
April-21 329.90 285.30 329.90 285.30
May-21 335.30 300.20 335.00 300.00
June-21 351.15 323.15 351.50 322.55
July-21 415.00 337.20 415.35 337.25
August-21 427.20 381.50 427.40 381.25
September-21 442.95 398.50 442.50 398.40
October-21 417.25 365.95 418.00 365.75
November-21 435.25 359.90 435.00 360.05
December-21 387.30 345.00 387.40 347.00

10.9 Performance in comparison to broad based indices
Ambuja Cement v/s BSE Sensex
200.0
180.0
160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
BSE % Ambuja %
10.10 Share Transfer Agents: exchange of securities certificate, endorsement, sub-

The details of the Registrar and Share Transfer Agents division/splitting/consolidation of certificate, transmission
are: and transposition which were allowed in physical form
should be processed in dematerialised form only. The
Link Intime India Pvt Ltd, necessary forms for the above request are available on the
C-101, 247 Park, L B S Marg, Vikhroli (West), website of the Company i.e https://www.ambujacement.
Mumbai – 400 083. com.
Tel : +91-022-4918 6000/49186270;
Email: [email protected]. Shareholders holding shares in physical form are advised
to avail the facility of dematerialisation.
10.11 Share Transfer System:
Shareholders should communicate with Link Intime
The Board-level Stakeholders’ Relationship Committee
India Private Limited, the Company’s Registrars & Share
examines and redresses investors’ grievances. The status
Transfer Agent at [email protected] quoting
of investors’ grievances and share transfers are reported
their folio number or Depository Participant ID and Client
to the Board.
ID number, for any queries relating to their securities.
As mandated by SEBI, securities of the Company can be
The average time taken for processing and registration
transferred /traded only in dematerialised form. Further,
of relodged share transfer requests is less than 15 days.
SEBI vide its circular dated January 25, 2022, mandated
The Stakeholders Relationship Committee considers the
that all service requests for issue of duplicate certificate,
transfer proposals generally on a weekly basis.
claim from unclaimed suspense account, renewal/
10.12 Distribution of Shareholding:

The shareholding distribution of the equity shares as on December 31, 2021 is given below:-
No. of Percentage of
No. of Equity Shares Shareholders
No. of Shares
Shareholding
Less than 50 2,22,316 38,22,775 0.19
51 to 100 41,377 35,29,539 0.18
101 to 500 38,640 94,15,747 0.47
501 to 1000 8,042 63,25,264 0.32
1001 to 5000 12,180 3,14,12,921 1.58
5001 to 10000 2,252 1,62,38,836 0.82
10001 to 50000 1,479 2,87,76,531 1.45
50001 to 100000 167 1,19,14,628 0.60
100001 to 500000 254 6,17,70,636 3.11
500001 and above 198 1,81,24,38,352 91.28
TOTAL 3,26,905 1,98,56,45,229 100.00

10.13 Shareholding Pattern:
The shareholding of different categories of the shareholders as on December 31, 2021 is given below:-
Category No. of Shares (%)

Foreign Promoters 1,25,31,56,361 63.11
Foreign Investors (FIIS) 29,11,90,126 14.66
Mutual Funds, Banks & Financial Institution 29,92,61,133 15.07
OCB’s, NRI’s 1,04,03,833 0.52
Body Corporates 93,25,672 0.47
GDR Holders 32,17,839 0.16
Others 11,90,90,265 6.00
Total 1,98,56,45,229 100.00
10.14 Dematerialisation of Shares: (iii) The diluted equity share capital of the Company upon
About 99.44% of total equity share capital is held conversion of all the outstanding convertible instruments
in dematerialised form with NSDL and CDSL as on will become `397.16 crore.
December 31, 2021.
10.17
Commodity Price Risk or Foreign Exchange Risk
10.15 Reconciliation of Share Capital Audit: and Hedging Activities:
As stipulated by Securities and Exchange Board of India The company does not have any exposure hedged
(SEBI), a qualified practicing Company Secretary carries through Commodity derivatives.
out the Share Capital Audit to reconcile the total admitted
capital with National Securities Depository Limited (NSDL) The company has well defined Forex Exchange Risk
and Central Depository Services (India) Limited (CDSL) Management Policy approved by Board of Directors,
and the total issued and listed capital. This audit is carried forex exposure are duly hedged as per the said policy
out every quarter and the report thereon is submitted to through plain vanilla forward covers.
stock exchanges, NSDL and CDSL and is also placed
before the Board of Directors. No discrepancies were 10.18 Credit Rating:
noticed during these audits. During the year under review, the Company retained its
domestic credit ratings of CRISIL AAA / A1+ from CRISIL
10.16 Outstanding GDRs or Warrants or any Convertible for its bank loan facilities. During the year under review,
Instrument, conversion Dates and likely impact on the Company has not issued any debt instrument or any
Equity: fixed deposit programme.
(i) The Company had issued Foreign Currency Convertible
Bonds (FCCB) in the year 1993 and 2001. Out of the total 10.19 Plant Locations:
conversion of these bonds into GDRs, 32,17,839 GDRs are Integrated Cement Plants Bulk Cement Terminals
outstanding as on December 31, 2021 which is listed on (i) Ambujanagar, Taluka Kodinar, (i) Muldwarka, District Gir
the Luxembourg Stock Exchange. The underlying shares District Gir Somnath, Gujarat. Somnath, Gujarat.
representing the outstanding GDRs have already been (ii) Darlaghat, District Solan, (ii) Panvel, District Raigad,
included in equity share capital. Therefore, there will be no Himachal Pradesh. Maharashtra.
further impact on the equity share capital of the Company. (iii) Maratha Cement Works, Dist. (iii) Cochin, Kerala.
Chandrapur, Maharashtra.
(ii)
The Company has issued warrants which can be (iv) Rabriyawas, Dist. Pali, (iv) Mangalore, Karnataka
converted into equity shares. The year-end outstanding Rajasthan.
position of the rights shares / warrants that are convertible
(v) Bhatapara, Dist. Raipur, (v) Magdalla, District, Surat,
into shares and their likely impact on the equity share Chhattisgarh. Gujarat
capital is as under:-
(vi) Marwar, Dist Naguar,
Rajasthan
A. Rights entitlement kept in abeyance out of the Rights
Issue of equity shares and warrants to equity shareholders
Grinding Stations
made in the year 1992
(i) Bathinda, Punjab.
(` in crore)
Likely impact on
(ii) Dadri, Dist Gautam Budh Nagar, Uttar Pradesh.
Conversion full con-version (iii) Farakka, Dist. Murshidabad, West Bengal.
Sr.
Issue Particulars rate (` per
No. Share Share
share) (iv) Nalagarh, Dist. Solan, Himachal Pradesh
Capi-tal Pre-mium
(v) Ropar District, Punjab.
(i) 139830 Right shares 6.66* 0.03 0.07
(ii) 186690 Warrants 7.50* 0.04 0.10 (vi) Roorkee, Dist. Haridwar, Uttaranchal.
TOTAL 0.07 0.17 (vii) Sankrail, Dist. Howrah, West Bengal.
(viii) Magdalla, Dist. Surat, Gujarat.
(*) conversion price has been arrived after appropriate adjustment
of split and bonus issues.

10.20 Registered Office: 10.24

Disclosure relating to Demat Suspense Account/
Ambuja Cements Limited, P. O. Ambujanagar, Taluka Unclaimed Suspense Account
Kodinar, District Gir Somnath, Gujarat - 362 715. In according with the requirement of Regulation 34 (3) and
Part F of the Schedule V of the Listing Regulations 2015,
10.21 Address for Correspondence: the Company report the following details in respect of
(a) Corporate Office: Ambuja Cements Limited, Elegant equity shares lying in the Suspense account:
Business Park, MIDC Cross Road ‘B’, Off Andheri-Kurla Number of Number of
Road, Andheri (East), Mumbai-400 059. Phone No: 022 – Particulars
shareholders Equity Shares
40667000/ 66167000. Aggregate number of 1481 9,89,496
shareholders and outstanding
(b) Exclusive e-mail id for Investor Grievances: The following shares in the suspense account
e-mail ID has been designated for communicating investors’ at the beginning of the Financial
grievances:- [email protected]. Year 2021
Less: Number of shareholders 9 5,566
10.22 Transfer of Unpaid/Unclaimed Dividend Amounts to who approached the Company
Investor Education and Protection Fund for transfer of shares and shares
transferred from Suspense
During the year under review, the final dividend amount Account during 2021
for the year ended December 31, 2013 and the interim Less: Number of shares 201 33,721
dividend for the year December 31, 2014 were transferred Transferred to Investor Education
to the Investor Education and Protection Fund. and Protection Fund (IEPF)
Aggregate number of 1271 9,50,209
10.23
Transfer of Unclaimed Equity Shares to Investor shareholders and outstanding
Education and Protection Fund (IEPF) Suspense shares in the suspense account
Account at the end of the Financial Year
2021
Pursuant to the provisions of Section 124 and 125 of the
Companies Act, 2013 and the Investor Education and
The voting rights on these shares will remain frozen till the
Protection Fund Authority (Accounting, Audit, Transfer
rightful owner claims the shares.
and Refund) Rules, 2016 as amended, (“Rules”) all shares
on which dividend has not been paid or claimed for seven
consecutive years or more is required to be transferred 11. Subsidiary Companies
to an IEPF after complying with the procedure laid down
The Company does not have any material unlisted
under the Rules.
subsidiary companies as defined in Regulation 16 of the
Listing Regulations, 2015.
The Company in compliance with the aforesaid provisions
and the Rules has transferred 36,75,074 equity shares
The Board of Directors of the Company periodically
of the face value of `2/- each belonging to 33,083
review the statement of all significant transactions and
shareholders underlying the unclaimed dividends. The
arrangements entered into by the unlisted subsidiary
market value of the shares transferred is `138.73 crore
companies.
considering the share price as on December 31, 2021.
Copies of the Minutes of the Board Meeting of the unlisted
Members are requested to take note that the company
subsidiary Company were placed at the Board Meeting
has also initiated the process for transfer of the shares
of the Company held during the year.
underlying the unclaimed / unpaid final dividend declared
for the financial year 2014, which is due for transfer to
The Company has framed the policy for determining
IEPF Account during May, 2022. Members may after
material subsidiary and the same is disclosed on the
completing the necessary formalities, claim their
Company’s website.
unclaimed dividends immediately to avoid transfer of the
underlying shares to the IEPF.
Accordingly, the requirement of appointment of
Independent Director of the Company on the Board of
Members may note that the dividend and shares
Directors of the material unlisted subsidiary companies
transferred to the IEPF can be claimed back by the
as per Regulation 24 of the Listing Regulations does not
concerned shareholders from the IEPF Authority after
apply.
complying with the procedure prescribed under the
Rules. Information on the procedure to be followed for
claiming the dividend /shares is available on the website
of the company.

WEBLINKS FOR THE MATTERS REFERRED IN THIS REPORT
Weblink for the policies/codes referred to the Corporate Governance Report are as under:-
Particulars Website Link

Policy on Board Diversity https://www.ambujacement.com/Upload/PDF/policy-on-board-diversity.pdf
Code of Conduct https://www.ambujacement.com/Upload/PDF/Code-of-Conduct_Updated_Latest.pdf
CSR Policy https://www.ambujacement.com/Upload/PDF/ACL-CSR-Policy-2021.pdf
Dividend Distribution Policy https://www.ambujacement.com/Upload/PDF/dividend-distribution-policy.pdf
Policy on determination & disclosure of materiality https://www.ambujacement.com/Upload/PDF/Policy-for-Dissemination-of-Information-
of events of-Stock-Exchange2019.pdf
Ethical View Policy (Vigil Mechanism & Whistle https://www.ambujacement.com/Upload/PDF/Ethical-View-Reporting-Policy-June-2020.
Blower Policy) pdf
Insider Trading Code https://www.ambujacement.com/Upload/PDF/Insider-Trading-Code-of-
Conduct-18102019.pdf
Familiarisation Programme for Independent https://www.ambujacement.com/Upload/PDF/Familiarization-Programme-for-
Directors Independent-Directors.pdf
Policy for determining material Subsidiary https://www.ambujacement.com/Upload/PDF/Policy-for-determining-Material-
Subsidiaries2019.pdf
Policy on materiality of Related Party Transaction https://www.ambujacement.com/Upload/PDF/Policy-on-materiality-of-RPT-221020.pdf
Letter of Appointment to Independent Director https://www.ambujacement.com/Upload/PDF/Letter-of-appointment-Independent-
Directors.pdf
Details of unpaid and unclaimed dividends and https://www.ambujacement.com/investors/transfer-of-unpaid-and-unclaimed-dividends-
shares transferred to IEPF and-shares-to-iepf
Policy for selection, appointment & remuneration of https://www.ambujacement.com/Upload/PDF/policy-for-selection-appointment-and-
Directors remuneartion-of-directors.pdf
DECLARATION REGARDING CODE OF CONDUCT
I hereby declare that all the Directors and Senior Management Personnel have confirmed compliance with the Code of Conduct
as adopted by the Company during the year 2021.
Neeraj Akhoury
Mumbai, February 17, 2022 Managing Director & CEO

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

[Pursuant to Regulation 34(3) and Schedule V Para C Clause (10)(i) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015]
To, for the purpose of issuing this Certificate, in accordance with

The Members Regulation 34(3) read with Schedule V Para C Clause 10(i) of
AMBUJA CEMENTS LIMITED the Securities and Exchange Board of India (Listing Obligations
Ambuja Nagar - 362 715 and Disclosure Requirements) Regulations, 2015.
Taluka: Kodinar,
District: Gir Somnath In our opinion and to the best of our information and according
(Gujarat) to the verifications (including Directors Identification Number
(DIN) status at the portal www.mca.gov.in) as considered
We have examined the relevant registers, records, forms, necessary and explanations furnished to us by the Company
returns and disclosures received from the Directors of and its officers, we hereby certify that none of the Directors
AMBUJA CEMENTS LIMITED - CIN L26942GJ1981PLC004717 on the Board of the Company as stated below and who were
(hereinafter referred to as ‘the Company’) having registered on the Board of Directors of the Company as on December 31,
office at Ambuja Nagar - 362 715, Taluka - Kodinar, District - Gir 2021 have been debarred or disqualified from being appointed
Somnath (Gujarat) and Corporate Office at Elegant Business or continuing as Directors of companies by the Securities and
Park, MIDC Cross Road ‘B’, Off Andheri Kurla Road, Andheri Exchange Board of India, Ministry of Corporate Affairs or any
(East), Mumbai - 400 059, produced before us by the Company such statutory authority.
Sr. No. Name of the Director DIN Date of appointment in the Company
1. Narotam Satyanarayan Sekhsaria 00276351 10/11/1982
2. Omkar Goswami 00004258 20/07/2006
3. Shailesh Vishnubhai Haribhakti 00007347 03/05/2006
4. Nasser Mukhtar Munjee 00010180 16/08/2001
5. Rajendra Prabhakar Chitale 00015986 04/07/2002
6. Shikha Sanjaya Sharma 00043265 01/04/2019
7. Martin Kriegner 00077715 11/02/2016
8. Ranjit Gobindram Shahani 00103845 01/04/2019
9. Mahendra Kumar Sharma 00327684 01/04/2019
10. Muthu Ramanathan 01607274 23/12/2020
11. Christof Werner Hassig 01680305 09/12/2015
12. Neeraj Akhoury 07419090 21/02/2020
13. Praveen Kumar Molri 07810173 01/04/2019
14. Jan Philipp Jenisch 07957196 24/10/2017
15. Then Hwee Tan 08354724 18/02/2019
Ensuring the eligibility for the appointment/continuity of every Director on the Board is the responsibility of the management
of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an
assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has
conducted the affairs of the Company.
For Surendra Kanstiya Associates

Company Secretaries
Surendra U. Kanstiya
Proprietor
FCS 2777. CP No 1744
Place: Mumbai UIN: S1990MH007900
Date: January 27, 2022 UDIN: F002777C002301141

AUDITORS’ CERTIFICATE
To, on Certification of Corporate Governance issued by the

The Members of Ambuja Cements Limited Institute of the Chartered Accountants of India (the ICAI),
the Standards on Auditing specified under Section 143(10)
of the Companies Act, 2013, in so far as applicable for the
Independent Auditor’s Certificate on Corporate Governance purpose of this certificate and as per the Guidance Note
1. This certificate is issued in accordance with the terms of on Reports or Certificates for Special Purposes issued by
our engagement letter dated April 10, 2021. the ICAI which requires that we comply with the ethical
requirements of the Code of Ethics issued by the ICAI.
2. We, Deloitte Haskins & Sells LLP, Chartered Accountants,
the Statutory Auditors of Ambuja Cements Limited (“the 7.
We have complied with the relevant applicable
Company”), have examined the compliance of conditions requirements of the Standard on Quality Control (SQC) 1,
of Corporate Governance by the Company, for the year Quality Control for Firms that Perform Audits and Reviews
ended on December 31, 2021, as stipulated in Regulations of Historical Financial Information, and Other Assurance
17 to 27 and clauses (b) to (i) of Regulation 46(2) and para and Related Services Engagements.
C and D of Schedule V of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (the Opinion
Listing Regulations). 8. Based on our examination of the relevant records and
according to the information and explanations provided to
Managements’ Responsibility us and the representations provided by the Management,
3. The compliance of conditions of Corporate Governance is we certify that the Company has complied with the
the responsibility of the Management. This responsibility conditions of Corporate Governance as stipulated in
includes the design, implementation and maintenance of regulations 17 to 27 and clauses (b) to (i) of regulation
internal control and procedures to ensure the compliance 46(2) and para C and D of Schedule V of the Listing
with the conditions of the Corporate Governance Regulations during the year ended December 31, 2021.
stipulated in Listing Regulations.
9. We state that such compliance is neither an assurance as
Auditor’s Responsibility to the future viability of the Company nor the efficiency or
4. Our responsibility is limited to examining the procedures effectiveness with which the Management has conducted
and implementation thereof, adopted by the Company for the affairs of the Company.
ensuring compliance with the conditions of the Corporate
Governance. It is neither an audit nor an expression of For DELOITTE HASKINS & SELLS LLP
opinion on the financial statements of the Company. Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
5. We have examined the books of account and other relevant
records and documents maintained by the Company for Saira Nainar
the purposes of providing reasonable assurance on the Partner
compliance with Corporate Governance requirements by (Membership No. 040081)
the Company. UDIN No.: 22040081ACYTRB1350
6. We have carried out an examination of the relevant records Mumbai

of the Company in accordance with the Guidance Note February 17, 2022

CERTIFICATE BY CHIEF EXECUTIVE OFFICER (CEO) AND CHIEF FINANCIAL OFFICER

(CFO) PURSUANT TO REGULATION 17(8) OF SEBI (LISTING OBLIGATIONS AND
DISCLOSURE REQUIREMENTS) REGULATIONS, 2015
The Board of Directors

Ambuja Cements Ltd.
We have reviewed the attached financial statements and the cash flow statement of Ambuja Cements Ltd. for the financial year
ended December 31, 2021 and that to the best of our knowledge and belief, we state that;
(a) (i) These statements do not contain any materially untrue statement or omit any material fact or contain statements that
may be misleading;
(ii) These statements present a true and fair view of the Company’s affairs and are in compliance with current accounting
standards, applicable laws and regulations.
(b) There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which
are fraudulent, illegal or in violation of the Company’s Code of Conduct.
(c) We accept responsibility for establishing and maintaining internal controls for financial reporting. We have evaluated the
effectiveness of internal control systems of the Company pertaining to financial reporting and have disclosed to the Auditors
and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware
and steps taken or proposed to be taken for rectifying these deficiencies.
(d) We have indicated to the Auditors and the Audit Committee:
(i) Significant changes, if any, in the internal control over financial reporting during the year.
(ii) Significant changes, if any, in accounting policies made during the year and that the same have been disclosed in the
notes to the financial statements; and
(iii) Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management
or an employee having a significant role in the Company’s internal control system over financial reporting.
Neeraj Akhoury Rajani Kesari

Managing Director & Chief Executive Officer Chief Financial Officer
Place: Mumbai
Date: February 17, 2022

INDEPENDENT AUDITOR’S REPORT
To The Members of Ambuja Cements Limited Emphasis of Matter

We draw attention to the following matters in Notes 48(b)(i) and
Report on the Audit of the Standalone Financial Statements 48(b)(ii) to the standalone financial statements:
Opinion
a. In terms of the order dated 31st August, 2016, the
We have audited the accompanying standalone financial Competition Commission of India (CCI) had imposed a
statements of Ambuja Cements Limited (“the Company”), penalty of ` 1,163.91 crores for alleged contravention
which comprise the Balance Sheet as at 31st December, of the provisions of the Competition Act, 2002 (the
2021, and the Statement of Profit and Loss (including Other Competition Act) by the Company. On the Company’s
Comprehensive Income), the Cash Flow Statement and the appeal, National Company Law Appellate Tribunal
Statement of Changes in Equity for the year then ended, (NCLAT), which replaced the Competition Appellate
and a summary of significant accounting policies and other Tribunal (COMPAT) effective 26th May, 2017, in its order
explanatory information and which includes a joint operation passed on 25th July, 2018 had upheld the CCI’s Order.
accounted on proportionate basis. The Company’s appeal against the said judgement of
NCLAT before the Hon’ble Supreme Court was admitted
In our opinion and to the best of our information and according vide its order dated 5th October, 2018 with a direction that
to the explanations given to us, the aforesaid standalone the interim order passed by the Tribunal would continue.
financial statements give the information required by the
Companies Act, 2013 (“the Act”) in the manner so required b. In a separate matter, pursuant to a reference filed by the
and give a true and fair view in conformity with the Indian Government of Haryana, the CCI vide its order dated
Accounting Standards prescribed under section 133 of the 19th January, 2017, had imposed a penalty of ` 29.84
Act read with the Companies (Indian Accounting Standards) crores for alleged contravention of the provisions of the
Rules, 2015, as amended, (“Ind AS”) and other accounting Competition Act. On Company’s filing an appeal together
principles generally accepted in India, of the state of affairs with application for interim stay against payment of
of the Company as at 31st December 2021, and its profit total penalty, COMPAT has stayed the penalty pending hearing
comprehensive income, its cash flows and the changes in of the application. This matter is listed before the NCLAT
equity for the year ended on that date. for hearing.
Basis for Opinion Based on the Company’s assessment on the outcome of these
We conducted our audit of the standalone financial statements appeals, supported by the advice of external legal counsel,
in accordance with the Standards on Auditing specified the Company is of the view that no provision is necessary
under section 143(10) of the Act (SAs). Our responsibilities in respect of these matters in these Standalone Financial
under those Standards are further described in the Auditor’s Statements.
Responsibility for the Audit of the Standalone Financial
Statements section of our report. We are independent of the Our opinion is not modified in respect of these matters.
Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India (ICAI) together Key Audit Matters
with the ethical requirements that are relevant to our audit of Key audit matters are those matters that, in our professional
the standalone financial statements under the provisions of judgment, were of most significance in our audit of the
the Act and the Rules made thereunder, and we have fulfilled standalone financial statements of the current period. These
our other ethical responsibilities in accordance with these matters were addressed in the context of our audit of the
requirements and the ICAI’s Code of Ethics. We believe that standalone financial statements as a whole, and in forming
the audit evidence obtained by us is sufficient and appropriate our opinion thereon, and we do not provide a separate opinion
to provide a basis for our audit opinion on the standalone on these matters. We have determined the matters described
financial statements. below to be the key audit matters to be communicated in our
report.

Sr.
Key Audit Matters Auditor’s Responses
No.
1 Litigation, Claims and Contingent Liabilities: Principal audit procedures performed:
(Refer Notes 3J and 48, read along with Emphasis of Matter • We understood the processes, evaluated the design and
in Independent Auditor’s Report of the standalone financial implementation of controls and tested the operating effectiveness
statements) of the Company’s controls over the recording and re-assessment
The Company is exposed to a variety of different laws, of uncertain legal positions, claims (including claims receivable)
regulations and interpretations thereof which encompasses and contingent liabilities.
indirect taxation and legal matters. In the normal course of • We held discussions with senior management including the person
business, provisions and contingent liabilities may arise from responsible for legal and compliance to obtain an understanding
legal proceedings, including regulatory and other Governmental of the factors considered by management in classification of the
proceedings, constructive obligations as well as investigations matter as ‘probable’, ‘possible’ and ‘remote’.
by authorities and commercial claims. • For those matters where Management concluded that no provision
Based on the nature of regulatory and legal cases management should be recorded, we also considered the adequacy and
applies significant judgement when considering whether, and completeness of the Company’s disclosures made in relation to
how much, to provide for the potential exposure of each matter. contingent liabilities.
These estimates could change substantially over time as new • Examined the Company’s legal expenses on sample basis and
facts emerge as each legal case or matters progresses. read the minutes of the board meetings and the legal compliance
Given the different views possible, basis the interpretations, committee in order to ensure completeness.
complexity and the magnitude of the potential exposures, and • We read the correspondence from Court authorities and considered
the judgement necessary to determine required disclosures, this legal opinion obtained by the Management from external law
is a key audit matter. firms to evaluate the basis used for provisions recognised or the
disclosures made in the standalone financial statements.
• We also obtained direct legal confirmations for significant
matters from the law firms handling such matters to corroborate
management’s conclusions.
2. Income tax provision : Principal audit procedures performed:
(Refer Notes 3P, 30, 31 and 48 of the standalone financial • Our audit procedures to test uncertain tax positions included
statements) understanding processes, evaluation of design and implementation
This matter has been identified as a Key Audit Matter due to of controls and testing of operating effectiveness of the Company’s
the significant level of management judgement required in the controls over provision for taxation, assessment of uncertain tax
estimation of provision for income taxes including any write positions and disclosure of contingencies.
back of provisions, due to the following factors: • Obtained details of completed tax assessments and demands as
• Existence of multiple uncertain tax positions leading to of December 31, 2021 from the management.
multiple disputes / litigations • We discussed with appropriate senior management personnel,
• Provision for tax involves interpretation of various rules and independently assessed management’s estimate of the possible
law. It also involves consideration of on-going disputes and outcome of the disputed cases; and evaluated the Management’s
disclosures of related contingencies. underlying key assumptions in estimating the tax provisions.
• We considered legal precedence and other rulings in evaluating
management’s position on these uncertain tax positions, the
provisions made, and/or write back of the provisions.
• We also involved our direct tax specialist in evaluating
management’s assessment for the uncertain tax positions.
• For those matters where Management concluded that no provision
should be recorded, we also considered the adequacy and
completeness of the Company’s disclosures made in relation to
contingent liabilities.
Information Other than the Financial Statements and • In connection with our audit of the standalone financial
Auditor’s Report Thereon statements, our responsibility is to read the other
The Company’s Board of Directors is responsible for the other information, and consider whether the other information
information. The other information comprises the information is materially inconsistent with the standalone financial
included in the Directors’ report and Management Discussion statements or our knowledge obtained during the course
and Analysis, Report on Corporate Governance and Business of our audit or otherwise appears to be materially misstated.
Responsibility report, but does not include the consolidated • If based on the work we have performed, we conclude that
financial statements, standalone financial statements and our there is a material misstatement of this other information, we
auditor’s report thereon. are required to report that fact. We have nothing to report
in this regard.
• Our opinion on the standalone financial statements does
not cover the other information and we do not express any
form of assurance conclusion thereon.

Management’s Responsibility for the Standalone Financial • Obtain an understanding of internal financial control relevant
Statements to the audit in order to design audit procedures that are
The respective Board of Directors of the Company and its Joint appropriate in the circumstances. Under section 143(3)(i) of
Operation Company are responsible for the matters stated in the Act, we are also responsible for expressing our opinion
section 134(5) of the Act with respect to the preparation of these on whether the Company has adequate internal financial
standalone financial statements that give a true and fair view controls system in place and the operating effectiveness
of the financial position, financial performance including other of such controls.
comprehensive income, cash flows and changes in equity of the • Evaluate the appropriateness of accounting policies used
Company in accordance with the Ind AS and other accounting and the reasonableness of accounting estimates and
principles generally accepted in India. This responsibility also related disclosures made by the management.
includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding • Conclude on the appropriateness of management’s use of
the assets of the respective companies and for preventing the going concern basis of accounting and, based on the
and detecting frauds and other irregularities; selection and audit evidence obtained, whether a material uncertainty
application of appropriate accounting policies; making exists related to events or conditions that may cast
judgments and estimates that are reasonable and prudent; and significant doubt on the Company’s ability to continue as a
design, implementation and maintenance of adequate internal going concern. If we conclude that a material uncertainty
financial controls, that were operating effectively for ensuring exists, we are required to draw attention in our auditor’s
the accuracy and completeness of the accounting records, report to the related disclosures in the standalone financial
relevant to the preparation and presentation of the standalone statements or, if such disclosures are inadequate, to
financial statements that give a true and fair view and are free modify our opinion. Our conclusions are based on the
from material misstatement, whether due to fraud or error. audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause
In preparing the standalone financial statements, management the Company to cease to continue as a going concern.
is responsible for assessing the Company’s ability to continue • Evaluate the overall presentation, structure and content of the
as a going concern, disclosing, as applicable, matters related standalone financial statements, including the disclosures,
to going concern and using the going concern basis of and whether the standalone financial statements represent
accounting unless management either intends to liquidate the the underlying transactions and events in a manner that
Company or to cease operations, or has no realistic alternative achieves fair presentation.
but to do so.
Materiality is the magnitude of misstatements in the standalone
Those Board of Directors are also responsible for overseeing financial statements that, individually or in aggregate, makes
the Company’s financial reporting process. it probable that the economic decisions of a reasonably
knowledgeable user of the standalone financial statements
Auditor’s Responsibility for the Audit of the Standalone may be influenced. We consider quantitative materiality and
Financial Statements qualitative factors in (i) planning the scope of our audit work
Our objectives are to obtain reasonable assurance about and in evaluating the results of our work; and (ii) to evaluate
whether the standalone financial statements as a whole the effect of any identified misstatements in the standalone
are free from material misstatement, whether due to fraud financial statements.
or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, We communicate with those charged with governance
but is not a guarantee that an audit conducted in accordance regarding, among other matters, the planned scope and
with SAs will always detect a material misstatement when it timing of the audit and significant audit findings, including
exists. Misstatements can arise from fraud or error and are any significant deficiencies in internal control that we identify
considered material if, individually or in the aggregate, they during our audit.
could reasonably be expected to influence the economic
decisions of users taken on the basis of these standalone We also provide those charged with governance with a
financial statements. statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
As part of an audit in accordance with SAs, we exercise with them all relationships and other matters that may
professional judgment and maintain professional skepticism reasonably be thought to bear on our independence, and
throughout the audit. We also: where applicable, related safeguards.
• Identify and assess the risks of material misstatement of From the matters communicated with those charged with
the standalone financial statements, whether due to fraud governance, we determine those matters that were of most
or error, design and perform audit procedures responsive significance in the audit of the standalone financial statements
to those risks, and obtain audit evidence that is sufficient of the current period and are therefore the key audit matters.
and appropriate to provide a basis for our opinion. The We describe these matters in our auditor’s report unless law
risk of not detecting a material misstatement resulting or regulation precludes public disclosure about the matter or
from fraud is higher than for one resulting from error, as when, in extremely rare circumstances, we determine that a
fraud may involve collusion, forgery, intentional omissions, matter should not be communicated in our report because
misrepresentations, or the override of internal control. the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such
communication.

Report on Other Legal and Regulatory Requirements In our opinion and to the best of our information
1. As required by Section 143(3) of the Act, based on our and according to the explanations given to us, the
audit, we report to the extent applicable that: remuneration paid by the Company to its directors
during the year is in accordance with the provisions
a. We have sought and obtained all the information and of section 197 of the Act.
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit. h. With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of
b. In our opinion, proper books of account as required the Companies (Audit and Auditors) Rules, 2014,
by law have been kept by the Company and its joint as amended in our opinion and to the best of our
operation so far as it appears from our examination information and according to the explanations given
of those books. to us:
c. The Balance Sheet, the Statement of Profit and Loss i. The Company has disclosed the impact of
including Other Comprehensive Income, the Cash pending litigations on its financial position in
Flow Statement and Statement of Changes in Equity its standalone financial statements - Refer Note
dealt with by this Report are in agreement with the 48 to the standalone financial statements;
relevant books of account.
ii. The Company did not have any long-term
d. In our opinion, the aforesaid standalone financial contracts including derivative contracts for
statements comply with the Ind AS specified under which there were any material foreseeable
Section 133 of the Act. losses.
e. On the basis of the written representations received iii.

There has been no delay in transferring
from the directors as on 31st December, 2021 taken amounts, required to be transferred, to the
on record by the Board of Directors of the Company Investor Education and Protection Fund by the
and the report of the statutory auditors of its joint Company , on the basis of information available
operation, none of the directors of the Company with the Company.
and its joint operation is disqualified as on 31st
December, 2021 from being appointed as a director 2. As required by the Companies (Auditor’s Report) Order,
in terms of Section 164(2) of the Act. 2016 (“the Order”) issued by the Central Government in
terms of Section 143(11) of the Act, we give in “Annexure
f. With respect to the adequacy of the internal financial B” a statement on the matters specified in paragraphs 3
controls over financial reporting of the Company and and 4 of the Order.
the operating effectiveness of such controls, refer
to our separate Report in “Annexure A”. Our report For DELOITTE HASKINS & SELLS LLP
expresses an unmodified opinion on the adequacy Chartered Accountants
and operating effectiveness of the Company’s (Firm’s Registration No. 117366W / W-100018)
internal financial controls over financial reporting.
Saira Nainar
g. With respect to the other matters to be included (Partner)
in the Auditor’s Report in accordance with the (Membership No. 040081)
requirements of section 197(16) of the Act, as (UDIN: 22040081ACYPKH5174)
amended, Place : Mumbai
Date : 17th February, 2022

ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT
(Referred to in paragraph 1 (f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even
date on the Standalone financial statements of Ambuja Cements Limited as at and for the year ended 31st December, 2021)
REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL Our audit involves performing procedures to obtain audit
REPORTING UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION 143 OF evidence about the adequacy of the internal financial
THE COMPANIES ACT, 2013 (“THE ACT”) controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over
We have audited the internal financial controls over financial
financial reporting included obtaining an understanding of
reporting of Ambuja Cements Limited (“the Company”) as
internal financial controls over financial reporting, assessing
of 31st December, 2021 in conjunction with our audit of the
the risk that a material weakness exists, and testing and
standalone financial statements of the Company for the year
evaluating the design and operating effectiveness of internal
ended on that date.
control based on the assessed risk. The procedures selected
depend on the auditor’s judgement, including the assessment
Management’s Responsibility for Internal Financial of the risks of material misstatement of the financial statements,
Controls whether due to fraud or error.
The Company’s management is responsible for establishing
and maintaining internal financial controls based on the We believe that the audit evidence we have obtained is
internal control over financial reporting criteria established sufficient and appropriate to provide a basis for our audit
by the Company considering the essential components opinion on the Company’s internal financial controls system
of internal control stated in the Guidance Note on Audit of over financial reporting.
Internal Financial Controls Over Financial Reporting issued
by the Institute of Chartered Accountants of India. These Meaning of Internal Financial Controls Over Financial
responsibilities include the design, implementation and Reporting
maintenance of adequate internal financial controls that were
A company’s internal financial control over financial reporting is
operating effectively for ensuring the orderly and efficient
a process designed to provide reasonable assurance regarding
conduct of its business, including adherence to the Company’s
the reliability of financial reporting and the preparation of
policies, the safeguarding of its assets, the prevention and
financial statements for external purposes in accordance
detection of frauds and errors, the accuracy and completeness
with generally accepted accounting principles. A company’s
of the accounting records, and the timely preparation of
internal financial control over financial reporting includes those
reliable financial information, as required under the Companies
policies and procedures that (1) pertain to the maintenance
Act, 2013.
of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the
Auditor’s Responsibility Company; (2) provide reasonable assurance that transactions
Our responsibility is to express an opinion on the Company’s are recorded as necessary to permit preparation of financial
internal financial controls over financial reporting of the statements in accordance with generally accepted accounting
Company based on our audit. We conducted our audit in principles, and that receipts and expenditures of the Company
accordance with the Guidance Note on Audit of Internal are being made only in accordance with authorisations
Financial Controls Over Financial Reporting (the “Guidance of management and directors of the Company; and (3)
Note”) issued by the Institute of Chartered Accountants provide reasonable assurance regarding prevention or timely
of India and the Standards on Auditing prescribed under detection of unauthorised acquisition, use, or disposition of
Section 143(10) of the Companies Act, 2013, to the extent the Company’s assets that could have a material effect on the
applicable to an audit of internal financial controls. Those financial statements.
Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit to Inherent Limitations of Internal Financial Controls Over
obtain reasonable assurance about whether adequate internal Financial Reporting
financial controls over financial reporting was established
Because of the inherent limitations of internal financial controls
and maintained and if such controls operated effectively in all
over financial reporting, including the possibility of collusion
material respects.
or improper management override of controls, material
misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal
financial controls over financial reporting to future periods
are subject to the risk that the internal financial control over
financial reporting may become inadequate because of
changes in conditions, or that the degree of compliance with
the policies or procedures may deteriorate.

Opinion For DELOITTE HASKINS & SELLS LLP

Chartered Accountants
In our opinion, to the best of our information and according to
(Firm’s Registration No. 117366W / W-100018)
the explanations given to us, the Company has, in all material
respects, an adequate internal financial controls system
Saira Nainar
over financial reporting and such internal financial controls
(Partner)
over financial reporting were operating effectively as at 31st
(Membership No. 040081)
December, 2021, based on the criteria for internal financial
(UDIN: 22040081ACYPKH5174)
control over financial reporting established by the Company
considering the essential components of internal control stated Place : Mumbai
in the Guidance Note on Audit of Internal Financial Controls Date : 17th February, 2022
Over Financial Reporting issued by the Institute of Chartered
Accountants of India.

ANNEXURE “B” TO THE INDEPENDENT AUDITOR’S REPORT
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even
date on the Standalone financial statements for the year ended 31st December, 2021 of Ambuja Cements Limited)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of
fixed assets.
(b) The Company has a programme of verification of fixed assets to cover all the items in a phased manner over a period
of two years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets.
Pursuant to the programme, certain fixed assets were physically verified by the Management during the year. According
to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) (i) In our opinion and according to the information and explanations given to us and the records examined by us and
based on the examination of the registered sale deed / transfer deed / conveyance deed / other relevant records
evidencing title of the company, we report that, the title deeds, comprising all the immovable properties of land
and buildings which are freehold other than self constructed assets included in property plant and equipment,
are held in the name of the Company as at the balance sheet date, except the following which are not held in
the name of the company as given below:
(` in Crore)
Particulars of the Gross block as at Net Block as at Total number
Remarks
land and building 31st December, 2021 31st December, 2021 of cases
Freehold land Title deeds are in the name of the wholly
owned subsidiary and entities taken over/
1.30 1.30 13 merged with the Company.
(ii) In respect of immovable properties of land and (vi) The maintenance of cost records has been specified
buildings that have been taken on lease and by the Central Government under section 148(1) of the
disclosed as property, plant and equipment’s / Companies Act, 2013 for manufacture of cement. We
right-of-use assets in the financial statements, have broadly reviewed the cost records maintained by
the lease agreements are in the name of the the Company pursuant to the Companies (Cost Records
Company, where the Company is the lessee in and Audit) Rules, 2014, as amended, prescribed by the
the agreement. Central Government under sub-section (1) of Section 148
of the Companies Act, 2013, and are of the opinion that,
(ii) As explained to us, the inventories were physically prima facie, the prescribed cost records have been made
verified during the year by the Management at reasonable and maintained. We have, however, not made a detailed
intervals and no material discrepancies were noticed on examination of the cost records with a view to determine
physical verification. whether they are accurate or complete.
(iii) The Company has not granted any loans, secured (vii) According to the information and explanations given to
or unsecured, to companies, firms, Limited Liability us, in respect of statutory dues:
Partnerships or other parties covered in the register
maintained under Section 189 of the Companies Act, (a)
The Company has generally been regular in
2013. depositing undisputed statutory dues, including
Provident Fund, Employees’ State Insurance,
(iv) In our opinion and according to the information and Income-tax, Goods and Service Tax (GST), Service
explanations given to us, the Company has not granted Tax, Customs Duty, Cess and other material statutory
any loans or provided guarantees to directors or dues applicable to it with the appropriate authorities.
companies in which directors are interested which are
covered under Section 185. In our opinion and according (b) There were no undisputed amounts payable in
to the information and explanations given to us, the respect of Provident Fund, Employees’ State
Company has complied with the provisions of Section Insurance, Income-tax, Goods and Service Tax
186 of the Companies Act, 2013 in respect of grant of (GST), Sales Tax, Service Tax, Customs Duty, Excise
loans, making investments and providing guarantees and Duty, Value Added Tax, Cess and other material
securities, as applicable. statutory dues in arrears as at 31st December, 2021
for a period of more than six months from the date
(v) According to the information and explanations given to they became payable.
us, the Company has not accepted any deposit during
the year. The Company does not have unclaimed deposits
as at 31st December, 2021 and accordingly, provisions of
Sections 73 to 76 or any other relevant provisions of the
Companies Act are not applicable to the Company.

(c) Details of dues of Income-tax, Sales Tax, Goods and Service Tax (GST), Service Tax, Customs Duty, Excise Duty
and Value Added Tax which have not been deposited as on 31st December, 2021 on account of disputes are given
below:
Forum where dispute is pending (` in Crore)

Period to which
Name of the Statute Nature of Dues the amount Appellate
High Supreme
relates Commisionerate authorities Total
Courts Court
and Tribunal
Central Sales Tax Demand of sales tax/ 1988-89 to
Act, 1956 and Additional purchase 2017-18
various State Sales tax, Interest and
Tax Acts Penalty 28.36 14.34 129.21 112.92 284.93
Customs Act, 1962 Demand of Customs 2000-01 to
Duty, interest and 2013-14
penalty 0.48 38.07 - - 38.55
Goods and Service Demand of GST 2018-19 to
Tax Act, 2017 2020-21 1.19 - - - 1.19
Central excise Act, Demand of Excise 1994-95 to
1944 duty, Denial of Cenvat 2017-18
Credit, Interest and
Penalty 8.99 18.60 0.18 2.06 29.83
Finance Act, 1994 Denial of service tax 2004-05 to
credit and penalty 2017-18 6.74 256.11 - - 262.85
Income Tax Act, Income tax and AY 2007-08 to
1961 Interest AY 2013-14 76.63 15.56 1.38 - 93.57
Amounts given above are net of amounts deposited.

(viii) In our opinion and according to the information and with Section 177 and 188 of the Companies Act, 2013,
explanations given to us, the Company has not defaulted where applicable, for all transactions with the related
in the repayment of loans or borrowings to government. parties and the details of related party transactions have
The Company did not have any outstanding loans or been disclosed in the financial statements etc. as required
borrowings in respect of a financial institution or bank or by the applicable accounting standards.
dues to debenture holders during the year.
(xiv) During the year the Company has not made any preferential
(ix) The Company has not raised moneys by way of initial allotment or private placement of shares or fully or partly
public offer or further public offer (including debt convertible debentures and hence reporting under clause
instruments) or term loans and hence reporting under (xiv) of CARO 2016 is not applicable to the Company.
clause (ix) of the CARO 2016 Order is not applicable.
(xv) In our opinion and according to the information and
(x) To the best of our knowledge and according to the explanations given to us, during the year the Company
information and explanations given to us, no fraud by has not entered into any non-cash transactions with
the Company and no material fraud on the Company by its directors or persons connected with him and hence
its officers or employees has been noticed or reported provisions of Section 192 of the Companies Act, 2013 are
during the year. not applicable to the Company.
(xi) In our opinion and according to the information and (xvi) T he Company is not required to be registered under
explanations given to us, the Company has paid / Section 45-IA of the Reserve Bank of India Act, 1934.
provided managerial remuneration in accordance with
the requisite approvals mandated by the provisions of For DELOITTE HASKINS & SELLS LLP
Section 197 read with Schedule V to the Companies Act, Chartered Accountants
2013. (Firm’s Registration No. 117366W/W-100018)
(xii) T he Company is not a Nidhi Company and hence Saira Nainar

reporting under clause (xii) of the CARO 2016 Order is Partner
not applicable. (Membership No. 040081)
(UDIN: 22040081ACYPKH5174)
(xiii) In our opinion and according to the information and Place : Mumbai
explanations given to us, the Company is in compliance Date : 17th February, 2022

Balance Sheet
as at 31st December 2021
As at As at
Particulars Notes 31st December 2021 31st December 2020
` in crore ` in crore
ASSETS
1 Non-current assets
a) Property, plant and equipment 4 7,128.30 5,382.88
b) Right-of-use assets 5 343.26 373.98
c) Capital work-in-progress (Refer Note 4(g)) 951.32 1,873.74
d) Goodwill 6 - -
e) Other intangible assets 7 174.15 174.64
f) Investments in subsidiaries and joint venture 9 11,787.71 11,787.71
g) Financial assets
i) Investments 10 9.20 4.50
ii) Loans 11 1.52 0.94
iii) Other financial assets 12 338.79 613.33
h) Non-current tax assets (net) (Refer Note 30) 118.58 152.19
i) Other non-current assets 13 545.94 686.66
Total - Non-current assets 21,398.77 21,050.57
2 Current assets
a) Inventories 14 1,463.57 746.61
b) Financial assets
i) Trade receivables 15 293.17 191.51
ii) Cash and cash equivalents 16 3,984.70 2,716.91
iii) Bank balances other than cash and cash equivalents 17 178.37 207.43
iv) Loans 18 4.76 4.43
v) Other financial assets 19 204.89 78.82
c) Other current assets 20 620.46 460.35
6,749.92 4,406.06
d) Non-current assets classified as held for sale 21 24.75 24.75
Total - Current assets 6,774.67 4,430.81
TOTAL - ASSETS 28,173.44 25,481.38
EQUITY AND LIABILITIES
Equity
a) Equity share capital 22 397.13 397.13
b) Other equity 25 21,810.13 19,918.73
Total Equity 22,207.26 20,315.86
Liabilities
1 Non-current liabilities
a) Financial liabilities
i) Borrowings 26 43.50 43.60
ii) Lease liability 27 261.15 296.64
iii) Other financial liabilities 28 0.13 0.13
b) Provisions 29 65.12 55.62
c) Deferred tax liabilities (net) 30 201.79 185.95
d) Other non-current liabilities 32 36.74 40.05
Total - Non-current liabilities 608.43 621.99
2 Current liabilities
i) Trade payables
Total outstanding dues of micro and small enterprises 33 7.57 2.46
Total outstanding dues of creditors other than micro and small enterprises 1,136.83 878.44
ii) Lease liability (Refer Note 52) 42.90 27.88
ii) Other financial liabilities 34 879.24 737.77
b) Other current liabilities 35 2,040.12 1,911.97
c) Provisions 36 8.92 3.85
d) Current tax liabilities (net) (Refer Note 30) 1,242.17 981.16
Total - Current liabilities 5,357.75 4,543.53
Total Liabilities 5,966.18 5,165.52
TOTAL - EQUITY AND LIABILITIES 28,173.44 25,481.38
The accompanying notes are integral part of the Standalone Financial Statements
In terms of our report attached

For DELOITTE HASKINS & SELLS LLP For and on behalf of the Board of Directors
ICAI Firm Registration No. 117366W/W-100018 Rajani Kesari N.S. Sekhsaria Rajendra P. Chitale
DIN - 00276351 DIN - 00015986
Saira Nainar Rajiv Gandhi Martin Kriegner Neeraj Akhoury

Partner Company Secretary Director Managing Director &
Membership Number : 040081 DIN - 00077715 Chief Executive Officer
DIN - 07419090
Mumbai : 17th February 2022

Statement of Profit and Loss

for the year ended 31st December 2021
For the year ended For the year ended

1 Income
a) Revenue from operations 37 13,964.95 11,371.86
b) Other income 38 285.64 372.00
Total Income 14,250.59 11,743.86
2 Expenses
a) Cost of materials consumed 39 1,134.25 874.88
b) Purchase of stock-in-trade 40 381.39 197.31
c) Changes in inventories of finished goods, work-in progress and stock-in-trade 41 (356.13) 114.08
d) Employee benefits expense 42 677.65 668.78
e) Finance costs 43 90.94 83.05
f) Depreciation and amortisation expense 44 551.24 521.17
g) Power and fuel 3,421.01 2,251.91
h) Freight and forwarding expense 45 3,308.33 2,854.88
i) Other expenses 46 2,211.15 1,784.54
11,419.83 9,350.60
j) Self consumption of cement (20.18) (21.12)
Total Expenses 11,399.65 9,329.48
3 Profit before tax (1-2) 2,850.94 2,414.38
4 Exceptional items 59 65.69 -
6 Tax expense 31
a) Deferred tax charge / (credit) 690.79 652.04
b) Deferred tax - (credit) 13.92 (27.76)
704.71 624.28
7 Profit for the year (5-6) 2,080.54 1,790.10
8 Other comprehensive income
Items not to be reclassified to profit or loss in subsequent periods
Remeasurement gains / (losses) on defined benefit plans 7.51 (9.32)
Tax expenses on above (1.92) 2.35
Total other comprehensive income 5.59 (6.97)
9 Total comprehensive income for the year (7+8) 2,086.13 1,783.13
10 Earnings per share of ` 2 each - in ` 47
Basic 10.48 9.02
Diluted 10.48 9.01

DIN - 00276351 DIN - 00015986

DIN - 07419090

Statement of Changes in Equity
As at As at
A) Equity share capital 22
Opening balance 397.13 397.13
Changes during the year - -
Closing balance 397.13 397.13
Reserves and surplus (Refer Note 25)

Capital Capital
Capital Securities General Retained
Particulars redemption Subsidies contribution Total
reserve premium reserve earnings
reserve from parent
` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore
B) Other equity
Balance as at 1st January 2021 130.71 12,471.07 5,655.83 9.93 5.02 1.53 1,644.64 19,918.73
Profit for the year - - - - - - 2,080.54 2,080.54
Other comprehensive income
(net of tax expenses) - - - - - - 5.59 5.59
Total comprehensive income for the year - - - - - - 2,086.13 2,086.13
Share based payment (Refer Note 49) - - - - - 3.83 - 3.83
Final equity dividend paid for the year 2020
(Refer Note 24) - - - - - - (198.56) (198.56)
Balance as at 31st December 2021 130.71 12,471.07 5,655.83 9.93 5.02 5.36 3,532.21 21,810.13

Capital Capital
Capital Securities General Retained
Particulars redemption Subsidies contribution Total
reserve premium reserve earnings
reserve from parent
` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore
B) Other equity
Balance as at 1st January 2020 130.71 12,471.07 5,655.83 9.93 5.02 0.53 3,534.96 21,808.05
Profit for the year - - - - - - 1,790.10 1,790.10
Other comprehensive income
(net of tax expenses) - - - - - - (6.97) (6.97)
Total comprehensive income for the year - - - - - - 1,783.13 1,783.13
Share based payment (Refer Note 49) - - - - - 1.00 - 1.00
(Refer Note 24) - - - - - - (297.85) (297.85)
Interim equity dividend paid for the year 2020
(Refer Note 24) - - - - - - (3,375.60) (3,375.60)
Balance as at 31st December 2020 130.71 12,471.07 5,655.83 9.93 5.02 1.53 1,644.64 19,918.73

DIN - 00276351 DIN - 00015986

DIN - 07419090

Cash Flow Statement


A) Cash flows from operating activities
Profit before tax 2,785.25 2,414.38
Adjustments to reconcile profit before tax to net cash flows
Depreciation and amortisation expense 44 551.24 521.17
Exceptional Item 59 65.69 -
Loss on property, plant and equipment sold, discarded and written off (net) 25.09 21.82
Dividend income from subsidiary 38 (131.58) (131.58)
Dividend income from joint venture 38 (2.75) (2.50)
Gain on sale of current financial assets measured at fair value through profit
and loss 38 (8.26) (10.82)
Net gain on fair valuation of liquid mutual fund measured at fair value through
profit and loss 38 (0.10) (0.31)
Unwinding of discounting charge on interest free sales tax loan 43 3.34 3.18
Finance costs 43 87.60 79.87
Interest income (113.54) (219.97)
Provision for slow and non moving store and spares (net) 23.03 17.38
Discounting income on interest free loan - (3.25)
Unrealised exchange loss (net) 2.46 7.95
Fair value movement in derivative instruments 5.92 1.02
Interest on tax written back - (5.77)
Provisions no longer required written back 37 (11.07) (6.06)
Impairment loss/ (Reversal) on trade receivable (net) 2.08 15.21
Compensation Expenses under Employees Stock Options Scheme 49 3.83 1.00
Inventories written off 2.40 1.66
Profit on buy back of shares of joint venture - (0.94)
Other non-cash items (0.02) (0.05)
Operating profit before working capital changes 3,290.61 2,703.39
Changes in Working Capital
Adjustments for Decrease / (Increase) in operating assets
Decrease / (Increase) in Trade receivables, loans & advances and other assets 11-13, 15,
17-20 (98.88) 262.00
Decrease / (Increase) in Inventories 14 (742.39) 188.42
Adjustments for (Decrease) / Increase in operating liabilities
Increase / (Decrease) in Trade payables, other liabilities and provisions 26-30,
32-36 379.78 (82.79)
Cash generated from operations 2,829.12 3,071.02
Direct taxes paid (net of refunds) (Refer Note (1) below) (362.86) (464.84)
Net cash flow from operating activities (A) 2,466.26 2,606.18
B) Cash flows from investing activities
Purchase of property, plant and equipment, intangibles etc. (including capital work
in progress and capital advances) (1,160.07) (985.47)
Proceeds from sale of property, plant and equipment 17.60 7.65
Proceeds from buyback of shares of joint venture - 2.24
Inter corporate deposits and loans given to subsidiaries (0.01) (0.15)
Gain on sale of current financial assets measured at fair value through
profit and loss 8.26 10.82
Investments in bank deposits (having original maturity of more than 3 months and
upto 12 months) (5,457.58) (8,200.67)
Redemption of bank deposits (having original maturity of more than 3 months and
upto 12 months) 5,483.10 8,189.28
Investments in bank deposits (having original maturity of more than 12 months) (10.81) (27.84)
Redemption of bank deposits (having original maturity of more than 12 months) 0.98 19.02
Purchase of non current investment (4.70) (4.50)
Dividend received from subsidiary 38 131.58 131.58
Dividend received from joint venture 38 2.75 2.50
Interest received 107.15 214.11
Net cash used in investing activities (B) (881.75) (641.43)

Cash Flow Statement

C) Cash flows from financing activities
Proceeds from non-current borrowings - 8.47
Repayment of current maturity of non-current borrowings - (5.86)
Repayment of lease liability 52 (27.46) (26.26)
Interest portion of lease repayment 43 (15.22) (16.81)
Interest paid (75.58) (46.53)
Net movement in earmarked balances with banks 3.54 (8.84)
Dividend paid on equity shares (202.10) (3,664.61)
Net cash used in financing activities (C) (316.82) (3,760.44)
Net increase / (decrease) in cash and cash equivalents (A + B + C) 1,267.69 (1,795.69)
Cash and cash equivalents
Cash and cash equivalents at the end of the year 16 3,984.70 2,716.91
Adjustment for fair value (gain) / loss on liquid mutual funds measured through
3,984.60 2,716.60
Cash and cash equivalents at the beginning of the year 16 2,716.91 4,512.29
Net increase / (decrease) in cash and cash equivalents 1,267.69 (1,795.69)
Notes:
1) Direct taxes paid are treated as arising from operating activities and are not bifurcated between investing and financing
activities.
2) The above Cash Flow Statement has been prepared under the “Indirect Method” as set out in the Indian Accounting
Standard (Ind AS-7) “Statement of Cash Flow”.
3) Changes in liabilities arising from financing activities :
Cash flow changes Non-cash flow changes

As at 31st As at 31st
December 2020 Unwinding Other December 2021
Particulars Receipts Payments
charges changes
` in crore ` in crore ` in crore ` in crore ` in crore ` in crore
Non-current borrowings
(Refer note 26) 43.60 - - 3.34 (3.44) 43.50
Current maturities of non-
current borrowings
(Refer note 34) - - - - 3.44 3.44
Total 43.60 - - 3.34 - 46.94

DIN - 00276351 DIN - 00015986

DIN - 07419090

Notes to Financial Statements
1. Corporate Information 3. Significant accounting policies

Ambuja Cements Limited (the Company) is a public A. Property, plant and equipment
company domiciled in India and is incorporated under the I. Property, plant and equipment are stated at their
provisions of the Companies Act applicable in India. Its cost of acquisition / installation / construction net of
shares are listed on National Stock Exchange (NSE) and accumulated depreciation, and impairment losses,
Bombay Stock Exchange (BSE) in India and its GDRs are if any, except freehold non-mining land which is
listed under the EURO Multilateral Trading Facility (MTF) carried at cost less impairment losses. Subsequent
Platform of Luxembourg Stock Exchange. The registered expenditures are included in the asset’s carrying
office of the Company is located at Ambujanagar, Taluka amount or recognised as a separate asset, as
Kodinar, Dist. Gir Somnath, Gujarat. appropriate, only when it is probable that future
The Company’s principal activity is to manufacture and economic benefits associated with the item will
market cement and cement related products. flow to the Company and the cost of the item can
be measured reliably. When significant parts of
2. Basis of preparation plant and equipment are required to be replaced at
intervals, the Company depreciates them separately
The financial statements of the Company have been
based on their specific useful lives. Likewise, when a
prepared in accordance with Indian Accounting Standards
major inspection is performed, its cost is recognised
(Ind AS) notified under section 133 of the Companies Act,
in the carrying amount of the plant and equipment as
2013 (“the Act”) read with Rule 3 of the Companies (Indian
a replacement if the recognition criteria are satisfied.
Accounting Standards) Rules, 2015 and Companies
All other repairs and maintenance are charged to
(Indian Accounting Standards) Amendment Rules, 2016.
the statement of profit and loss during the reporting
These standalone financial statements were approved for period in which they are incurred. The present value
issue in accordance with the resolution of the Board of of the expected cost for the decommissioning
Directors on 17th February 2022. of an asset after its use is included in the cost of
the respective asset if the recognition criteria for
The financial statements have been prepared on a
provisions are met.
historical cost basis, except for the following:
II. Spares which meet the definition of property, plant
A. Certain financial assets and liabilities are measured
and equipment are capitalised as on the date of
at fair value (refer note 3 (I) for accounting policy on
acquisition. The corresponding old spares are
financial instruments).
decapitalised on such date with consequent impact
B. Non-current assets classified as held for sale are in the statement of profit and loss.
measured at the lower of carrying amount and fair
III. Property, plant and equipment not ready for their
value less cost to sell.
intended use as on the balance sheet date are
C. Employee defined benefit plans, recognised at the disclosed as “Capital work-in-progress”. Such
net total of the fair value of plan assets and the items are classified to the appropriate category of
present value of the defined benefit obligation. property, plant and equipment when completed
and ready for their intended use. Advances given
D. Employee share based payments measured at fair
towards acquisition / construction of property, plant
value.
and equipment outstanding at each balance sheet
Historical cost is generally based on the fair value of the date are disclosed as Capital Advances under “Other
consideration given in exchange for goods and services non-current assets”.
at the time of their acquisition.
IV. An item of property, plant and equipment and
The accounting policies are applied consistently to all the any significant part thereof is derecognised upon
periods presented in the financial statements. disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss
Functional and Presentation Currency
arising on derecognition of the asset (calculated as
Financial statements are presented in Indian Rupees (`), the difference between the net disposal proceeds
which is the functional currency of the Company. and the carrying amount of the asset) is included in
the statement of profit and loss in “other income /
Rounding of amounts (expenses)” when the asset is derecognised.
All the values are rounded to the nearest crore as per the
requirement of Schedule III to the Companies Act, 2013,
except where otherwise indicated.

B. Depreciation on property, plant and equipment VII. In respect of an asset for which impairment loss,
I. Depreciation is provided as per the useful life of if any, is recognised, depreciation is provided on
assets which are determined based on technical the revised carrying amount of the asset over its
parameters / assessment. Depreciation is calculated remaining useful life.
using “Written down value method” for assets VIII. Property, plant and equipment, constructed by the
related to Captive Power Plant and using “Straight Company, but ownership of which vests with the
line method” for other assets. Estimated useful lives Government / Local authorities:
of the assets are as follows:
a. Expenditure on Power lines is depreciated over
Assets Useful Life the period as permitted in the Electricity Supply
Land (freehold) No depreciation except on Act, 1948 / 2003 as applicable.
land with mineral reserves.
Cost of mineral reserves b. Expenditure on Marine structures is depreciated
embedded in the cost of over the period of the agreement.
freehold mining land is
C. Intangible assets
depreciated in proportion of
actual quantity of minerals I. Intangible assets acquired separately are measured
extracted to the estimated on initial recognition at cost. The cost of intangible
quantity of extractable mineral assets acquired in a business combination is their
reserves fair value at the date of acquisition. Following initial
Leasehold mining land Amortised over the period of recognition, intangible assets are carried at cost less
lease any accumulated amortisation and accumulated
Buildings, roads and water 30 – 60 years impairment losses, if any.
works
Plant and equipment 10 – 25 years
II. The useful lives of intangible assets are assessed as
either finite or indefinite.
Assets related to Captive 40 years
Power Plant III. Intangible assets with finite lives are amortised
Railway sidings and 15 years over the useful economic life and assessed for
locomotives impairment whenever there is an indication that the
Furniture, office 3 – 10 years intangible asset may be impaired. The amortisation
equipment and tools period and the amortisation method for an intangible
Vehicles 8 – 10 years asset with a finite useful life are reviewed during
Ships 25 years each reporting period. Changes in the expected
useful life or the expected pattern of consumption
The useful life as estimated above is also in line with of future economic benefits embodied in the asset
the prescribed useful life estimates as specified are considered to modify the amortisation period or
under Schedule II to the Act. method, as appropriate, and are treated as changes
II. The residual values, useful lives and methods of in accounting estimates. The amortisation expense
depreciation of property, plant and equipment are on intangible assets with finite lives is recognised
reviewed during each financial year and adjusted in the statement of profit and loss unless such
prospectively, if appropriate. expenditure forms part of carrying value of another
asset.
III. The Company identifies and determines cost of
each component / part of the asset separately, if the IV. Intangible assets with indefinite useful lives are not
component / part have a cost, which is significant to amortised, but are tested for impairment annually,
the total cost of the asset and has a useful life that is either individually or at the cash-generating unit level.
materially different from that of the remaining asset. The assessment of indefinite life is reviewed annually
to determine whether the indefinite life continues to
IV. Depreciation on additions to property, plant and be supportable. If not, the change in useful life from
equipment is provided on a pro-rata basis from the indefinite to finite is made on a prospective basis.
date of acquisition, or installation, or construction,
when the asset is ready for intended use. An intangible asset is derecognised on disposal,
or when no future economic benefits are expected
V. Depreciation on an item of property, plant and from its use or disposal. Gains or losses arising
equipment sold, discarded, demolished or scrapped, from derecognition of an intangible asset, if any,
is provided upto the date on which the said asset is are measured as the difference between the net
sold, discarded, demolished or scrapped. disposal proceeds and the carrying amount of the
VI. Capitalised spares are depreciated over their own asset and are recognised in the statement of profit
estimated useful life or the estimated useful life of and loss when the asset is derecognised.
the parent asset whichever is lower.

Stripping Cost F. Inventories

Stripping costs incurred during the mining production Inventories are valued after providing for obsolescence,
phase are allocated between the cost of inventory as follows:
produced and the existing mine asset.
I. Raw materials, stores and spare parts, fuel and
Stripping costs are allocated and included as a packing material:
component of the mine asset when they represent Valued at lower of cost and net realisable value. Cost
significantly improved access to limestone, provided includes purchase price, other costs incurred in
all the following conditions are met: bringing the inventories to their present location and
i. it is probable that the future economic benefit condition, and taxes for which credit is not available.
associated with the stripping activity will be However, materials and other items held for use in
realised; the production of inventories are not written down
below cost if the finished products in which they will
ii. the component of the limestone body for which be incorporated are expected to be sold at or above
access has been improved can be identified; cost. Cost is determined on a moving weighted
and average basis.
iii. the costs relating to the stripping activity II. Work-in-progress, finished goods and stock in
associated with the improved access can be trade:
reliably measured.
Valued at lower of cost and net realisable value. Cost
D. Amortisation of intangible assets includes direct materials and labour and a proportion
A summary of the policies applied to the Company’s of manufacturing overheads based on normal
intangible assets is, as follows: operating capacity, but excluding borrowing costs.
Cost of Stock-in-trade includes cost of purchase and
Intangible assets Useful life Amortisation method used other cost incurred in bringing the inventories to the
Water drawing Finite Amortised on a straight-line present location and condition. Cost is determined
rights (10-30 years) basis over the useful life on a monthly moving weighted average basis.
Computer Finite Amortised on a straight-line
Net realisable value is the estimated selling price
software (upto 5 years) basis over the useful life
in the ordinary course of business, less estimated
Mining Rights Finite Over the period of the respective
costs of completion and estimated costs necessary
(0-90 years) mining agreement
to make the sale.
E. Impairment of non-financial assets
G.
Investment in subsidiaries, associates and joint
The carrying amounts of other non-financial assets, other arrangements
than inventories and deferred tax assets are reviewed
I. Subsidiaries
at each balance sheet date if there is any indication
of impairment based on internal / external factors. An Subsidiaries are entities that are controlled by the
impairment loss, if any, is recognised in the statement of Company. The Company controls an entity when
profit and loss wherever the carrying amount of an asset the Company is exposed, or has rights, to variable
exceeds its recoverable amount. The recoverable amount returns from its involvement with the entity and has
is the higher of the asset’s fair value less cost of disposal the ability to affect those returns through its power
and value in use. In cases, where it is not possible to over the investee. Investments in subsidiaries are
estimate the recoverable amount of an individual non- accounted at cost less impairment, if any.
financial asset, the Company estimates the recoverable II. Associates
amount for the smallest cash generating unit to which
Associates are all entities over which the Company
the non-financial asset belongs. In assessing value in
has significant influence. Significant influence is the
use, the estimated future cash flows are discounted to
power to participate in the financial and operating
their present value using a pre-tax discount rate that
policy decisions of the investee, but is not control or
reflects current market assessments of the time value
joint control over those policies. This is generally the
of money and risks specific to the assets. A previously
case where the Company holds between 20% and
recognised impairment loss, if any, is increased or
50% of the voting rights. Investments in associates
reversed depending on the changes in circumstances,
are accounted at cost less impairment, if any.
however, the carrying value after reversal is not increased
beyond the carrying value that would have prevailed by
charging usual depreciation / amortisation if there was no
impairment.

III. Joint Arrangements H. Fair value measurement

Interests in joint arrangements are interests over The Company measures some of its financial instruments
which the Company exercises joint control and are at fair value at each balance sheet date.
classified as either joint operations or joint ventures
Fair value is the price that would be received to sell an
depending on the contractual rights and obligations
asset or paid to transfer a liability in an orderly transaction
arising from the agreement rather than the legal
between market participants at the measurement date.
structure of the joint arrangement.
All assets and liabilities for which fair value is measured
a. Joint operations
or disclosed in the financial statements are categorised
A joint operation is a joint arrangement within the fair value hierarchy, described as follows, based
whereby the parties that have joint control of on the lowest level input that is significant to the fair value
the arrangement have rights to the assets, and measurement as a whole:
obligations for the liabilities, relating to the
arrangement. Joint control is the contractually I. Level 1 — Quoted (unadjusted) market prices in
agreed sharing of control of an arrangement, active markets for identical assets or liabilities.
which exists only when decisions about the II. Level 2 — Valuation techniques for which the
relevant activities require unanimous consent lowest level input that is significant to the fair value
of the parties sharing control. If the interest is measurement is directly or indirectly observable.
classified as a joint operation, the Company
recognises its share of the assets, liabilities, III. Level 3 — Valuation techniques for which the
revenues and expenses in the joint operation lowest level input that is significant to the fair value
in accordance with the relevant Ind AS. measurement is unobservable.
When the Company transacts with a joint I. Financial instruments

operation in which the Company is a Joint A financial instrument is any contract that gives rise to
operator (such as a sale or contribution of a financial asset of one entity and a financial liability or
assets), the Company is considered to be equity instrument of another entity. Financial assets and
conducting the transaction with the other parties financial liabilities are initially measured at fair value.
to the joint operation, and gains and losses Transaction costs that are directly attributable to the
resulting from the transactions are recognised acquisition or issue of financial assets and financial
in the company’s financial statements only to liabilities (other than financial assets and financial
the extent of other parties’ interests in the joint liabilities at fair value through the statement of profit and
operation. loss) are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate, on
When the Company transacts with a joint
initial recognition. Transaction costs directly attributable
operation in which the Company is a joint
to the acquisition of financial assets or financial liabilities
operator (such as a purchase of assets) the
at fair value through the statement of profit and loss are
Company does not recognise its share of the
recognised immediately in the statement of profit and
gains and losses until it resells those assets to
loss.
a third party.
I. Financial assets
b. Joint venture
a. The Company’s financial assets comprise:
A joint venture is a joint arrangement whereby
the parties that have joint control of the i. Current financial assets mainly consist of
arrangement have rights to the net assets trade receivables, investments in liquid
of the joint arrangement. Joint control is the mutual funds, cash and bank balances,
contractually agreed sharing of control of an fixed deposits with banks and financial
arrangement, which exists only when decisions institutions, incentive receivable from
about the relevant activities require unanimous Government and other current receivables.
consent of the parties sharing control. Interests ii. Non-current financial assets mainly consist
in joint ventures are accounted at cost less of financial investments in equity, bond and
impairment, if any. fixed deposits, non-current receivables
from related party and employees,
incentives receivable from Government,
and non-current deposits.

b.
Initial recognition and measurement of After initial measurement, such financial
financial assets assets are subsequently measured at
The Company recognises a financial asset when amortised cost using the effective interest
it becomes party to the contractual provisions rate (EIR) method. The EIR amortisation is
of the instrument. included in other income in the statement
of profit and loss. The losses arising from
All financial assets are recognised initially at impairment, if any are recognised in the
fair value, plus in the case of financial assets statement of profit and loss.
not recorded at fair value through profit or loss,
transaction costs that are attributable to the The effective interest rate method is a
acquisition of the financial asset. All regular method of calculating the amortised cost
way purchases or sales of financial assets are of a debt instrument and of allocating
recognised and derecognised on a trade date interest income over the relevant period.
basis, i.e. the date that the Company commits The effective interest rate is the rate that
to purchase or sell the asset. exactly discounts estimated future cash
receipts (including all fees and points paid
Regular way purchases or sales are purchases or received that form an integral part of the
or sales of financial assets that require delivery effective interest rate, transaction costs
of assets within the time frame established by and other premiums or discounts) through
regulation or convention in the marketplace. the expected life of the debt instrument, or,
c.
Subsequent measurement of financial where appropriate, a shorter period, to the
assets net carrying amount on initial recognition.
For purposes of subsequent measurement, ii. Debt instruments at fair value through
financial assets are classified in the following other comprehensive income (FVTOCI)
categories: A debt instrument is classified as at the
FVTOCI if both of the following criteria are
i. Financial assets at amortised cost
met:
A Financial asset is measured at the
amortised cost if both the following • The objective of the business model is
conditions are met: achieved both by collecting contractual
cash flows and selling the financial
• The asset is held within a business
assets, and
model whose objective is to hold assets
for collecting contractual cash flows, • The asset’s contractual cash flows
and represent SPPI.
• Contractual terms of the asset give rise Debt instruments included within the
on specified dates to cash flows that FVTOCI category are measured initially as
are solely payments of principal and well as at each reporting date at fair value.
interest (SPPI) on the principal amount Fair value movements are recognised in
outstanding. the other comprehensive income (OCI).
However, the Company recognises
Financial assets at amortised cost category
interest income, impairment losses and
is the most relevant to the Company. It
reversals and foreign exchange gain or
comprises of current financial assets
loss in the statement of profit and loss.
such as trade receivables, cash and
On de-recognition of the asset, cumulative
bank balances, fixed deposits with bank
gain or loss previously recognised in OCI
and financial institutions, other current
is reclassified from equity to the statement
receivables and non-current financial
of profit and loss. Interest earned whilst
assets such as financial investments –
holding FV TOCI debt instrument is
bonds and fixed deposits, non-current
reported as interest income using the EIR
receivables and deposits.
method.

iii. Debt instruments, liquid mutual funds, d. Derivative Financial Instruments

derivatives and equity instruments at The Company uses derivative financial
fair value through the statement of profit instruments, such as forward currency
and loss (FVTPL) contracts to hedge its foreign currency risk.
Debt instruments Such derivative financial instruments are initially
FVTPL is a residual category for debt recognised at fair value on the date on which
instruments. Any debt instrument, which a derivative contract is entered into and are
does not meet the criteria for classification subsequently re-measured at fair value at the
as at amortised cost or as fair value end of each reporting period. Any changes
through other comprehensive income therein are recognised in the Statement of Profit
(FVTOCI), is classified as FVTPL. and Loss unless the derivative is designated
and effective as a hedging instrument, in
Debt instruments that meet the FVTOCI
which event the timing of the recognition in
criteria, may be designated as at FVTPL
the Statement of Profit and Loss depends
as at initial recognition if such designation
on the nature of the hedging relationship and
reduces or eliminates a measurement or
the nature of the hedged item. Derivatives are
recognition inconsistency (referred to as
carried as financial assets when the fair value
‘accounting mismatch’). The Company
is positive and as financial liabilities when the
has not designated any debt instrument
fair value is negative.
at FVTPL.
The Company does not hold derivative financial
Debt instruments at FVTPL are measured
instruments for speculative purposes.
at fair value at the end of each reporting
period, with any gains and losses arising e. Derecognition of financial assets
on re-measurement are recognised in the A financial asset (or, where applicable, a part of
statement of profit and loss. a financial asset or part of a Company of similar
This category comprises investments in financial assets) is primarily derecognised
liquid mutual funds and derivatives. when:
Equity instruments i. The rights to receive cash flows from the

asset have expired, or
All equity investments in scope of Ind AS
109 “Financial Instruments” are measured ii.
The Company has transferred its
at FVTPL with all changes in fair value contractual rights to receive cash flows
recognised in the statement of profit and loss. from the asset or has assumed an
obligation to pay the received cash flows
The Company has designated its
in full without material delay to a third party
investments in equity instruments as
under a ‘pass-through’ arrangement; and
FVTPL category.
either (a) the Company has transferred
iv.
Equity instruments measured at fair substantially all the risks and rewards of
value through other comprehensive the asset, or (b) the Company has neither
income (FVTOCI) transferred nor retained substantially all
For all investments in equity instruments other the risks and rewards of the asset, but has
than held for trading, at initial recognition, transferred control of the asset.
the Company may make an irrevocable
On derecognition of a financial asset in
election to present in other comprehensive
its entirety, the difference between the
income subsequent changes in the fair
asset’s carrying amount and the sum of the
value. The Company makes such election
consideration received and receivable and
on an instrument-by-instrument basis.
the cumulative gain or loss that had been
If the Company decides to classify an recognised in other comprehensive income
equity instrument as at FVTOCI, then and accumulated in equity is recognised in the
all fair value changes on the instrument, statement of profit and loss if such gain or loss
excluding dividends, are recognised in the would have otherwise been recognised in the
OCI. There is no recycling of the amounts statement of profit and loss on disposal of that
from OCI to statement of profit and loss, financial asset.
even on sale of investment. However, the
Company may transfer the cumulative gain
or loss within equity.
The Company has not designated
investments in any equity instruments as
FVTOCI.

When the Company has transferred its rights to For recognition of impairment loss on other
receive cash flows from an asset or has entered financial assets and risk exposure, the
into a pass-through arrangement, it evaluates Company determines whether there has been a
if and to what extent it has retained the risks significant increase in the credit risk since initial
and rewards of ownership. When it has neither recognition. If credit risk has not increased
transferred nor retained substantially all of the significantly, 12-month ECL is used to provide
risks and rewards of the asset, nor transferred for impairment loss. However, if credit risk has
control of the asset, the Company continues to increased significantly, lifetime ECL is used.
recognise the transferred asset to the extent If in a subsequent period, credit quality of
of the Company’s continuing involvement. In the instrument improves such that there is no
that case, the Company also recognises an longer a significant increase in credit risk since
associated liability. The transferred asset and initial recognition, then the entity reverts to
the associated liability are measured on a basis recognising impairment loss allowance based
that reflects the rights and obligations that the on 12-month ECL.
Company has retained.
Lifetime ECL are the expected credit losses
On derecognition of a financial asset other than resulting from all possible default events over
in its entirety (e.g. when the Company retains an the expected life of a financial instrument. The
option to repurchase part of a transferred asset), 12-month ECL is a portion of the lifetime ECL
the Company allocates the previous carrying which results from default events that are possible
amount of the financial asset between the part within 12 months after the reporting date.
it continues to recognise under continuing
ECL is the difference between all contractual cash
involvement, and the part it no longer recognises
flows that are due to the Company in accordance
on the basis of the relative fair values of those
with the contract and all the cash flows that the
parts on the date of the transfer. The difference
entity expects to receive (i.e. all cash shortfalls)
between the carrying amount allocated to the
discounted at the original EIR. ECL impairment
part that is no longer recognised and the sum
loss allowance (or reversal) recognised during the
of the consideration received for the part no
period is recognised as income / expense in the
longer recognised and any cumulative gain or
statement of profit and loss.
loss allocated to it that had been recognised in
other comprehensive income is recognised in For financial assets measured as at amortised
the statement of profit and loss if such gain or cost, ECL is presented as an allowance, i.e. as
loss would have otherwise been recognised in an integral part of the measurement of those
the statement of profit and loss on disposal of assets in the balance sheet. The allowance
that financial asset. reduces the net carrying amount. Until the asset
meets write-off criteria, the Company does not
Continuing involvement that takes the form
reduce impairment allowance from the gross
of a guarantee over the transferred asset is
carrying amount.
measured at the lower of the original carrying
amount of the asset and the maximum amount II. Financial liabilities and equity instruments
of consideration that the Company could be Classification as debt or equity
required to repay.
Debt and equity instruments issued by the Company
f. Impairment of financial assets are classified as either financial liabilities or as equity
In accordance with Ind-AS 109, the Company in accordance with the substance of the contractual
applies expected credit loss (ECL) model for arrangements and the definitions of a financial
measurement and recognition of impairment liability and an equity instrument.
loss on financial assets which are measured at a. Equity instruments
amortised cost. An equity instrument is any contract that
The Company follows ‘simplified approach’ for evidences a residual interest in the assets of
recognition of impairment loss allowance on an entity after deducting all of its liabilities.
trade receivables resulting from transactions Equity instruments issued by the company are
within the scope of Ind-AS 115 “Revenue from recognised at the proceeds received, net of
Contracts with Customers”, if they do not direct issue costs.
contain a significant financing component. Repurchase of the Company’s own equity
The application of simplified approach does instruments is recognised and deducted directly
not require the Company to track changes in in equity. No gain or loss is recognised in the
credit risk. Rather, it recognises impairment statement of profit and loss on the purchase,
loss allowance based on lifetime ECLs at each sale, issue or cancellation of the Company’s
reporting date, right from initial recognition. own equity instruments.

b. Financial liabilities iv. Subsequent measurement of financial

i. The Company’s financial liabilities liabilities at fair value through profit or
comprise: loss (FVTPL)
• Non-current financial liabilities mainly The Company uses foreign exchange
consist of borrowings and liability for forward contracts as derivative financial
capital expenditure. instruments to manage its exposure to
interest rate and foreign exchange rate
• Current financial liabilities mainly
risks, Derivatives are initially recognised at
consist of trade payables, liability for
fair value at the date the derivative contracts
capital expenditure, security deposit
are entered into and are subsequently
from dealer, transporter and contractor,
remeasured to their fair value at the end
staff related, lease liabilities and other
of each reporting period. The resulting
payables.
gain or loss is recognised in the statement
ii. Initial recognition and measurement of profit and loss immediately unless the
The Company recognises a financial liability derivative is designated and effective as
in its balance sheet when it becomes a hedging instrument, in which event the
party to the contractual provisions of the timing of the recognition in the statement
instrument. of profit and loss depends on the nature
of the hedging relationship and the nature
All financial liabilities are recognised initially of the hedged item. Derivatives are carried
at fair value and, in the case of loans and as financial assets when the fair value is
borrowings and payables, net of directly positive and as financial liabilities when the
attributable transaction costs. fair value is negative.
Financial liabilities are classified, at initial The Company enters into derivative
recognition, as financial liabilities at fair financial instruments such as foreign
value through profit or loss or at amortised exchange forward contracts, to manage
cost (loans and borrowings, and payables) its exposure to foreign exchange rate risks.
as appropriate. The Company does not hold derivative
iii. Subsequent measurement of financial financial instruments for speculative
liabilities at amortised cost purposes.
Financial liabilities that are not held-for- v. Derecognition of financial liabilities
trading and are not designated as at A financial liability is derecognised when the
FVTPL are measured at amortised cost at obligation under the liability is discharged
the end of subsequent reporting periods. or cancelled or expired. When an existing
The carrying amounts of financial liabilities financial liability is replaced by another
that are subsequently measured at from the same lender on substantially
amortised cost are determined based on different terms, or the terms of an existing
the effective interest rate method. Interest liability are substantially modified, such
expense that is not capitalised as part of an exchange or modification is treated as
cost of an asset is included in the ‘Finance the derecognition of the original liability
costs’ line item. and the recognition of a new liability.
The effective interest rate method is a The difference in the respective carrying
method of calculating the amortised cost amounts is recognised in the statement of
of a financial liability and of allocating profit and loss.
interest expense over the relevant period. III. Offsetting of financial instruments
The effective interest rate is the rate that
Financial assets and financial liabilities are offset
exactly discounts estimated future cash
and the net amount is reported in the balance sheet
payments (including all fees and points
if there is a currently enforceable legal right to offset
paid or received that form an integral part
the recognised amounts and there is an intention to
of the effective interest rate, transaction
settle on a net basis, to realise the assets and settle
costs and other premiums or discounts)
the liabilities simultaneously.
through the expected life of the financial
liability, or (where appropriate) a shorter
period, to the net carrying amount on initial
recognition.

J. Provisions and contingencies K. Foreign exchange gains and losses

I. Provisions Foreign currency transactions are recorded at the rates
A provision is recognised for a present obligation of exchange prevailing on the date of transaction. Foreign
(legal or constructive) as a result of past events if it currency monetary items are reported using the closing
is probable that an outflow of resources embodying rate. Non-monetary items which are carried in terms
economic benefits will be required to settle the of historical cost denominated in a foreign currency
obligation and in respect of which a reliable estimate are reported using the exchange rate at the date of the
can be made. The amounts recognised as provisions transaction.
are determined based on best estimate of the amount Exchange differences arising on the settlement of
required to settle the obligation at the balance sheet monetary items at rates different from those at which
date. These estimates are reviewed at each balance they were initially recorded during the year or reported in
sheet date and adjusted to reflect the current best previous financial statements, are recognised as income
estimate. or expense in the year in which they arise.
If the effect of the time value of money is material, Investments in equity capital of overseas companies
provisions are discounted using a current pre- registered outside India are carried in the balance sheet
tax rate that reflects, when appropriate, the risks at the rates at which transactions have been executed.
specific to the liability. When discounting is used,
the increase in the provision due to the passage of L. Revenue recognition
time is recognised as a finance cost. Revenue is recognised on the basis of approved contracts
regarding the transfer of goods or services to a customer
Mines reclamation expenses
for an amount that reflects the consideration to which the
The Company provides for the expenses to reinstate entity expects to be entitled in exchange of those goods
the quarries used for mining. The total estimate or services.
of reclamation expenses is apportioned over the
estimate of mineral reserves and a provision is made I. Sale of goods
based on the minerals extracted during the year. Revenue from the sale of the Company core product
Cement is recognised when delivery has taken place
Mines reclamation expenses are incurred on an
and control of the goods has been transferred to
ongoing basis and until the closure of the mine.
the customer, and when there are no longer any
The actual expenses may vary based on the nature
unfulfilled obligations.
of reclamation and the estimate of reclamation
expenditure. The total estimate of restoration The customer obtains control of the goods when
expenses is reviewed periodically, on the basis of the significant risks and reward of products sold are
technical estimates. transferred according to the specific delivery term
that have been agreed with the customer.
II. Contingent liability
A contingent liability is a possible obligation that Revenue is measured at fair value of the
arises from the past events whose existence will be consideration received or receivable, after deduction
confirmed by the occurrence or non-occurrence of any discounts, price concessions, volume rebates
of one or more uncertain future events beyond the and any taxes or duties collected on behalf of the
control of the Company or a present obligation that government such as goods and services tax, etc.
is not recognised because it is not probable that Accumulated experience is used to estimate the
an outflow of resources will be required to settle provision for such discounts, price concessions and
the obligation. A contingent liability also arises rebates. Revenue is only recognised to the extent
in extremely rare cases where there is a liability that it is highly probable a significant reversal will not
that cannot be recognised because it cannot be occur.
measured reliably. The Company does not recognise No element of financing is deemed present as the
a contingent liability but discloses its existence in the sales are made with credit terms largely ranging
financial statements. between 30 days and 60 days depending on the
III. Contingent asset specific terms agreed to with customers concerned,
which is consistent with the market practice.
Contingent asset is not recognised in financial
statements since this may result in the recognition
of income that may never be realised. However,
when the realisation of income is virtually certain,
then the related asset is not a contingent asset and
is recognised.

Contract balances II. Defined benefit plan

Trade Receivables The Company’s gratuity fund scheme and post-
A trade receivable is recognised when the products employment benefit scheme are considered as
are delivered to a customer as this is the point in defined benefit plans. The Company’s liability is
time that the consideration becomes unconditional determined on the basis of an actuarial valuation
because only a passage of time is required before using the projected unit credit method as at the
the payment is due. balance sheet date.
Contract assets, which is a Company right to Employee benefit, in the form of contribution to
consideration that is conditional on something other provident fund managed by a trust set up by the
than the passage of time. Company, is charged to statement of profit and
loss for the year in which the employee renders the
Contract Liabilities
related service. The Company has an obligation to
Contract liability is a Company obligation to transfer
make good the shortfall, if any, between the return
goods or services to a customer which the entity
from the investment of the trust and interest rate
has already received consideration, relate mainly
notified by the Government of India. Such shortfall is
to advance payment from customers. Contract
recognised in the statement of profit and loss based
liabilities are recognised as revenue when the
on actuarial valuation.
company performs under the contract.
Past service costs are recognised in the statement
II. Rendering of services
of profit and loss on the earlier of:
Income from services rendered is recognised based
on agreements/arrangements with the customers as a. The date of the plan amendment or curtailment,
the services is performed and there are no unfulfilled and
obligations. b. The date that the Company recognises related
III. Interest income restructuring costs
Interest income from a financial asset is recognised The net interest cost is calculated by applying the
when it is probable that the economic benefits will discount rate to the net balance of the defined
flow to the Company and the amount of income can benefit obligation and the fair value of plan assets.
be measured reliably. Interest income is accrued on a The Company recognises the following changes in
time basis, by reference to the principal outstanding the net defined benefit obligation as an expense in
and at the effective interest rate applicable, which is the statement of profit and loss:
the rate that exactly discounts estimated future cash
a.
Service costs comprising current service
receipts through the expected life of the financial
costs, past-service costs, gains and losses on
asset to that asset’s net carrying amount on initial
curtailments and non-routine settlements; and
recognition.
b. Net interest expense or income
IV. Dividends
Dividend income is recognised when right to receive Re-measurements, comprising actuarial gains and
is established (provided that it is probable that the losses, the effect of the asset ceiling (if any), and
economic benefits will flow to the Company and the the return on plan assets (excluding net interest), are
amount of income can be measured reliably). recognised immediately in the balance sheet with a
corresponding debit or credit to retained earnings
M. Retirement and other employee benefits through OCI in the period in which they occur. Re-
I. Defined contribution plan measurements are not reclassified to the statement
Employee benefits in the form of contribution to of profit and loss in subsequent periods.
Superannuation Fund, Provident Fund managed III. Short term employee benefits
by Government Authorities, Employees State
a. Short term employee benefits that are expected
Insurance Corporation and Labour Welfare Fund
to be settled wholly within 12 months after
are considered as defined contribution plans and
the end of the period in which the employees
the same are charged to the statement of profit and
render the related service are recognised as
loss for the year in which the employee renders the
an expense at the undiscounted amount in the
related service.
statement of profit and loss of the year in which
the related service is rendered.

b. Accumulated Compensated absences, which VII. Employee share-based payments

are expected to be settled wholly within 12 The Ultimate holding Company of the Group
months after the end of the period in which operates various equity-settled performance share
the employees render the related service, plans. Senior executive of the Company received
are treated as short term employee benefits. remuneration in the form of share-based payments,
The Company measures the expected cost of whereby employee render service as consideration
such absences as the additional amount that for equity instruments (equity settled transactions).
it expects to pay as a result of the unused
entitlement that has accumulated at the The cost of equity-settled transactions is determined
reporting date. by the fair value at the date when the grant is made
using an appropriate valuation model.
IV. Other long-term employee benefits
The cost of equity settled transactions is recognised
Compensated absences are provided for on the
in the Statement of Profit and Loss, together with
basis of an actuarial valuation, using the projected
a corresponding increase in equity, representing
unit credit method, as at the date of the balance
contribution received from the ultimate holding
sheet. Actuarial gains / losses, if any, are immediately
company, over the period in which the performance
recognised in the statement of profit and loss.
and/or service conditions are fulfilled. The cumulative
Accumulated compensated absences which are not expense recognised for equity-settled transactions
expected to be settled wholly within 12 months after at each reporting date until the vesting date reflects
the end of the period in which the employees render the extent to which the vesting period has expired
the related service are treated as other long term and group’s best estimate of the number of equity
employee benefits for measurement purposes. instruments that will ultimately vest. The charge or
credit to the Statement of Profit and Loss for a period
V. Termination benefits
represents movement in the cumulative expenses
Termination benefits are payable when employment recognised as at the beginning and end of that
is terminated by the Company before the normal period.
retirement date, or when an employee accepts
voluntary redundancy in exchange for these benefits. In case of forfeiture/lapse stock option, which is
The Company recognises termination benefits at the not vested, amortised portion is reversed by credit
earlier of the following: to employee compensation expense. In a situation
where the stock option expires unexercised,
a. when the Company can no longer withdraw the the related balance standing to the credit of the
offer of those benefits; and Employee Stock Options Outstanding Account is
b. when the Company recognises costs for a transferred within other equity.
restructuring that is within the scope of Ind N. Non-current assets held for sale
AS 37 and involves the payment of termination
The Company classifies non-current assets as held for
benefits.
sale if their carrying amounts will be recovered principally
In the case of an offer made to encourage voluntary through a sale rather than through continuing use and the
redundancy, the termination benefits are measured sale is highly probable. Management must be committed
based on the number of employees expected to to the sale, which should be expected within one year
accept the offer. Benefits falling due more than 12 from the date of classification.
months after the end of the reporting period are
For these purposes, sale transactions include exchanges
discounted to present value.
of non-current assets for other non-current assets when
VI. Presentation and disclosure the exchange has commercial substance. The criteria
For the purpose of presentation of defined benefit for held for sale classification is regarded as met only
plans, the allocation between the short term and long when the asset is available for immediate sale in its
term provisions has been made as determined by an present condition, subject only to terms that are usual
actuary. Obligations under other long-term benefits and customary for sales of such assets, its sale is highly
are classified as short-term provision, if the Company probable; and it will genuinely be sold, not abandoned.
does not have an unconditional right to defer the The Company treats sale of the asset to be highly
settlement of the obligation beyond 12 months from probable when:
the reporting date. The Company presents the entire I. The appropriate level of management is committed
compensated absences as short term provisions, to a plan to sell the asset,
since employee has an unconditional right to avail
the leave at any time during the year. II. An active programme to locate a buyer and complete
the plan has been initiated (if applicable),
III. The asset is being actively marketed for sale at a
price that is reasonable in relation to its current fair
value,

IV. The sale is expected to qualify for recognition as II. Deferred tax
a completed sale within one year from the date of Deferred tax is provided using the liability method
classification, and on temporary differences between the tax bases of
V. Actions required to complete the plan indicate that assets and liabilities and their carrying amounts for
it is unlikely that significant changes to the plan will financial reporting purposes at the reporting date.
be made or that the plan will be withdrawn. Deferred tax liabilities are recognised for all taxable
Non-current assets held for sale are measured at the temporary differences, except:
lower of their carrying amount and the fair value less costs a. When the deferred tax liability arises from the
to sell. Assets and liabilities classified as held for sale are initial recognition of goodwill or an asset or
presented separately in the balance sheet. liability in a transaction that is not a business
Property, plant and equipment and intangible assets combination and, at the time of the transaction,
once classified as held for sale are not depreciated or affects neither the accounting profit nor taxable
amortised. profit or loss.
Gains and losses on disposals of non-current assets b. In respect of taxable temporary differences
are determined by comparing proceeds with carrying associated with investments in subsidiaries,
amounts, and are recognised in the statement of profit associates and interests in joint ventures,
and loss in “Other income”. when the timing of the reversal of the temporary
differences can be controlled and it is probable
O. Borrowing Cost that the temporary differences will not reverse
Borrowing cost directly attributable to acquisition and in the foreseeable future.
construction of assets that necessarily take substantial
Deferred tax assets are recognised for all deductible
period of time to get ready for their intended use or sale
temporary differences, the carry forward of unused
are capitalised as part of the cost of such assets up to
tax credits and any unused tax losses. Deferred tax
the date when such assets are ready for intended use
assets are recognised only to the extent that it is
or sale. All other borrowing costs are expensed in the
probable that sufficient future taxable income will
period in which they occur. Borrowing cost consists of
be available against which such deferred tax assets
interest and other costs that an entity incurs in connection
can be realised, except:
with the borrowing of funds. Borrowing cost also includes
exchange differences to the extent regarded as an a. When the deferred tax asset relating to the
adjustment to the borrowing costs. deductible temporary difference arises from
the initial recognition of an asset or liability in a
P. Taxation
transaction that is not a business combination
Tax expense comprises current income tax and deferred and, at the time of the transaction, affects
income tax and includes any adjustments related to past neither the accounting profit nor taxable profit
periods in current and / or deferred tax adjustments that or loss.
may become necessary due to certain developments or
reviews during the relevant period. b. In respect of deductible temporary differences
associated with investments in subsidiaries,
I. Current income tax associates and interests in joint ventures,
Current income tax is measured at the amount deferred tax assets are recognised only to the
expected to be recovered from or paid to the extent that it is probable that the temporary
taxation authorities. The tax rates and tax laws used differences will reverse in the foreseeable future
to compute the amount are those that are enacted and taxable profit will be available against which
or substantively enacted, at the reporting date. the temporary differences can be utilised.
Current income tax relating to items recognised The carrying amount of deferred tax assets are
outside the statement of profit and loss is recognised reviewed at each balance sheet date. The Company
in correlation to the underlying transaction either in writes-down the carrying amount of a deferred tax
OCI or directly in equity. Management periodically asset to the extent that it is no longer probable that
evaluates positions taken in the tax returns with sufficient future taxable income will be available
respect to situations in which applicable tax against which deferred tax asset can be realised.
regulations are subject to interpretation and Any such write-down is reversed to the extent that
establishes provisions where appropriate. it becomes reasonably certain that sufficient future
taxable income will be available.
Current tax assets and current tax liabilities are
offset when there is a legally enforceable right to set
off the recognised amounts and there is an intention
to settle the asset and the liability on a net basis.

Deferred tax assets and liabilities are measured Company as a lessee:

based on the tax rates that are expected to apply Right-of-use assets
in the year when the asset is realised or the liability
At the date of commencement of the lease, the Company
is settled, based on tax rates (and tax laws) that
recognises a right-of-use asset and a corresponding
have been enacted or substantively enacted at the
lease liability for all lease arrangements in which it is a
reporting date.
lessee, except for short-term leases and leases of low-
Deferred tax relating to items recognised outside the value assets.
statement of profit and loss is recognised outside
The right-of-use assets are initially recognised at cost,
profit or loss (either in other comprehensive income
which comprises the initial amount of the lease liability
or in equity). Deferred tax items are recognised in
adjusted for any lease payments made at or prior to the
correlation to the underlying transaction either in OCI
commencement date of the lease plus any initial direct
or directly in equity.
costs less any lease incentives. They are subsequently
Deferred tax assets and liabilities are offset when measured at cost less accumulated depreciation and
there is a legally enforceable right to offset current impairment losses, if any. Right-of-use assets are
tax assets and liabilities and when the deferred depreciated from the commencement date on a straight-
tax balances relate to the same taxation authority. line basis over the shorter of the lease term and useful life
Current tax assets and current tax liabilities are of the underlying asset and the average lease terms are
offset when there is a legally enforceable right to set as follows:
Average (Range) lease terms
to settle the asset and the liability on a net basis. Right-of-use assets
(in years)
The Company applies significant judgment in Buildings 2 - 30
identifying uncertainties over income tax treatments. Leasehold land 5 - 99
Uncertain tax positions are reflected in the overall Ships and tugs 5 - 13
measurement of the Company’s tax expense and are
based on the most likely amount or expected value The Right-of-use assets is also subject to impairment.
that is to be disallowed by the taxing authorities Right-of-use assets are evaluated for recoverability
whichever better predict the resolution of uncertainty. whenever events or changes in circumstances indicate
Uncertain tax balances are monitored and updated that their carrying amounts may not be recoverable.
as and when new information becomes available,
Lease liabilities
typically upon examination or action by the taxing
authorities or through statute expiration. The lease liability is initially measured at the present value
of the future lease payments. The lease payments are
Q. Leases discounted using the interest rate implicit in the lease or, if
The Company assesses whether a contract is or contains not readily determinable, using the incremental borrowing
a lease, at inception of a contract. A contract is, or rates. The Company uses the incremental borrowing rate
contains, a lease if the contract conveys the right to as the discount rate.
control the use of an identified asset for a period of time in
Lease payments included in the measurement of the
exchange for consideration. To assess whether a contract
lease liability include fixed payments, variable lease
conveys the right to control the use of an identified asset,
payments that depend on an index or a rate known at the
the Company assesses whether:
commencement date; and extension option payments
i. the contract involves the use of an identified asset or purchase options payments which the Company is
reasonably certain to exercise.
ii. the Company has substantially all of the economic
benefits from use of the asset through the period of Variable lease payments that do not depend on an index
the lease and or rate are not included in the measurement the lease
liability and the ROU asset. The related payments are
iii. the Company has the right to direct the use of the
recognised as an expense in the period in which the event
asset
or condition that triggers those payments occurs and are
included in the line “other expenses” in the Statement of
Profit or Loss.

The lease term comprises the non-cancellable lease term In respect of assets provided on finance leases,
together with the period covered by extension options, amounts due from lessees are recorded as receivables
if assessed as reasonably certain to be exercised, and at the amount of the Company’s net investment in the
termination options, if assessed as reasonably certain leases. Finance lease income is allocated to accounting
not to be exercised. For lease arrangement in respect of periods to reflect a constant periodic rate of return on
ships, the non-lease components are not separated from the Company’s net investment outstanding in respect of
lease components and instead account for each lease the leases. In respect of assets given on operating lease,
component, and any associated non-lease component lease rentals are accounted in the Statement of Profit and
as a single lease component. Loss, on accrual basis in accordance with the respective
lease agreements.
The lease liability is subsequently remeasured by
increasing the carrying amount to reflect interest on the R. Segment reporting
lease liability, reducing the carrying amount to reflect the Operating segment is reported in a manner consistent
lease payments made. with the internal reporting provided to Chief Operating
The Company remeasures the lease liability (and makes Decision Maker (CODM).
a corresponding adjustment to the related right-of-use The Board of Directors of the company has appointed
asset) whenever: executive committee (ExCo) as CODM. The ExCo
i. The lease term has changed or there is a change in assesses the financial performance and position of the
the assessment of exercise of a purchase option, Company and makes strategic decisions.
in which case the lease liability is remeasured by S. Cash and cash equivalents
discounting the revised lease payments using a
Cash and cash equivalents consist of cash on hand,
revised discount rate.
cash at banks, demand deposits from banks and short-
ii.
A lease contract is modified and the lease term, highly liquid instruments. As part of Company’s
modification is not accounted for as a separate cash management policy to meet short term cash
lease, in which case the lease liability is remeasured commitments, it parks its surplus funds in short-term
by discounting the revised lease payments using a highly liquid instruments that are generally held for a
revised discount rate. period of three months or less from the date of acquisition.
These short-term highly liquid instruments are open-
ROU asset have been separately presented in the Balance
ended debt funds that are readily convertible into known
Sheet, whereas lease liability have been included under
amounts of cash and are subject to insignificant risk of
“other financial liabilities” in Balance Sheet and lease
changes in value.
payments have been classified as financing cash flows.
T. Government grants and subsidies
Deferred tax on the deductible temporary difference
and taxable temporary differences in respect of carrying I. Grants and subsidies from the Government are
value of Right-of-use assets and lease liability and their recognised when the Company will comply with
respective tax bases are recognised separately. all the conditions attached to them and there is a
reasonable assurance that the grant / subsidy will
Short-term leases and leases of low-value assets be received and all attaching conditions will be
The Company applies the short-term lease recognition complied with.
exemption to its short-term leases (i.e., those leases
II. Where the government grants / subsidies relate
that have a lease term of 12 months or less from the
to revenue, they are recognised as income on a
commencement date). It also applies the lease of low-
systematic basis in the statement of profit and
value assets recognition exemption to leases that are
loss over the periods necessary to match them
considered of low value (range different for different
with the related costs, which they are intended to
class of assets). Lease payments on short-term leases
compensate. Government grants and subsidies
and leases of low-value assets are recognised as expense
receivable against an expense are deducted from
on a straight-line basis over the lease term. The related
such expense.
cash flows are classified as Operating activities in the
Statement of Cash Flows. III. Where the grant or subsidy relates to an asset, it is
recognised as income in equal amounts over the
Company as a lessor:
expected useful life of the related asset.
Leases for which the Company is a lessor are classified
as finance or operating leases. Whenever the terms of IV. When the Company receives grants of non-monetary
the lease transfer substantially all the risks and rewards assets, the asset and the grant are recorded at fair
of ownership to the lessee, the contract is classified as a value amounts and released to the statement of profit
finance lease. All other leases are classified as operating and loss over the expected useful life in a pattern of
leases. consumption of the benefit of the underlying asset
i.e. by equal annual installments.

V. When loans or similar assistance are provided by Estimates and judgments are continually evaluated and
governments or related institutions, with an interest are based on historical experience and other factors,
rate below the current applicable market rate, the including expectations of future events that are believed
effect of this favourable interest is regarded as a to be reasonable under the circumstances.
government grant. The loan or assistance is initially
The estimates and underlying assumptions are reviewed
recognised and measured at fair value and the
on an ongoing basis. Revisions to accounting estimates
government grant is measured as the difference
are recognised in the period in which the estimate is
between the initial carrying value of the loan and
revised if the revision affects only that period, or in the
the proceeds received. The loan is subsequently
period of the revision and future period, if the revision
measured as per the accounting policy applicable
affects current and future period. Revisions in estimates
to financial liabilities.
are reflected in the financial statements in the period in
U. Earnings per share which changes are made and, if material, their effects are
Basic earnings per share are calculated by dividing the disclosed in the notes to the financial statements.
net profit or loss for the period attributable to equity The Company makes estimates and assumptions
shareholders by the weighted average number of equity concerning the future. The resulting accounting estimates
shares outstanding during the period. will, by definition, seldom equal the related actual
Diluted earnings per share are computed by dividing the results. The estimates and assumptions that may have
profit after tax as adjusted for dividend, interest and other a significant risk of causing a material adjustment to the
charges to expense or income (net of any attributable carrying amounts of assets and liabilities within the next
taxes) relating to the dilutive potential equity shares, by financial year are summarised below:
the weighted average number of equity shares considered I. Classification of legal matters and tax litigation
for deriving basic earnings per share and the weighted
The litigations and claims to which the Company
average number of equity shares which could have been
is exposed to are assessed by management with
issued on conversion of all dilutive potential equity shares.
assistance of the legal department and in certain
V. Classification of current / non-current assets and cases with the support of external specialised
liabilities lawyers. Disclosures related to such provisions, as
All assets and liabilities are presented as current or non- well as contingent liabilities, also require judgment
current as per the Company’s normal operating cycle and and estimations if any.
other criteria set out in Schedule III of the Companies II. Defined benefit obligations
Act, 2013 and Ind AS 1 “Presentation of financial
The cost of defined benefit gratuity plans and post-
statements”. Based on the nature of products and the
retirement medical benefit is determined using
time between the acquisition of assets for processing
actuarial valuations. The actuarial valuation involves
and their realisation, the Company has ascertained its
making assumptions about discount rates, future
operating cycle as 12 months for the purpose of current
salary increases, mortality rates and future pension
/ non-current classification of assets and liabilities.
increases. Due to the long-term nature of these
W. Exceptional items plans, such estimates are subject to significant
An item of income or expense which by its size, nature uncertainty.
or incidence requires disclosure in order to improve an III. Useful life of property, plant and equipment
understanding of the performance of the Company is
The charge in respect of periodic depreciation is
treated as an exceptional item and disclosed separately
derived after determining an estimate of an asset’s
in the financial statements.
expected useful life and the expected residual value.
X. Use of estimates and judgments Increasing an asset’s expected life or its residual
The preparation of the Company’s financial statements value would result in a reduced depreciation charge
requires management to make judgments, estimates and in the statement of profit and loss. The useful
assumptions that affect the reported amounts of revenues, lives of the Company’s assets are determined by
expenses, assets and liabilities, and the accompanying management at the time the asset is acquired and
disclosures, and the disclosure of contingent liabilities. reviewed at least annually for appropriateness. The
Uncertainty about these assumptions and estimates could lives are based on historical experience with similar
result in outcomes that require a material adjustment to assets as well as anticipation of future events, which
the carrying amount of assets or liabilities affected in may impact their life, such as changes in technology.
future periods.

IV. Leases Ind AS 116 Y. Recent Accounting Developments

Ind AS 116 Leases requires a lessee to determine Ministry of Corporate Affairs (“MCA”) notifies new
the lease term as the non-cancellable period of a standard or amendments to the existing standards. There
lease adjusted with any option to extend or terminate is no such notification which would have been applicable
the lease, if the use of such option is reasonably from 1st January 2022.
certain. The Company makes an assessment on
MCA issued notifications dated 24th March, 2021 to amend
the expected lease term on lease by lease basis
Schedule III to the Companies Act, 2013 to enhance the
and thereby assesses whether it is reasonably
disclosures required to be made by the Company in its
certain that any options to extend or terminate the
financial statements. These amendments are applicable
contract will be exercised. In evaluating the lease
to the Company for the financial year starting 1st January
term, the Company considers factors such as any
2022.
significant leasehold improvements undertaken over
the lease term, costs relating to the termination of
lease and the importance of the underlying lease to
the Company’s operations taking into account the
location of the underlying asset and the availability
of the suitable alternatives. The lease term in future
periods is reassessed to ensure that the lease term
reflects the current economic circumstances. The
discount rate is generally based on the incremental
borrowing rate specific to the lease being evaluated
or for a portfolio of leases with similar characteristics.

Note 4 - Property, plant and equipment
(Refer Note 3 (A) and 3 (B) for accounting policy on property, plant and equipment)
Net Carrying Value
Gross Carrying Value Accumulated Depreciation
(Refer Note (d) below)
Particulars Charge for

As at 1st As at 31st As at 1st As at 31st As at 31st As at 31st
Deductions / the year Deductions/
January Additions December January December December December
Transfers (Refer Note Transfers
2021 2021 2021 2021 2021 2020
(e) below)
` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore
Freehold non-mining land 423.05 4.71 - 427.76 - - - - 427.76 423.05
Freehold mining land 793.56 70.66 - 864.22 84.58 41.66 - 126.24 737.98 708.98
Leasehold mining land 201.45 0.19 - 201.64 5.27 2.06 - 7.33 194.31 196.18
Buildings roads and water works
(Refer Note (a) below) 1,566.04 175.29 0.61 1,740.72 404.85 73.45 1.85 476.45 1,264.27 1,161.19
Plant and equipment (owned)
(Refer Note (b) below) 4,652.78 1,884.31 59.32 6,477.77 1,984.16 340.80 24.73 2,300.23 4,177.54 2,668.62
Furniture and fixtures 25.10 3.76 0.07 28.79 14.08 4.26 1.89 16.45 12.34 11.02
Vehicles 133.56 21.85 15.92 139.49 56.96 17.81 11.49 63.28 76.21 76.60
Office equipment 73.79 13.44 3.47 83.76 58.45 7.97 3.38 63.04 20.72 15.34
Corporate Overview
Marine structures (Refer Note (c) below) 24.37 - - 24.37 17.31 3.00 - 20.31 4.06 7.06
Railway sidings and locomotives 48.60 110.77 - 159.37 22.83 5.33 - 28.16 131.21 25.77
Ships 126.54 - 0.02 126.52 37.47 7.17 0.02 44.62 81.90 89.07
Total 8,068.84 2,284.98 79.41 10,274.41 2,685.96 503.51 43.36 3,146.11 7,128.30 5,382.88

Net Carrying Value
Gross Carrying Value Accumulated Depreciation
Statutory Reports
Charge for
Particulars Deductions / the year Deductions/
January Additions December January December December December
Transfers (Refer Note Transfers
2020 2020 2020 2020 2020 2019
(e) below)
Freehold non-mining land 376.25 46.90 0.10 423.05 - - - - 423.05 376.25
Freehold mining land 771.73 21.83 - 793.56 53.66 30.92 - 84.58 708.98 718.07

Leasehold mining land 201.12 0.33 - 201.45 3.21 2.06 - 5.27 196.18 197.91
Leasehold non-mining land

(Refer Note (i) below) 32.47 0.10 32.57 - 1.01 - 1.01 - - 31.46
Buildings roads and water works
(Refer Note (a) below) 1,557.56 10.73 2.25 1,566.04 331.35 74.12 0.62 404.85 1,161.19 1,226.21
(Refer Note (b) below) 4,504.72 193.45 45.39 4,652.78 1,667.32 335.51 18.67 1,984.16 2,668.62 2,837.40
Furniture and fixtures 24.47 0.87 0.24 25.10 11.76 2.45 0.13 14.08 11.02 12.71
Vehicles 119.37 17.55 3.36 133.56 43.01 16.43 2.48 56.96 76.60 76.36
Office equipment 70.42 4.22 0.85 73.79 48.93 10.34 0.82 58.45 15.34 21.49
Marine structures (Refer Note (c) below) 24.37 - - 24.37 14.31 3.00 - 17.31 7.06 10.06
Railway sidings and locomotives 48.59 0.01 - 48.60 19.15 3.68 - 22.83 25.77 29.44
Ships 126.54 - - 126.54 30.28 7.19 - 37.47 89.07 96.26
Total 7,857.61 295.99 84.76 8,068.84 2,223.99 485.70 23.73 2,685.96 5,382.88 5,633.62
209
Note 4 - Property, plant and equipment (Contd.....)

Includes :
a) i) Premises in co-operative societies, on ownership basis of ` 84.50 crore (31st December 2020 - ` 84.50 crore) and
` 9.33 crore (31st December 2020 - ` 7.73 crore) being accumulated depreciation thereon.
ii)
` 19.92 crore (31st December 2020 - ` 19.48 crore) being cost of roads constructed by the Company, the ownership of
which vests with goverment/local authorities and ` 17.24 crore (31st December 2020 - ` 16.87 crore) being accumulated
depreciation thereon.
b)
` 73.83 crore (31st December 2020 - ` 73.47 crore) being cost of power lines incurred by the Company, the ownership
of which vests with state electricty boards and ` 13.47 crore (31st December 2020 - ` 11.17 crore) being accumulated
c) Cost incurred by the Company the ownership of which vests with the state maritime boards.
d) As per the website of the Ministry of Corporate affairs, certain charges aggregating Nil (31st December 2020 - ` 23.42
crore) on properties of the Company are pending for satisfaction due to some procedural issues, although related loan
amounts have already been paid in full.
e) Nil (31st December 2020 - ` 5.18 crore) depreciation capitalised during construction for projects (Refer Note 8).
f) The title deeds of immovable properties are held in the name of the Company except for 13 cases (31st December 2020 -
13 cases) of freehold land amounting to net block of ` 1.30 crore (31st December 2020 - ` 1.30 crore) for which title deeds
are in the name of the subsidiary and erstwhile Ambuja Cements Rajasthan Limited (merged with the Company).
g) Capital work in progress as at 31st December 2021 is ` 951.32 crore (31st December 2020 - ` 1,873.74 crore) comprises
of various projects and expansions spread over all units.
Major Capital Work-in-Progress are related to following projects:
As at As at
Project 31st December 2021 31st December 2020
Integrated plant at Marwar 337.16 1,392.00
Coal Block 31.64 103.57
Railway Siding 65.86 144.88
Waste Heat Recovery System 268.69 98.42
Flyash Dryer 43.04 -
Others 204.93 134.87
Total 951.32 1,873.74
There are no projects where activity has been suspended. Refer Note 8 for the amount of expenditure recognised in
the carrying amount of an item of Property, Plant and Equipment / Capital work in progress (CWIP) in the course of its
construction.
h) For contractual commitment with respect to property, plant and equipment Refer Note 50.
i) Upon implementation of Ind AS 116 - Leases from 1st January 2020, all leasehold non-mining land, identified under the
earlier Ind AS 17 amounting ` 31.56 crore (net block) have been reclassified as Right-of-use assets. Refer Note 52 A(c).

Note 5 - Right-of-use assets
(Refer Note 3 (Q) and (X) for accounting policy on leases)
Gross Carrying Value Accumulated Depreciation Net Carrying Value
Deductions / Charge for Deductions/
Particulars January Additions December January December December December
Transfers the year Transfers
2021 2021 2021 2021 2021 2020
Leasehold land (Refer Note 52(A)(c)) 86.79 2.42 - 89.21 3.23 3.65 - 6.88 82.33 83.56
Building and installation 7.79 1.18 0.89 8.08 1.57 1.60 0.26 2.91 5.17 6.22
Ships and tugs 315.64 2.84 1.31 317.17 31.44 31.21 1.24 61.41 255.76 284.20
Total 410.22 6.44 2.20 414.46 36.24 36.46 1.50 71.20 343.26 373.98
Net
Gross Carrying Value Accumulated Depreciation Carrying
Value
Reclassified Reclassified
As at 1st
Particulars on account of As at 31st As at 1st on account of As at 31st As at 31st
January 2020 Deductions / Charge for Deductions/
Ind AS 116 Additions December January Ind AS 116 December December
(Refer Note Transfers the year Transfers
(Refer Note 2020 2020 (Refer Note 2020 2020
(a) below)
Corporate Overview
(a) below) (a) below)

` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore
Leasehold land (Refer Note 4(i) and 52(A)(c)) 20.28 66.51 - - 86.79 - 1.01 2.22 - 3.23 83.56
Building and installation 8.51 - 0.35 1.07 7.79 - - 1.75 0.18 1.57 6.22

Ships and tugs 315.64 - - - 315.64 - - 31.44 - 31.44 284.20
Total 344.43 66.51 0.35 1.07 410.22 - 1.01 35.41 0.18 36.24 373.98
Statutory Reports
Note:
a) Refer Note 52 on adoption of Ind AS 116 ‘‘Leases’’
Note 6 - Goodwill
Gross Carrying Value Accumulated Amortisation Net Carrying Value

2021 2021 2021 2021 2021 2020
Goodwill (Refer Note (a) below) 235.63 - - 235.63 235.63 - - 235.63 - -
Total 235.63 - - 235.63 235.63 - - 235.63 - -

2020 2020 2020 2020 2020 2019
Goodwill (Refer Note (a) below) 235.63 - - 235.63 235.63 - - 235.63 - -
Total 235.63 - - 235.63 235.63 - - 235.63 - -
Note:
a) The Company has adopted Ind AS w.e.f. 1st January 2017. In previous Generally Accepted Accounting Principles (GAAP) the Company was amortising goodwill.
Accumulated amortisation is related to previous GAAP.
211
212
Note 7 - Other intangible assets
(Refer Note 3 (C) and 3 (D) for accounting policy on intangible assets)
As at 31st As at 31st As at 31st As at 31st
As at 1st Deductions / As at 1st Charge for Deductions/
Particulars Additions December December December December
January 2021 Transfers January 2021 the year Transfers
2021 2021 2021 2020
Mining rights 185.23 12.01 2.42 194.82 11.76 10.96 - 22.72 172.10 173.47
Water drawing rights 0.31 - - 0.31 0.10 0.02 - 0.12 0.19 0.21
Computer software 1.17 1.19 - 2.36 0.21 0.29 - 0.50 1.86 0.96
Total 186.71 13.20 2.42 197.49 12.07 11.27 - 23.34 174.15 174.64

As at 31st As at 31st As at 31st As at 31st
As at 1st Deductions / As at 1st Charge for Deductions/
Particulars Additions December December December December
January 2020 Transfers January 2020 the year Transfers
2020 2020 2020 2019
Mining rights 185.23 - - 185.23 6.85 5.13 0.22 11.76 173.47 178.38
Computer software 0.34 0.83 - 1.17 0.12 0.09 - 0.21 0.96 0.22

Total 185.88 0.83 - 186.71 7.05 5.24 0.22 12.07 174.64 178.83

Note 8 - Capitalisation of Expenditure

The Company has capitalised following expenses of revenue nature to the cost of Property, Plant and Equipment
/ Capital work-in-progress. Consequently, expenses disclosed under the respective notes are net of amounts
capitalised.
As at As at
Particulars 31st December 2021 31st December 2020
Balance at the beginning of the year included in capital work-in-progress 125.96 59.80
Add : Expenditure during construction for projects
Employee benefits expenses (Refer Note (a) below) 24.56 22.84
Depreciation and amortisation expense (Refer Note 4 (e)) - 5.18
Other expenses (Refer Note (b) below) 105.56 38.14
256.08 125.96
Less : Capitalised during the year (Refer Note (c) below) 256.08 -
Balance at the end of the year included in capital work-in-progress - 125.96
Notes:
a) Costs of employee benefits (as defined in Ind AS 19 “Employee Benefits”) of project associated departments are arising
directly from the construction or acquisition of the item of property, plant and equipment.
b) Other expense are directly attributable to bringing the asset to the location and condition necessary for it to be capable
of operating in the manner intended by management.
c) During the year 2021, the Company has started commercial production at its integrated plant at Marwar in Rajasthan with
clinker capacity of 3.0 million ton per annum and cement grinding capacity of 1.8 million ton per annum.
Note 9 - Investments in subsidiaries and joint venture

(Refer Note 3 (G) for accounting policy on Investment in subsidiaries associates and joint arrangements measured
at cost)
Face value As at 31st December 2021 As at 31st December 2020
Particulars
(in `) No of shares ` in crore No of shares ` in crore
A) Investment in subsidiaries
Quoted, in fully paid equity shares
ACC Limited 10 93,984,120 11,737.80 93,984,120 11,737.80
Unquoted, in fully paid equity shares
M.G.T. Cements Private Limited 10 750,000 3.05 750,000 3.05
Chemical Limes Mundwa Private Limited 10 5,140,000 6.47 5,140,000 6.47
OneIndia BSC Private Limited
(Refer Note (c) below) 10 2,501,000 2.50 2,501,000 2.50
Dirk India Private Limited
(Refer Note 58) 10 2,075,383 23.03 2,075,383 23.03
35.05 35.05
B) Investment in joint venture
Unquoted, In fully paid equity shares
Counto Microfine Products Private Limited
(During the previous year 675,677 shares
were bought back) 10 7,644,045 14.86 7,644,045 14.86
Total 11,787.71 11,787.71

Note 9 - Investments in subsidiaries and joint venture (Contd.....)

Notes:
a) Book and Market value
Book value as at Market value as at
Particulars 31st December 2021 31st December 2020 31st December 2021 31st December 2020
` in crore ` in crore ` in crore ` in crore
Aggregate amount of quoted investments 11,737.80 11,737.80 20,840.04 15,210.39
Aggregate amount of unquoted investments 49.91 49.91 - -
Total 11,787.71 11,787.71 20,840.04 15,210.39
b) Disclosure pursuant to Ind AS 27 - Separate Financial Statements

Investments in the following subsidiary companies, joint venture company and joint operation are accounted at cost
% of equity interest
Country of
Name of the Company Principal activities As at As at
Incorporation
31st December 2021 31st December 2020
Direct and Indirect Subsidiaries
M.G.T Cements Private Limited Cement and cement related products India 100.00% 100.00%
Chemical Limes Mundwa Private Cement and cement related products
Limited India 100.00% 100.00%
Dang Cement Industries Private Cement and cement related products
Limited (Refer Note 21(a)) Nepal 91.63% 91.63%
Dirk India Private Limited Cement and cement related products
(Refer Note 58) India 100.00% 100.00%
ACC Limited Cement and cement related products India 50.05% 50.05%
neIndia BSC Private Limited
O Shared Services
(Refer Note (c) below) India 75.03% 75.03%
Joint Venture
Counto Microfine Products Private Cement and cement related products
Limited India 50.00% 50.00%
Joint Operation
Wardha Vaalley Coal Field Private Cement and cement related products
Limited (Refer Note 63) India 27.27% 27.27%
c) The Company’s investment in equity shares of OneIndia BSC Private Limited (BSC), engaged in business shared services,
is ` 2.50 crore (31st December 2020 ` 2.50 crore). The service agreement with BSC is expired and the same is not renewed.
Accordingly, the financial statements of BSC for the year ended 31st December 2021 have not been prepared on a “Going
Concern” basis. The Company has assessed that investment in BSC is fully recoverable and no impairment is necessary
considering positive net worth of ` 13.34 crore and net current assets ` 10.59 crore as at 31st December 2021.

Note 10 - Non-current investments

Face value As at 31st December 2021 As at 31st December 2020
Name of the Company
A) Investments carried at amortised cost
Unquoted, in Government and trust
securities
National Savings Certificate ` 36,500 (31st
December 2020 ` 36,500) deposited with
government department as security. (Refer
Note (b) below) - -
- -
B) Investments carried at fair value through
profit and loss (FVTPL)
Gujarat Goldcoin Ceramics Limited
(provision made and under liquidation) 10 1,000,000 - 1,000,000 -
Avaada MHBuldhana Private Limited
(Refer Note (d) below) 10 787,500 0.79 - -
Solbridge Energy Private Limited
(Refer Note (e) below) 10 3,075,791 3.91 - -
Amplus Green Power Private Limited
(Refer Note (f) below) 10 2,578,592 4.50 2,578,592 4.50
9.20 4.50
Total 9.20 4.50
Aggregate amount of unquoted investments 9.20 4.50
Notes:
a) Refer Note 55 for information about fair value measurement and Note 56 for credit risk and market risk of investments.
b) Denotes amount less than ` 50,000.
c) This company is under liquidation and the Company has fully provided for the investment value.
d) During the year, the Company has subscribed 787,500 equity shares in Avaada MHBuldhana Private Limited (Avaada)
representing 0.90% holding for a total consideration of ` 0.79 crore. The Avaada has set up a solar power plant in the State
of Maharashtra of which the Company’s Panvel plant would be one of the consumer.
e) During the year, the Company has subscribed 3,075,791 equity shares in Solbridge Energy Private Limited (Solbridge)
representing 7.31% holding for a total consideration of ` 3.91 crore. The Solbridge has set up a solar power plant in the
State of Chhattisgarh of which the Company’s Bhatapara plant would be one of the consumer.
f) During the previous year, the Company has subscribed 2,578,592 equity shares in Amplus Green Power Private Limited
(AGPPL) representing 5.63% holding for a total consideration of ` 4.50 crore. The AGPPL has set up a solar power plant
in the State of Uttar Pradesh of which the Company’s Dadri plant would be one of the consumer.

Note 11 - Non-current loans

(Refer Note 3 (I) (I) for accounting policy on financial assets)
As at As at
Unsecured, considered good
Loans to employees 1.52 0.94
Unsecured loans which have significant increase in credit risk
Loans to Dirk India Private Limited, a subsidiary (Refer Notes 54 and 58) 37.94 37.94
Loans to Wardha Vaalley Coal Field Private Limited, a Joint Operation 1.10 1.04
39.04 38.98
Less : allowance for doubtful loans 39.04 38.98
- -
Total 1.52 0.94
Notes:
a) Loans are non-derivative financial assets which generate a fixed or variable interest income for the Company. The carrying
value may be affected by changes in the credit risk of the counterparties.
b) No loans are due from directors or other officers of the Company or any of them either severally or jointly with any other
person. Further, no loans are due from firms or private companies in which any director is a partner, a director or a member.
c) Refer Note 56 (B) for information about credit risk.
Note 12 - Other non-current financial assets

As at As at
Security deposits 66.74 75.41
Incentives receivable under government incentive schemes 212.31 481.97
Bank deposits with more than 12 months maturity (Refer Note (a) below) 52.77 50.80
Interest accrued on fixed deposits 6.97 5.15
Unsecured receivables which have significant increase in credit risk
Interest receivable from Dirk India Private Limited, a subsidiary (Refer 54 and 58) 9.22 9.22
Less : allowance for doubtful interest receivable 9.22 9.22
- -
Total 338.79 613.33
Notes:
a) These include fixed deposits of ` 10.88 crore (31st December 2020 - ` 41.84 crore) given as security against bank
guarantees and ` 0.05 crore (31st December 2020 - ` 8.96 crore) given as security to regulatory authorities.
b) Refer Note 56 (B) for information about credit risk of other financial assets.

Note 13 - Other non-current assets

As at As at
Capital advances 134.51 256.23
Advances other than capital advances
Deposit against government dues / liabilities 167.16 167.11
Advances recoverable other than in cash 29.30 48.35
Other claim receivable from Government 214.97 214.97
545.94 686.66
Unsecured, considered doubtful
Other claim receivable from Government 31.84 31.84
37.39 38.56
Less : allowance for doubtful receivables 37.39 38.56
- -
Total 545.94 686.66
Notes:
a) No advances are due from directors or other officers of the Company or any of them either severally or jointly with any
other person. Further, no advances are due from firms or private companies in which any director is a partner, a director
or a member.
b) Refer Note 56 (B) for information about credit risk of other receivables.
Note 14 - Inventories
At lower of cost and net realisable value
(Refer Note 3 (F) for accounting policy on inventories)
As at As at
Raw materials (including in transit - ` 0.26 crore; 31st December 2020 - ` 0.10 crore) 79.80 61.18
Work-in-progress 481.75 203.92
Finished goods 109.00 71.49
Stock in trade (in respect of goods acquired for trading) 2.56 2.18
Captive coal 87.52 19.87
Coal and fuel (including in transit - ` 15.44 crore; 31st December 2020 - ` 0.25 crore) 476.64 158.00
Stores and spares (including in transit - ` 5.06 crore; 31st December 2020 - ` 2.92 crore) 189.93 203.68
Packing material 35.49 26.29
Others 0.88 -
Total 1,463.57 746.61
Notes:
a) The Company follows suitable provisioning norms for writing down the value of Inventories towards slow moving, non-
moving and surplus inventory. Provision for slow and non moving Stores and Spares for the year ended 31st December
2021 is amounting to ` 23.03 crore (31st December 2020 - ` 17.38 crore).
b) No inventories have been pledged as security for liabilities.

Note 15 - Trade receivables

As at As at
Secured, considered good 56.69 55.72
Unsecured, considered good 236.48 135.79
Unsecured which have significant increase in credit risk 25.87 23.68
319.04 215.19
Less : allowance for doubtful trade receivables 25.87 23.68
Total 293.17 191.51
Notes:
a) No trade receivables are due from directors or other officers of the company or any of them either severally or jointly with
any other person. Further, no trade receivables are due from firms or private companies in which any director is a partner,
a director or a member.
b) Refer Note 54 for receivables from related parties.
c) Refer Note 56 (B) for information about credit risk of trade receivables.
Note 16 - Cash and cash equivalents

(Refer Note 3 (S) for accounting policy on cash and cash equivalents)
As at As at
Balances with banks
In current accounts 55.78 26.97
Deposit with original maturity upto 3 months 3,453.84 2,415.63
3,509.62 2,442.60
Deposit with other than banks with original maturity of upto 3 months - 200.00
Investments in liquid mutual funds measured at FVTPL 475.08 74.31
Total 3,984.70 2,716.91
Note:
a) Refer Note 56 (B) for information about market risk.
Note 17 - Bank balances other than cash and cash equivalents

As at As at
Other Bank Balances
Earmarked balances with banks (Refer Note (a) below) 28.75 32.29
Fixed deposit with banks (original maturity more than 3 months but up to 12 months)
(Refer Note (b) below) 149.62 175.14
Total 178.37 207.43
Notes:
a) These balances represent unpaid dividend liabilities of the Company and unclaimed sale proceeds of the odd lot shares
belonging to the shareholders of erstwhile Ambuja Cements Rajasthan Limited (merged with the Company) not available
for use by the Company.
b) These include fixed deposit with lien in favour of National Company Law Appellate Tribunal (NCLAT) ` 133.57 crore including
interest (31st December 2020 - ` 129.37 crore), (Refer Note 48(b)(i)) and other deposits amounting Nil (31st December
2020 - ` 25.00 crore) given as security against bank guarantees and ` 16.05 crore (31st December 2020 - ` 20.77 crore)
given as security to regulatory authorities.

Note 18 - Current loans

As at As at
Loans to related parties, Subsidiaries of the Commpany (Refer Note 54) 1.45 1.44
Total 4.76 4.43
Notes:
a) No loans are due from directors or other officers of the Company or any of them either severally or jointly with any other
person. Further, no loans are due from firms or private companies in which any director is a partner, a director or a member.
b) Refer Note 56 (B) for information about credit risk of loans.
Note 19 - Other current financial assets

As at As at
Interest accrued on loan to subsidiaries (Refer Note 54) 0.38 0.23
Interest accrued on fixed deposits 3.28 3.93
Deposit with banks with original maturity of more than 12 months (Refer Note (a) below) 8.94 1.08
Other receivables 43.32 41.00
204.89 78.82
Unsecured which have significant increase in credit risk
Less : allowance for doubtful other receivable 12.03 12.14
- -
Total 204.89 78.82
Notes:
a) Deposits of ` 8.94 crore (31st December 2020 - ` 1.08) given as security to regulatory authorities.
b) Refer Note 56 (B) for information about credit risk of other financial assets.
Note 20 - Other current assets

As at As at
Advances other than capital advances (Refer Note (a) below)
Advances 225.63 139.54
Balances with statutory / Government authorities 357.48 274.36
Prepaid expenses 30.79 27.67
Others 6.56 18.78
Total 620.46 460.35
Note:
a) No advances are due from directors or other officers of the Company or any of them either severally or jointly with any
other person. Further, no advances are due from firms or private companies in which any director is a partner, a director
or a member.

Note 21 - Non-current assets classified as held for sale

(Refer Note 3 (N) for accounting policy on Non-current assets held for sale)
As at As at
Investments in Dang Cement Industries Private Limited (Refer Note (a) below) 24.75 24.75
Total 24.75 24.75
Note:
a) The Company has entered into share purchase agreement for sale of its entire investment in Dang Cement Industries
Private Limited, subject to fulfillment of certain conditions. Transaction is expected to be completed in the next 12 months.
Pending fulfilment of such conditions, the said investment has been classified as held for sale.
Note 22 - Equity share capital

(Refer Note 3 (I) (II) (a) for accounting policy on equity instruments)
As at As at
Authorised
40,000,000,000 (31st December 2020 - 40,000,000,000) Equity shares of ` 2 each 8,000.00 8,000.00
150,000,000 (31st December 2020 - 150,000,000) Preference shares of ` 10 each 150.00 150.00
Total 8,150.00 8,150.00
Issued
1,985,971,749 (31st December 2020 - 1,985,971,749) Equity shares of ` 2 each fully paid-up 397.19 397.19
Subscribed and paid-up

Notes :
a) Reconciliation of equity shares outstanding
As at 31st December 2021 As at 31st December 2020
Particulars
No. of shares ` in crore No. of shares ` in crore
At the beginning of the year 1,985,645,229 397.13 1,985,645,229 397.13
Changes during the year - - - -
At the end of the year 1,985,645,229 397.13 1,985,645,229 397.13
b) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of ` 2 per share. Each shareholder is entitled to one
vote per equity share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in
the ensuing Annual General Meeting, except in case of interim dividend.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholder.

Note 22 - Equity share capital (Contd.....)

c) Equity shares held by holding company / ultimate holding company and / or their subsidiaries
As at As at
Holderind Investments Limited, Mauritius Holding company (a subsidiary of Holcim Limited
(Erstwhile LafargeHolcim Limited), Switzerland, the ultimate holding company)
d) Details of equity shares held by shareholders holding more than 5% shares in the Company
Particulars
No. of shares % holding No. of shares % holding
Holderind Investments Limited, Mauritius 1,253,156,361 63.11% 1,253,156,361 63.11%
As per the records of the Company including its register of shareholders / members and other declarations received from
shareholders regarding beneficial interest, the above shareholdings represent both legal and beneficial ownership of
shares.
e) Outstanding tradable warrants and right shares

Outstanding tradable warrants and right shares are kept in abeyance exercisable into 186,690 (31st December 2020 -
186,690) and 139,830 (31st December 2020 - 139,830) equity shares of ` 2 each fully paid-up respectively.
f) Aggregate number of shares issued for consideration other than cash during the period of five years immediately
preceding the reporting date
Pursuant to the Scheme of amalgamation of Holcim (India) Private Limited (HIPL) with the Company in August 2016,
58,4417,928 equity shares were allotted as fully paid up to the equity shareholders of HIPL, without payment being received
in cash.
g) There are no other securities which are convertible into equity shares.
Note 23 - Capital Management

a) The Company’s objectives when managing capital are to maximise shareholders value through an efficient allocation of
capital towards expansion of business optimisation of working capital requirements and deployment of balance surplus
funds on the back of an effective portfolio management of funds within a well defined risk management framework.
b) The management of the Company reviews the capital structure of the Company on regular basis to optimise cost of capital.
As part of this review, the Board considers the cost of capital and the risks associated with the movement in the working
capital.
c) The Company generally meets its capital requirement through internal accruals. The borrowings as appearing in the Notes
26 and 34 represents Interest Free Loan from State Government considered as Government grant. The Company is not
subject to any externally imposed capital requirements.
As at As at
Total debt (including current maturities of borrowings) (Refer Notes 26 and 34) 46.94 43.60
Less : Cash and cash equivalents (Refer Note 16) 3,984.70 2,716.91
Net debt (3,937.76) (2,673.31)
Total equity (Refer Notes 22 and 25) 22,207.26 20,315.86
Net Debt to Equity Nil Nil

Note 24 - Dividend distribution made and proposed

As at As at
a) Dividend paid on equity shares
i) Final dividend for the year ended 31st December 2020 ` 1.00 per share
(31st December 2019 - Nil) 198.56 -
ii) Interim dividend ` 1.50 per share (Refer Note (b) below) - 297.85
iii) Interim dividend for the year ended 31st December 2020 ` 17 per share - 3,375.60
Total 198.56 3,673.45
b) Dividend proposed on equity shares
Final dividend for the year ended 31st December 2021 ` 6.30 per share
(31st December 2020 - ` 1.00 per share) (Refer Note (a) below) 1,250.96 198.56
Total 1,250.96 198.56
Notes:
a) Proposed dividends on equity shares are subject to approval at the Annual General Meeting and are not recognised as a
liability.
b) Due to COVID-19 pandemic there was a delay in conducting Annual General Meeting and consequent delay in payment
of final dividend. The Board of Directors revoked the recommendation for payment of final dividend for the year ended
31st December 2019 and declared an interim dividend for the financial year ended 31st December 2019 at ` 1.50 per share
in the Board Meeting held on 12th May 2020.
Note 25 - Other equity

(Refer Statement of Changes in Equity for detailed movement in other equity balances)
As at As at
Reserve and surplus (nature and purpose of each reserve is given in notes below)
a) Capital reserve 130.71 130.71
b) Securities premium 12,471.07 12,471.07
c) General reserve 5,655.83 5,655.83
d) Capital redemption reserve 9.93 9.93
e) Subsidies 5.02 5.02
f) Capital contribution from parent 5.36 1.53
g) Retained earnings 3,532.21 1,644.64
Total 21,810.13 19,918.73
Nature and purpose of each reserve within equity:

a) Capital reserve
This reserve has been transferred to the Company in the course of business combinations and can be utilised in accordance
with the provisions of the Companies Act, 2013.
b) Securities premium
This reserve represents the premium on issue of shares and can be utilised in accordance with the provisions of the
Companies Act, 2013.
c) General reserve
The Company created general reserve in earlier years pursuant to the provisions of the Companies Act 1956 wherein
certain percentage of profits were required to be transferred to general reserve before declaring dividends. As per the
Companies Act, 2013 the requirement to transfer profits to general reserve is not mandatory. General reserve is a free
reserve available to the Company.

Note 25 - Other equity (Contd.....)

d) Capital redemption reserve
Capital redemption reserve was created by transferring from retained earnings. During the year ended 30th June 2005,
part of the amount was used for issue of bonus shares. The balance will be utilised in accordance with the provisions of
the Companies Act, 2013.
e) Subsidies
These are capital subsidies received from the Government and various authorities.
f) Capital contribution from parent

Capital contribution from parent represents the fair value of the employee performance share plan. These shares are
granted by parent company “Holcim Limited” to the employees of the Group. The share based payment reserve is used
to recognise the value of equity settled Share based payments provided to executives and senior management.
g) Retained earnings
Retained earnings are the profits that Company has earned till date less transfers to general reserve dividends or other
distributions paid to shareholders. Retained earnings includes re-measurement loss / (gain) on defined benefit plans (net
of taxes) that will not be reclassified to the Statement of Profit and Loss. Retained earnings is a free reserve available to
the Company.
Note 26 - Non-current borrowings

(Refer Note 3 (I) (II) (b) for accounting policy on financial liabilities)
As at As at
Secured
Interest free loan from State Government (Refer Notes (a) below) 43.50 43.60
Total 43.50 43.60
Notes:
a) Interest free loan from State Government granted under State investment promotion scheme has been considered as
a Government grant. This is secured by bank guarantees (majorly backed by pledge of bank fixed deposits). Each loan
repayable in single installment, starting from August 2022 to January 2027 of varying amounts ranging from ` 3.59 crore
to ` 13.39 crore. During the previous year, the Company has paid one of the installment of ` 5.86 crore due in February
2020. Next installment is due in August 2022.
Note 27 - Lease Liability

(Refer Note 3 (Q) for accounting policy on leases)
As at As at
Lease liability (Refer Note 52) 261.15 296.64
Total 261.15 296.64
Note 28 - Other non-current financial liabilities

As at As at
Liability for capital expenditure 0.13 0.13
Total 0.13 0.13

Note 29 - Non-current provisions

(Refer Note 3 (J) (I) and 3 (M) for accounting policy on provisions and retirement and other employee benefits)
As at As at
Provision for gratuity and other staff benefit schemes (Refer Note 51) 6.30 8.34
Provision for mines reclamation expenses (Refer Note (a) below) 58.82 47.28
Total 65.12 55.62
Note:
a) Mines reclamation expenses are incurred on an ongoing basis until the respective mines are not fully restored, in accordance
with the requirements of the mining agreement. The actual expenses may vary based on the nature of reclamation and the
estimate of reclamation expenses. Movement of provisions during the year is as under
As at As at
Opening Balance 47.28 33.68
Add : Provision during the year 9.44 12.42
56.72 46.10
Add : Unwinding of discounting 2.10 1.34
Less : Provision utilised during the year - 0.16
Closing Balance 58.82 47.28
Note 30 - Deferred tax liabilities (net)

(Refer Note 3 (P) (II) for accounting policy on deferred tax)
As at As at
Deferred tax liabilities, on account of
Depreciation and amortisation 434.11 399.48
Deferred tax assets, on account of
Provision for employee benefits 22.70 12.84
Provision for slow and non moving spares 18.91 13.11
Expenditure debited in the Statement of Profit and Loss but allowed for tax purposes in the
following years 59.85 61.35
Provision against loan and interest thereon receivable from a subsidiary 11.87 11.87
Interest provided under section 244 (A) of Income Tax Act, 1961 99.07 95.17
Others temporary differences 19.92 19.19
232.32 213.53
Deferred tax liabilities / (assets) (net) 201.79 185.95

Note 30 - Deferred tax liabilities (net) (Contd.....)

The major components of deferred tax liabilities / assets on account of temporary differences are as follows:
Charge /
Charge / (Credit) to
As at (Credit) to Other As at
Statement of Profit
Particulars 1st January 2021 Comprehensive 31st December 2021
and Loss
Income
Depreciation and amortisation 399.48 34.63 - 434.11
Provision for employee benefits 12.84 11.78 (1.92) 22.70
Provision for slow and non moving spares 13.11 5.80 - 18.91
Expenditure debited in the Statement of Profit and
Loss but allowed for tax purposes in the following
years 61.35 (1.50) - 59.85
Provision against loan and interest thereon
receivable from a subsidiary 11.87 - - 11.87
Interest provided under section 244 (A) of Income
Tax Act, 1961 95.17 3.90 99.07
Others temporary differences 19.19 0.73 - 19.92
213.53 20.71 (1.92) 232.32
Deferred tax liabilities / (assets) (net) 185.95 13.92 1.92 201.79
Charge /
Charge / (Credit) to
As at (Credit) to Other As at
Statement of Profit
Particulars 1st January 2020 Comprehensive 31st December 2020
and Loss
Income
Depreciation and amortisation 427.01 (27.53) - 399.48
Provision for employee benefits 40.05 (29.56) 2.35 12.84
Expenditure debited in the Statement of Profit and
Loss but allowed for tax purposes in the following
years 54.22 7.13 - 61.35
Provision against loan and interest thereon
receivable from a subsidiary 12.21 (0.34) - 11.87
Interest provided under section 244 (A) of Income
Tax Act, 1961 80.50 14.67 95.17
Others temporary differences 15.24 3.95 - 19.19
210.95 0.23 2.35 213.53
Deferred tax liabilities / (assets) (net) 216.06 (27.76) (2.35) 185.95
Notes:
a) The Company has long term capital losses of ` 3.58 crore (31st December 2020 - ` 3.58 crore) for which no deferred tax
assets have been recognised. These losses will expire between financial year 2021-22 to 2022-23.
b) The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set-off current tax assets
and current tax liabilities and the deferred tax assets and deferred tax liabilities related to income taxes levied by the same
tax authority.

Note 31 - Reconciliation of tax expense and the profit multiplied by income tax rate
For the year ended 31st December 2021 For the year ended 31st December 2020
Particulars
` in crore In % ` in crore In %
Tax expenses at statutory income tax rate (Refer
Note (a) below) 701.05 25.17% 607.65 25.17%
Effect of deduction under Section 80M of the
Income tax Act, 1961 (33.81) -1.21% (32.99) -1.36%
Effect of non deductible expenses 33.52 1.20% 18.63 0.77%
Others 3.95 0.14% 30.99 1.28%
Tax expenses at the effective income tax rate 704.71 25.30% 624.28 25.86%
Tax expense reported in the Statement of Profit
and Loss 704.71 25.30% 624.28 25.86%
Note 32 - Other non-current liabilities

As at As at
Rebate to customers 36.74 40.05
Total 36.74 40.05
Note 33 - Total outstanding dues of micro and small enterprises

As at As at
Details of due to Micro and Small Enterprises as defined under Section 22 of the Micro, Small
and Medium Enterprises Development Act, 2006 is based on the information available with the
Company regarding the status of the suppliers (Refer Note (a) below).
a) The principal amount and the interest due thereon remaining unpaid to any supplier as at the
end of each accounting year.
Principal 7.47 2.41
Interest 0.10 0.05
7.57 2.46
b) The amount of interest paid by the buyer in terms of Section 16 along with the amount of the
payment made to the supplier beyond the appointed day during the year
Principal 25.79 16.35
Interest 0.13 0.08
c) The amount of interest due and payable for the period of delay in making payment (which
has been paid but beyond the appointed day during the year) but without adding the interest
specified 0.03 0.01
d) The amount of interest accrued and remaining unpaid at the end of the year 0.12 0.06
e) The amount of further interest remaining due and payable even in the succeeding years, until
such date when the interest dues as above are actually paid to the small enterprise for the
purpose of disallowance as a deductible expenditure under Section 23 of Micro, Small and
Medium Enterprises Development Act, 2006. - -
Note:
a) Above information has been determined to the extent such parties have been identified on the basis intimation received
from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006.

Note 34 - Other current financial liabilities

` in crore
As at As at
Financial Liabilities at amortised cost
Security deposit from dealers 500.34 490.39
Unpaid dividends (Refer Note (a) below) 26.25 29.79
Unclaimed sale proceeds of the odd lot shares belonging to the shareholders of erstwhile ACRL 2.50 2.50
Current maturities of borrowings (Refer Note 26) 3.44 -
Others (includes interest on security deposits) 75.23 46.46
Financial Liabilities at fair value
Foreign currency forward contract 3.26 1.04
Total 879.24 737.77
Note:
a) Amount to be transferred to the Investor education and protection fund shall be determined on the respective due dates
and does not include any amounts due and outstanding to be credited to Investor Education and Protection Fund on the
basis of the information available with the Company.
Note 35 - Other current liabilities

As at As at
Contract liability (Refer Note (a) below)
Advance received from customers 142.15 130.93
Other liability
Statutory dues payable 627.34 535.17
Rebates to customers 414.37 397.87
Other payables (includes interest on income tax) 856.26 848.00
Total 2,040.12 1,911.97
Note:
a) The contract liability outstanding at the beginning of the year has been recognised as revenue during the year ended 31st
December 2021.
Note 36 - Current provisions

(Refer Note 3 (M) for accounting policy on retirement and other employee benefits)
As at As at
Provision for compensated absences (Refer Note (a) below) 8.92 3.85
Total 8.92 3.85
Note:
a) Liability towards provision for compensated absences is funded. Above liability is to the extent of unfunded amount.

Note 37 - Revenue from operations

(Refer Note 3 (L) (I) and (II) for accounting policy on revenue recognition and 3 (T) for accounting policy on government
grants and subsidies)
Revenue from contracts with customers
Sale of manufactured products 13,232.68 10,896.21
Sale of traded products 560.88 278.76
13,793.56 11,174.97
Other operating revenues
Provisions no longer required written back 11.07 6.06
Sale of scrap 72.93 50.79
Incentives and subsidies (Refer Note (f) below) 3.19 50.29
Miscellaneous income (includes insurance claims and others) (Refer Note (f) below) 84.20 89.75
171.39 196.89
Total 13,964.95 11,371.86
Notes:
a) Reconciliation of revenue as per contract price and as recognised in the Statement of Profit and Loss :
Revenue as per contract price 15,723.26 12,526.70
Less: Discounts and incentives 1,929.70 1,351.73
Revenue as per the Statement of Profit and Loss 13,793.56 11,174.97
b) The amounts receivable from customers become due after expiry of credit period which on an average is 30 days. There
is no significant financing component in any transaction with the customers.
c) The Company does not provide performance warranty for products, therefore there is no liability towards performance
warranty.
d) The Company does not have any remaining performance obligation as contracts entered for sale of goods are for a shorter
duration.
e) Disaggregation of revenue - Refer Note 57 for disaggregated revenue information. The management determines that the
segment information reported is sufficient to meet the disclosure objective with respect to disaggregation of revenue under
Ind AS 115 “Revenue from contracts with customers”.
f) Government grants recognized in the Statement of Profit and Loss

Incentives and subsidies (Refer Note (g) below) 3.19 50.29
Discounting income on interest free loan from State Government included in miscellaneous
income above. - 3.25
Total 3.19 53.54
g) Accrued for the GST refund claim, under various incentive schemes of State and Central Government. There are no
unfulfilled conditions or contingencies attached to these grants.

Note 38 - Other income

(Refer Note 3 (L) (III) and (IV) for accounting policy on interest income and dividends)
Interest income on
Bank deposits at effective interest rate method 106.21 191.58
Income tax refund - 17.96
Defined benefit obligation (net) (Refer Note 51) 0.15 -
Others 7.33 10.43
113.69 219.97
Dividend income from non-current investment
From subsidiary 131.58 131.58
From joint venture 2.75 2.50
134.33 134.08
Other non operating income
Gain on sale of current financial assets measured at FVTPL 8.26 10.82
Net gain on fair valuation of liquid mutual fund measured at FVTPL (Refer Note (a) below) 0.10 0.31
Gain on buy back of non-current investments - 0.94
Interest on income tax written back and others 29.22 5.77
Others 0.04 0.11
Total 285.64 372.00
Notes:
a) These instruments are measured at fair value through profit or loss in accordance with Ind AS 109.
b) Refer Note 55 (B) for information about fair value measurement.
Note 39 - Cost of materials consumed

Inventories at the beginning of the year 61.18 55.41
Add : Purchases during the year 1,152.87 880.65
1,214.05 936.06
Less : Inventories at the end of the year 79.80 61.18
Cost of materials consumed (Refer Note (a) and (b) below) 1,134.25 874.88
Notes:
a) Break-up of cost of materials consumed
Fly ash 529.53 421.73
Gypsum 288.70 204.50
Others (Refer Note (b) below) 316.02 248.65
Total 1,134.25 874.88
b) Includes no item which in value individually accounts for 10 % or more of the total value of materials consumed.
Note 40 - Purchases of stock-in-trade

Cement 331.54 158.75
Others 49.85 38.56
Total 381.39 197.31

Note 41 - Change in inventories of finished goods work-in-progress and stock-in-trade

Inventories at the end of the year
Stock in trade 2.56 2.18
680.83 297.46
Inventories at the beginning of the year
Stock in trade 2.18 1.46
297.46 411.54
Add: Trial run stocks, at the commencement of commercial production at Marwar plant 27.24 -
324.70 411.54
(Increase) / decrease in inventories (356.13) 114.08
Note 42 - Employee benefits expense

Salaries and wages 580.56 580.65
Contribution to provident and other funds 51.60 49.46
Employee stock option expenses (Refer Note 49) 3.83 1.00
Staff welfare expenses 41.66 37.67
Total 677.65 668.78
Note 43 - Finance costs

Interest on :
Income tax (net of interest income on refund - ` 15.50 crore; previous year - ` 61.84 crore) 24.78 18.10
Defined benefit obligation (net) (Refer Note 51) - 0.66
Others 32.02 27.62
70.28 61.72
Unwinding of financial liabilities 3.34 3.18
Unwinding of interest on lease liability (Refer Note (a) below) 15.22 16.81
Unwinding of mines reclamation provision (Refer Note 29) 2.10 1.34
Total 90.94 83.05
Notes:
a) On adoption of Ind AS 116 Leases, the Company has recognised Right-of-use assets and created lease obligation
representing present value of future minimum lease payments. The unwinding of such obligation is recognised as interest
expense.

Note 44 - Depreciation and amortisation expense

(Refer Note 3 (B) and 3 (D) for accounting policy on depreciation and amortisation)
Depreciation on property plant and equipment (Refer Note 4) 503.51 485.70
Less : Pre-operative charge during the year (Refer Note 8) - 5.18
503.51 480.52
Depreciation on Right-of-use assets (Refer Note 5) 36.46 35.41
Amortisation of intangible assets (Refer Note 7) 11.27 5.24
Total 551.24 521.17
Note 45 - Freight and forwarding expense

On finished products 2,439.96 2,155.69
On Internal material transfer 868.37 699.19
Total 3,308.33 2,854.88
Note 46 - Other expenses

Royalty on minerals 292.60 231.10
Consumption of stores and spare parts 274.28 224.82
Consumption of packing materials 501.02 344.97
Repairs 187.42 148.15
Rent (Refer Note 52) 62.31 57.99
Rates and taxes 108.11 92.02
Insurance 38.00 25.76
Technology and know-how fees 131.25 107.86
Advertisement 89.25 63.93
Corporate Social Responsibility (Refer Note (a) below) 64.02 52.31
Loss on account of exchange rate difference (net) 7.97 9.94
Miscellaneous expenses (Refer Note (b) below) 454.92 425.69
Total 2,211.15 1,784.54
Notes:
a) Corporate Social Responsibility Expenditure :
i) The Company is required to spend ` 36.57 crore (previous year ` 30.90 crore) towards Corporate Social Responsibility
i.e. 2% of the average profits for the last three financial years, calculated as per Section 198 of the Companies Act, 2013.
As approved by the Board of Directors, the Company has spent ` 64.41 crore (previous year ` 53.97 crore). ` 62.53 crore
(previous year - ` 52.31 crore) is included under head Corporate Social Responsibility in Other Expenses and the balance
` 1.87 crore (previous year ` 1.66 crore) is included under various other heads of the Statement of Profit and Loss.
ii) No amount has been spent on construction / acquisition of an asset of the Company and the entire amount has been
spent in cash.
iii) Details of excess amount spent under Section 135 (5) of the Companies Act, 2013
` in crore
Balance excess spent Amount required to be Amount spent CSR expenses claimed
Excess spent
as at 1st January 2021 spent during the year during the year in the current year
- 36.57 64.41 64.41 27.84

Note 46 - Other expenses (Contd.....)

b) Miscellaneous expenses :
i) Does not include any item of expenditure with a value of more than 1% of Revenue from operations.
ii) Includes expenses towards information technology, traveling, consultancy, site restoration, outsource services and
others.
iii) Includes payment to auditors (excluding taxes) as under :

Statutory auditor
Audit fees (including for quarterly limited reviews and financial statements for tax filing
purposes) 2.06 2.07
Other services 0.07 0.04
Reimbursement of expenses (Refer Note (c) below) - 0.03
2.13 2.14
Cost auditor
Audit Fee 0.09 0.10
Reimbursement of expenses - 0.02
0.09 0.12
Total 2.22 2.26
c) Denotes amount less than ` 50,000.
Note 47 - Earnings per share (EPS)

(Refer Note 3 (U) for accounting policy on earnings per share)
a) Basic EPS is calculated by dividing profit for the year attributable to equity shareholders of the Company by the weighted
average number of Equity shares outstanding during the year.
b) Diluted EPS amounts are calculated by dividing the profit attributable to equity shareholders of the Company by the
weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares
that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.
c) Calculation of the basic and diluted EPS :

i) Profit attributable to equity shareholders of the Company for basic and diluted EPS
(` in crore) 2,080.54 1,790.10
ii) Weighted average number of equity shares for basic EPS 1,985,645,229 1,985,645,229
Add : P
otential equity shares on exercise of rights and warrants kept in abeyance out of
the rights issue in 1992 319,824 315,403
iii) Weighted average number of shares for diluted EPS 1,985,965,053 1,985,960,632
iv) Earnings per equity share (in `)
Face value of equity per share 2.00 2.00
Basic 10.48 9.02
Diluted 10.48 9.01

Note 48 - Contingent Liabilities (to the extent not provided for)

(Refer Note 3 (J) (II) for accounting policy on contingent liability)
Contingent liabilities and claims against the Company not acknowledged as debts
related to various matters (Refer Note (a) below)
Labour 8.87 11.15
Land 18.97 47.28
Demand from Competition Commission of India (Refer Note (b) below) 1,898.06 1,767.74
Sales tax (Refer Note (c) below) 273.21 273.28
Excise customs and service tax (Refer Note (d) below) 258.20 254.85
Stamp duty (Refer Note (e) below) 310.34 305.88
Income tax (Refer Note (f) below) 486.38 488.79
Others 151.69 128.17
Total 3,405.72 3,277.14
Notes:
a) i) In respect of above matters, future cash outflows are determinable only on receipt of judgements / decisions pending
at various forums / authorities.
ii) The Company does not expect any reimbursements in respect of the above contingent liabilities.
iii) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where
provisions are required and disclosed as contingent liabilities where applicable in its financial statements. The
Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial
position.
b) Demand from Competition Commission of India

i) In 2012, the Competition Commission of India (CCI) had imposed a penalty of ` 1,163.91 crore on the Company,
concerning alleged contravention of the provisions of the Competition Act, 2002. On Company’s appeal, Competition
Appellate Tribunal (COMPAT), initially stayed the penalty and by its final order dated 11th December 2015, set aside
the order of the CCI, remanding the matter back to the CCI for fresh adjudication and for passing a fresh order.
After hearing the matter afresh, the CCI had again, by its order dated 31st August 2016, imposed a penalty of ` 1,163.91
crore on the Company. The Company filed an appeal against the said Order before the COMPAT. The COMPAT, vide
its interim order dated 21st November 2016 has stayed the penalty with a condition to deposit 10% of the penalty
amount, in the form of fixed deposit (the said condition has been complied with) and levy of interest of 12% p.a., in case
the appeal is decided against the appellant. Meanwhile, pursuant to the notification issued by Central Government
on 26th May 2017, any appeal, application or proceeding before COMPAT is transferred to National Company Law
Appellate Tribunal (NCLAT).
NCLAT, vide its Order dated 25th July 2018 dismissed the Company’s appeal and upheld the CCI’s order. Against
this, the Company appealed, to the Hon’ble Supreme Court, which by its order dated 5th October 2018 admitted the
appeal and directed to continue the interim order passed by the Tribunal, in the meantime.
ii) In a separate matter, pursuant to a reference filed by the Director, Supplies and Disposals, Government of Haryana,
the CCI by its Order dated 19th January 2017 had imposed a penalty of ` 29.84 crore on the Company. On Company’s
appeal, the COMPAT has stayed the operation of CCI’s order in the meanwhile. The matter is listed before NCLAT
and is pending for hearing.
Based on the advice of external legal counsels, the Company believes it has good grounds on merit for a successful appeal
in both the aforesaid matters. Accordingly, no provision is considered necessary and the matter has been disclosed as
contingent liability along with interest of ` 704.31 crore (31st December 2020 - ` 573.99 crore).

Note 48 - Contingent Liabilities (to the extent not provided for) (Contd.....)
c) Sales tax matter includes
A matter relating to 75% exemption from sales tax, granted by Government of Rajasthan. However, the eligibility of
exemption in excess of 25% was contested by the State Government in a similar matter of another Company.
In year 2014, pursuant to the unfavourable decision of the Hon’ble Supreme Court in that similar matter, the sales tax
department initiated proceedings for recovery of differential sales tax and interest thereon on the ground that the Company
had given an undertaking to deposit the differential amount of sales tax, in case decision of the Hon’ble Supreme Court
goes against in this matter.
Against the total demand of ` 247.97 crore, including interest of ` 134.45 crore (31st December 2020 - ` 247.97 crore,
including interest of ` 134.45 crore) the Company deposited ` 143.52 crore, including interest of ` 30.00 crore (31st
December 2020 - ` 143.52 crore, including interest of ` 30.00 crore) towards sales tax under protest and filed a Special
Leave Petition in the Hon’ble Supreme Court with one of the grounds that the tax exemption was availed by virtue of the
order passed by the Board for Industrial & Financial Reconstruction (BIFR) during the relevant period. On Company’s
petition, the Hon’ble Supreme Court has granted an interim stay on the balance interest. Based on the advice of external
legal counsel, the Company believes that, it has good grounds for a successful appeal. Accordingly, no provision is
considered necessary.
d) Excise, customs and service tax includes

A matter wherein service tax department issued show cause notices for denial of cenvat credit with regard to service tax
paid on outward transportation for sale to customers on Freight On Road (F.O.R.) basis. The Company availed the credit
based on legal provision and various judicial precedence. On the same matter of another cement company, the Hon’ble
Supreme Court has allowed service tax credit, however, in another case of the same company the Hon’ble Supreme Court
has decided against the assessee. Considering conflicting decision and Central Board of Excise and Customs (CBEC)
circular, based on legal opinion, the Company has treated the same as “possible”. Accordingly, ` 198.66 crore (31st
December 2020 - ` 196.46 crore) has been disclosed as contingent liability.
e) Stamp duty includes

A matter wherein the Collector of Stamps, Delhi vide its Order dated 7th August 2014, directed erstwhile Holcim (India)
Private Limited (HIPL), (merged with the Company), to pay stamp duty (including penalty) of ` 287.88 crore (31st December
2020 - ` 287.88 crore) on the merger order passed by Hon’ble High Court of Delhi, approving the merger of erstwhile Ambuja
Cement India Limited with HIPL. HIPL had filed a writ petition and the Hon’ble High Court of Delhi granted an interim stay.
Based on the advice of external legal counsel, the Company believes that it has good grounds for success in writ petition.
Accordingly, no provision is considered necessary.
f) Income tax includes

The Company was entitled to incentives from Government at its plant located in the states of Himachal Pradesh and Uttarakhand,
in respect of Income tax assessment years 2006-07 to 2015-16. The Company contended that the said incentives are in the
nature of capital receipts, and hence not liable to income tax. The Income tax department had, initially not accepted this position
and appeals were pending with the Commissioner of Income tax-appeals (CIT-A). The Company had received one favourable
order from the assessing officer and one appellate order from the CIT-A, against which the department filed an appeal in the
Income Tax Tribunal (ITAT). Considering unfavourable orders by the Income tax department, the Company up to 31st December
2017, had classified the risk for these matters as probable and provided for the same.
In the year 2018, the CIT-A decided the matter in favour of the Company for two more years, against which the department
filed an appeal in the ITAT.
In view of the series of repeated favourable orders by the Income tax department in the previous year, coupled with the
fact, that ACC Limited a subsidiary company also received favourable orders, the Company again reviewed the matter
and, after considering the legal merits of the Company’s claim, including inter-alia, the ratio of the decisions of Hon’ble
Supreme Court, and the pattern of favourable orders by the department including favourable disposal of the Company’s
appeal by the CIT (A), as mentioned above, the Company reassessed the risk and concluded that the risk of an ultimate
outflow of funds for this matter is no longer probable.
Pending final legal closure of this matter, income tax amount of ` 372.01 crore (31st December 2020 - ` 372.01 crore)
along with interest payable of ` 111.18 crore (31st December 2020 - ` 111.18 crore) has been disclosed under contingent
liabilities.

Note 49 - Share Based Payment

a) Description of plan - Holcim Performance Share Plan:
Holcim Limited (Erstwhile LafargeHolcim Limited), the Ultimate Holding Company, set up a performance share plan.
Performance shares are granted to executives and senior management for their contribution to the continuing success
of the business. These shares will be delivered after three year vesting period following the grant date and are subject to
internal performance conditions. Internal performance conditions are attached to the performance shares and are based
on Group Earnings per Share (EPS) and Group Return on Invested Capital (ROIC).
b) During the year 8,400 (previous year - 6,000) performance share at fair value of ` 4,426 (previous year - ` 3,352) per share
were granted and ` 3.83 crore (previous year – ` 1.00 crore) is charged to the Statement of Profit and Loss in respect of
equity-based payments transactions with a corresponding credit to the capital contribution from parent under other equity.
c) Information related to the Performance share plan granted is presented below (in number)
Opening Balance 10,200 6,000
Add : Granted during the year 8,400 6,000
Less : Forfeited during the year - 1,800
Closing Balance 18,600 10,200
d) Fair value of shares granted is determined based on the estimated achievement of Holcim Limited’s (Erstwhile LafargeHolcim
Limited) Earnings per Share, Return on Invested Capital and Sustainability indicators.
Note 50 - Capital and Other Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for
(net of advances) 529.21 843.89
Note:
a) For commitments relating to lease arrangements, Refer Note 52.
Note 51 - Employee benefits

(Refer Note 3 (M) for accounting policy on retirement and other employee benefits)
a) Defined contribution plans
Amount recognised and included in Note 42 “Contribution to Provident and Other Funds” (including contribution to
provident fund trust referred in note (g) below) of the Statement of Profit and Loss ` 28.21 crore (previous year - ` 27.91
crore).
b) Defined benefit plans - as per actuarial valuation

The Company has defined benefit gratuity and provident fund managed by trust. Funded plan includes gratuity benefit to
every employee who has completed service of five years or more, at 15 days salary for each completed year of service (on
last drawn basic salary) in accordance with Payment of Gratuity Act, 1972. The scheme is funded with insurance company
in the form of qualifying insurance policies.

Note 51 - Employee benefits (Contd.....)

c) Investment strategy
The gratuity and provident fund has the form of a trust and it is governed by the Board of Trustees. The Board of Trustees
is responsible for the administration of the plan assets including investment of the funds in accordance with the norms
prescribed by the Government of India. The trust has developed policy guidelines for the allocation of assets to different
classes with the objective of controlling risk and maintaining the right balance between risk and long-term returns in order
to limit the cost to the Company of the benefits provided. To achieve this, investments are well diversified, such that the
failure of any single investment would not have a material impact on the overall level of assets.
The Board of Gratuity trust and the Company review the level of funding including the asset-liability matching strategy and
assessment of the investment risk and accordingly the Company decides its contribution.
i) Investment risk : As the plan assets include significant investments in quoted debt and equity instruments, the
Company is exposed to the risk of impacts arising from fluctuation in interest rates and risks associated with equity
market.
ii) Interest rate risk : The defined benefit obligation calculated uses a discount rate based on government bonds. All
other aspects remaining same, if bond yields fall the defined benefit obligation will tend to increase.
iii) Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that include
mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is
not straight forward and depends upon the combination of salary increase, medical cost inflation, discount rate and
vesting criteria.
iv) Salary Inflation risk : All other aspects remaining same, higher than expected increases in salary will increase the
defined benefit obligation.
v) Longevity risk : The present value of the defined benefit plan liability is calculated by reference to the best estimate
of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the
plan participants will increase the plan’s liability.
d) Summary of the components of net benefit / expense recognised in the Statement of Profit and Loss, the funded status
and amounts recognised in the Balance Sheet for the respective defined benefits plans is as under :
2021 2020
Particulars Funded Funded
I Expense recognised in the Statement of Profit and Loss
1 Current service cost 11.61 10.35
2 Interest cost 9.28 8.88
3 Past service cost - -
4 Interest (income) on plan assets (9.66) (8.73)
5 Amount recognized in the Statement of Profit and Loss 11.23 10.50
II Re-measurements recognised in other comprehensive Income (OCI)
1 Demographic change (0.40) -
2 Change in financial assumptions (4.76) 10.31
3 Experience changes (1.01) 3.44
4 Return on plan assets (excluding interest income) (1.32) (2.66)
5 Amount recognised in OCI (7.49) 11.09
III Net asset / (liability) recognised in the Balance Sheet
1 Present value of defined benefit obligation 159.62 157.37
2 Fair value of plan assets 159.34 155.83
3 Funded status [surplus / (deficit)] (0.28) (1.54)
4 Net asset / (liability) (0.28) (1.54)


2021 2020
Particulars Funded Funded
IV Change in defined benefit obligation during the year
1 Present value of defined benefit obligation at the beginning of the year 157.37 137.27
3 Interest service cost 9.28 8.88
4 Actuarial (gains) / losses recognised in other comprehensive income
- Demographic changes (0.40) -
- Change in financial assumptions (4.76) 10.31
- Experience changes (1.01) 3.44
5 Benefit payments (12.47) (12.88)
6 Curtailment - -
7 Net transfer in on account of business combinations / others - -
8 Present value of defined benefit obligation at the end of the year (Refer Note (i)
below) 159.62 157.37
V Change in fair value of assets during the year
1 Plan assets at the beginning of the year 155.83 128.32
2 Interest income 9.66 8.73
3 Contribution by employer 5.00 29.00
4 Actual benefit paid (12.47) (12.88)
5 Return on plan assets (excluding interest income) 1.32 2.66
6 Plan assets at the end of the year 159.34 155.83
VI Weighted average duration of defined benefit obligation 10 years 10 years
VII Maturity profile of defined benefit obligation
1 Within the next 12 months 24.34 17.69
2 Between 1 and 5 years 70.14 60.67
3 Between 5 and 10 years 78.47 83.52
VIII Sensitivity analysis for significant assumptions (Refer Note (i) & (ii) below)
Present value of defined benefits obligation at the end of the year (for change in 100
basis points)
1 For increase in discount rate by 100 basis points 150.85 147.53
2 For decrease in discount rate by 100 basis points 169.41 168.40
3 For increase in salary rate by 100 basis points 169.29 168.21
4 For decrease in salary rate by 100 basis points 150.79 147.51
5 For increase in medical inflation rate by 100 basis points NA NA
6 For decrease in medical inflation rate by 100 basis points NA NA
IX The major categories of plan assets as a percentage of total plan
Qualifying insurance policy with Life Insurance Corporation of India (LIC)
(Refer Note (v) below) 100% 100%
2021 2020
Particulars
X Expected cash flows
1) Expected employer contribution in the next year 24.34 17.69
2) Expected benefit payments
Year 1 24.34 17.69
Year 2 16.13 15.52
Year 3 17.22 14.47
Year 4 17.38 14.26
Year 5 19.41 16.43
6 to 10 years 78.47 83.51
Total Expected benefit payments 172.95 161.88


As at As at
Particulars
XI Actuarial Assumptions
1) Financial Assumptions
Discount rate (Refer Note (ii) below) 6.75% 6.25%
Salary escalation (Refer Note (iii) below) 7.00% 7.00%
2) Demographic Assumptions
Expected average remaining working lives of employees 9.70 9.92
Disability rate 5% mortality rates 5% mortality rates
Expected rate of return on plan assets 6.80% 6.80%
Retirement age 58 - 60 years 58 - 60 years
Mortality pre-retirement Indian Assured Lives Indian Assured Lives
Mortality (IALM) Mortality (IALM)
(2012-14) Ultimate (2012-14) Ultimate
Mortality post-retirement Not Applicable Not Applicable
Turnover rate Past Service upto
26 years : 5% and
5% above 26 years : 1%
Notes:
i) Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected
salary increase and mortality. These sensitivities have been calculated to show the movement in defined benefit
obligation in isolation and assuming there are no changes in market conditions at the reporting date. There have been
no changes from the previous periods in the methods and assumptions used in preparing the sensitivity analysis.
ii) The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet
date for the estimated term of the obligations.
iii) The estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion
and other relevant factors such as supply and demand in the employment market.
iv) Basis used to determine expected rate of return on assets
The Company has considered the current level of returns declared by LIC, i.e. 6.80% to develop the expected long-
term return on assets for funded plan of gratuity.
v) In the absence of detailed information regarding plan assets which is funded with LIC the composition of each major
category of plan assets the percentage or amount for each category to the fair value of plan assets has not been
disclosed.
e) Amount recognised as expense in respect of compensated absences is ` 7.12 crore (previous year - ` 12.21 crore).
f) The Company expects to make contribution of ` 24.34 crore (previous year - ` 17.69 crore) to the defined benefit plans
during the next year.
g) Provident Fund managed by a trust set up by the Company

Provident Fund for certain eligible employees is managed by the Company through a trust “Ambuja Cements Staff Provident
Fund Trust”, in line with the Provident Fund and Miscellaneous Provisions Act, 1952. The plan guarantees interest at the
rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with the interest
accumulated thereon are payable to employees at the time of separation from the Company or retirement, whichever is
earlier. The benefits vests immediately on rendering of the services by the employee.
The minimum interest rate payable by the trust to the beneficiaries every year is being notified by the Government. The
Company has an obligation to make good the shortfall, if any, between the return from the investments of the trust and
the notified interest rate.
The Company has obtained the actuarial valuation of interest rate obligation in respect of Provident Fund and shortfall of
` 6.02 crore (previous year - ` 6.80 crore) is recognised in the Statement of Profit and Loss. The Company has contributed
` 5.79 crore (previous year- ` 4.55 crore) towards provident fund liability.


Provident Fund managed by a trust - Defined benefit plans as per actuarial valuation
I) Components of expense recognised in the Statement of Profit and Loss
2 Interest Cost 9.46 13.23
3 Interest Income (9.23) (12.70)
Total 5.03 5.41
II) Amount recognised in the Balance Sheet
1 Present value of Defined Benefit Obligation (157.91) (148.58)
3 Funded status (Surplus / (Deficit)) (6.02) (6.80)
4 Net asset / (liability) as at end of the year (Refer Note (ii) below) (6.02) (6.80)
III) Present Value of Defined Benefit Obligation
1 Present value of Defined Benefit Obligation at beginning of the year 148.58 153.97
4 Benefits paid and transfer out (11.40) (24.55)
5 Employee Contributions 7.39 8.24
6 Transfer in / (Out) Net 0.69 2.09
7 Actuarial (gains) / losses (1.61) (9.28)
Present value of Defined Benefit Obligation 157.91 148.58
IV) Fair Value of Plan Assets
2 Return on plan assets including interest income 9.23 12.70
3 Contributions by Employer 5.79 4.55
4 Contributions by Employee 7.39 8.24
6 Asset Gain / (Loss) (1.59) (7.51)
7 Actual benefits paid (11.40) (24.55)
V) Amounts recognised in Other Comprehensive Income
1 Actuarial (Gain) / Loss on Liability (1.61) (9.28)
2 Actuarial (Gain) / Loss on Plan assets 1.59 7.51
Total (0.02) (1.77)
VI) Weighted Average duration of Defined Benefit Obligation 9.30 years 10.08 years
VII) The major categories of plan assets as a percentage of total plan - -
1 Special deposits scheme 11% 12%
2 Government Securities 61% 67%
3 Debentures and Bonds 20% 19%
4 Mutual Fund 8% 2%
100% 100%
VIII) The assumptions used in determining the present value of obligation of
the interest rate guarantee under deterministic approach are:
1 Discounting rate 6.75% 6.25%
2 Guaranteed interest rate 8.50% 8.50%


IX) Sensitivity analysis for factors mentioned in Actuarial Assumptions (Refer Note (i) below)
As at As at
Particulars 31 December 2021 31 December 2020
1 Discount rate (1% increase) 157.37 148.14
2 Discount rate (1% decrease) 158.56 149.09
3 Interest rate guarantee (1% increase) 165.16 155.57
4 Interest rate guarantee (1% decrease) 154.13 145.33
Notes:
i) The sensitivity analysis presented above may not be representative of the actual change in the defined benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the
defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period
which is the same as that applied in calculating the defined benefit obligation recognised in the Balance Sheet. There
was no change in the methods and assumptions used in preparing the sensitivity analysis from previous year.
ii) In respect of Provident Fund, only liability and not surplus is recognised in the Balance Sheet.
iii) The Company expects to contribute ` 4.50 crore (previous year - ` 5.00 crore) to the trust managed Provident Fund
in next year.
Note 52 - Leases
(Refer Note 3 (Q) and (X) for accounting policy on leases)
A) Transition Disclosure for Indian Accounting Standard (Ind AS) 116 - “Leases”
The Company has adopted Ind AS 116 effective 1st January 2020, using the modified retrospective approach without
restatement of the comparative period. Leases that were accounted for as operating leases in accordance with Ind AS 17
Leases, are recognised at the present value of the remaining lease payments starting 1st January 2020, and discounted
with the incremental borrowing rate as of that date. Furthermore, the Company has chosen the option whereby the right-
of-use asset is equal to the lease liability at the initial application of Ind AS 116.
The following is the summary of practical expedients elected on initial application:

i) Applied a single discount rate to a portfolio of leases with reasonably similar characteristics.
ii) Excluded the initial direct costs from the measurement of the Right-of-use assets (ROU) at the date of initial application.
iii) The Company has relied on its previous assessment on whether leases are onerous. There were no onerous contracts
as at 1st January 2020
iv) The Company has not re-assessed whether a contract is or contains a lease at the date of initial application.
Accordingly, Ind AS 116 is applied only to contracts that were previously identified as leases under Ind AS 17.
v) For lease arrangement in respect of ships, the Company has not separated non-lease components from lease
components and instead account for each lease component, and any associated non-lease component as a single
lease component.
a) Reconciliation of undiscounted operating lease commitments as of 31st December 2019 to the recognised lease

liability as of 1st January 2020.
Particulars ` in crore
Operating lease commitments as of 31st December 2019 241.74
Non lease component for ships 201.84
Exemption of commitments for short-term leases (9.84)
Exemption of commitments for leases of low value assets (0.28)
Undiscounted future lease payments from operating leases 433.46
Effect of discounting (89.03)
Total lease liability recognised as of 1st January 2020 344.43

Note 52 - Leases (Contd.....)

b) The above approach has resulted in recognition of below category wise right to use assets
As at
Particulars 1st January 2020
` in crore
Leasehold land 20.28
Building and installation 8.51
Ships and tugs 315.64
Total 344.43
c) The effect of implementing Standard in the Statement of Profit and Loss is as under
For the year ended
Particulars 31st December, 2020
` in crore
Decrease in expenses
Freight and forwarding expense 37.57
Rent expenses (included in other expenses) 3.90
41.47
Increase in expenses
Depreciation and amortisation expense 35.04
Finance costs 16.81
Foreign exchange (gain)/loss (included in other expenses) 6.93
58.78
d) The Company has entered into long-term leasing arrangements for land which has been assessed as finance lease
since the present value of the minimum lease payments is substantially similar to the fair value of the leasehold land.
These arrangements do not involve any material recurring payments.The Company has reclassified these assets
from Property, Plant and Equipment and other non-current assets to Right-of-use assets pursuant to adoption of
Ind AS 116.
As at 1st January 2020

Particulars Gross Accumulated Net
carrying Value Depreciation carrying value
Property, Plant and Equipment 32.57 1.01 31.56
Other non-current Assets 33.94 - 33.94
Total 66.51 1.01 65.50
e) The operating cash outflow for the year ended 31st December 2021 has increased by ` 42.68 crores (previous year -
` 43.07 crore), the financing cashflows have decreased by ` 42.68 crore (previous year - ` 43.07 crore) as repayment
of lease liability and interest portion of lease payment.There is no commitment for leases not yet commenced as at
31st December 2021.
WARM for lease contracts in

` USD
0 to 2 years 8.35% 4.53%
3 to 4 years 8.35% 4.53%
5 to 6 years 8.44% 4.61.%
7 to 8 years 8.66% 4.84%
> 8 years 8.66% 4.84%
B) Disclosure as per Ind AS 116:

a) Company as lessee
The Company’s lease asset classes primarily consist of leases for godowns, flats, land, Plant and Equipment, office
premises and other premises. There are no restrictions imposed by lease arrangements. There are no subleases.
b) The Company has a ship on lease arrangement with the Contract currency in USD, hence the lease payment is
calculated in USD.


c) The operating cash outflow for the year ended 31st December 2021 has increased by ` 42.68 crore (previous year -
` 43.07 crore), the financing cashflows have decreased by ` 42.68 crore (previous year - ` 43.07 crore) as repayment
of lease liability and interest portion of lease payment.There is no commitment for leases not yet commenced as at
31st December 2021.
d) The movement in lease liabilities is as follows :

As at As at
Additions during the year 4.02 0.35
Finance cost accrued during the period 15.22 16.81
Lease Modification (0.11) (0.18)
Payment of lease liabilities (42.68) (43.07)
Unrealised loss 3.71 6.93
Termination of lease contracts (0.63) (0.75)
Current 42.90 27.88

Non-current 261.15 296.64
Total 304.05 324.52
e) Lease Expenses recognised in Statement of Profit and Loss, not included in the measurement of lease
liabilities:
Expense relating to short-term leases and low-value assets 62.31 57.99
Total 62.31 57.99
f) The maturity analysis of lease liabilities are disclosed in Note 56 (C) - Liquidity risk
Note 53 - Disclosure pursuant to SEBI (Listing obligations and disclosure requirements) regulations 2015 and Section 186
(4) of the Companies Act 2013 :
Particulars Maximum balance Maximum balance

Outstanding Outstanding
outstanding during outstanding during
balance balance
the year the year
Unsecured loans to wholly owned subsidiaries :
a) Dirk India Private Limited 37.94 37.94 37.94 37.94
For working capital requirement carrying interest
@ 12% p.a. (Provision against loans and interest
receivable thereon has been made)
b) Chemical Limes Mundwa Private Limited 1.43 1.43 1.43 1.43
For working capital requirement. Repayment on
call basis and carrying interest rate in the range of
@ 9% p.a. to 12% p.a
c) M.G.T Cements Private limited 0.02 0.02 0.01 0.01
(For working capital requirement. Repayment on
call basis and carrying interest rate in the range of
@ 9% p.a. to 10.55% p.a.)
Notes:
i) None of the loanees have made investment in the shares of the Company.
ii) Details of investments made is given in Note 9.
iii) Outstanding loans as disclosed above does not include interest accrued thereon.

Note 54 - Related party disclosure

I) Name of related parties
A) Names of the related parties where control exists
Sr Name Nature of Relationship
1 Holcim Limited (Erstwhile LafargeHolcim Limited), Switzerland Ultimate Holding Company
2 Holderfin B.V, Netherlands Intermediate Holding Company
3 Holderind Investments Limited, Mauritius Holding Company
4 ACC Limited Subsidiary
5 M.G.T. Cements Private Limited Subsidiary
6 Chemical Limes Mundwa Private Limited Subsidiary
7 Dang Cement Industries Private Limited, Nepal Subsidiary
8 Dirk India Private Limited Subsidiary
9 OneIndia BSC Private Limited Subsidiary
10 Wardha Vaalley Coal Field Private Limited Joint Operation (Refer Note 63)
11 ACC Mineral Resources Limited Subsidiary of ACC Limited
12 Lucky Minmat Limited Subsidiary of ACC Limited
13 National Limestone Company Private Limited Subsidiary of ACC Limited
(Ceased to be a subsidiary w.e.f. 18th November 2020)
14 Singhania Minerals Private Limited Subsidiary of ACC Limited
15 Bulk Cement Corporation (India) Limited Subsidiary of ACC Limited
B) Others, with whom transactions have taken place during the current year and /or previous year
i) Related parties
1 Holcim Group Services Limited, Switzerland Fellow Subsidiary
2 Holcim Technology Limited, Switzerland Fellow Subsidiary
3 Holcim Services (South Asia) Limited Fellow Subsidiary
4 LafargeHolcim Energy Solutions S.A.S., France Fellow Subsidiary
5 Lafarge Africa PLC, Nigeria Fellow Subsidiary
6 Lafarge Holcim Global Hub Services Private Limited Fellow Subsidiary
7 Holcim Philippines, Inc., Philippines Fellow Subsidiary
8 Lafarge Umiam Mining Private Limited Fellow Subsidiary
9 Holcim (Australia) Pty Ltd, Australia Fellow Subsidiary
10 Lafargeholcim Investment Co Ltd, China Fellow Subsidiary
11 Holcim Trading Limited, Switzerland (Erstwhile LH Trading Ltd) Fellow Subsidiary
12 Lafarge Zementwerke GMBH Fellow Subsidiary
13 Counto Microfine Products Private Limited Joint Venture
14 Ambuja Cements Limited Staff Provident Fund Trust Trust (Post-employment benefit plan)
15 Ambuja Cements Limited Employees Gratuity Fund Trust Trust (Post-employment benefit plan)
16 Ambuja Cement Foundation Trust (Corporate Social Responsibility Trust)
17 Ambuja Vidya Niketan Trust Trust (Corporate Social Responsibility Trust)
18 Ambuja Hospital Trust Trust (Corporate Social Responsibility Trust)

Note 54 - Related party disclosure (Contd.....)

ii) Key Management Personnel (KMP)
In accordance with Ind AS 24 - Related Party Disclosures and the Companies Act, 2013, following personnels are
considered as KMP.

1 Mr. N.S. Sekhsaria Principal Founder, Non Executive Chairman, Non Independent Director
2 Mr. Jan Jenisch Vice Chairman, Non Executive, Non Independent Director
3 Mr. Martin Kriegner Non Executive, Non Independent Director
4 Mr. Christof Hassig Non Executive, Non Independent Director
5 Mr. Roland Kohler Non Executive, Non Independent Director (upto 10th December 2020)
6 Mr Ramanathan Muthu Non Executive, Non Independent Director (with effect from 23rd December 2020)
7 Ms. Then Hwee Tan Non Executive, Non Independent Director
8 Mr. Ranjit Shahani Non Executive, Non Independent Director
9 Mr. Praveen Kumar Molri Non Executive, Non Independent Director
10 Mr. Mahendra Kumar Sharma Non Executive, Non Independent Director
11 Ms. Shikha Sharma Non Executive, Independent Director
12 Mr. Nasser Munjee Non Executive, Independent Director
13 Mr. Rajendra P. Chitale Non Executive, Independent Director
14 Mr. Shailesh Haribhakti Non Executive, Independent Director
15 Dr. Omkar Goswami Non Executive, Independent Director
16 Mr. Bimlendra Jha Managing Director & Chief Executive Officer (Upto 20th February 2020)
17 Mr. Neeraj Akhoury Managing Director & Chief Executive Officer (with effect from 21st February 2020)
18 Ms. Sonal Shrivastava Chief Financial Officer (Upto 31st August 2020)
19 Ms. Rajani Kesari Chief Financial Officer (with effect from 1st September 2020)
20 Mr. Rajiv Gandhi Company Secretary
II) Transactions with related party

For the period ended For the year ended
A) Transactions with subsidiaries
1 Purchase of goods
Dirk India Private Limited - 0.09
ACC Limited 479.34 221.10
479.34 221.19
2 Purchase of Asset
ACC Limited 0.73 -
0.73 -
3 Sale of Asset
ACC Limited 17.42 -
17.42 -
4 Sale of goods
888.21 517.21
5 Rendering of services
33.06 33.80
6 Interest income
Dirk India Private Limited 4.55 4.56
Chemical Limes Mundwa Private Limited 0.16 0.15
4.71 4.71


7 Receiving of services
OneIndia BSC Private Limited - 14.76
59.35 72.29
8 Dividend Received
131.58 131.58
9 Other recoveries
23.20 7.33
10 Other payments
22.72 9.41
11 Inter corporate deposits and loans
Chemical Limes Mundwa Private Limited - 0.15
M.G.T. Cements Private Limited 0.01 -
0.01 0.15
As at As at
B) Outstanding balances with subsidiary Companies
1 Loans / inter corporate deposits given outstanding
Unsecured, Considered good
M.G.T. Cements Private Limited 0.02 0.01
Unsecured, where significant increase in credit risk (provision made)
39.39 39.38
2 Amount receivable
Unsecured, where significant increase in credit risk (interest on loans), (provision
made)
109.69 78.35
3 Amount payable
38.76 27.01


C) Transactions with fellow subsidiaries during the year
1 Purchase of goods
LafargeHolcim Energy Solutions S.A.S., France - 225.54
Holcim Trading Limited, Switzerland (Erstwhile LH Trading Ltd) 199.03 -
199.03 225.54
2 Sale of Fixed Assets
Holcim Services (South Asia) Limited - 0.01
- 0.01
Holcim Group Services Limited, Switzerland 0.17 0.16
Holcim Technology Limited, Switzerland 131.25 107.86
Lafargeholcim Investment Co Ltd, China 0.16 -
Holcim Services (South Asia) Limited 39.52 47.04
Lafarge Holcim Global Hub Services Private Limited 22.42 9.69
Lafarge Zementwerke GMBH 0.29 -
193.81 164.75
7.47 2.41
5 Other recoveries
LafargeHolcim Energy Solutions S.A.S., France 0.44 0.58
Lafarge Africa PLC, Nigeria - 0.01
Holcim Philippines, Inc., Philippines - 0.14
Lafarge Umiam Mining Private Limited - 0.17
Holcim (Australia) Pty Ltd, Australia - 0.08
2.88 2.13
6 Other payments
0.93 4.07


As at As at
D) Outstanding balances with fellow subsidiary Companies
1 Amount payable
Lafarge Holcim Global Hub Services Private Limited 1.75 -
41.77 31.72
2 Amount receivable
3.29 2.42

E) Transactions with holding company during the year
1 Dividend paid
Holderind Investments Limited, Mauritius 125.32 2,318.34
125.32 2,318.34

F) Transactions with joint ventures during the year
Counto Microfine Products Private Limited 3.62 3.53
3.62 3.53
2 Sale of Goods
Counto Microfine Products Private Limited 0.02 -
0.02 -
3 Dividend Received
2.75 2.50
4 Buy back of shares
Counto Microfine Products Private Limited - 2.25
- 2.25
As at As at
G) Outstanding balances with joint ventures
1 Amount receivable
0.76 -


H) Transactions with Key Management Personnel
1 Remuneration (Refer Note (a) and (b) below)
Mr. Neeraj Akhoury 11.54 6.17
Mr. Bimlendra Jha - 11.42
Ms. Sonal Shrivastava - 1.94
Ms. Rajani Kesari 6.15 1.18
Mr. Rajiv Gandhi 1.41 1.24
19.10 21.95
2 Break-up of remuneration
Short term employment benefit 18.18 21.20
Post employment benefits 0.52 0.44
Other long term benefits 0.12 0.16
Employee share based payments (Refer Note 49) 0.28 0.15
19.10 21.95
3 Commission, sitting fees and advisory fee
Mr. N.S. Sekhsaria 0.54 0.56
Mr. Martin Kriegner (Refer Note (g) below) - -
Mr. Christof Hassig 0.23 0.26
Mr. Nasser Munjee 0.45 0.47
Mr. Rajendra P. Chitale 0.55 0.57
Mr. Shailesh Haribhakti 0.42 0.47
Dr. Omkar Goswami 0.45 0.44
Mr. Jan Jenisch 0.23 0.23
Mr. Roland Kohler - 0.24
Ms. Then Hwee Tan 0.40 0.42
Mr. Mahendra Kumar Sharma 0.38 0.26
Ms. Shikha Sharma 0.41 0.44
Mr. Ranjit Shahani 0.25 0.26
Mr. Praveen Kumar Molri 0.23 0.25
Mr. Ramanathan Muthu 0.23 0.01
4.77 4.88
23.87 26.83
Notes:
a) Does not include provision towards gratuity and leave encashment which is provided based on actuarial valuation on
an overall Company basis.
b) Remuneration includes performance incentive paid in respective year which is related to the performance of preceding
year except to the extent of performance incentive to Mr. Neeraj Akhoury, MD and CEO being paid every six months
as per agreement.
c) Contribution to Ambuja Cements Limited Staff Provident Fund Trust :
The Company is required to contribute a specified percentage of the employee compensation for eligible employees
towards provident fund. The Company makes monthly contribution to a trust specified for this purpose. During the
year ended 31st December 2021, the Company has contributed ` 5.79 crore (previous year - ` 4.55 crore).
d) Contribution to Ambuja Cements Limited Employees Gratuity Fund Trust :
The Company maintains gratuity trust for the purpose of administering the gratuity payment to its employees. During
the year ended 31st December 2021, the Company has contributed ` 5.00 crore (previous year - ` 29 crore).
e) During the year the Company has contributed ` 47.70 crore (previous year - ` 39.00 crore) to Ambuja Cement
Foundation, ` 5.98 crore (previous year - ` 5.92 crore) to Ambuja Vidya Niketan Trust, ` 3.70 crore (previous year - `
4.60 crore) to Ambuja Hospital Trust towards Corporate social responsibility obligations
f) The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length
transactions. The Company has not recorded any loss allowances for trade receivables from related parties (previous
year - Nil).
g) Mr. Martin Kriegner has waived his right to receive Directors’ commission and sitting fees.
h) Transaction with related parties disclosed are inclusive of applicable taxes.

Note 55 - Financial instruments

(Refer Note 3 (H) for accounting policy on fair value measurement)
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in
a current transaction between willing parties, other than in a forced or liquidation sale.
A) Classification of financial assets and liabilities

Particulars Notes Carrying value Fair value Carrying value Fair value
Financial assets
a) Measured at amortised cost
Cash and cash equivalents 16 3,509.62 3,509.62 2,642.60 2,642.60
Bank balances other than cash and cash
equivalents 17 178.37 178.37 207.43 207.43
Trade Receivables 15 293.17 293.17 191.51 191.51
Loans 11, 18 6.28 6.28 5.37 5.37
Other financial assets 12, 19 543.68 543.68 692.15 692.15
4,531.12 4,531.12 3,739.06 3,739.06
b) Measured at fair value through profit and
loss (FVTPL)
Cash and cash equivalents - investments in
liquid mutual funds 16 475.08 475.08 74.31 74.31
Investment in unquoted equity instruments 10 9.20 9.20 4.50 4.50
484.28 484.28 78.81 78.81
Total (a+b) 5,015.40 5,015.40 3,817.87 3,817.87
Financial liabilities
Trade payables 1,144.40 1,144.40 880.90 880.90
Lease liabilities 304.05 304.05 324.52 324.52
Other financial liabilities 28, 34 872.67 872.67 736.86 736.86
Interest free loan from State Government 26 46.94 46.94 43.60 43.60
2,368.06 2,368.06 1,985.88 1,985.88
loss (FVTPL)
Foreign currency forward contract 34 3.26 3.26 1.04 1.04
Total (a+b) 2,371.32 2,371.32 1,986.92 1,986.92

Note 55 - Financial instruments (Contd.....)

B) Income and Expenses on Financial Instruments
Interest income and expenses, gains or losses recognised on financial assets and liabilities in the Statement of Profit and
Loss are as follows:
Income on Financial Instruments
Financial assets measured at amortised cost
Interest income 38 113.54 202.01
Impairment losses on trade receivables (including reversals of impairment losses) 2.19 13.78
Financial assets measured at fair value through profit or loss
Gain on sale of current financial assets 38 8.26 10.82
Net gain on fair valuation of liquid mutual fund 38 0.10 0.31
Total 124.09 226.92
Expenses on Financial Instruments
Financial liabilities measured at amortised cost
Net Exchange losses on revaluation or settlement of items denominated in
foreign currency (trade payable) 46 2.05 8.92
Interest expenses on deposits from dealers 43 13.48 15.34
Interest expense on lease liability 43 15.22 16.81
Financial liabilities measured at fair value through profit or loss
Net Loss on foreign currency forward contract 46 5.92 1.02
Total 36.67 42.09
Net Income recognised in the Statement of Profit and Loss 87.42 184.83
C) Fair value measurements

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by
valuation techniques:
a) Level 1
This level includes those financial instruments which are measured by reference to quoted prices (unadjusted) in
active markets for identical assets or liabilities.
b) Level 2
This level includes financial assets and liabilities measured using inputs other than quoted prices included within Level
1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
c) Level 3
This level includes financial assets and liabilities measured using inputs that are not based on observable market data
(unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions
that are neither supported by prices from observable current market transactions in the same instrument nor are they
based on available market data.


D) For assets and liabilities which are measured at fair value the classification of fair value calculations by category
is summarised below
As at 31st As at 31st
Valuation techniques
Particulars Notes December 2021 December 2020 Level
and key inputs
Financial assets
a) Measured at fair value through
the statement of profit and loss
(FVTPL)
Cash and cash equivalents - Investment in liquid and short term
investments in liquid mutual funds mutual funds which are classified
as FVTPL are measured using net
assets value at the reporting date
16 475.08 74.31 1 multiplied by the quantity held.
Investment in unquoted equity Using discounted cash flow method.
instruments (other than subsidiaries
and joint ventures) 10 9.20 4.50 3
a) Measured at fair value through
the statement of profit and loss
(FVTPL)
Foreign currency forward contract The fair value of forward foreign
exchange contract is calculated
as the present value determined
using forward exchange rates at the
34 3.26 1.04 2 reporting date.
Note:
a) There was no transfer between level 1 and level 2 fair value measurement.
Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures
are required)
In the Company’s opinion the carrying amount of loans, other financial assets, trade receivables, cash and cash equivalents
excluding investments in liquid mutual funds, bank balances other than cash and cash equivalents, other financial liabilities
(excluding derivative financial instruments) and trade payable recognised in the financial statement approximate their fair
values largely due to the short-term maturities of these instruments.
Note 56 - Financial risk management objectives and policies

The Company has a system-based approach to risk management, established policies and procedures and internal financial
controls aimed at ensuring early identification, evaluation and management of key financial risks such as market risk, credit risk
and liquidity risk that may arise as a consequence of its business operations as well as its investing and financing activities.
Accordingly, the Company’s risk management framework has the objective of ensuring that such risks are managed within
acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulations.
All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills,
experience and supervision. It is the Company’s policy that no trading in derivatives for speculative purposes shall be undertaken.
The Company’s management is supported by a risk management committee that advises on financial risks and the appropriate
financial risk governance framework for the Company. The risk management committee provides assurance to the Company’s
management that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial
risks are identified measured and managed in accordance with the Company’s policies and risk objectives. The Board of
Directors reviews policies for managing each of these risks, which are summarised below.

Note 56 - Financial risk management objectives and policies (Contd.....)

A) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risks a) commodity price risk b) currency risk and c) interest rate risk.
Financial instruments affected by market risk comprise deposits, investments, trade payables.
The Company is not an investor in equity market. The Company is virtually debt-free and its deferred payment liabilities
do not carry interest, the exposure to interest rate risk from the perspective of financial liabilities is negligible. Further,
treasury activities, focused on managing investments in debt instruments are administered under a set of approved policies
and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within
acceptable risk parameters after due evaluation.
The Company’s investments are predominantly held in fixed deposits and liquid mutual funds (debt market). Mark to market
movements in respect of the Company’s investments are valued through the Statement of Profit and Loss. Fixed deposits
are held with highly rated banks, have a short tenure and are not subject to interest rate volatility.
Assumption made in calculating the sensitivity analysis

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. The
analysis excludes the impact of movements in market variables on the carrying values of gratuity and other post - retirement
obligations and provisions.
a) Commodity risk
Commodity price risk for the Company is mainly related to fluctuations in coal and pet coke prices linked to various external
factors, which can affect the production cost of the Company. Since the energy costs is one of the primary costs
drivers, any fluctuation in fuel prices can lead to a drop in operating margin. To manage this risk, the Company take
following steps:
i) Optimizing the fuel mix, pursue longer term and fixed contracts where considered necessary.
ii) Consistent efforts to reduce the cost of power and fuel by using both domestic and international coal and petcoke.
iii) Use of alternative Fuel and Raw Materials (AFR) and enhancing the utilisation of renewable power including its
onsite and offsite solar, wind, hydro power and Waste Heat Recovery System (WHRS).
Additionally, processes and policies related to such risks are reviewed and controlled by senior management and fuel
requirements are monitored by the central procurement team.


b) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily
to the Company operating activities. The aim of the Company’s approach to manage currency risk is to leave the
Company with no material residual risk. The Company is not exposed to significant foreign currency risk. Based on
sensitivity analysis, the Company has well defined forex exposure threshold limit approved by Board of Directors,
beyond which all forex exposure are fully hedged.
The total carrying amount of foreign currency denominated financial liabilities, are as follows
Particulars Foreign currency Foreign currency
in crore in crore
Trade payable and other financial liabilities
(Unhedged)
CHF 0.22 - 0.08 -
EURO 4.86 0.06 1.55 0.02
GBP - - 0.05 -
JPY 1.19 1.78 0.20 0.28
SEK 0.44 0.05 0.34 0.04
SGD - - 0.01 -
USD 130.77 1.82 148.28 2.04
Total 137.48 150.51
Foreign exchange derivatives
USD (Hedged) - Forward contracts against imports
and services (Refer Note (i) below) 216.46 2.85 167.71 2.26
Note :
i) This does not include the firm commitment
Foreign currency sensitivity on unhedged exposure (1% increase / decrease in foreign exchange rates will have
the following impact on profit before tax).
Particulars 1% 1% 1% 1%
strengthening of ` weakening of ` strengthening of ` weakening of `
Trade payable and other financial liabilities
(Unhedged)
CHF 0.01 (0.01) - -
EURO 0.05 (0.05) 0.01 (0.01)
GBP - - - -
JPY 0.01 (0.01) - -
SEK 0.01 (0.01) - -
SGD - - - -
USD 1.31 (1.31) 1.48 (1.48)
Increase / (Decrease) in profit 1.39 (1.39) 1.49 (1.49)
In the Company’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because
the exposure at the end of the reporting period does not reflect the exposure during the year / in future years.


c) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates
primarily to the security deposit taken from its dealers.
Interest risk exposure

As at As at
Interest bearing
Security deposit from dealers 34 500.34 490.39
Non-interest bearing
Current maturities of non-current borrowings 34 3.44 -
Interest free loan from State Government 26 43.50 43.60
Total 547.28 533.99
Interest rate sensitivities for unhedged exposure (Refer Note (i) below)
Security deposit from dealers
Impact of increase in 100 bps would decrease profit by 5.00 4.90
Impact of decrease in 100 bps would increase profit by (5.00) (4.90)
Note :
i) Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date have
been outstanding for the entire reporting period.
B) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables)
and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions
and other financial instruments. The Company has no significant concentration of credit risk with any counterparty.
Financial assets for which loss allowance is measured using lifetime Expected Credit Losses (ECL)
As at As at
Trade receivables 15 25.87 23.68
Financial assets other than trade receivables
Loans to subsidiary 11 37.94 37.94
Loans to joint operation 11 1.10 1.04
Interest receivable from subsidiary 12 9.22 9.22
Other receivable 19 12.03 12.14
60.29 60.34
Total 86.16 84.02
Trade receivables
Trade receivables consist of a large number of customers. The Company has credit evaluation policy for each customer and
based on the evaluation credit limit of each customer is defined. The exposure in credit risk arising out of major customers
is generally backed either by bank guarantee, letter of credit or security deposits.
The Company’s exposure and wherever appropriate the credit ratings of its counterparties are continuously monitored
and spread amongst various counterparties. Credit exposure is controlled by counterparty limits that are reviewed and
approved by the management of the Company.
The Company does not have higher concentration of credit risks since no single customer accounted for 10% or more of
the Company’s net sales.


Ageing of trade receivables (Refer Note 15) :
As at As at
Up to 6 months 288.95 183.26
More than 6 months 30.09 31.93
Total 319.04 215.19
Impaired (25.87) (23.68)
Total 293.17 191.51

The exposure to the Company arising out of this category consists of balances with banks investments in liquid mutual
funds (debt markets), incentives receivables from government and loans which do not pose any material credit risk. Such
exposure is also controlled, reviewed and approved by the management of the Company on routine basis. There are no
indications that defaults in payment obligations would occur in respect of these financial assets.
Credit risk on cash and cash equivalent. deposits with the banks / financial institutions is generally low as the said deposits
have been made with the banks / financial institutions who have been assigned high credit rating by international and
domestic credit rating agencies.
Investments of surplus funds are made only with approved financial Institutions. Investments primarily include investment
in units of liquid mutual funds (debt market) and fixed deposits with banks having low credit risk.
Total non-current investments (other than subsidiaries and joint arrangements) and investments in liquid mutual funds as
on 31st December 2021 are ` 9.20 crore and ` 475.08 crore (31st December 2020 - ` 4.50 and ` 74.31 crore)
Balances with banks were not past due or impaired as at year end. Other than the details disclosed below, other financial
assets are not past due and not impaired, there were no indications of default in repayment as at year end.
Expected credit loss assessment

The Company has used a practical expedient by computing the expected loss allowance for financial assets based on
historical credit loss experience and adjustments for forward looking information. As per simplified approach, the Company
makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default
payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves
higher risk.
Movement in expected credit loss allowance of trade receivables

As at As at
Balance at the beginning of the year 23.68 9.90
Add : provided during the year 5.39 15.23
Less : reversal of provisions 3.20 1.45
Balance at the end of the year 25.87 23.68
Expected credit loss provision in respect of financial assets other than trade receivables comprise of loans extended to
subsidiary and joint operation of the company
Movement in expected credit loss allowance of financial assets other than trade receivables
As at As at


C) Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable
price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of credit facilities to meet obligations when due. The Company’s treasury team is
responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such
risks are overseen by senior management. Management monitors the Company’s liquidity position through rolling forecasts
on the basis of expected cash flows. The Company has invested in short term liquid funds which can be redeemed on a
very short notice and hence carried negligible liquidity risk.
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date
based on undiscounted contractual payments.
Contractual maturities
Carrying amount
Particulars Less than 1 year 1 - 5 Years More than 5 year Total
` in crore
As at 31st December 2021
Borrowings 46.94 3.59 46.16 8.47 58.22
Lease liabilities 304.05 44.40 182.67 149.49 376.56
Trade payables 1,144.40 1,144.40 - - 1,144.40
Other financial liabilities
(Refer Note (a) below) 875.93 879.24 0.13 - 879.37
Total 2,371.32 2,071.63 228.96 157.96 2,458.55
Borrowings 43.60 - 49.75 8.47 58.22
Lease liabilities 324.52 49.49 184.74 184.32 418.55
Trade payables 880.90 880.90 - - 880.90
(Refer Note (a) below) 737.90 737.77 0.13 - 737.90
Total 1,986.92 1,668.16 234.62 192.79 2,095.57
Note:
a) Other financial liabilities includes deposits received from customers amounting to ` 500.34 crore (31st December 2020
- ` 490.39 crore). These deposits do not have a contractual re-payment term but are repayable on demand. Since, the
Company does not have an unconditional right to defer the payment beyond 12 months from reporting date, these
deposits have been classified under current financial liabilities. For including these amounts in the above mentioned
maturity analysis, the Company has assumed that these deposits including interest thereon, will be repayable at the
end of the next reporting period. The actual maturity period for the deposit amount and the interest thereon can differ
based on the date on which these deposits are settled to the customers.

Note 57 - Segment reporting

(Refer Note 3 (R) for accounting policy on segment reporting)
A) The principal business of the Company is manufacturing and sale of Cement and Cement Related Products. All other activities
of the Company revolve around its principal business. The Executive Committee of the Company, has been identified as the
Chief Operating Decision Maker (CODM). The CODM evaluates the Company’s performance, allocates resources based on
analysis of the various performance indicators of the Company as a single unit. CODM have concluded that there is only one
operating reportable segment as defined under IND AS 108 “Operating Segments”, i.e. Cement and Cement Related Products.
B) Geographical Information
The Company operates in geographical areas of India (country of domicile) and others (outside India).
Revenues from customers Non-current assets (Refer Note (a) below)
For the year ended For the year ended As at As at
31st December 2021 31st December 2020 31st December 2021 31st December 2020
a) Within India 13,793.56 11,174.97 9,261.55 8,644.09
b) Outside India (Refer Note (b) below) - - - -
Total 13,793.56 11,174.97 9,261.55 8,644.09
Notes:
a) As per Ind AS 108 “Operating Segments” non current assets include assets other than financial instruments, deferred
tax assets, post-employment benefit assets and rights arising under insurance contracts (i) located in the entity’s
country of domicile and (ii) located in all foreign countries in total in which the entity holds assets.
b) Company does not have revenue outside India.
C) Information about major customers

During the year ended 31st December 2021 and 31st December 2020, no single customer who contributes 10% or more
to the Company’s revenue.
Note 58 - Proposed Amalgamation of a Subsidiary

During the year 2019, the Board of Directors has approved the amalgamation of Dirk India Private Limited (DIPL), a wholly owned
subsidiary with the Company with effect from 1st January 2020 in terms of the scheme of amalgamation, subject to regulatory
approval. The application for merger is filed with the National Company Law Tribunal (NCLT) Mumbai and NCLT Ahmedabad.
Pending regulatory approval the impact of the proposed amalgamation is not given in these financial statements.
Note 59 - Exceptional Items

During the year ended 31st December 2021, there was a charge of ` 65.69 crore on account of restructuring costs to employees
and contract staff.
Note 60 - Risk due to outbreak of COVID-19 pandemic

The Company has considered the possible effects that may result from COVID-19 in the preparation of these financial statement
including the recoverability of carrying amounts of financial and non-financial assets. The Company has, at the date of approval
of the financial statement, used internal and external sources of information and expects that the carrying amount of the assets
will be recovered. The impact of COVID-19 on the Company’s financial statements may differ from that estimated as at the date
of approval of the same.
Note 61 - In December 2020, the CCI initiated an investigation against cement companies in India including the Company
regarding alleged anti-competitive behaviour and conducted search and seizure operations in December 2020 against few
companies. The Company has provided the information sought. The Company is of the firm view that it has acted and continues
to act in compliance with competition laws. The Company is continuing to cooperate with the regulator. The Company believes
that this does not have any impact on the financial statement.

Note 62 - Code on social Security, 2020

The new Code on Social Security, 2020 (Code) has been enacted, which could impact the contributions by the Company towards
Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified and the rules are
yet to be framed. The Company will complete its evaluation and will give appropriate impact in its financial statements in the
period in which the Code becomes effective and the related rules are published.
Note 63 - Financial information in respect of joint operations that are not individually material
The Company has interest in a joint operation “Wardha Vaalley Coal Field Private Limited”. The Company’s interest are accounted
on a line-by-line basis by adding together the book value of like items of assets, liabilities, income, expenses and cash flow in
the Standalone Financial Statements. Summarised financial information of the joint operation is given below:
As at As at
% and ` in crore % and ` in crore
Shareholding in % 27.27% 27.27%
Aggregate information of joint operation
The Company's share of profit / (loss) (0.11) (0.11)
The Company's share of total comprehensive income (0.11) (0.11)
Note 64 - Figures below ` 50,000 have not been disclosed.
Note 65 - The Company has reclassified security deposits as below to give effect to incremental changes in Division II to
Schedule III to the Companies Act, 2013
Previously
Revised amount Change
Description Notes reported amount
` in crore ` in crore ` in crore
Balance Sheet
Non-current financial assets
Loans 11 76.35 0.94 75.41
Other financial assets 12 537.92 613.33 (75.41)

DIN - 00276351 DIN - 00015986

Company Secretary Director Managing Director &
DIN - 00077715 Chief Executive Officer
DIN - 07419090

Consolidated Accounts
INDEPENDENT AUDITOR’S REPORT
To The Members of Ambuja Cements Limited Emphasis of Matter

We draw attention to Notes 50(b)(i) & 50(b)(ii) to the consolidated
Report on the Audit of the Consolidated Financial Statements financial statements which describes the following matters:
Opinion a. In terms of the order dated 31st August, 2016, the
We have audited the accompanying consolidated financial Competition Commission of India (CCI) had imposed a
statements of Ambuja Cements Limited (”the Parent”/“the penalty of ` 2,311.50 crores for alleged contravention
Company”) and its subsidiaries, (the Parent and its of the provisions of the Competition Act, 2002 (the
subsidiaries together referred to as “the Group”) which Competition Act) by the Parent and ACC Limited (a
includes the Group’s share of profit in its associates and joint subsidiary of the Parent). On appeal by the Parent and
ventures, which comprise the Consolidated Balance Sheet ACC Limited, National Company Law Appellate Tribunal
as at 31st December 2021, and the Consolidated Statement (NCLAT), which replaced the Competition Appellate
of Profit and Loss (including Other Comprehensive Income), Tribunal (COMPAT) effective 26th May, 2017, in its order
the Consolidated Cash Flow Statement and the Consolidated passed on 25th July, 2018 had upheld the CCI’s Order.
Statement of Changes in Equity for the year then ended, The appeals by the Parent and ACC Limited against the
and a summary of significant accounting policies and other said judgement of NCLAT before the Hon’ble Supreme
explanatory information (hereinafter referred to as "the Court were admitted vide its order dated 5th October,
consolidated financial statements"), and which includes five 2018 with a direction that the interim order passed by the
joint operations of the Group accounted on proportionate Tribunal would continue.
basis.
b. In a separate matter, pursuant to a reference filed by the
In our opinion and to the best of our information and Government of Haryana, the CCI vide its order dated 19th
according to the explanations given to us, and based on the January, 2017 had imposed penalty of ` 65.16 crores for
consideration of reports of the other auditors on separate alleged contravention of the provisions of the Competition
financial statements of the joint operations, subsidiaries, Act by the Parent and ACC Limited. On appeal by the
associates and joint ventures referred to in the Other Matters Parent and ACC Limited together with application for
section below, the aforesaid consolidated financial statements interim stay against payment of penalty, COMPAT has
give the information required by the Companies Act, 2013 (“the stayed the penalty pending hearing of the application.
Act”) in the manner so required and give a true and fair view in The matter is listed before the NCLAT for hearing.
conformity with the Indian Accounting Standards prescribed
under section 133 of the Act read with the Companies (Indian Based on the assessment of the Parent and ACC Limited on
Accounting Standards) Rules, 2015, as amended (‘Ind AS’), and the outcome of these appeals supported by the advice of
other accounting principles generally accepted in India, of the external legal counsel, both the companies are of the view
consolidated state of affairs of the Group as at 31st December, that no provision is necessary in respect of these matters in
2021, and their consolidated profit, their consolidated total these Consolidated Financial Statements.
comprehensive income, their consolidated cash flows and
their consolidated changes in equity for the year ended on Our opinion is not modified in respect of these matters.
that date.
Key Audit Matters
Basis for Opinion Key audit matters are those matters that, in our professional
We conducted our audit of the consolidated financial statements judgment, were of most significance in our audit of the
in accordance with the Standards on Auditing specified consolidated financial statements of the current period. These
under section 143 (10) of the Act (SAs). Our responsibilities matters were addressed in the context of our audit of the
under those Standards are further described in the Auditor’s consolidated financial statements as a whole, and in forming
Responsibility for the Audit of the Consolidated Financial our opinion thereon, and we do not provide a separate opinion
Statements section of our report. We are independent of the on these matters. We have determined the matters described
Group, its associates and joint ventures in accordance with the below to be the key audit matters to be communicated in our
Code of Ethics issued by the Institute of Chartered Accountants report.
of India (ICAI) together with the ethical requirements that are
relevant to our audit of the consolidated financial statements
under the provisions of the Act and the Rules made thereunder,
and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the ICAI’s Code of
Ethics. We believe that the audit evidence obtained by us and
the audit evidence obtained by the other auditors in terms of
their reports referred to in the Other Matters section below,
is sufficient and appropriate to provide a basis for our audit
opinion on the consolidated financial statements.

Sr.
Key Audit Matters Auditor’s Responses
No.
1. Litigation, Claims and Contingent Liabilities: Principal audit procedures performed:
(Refer Notes 3M and 50, read along with Emphasis of Matter • We understood the processes, evaluated the design and
in Independent Auditor’s Report of the consolidated financial implementation of controls and tested the operating effectiveness
statements) of the Group’s controls over the recording and re-assessment of
The Group is exposed to a variety of different laws, regulations uncertain legal positions, claims (including claims receivable) and
and interpretations thereof which encompasses indirect taxation contingent liabilities.
and legal matters. In the normal course of business, provisions • We held discussions with senior management including the person
and contingent liabilities may arise from legal proceedings, responsible for legal and compliance to obtain an understanding
including regulatory and other Governmental proceedings, of the factors considered by management in classification of the
constructive obligations as well as investigations by authorities matter as ‘probable’, ‘possible’ and ‘remote’.
and commercial claims. • For those matters where management concluded that no
Based on the nature of regulatory and legal cases management provision should be recorded, we also considered the adequacy
applies significant judgement when considering whether, and and completeness of the Group disclosures made in relation to
how much, to provide for the potential exposure of each matter. contingent liabilities.
These estimates could change substantially over time as new • Examined the Group’s legal expenses on sample basis and read
facts emerge as each legal case or matters progresses. the minutes of the board meetings and the legal compliance
Given the different views possible, basis the interpretations, committee in order to ensure completeness.
complexity and the magnitude of the potential exposures, and • We read the correspondence from Court authorities and considered
the judgement necessary to determine required disclosures, this legal opinion obtained by the management from external law
is a key audit matter. firms to evaluate the basis used for provisions recognised or the
disclosures made in the consolidated financial statements.
• We also obtained direct legal confirmations for significant
matters from the law firms handling such matters to corroborate
management’s conclusions.
2. Income tax provision : Principal audit procedures performed:
(Refer Notes 3S, 31, 32 and 50 of the consolidated financial • Our audit procedures to test uncertain tax positions included
statements) understanding processes, evaluation of design and implementation
This matter has been identified as a Key Audit Matter due to of controls and testing of operating effectiveness of the Group’s
the significant level of management judgement required in the controls over provision for taxation, assessment of uncertain tax
estimation of provision for income taxes including any write positions and disclosure of contingencies.
back of provisions, due to the following factors: • Obtained details of completed tax assessments and demands as
• Existence of multiple uncertain tax positions leading to of December 31, 2021 from the management.
multiple disputes / litigations • We discussed with appropriate senior management personnel,
• Provision for tax involves interpretation of rules and law. independently assessed management’s estimate of the possible
It also involves consideration of on-going disputes and outcome of the disputed cases; and evaluated the Management’s
disclosures of related contingencies. underlying key assumptions in estimating the tax provision.
• We considered legal precedence and other rulings in evaluating
management’s position on these uncertain tax positions, the
provisions made, and/or write back of the provisions.
• We also involved our direct tax specialist in evaluating
management’s assessment for the uncertain tax positions.
• For those matters where management concluded that no
provision should be recorded, we also considered the adequacy
and completeness of the Group’s disclosures made in relation to
contingent liabilities.
Information Other than the Financial Statements and • In connection with our audit of the consolidated financial
Auditor’s Report Thereon statements, our responsibility is to read the other
• The Parent’s Board of Directors is responsible for the other information, compare with the financial statements of the
information. The other information comprises the information joint operation, subsidiaries, joint ventures and associates
included in the Director’s report and Management audited by the other auditors, to the extent it relates to these
Discussion and Analysis, Report on Corporate Governance entities and, in doing so, place reliance on the work of the
and Business Responsibility report, but does not include other auditors and consider whether the other information
the consolidated financial statements, standalone financial is materially inconsistent with the consolidated financial
statements and our auditor’s report thereon. statements or our knowledge obtained during the course of
our audit or otherwise appears to be materially misstated.
• Our opinion on the consolidated financial statements does Other information so far as it relates to the joint operations,
not cover the other information and we do not express any subsidiaries, joint ventures and associates, is traced from
form of assurance conclusion thereon. their financial statements audited by the other auditors.
• If based on the work we have performed, we conclude that
there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report
in this regard.

Management’s Responsibility for the Consolidated As part of an audit in accordance with SAs, we exercise
Financial Statements professional judgment and maintain professional skepticism
The Parent’s Board of Directors is responsible for the matters throughout the audit. We also:
stated in section 134(5) of the Act with respect to the preparation
of these consolidated financial statements that give a true and • Identify and assess the risks of material misstatement of
fair view of the consolidated financial position, consolidated the consolidated financial statements, whether due to fraud
financial performance including other comprehensive income, or error, design and perform audit procedures responsive
consolidated cash flows and consolidated changes in equity to those risks, and obtain audit evidence that is sufficient
of the Group including its associates and joint ventures in and appropriate to provide a basis for our opinion. The
accordance with the Ind AS and other accounting principles risk of not detecting a material misstatement resulting
generally accepted in India. The respective Board of from fraud is higher than for one resulting from error, as
Directors of the companies included in the Group and of its fraud may involve collusion, forgery, intentional omissions,
associates and joint ventures are responsible for maintenance misrepresentations, or the override of internal control.
of adequate accounting records in accordance with the • Obtain an understanding of internal financial control relevant
provisions of the Act for safeguarding the assets of the Group to the audit in order to design audit procedures that are
and its associates and its joint ventures and for preventing appropriate in the circumstances. Under section 143(3)(i) of
and detecting frauds and other irregularities; selection and the Act, we are also responsible for expressing our opinion
application of appropriate accounting policies; making on whether the Parent has adequate internal financial
judgements and estimates that are reasonable and prudent; controls system in place and the operating effectiveness
and design, implementation and maintenance of adequate of such controls.
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting • Evaluate the appropriateness of accounting policies used
records, relevant to the preparation and presentation of the and the reasonableness of accounting estimates and
financial statements that give a true and fair view and are free related disclosures made by the management.
from material misstatement, whether due to fraud or error, • Conclude on the appropriateness of management’s use of
which have been used for the purpose of preparation of the the going concern basis of accounting and, based on the
consolidated financial statements by the Directors of the audit evidence obtained, whether a material uncertainty
Parent, as aforesaid. exists related to events or conditions that may cast significant
doubt on the ability of the Group and its associates and joint
In preparing the consolidated financial statements, the ventures to continue as a going concern. If we conclude
respective Board of Directors of the companies included that a material uncertainty exists, we are required to draw
in the Group and of its associates and joint ventures are attention in our auditor’s report to the related disclosures in
responsible for assessing the ability of the respective entities the consolidated financial statements or, if such disclosures
to continue as a going concern, disclosing, as applicable, are inadequate, to modify our opinion. Our conclusions are
matters related to going concern and using the going concern based on the audit evidence obtained up to the date of our
basis of accounting unless the respective Board of Directors auditor’s report. However, future events or conditions may
either intends to liquidate their respective entities or to cease cause the Group and its associates and joint ventures to
operations, or has no realistic alternative but to do so. cease to continue as a going concern.
The respective Board of Directors of the companies included • Evaluate the overall presentation, structure and content
in the Group and of its associates and joint ventures are also of the consolidated financial statements, including the
responsible for overseeing the financial reporting process of disclosures, and whether the consolidated financial
the Group and of its associates and joint ventures. statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Auditor’s Responsibility for the Audit of the Consolidated • Obtain sufficient appropriate audit evidence regarding
Financial Statements the financial information of the entities or business
Our objectives are to obtain reasonable assurance about activities within the Group and its associates and joint
whether the consolidated financial statements as a whole ventures to express an opinion on the consolidated
are free from material misstatement, whether due to fraud financial statements. We are responsible for the direction,
or error and to issue an auditor’s report that includes our supervision and performance of the audit of the financial
opinion. Reasonable assurance is a high level of assurance statements of such entities or business activities included
but is not a guarantee that an audit conducted in accordance in the consolidated financial statements of which we are
with SAs will always detect a material misstatement when it the independent auditors. For the other entities or business
exists. Misstatements can arise from fraud or error and are activities included in the consolidated financial statements,
considered material if, individually or in the aggregate, they which have been audited by the other auditors, such other
could reasonably be expected to influence the economic auditors remain responsible for the direction, supervision
decisions of users taken on the basis of these consolidated and performance of the audits carried out by them. We
financial statements. remain solely responsible for our audit opinion.

Materiality is the magnitude of misstatements in the Report on Other Legal and Regulatory Requirements
consolidated financial statements that, individually or in As required by Section 143(3) of the Act, based on our audit and
aggregate, makes it probable that the economic decisions of on the consideration of the reports of the other auditors on the
a reasonably knowledgeable user of the consolidated financial separate financial statements of the joint operations, subsidiaries,
statements may be influenced. We consider quantitative associates and joint ventures referred to in the Other Matter
materiality and qualitative factors in (i) planning the scope of section above we report, to the extent applicable that:
our audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in the a) We have sought and obtained all the information and
consolidated financial statements. explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit of
We communicate with those charged with governance of the the aforesaid consolidated financial statements.
Parent and such other entities included in the consolidated
financial statements of which we are the independent auditors b) In our opinion, proper books of account as required by
regarding, among other matters, the planned scope and law relating to preparation of the aforesaid consolidated
timing of the audit and significant audit findings, including financial statements have been kept so far as it appears
any significant deficiencies in internal control that we identify from our examination of those books and the reports of
during our audit. the other auditors.
We also provide those charged with governance with a c) The Consolidated Balance Sheet, the Consolidated
statement that we have complied with relevant ethical Statement of Profit and Loss including Other
requirements regarding independence, and to communicate Comprehensive Income, the Consolidated Cash Flow
with them all relationships and other matters that may Statement and the Consolidated Statement of Changes
reasonably be thought to bear on our independence, and in Equity dealt with by this Report are in agreement with
where applicable, related safeguards. the relevant books of account maintained for the purpose
of preparation of the consolidated financial statements.
From the matters communicated with those charged with
governance, we determine those matters that were of d) In our opinion, the aforesaid consolidated financial
most significance in the audit of the consolidated financial statements comply with the Ind AS specified under
statements of the current period and are therefore the key Section 133 of the Act.
audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure e) On the basis of the written representations received
about the matter or when, in extremely rare circumstances, from the directors of the Parent as on 31st December,
we determine that a matter should not be communicated in 2021 taken on record by the Board of Directors of the
our report because the adverse consequences of doing so Company and the reports of the statutory auditors of
would reasonably be expected to outweigh the public interest its joint operation companies, subsidiary companies,
benefits of such communication. associate companies and joint venture companies
incorporated in India, none of the directors of the Group
Other Matter companies, its associate companies and joint venture
We did not audit the financial statements of seven subsidiaries companies incorporated in India is disqualified as on 31st
(which includes four joint operations of a subsidiary), whose December, 2021 from being appointed as a director in
financial statements reflect total assets of ` 120.35 crores terms of Section 164 (2) of the Act.
as at 31st December, 2021, total revenues of ` 31.15 crores
and net cash inflows amounting to ` 7.29 crores for the f) With respect to the adequacy of the internal financial
year ended on that date, as considered in the consolidated controls over financial reporting and the operating
financial statements. The consolidated financial statements effectiveness of such controls, refer to our separate
also include the Group’s share of net profit of ` 20.24 crores Report in “Annexure A” which is based on the auditors’
for the year ended 31st December, 2021, as considered in the reports of the Parent, subsidiary companies, associate
consolidated financial statements, in respect of two associates companies and joint venture companies incorporated in
and two joint ventures, whose financial statements have not India. Our report expresses an unmodified opinion on the
been audited by us. These financial statements have been adequacy and operating effectiveness of internal financial
audited by other auditors whose reports have been furnished controls over financial reporting of those companies.
to us by the Management and our opinion on the consolidated
financial statements, in so far as it relates to the amounts and g) With respect to the other matters to be included in the
disclosures included in respect of these subsidiaries, joint Auditor’s Report in accordance with the requirements of
ventures and associates, and our report in terms of subsection section 197(16) of the Act, as amended,
(3) of Section 143 of the Act, in so far as it relates to the
aforesaid subsidiaries, joint ventures and associates is based In our opinion and to the best of our information
solely on the reports of the other auditors. and according to the explanations given to us, the
remuneration paid by the Parent to its directors during
Our opinion on the consolidated financial statements above the year is in accordance with the provisions of section
and our report on Other Legal and Regulatory Requirements 197 of the Act.
below, is not modified in respect of the above matters with
respect to our reliance on the work done and the reports of
the other auditors.

h) With respect to the other matters to be included in iii) There has been no delay in transferring amounts,
the Auditor’s Report in accordance with Rule 11 of the required to be transferred, to the Investor Education
Companies (Audit and Auditors) Rules, 2014, as amended and Protection Fund by the Parent and its subsidiary
in our opinion and to the best of our information and companies, associate companies and joint venture
according to the explanations given to us: companies incorporated in India, on the basis of
information available with the Group.
i) The consolidated financial statements disclose the
impact of pending litigations on the consolidated For DELOITTE HASKINS AND SELLS LLP
financial position of the Group, its associates Chartered Accountants
and joint ventures - Refer Notes 50 and 51 in the (Firm’s Registration No. 117366W/W-100018)
consolidated financial statements;
Saira Nainar
ii) The Group, its associates and joint ventures did not (Partner)
have any material foreseeable losses on long-term (Membership No. 040081)
contracts including derivative contracts. (UDIN: 22040081ACYQCW4402)
Place : Mumbai
Date : 17th February, 2022
ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1 (f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date
on the consolidated financial statements of Ambuja Cements Limited as at and for the year ended 31st December, 2021)
Report on the Internal Financial Controls Over Financial Auditor’s Responsibility

Reporting under Clause (i) of Sub-section 3 of Section 143 of Our responsibility is to express an opinion on the internal
the Companies Act, 2013 (“the Act”) financial controls over financial reporting of the Parent, its
In conjunction with our audit of the consolidated financial subsidiary companies, its associate companies and its joint
statements of the Company as of and for the year ended ventures, which are companies incorporated in India, based
31st December, 2021, we have audited the internal financial on our audit. We conducted our audit in accordance with
controls over financial reporting of Ambuja Cements Limited the Guidance Note on Audit of Internal Financial Controls
(hereinafter referred to as “the Parent / Company”) and its Over Financial Reporting (the “Guidance Note”) issued
subsidiary companies, its associate companies and joint by the Institute of Chartered Accountants of India and the
ventures, which are companies incorporated in India, as of Standards on Auditing, prescribed under Section 143(10) of the
that date. Companies Act, 2013, to the extent applicable to an audit of
internal financial controls. Those Standards and the Guidance
Note require that we comply with ethical requirements and plan
Management’s Responsibility for Internal Financial and perform the audit to obtain reasonable assurance about
Controls whether adequate internal financial controls over financial
The respective Board of Directors of the Parent, its subsidiary reporting was established and maintained and if such controls
companies, its associate companies and joint ventures, operated effectively in all material respects.
which are companies incorporated in India, are responsible
for establishing and maintaining internal financial controls Our audit involves performing procedures to obtain audit
based on the internal control over financial reporting criteria evidence about the adequacy of the internal financial
established by the respective Companies considering the controls system over financial reporting and their operating
essential components of internal control stated in the Guidance effectiveness. Our audit of internal financial controls over
Note on Audit of Internal Financial Controls Over Financial financial reporting included obtaining an understanding of
Reporting issued by the Institute of Chartered Accountants internal financial controls over financial reporting, assessing
of India (ICAI). These responsibilities include the design, the risk that a material weakness exists, and testing and
implementation and maintenance of adequate internal financial evaluating the design and operating effectiveness of internal
controls that were operating effectively for ensuring the orderly control based on the assessed risk. The procedures selected
and efficient conduct of its business, including adherence to depend on the auditor’s judgement, including the assessment
the respective company’s policies, the safeguarding of its of the risks of material misstatement of the financial statements,
assets, the prevention and detection of frauds and errors, whether due to fraud or error.
the accuracy and completeness of the accounting records,
and the timely preparation of reliable financial information, as We believe that the audit evidence we have obtained and the
required under the Companies Act, 2013. audit evidence obtained by the other auditors of the subsidiary
companies, associate companies and joint ventures, which

are companies incorporated in India, in terms of their reports Opinion

referred to in the Other Matters paragraph below, is sufficient
and appropriate to provide a basis for our audit opinion on In our opinion to the best of our information and according to
the internal financial controls system over financial reporting of the explanations given to us and based on the consideration
the Parent, its subsidiary companies, its associate companies of the reports of the other auditors referred to in the Other
and its joint ventures, which are companies incorporated in Matters paragraph below, the Parent, its subsidiary companies,
India. its associate companies and its joint ventures, which are
companies incorporated in India, have, in all material respects,
an adequate internal financial controls system over financial
Meaning of Internal Financial Controls Over Financial reporting and such internal financial controls over financial
Reporting reporting were operating effectively as at 31st December,
A company’s internal financial control over financial reporting is 2021, based on the criteria for internal financial control over
a process designed to provide reasonable assurance regarding financial reporting established by the respective companies
the reliability of financial reporting and the preparation of considering the essential components of internal control stated
financial statements for external purposes in accordance in the Guidance Note on Audit of Internal Financial Controls
with generally accepted accounting principles. A company’s Over Financial Reporting issued by the Institute of Chartered
internal financial control over financial reporting includes those Accountants of India.
policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly Other Matters
reflect the transactions and dispositions of the assets of the
Company; (2) provide reasonable assurance that transactions Our aforesaid report under Section 143(3)(i) of the Act on the
are recorded as necessary to permit preparation of financial adequacy and operating effectiveness of the internal financial
statements in accordance with generally accepted accounting controls over financial reporting insofar as it relates to six
principles, and that receipts and expenditures of the Company subsidiary companies, two associate companies and two joint
are being made only in accordance with authorisations ventures, which are companies incorporated in India, is based
of management and directors of the Company; and (3) solely on the corresponding reports of the auditors of such
provide reasonable assurance regarding prevention or timely companies incorporated in India.
detection of unauthorised acquisition, use, or disposition of
the Company’s assets that could have a material effect on the Our opinion is not modified in respect of the above matters.
financial statements.
For DELOITTE HASKINS & SELLS LLP
Inherent Limitations of Internal Financial Controls Over (Firm’s Registration No. 117366W / W-100018)
Financial Reporting
Because of the inherent limitations of internal financial controls Saira Nainar
over financial reporting, including the possibility of collusion (Partner)
or improper management override of controls, material (Membership No. 040081)
misstatements due to error or fraud may occur and not be (UDIN: 22040081ACYQCW4402)
detected. Also, projections of any evaluation of the internal Place : Mumbai
financial controls over financial reporting to future periods Date : 17th February, 2022
are subject to the risk that the internal financial control over
financial reporting may become inadequate because of
changes in conditions, or that the degree of compliance with
the policies or procedures may deteriorate.

Consolidated Balance Sheet
as at 31st December 2021
As at As at
ASSETS
1 Non-current assets
a) Property, plant and equipment 4 13,661.89 11,885.36
b) Right-of-use assets 5 497.87 503.87
c) Capital work-in-progress (Refer Note 4(g)) 2,196.38 2,421.85
d) Goodwill 6 7,869.69 7,876.11
e) Other intangible assets 7 224.11 220.63
f) Investments in associates and joint ventures 9 170.51 154.60
g) Financial assets
i) Investments 10 27.60 12.70
ii) Loans 12 11.56 12.45
iii) Other financial assets 13 1,255.12 1,383.92
h) Non-current tax assets (net) (Refer Note 32) 1,125.86 1,100.29
i) Deferred tax assets (net) 2.91 2.91
j) Other non-current assets 14 1,141.36 1,341.18
Total - Non-current assets 28,184.86 26,915.87
2 Current assets
a) Inventories 15 2,738.04 1,648.58
b) Financial assets
i) Trade receivables 16 645.83 561.13
ii) Cash and cash equivalents 17 11,358.49 8,571.56
iii) Bank balances other than cash and cash equivalents 18 335.80 364.07
iv) Loans 19 9.91 8.85
v) Other financial assets 20 474.25 399.56
c) Current tax assets (net) - 71.26
d) Other current assets 21 1,434.66 1,153.69
16,996.98 12,778.70
e) Non-current assets classified as held for sale 22 25.44 26.13
Total - Current assets 17,022.42 12,804.83
TOTAL - ASSETS 45,207.28 39,720.70
EQUITY AND LIABILITIES
Equity
a) Equity share capital 23 397.13 397.13
b) Other equity 26 24,956.61 22,360.47
Equity attributable to owners of the Company 25,353.74 22,757.60
c) Non controlling interest 7,145.03 6,340.89
Total Equity 32,498.77 29,098.49
Liabilities
1 Non-current liabilities
i) Borrowings 27 43.50 43.60
iii) Other financial liabilities 29 0.13 0.13
b) Provisions 30 281.54 271.41
c) Deferred tax liabilities (net) 31 756.19 626.00
d) Other non-current liabilities 33 36.74 40.05
Total - Non-current liabilities 1,480.62 1,361.81
2 Current liabilities
i) Trade payables
Total outstanding dues of micro enterprises and small enterprises 34 34.95 8.76
Total outstanding dues of creditors other than micro enterprises and small
enterprises 2,877.87 2,204.65
iii) Other financial liabilities 36 2,008.86 1,747.68
b) Other current liabilities 37 4,305.87 3,910.90
c) Provisions 38 24.64 21.14
d) Current tax liabilities (net) (Refer Note 32) 1,908.59 1,320.89
Total - Current liabilities 11,227.89 9,260.40
Total Liabilities 12,708.51 10,622.21
TOTAL - EQUITY AND LIABILITIES 45,207.28 39,720.70
The accompanying notes are integral part of the Consolidated Financial Statements
DIN - 00276351 DIN - 00015986
Partner Company Secretary Director Managing Director & Chief
Membership Number: 040081 DIN - 00077715 Executive Officer
DIN - 07419090

Consolidated statement of profit and loss


1 Income
a) Revenue from operations 39 28,965.46 24,516.17
b) Other income 40 352.44 449.59
Total Income 29,317.90 24,965.76
2 Expenses
a) Cost of materials consumed 41 3,183.41 2,532.87
b) Purchase of stock-in-trade 42 309.21 334.92
c) Changes in inventories of finished goods, work-in progress and stock-in-trade 43 (530.34) 256.45
d) Employee benefits expense 44 1,529.15 1,540.40
e) Finance costs 45 145.66 140.22
f) Depreciation and amortisation expense 46 1,152.49 1,161.78
g) Power and fuel 6,787.52 4,827.64
h) Freight and forwarding expense 47 7,132.90 6,271.54
i) Other expenses 48 4,387.84 3,768.92
24,097.84 20,834.74
j) Self consumption of cement (44.63) (22.14)
Total Expenses 24,053.21 20,812.60
3 Profit before share of profit of joint ventures and associates, exceptional items
and tax expense (1-2) 5,264.69 4,153.16
4 Share of profit in joint ventures and associates 20.23 14.44
5 Profit before exceptional items and tax expense (3+4) 5,284.92 4,167.60
6 Exceptional items 66 120.45 176.01
8 Tax expense 32
a) Current tax charge 1,326.98 1,200.42
b) Deferred tax charge / (credit) 126.45 (315.67)
1,453.43 884.75
9 Profit for the year (7-8) 3,711.04 3,106.84
10 Other comprehensive income
Items not to be reclassified to profit or loss in subsequent periods
a) Remeasurement gains / (losses) on defined benefit plans 14.86 (15.39)
b) Share of remeasurement gains / (losses) on defined benefit plans of joint
ventures and associates - (0.05)
14.86 (15.44)
Tax expenses on above (3.75) (6.18)
Total other comprehensive income 11.11 (21.62)
11 Total comprehensive income for the year (9+10) 3,722.15 3,085.22
12 Profit for the year attributable to
Owners of the Company 2,780.38 2,365.44
Non-controlling interest 930.66 741.40
13 Other comprehensive income attributable to
Owners of the Company 8.40 (14.34)
Non-controlling interest 2.71 (7.28)
14 Total comprehensive income attributable to
Owners of the Company 2,788.78 2,351.10
Non-controlling interest 933.37 734.12
15 Earnings per share of ` 2 each - in ` 49
Basic 14.00 11.91
Diluted 14.00 11.91
DIN - 00276351 DIN - 00015986
DIN - 07419090

As at As at
268
A Equity share capital 23

Changes during the year - -
Closing balance 397.13 397.13
Total other
equity
Capital Capital Non
Capital Securities General Retained attributable
Particulars redemption Subsidies contribution controlling Total
reserve premium reserve earnings to owners
reserve from parent interest
of the
Company
B Other equity
Balance as at 1st January 2021 130.71 12,471.16 5,814.49 9.93 5.02 3.18 3,925.98 22,360.47 6,340.89 28,701.36
Profit for the year - - - - - - 2,780.38 2,780.38 930.66 3,711.04

Other comprehensive income (net of tax
expenses) - - - - - - 8.40 8.40 2.71 11.11
Total comprehensive income for the year - - - - - - 2,788.78 2,788.78 933.37 3,722.15
Share based payment (Refer Note 65) - - - - - 5.92 - 5.92 2.09 8.01
(Refer Note 25) - - - - - - (198.56) (198.56) (131.32) (329.88)
Balance as at 31st December 2021 130.71 12,471.16 5,814.49 9.93 5.02 9.10 6,516.20 24,956.61 7,145.03 32,101.64
Consolidated statement of changes in equity

Total other
equity
Capital Capital Non
Capital Securities General Retained attributable
Particulars redemption Subsidies contribution controlling Total
reserve premium reserve earnings to owners
reserve from parent interest
of the
Company
B Other equity
Balance as at 1st January 2020 130.71 12,471.16 5,814.49 9.93 5.02 0.85 5,248.70 23,680.86 5,736.76 29,417.62
Profit for the year - - - - - - 2,365.44 2,365.44 741.40 3,106.84
Other comprehensive income (net of tax
expenses) - - - - - - (14.34) (14.34) (7.28) (21.62)
Total comprehensive income for the year - - - - - - 2,351.10 2,351.10 734.12 3,085.22
Share based payment (Refer Note 65) - - - - - 2.33 - 2.33 1.33 3.66
Corporate Overview

(Refer Note 25) - - - - - - (297.85) (297.85) (131.32) (429.17)
Interim equity dividend paid for the year 2020
(Refer Note 25) - - - - - - (3,375.60) (3,375.60) - (3,375.60)

Dividend distribution tax on equity dividend
paid by joint venture - - - - - - (0.37) (0.37) - (0.37)
Statutory Reports
Balance as at 31st December 2020 130.71 12,471.16 5,814.49 9.93 5.02 3.18 3,925.98 22,360.47 6,340.89 28,701.36
Consolidated statement of changes in equity

DIN - 00276351 DIN - 00015986
Membership Number: 040081 DIN - 00077715 Chief Executive Officer
DIN - 07419090
269
Consolidated cash flow statement

A) Cash flows from operating activities
Adjustments to reconcile profit before tax to net cash flows
Depreciation and amortisation expense 46 1,152.49 1,161.78
Exceptional item 66 113.11 176.01
Expected credit loss on non current financial assets - 128.92
(Gain) / Loss on property, plant and equipment sold, discarded
and written off (net) 25.27 32.86
Impairment of goodwill in subsidiary company 62 6.42 -
Loss on buy back of shares in joint venture - 0.26
Gain on sale of current financial assets measured at fair value through profit
and loss 40 (17.80) (26.65)
Gain on sale of investment in subsidiary company - (12.91)
Net gain on fair valuation of liquid mutual fund measured at fair value through
Unwinding of discounting charge on interest free sales tax loan 45 3.34 3.18
Finance costs 45 142.32 137.04
Interest income (302.30) (401.48)
Provision for slow and non moving store and spares (net) 29.85 25.39
Impairment loss/ (Reversal) on trade receivable (net) (8.79) 52.55
Discounting income on interest free loan - (3.25)
Unrealised exchange (gain) / loss (net) 3.36 8.29
Fair value movement in derivative instruments 5.92 1.30
Interest on income tax written back - (5.77)
Provisions no longer required written back 39 (18.53) (11.86)
Compensation Expenses under Employees Stock Options Scheme 8.01 3.66
Inventories written off 2.40 1.66
Provisions / (Reversal) for doubtful advances (net) (0.13) -
Unrealised share of profit in associates and joint ventures (20.23) (14.44)
Other non cash items (0.63) (2.41)
Operating profit before working capital changes 6,288.18 5,245.25
Changes in Working Capital
Adjustments for Decrease / (Increase) in operating assets
Decrease / (Increase) in Trade receivables, loans & 12-14, 16,
advances and other assets 19-21 (268.03) 244.50
Decrease / (Increase) in Inventories 15 (1,121.71) 420.49
Adjustments for Increase / (Decrease) in operating liabilities
Increase / (Decrease) in Trade payables, other liabilities and 27-30,
provisions 33-38 1,058.33 92.24
(331.41) 757.23
Cash generated from operations 5,956.77 6,002.48
Direct taxes paid (net of refunds) (Refer Note (1) below) (647.61) (1,170.17)
Net cash flow from operating activities (A) 5,309.16 4,832.31
B) Cash flows from investing activities
Purchase of property, plant and equipment, intangibles etc. (including
capital work in progress and capital advances) (2,334.10) (1,733.65)
Proceeds from sale of property, plant and equipment 37.76 8.33
Inter corporate deposits and loans given to joint ventures (0.02) (0.02)
Proceeds from sale of investment in subsidiary company - 20.00
Proceeds from buyback of shares of joint venture - 2.24
Gain on sale of current financial assets measured at fair value through profit and loss 8.26 26.65
Investments in bank deposits (having original maturity of more than 3 months
and upto 12 months) (15,710.06) (15,438.05)
Redemption of bank deposits (having original maturity of more than 3 months
and upto 12 months) 15,730.72 15,423.65
Investments in bank deposits (having original maturity of more than 12 months) (24.27) (31.65)
Redemption in bank deposits (having original maturity of more than 12 months) 7.40 20.42
Purchase of non current investment (14.90) (9.00)
Net Proceeds from sale of mutual funds 9.54 -
Investment in certificate of deposits - (750.00)
Redemption of certificate of deposits - 750.00
Dividend received from joint venture and associates 4.31 2.79
Interest received 278.31 391.04
Net cash used in investing activities (B) (2,007.05) (1,317.25)

Consolidated cash flow statement


C) Cash flows from financing activities
Proceeds from non-current borrowings - 8.47
Repayment of current maturity of non-current borrowing - (5.86)
Interest paid (107.21) (86.40)
Repayment of lease liability 54 (54.08) (41.05)
Interest portion of lease repayment 45 (24.59) (26.61)
Net movement in earmarked balances with banks 3.54 (8.84)
Dividend paid on equity shares (202.10) (3,664.61)
Dividend paid to Non-controlling Interest (131.32) (131.32)
Net cash used in financing activities (C) (515.76) (3,956.22)
Net increase / (decrease) in cash and cash equivalents (A + B + C) 2,786.35 (441.16)
Cash and cash equivalents
Cash and cash equivalents at the end of the year 17 11,358.49 8,571.56
Cash and cash equivalents related to entity held for sale 0.26 0.47
Transfer on sale of investment in subsidiary - 0.01
Adjustment for fair value gain on liquid mutual funds measured through profit and
loss (0.37) (0.47)
11,358.38 8,571.57
Cash and cash equivalents at the beginning of the year 17 8,571.56 9,011.88
Cash and cash equivalents related to entity held for sale at the beginning of the year 0.47 0.85
8,572.03 9,012.73
Net increase / (decrease) in cash and cash equivalents 2,786.35 (441.16)
Notes:
1) Direct taxes paid are treated as arising from operating activities and are not bifurcated between investing and financing
activities.
2) The above Cash Flow Statement has been prepared under the “Indirect Method” as set out in the Indian Accounting
Standard (Ind AS-7) “Statement of Cash Flow”.
3) Changes in liabilities arising from financing activities:
Cash flow changes Non-cash flow changes

As at As at
31st December 2020 Unwinding Other 31st December 2021
Particulars Receipts Payments
charges changes
` in crore ` in crore ` in crore ` in crore ` in crore ` in crore
Non-current borrowings (Refer Note 27) 43.60 - - 3.34 (3.44) 43.50
Current maturities of non-current
borrowings (Refer Note 36) - - - - 3.44 3.44
Total 43.60 - - 3.34 - 46.94
DIN - 00276351 DIN - 00015986
DIN - 07419090

Notes to Consolidated Financial Statements
1. Corporate Information The accounting policies are applied consistently to

all the periods presented in the consolidated financial
Ambuja Cements Limited (the Company, parent) is a public statements.
company domiciled in India and is incorporated under the
provisions of the Companies Act applicable in India. Its Functional and Presentation Currency
shares are listed on National Stock Exchange (NSE) and Consolidated Financial statements are presented in
Bombay Stock Exchange (BSE) in India and its GDRs are Indian Rupees (`), which is the functional currency of the
listed under the EURO Multilateral Trading Facility (MTF) Group.
Platform of Luxembourg Stock Exchange. The registered
Rounding of amounts
office of the Company is located at Ambujanagar, Taluka
Kodinar, Dist. Gir Somnath, Gujarat. All the values are rounded to the nearest crore as per the
requirement of Schedule III to the Companies Act, 2013,
The consolidated financial statements comprise the except where otherwise indicated.
financial statements of Ambuja Cements Limited (“the
Company”) and its subsidiaries (collectively, the Group). B. Basis of consolidation
The Group’s principal activity is to manufacture and I. The consolidated financial statements comprise
market cement and cement related products. The Group those of Ambuja Cements Limited, entities controlled
has manufacturing facilities across India and caters by the Company and its subsidiaries. The list of
mainly to the domestic market. principal companies is presented in note 11.
Information on the Group’s structure is provided in Note II.
A Company is considered a subsidiary when
11. Information on related party relationship of the Group controlled by the Group. Control is achieved when
is provided in Note 55. the Group is exposed, or has rights, to variable
returns from its involvement with the investee and
2. Basis of preparation and consolidation has the ability to affect those returns through its
power over the investee. Specifically, the Group
A. Basis of preparation
controls an investee if and only if the Group has:
These consolidated financial statements of the Company,
entities controlled by the Company and its subsidiaries a. Power over the investee (i.e. existing rights that
(together the group) have been prepared in accordance give it the current ability to direct the relevant
with the Indian Accounting Standards (Ind AS) notified activities of the investee),
under section 133 of the Companies Act, 2013 (“the Act”) b. Exposure, or rights, to variable returns from its
read with Rule 3 of the Companies (Indian Accounting involvement with the investee, and
Standards) Rules, 2015 and Companies (Indian
Accounting Standards) Amendment Rules, 2016. c. The ability to use its power over the investee to
affect its returns.
These consolidated financial statements were approved
for issue in accordance with the resolution of the Board The Group re-assesses whether or not it controls
of Directors on 17th February 2022. an investee if facts and circumstances indicate
that there are changes to one or more of the three
The consolidated financial statements have been prepared elements of control.
on a historical cost basis, except for the following:
III. Generally, there is a presumption that a majority
I. Certain financial assets and liabilities are measured of voting rights results in control. To support this
at fair value (refer note 3 (L) for accounting policy on presumption, when the Group has less than
financial instruments). a majority of the voting or similar rights of an
II. Non-current assets classified as held for sale are investee, the Group considers all relevant facts and
measured at the lower of carrying amount and fair circumstances in assessing whether it has power
value less cost to sell. over an investee, including:
III. Employee defined benefit plans, recognised at the a. The contractual arrangement with the other vote
net total of the fair value of plan assets and the holders of the investee,
present value of the defined benefit obligation. b.
Rights arising from other contractual
IV. Investments in associates and joint ventures which arrangements,
are accounted for using the equity method. c. The Group’s voting rights and potential voting
V. Employee share based payments measured at fair rights,
value. d. The size of the Group’s holding of voting
Historical cost is generally based on the fair value of the rights relative to the size and dispersion of the
consideration given in exchange for goods and services holdings of the other voting rights holders,
at the time of their acquisition.

e. Any additional facts and circumstances that VIII. C hanges in the Group’s ownership interests in
indicate that the Group has, or does not subsidiaries that do not result in the Group losing
have, the current ability to direct the relevant control over the subsidiaries are accounted for as
activities at the time when decisions need to equity transactions. The carrying amounts of the
be made, including voting patterns at previous Group’s interests and the non-controlling interests
shareholders’ meetings. are adjusted to reflect the changes in their relative
interests in the subsidiaries. Any difference between
IV. Consolidation of a subsidiary begins when the Group
the amount by which the non-controlling interests
obtains control over the subsidiary and ceases when
are adjusted and the fair value of the consideration
the Group loses control of the subsidiary. Assets,
paid or received is recognised directly in equity and
liabilities, income and expenses of a subsidiary
attributed to owners of the Group.
acquired or disposed of during the year are included
in the consolidated financial statements from the IX.
Profit or loss and each component of other
date the Group gains control until the date the Group comprehensive income (OCI) are attributed to
ceases to control the subsidiary. the equity holders of the parent of the Group and
to the non-controlling interest, even if this results
V. In cases where the financial year of subsidiaries is
in the non-controlling interests having a deficit
different from that of the Company, the financial
balance. When necessary, adjustments are made
statements of the subsidiaries have been drawn
to the financial statements of subsidiaries to bring
up so as to be aligned with the financial year of the
their accounting policies into line with the Group’s
Company.
accounting policies. All intra-group assets and
VI. Consolidated financial statements are prepared using liabilities, equity, income, expenses and cash flows
uniform accounting policies for like transactions and relating to transactions between members of the
other events in similar circumstances. If a member of Group are eliminated in full on consolidation.
the group uses accounting policies other than those
X. A change in the ownership interest of a subsidiary,
adopted in the consolidated financial statements for
without a loss of control, is accounted for as an
like transactions and events in similar circumstances,
equity transaction. If the Group loses control over a
appropriate adjustments are made to that of the
subsidiary, it:
Group member’s financial statements in preparing
the consolidated financial statements to ensure a. Derecognises the assets (including goodwill)
conformity with the Group’s accounting policies. and liabilities of the subsidiary,
VII. Consolidation procedure b. Derecognises the carrying amount of any non-
controlling interest,
a. The consolidated financial statements of the
Company and its subsidiaries have been c.
Derecognises the cumulative translation
prepared in accordance with the Ind AS 110 differences recorded in equity,
“Consolidated Financial Statements”, on a
d. Recognises the fair value of the consideration
line-by-line basis by adding together the book
received,
value of like items of assets, liabilities, income,
expenses and cash flow. e. Recognises the fair value of any investment
retained, or, when applicable, the cost on initial
b. Offset (eliminate) the carrying amount of the
recognition of an investment in an associate or
parent’s investment in each subsidiary and the
a joint venture,
parent’s portion of equity of each subsidiary.
Business combinations policy explains how any f. Recognises any surplus or deficit in the
related goodwill is accounted. consolidated statement of profit and loss,
c.
Eliminate in full intra-group assets and g. Reclassifies the parent’s share of components
liabilities, equity, income, expenses and cash previously recognised in other comprehensive
flows relating to transactions between entities income (OCI) to the consolidated statement
of the Group (profits or losses resulting from of profit and loss or retained earnings, as
intra-group transactions that are recognised appropriate, as would be required if the Group
in assets, such as inventory and fixed assets, had directly disposed of the related assets or
are eliminated in full). Intragroup losses may liabilities.
indicate an impairment that requires recognition
in the consolidated financial statements. Ind
AS 12 “Income Taxes” applies to temporary
differences that arise from the elimination of
profits and losses resulting from intra-group
transactions.

3. Significant accounting policies B. Depreciation on property, plant and equipment

I. Depreciation is provided as per the useful life of
A. Property, plant and equipment
assets which are determined based on technical
I. Property, plant and equipment are stated at their parameters / assessment. Depreciation is calculated
cost of acquisition / installation / construction net of using “Written down value method” for assets
accumulated depreciation, and impairment losses, related to Captive Power Plant and using “Straight
if any, except freehold non-mining land which is line method” for other assets. Estimated useful lives
carried at cost less impairment losses. Subsequent of the assets are as follows:
expenditures are included in the asset’s carrying
amount or recognised as a separate asset, as Assets Useful Life
appropriate, only when it is probable that future Land (freehold) No depreciation except on land
economic benefits associated with the item will with mineral reserves.
Cost of mineral reserves embedded
flow to the Group and the cost of the item can be
in the cost of freehold mining
measured reliably. When significant parts of plant land is depreciated in proportion
and equipment are required to be replaced at of actual quantity of minerals
intervals, the Group depreciates them separately extracted to the estimated quantity
based on their specific useful lives. Likewise, when a of extractable mineral reserves
major inspection is performed, its cost is recognised Leasehold mining land Amortised over the period of lease
in the carrying amount of the plant and equipment Buildings, roads and 3 – 60 years
as a replacement if the recognition criteria are water works
satisfied. All other repairs and maintenance are Plant and equipment 8 – 30 years
charged to the consolidated statement of profit and Assets related to 40 years
loss during the reporting period in which they are Captive Power Plant
incurred. The present value of the expected cost Railway sidings and 8 – 15 years
for the decommissioning of an asset after its use locomotives
is included in the cost of the respective asset if the Furniture, office 3 – 10 years
recognition criteria for provisions are met. equipment and tools
Vehicles 6 – 10 years
II. Spares which meet the definition of property, plant Ships 25 years
and equipment are capitalised as on the date of
acquisition. The corresponding old spares are The useful life as estimated above is also in line with
decapitalised on such date with consequent impact the prescribed useful life estimates as specified
in the consolidated statement of profit and loss. under Schedule II to the Act.
III. Property, plant and equipment not ready for their II. The residual values, useful lives and methods of
intended use as on the balance sheet date are depreciation of property, plant and equipment are
disclosed as “Capital work-in-progress”. Such reviewed during each financial year and adjusted
items are classified to the appropriate category of prospectively, if appropriate.
property, plant and equipment when completed III. The Group identifies and determines cost of each
and ready for their intended use. Advances given component / part of the asset separately, if the
towards acquisition / construction of property, plant component / part have a cost, which is significant
and equipment outstanding at each balance sheet to the total cost of the asset and has a useful life
date are disclosed as Capital Advances under “Other that is materially different from that of the remaining
non-current assets”. asset.
IV. An item of property, plant and equipment and any IV. Depreciation on additions to property, plant and
significant part thereof is derecognised upon disposal equipment is provided on a pro-rata basis from the
or when no future economic benefits are expected date of acquisition, or installation, or construction,
from its use or disposal. Any gain or loss arising on when the asset is ready for intended use.
derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying V. Depreciation on an item of property, plant and
amount of the asset) is included in the consolidated equipment sold, discarded, demolished or scrapped,
statement of profit and loss in “other income / is provided upto the date on which the said asset is
(expenses)” when the asset is derecognised. sold, discarded, demolished or scrapped.

VI. Capitalised spares are depreciated over their own An intangible asset is derecognised on disposal, or when
estimated useful life or the estimated useful life of no future economic benefits are expected from its use or
the parent asset whichever is lower. disposal. Gains or losses arising from derecognition of an
intangible asset, if any, are measured as the difference
VII. In respect of an asset for which impairment loss,
between the net disposal proceeds and the carrying
if any, is recognised, depreciation is provided on
amount of the asset and are recognised in the statement
the revised carrying amount of the asset over its
of profit and loss when the asset is derecognised.
remaining useful life.
Stripping Cost
VIII. Property, plant and equipment, constructed by
the Group, but ownership of which vests with the Stripping costs incurred during the mining production
Government / Local authorities: phase are allocated between the cost of inventory
produced and the existing mine asset.
a. Expenditure on Power lines is depreciated over
the period as permitted in the Electricity Supply Stripping costs are allocated and included as a component
Act, 1948 / 2003 as applicable. of the mine asset when they represent significantly
improved access to limestone, provided all the following
b. Expenditure on Marine structures is depreciated conditions are met:
over the period of the agreement.
i. it is probable that the future economic benefit
C. Intangible assets associated with the stripping activity will be realised;
I. Intangible assets acquired separately are measured
ii. the component of the limestone body for which
on initial recognition at cost. The cost of intangible
access has been improved can be identified; and
assets acquired in a business combination is their
fair value at the date of acquisition. Following initial iii. the costs relating to the stripping activity associated
recognition, intangible assets are carried at cost less with the improved access can be reliably measured.
any accumulated amortisation and accumulated
D. Amortisation of intangible assets
impairment losses, if any.
A summary of the policies applied to the Group’s
II. The useful lives of intangible assets are assessed as intangible assets are, as follows:
either finite or indefinite.
Intangible assets Useful life Amortisation method used
III. Intangible assets with finite lives are amortised
Water drawing Finite Amortised on a straight-line
over the useful economic life and assessed for
rights (10-30 years) basis over the useful life
impairment whenever there is an indication that the
Computer Finite Amortised on a straight-line
intangible asset may be impaired. The amortisation
software (upto 5 years) basis over the useful life
period and the amortisation method for an intangible
Mining Rights Finite Over the period of the
asset with a finite useful life are reviewed during
(0-90 years) respective mining agreement
each reporting period. Changes in the expected
useful life or the expected pattern of consumption E. Impairment of non-financial assets
of future economic benefits embodied in the asset The carrying amounts of other non-financial assets, other
are considered to modify the amortisation period or than inventories and deferred tax assets are reviewed
method, as appropriate, and are treated as changes at each balance sheet date if there is any indication
in accounting estimates. The amortisation expense of impairment based on internal / external factors. An
on intangible assets with finite lives is recognised impairment loss, if any, is recognised in the statement of
in the statement of profit and loss unless such profit and loss wherever the carrying amount of an asset
expenditure forms part of carrying value of another exceeds its recoverable amount. The recoverable amount
asset. is the higher of the asset’s fair value less cost of disposal
IV. Intangible assets with indefinite useful lives are not and value in use. In cases, where it is not possible to
amortised, but are tested for impairment annually, estimate the recoverable amount of an individual non-
either individually or at the cash-generating unit level. financial asset, the Group estimates the recoverable
The assessment of indefinite life is reviewed annually amount for the smallest cash generating unit to which
to determine whether the indefinite life continues to the non-financial asset belongs. In assessing value in
be supportable. If not, the change in useful life from use, the estimated future cash flows are discounted to
indefinite to finite is made on a prospective basis. their present value using a pre-tax discount rate that
Other than goodwill there are no other intangible reflects current market assessments of the time value
assets with indefinite useful lives. of money and risks specific to the assets. A previously
recognised impairment loss, if any, is increased or
reversed depending on the changes in circumstances,
however, the carrying value after reversal is not increased
beyond the carrying value that would have prevailed by
charging usual depreciation / amortisation if there was no
impairment.

F. Inventories II. Liabilities or equity instruments related to share based

Inventories are valued after providing for obsolescence, payment arrangements of the acquiree or share –
as follows: based payments arrangements of the Group entered
into to replace share-based payment arrangements
I. Raw materials, stores and spare parts, fuel and of the acquiree are measured in accordance with Ind
packing material: AS 102 “Share-based Payments” at the acquisition
Valued at lower of cost and net realisable value. Cost date.
includes purchase price, other costs incurred in
III. Assets (or disposal Groups) that are classified as held
bringing the inventories to their present location and
for sale in accordance with Ind AS 105 “Non-current
condition, and taxes for which credit is not available.
Assets Held for Sale and Discontinued Operations”
However, materials and other items held for use in
are measured in accordance with that standard.
the production of inventories are not written down
below cost if the finished products in which they will When the Group acquires a business, it assesses the financial
be incorporated are expected to be sold at or above assets and liabilities assumed for appropriate classification
cost. Cost is determined on a moving weighted and designation in accordance with the contractual terms,
average basis. economic circumstances and pertinent conditions as at the
acquisition date. This includes the separation of embedded
II. Work-in-progress, finished goods and stock in
derivatives in host contracts by the acquiree.
trade:
Valued at lower of cost and net realisable value. Cost Goodwill is initially measured at cost, being the excess
includes direct materials and labour and a proportion of the aggregate of the consideration transferred, the
of manufacturing overheads based on normal amount recognised for non-controlling interests and fair
operating capacity, but excluding borrowing costs. value of any previously held interest in acquiree, over the
Cost of Stock-in-trade includes cost of purchase and net identifiable assets acquired and liabilities assumed.
other cost incurred in bringing the inventories to the If the fair value of the net assets acquired is in excess
present location and condition. Cost is determined of the aggregate consideration transferred, the Group
on a monthly moving weighted average basis. re-assesses whether it has correctly identified all of the
assets acquired and all of the liabilities assumed and
Net realisable value is the estimated selling price reviews the procedures used to measure the amounts to
in the ordinary course of business, less estimated be recognised at the acquisition date. If the reassessment
costs of completion and estimated costs necessary still results in an excess of the fair value of net assets
to make the sale. acquired over the aggregate consideration transferred,
G. Business combination then the gain is recognised in Other Comprehensive
Income (OCI) and accumulated in equity as capital
Business combinations are accounted for using the
reserve. However, if there is no clear evidence of bargain
acquisition method. The consideration transferred in a
purchase, the entity recognises the gain directly in equity
business combination is measured at fair value, which
as capital reserve, without routing the same through OCI.
is calculated as the sum of acquisition date fair values of
the assets transferred, liabilities incurred to the former Non-controlling interests that are present ownership
owner of the acquiree and the equity interests issued in interests and entitle their holders to a proportionate
exchange of control of the acquiree. For each business share of the entity’s net assets in the event of liquidation
combination, the Group elects whether to measure the may be initially measured either at fair value or at the
non-controlling interests in the acquiree at fair value or non-controlling interests’ proportionate share of the
at the proportionate share of the acquiree’s identifiable recognised amounts of the acquiree’s identifiable net
net assets. Acquisition-related costs are expensed as assets. The choice of measurement basis is made on
incurred. a transaction-by-transaction basis. Other types of non-
controlling interests are measured at fair value or, when
At the acquisition date, the identifiable assets acquired and
applicable, on the basis specified in another Ind AS.
the liabilities assumed are recognised at their acquisition
date fair values. For this purpose, the liabilities assumed When a business combination is achieved in stages, the
include contingent liabilities representing present Group’s previously held equity interest in the acquiree is re-
obligation and they are measured at their acquisition fair measured to its acquisition-date fair value and the resulting
values irrespective of the fact that outflow of resources gain or loss, if any, is recognised in the consolidated
embodying economic benefits is not probable. However, statement of profit and loss. Amounts arising from interests
the following assets and liabilities acquired in a business in the acquiree prior to the acquisition date that have
combination are measured on the basis indicated below: previously been recognised in other comprehensive income
are reclassified to the consolidated statement of profit and
I. Deferred tax assets or liabilities, and the assets or
loss where such treatment would be appropriate if that
liabilities related to employee benefit arrangements
interest were disposed of.
are recognised and measured in accordance with
Ind AS 12 “Income Tax” and Ind AS 19 “Employee
Benefits” respectively.

If the initial accounting for a business combination is H. Goodwill

incomplete by the end of the reporting period in which the Goodwill arising on an acquisition of a business is carried
combination occurs, the Group reports provisional amounts at cost as established at the date of acquisition of the
for the items for which the accounting is incomplete. Those business (also see note 3 (G) in accounting policy) less
provisional amounts are adjusted through goodwill during accumulated impairment losses, if any.
the measurement period, or additional assets or liabilities
are recognised, to reflect new information obtained about After initial recognition, goodwill is measured at cost less
facts and circumstances that existed at the acquisition date any accumulated impairment losses. For the purpose
that, if known, would have affected the amounts recognised of impairment testing, goodwill acquired in a business
at that date. These adjustments are called as measurement combination is, from the acquisition date, allocated
period adjustments. The measurement period does not to each of the Group’s cash generating units that are
exceed one year from the acquisition date. expected to benefit from the combination, irrespective
of whether other assets or liabilities of the acquiree are
Business combination of entities under common assigned to those units.
control
Cash generating unit to which goodwill has been allocated
Business combinations involving entities that are
is tested for impairment annually, or more frequently when
controlled by the company or ultimately controlled by
there is an indication that the unit may be impaired. If
the same party or parties both before and after the
the recoverable amount of the cash generating unit is
business combination, and that control is not transitory,
less than its carrying amount, the impairment loss is
are accounted for using the pooling of interests method
allocated first to reduce the carrying amount of any
as follows:
goodwill allocated to the unit and then to the other assets
I. The assets and liabilities of the combining entities of the unit pro rata based on the carrying amount of each
are reflected at their carrying amounts. asset in the unit. The recoverable amount is the higher
of the assets fair value less cost of disposal and value
II. No adjustments are made to reflect fair values, or
in use. Any impairment loss for goodwill is recognised
recognise any new assets or liabilities. Adjustments
in the statement of profit and loss. An impairment loss
are only made to harmonise accounting policies.
recognised for goodwill is not reversed in subsequent
III. The financial information in the financial statements in periods.
respect of prior periods is restated as if the business
I. Investment in associates and joint ventures
combination had occurred from the beginning of
the preceding period in the financial statements, I. Associates
irrespective of the actual date of the combination, Associates are all entities over which the Group
however, where the business combination had has significant influence. Significant influence is the
occurred after that date, the prior period information power to participate in the financial and operating
is restated only from that date. policy decisions of the investee, but is not control
or joint control over those policies. This is generally
IV. The balance of the retained earnings appearing in the
the case where the Group holds between 20% and
financial statements of the transferor is aggregated
50% of the voting rights. Investments in associates
with the corresponding balance appearing in the
are accounted for using the equity method of
financial statements of the transferee or is adjusted
accounting, after initially being recognised at cost
against general reserve.
less impairment, if any.
V. The identity of the reserves are preserved and the
II. Joint ventures
reserves of the transferor become the reserves of the
transferee. Interests in joint ventures are accounted for using
the equity method of accounting, after initially being
The difference, if any, between the amounts recorded as recognised at cost.
share capital issued plus any additional consideration in
the form of cash or other assets and the amount of share
capital of the transferor is transferred to capital reserve
and is presented separately from other capital reserves.

Equity method Upon loss of significant influence over the associate or

Under the equity method of accounting, the investments joint control over the joint venture, the Group measures
are initially recognised at cost and adjusted thereafter to and recognises any retained investment at its fair
recognise the Group’s share of the post-acquisition profit value and that fair value is regarded as its fair value on
or loss and other comprehensive income of the investee initial recognition in accordance with Ind AS 109. Any
in the consolidated statement of profit and loss. An difference between the carrying amount of the associate
investment in an associate or a joint venture is accounted or joint venture upon loss of significant influence or joint
for using the equity method from the date on which the control and the fair value of the retained investment and
investee becomes an associate or a joint venture. On proceeds from disposal is recognised in the consolidated
acquisition of the investment in an associate or a joint statement of profit and loss. If the ownership interest in a
venture, any excess of the cost of the investment over joint venture or an associate is reduced but joint control
the Group’s share of the net fair value of the identifiable or significant influence is retained, only a proportionate
assets and liabilities of the investee is recognised as share of the amounts previously recognised in the other
goodwill. Goodwill relating to the associate or joint venture comprehensive income are reclassified to the consolidated
is included in the carrying amount of the investment and statement of profit and loss where appropriate.
is not tested for impairment. In addition, when there has When a Group entity transacts with an associate or a
been a change recognised directly in the equity of the joint venture of the Group, profits and losses resulting
associate or joint venture, the Group recognises its share from the transactions with the associate or joint venture
of any changes, when applicable, in the consolidated are recognised in the Group’s consolidated financial
statement of changes in equity. Unrealised gains and statements only to the extent of interests in the associate
losses resulting from transactions between the Group or joint venture that are not related to the Group.
and the associate or joint venture are eliminated to the
extent of the interest in the associate or joint venture. J. Interest in joint operations
A joint operation is a joint arrangement whereby the parties
Dividends received or receivable from associates and joint
that have joint control of the arrangement have rights to
ventures are recognised as a reduction in the carrying
the assets, and obligations for the liabilities, relating to
amount of the investment.
the arrangement. Joint control is the contractually agreed
When the Group’s share of losses in an equity-accounted sharing of control of an arrangement, which exists only
investment equals or exceeds its interest in the entity, when decisions about the relevant activities require
including any other unsecured long-term receivables, the unanimous consent of the parties sharing control. If the
Group does not recognise further losses, unless it has interest is classified as a joint operation, the Company
incurred obligations or made payments on behalf of the recognises its share of the assets, liabilities, revenues
other entity. If the associate or joint venture subsequently and expenses in the joint operation in accordance with
reports profits, the Group resumes recognising its share the relevant Ind AS.
of those profits only after its share of the profits equals
When a Group entity transacts with a joint operation in
the share of losses not recognised.
which a Group entity is a Joint operator (such as a sale
The aggregate of the Group’s share of profit or loss of an or contribution of assets), the Group is considered to be
associate and a joint venture is shown on the face of the conducting the transaction with the other parties to the
consolidated statement of profit and loss. joint operation, and gains and losses resulting from the
transactions are recognised in the Group’s consolidated
The financial statements of the associate or joint venture
financial statements only to the extent of other parties’
are prepared for the same reporting period as of the
interests in the joint operation.
Group. When necessary, adjustments are made to bring
the accounting policies in line with those of the Group. When a Group entity transacts with a joint operation
in which a Group entity is a joint operator (such as a
Unrealised gains on transactions between the Group
purchase of assets), the Group does not recognise its
and its associates or joint ventures are eliminated to the
share of the gains and losses until it resells those assets
extent of the Group’s interest in these entities. Unrealised
to a third party.
losses are also eliminated unless the transaction provides
evidence of an impairment of the asset transferred.
Accounting policies of equity accounted investees have
been changed where necessary to ensure consistency
with the policies adopted by the Group.
The carrying amount of equity accounted investments is
tested for impairment in accordance with the impairment
of non-financial assets policy described above.

K. Fair value measurement b.

Initial recognition and measurement of
The Group measures some of its financial instruments at financial assets
fair value at each balance sheet date. The Group recognises a financial asset in its
consolidated balance sheet when it becomes
Fair value is the price that would be received to sell an
party to the contractual provisions of the
asset or paid to transfer a liability in an orderly transaction
instrument. All financial assets are recognised
between market participants at the measurement date.
initially at fair value, plus in the case of financial
All assets and liabilities for which fair value is measured assets not recorded at fair value through profit
or disclosed in the financial statements are categorised or loss, transaction costs that are attributable
within the fair value hierarchy, described as follows, based to the acquisition of the financial asset. All
on the lowest level input that is significant to the fair value regular way purchases or sales of financial
measurement as a whole: assets are recognised and derecognised on a
trade date basis, i.e. the date that the Group
I. Level 1 — Quoted (unadjusted) market prices in
commits to purchase or sell the asset. Regular
way purchases or sales are purchases or sales
II. Level 2 — Valuation techniques for which the of financial assets that require delivery of assets
lowest level input that is significant to the fair value within the time frame established by regulation
measurement is directly or indirectly observable. or convention in the marketplace.
III. Level 3 — Valuation techniques for which the c. Measurement of financial assets
lowest level input that is significant to the fair value For purposes of subsequent measurement,
measurement is unobservable. financial assets are classified in the following
L. Financial instruments categories:
A financial instrument is any contract that gives rise to i. Financial assets at amortised cost
a financial asset of one entity and a financial liability or Financial asset is measured at the
equity instrument of another entity. Financial assets and amortised cost if both the following
financial liabilities are initially measured at fair value. conditions are met:
Transaction costs that are directly attributable to the
• The asset is held within a business
acquisition or issue of financial assets and financial
model whose objective is to hold assets
liabilities (other than financial assets and financial
for collecting contractual cash flows,
liabilities at fair value through the statement of profit and
and
loss) are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate, on • Contractual terms of the asset give rise
initial recognition. Transaction costs directly attributable on specified dates to cash flows that
to the acquisition of financial assets or financial liabilities are solely payments of principal and
at fair value through the statement of profit and loss are interest (SPPI) on the principal amount
recognised immediately in the consolidated statement of outstanding.
profit and loss.
Financial assets at amortised cost
I. Financial assets category is the most relevant to the Group.
a. The Group’s financial assets comprise : It comprises of current financial assets
such as trade receivables, cash and
i. Current financial assets mainly consist of
bank balances, fixed deposits with bank
trade receivables, investments in liquid
and financial institutions, other current
mutual funds, cash and bank balances,
receivables and non-current financial
fixed deposits with banks and financial
assets such as financial investments –
institutions, incentive receivable from
bonds and fixed deposits, non-current
Government and other current receivables.
receivables and deposits.
ii.
Non-current financial assets mainly
After initial measurement, such financial
consist of financial investments in equity,
assets are subsequently measured at
bond and fixed deposits, non-current
amortised cost using the effective interest
receivables from related party and
rate (EIR) method. The EIR amortisation
employees, incentives receivable from
is included in other income in the
Government and non-current deposits.
consolidated statement of profit and loss.
The losses arising from impairment, if any
are recognised in the statement of profit
and loss.

The effective interest rate method is a Debt instruments that meet the amortised
method of calculating the amortised cost cost criteria or debt instruments that meet
of a debt instrument and of allocating the FVTOCI criteria, may be designated
interest income over the relevant period. as at FVTPL as at initial recognition if
The effective interest rate is the rate that such designation reduces or eliminates a
exactly discounts estimated future cash measurement or recognition inconsistency
receipts (including all fees and points paid (referred to as ‘accounting mismatch’).
or received that form an integral part of the The Group has not designated any debt
effective interest rate, transaction costs instrument at FVTPL.
and other premiums or discounts) through
Debt instruments at FVTPL are measured
the expected life of the debt instrument, or,
at fair value at the end of each reporting
where appropriate, a shorter period, to the
period, with any gains and losses arising
net carrying amount on initial recognition.
on re-measurement are recognised in the
ii. Debt instrument at fair value through consolidated statement of profit and loss.
other comprehensive income (FVTOCI)
This category comprises investments in
A debt instrument is classified as at the liquid mutual funds and derivatives.
FVTOCI if both of the following criteria are met:
Equity instruments
• The objective of the business model is
All equity investments in scope of Ind AS
achieved both by collecting contractual
109 “Financial Instruments” are measured
cash flows and selling the financial
at FVTPL with all changes in fair value
assets, and
recognised in the statement of profit and
• The asset’s contractual cash flows loss.
represent SPPI.
The Group has designated its investments
Debt instruments included within the in equity instruments as FVTPL category.
FVTOCI category are measured initially as
iv.
Equity instruments measured at fair
well as at each reporting date at fair value.
value through other comprehensive
Fair value movements are recognised in
income (FVTOCI)
the other comprehensive income (OCI).
For all investments in equity instruments
However, the Group recognises interest
other than held for trading, at initial
income, impairment losses and reversals
recognition, the Company may make an
and foreign exchange gain or loss in the
irrevocable election to present in other
comprehensive income subsequent
On de-recognition of the asset, cumulative
changes in the fair value. The Group
gain or loss previously recognised in
makes such election on an instrument-by-
OCI is reclassified from equity to the
instrument basis.
Interest earned whilst holding FVTOCI If the Group decides to classify an equity
debt instrument is reported as interest instrument as at FVTOCI, then all fair value
income using the EIR method. changes on the instrument, excluding
dividends, are recognised in the OCI.
iii. Debt instruments, liquid mutual funds,
There is no recycling of the amounts from
derivatives and equity instruments at
OCI to statement of profit and loss, even
fair value through the statement of profit
on sale of investment. However, the Group
and loss (FVTPL)
may transfer the cumulative gain or loss
Debt instrument at FVTPL
within equity.
FVTPL is a residual category for debt
instruments. Any debt instrument, which The Group has not designated investments
does not meet the criteria for classification in any equity instruments as FVTOCI.
as at amortised cost or as fair value
through other comprehensive income
(FVTOCI), is classified as FVTPL.

d. Derivative Financial Instruments When the Group has transferred its rights to
The Group uses derivative financial instruments, receive cash flows from an asset or has entered
such as forward currency contracts to hedge its into a pass-through arrangement, it evaluates
foreign currency risk. Such derivative financial if and to what extent it has retained the risks
instruments are initially recognised at fair value and rewards of ownership. When it has neither
on the date on which a derivative contract is transferred nor retained substantially all of the
entered into and are subsequently re-measured risks and rewards of the asset, nor transferred
at fair value at the end of each reporting period. control of the asset, the Group continues to
Any changes therein are recognised in the recognise the transferred asset to the extent
Consolidated Statement of Profit and Loss of the Group’s continuing involvement. In
unless the derivative is designated and effective that case, the Group also recognises an
as a hedging instrument, in which event the associated liability. The transferred asset and
timing of the recognition in the Consolidated the associated liability are measured on a basis
Statement of Profit and Loss depends on the that reflects the rights and obligations that the
nature of the hedging relationship and the Group has retained.
nature of the hedged item. Derivatives are On derecognition of a financial asset other
carried as financial assets when the fair value than in its entirety (e.g. when the Group retains
is positive and as financial liabilities when the an option to repurchase part of a transferred
fair value is negative. asset), the Group allocates the previous carrying
The Group does not hold derivative financial amount of the financial asset between the part
instruments for speculative purposes. it continues to recognise under continuing
involvement, and the part it no longer recognises
e. Derecognition of financial assets on the basis of the relative fair values of those
A financial asset (or, where applicable, a part parts on the date of the transfer. The difference
of a financial asset or part of a Group of similar between the carrying amount allocated to the
financial assets) is primarily derecognised part that is no longer recognised and the sum
when: of the consideration received for the part no
longer recognised and any cumulative gain or
i. The rights to receive cash flows from the
loss allocated to it that had been recognised
asset have expired, or
in other comprehensive income is recognised
ii. The Group has transferred its contractual in the consolidated statement of profit and
rights to receive cash flows from the asset loss if such gain or loss would have otherwise
or has assumed an obligation to pay the been recognised in the consolidated statement
received cash flows in full without material of profit and loss on disposal of that financial
delay to a third party under a ‘pass- asset.
through’ arrangement; and either (a) the
Continuing involvement that takes the form
Group has transferred substantially all the
of a guarantee over the transferred asset is
risks and rewards of the asset, or (b) the
measured at the lower of the original carrying
Group has neither transferred nor retained
amount of the asset and the maximum amount
substantially all the risks and rewards of
of consideration that the Group could be
the asset, but has transferred control of
required to repay.
the asset.
f. Impairment of financial assets
On derecognition of a financial asset in
its entirety, the difference between the In accordance with Ind AS 109, the Group
asset’s carrying amount and the sum of the applies expected credit loss (ECL) model for
consideration received and receivable and measurement and recognition of impairment
the cumulative gain or loss that had been loss on financial assets which are measured at
recognised in other comprehensive income amortised cost.
and accumulated in equity is recognised in The Group follows ‘simplified approach’ for
the consolidated statement of profit and loss recognition of impairment loss allowance on
if such gain or loss would have otherwise been trade receivables resulting from transactions
recognised in the consolidated statement of within the scope of Ind-AS 115 “Revenue from
profit and loss on disposal of that financial Contracts with Customers”, if they do not
asset. contain a significant financing component.

The application of simplified approach does not a. Equity instruments

require the Group to track changes in credit risk. An equity instrument is any contract that
Rather, it recognises impairment loss allowance evidences a residual interest in the assets of
based on lifetime ECLs at each reporting date, an entity after deducting all of its liabilities.
right from initial recognition. Equity instruments issued by the Group are
recognised at the proceeds received, net of
For recognition of impairment loss on other
direct issue costs.
financial assets and risk exposure, the
Group determines whether there has been a Repurchase of the Group’s own equity
significant increase in the credit risk since initial instruments is recognised and deducted
recognition. If credit risk has not increased directly in equity. No gain or loss is recognised
significantly, 12-month ECL is used to provide in the consolidated statement of profit and loss
for impairment loss. However, if credit risk has on the purchase, sale, issue or cancellation of
increased significantly, lifetime ECL is used. the Group’s own equity instruments.
If in a subsequent period, credit quality of
b. Financial liabilities
the instrument improves such that there is no
i. The Group’s financial liabilities comprise:
longer a significant increase in credit risk since
initial recognition, then the entity reverts to • Non-current financial liabilities mainly
recognising impairment loss allowance based consist of borrowings and liability for
on 12-month ECL. capital expenditure.
Lifetime ECL are the expected credit losses • Current financial liabilities mainly consist
resulting from all possible default events over of trade payables, liability for capital
the expected life of a financial instrument. The expenditure, security deposit from dealer,
12-month ECL is a portion of the lifetime ECL transporter and contractor, staff related,
which results from default events that are possible lease liabilities and other payables.
within 12 months after the reporting date. ii. Initial recognition and measurement
ECL is the difference between all contractual The Group recognises a financial liability
cash flows that are due to the Group in in its consolidated balance sheet when
accordance with the contract and all the cash it becomes party to the contractual
flows that the entity expects to receive (i.e. all provisions of the instrument.
cash shortfalls) discounted at the original EIR.
All financial liabilities are recognised initially
ECL impairment loss allowance (or reversal)
at fair value and, in the case of loans and
recognised during the period is recognised as
borrowings and payables, net of directly
income / expense in the consolidated statement
attributable transaction costs.
of profit and loss.
Financial liabilities are classified, at initial
For financial assets measured as at amortised
recognition, as financial liabilities at fair
cost, ECL is presented as an allowance, i.e. as
value through profit or loss or at amortised
an integral part of the measurement of those
cost (loans and borrowings, and payables)
assets in the consolidated balance sheet. The
as appropriate.
allowance reduces the net carrying amount.
Until the asset meets write-off criteria, the iii. Subsequent measurement of financial
Group does not reduce impairment allowance liabilities at amortised cost
from the gross carrying amount. Financial liabilities that are not held-for-
II. Financial liabilities and equity instruments trading and are not designated as at
FVTPL are measured at amortised cost at
Classification as debt or equity
the end of subsequent reporting periods.
Debt and equity instruments issued by the Group are The carrying amounts of financial liabilities
classified as either financial liabilities or as equity in that are subsequently measured at
accordance with the substance of the contractual amortised cost are determined based on
arrangements and the definitions of a financial the effective interest rate method. Interest
liability and an equity instrument. expense that is not capitalised as part of
cost of an asset is included in the ‘Finance
costs’ line item.

The effective interest rate method is a III. Offsetting of financial instruments

method of calculating the amortised cost Financial assets and financial liabilities are offset
of a financial liability and of allocating and the net amount is reported in the consolidated
interest expense over the relevant period. balance sheet if there is a currently enforceable legal
The effective interest rate is the rate that right to offset the recognised amounts and there is
exactly discounts estimated future cash an intention to settle on a net basis, to realise the
payments (including all fees and points assets and settle the liabilities simultaneously.
paid or received that form an integral part
of the effective interest rate, transaction M. Provisions and contingencies
costs and other premiums or discounts) I. Provisions
through the expected life of the financial A provision is recognised for a present obligation
liability, or (where appropriate) a shorter (legal or constructive) as a result of past events if it
period, to the net carrying amount on initial is probable that an outflow of resources embodying
recognition. economic benefits will be required to settle the
iv. Subsequent measurement of financial obligation and in respect of which a reliable estimate
liabilities at fair value through profit or can be made. The amounts recognised as provisions
loss (FVTPL) are determined based on best estimate of the amount
required to settle the obligation at the balance sheet
The Group uses foreign exchange
date. These estimates are reviewed at each balance
forward contracts as derivative financial
sheet date and adjusted to reflect the current best
instruments to manage its exposure to
estimate.
interest rate and foreign exchange rate
risks, Derivatives are initially recognised If the effect of the time value of money is material,
at fair value at the date the derivative provisions are discounted using a current pre-
contracts are entered into and are tax rate that reflects, when appropriate, the risks
subsequently remeasured to their fair specific to the liability. When discounting is used,
value at the end of each reporting period. the increase in the provision due to the passage of
The resulting gain or loss is recognised in time is recognised as a finance cost.
the consolidated statement of profit and
Mines reclamation expenses
loss immediately unless the derivative is
designated and effective as a hedging The Group provides for the expenses to reinstate
instrument, in which event the timing of the the quarries used for mining. The total estimate
recognition in the consolidated statement of reclamation expenses is apportioned over the
of profit and loss depends on the nature estimate of mineral reserves and a provision is made
of the hedging relationship and the nature based on the minerals extracted during the year.
of the hedged item. Derivatives are carried Mines reclamation expenses are incurred on an
as financial assets when the fair value is ongoing basis and until the closure of the mine.
positive and as financial liabilities when the The actual expenses may vary based on the nature
fair value is negative. of reclamation and the estimate of reclamation
The Group enters into derivative financial expenditure. The total estimate of restoration
instruments such as foreign exchange expenses is reviewed periodically, on the basis of
forward contracts, to manage its exposure technical estimates.
to foreign exchange rate risks. The II. Contingent liability
Group does not hold derivative financial
A contingent liability is a possible obligation that
instruments for speculative purposes.
arises from the past events whose existence will be
v. Derecognition of financial liabilities confirmed by the occurrence or non-occurrence
A financial liability is derecognised when the of one or more uncertain future events beyond the
obligation under the liability is discharged control of the Group or a present obligation that
or cancelled or expired. When an existing is not recognised because it is not probable that
financial liability is replaced by another an outflow of resources will be required to settle
from the same lender on substantially the obligation. A contingent liability also arises
different terms, or the terms of an existing in extremely rare cases where there is a liability
liability are substantially modified, such that cannot be recognised because it cannot be
an exchange or modification is treated as measured reliably. The Group does not recognise a
the derecognition of the original liability contingent liability but discloses its existence in the
and the recognition of a new liability. financial statements.
The difference in the respective carrying
amounts is recognised in the consolidated
statement of profit and loss.

III. Contingent asset Revenue is measured at fair value of the

Contingent asset is not recognised in consolidated consideration received or receivable, after deduction
financial statements since this may result in the of any discounts, price concessions, volume rebates
recognition of income that may never be realised. and any taxes or duties collected on behalf of the
However, when the realisation of income is virtually government such as goods and services tax, etc.
certain, then the related asset is not a contingent Accumulated experience is used to estimate the
asset and is recognised. provision for such discounts, price concessions and
rebates. Revenue is only recognised to the extent
N. Foreign exchange gains and losses that it is highly probable a significant reversal will not
Foreign currency transactions are recorded at the rates occur.
of exchange prevailing on the date of transaction. Foreign
No element of financing is deemed present as the
currency monetary items are reported using the closing
sales are made with credit terms largely ranging
rate. Non-monetary items which are carried in terms
between 30 days and 60 days depending on the
of historical cost denominated in a foreign currency
specific terms agreed to with customers concerned,
are reported using the exchange rate at the date of the
which is consistent with the market practice.
transaction.
Contract balances
Exchange differences arising on the settlement of
monetary items at rates different from those at which Trade Receivables
they were initially recorded during the year or reported A trade receivable is recognised when the products
in previous consolidated financial statements, are are delivered to a customer as this is the point in
recognised as income or expense in the year in which time that the consideration becomes unconditional
they arise. because only a passage of time is required before
the payment is due.
Group companies
Contract assets, which is a group’s right to
On consolidation, the assets and liabilities of foreign
consideration that is conditional on something other
operations are translated into ` at the rate of exchange
than the passage of time.
prevailing at the reporting date and their statements of
profit and loss are translated at exchange rates prevailing Contract Liabilities
at the dates of the transactions. For practical reasons, Contract liability is a group’s obligation to transfer
the Group uses an average rate to translate income goods or services to a customer which the entity
and expense items, if the average rate approximates has already received consideration, relate mainly
the exchange rates at the dates of the transactions. to advance payment from customers. Contract
The exchange differences arising on translation for liabilities are recognised as revenue when the
consolidation are recognised in Other Comprehensive company performs under the contract.
Income (OCI). On disposal of a foreign operation, the
II. Rendering of services
component of OCI relating to that particular foreign
operation is recognised in the consolidated statement of Income from services rendered is recognised based
profit and loss. on agreements/arrangements with the customers as
the services is performed and there are no unfulfilled
O. Revenue recognition obligations.
Revenue is recognised on the basis of approved contracts
III. Interest income
regarding the transfer of goods or services to a customer
for an amount that reflects the consideration to which the Interest income from a financial asset is recognised
entity expects to be entitled in exchange of those goods when it is probable that the economic benefits will
or services. flow to the Group and the amount of income can be
measured reliably. Interest income is accrued on a time
I. Sale of goods basis, by reference to the principal outstanding and at
Revenue from the sale of the Group’s core product the effective interest rate applicable, which is the rate
Cement and Ready Mix Concrete is recognised that exactly discounts estimated future cash receipts
when delivery has taken place and control of the through the expected life of the financial asset to that
goods has been transferred to the customer, and asset’s net carrying amount on initial recognition.
when there are no longer any unfulfilled obligations.
IV. Dividends
The customer obtains control of the goods when Dividend income is recognised when right to receive
the significant risks and reward of products sold are is established (provided that it is probable that the
transferred according to the specific delivery term economic benefits will flow to the Group and the
that have been agreed with the customer. amount of income can be measured reliably).

P. Retirement and other employee benefits III. Short term employee benefits
I. Defined contribution plan a. Short term employee benefits that are expected
Employee benefits in the form of contribution to to be settled wholly within 12 months after
Superannuation Fund, Provident Fund managed the end of the period in which the employees
by Government Authorities, Employees State render the related service are recognised as
Insurance Corporation and Labour Welfare Fund an expense at the undiscounted amount in the
are considered as defined contribution plans and consolidated statement of profit and loss of the
the same are charged to the consolidated statement year in which the related service is rendered.
of profit and loss for the year in which the employee b. Accumulated Compensated absences, which
renders the related service. are expected to be settled wholly within 12
II. Defined benefit plan months after the end of the period in which
the employees render the related service,
The Group’s gratuity fund scheme, additional gratuity
are treated as short term employee benefits.
scheme and post-employment benefit scheme are
The Group measures the expected cost of
considered as defined benefit plans. The Group’s
such absences as the additional amount that
liability is determined on the basis of an actuarial
it expects to pay as a result of the unused
valuation using the projected unit credit method as
entitlement that has accumulated at the
at the balance sheet date.
reporting date.
Employee benefit, in the form of contribution to
IV. Other long-term employee benefits
provident fund managed by a trust set up by the
Group, is charged to consolidated statement of Compensated absences are provided for on the
profit and loss for the year in which the employee basis of an actuarial valuation, using the projected
renders the related service. The Group has an unit credit method, as at the date of the consolidated
obligation to make good the shortfall, if any, balance sheet. Actuarial gains / losses, if any, are
between the return from the investment of the immediately recognised in the statement of profit
trust and interest rate notified by the Government and loss.
of India. Such shortfall is recognised in the Long service awards and accumulated compensated
consolidated statement of profit and loss based absences which are not expected to be settled
on actuarial valuation. wholly within 12 months after the end of the period
Past service costs are recognised in the consolidated in which the employees render the related service
statement of profit and loss on the earlier of: are treated as other long term employee benefits for
measurement purposes.
a. The date of the plan amendment or curtailment,
and V. Termination benefits
Termination benefits are payable when employment
b. The date that the Group recognises related
is terminated by the Group before the normal
restructuring costs
retirement date, or when an employee accepts
The net interest cost is calculated by applying the voluntary redundancy in exchange for these benefits.
discount rate to the net balance of the defined The Group recognises termination benefits at the
benefit obligation and the fair value of plan assets. earlier of the following:
The Group recognises the following changes in the
a. when the Group can no longer withdraw the
net defined benefit obligation as an expense in the
offer of those benefits; and
consolidated statement of profit and loss:
b.
when the Group recognises costs for a
a.
Service costs comprising current service
restructuring that is within the scope of Ind
costs, past-service costs, gains and losses on
AS 37 and involves the payment of termination
curtailments and non-routine settlements; and
benefits.
b. Net interest expense or income
In the case of an offer made to encourage voluntary
Re-measurements, comprising actuarial gains and redundancy, the termination benefits are measured
losses, the effect of the asset ceiling (if any), and based on the number of employees expected to
the return on plan assets (excluding net interest), accept the offer. Benefits falling due more than 12
are recognised immediately in the consolidated months after the end of the reporting period are
balance sheet with a corresponding debit or credit to discounted to present value.
retained earnings through OCI in the period in which
they occur. Re-measurements are not reclassified
to the consolidated statement of profit and loss in
subsequent periods.

VI. Presentation and disclosure For these purposes, sale transactions include exchanges
For the purpose of presentation of defined benefit of non-current assets for other non-current assets when
plans, the allocation between the short term and long the exchange has commercial substance. The criteria for
term provisions has been made as determined by an held for sale classification is regarded as met only when the
actuary. Obligations under other long-term benefits asset is available for immediate sale in its present condition,
are classified as short-term provision, if the Group subject only to terms that are usual and customary for
does not have an unconditional right to defer the sales of such assets, its sale is highly probable; and it will
settlement of the obligation beyond 12 months from genuinely be sold, not abandoned. The Group treats sale of
the reporting date. The Group presents the entire the asset to be highly probable when:
compensated absences as short term provisions, I. The appropriate level of management is committed
since employee has an unconditional right to avail to a plan to sell the asset,
the leave at any time during the year.
II. An active programme to locate a buyer and complete
VII. Employee share-based payments the plan has been initiated (if applicable),
The Ultimate holding Company of the Group
III. The asset is being actively marketed for sale at a price
operates various equity-settled performance share
that is reasonable in relation to its current fair value,
plans. Senior executive of the Company received
remuneration in the form of share-based payments, IV. The sale is expected to qualify for recognition as
whereby employee render service as consideration a completed sale within one year from the date of
for equity instruments (equity settled transactions). classification, and
The cost of equity-settled transactions is determined V. Actions required to complete the plan indicate that
by the fair value at the date when the grant is made it is unlikely that significant changes to the plan will
using an appropriate valuation model. be made or that the plan will be withdrawn.
The cost of equity settled transactions is recognised Non-current assets held for sale are measured at the
in the Statement of Profit and Loss, together with lower of their carrying amount and the fair value less costs
a corresponding increase in equity, representing to sell. Assets and liabilities classified as held for sale are
contribution received from the ultimate holding presented separately in the consolidated balance sheet.
company, over the period in which the performance
Property, plant and equipment and intangible assets once
and/or service conditions are fulfilled. The cumulative
classified as held for sale are not depreciated or amortised.
expense recognised for equity-settled transactions
at each reporting date until the vesting date reflects Gains and losses on disposals of non-current assets
the extent to which the vesting period has expired are determined by comparing proceeds with carrying
and group’s best estimate of the number of equity amounts, and are recognised in the consolidated
instruments that will ultimately vest. The charge or statement of profit and loss.
credit to the Statement of Profit and Loss for a period
R. Borrowing Costs
represents movement in the cumulative expenses
recognised as at the beginning and end of that Borrowing cost directly attributable to acquisition and
period. construction of assets that necessarily take substantial
period of time to get ready for their intended use or sale
In case of forfeiture/lapse stock option, which is are capitalised as part of the cost of such assets up to
not vested, amortised portion is reversed by credit the date when such assets are ready for intended use
to employee compensation expense. In a situation or sale. All other borrowing costs are expensed in the
where the stock option expires unexercised, period in which they occur. Borrowing cost consists of
the related balance standing to the credit of the interest and other costs that an entity incurs in connection
Employee Stock Options Outstanding Account is with the borrowing of funds. Borrowing cost also includes
transferred within other equity. exchange differences to the extent regarded as an
Q. Non-current assets held for sale adjustment to the borrowing costs.
The Group classifies non-current assets as held for sale
if their carrying amounts will be recovered principally
through a sale rather than through continuing use and the
sale is highly probable. Management must be committed
to the sale, which should be expected within one year
from the date of classification.

S. Taxation a. When the deferred tax asset relating to the

Tax expense comprises current income tax and deferred deductible temporary difference arises from
income tax and includes any adjustments related to past the initial recognition of an asset or liability in a
periods in current and / or deferred tax adjustments that transaction that is not a business combination
may become necessary due to certain developments or and, at the time of the transaction, affects neither
reviews during the relevant period. the accounting profit nor taxable profit or loss.
I. Current income tax b. In respect of deductible temporary differences

associated with investments in subsidiaries,
Current income tax is measured at the amount
associates and interests in joint ventures,
expected to be recovered from or paid to the
deferred tax assets are recognised only to the
taxation authorities. The tax rates and tax laws used
extent that it is probable that the temporary
to compute the amount are those that are enacted
differences will reverse in the foreseeable future
or substantively enacted, at the reporting date.
and taxable profit will be available against which
Current income tax relating to items recognised the temporary differences can be utilised.
outside the consolidated statement of profit and
The carrying amount of deferred tax assets are
loss is recognised in correlation to the underlying
reviewed at each balance sheet date. The Group
transaction either in OCI or directly in equity.
writes-down the carrying amount of a deferred tax
Management periodically evaluates positions
asset to the extent that it is no longer probable that
taken in the tax returns with respect to situations
sufficient future taxable income will be available
in which applicable tax regulations are subject to
against which deferred tax asset can be realised.
interpretation and establishes provisions where
Any such write-down is reversed to the extent that
appropriate.
it becomes reasonably certain that sufficient future
Current tax assets and current tax liabilities are taxable income will be available.
offset when there is a legally enforceable right to set
Deferred tax assets and liabilities are measured
based on the tax rates that are expected to apply
to settle the asset and the liability on a net basis.
in the year when the asset is realised or the liability
II. Deferred tax is settled, based on tax rates (and tax laws) that
Deferred tax is provided using the liability method have been enacted or substantively enacted at the
on temporary differences between the tax bases of reporting date.
assets and liabilities and their carrying amounts for Deferred tax relating to items recognised outside
financial reporting purposes at the reporting date. the consolidated statement of profit and loss is
Deferred tax liabilities are recognised for all taxable recognised outside profit or loss (either in other
temporary differences, except: comprehensive income or in equity). Deferred tax
items are recognised in correlation to the underlying
a. When the deferred tax liability arises from the transaction either in OCI or directly in equity.
initial recognition of goodwill or an asset or liability
in a transaction that is not a business combination Deferred tax assets and liabilities are offset when
and, at the time of the transaction, affects neither there is a legally enforceable right to offset current
the accounting profit nor taxable profit or loss. tax assets and liabilities and when the deferred
tax balances relate to the same taxation authority.
b. In respect of taxable temporary differences Current tax assets and current tax liabilities are
associated with investments in subsidiaries, offset when there is a legally enforceable right to set
associates and interests in joint ventures, off the recognised amounts and there is an intention
when the timing of the reversal of the temporary to settle the asset and the liability on a net basis.
differences can be controlled and it is probable
that the temporary differences will not reverse The Group applies significant judgment in identifying
in the foreseeable future. uncertainties over income tax treatments. Uncertain
tax positions are reflected in the overall measurement
Deferred tax assets are recognised for all deductible of the Group’s tax expense and are based on the
temporary differences, the carry forward of unused most likely amount or expected value that is to be
tax credits and any unused tax losses. Deferred tax disallowed by the taxing authorities whichever better
assets are recognised only to the extent that it is predict the resolution of uncertainty. Uncertain tax
probable that sufficient future taxable income will balances are monitored and updated as and when
be available against which such deferred tax assets new information becomes available, typically upon
can be realised, except: examination or action by the taxing authorities or
through statute expiration.

T. Leases Variable lease payments that do not depend on an index

The Group assesses whether a contract is or contains a or rate are not included in the measurement the lease
lease, at inception of a contract. A contract is, or contains, liability and the ROU asset. The related payments are
a lease if the contract conveys the right to control the use recognised as an expense in the period in which the event
of an identified asset for a period of time in exchange for or condition that triggers those payments occurs and are
consideration. To assess whether a contract conveys the included in the line “other expenses” in the Statement of
right to control the use of an identified asset, the Group Profit or Loss.
assesses whether: The lease term comprises the non-cancellable lease term
i. the contract involves the use of an identified asset together with the period covered by extension options,
if assessed as reasonably certain to be exercised, and
ii. the Group has substantially all of the economic termination options, if assessed as reasonably certain
benefits from use of the asset through the period of not to be exercised. For lease arrangement in respect of
the lease and ships, the non-lease components are not separated from
iii. the Group has the right to direct the use of the asset lease components and instead account for each lease
component, and any associated non-lease component
Group as a lessee: as a single lease component.
Right-of-use assets
The lease liability is subsequently remeasured by
At the date of commencement of the lease, the Group increasing the carrying amount to reflect interest on the
recognises a right-of-use asset and a corresponding lease liability, reducing the carrying amount to reflect the
lease liability for all lease arrangements in which it is a lease payments made.
lessee, except for short-term leases and leases of low-
value assets. The Group remeasures the lease liability (and makes a
corresponding adjustment to the related right-of-use
The right-of-use assets are initially recognised at cost, asset) whenever:
which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the i. The lease term has changed or there is a change in
commencement date of the lease plus any initial direct costs the assessment of exercise of a purchase option,
less any lease incentives. They are subsequently measured in which case the lease liability is remeasured by
at cost less accumulated depreciation and impairment discounting the revised lease payments using a
losses, if any. Right-of-use assets are depreciated from revised discount rate.
the commencement date on a straight-line basis over the ii.
A lease contract is modified and the lease
shorter of the lease term and useful life of the underlying modification is not accounted for as a separate
asset and the average lease terms are as follows: lease, in which case the lease liability is remeasured
Average (Range) lease terms
by discounting the revised lease payments using a
Right-of-use assets revised discount rate.
(in years)
Buildings 2-30 ROU asset have been separately presented in the
Leasehold land 5-99 Consolidated Balance Sheet, whereas lease liability
Ships and tugs 5-13 have been included under “other financial liabilities” in
Furniture, vehicle and tools 5 Consolidated Balance sheet and lease payments have
been classified as financing cash flows.
Plant and Equipment 6
Deferred tax on the deductible temporary difference
The right-of-use assets is also subject to impairment.
and taxable temporary differences in respect of carrying
Right-of-use assets are evaluated for recoverability
value of right-of-use assets and lease liability and their
whenever events or changes in circumstances indicate
respective tax bases are recognised separately.
that their carrying amounts may not be recoverable.
Short-term leases and leases of low-value assets
Lease liabilities
The Group applies the short-term lease recognition
The lease liability is initially measured at the present value
exemption to its short-term leases (i.e., those leases
of the future lease payments. The lease payments are
that have a lease term of 12 months or less from the
discounted using the interest rate implicit in the lease or, if
commencement date). It also applies the lease of low-
not readily determinable, using the incremental borrowing
value assets recognition exemption to leases that are
rates. The Group uses the incremental borrowing rate as
considered of low value (range different for different
the discount rate.
class of assets). Lease payments on short-term leases
Lease payments included in the measurement of the and leases of low-value assets are recognised as expense
lease liability include fixed payments, variable lease on a straight-line basis over the lease term. The related
payments that depend on an index or a rate known at the cash flows are classified as Operating activities in the
commencement date; and extension option payments Statement of Cash Flows.
or purchase options payments which the Group is
reasonably certain to exercise.

Group as a lessor: III. Where the grant or subsidy relates to an asset, it is

Leases for which the Group is a lessor are classified as recognised as income in equal amounts over the
finance or operating leases. Whenever the terms of the expected useful life of the related asset.
lease transfer substantially all the risks and rewards of IV. When the Group receives grants of non-monetary
ownership to the lessee, the contract is classified as a assets, the asset and the grant are recorded at fair
finance lease. All other leases are classified as operating value amounts and released to the consolidated
leases. statement of profit and loss over the expected useful
In respect of assets provided on finance leases, amounts life in a pattern of consumption of the benefit of the
due from lessees are recorded as receivables at the underlying asset i.e. by equal annual installments.
amount of the Group’s net investment in the leases. V. When loans or similar assistance are provided by
Finance lease income is allocated to accounting periods governments or related institutions, with an interest
to reflect a constant periodic rate of return on the Group’s rate below the current applicable market rate, the
net investment outstanding in respect of the leases. In effect of this favourable interest is regarded as a
respect of assets given on operating lease, lease rentals government grant. The loan or assistance is initially
are accounted in the Statement of Profit and Loss, on recognised and measured at fair value and the
accrual basis in accordance with the respective lease government grant is measured as the difference
agreements. between the initial carrying value of the loan and
U. Segment reporting the proceeds received. The loan is subsequently
measured as per the accounting policy applicable
Operating segment is reported in a manner consistent
to financial liabilities.
with the internal reporting provided to Chief Operating
Decision Maker (CODM). X. Earnings per share
The Board of Directors of the Company has appointed Basic earnings per share are calculated by dividing the
executive committee (ExCo) as CODM. The ExCo net profit or loss for the period attributable to equity
assesses the financial performance and position of the shareholders by the weighted average number of equity
Group and makes strategic decisions. shares outstanding during the period.
V. Cash and cash equivalents Diluted earnings per share are computed by dividing the
profit after tax as adjusted for dividend, interest and other
Cash and cash equivalents consist of cash on hand,
charges to expense or income (net of any attributable
cash at banks, demand deposits from banks and short-
taxes) relating to the dilutive potential equity shares, by
term, highly liquid instruments. As part of Group’s cash
the weighted average number of equity shares considered
management policy to meet short term cash commitments,
for deriving basic earnings per share and the weighted
it parks its surplus funds in short-term highly liquid
average number of equity shares which could have been
instruments that are generally held for a period of three
issued on conversion of all dilutive potential equity shares.
months or less from the date of acquisition. These short-
term highly liquid instruments are open-ended debt funds Y. Classification of current / non-current assets and
that are readily convertible into known amounts of cash liabilities
and are subject to insignificant risk of changes in value. All assets and liabilities are presented as current or non-
W. Government grants and subsidies current as per the Group’s normal operating cycle and
other criteria set out in Schedule III of the Companies Act,
I. Grants and subsidies from the Government are
2013 and Ind AS 1 “Presentation of financial statements”.
recognised when the Group will comply with all the
Based on the nature of products and the time between
conditions attached to them and there is a reasonable
the acquisition of assets for processing and their
assurance that the grant / subsidy will be received
realisation, the Group has ascertained its operating cycle
and all attaching conditions will be complied with.
as 12 months for the purpose of current / non-current
II. Where the government grants / subsidies relate classification of assets and liabilities
to revenue, they are recognised as income on a
Z. Exceptional items
systematic basis in the consolidated statement of
profit and loss over the periods necessary to match An item of income or expense which by its size, nature
them with the related costs, which they are intended or incidence requires disclosure in order to improve an
to compensate. Government grants and subsidies understanding of the performance of the Group is treated
receivable against an expense are deducted from as an exceptional item and disclosed separately in the
such expense. consolidated financial statements.

AA. Use of estimates and judgments III. Useful life of property, plant and equipment
The preparation of the Group’s consolidated financial The charge in respect of periodic depreciation is
statements requires management to make judgments, derived after determining an estimate of an asset’s
estimates and assumptions that affect the reported expected useful life and the expected residual value.
amounts of revenues, expenses, assets and liabilities, Increasing an asset’s expected life or its residual
and the accompanying disclosures, and the disclosure value would result in a reduced depreciation charge
of contingent liabilities. Uncertainty about these in the consolidated statement of profit and loss. The
assumptions and estimates could result in outcomes that useful lives of the Group’s assets are determined by
require a material adjustment to the carrying amount of management at the time the asset is acquired and
assets or liabilities affected in future periods. reviewed at least annually for appropriateness. The
lives are based on historical experience with similar
Estimates and judgments are continually evaluated and
assets as well as anticipation of future events, which
are based on historical experience and other factors,
may impact their life, such as changes in technology.
including expectations of future events that are believed
to be reasonable under the circumstances. IV. Leases Ind AS 116
The estimates and underlying assumptions are reviewed Ind AS 116 Leases requires a lessee to determine
on an ongoing basis. Revisions to accounting estimates the lease term as the non-cancellable period of a
are recognised in the period in which the estimate is lease adjusted with any option to extend or terminate
revised if the revision affects only that period, or in the the lease, if the use of such option is reasonably
period of the revision and future period, if the revision certain. The Group makes an assessment on the
affects current and future period. Revisions in estimates expected lease term on lease by lease basis and
are reflected in the consolidated financial statements in thereby assesses whether it is reasonably certain
the period in which changes are made and, if material, that any options to extend or terminate the contract
their effects are disclosed in the consolidated notes to will be exercised. In evaluating the lease term, the
the financial statements. Group considers factors such as any significant
leasehold improvements undertaken over the lease
The Group makes estimates and assumptions concerning term, costs relating to the termination of lease
the future. The resulting accounting estimates will, by and the importance of the underlying lease to the
definition, seldom equal the related actual results. The Group’s operations taking into account the location
estimates and assumptions that may have a significant of the underlying asset and the availability of the
risk of causing a material adjustment to the carrying suitable alternatives. The lease term in future periods
amounts of assets and liabilities within the next financial is reassessed to ensure that the lease term reflects
year are summarised below : the current economic circumstances. The discount
I. Classification of legal matters and tax litigations rate is generally based on the incremental borrowing
rate specific to the lease being evaluated or for a
The litigations and claims to which the Group is
portfolio of leases with similar characteristics.
exposed to are assessed by management with
assistance of the legal department and in certain BB. Recent Accounting Developments
cases with the support of external specialised Ministry of Corporate Affairs (“MCA”) notifies new
lawyers. Disclosures related to such provisions, as standard or amendments to the existing standards. There
well as contingent liabilities, also require judgment is no such notification which would have been applicable
and estimations if any. from 1st January 2022.
II. Defined benefit obligations MCA issued notifications dated 24th March, 2021 to
The cost of defined benefit gratuity plans and post- amend Schedule III to the Companies Act, 2013 to
retirement medical benefit is determined using enhance the disclosures required to be made by the
actuarial valuations. The actuarial valuation involves Group in its financial statements. These amendments are
making assumptions about discount rates, future applicable to the Group for the financial year starting 1st
salary increases, mortality rates and future pension January 2022.
increases. Due to the long-term nature of these
plans, such estimates are subject to significant
uncertainty.

Note 4 - Property, plant and equipment
(Refer Note 3 (A) and 3 (B) for accounting policy on property, plant and equipment)
Net Carrying Value
Gross Carrying Value Accumulated Depreciation Accumulated Impairment
Charge for Impairment
As at 1st As at 31st As at 1st the year As at 31st As at 1st losses As at 31st As at 31st As at 31st
Particulars Deductions/ Deductions/
January Additions December January (Refer December January recognised December December December
Transfers Transfers
2021 2021 2021 Note (e) 2021 2021 in profit or 2021 2021 2020
below) loss
` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore
Freehold non-mining land 563.24 5.74 - 568.98 0.08 0.02 - 0.10 - - - 568.88 563.16
Freehold mining land 1,137.82 78.57 - 1,216.39 85.88 41.89 - 127.77 - - - 1,088.62 1,051.94
Leasehold mining land 201.17 0.19 - 201.36 5.25 2.06 - 7.31 - - - 194.05 195.92
Buildings, roads and water
works (Refer Note (a) below) 3,352.78 288.01 7.55 3,633.24 772.59 154.77 4.73 922.63 29.27 4.11 33.38 2,677.23 2,550.92
(Refer Note (b) below) 11,541.82 2,371.42 105.06 13,808.18 4,372.46 782.70 48.25 5,106.91 116.75 10.52 127.27 8,574.00 7,052.61
Furniture and fixtures 59.54 5.18 0.36 64.36 32.72 7.28 2.11 37.89 0.27 0.03 0.30 26.17 26.55
Vehicles 228.46 28.08 17.01 239.53 104.81 28.40 12.36 120.85 10.14 - 10.14 108.54 113.51
Office equipment 145.90 31.36 7.21 170.05 112.43 19.47 7.05 124.85 0.53 - 0.53 44.67 32.94
Corporate Overview
Marine structures (Refer Note

(c) below) 24.37 - - 24.37 17.31 3.00 - 20.31 - - - 4.06 7.06
Railway sidings and locomotives 324.42 119.32 - 443.74 121.31 27.23 - 148.54 1.43 - 1.43 293.77 201.68
Ships 126.54 - 0.02 126.52 37.47 7.17 0.02 44.62 - - - 81.90 89.07
Total 17,706.06 2,927.87 137.21 20,496.72 5,662.31 1,073.99 74.52 6,661.78 158.39 14.66 173.05 13,661.89 11,885.36

Net Carrying Value
Gross Carrying Value Accumulated Depreciation Accumulated Impairment
Statutory Reports

Charge Impairment
As at 1st As at 31st As at 1st for the As at 31st As at 1st losses As at 31st As at 31st As at 31st
Particulars Deductions/ Deductions/
January Additions December January year (Refer December January recognised December December December
Transfers Transfers
2020 2020 2020 Note (e) 2020 2020 in profit or 2020 2020 2019
below) loss
` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore
Freehold non-mining land 512.60 50.74 0.10 563.24 0.06 0.02 - 0.08 - - - 563.16 512.54
Freehold mining land 1,112.41 25.45 0.04 1,137.82 54.74 31.14 - 85.88 - - - 1,051.94 1,057.67

Leasehold mining land 200.84 0.33 - 201.17 3.19 2.06 - 5.25 - - - 195.92 197.65
Leasehold non-mining land

(Refer Note (j) below) 71.98 0.10 72.08 - 2.87 - 2.87 - - - - - 69.11
Buildings, roads and water
works (Refer Note (a) below) 3,280.62 84.22 12.06 3,352.78 622.85 157.79 8.05 772.59 - 29.27 29.27 2,550.92 2,657.77
(Refer Note (b) below) 11,207.37 424.61 90.16 11,541.82 3,611.32 815.72 54.58 4,372.46 - 116.75 116.75 7,052.61 7,596.05
Furniture and fixtures 54.62 5.78 0.86 59.54 27.66 5.63 0.57 32.72 - 0.27 0.27 26.55 26.96
Vehicles 207.61 25.99 5.14 228.46 80.91 27.22 3.32 104.81 - 10.14 10.14 113.51 126.70
Office equipment 137.85 9.99 1.94 145.90 94.92 19.36 1.85 112.43 - 0.53 0.53 32.94 42.93
Marine structures
(Refer Note (c) below) 24.37 - - 24.37 14.31 3.00 - 17.31 - - - 7.06 10.06
Railway sidings and locomotives 307.95 16.47 - 324.42 95.66 25.65 - 121.31 - 1.43 1.43 201.68 212.29
Ships 126.54 - - 126.54 30.28 7.19 - 37.47 - - - 89.07 96.26
Total 17,244.76 643.68 182.38 17,706.06 4,638.77 1,094.78 71.24 5,662.31 - 158.39 158.39 11,885.36 12,605.99
291

Includes :
a) i) Premises in co-operative societies, on ownership basis of ` 84.50 crore (31st December 2020 - ` 84.50 crore) and
` 9.33 crore (31st December 2020 - ` 7.73 crore) being accumulated depreciation thereon.
ii) ` 19.92 crore (31st December 2020 - ` 19.48 crore) being cost of roads constructed by the Group, the ownership
of which vests with the government / local authorities and ` 17.24 crore (31st December 2020 - ` 16.87 crore) being
accumulated depreciation thereon.
iii) Buildings include cost of shares 12,050 (31st December 2020 - 34,600) in various Co-operative Housing Societies, in
respect of 8 (31st December 2020 - 17) residential flats.
b)
` 73.83 crore (31st December 2020 - ` 73.47 crore) being cost of power lines incurred by the Group, the ownership of
which vests with the state electricity boards and ` 13.47 crore (31st December 2020 - ` 11.17 crore) being accumulated
c) Cost incurred by the Group, the ownership of which vests with the state maritime boards.
d) As per the website of the Ministry of Corporate affairs, certain charges aggregating Nil (31st December 2020 - ` 23.42 crore)
on properties of the Group are pending for satisfaction due to some procedural issues, although related loan amounts
have already been paid in full.
e) ` 0.07 crore (31st December 2020 - ` 5.18 crore) depreciation capitalised during construction for projects (Refer Note 8)
f) i) The title deeds of immovable properties are held in the name of the Group except for 1 case (31st December 2020
- 1 case) of Right-of-use assets (31st December 2020 leasehold land) amounting to net block of ` 1.98 crore (31st
December 2020 - ` 2.04 crore), 15 cases (31st December 2020 - 15 cases) of freehold land amounting to net block of
` 2.67 crore (31st December 2020 - ` 2.67 crore) and 2 cases (31st December 2020 - 2 cases) of Buildings amounting
to net block of ` 12.11 crores (31st December 2020 - ` 5.39 crores), respectively for which title deeds are in the name
of subsidiary and erstwhile Ambuja Cements Rajasthan Limited (merged with the Group).
ii) The Group is in the process of obtaining the title deeds of Freehold mining land of ` 131.53 Crore (31st December
2020 - ` 131.53 crore) and Building amounting to net block of ` 4.39 crore (31st December 2020 - Nil) which is included
in Property, plant and equipment.
g) Capital work in progress as at 31st December 2021 is ` 2,196.38 crore (31st December 2020 - ` 2,421.85 crore) comprises
of various projects and expansions spread over all units.
Major Capital Work-in-Progress are related to following projects :
As at As at
Project 31st December 2021 31st December 2020
Integrated plant at Marwar 337.16 1,392.00
Coal Block 31.64 103.57
Railway Siding 65.86 144.88
Waste Heat Recovery System 396.86 136.50
Flyash Dryer 43.04 -
Greenfield integrated cement plant in Ametha 433.26 65.14
Expansion of the existing grinding unit in Tikaria 253.26 10.63
Expansion of the existing grinding unit in Sindri - 168.36
Others 635.30 400.77
Total 2,196.38 2,421.85
There are no projects where activity has been suspended.
Refer Note 8 for the amount of expenditure recognised in the carrying amount of an item of Property, Plant and Equipment
/ Capital work in progress (CWIP) in the course of its construction.


h) For contractual commitment with respect to property, plant and equipment Refer Note 52.
i) During the previous year, considering lower profitability due to higher input cost, the Company had suspended part of it’s
operations at Madukkarai plant. The Group carried out a review of the recoverable amount of the tangible assets and capital
work in progress used in the cement manufacturing facility at Madukkarai. The recoverable amount from such tangible
assets and capital work in progress at Madukkarai plant was assessed to be lower than it’s total carrying amount and
consequently an impairment loss of ` 176.01 crore (including Capital work in progress ` 17.62 crore) was recognised and
disclosed as an exceptional item. The discount rate used in measuring recoverable value was 10.64 per cent per annum.
The future cash flows are derived from the detailed budgets and forecast for the next three years. Steady growth rate of
4 per cent per annum is applied beyond the forecast period. There is no change on re-assessment in the current year.
In the current year out of the total impairment charge of ` 17.62 crore on Capital work in progress, provision of ` 14.66
crore has been transferred to tangible assets on capitalisation.
j) Upon implementation of Ind AS 116 - Leases from 1st January 2020, all leasehold non-mining land, identified under the
earlier Ind AS 17 amounting ` 69.17 crore (net block) have been reclassified as Right-of-use assets. Refer Note 54 A(c).

Note 5 - Right-of-use assets
294
(Refer Note 3 (T) and (BB) for accounting policy on leases)
Gross Carrying Value Accumulated Depreciation Net Carrying Value
2021 2021 2021 2021 2021 2020
Leasehold land
(Refer Note 4 (f) and 54 A(c)) 197.81 33.43 2.18 229.06 17.19 17.00 2.19 32.00 197.06 180.62
Building and installation 12.74 1.18 1.95 11.97 3.03 2.30 1.32 4.01 7.96 9.71
Plant and Equipment 39.35 20.36 4.03 55.68 10.29 11.41 2.99 18.71 36.97 29.06
Ships and tugs 315.64 2.84 1.31 317.17 31.44 31.21 1.24 61.41 255.76 284.20
Furniture, vehicle and tools 0.44 - - 0.44 0.16 0.16 - 0.32 0.12 0.28
Total 565.98 57.81 9.47 614.32 62.11 62.08 7.74 116.45 497.87 503.87
Net
Gross Carrying Value Accumulated Depreciation Carrying
Value
Reclassified
As at Reclassified on
Particulars As at 31st As at 1st on account of Charge As at 31st As at 31st
1st January account of Ind Deductions / Deductions/

Additions December January Ind AS 116 for the December December
2020 (Refer AS 116 (Refer Transfers Transfers
2020 2020 (Refer Note (a) year 2020 2020
Note (a) below) Note (a) below)
below)
` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore ` in crore
Leasehold land
(Refer Note 4 (f), (j) and 54 A(c)) 89.97 105.98 6.93 5.07 197.81 - 2.87 15.17 0.85 17.19 180.62
Building and installation 13.54 - 0.35 1.15 12.74 - - 3.21 0.18 3.03 9.71
Plant and Equipment 56.45 - 1.27 18.37 39.35 - - 12.80 2.51 10.29 29.06
Ships and tugs 315.64 - - - 315.64 - - 31.44 - 31.44 284.20

Furniture, vehicle and tools 0.44 - - - 0.44 - - 0.16 - 0.16 0.28

Total 476.04 105.98 8.55 24.59 565.98 - 2.87 62.78 3.54 62.11 503.87
Note:
a) Refer Note 54 on adoption of Ind AS 116 ‘‘Leases’’
Note 6 - Goodwill
(Refer Note 3 (H) for accounting policy on goodwill)
Gross Carrying Value Accumulated Amortisation Net carrying value
Deductions/ Charge for Deductions/
2021 2021 2021 2021 2021 2020
Goodwill (Refer Note (a), (b) below
and 64(d)) 8,111.74 - 6.42 8,105.32 235.63 - - 235.63 7,869.69 7,876.11
Total 8,111.74 - 6.42 8,105.32 235.63 - - 235.63 7,869.69 7,876.11

2020 2020 2020 2020 2020 2019
Goodwill (Refer Note (a), (b) below
and 64(a)) 8,117.12 - 5.38 8,111.74 235.63 - - 235.63 7,876.11 7,881.49
Total 8,117.12 - 5.38 8,111.74 235.63 - - 235.63 7,876.11 7,881.49
Corporate Overview
Notes:
a) Pertains to goodwill on consolidation ` 7,869.69 crore (31st December 2020 - ` 7,876.11 crore). (Refer Note 62)

b) The Group has adopted Ind AS w.e.f. 1st January 2017. In previous GAAP, the Group was amortising goodwill. Accumulated amortisation is related to previous
GAAP.
Statutory Reports
Note 7 - Other intangible assets

(Refer Note 3 (C) and 3 (D) for accounting policy on intangible assets)
As at 1st As at 31st As at 31st As at 31st As at 31st
Deductions/ As at 1st Charge for Deductions/

Particulars January Additions December December December December
Transfers January 2021 the year Transfers
2021 2021 2021 2021 2020

Mining Rights 246.10 18.62 2.42 262.30 27.67 14.88 - 42.55 219.75 218.43
Computer software 5.34 3.78 0.03 9.09 3.34 1.60 0.03 4.91 4.18 2.00
Total 251.77 22.40 2.45 271.72 31.14 16.50 0.03 47.61 224.11 220.63

2020 2020 2020 2020 2020 2019
Mining rights 231.51 14.59 - 246.10 19.05 8.84 0.22 27.67 218.43 212.46
Computer software 4.28 1.85 0.79 5.34 3.10 0.54 0.30 3.34 2.00 1.18
Total 236.12 16.44 0.79 251.77 22.26 9.40 0.52 31.14 220.63 213.86
295
Note 8 - Capitalisation of expenditure

The Group has capitalised following expenses of revenue nature to the cost of Property, Plant and Equipment / Capital work-
in-progress. Consequently, expenses disclosed under the respective notes are net of amounts capitalised.
As at As at
Balance at the beginning of the year included in capital work-in-progress 165.05 77.33
Add : Expenditure during construction for projects
Employee benefits expenses (Refer Note (a) below) 52.31 46.27
Depreciation and amortisation expense (Refer Note 4 (e)) 0.07 5.18
Other expenses (Refer Note (b) below) 108.19 41.52
325.62 170.30
Less : Capitalised during the year (Refer Note (c) below) 266.33 5.25
Balance at the end of the year included in capital work-in-progress 59.29 165.05
Notes:
a) Costs of employee benefits (as defined in Ind AS 19 “Employee Benefits”) of project associated departments are arising
directly from the construction or acquisition of the item of property, plant and equipment.
b) Other expense are directly attributable to bringing the asset to the location and condition necessary for it to be capable
of operating in the manner intended by management.
c) During the year 2021, the Company has started commercial production at its integrated plant at Marwar in Rajasthan with
clinker capacity of 3.0 million ton per annum and cement grinding capacity of 1.8 million ton per annum.
Note 9 - Investment in associates and joint ventures

(Refer Note 3 (I) for accounting policy on investment in associates and joint ventures)
Face Value As at 31st December 2021 As at 31st December 2020
Particulars
A) Investments in associates, Unquoted, In
fully paid equity shares
Alcon Cement Company Private Limited 10 408,001 18.66 408,001 18.66
Add : Share of profit 0.33 0.29
Less : Dividend received (0.44) (0.29)
18.55 18.66
Asian Concretes and Cements Private Limited 10 8,100,000 92.92 8,100,000 84.32
102.17 92.92
120.72 111.58
B) Investments in joint ventures, Unquoted, In
fully paid equity shares
Aakaash Manufacturing Company Private
Limited 10 4,401 12.57 4,401 11.93
Less : Dividend received (1.13) -
13.38 12.57
Counto Microfine Products Private Limited
(During the previous year 675,677 shares were
bought back) 10 7,644,045 30.45 7,644,045 30.96
Less : Shares bought back - (2.87)
Less : Dividend received (2.75) (2.50)
36.41 30.45
49.79 43.02
Total (A + B) 170.51 154.60

Note 10 - Non-current investments

Face Value As at 31st December 2021 As at 31st December 2020
Particulars
A) Investments carried at amortised cost
Unquoted, In Government and trust securities
National Savings Certificate ` 36,500 (31st
December 2020 - ` 36,500), deposited with
government department as security. (Refer
Note (b) below) - -
Unquoted, In Public sector bonds
5.13% taxable redeemable bonds Himachal
Pradesh Infrastructure Development Bonds 1,000,000 37 3.70 37 3.70
3.70 3.70
B) Investments carried at fair value through
profit and loss
Kanoria Sugar & General Manufacturing
Company Limited (Refer Note (b) below) 10 4 - 4 -
Gujarat Composites Limited (Refer Note (b)
below) 10 60 - 60 -
Rohtas Industries Limited (Refer Note (b)
below) 10 220 - 220 -
The Jaipur Udyog Limited (Refer Note (b)
below) 10 120 - 120 -
Digvijay Finlease Limited (Refer Note (b) below) 10 90 - 90 -
The Travancore Cement Company Limited
(Refer Note (b) below) 10 100 - 100 -
Ashoka Cement Limited (Refer Note (b) below) 10 50 - 50 -
The Sone Valley Portland Cement Company
Limited (Refer Note (b) below) 5 100 - 100 -
Gujarat Goldcoin Ceramics Limited (Refer Note
(c) below) 10 1,000,000 - 1,000,000 -
Avaada MHBuldhana Private Limited (Refer
Note (d) below) 10 787,500 0.79 - -
Solbridge Energy Private Limited (Refer Note
(e) below) 10 11,099,594 14.11 - -
Amplus Green Power Private Limited (Refer
Note (f) below) 10 5,157,184 9.00 5,157,184 9.00
23.90 9.00
Total 27.60 12.70
Total (9+10) 198.11 167.30
Aggregate value of unquoted investments 198.11 167.30
Notes:
a) Refer Note 56 for information about fair value measurement and Note 57 for credit risk and market risk of investments.
b) Denotes amount less than ` 50,000.
c) This company is under liquidation and the Group has fully provided for the investment value.
d) During the year, the Company has subscribed 787,500 equity shares in Avaada MHBuldhana Private Limited (Avaada)
representing 0.90% holding for a total consideration of ` 0.79 crore. The Avaada has set up a solar power plant in the State
of Maharashtra of which the Company’s Panvel plant would be one of the consumer.
e) During the year, the Company and its subsidiary, ACC Limited (ACC) has subscribed 3,075,791 and 8,023,803 equity shares
in Solbridge Energy Private Limited (Solbridge) representing 26.37% holding for a total consideration of ` 14.11 crore. The
Solbridge has set up a solar power plant in the State of Chhattisgarh of which the Company’s Bhatapara plant and ACC's
Jamul would be one of the consumer.
f) During the previous year, the Company and its subsidiary, ACC Limited (ACC) has subscribed 2,578,592 equity shares
each, in Amplus Green Power Private Limited (AGPPL) representing 11.25% holding for a total consideration of ` 9.00
crore. The AGPPL has set up a solar power plant in the State of Uttar Pradesh of which the Company’s Dadri plant and
ACC’s Tikaria would be one of the consumer.

Note 11 - Group information

The consolidated financial statements comprise the financial statements of the members of the Group as under:
Proportion of ownership interest

Country of (effective holding)
Sr Name of the Company Principal activities
Incorporation As at 31st As at 31st
December 2021 December 2020
1 Direct and Indirect Subsidiaries
M.G.T Cements Private Limited Cement and cement
related products India 100.00% 100.00%
Chemical Limes Mundwa Private Limited Cement and cement
Dang Cement Industries Private Limited Cement and cement
related products Nepal 91.63% 91.63%
Dirk India Private Limited Cement and cement
ACC Limited Cement and cement
OneIndia BSC Private Limited Shared Services
(Refer Note (b) below) India 75.03% 75.03%
2 Subsidiaries of ACC Limited
Bulk Cement Corporation (India) Limited Cement and cement
(BCCI) related products India 47.37% 47.37%
ACC Mineral Resources Limited Cement and cement
Lucky Minmat Limited (Refer Note 64 (d)) Cement and cement
Singhania Minerals Private Limited Cement and cement
3 Associates of ACC Limited
Alcon Cement Company Private Limited Cement and cement
Asian Concretes and Cements Private Limited Cement and cement
4 Joint Venture
Counto Microfine Products Private Limited Cement and cement
5 Joint Venture of ACC Limited
Aakaash Manufacturing Company Private Ready mixed concrete
Limited products India 20.02% 20.02%
6 Joint Operation
Wardha Vaalley Coal Field Private Limited Cement and cement
7 Joint Operations of ACC Limited
MP AMRL (Semaria) Coal Company Limited Cement and cement
MP AMRL (Bicharpur) Coal Company Limited Cement and cement
MP AMRL (Marki Barka) Coal Company Limited Cement and cement
MP AMRL (Morga) Coal Company Limited Cement and cement
Notes:
a) The financial statements of the above companies are drawn upto the same reporting date as that of the Company.
b) The Group’s investment in equity shares of OneIndia BSC Private Limited (BSC), engaged in business shared services, is
` 5.00 crore (31st December 2020 ` 5.00 crore). The service agreement with BSC is expired and the same is not renewed.
Accordingly, the financial statements of BSC for the year ended 31st December 2021 have not been prepared on a “Going
Concern” basis. The Group has assessed that investment in BSC is fully recoverable and no impairment is necessary
considering positive net worth of ` 13.34 crore and net current assets ` 10.59 crore as at 31st December 2021.

Note 12 - Non-current loans

(Refer Note 3 (L) (I) for accounting policy on financial assets)
As at As at
Loans and advances 3.96 3.92
11.56 12.45
Unsecured loans which have significant increase in credit risk
Loans and advances 28.09 28.03
Less : allowances for doubtful loans / deposits 28.09 28.03
- -
Total 11.56 12.45
Notes:
a) Loans are non-derivative financial assets which generate a fixed or variable interest income for the Group. The carrying
value may be affected by changes in the credit risk of the counterparties.
b) No loans are due from directors or other officers of the Group or any of them either severally or jointly with any other person.
Further, no loans are due from firms or private companies in which any director is a partner, a director or a member.
c) Refer Note 57 (B) for information about credit risk.
Note 13 - Other non-current financial assets

As at As at
Security deposit 219.30 199.83
Incentives receivable under Government schemes (Refer Note 57 (B)) 929.40 1,088.53
Bank deposits with more than 12 months maturity (Refer Note (a) below) 84.92 82.13
Margin money deposit with more than 12 months maturity (Refer Note (b) below) 14.53 8.25
Others (includes interest accrued on fixed deposits) 6.97 5.18
Total 1,255.12 1,383.92
Notes:
a) Include fixed deposits of ` 10.88 crore (31st December 2020 - ` 41.84 crore) given as security against bank guarantees
and ` 31.99 crore (31st December 2020 - ` 40.04 crore) given as security to regulatory authorities.
b) Margin money deposit is against bank guarantees given to government authorities.
c) Refer Note 57 (B) for information about credit risk of other financial assets.

Note 14 - Other non-current assets

As at As at
Advances other than capital advances
Prepayments under leases - 0.33
Other claims receivable from Governments 245.07 229.24
1,141.36 1,341.18
Unsecured, considered doubtful
Incentives receivable under government incentive schemes and other receivables 36.05 36.05
44.93 46.10
Less : allowances for doubtful receivables 44.93 46.10
- -
Total 1,141.36 1,341.18
Notes:
a) No advances are due from directors or other officers of the Group or any of them either severally or jointly with any other
person. Further, no advances are due from firms or private companies in which any director is a partner, a director or a
member.
Note 15 - Inventories
At lower of cost and net realisable value (Refer Note 3 (F) for accounting policy on inventories)
As at As at
Raw materials (including in transit - ` 9.35 crore; 31st December 2020 - ` 2.80 crore) 245.39 176.82
Stock in trade (in respect of goods acquired for trading) - Nil ; 31st December 2020 - ` 4.37 crore) 18.70 16.66
Stores & spares (including in transit - ` 17.76 crore; 31st December 2020 - ` 16.91 crore) 404.48 453.68
Coal and fuel (including in transit - ` 115.49 crore; 31st December 2020 - ` 10.94 crore) 881.94 395.86
Packing materials 76.19 50.64
Others 0.88 -
Total 2,738.04 1,648.58
Notes:
a) The Group follows suitable provisioning norms for writing down the value of Inventories towards slow moving, non-moving
and surplus inventory. Provision for slow and non moving Stores and Spares in the current year is amounting to ` 29.88
crore (31st December 2020 - ` 25.34 crore).
b) No inventories have been pledged as security for liabilities.

Note 16 - Trade receivables

As at As at
Secured, considered good 78.22 91.67
Unsecured, considered good 567.61 469.46
Unsecured which have significant increase in credit risk 81.45 91.40
727.28 652.53
Less : allowance for doubtful trade receivables 81.45 91.40
Total 645.83 561.13
Notes:
a) No trade receivables are due from directors or other officers of the Group or any of them either severally or jointly with any
other person. Further, no trade receivables are due from firms or private companies in which any director is a partner, a
director or a member.
b) Refer Note 55 for receivables from related parties.
c) Refer Note 57 (B) for information about credit risk of trade receivables.
Note 17 - Cash and cash equivalents

(Refer Note 3 (V) for accounting policy on cash and cash equivalents)
As at As at
Balances with banks
In current accounts 208.60 173.12
Deposit with original maturity upto 3 months 10,041.35 7,258.49
10,249.95 7,431.61
Deposit with other than banks with original maturity of upto 3 months 250.00 450.00
Post office saving accounts 0.01 0.01
250.01 450.01
Investments in liquid mutual funds measured at FVTPL 858.53 689.94
Total 11,358.49 8,571.56
Note:
a) Refer Note 57 (B) for information about market risk.
Note 18 - Bank balances other than cash and cash equivalents

As at As at
Earmarked balances with banks (Refer Note (a) below) 52.55 60.78
Margin money deposit (Refer Note (b) below) 1.31 -
Fixed deposit with banks (original maturity more than 3 months and upto 12 months)
(Refer Note (c) below) 281.94 303.29
Total 335.80 364.07
Notes:
a) These balances represent unpaid dividend liabilities of the Company and unclaimed sale proceeds of the odd lot shares
belonging to the shareholders of erstwhile Ambuja Cements Rajasthan Limited (merged with the Company) not available
for use by the Company.
b) Margin money deposit is against bank guarantees given to Government authorities.
c) Including fixed deposit with lien in favour of National Company Law Appellate Tribunal (NCLAT) ` 265.40 crore including
interest there on (31st December 2020 - ` 257.05 crore), (Refer Note 50(b)(i)) and other deposits amounting Nil (31st
December 2020 - ` 25.00 crore) given as security against bank guarantees and ` 16.05 crore (31st December 2020 -
` 20.77 crore) given as security to regulatory authorities.

Note 19 - Current loans

As at As at
Unsecured, considered good (includes loans to employees) 9.91 8.85
Total 9.91 8.85
Notes:
a) No loans are due from directors or other officers of the Group or any of them either severally or jointly with any other person.
Further, no loans are due from firms or private companies in which any director is a partner, a director or a member.
b) Refer Note 57 (B) for information about credit risk of loans.
Note 20 - Other current financial assets

As at As at
Interest accrued on fixed deposit, certificate of deposits and others 4.45 5.43
Interest accrued on investment 13.61 8.29
Deposits with banks with original maturity of more than 12 months (Refer Note (a) below) 18.50 1.08
474.25 399.56
Unsecured which have significant increase in credit risk
Less : allowance for doubtful other receivable 12.03 12.14
- -
Total 474.25 399.56
Notes:
a) Deposits of ` 9.25 crore (31st December 2020 - ` 1.08 crore) given as security to regulatory authorities.
b) Refer Note 57 (B) for information about credit risk of other financials assets.
Note 21 - Other current assets

As at As at
Advances other than capital advances (Refer Note (a) below)
Advances 552.81 399.39
Balances with statutory / government authorities 781.09 633.82
Prepaid expenses 77.51 82.97
Others 23.25 37.51
1,434.66 1,153.69
Unsecured, which have significant increase in credit risk
Less : allowance for doubtful receivables 17.88 17.88
- -
Total 1,434.66 1,153.69
Notes:
a) No advances are due from directors or other officers of the Group or any of them either severally or jointly with any other person.
Further, no advances are due from firms or private companies in which any director is a partner, a director or a member.

Note 22 - Non-current assets classified as held for sale

(Refer Note 3 (Q) for accounting policy on Non-current assets held for sale)
As at As at
Investment in subsidiary held for sale (Refer Note (a) below) 23.11 23.22
Plant and equipment (Refer Note (b) and (c) below) 1.28 1.76
Building (Refer Note (b) and (c) below) 1.05 1.15
Total 25.44 26.13
Notes:
a) The Group has entered into share purchase agreement for sale of its entire investment in Dang Cement Industries Private
Limited, a subsidiary company, subject to fulfillment of certain conditions. Transaction is expected to be completed in the
next 12 months. Pending fulfilment such conditions, all of it’s assets have been classified as held for sale.
b) The Group intends to dispose off plant and equipment and Building in the next 12 months which it no longer intends to
utilise. A selection of potential buyers is underway.
c) During the year, the Group has sold a flat for ` 4.25 crore (Book Value ` 0.32 crore) which was classified as held for sale.
The resultant gain of ` 3.93 crore has been disclosed in the Consolidated Statement of Profit and Loss under Other Income.
Note 23 - Equity share capital

(Refer Note 3 (L) (II) (a) for accounting policy on equity instruments)
As at As at
Authorised
40,000,000,000 (31st December 2020 - 40,000,000,000) Equity shares of ` 2 each 8,000.00 8,000.00
150,000,000 (31st December 2020 - 150,000,000) Preference shares of ` 10 each 150.00 150.00
Total 8,150.00 8,150.00
Issued
Subscribed and paid-up

Notes:
a) Reconciliation of equity shares outstanding
Particulars
No. of shares ` in crore No. of shares ` in crore
At the beginning of the year 1,985,645,229 397.13 1,985,645,229 397.13
Changes during the year - - - -
At the end of the year 1,985,645,229 397.13 1,985,645,229 397.13
b) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of ` 2 per share. Each shareholder is entitled to one
vote per equity share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in
the ensuing Annual General Meeting, except in case of interim dividend.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholder.

Note 23 - Equity share capital (Contd.....)

c) Equity shares held by holding company / ultimate holding company and / or their subsidiaries
As at As at
Holderind Investments Limited, Mauritius - holding company (a subsidiary of Holcim Limited
(Erstwhile LafargeHolcim Limited), Switzerland, the ultimate holding company)
d) Details of equity shares held by shareholders holding more than 5% shares in the Company
Particulars
No. of shares % holding No. of shares % holding
Holderind Investments Limited, Mauritius 1,253,156,361 63.11% 1,253,156,361 63.11%
As per the records of the Company, including its register of shareholders / members and other declarations received
from shareholders regarding beneficial interest, the above shareholdings represent both legal and beneficial ownership
of shares.
e) Outstanding tradable warrants and right shares

Outstanding tradable warrants and right shares are kept in abeyance exercisable into 186,690 (31st December 2020 -
186,690) and 139,830 (31st December 2020 - 139,830) equity shares of ` 2 each fully paid-up respectively.
f) Aggregate no. of shares issued for consideration other than cash during the period of five years immediately
preceding the reporting date
Pursuant to the Scheme of amalgamation of Holcim (India) Private Limited (HIPL) with the Company in August 2016,
584,417,928 equity shares were allotted as fully paid up to the equity shareholders of HIPL, without payment being received
in cash.
g) There are no other securities which are convertible into equity shares.
Note 24 - Capital management

a) The Group’s objectives when managing capital are to maximise shareholders value through an efficient allocation of capital
towards expansion of business, optimisation of working capital requirements and deployment of balance surplus funds
on the back of an effective portfolio management of funds within a well defined risk management framework.
b) The management of the Group reviews the capital structure of the Group on regular basis to optimise cost of capital. As
part of this review, the Board considers the cost of capital and the risks associated with the movement in the working
capital.
c) The Group generally meets its capital requirement through internal accruals. The borrowings as appearing in the Notes 27
and 36 represents Interest Free Loan from State Government considered as Government grant. The Group is not subject
to any externally imposed capital requirements.
As at As at
Total debt (including current maturities of borrowings) (Refer Notes 27 and 36) 46.94 43.60
Less : Cash and cash equivalents (Refer Note 17) 11,358.49 8,571.56
Net debt (11,311.55) (8,527.96)
Total equity 32,498.77 29,098.49
Net Debt to Equity Nil Nil

Note 25 - Dividend distribution made and proposed

A) Dividend paid on equity shares
i) Final dividend for the year ended 31st December 2020 ` 1.00 per share (31st December
2019 - Nil) 198.56 -
ii) Interim dividend ` 1.50 per share (Refer Note (b) below) - 297.85
iii) Interim dividend for the year ended 31st December 2020 ` 17 per share - 3,375.60
Total 198.56 3,673.45
B) Dividend proposed on equity shares

Final dividend for the year ended 31st December 2021 ` 6.30 per share (31st December 2020
- ` 1.00 per share) (Refer Note (a)) 1,250.96 198.56
Total 1,250.96 198.56
Notes:
a) Proposed dividends on equity shares are subject to approval at the Annual General Meeting and are not recognised as a
liability.
b) Due to COVID-19 pandemic there was a delay in conducting Annual General Meeting and consequent delay in payment of
final dividend. The Board of Directors revoked the recommendation for payment of final dividend for the year ended 31st
December 2019 and declared an interim dividend for the financial year ended 31st December 2019 at ` 1.50 per share in
the Board Meeting held on 12th May 2020.
Note 26 - Other equity

(Refer the Consolidated Statement of Changes in Equity for detailed movement in other equity balances)
As at As at
Reserve and surplus (nature and purpose of each reserve is given in notes below)
a) Capital reserve 130.71 130.71
b) Securities premium account 12,471.16 12,471.16
c) General reserve 5,814.49 5,814.49
d) Capital redemption reserve 9.93 9.93
e) Subsidies 5.02 5.02
f) Capital contribution from parent 9.10 3.18
g) Retained earnings 6,516.20 3,925.98
Total 24,956.61 22,360.47
Nature and purpose of each reserve :

a) Capital reserve
This reserve has been transferred to the Group in the course of business combinations and can be utilised in accordance
with the provisions of the Companies Act, 2013.
b) Securities premium
This reserve represents the premium on issue of shares and can be utilised in accordance with the provisions of the
c) General reserve
The Group created a general reserve in earlier years pursuant to the provisions of the Companies Act, 1956 wherein certain
percentage of profits were required to be transferred to general reserve before declaring dividends. As per the Companies
Act 2013, the requirement to transfer profits to general reserve is not mandatory. General reserve is a free reserve available
to the Group.

Note 26 - Other equity (Contd.....)

d) Capital redemption reserve
Capital redemption reserve was created by transferring from retained earnings. In the year ended 30th June 2005, part
of the amount was used for issue of bonus shares. The balance will be utilised in accordance with the provisions of the
e) Subsidies
These are capital subsidies received from the Government and other authorities.
f) Capital contribution from parent

Capital contribution from parent represents the fair value of the employee performance share plan. These shares are
granted by parent company “Holcim Limited” to the employees of the Group. The share based payment reserve is used
to recognise the value of equity settled Share based payments provided to executives and senior management.
g) Retained earnings
Retained earnings are the profits that Group has earned till date, less transfers to general reserve, dividends or other
distributions paid to shareholders. Retained earnings includes re-measurement loss / (gain) on defined benefit plans (net
of taxes) that will not be reclassified to the Consolidated Statement of Profit and Loss. Retained earnings is a free reserve
available to the Group.
Note 27 - Non-current borrowings

(Refer Note 3 (L) (II) (b) for accounting policy on financial liabilities)
As at As at
Secured
Interest free loan from State Government (Refer Notes (a) below) 43.50 43.60
Total 43.50 43.60
Notes:
a) Interest free loan from State Government granted under State investment promotion scheme has been considered as
a Government grant. This is secured by bank guarantees (majorly backed by pledge of bank fixed deposits). Each loan
repayable in single installment, starting from August 2022 to January 2027 of varying amounts ranging from ` 3.59 crore
to ` 13.39 crore. During the previous year, the Company has paid one of the installment of ` 5.86 crore due in February
2020. Next installment is due in August 2022.

(Refer Note 3 (T) for accounting policy on leases)
As at As at
Lease liability (Refer Note 54) 362.52 380.62
Total 362.52 380.62
Note 29 - Other non-current financial liabilities

As at As at
Total 0.13 0.13

Note 30 - Non-current provisions

(Refer Note 3 (M) (I) and 3 (P) for accounting policy on provisions and retirement and other employee benefits)
As at As at
Provision for gratuity and other staff benefit schemes (Refer Note 53) 178.76 177.96
Long service award and other benefit plans 4.94 5.77
Provision for mines reclamation expenses (Refer Note (a) below) 97.84 87.68
Total 281.54 271.41
Note:
a) Mines reclamation expenses are incurred on an ongoing basis until the respective mines are not fully restored, in accordance
with the requirements of the mining agreement. The actual expenses may vary based on the nature of reclamation and the
estimate of reclamation expenses. Movement of provisions during the year is as under :
As at As at
Opening balance 87.68 67.12
Add : Provision during the year 7.87 17.91
95.55 85.03
Add : Unwinding of discounting 3.66 2.84
Less : Provision utilised during the year 1.37 0.19
Note 31 - Deferred tax liabilities (net)

(Refer Note 3 (S) (II) for accounting policy on deferred tax)
As at As at
Depreciation and amortisation 1,057.45 1,022.69
Undistributed profits of subsidiaries, joint venture and associates 164.64 55.88
1,222.09 1,078.57
Provision for employee benefits 70.47 61.09
Provision for slow and non-moving spares 26.03 20.23
Expenditure debited in the Consolidated Statement of Profit and Loss but allowed for tax
purposes in the following years 122.12 132.13
Expected credit loss on incentives receivable from government 32.45 32.45
Others 214.83 206.67
465.90 452.57
Deferred tax liabilities / (assets) (net) 756.19 626.00

Note 31 - Deferred tax liabilities (net) (Contd.....)

The major components of deferred tax liabilities / assets on account of timing differences are as follows:
Charge / (Credit) to Charge /
As at the Consolidated (Credit) to Other As at
Particulars 1st January 2021 Statement of Profit Comprehensive 31st December 2021
and Loss Income
Depreciation and amortisation 1,022.69 34.76 - 1,057.45
Undistributed profits of subsidiaries, joint venture
and associates 55.88 108.76 - 164.64
1,078.57 143.52 - 1,222.09
Provision for employee benefits 61.09 13.13 (3.75) 70.47
Expenditure debited in the Consolidated Statement
of Profit and Loss but allowed for tax purposes in
the following years 132.13 (10.01) - 122.12
Expected credit loss on incentives receivable from
government 32.45 - - 32.45
Others 206.67 8.16 - 214.83
452.57 17.08 (3.75) 465.90
Deferred tax liabilities / (assets) (net) 626.00 126.44 3.75 756.19
Deferred tax assets (net) 2.91 - - 2.91
Charge / (Credit) Charge /

As at to the Consolidated (Credit) to Other As at
Particulars 1st January 2020 Statement of Profit Comprehensive 31st December 2020
and Loss Income
Depreciation and amortisation 1,360.95 (338.26) - 1,022.69
Undistributed profits of subsidiaries, joint venture
and associates 70.33 (14.45) - 55.88
1,431.28 (352.71) - 1,078.57
Provision for employee benefits 113.73 (46.46) (6.18) 61.09
Expenditure debited in the Consolidated Statement
of Profit and Loss but allowed for tax purposes in
the following years 153.00 (20.87) - 132.13
Expected credit loss on incentives receivable from
government - 32.45 - 32.45
Others 209.21 (2.54) - 206.67
494.55 (35.80) (6.18) 452.57
Deferred tax liabilities / (assets) (net) 936.73 (316.91) 6.18 626.00
Deferred tax assets (net) 4.16 (1.25) - 2.91
Notes:
a) The Group has not recognised deferred tax liability on undistributed earnings in subsidiaries to the extent of ` 12,731.57
crore (31st December 2020 - ` 11,408.00 crore) considering its ability to control the timing of the reversal of temporary
differences associated with such undistributed earnings and it is probable that such differences will not reverse in the
foreseeable future.
b) The Group has long term capital losses and business losses including unabsorbed depreciation of ` 37.17 crore (31st
December 2020 - ` 36.10 crore) for which no deferred tax assets have been recognised. A part of these losses will expire
between financial years 2021-22 to 2028-29.
c) The Group offsets tax assets and liabilities if and only if it has a legally enforceable right to set-off current tax assets and current
tax liabilities and the deferred tax assets and deferred tax liabilities related to income taxes levied by the same tax authority.

Note 32 - Reconciliation of tax expense and the profit multiplied by income tax rate
` in crore In % ` in crore In %
Profit before share of profit of associates and joint ventures
and tax expenses 5,144.24 3,977.15
Tax expenses at statutory income tax rate (Refer Note (a) below) 1,295.10 25.17% 1,048.77 26.37%
Effect of non deductible expenses 49.27 0.96% 31.55 0.79%
Effect of allowances / tax holidays for tax purpose (0.39) -0.01% (15.75) -0.40%
Reversal of opening deferred tax liability on account of
change in tax rate (Refer Note (b) below) - - (189.61) -4.76%
Effect of change in tax rate on deferred tax - - (2.87) -0.07%
Effect of undistributed earnings of subsidiary and joint venture 105.44 2.05% (19.69) -0.50%
Others 4.01 0.08% 32.35 0.82%
Tax expenses at the effective income tax rate 1,453.43 28.25% 884.75 22.25%
Tax expense reported in the Consolidated Statement Profit
and Loss 1,453.43 28.25% 884.75 22.25%
Notes:
a) Group follows calender year as financial year, therefore applicable statutory income tax rate is weighted average rate. The
tax rate used for above reconciliation is the Corporate tax rate payable by Corporate entities in India on taxable profits
under Indian tax law.
b) The Government of India has inserted section 115BAA in the Income Tax Act, 1961, which provides domestic companies
an option to pay Corporate Tax at reduced rate effective 1st April 2019, subject to certain conditions. ACC Limited,
a subsidiary of the Company has adopted the reduced rate and accordingly, opening net deferred tax liability as on
1st January 2020 amounting to ` 179.57 crore has been reversed (net of reversal of deferred tax assets of ` 10.04 crore in
Other Comprehensive Income) during the year ended 31st December 2020.
Note 33 - Other non current liabilities

As at As at
Rebate to customers 36.74 40.05
Total 36.74 40.05
Note 34 - Total outstanding dues of micro and small enterprises

As at As at
Details of due to Micro and Small Enterprises as defined under Section 22 of the Micro, Small and
Medium Enterprises Development Act, 2006 is based on the information available with the Group
regarding the status of the suppliers (Refer Note (a) below).
a) The principal amount and the interest due thereon remaining unpaid to any supplier as at the
end of each accounting year.
Interest 0.30 0.05
35.15 8.76
b) The amount of interest paid by the buyer in terms of Section 16 along with the amount of the
payment made to the supplier beyond the appointed day during the year
Interest 0.13 0.08
c) The amount of interest due and payable for the period of delay in making payment (which has
been paid but beyond the appointed day during the year) but without adding the interest specified 0.03 0.01
d) The amount of interest accrued and remaining unpaid at the end of the year 0.12 0.06
e) The amount of further interest remaining due and payable even in the succeeding years, until
such date when the interest dues as above are actually paid to the small enterprise for the
purpose of disallowance as a deductible expenditure under Section 23 of Micro, Small and
Medium Enterprises Development Act, 2006. - -
Note:
a) Above information has been determined to the extent such parties have been identified on the basis intimation received
from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006.


(Refer Note 3 (T) for accounting policy on leases)
As at As at
Current portion of lease liability (Refer Note 54) 67.11 46.38
Total 67.11 46.38
Note 36 - Other current financial liabilities

As at As at
Financial Liabilities at amortised cost
Security deposit from dealers 1,293.24 1,292.30
Unpaid dividends (Refer Note (a) below) 50.05 58.28
Unclaimed sale proceeds of the odd lot shares belonging to the shareholders of erstwhile ACRL 2.50 2.50
Current maturities of borrowings (Refer Note 27) 3.44 -
Others (includes interest on security deposits) 251.34 188.94
Financial Liabilities at fair value
Foreign currency forward contract 3.26 1.32
Total 2,008.86 1,747.68
Note:
a) Amount to be transferred to the Investor education and protection fund shall be determined on the respective due dates
and does not include any amounts due and outstanding to be credited to Investor Education and Protection Fund on the
basis of the information available with the Group.
Note 37 - Other current liabilities

As at As at
Contract liability (Refer Note (a) below)
Advance received from customers 394.53 279.14
Other liabilities
Statutory dues 1,302.82 1,110.93
Rebates to customers 1,007.05 919.43
Other payables (includes interest on income tax) 1,601.47 1,601.40
Total 4,305.87 3,910.90
Note:
a) The contract liability outstanding at the beginning of the year has been recognised as revenue during the year ended
31st December 2021.

Note 38 - Current provisions

(Refer Note 3 (P) for accounting policy on retirement and other employee benefits)
As at As at
Provision for gratuity and staff benefit schemes (Refer Note 53) 11.60 8.86
Long service award and other benefit plans 0.94 0.90
Provision for compensated absences (Refer Note (a) below) 12.10 11.38
Total 24.64 21.14
Note:
a) Liability towards provision for compensated absences is funded. Above liability is to the extent of unfunded amount.
Note 39 - Revenue from operations

(Refer Note 3 (O) (I) for accounting policy on revenue recognition and 3 (W) for accounting policy on government
grants and subsidies)
As at As at
Revenue from contracts with customers
Sale of manufactured products 27,890.95 23,557.86
Sale of traded products 653.79 526.44
Income from services rendered 3.34 9.56
28,548.08 24,093.86
Other operating revenues
Provisions no longer required written back 18.53 11.86
Sale of scrap 129.60 74.05
Incentives and subsidies (Refer Note (f) below) 157.93 210.23
Miscellaneous income (includes insurance claims and others) (Refer Note (f) below) 111.32 126.17
Total 28,965.46 24,516.17
Notes:
a) Reconciliation of revenue as per contract price and as recognised in the Consolidated Statement of Profit and Loss :

Revenue as per contract price 32,890.14 27,222.16
Less: Discounts and incentives 4,342.06 3,128.30
Revenue as per the Consolidated Statement of Profit and Loss 28,548.08 24,093.86
b) The amounts receivable from customers become due after expiry of credit period which on an average is 30 days. There
is no significant financing component in any transaction with the customers.
c) The Group does not provide performance warranty for products, therefore there is no liability towards performance
warranty.
d) The Group does not have any remaining performance obligation as contracts entered for sale of goods are for a shorter
duration.
e) Disaggregation of revenue:
Refer Note 58 for disaggregated revenue information. The management determines that the segment information reported
is sufficient to meet the disclosure objective with respect to disaggregation of revenue under Ind AS 115 "Revenue from
contracts with customers".

Note 39 - Revenue from operations (Contd.....)

f) Government grants recognized in the Consolidated Statement of Profit and Loss

Incentives and subsidies (Refer Note (g) below) 157.93 210.23
Discounting income on interest free loan from State Government included in miscellaneous
income above - 3.25
Total 157.93 213.48
g) Accrued for the GST refund claim, under various incentive schemes of State and Central Government. There are no
unfulfilled conditions or contingencies attached to these grants.
Note 40 - Other income

(Refer Note 3 (O) (II) and (III) for accounting policy on interest income and dividends)
Interest income on
Bank deposits at effective interest rate method 284.45 372.09
Income tax refund 12.79 18.41
Defined benefit obligation (net) (Refer Note 53) 0.15 -
Others 7.01 11.06
304.40 401.56
Other non operating income
Gain on sale of current financial assets measured at FVTPL 17.80 26.65
Net gain on fair valuation of liquid mutual fund measured at FVTPL (Refer Note (a) below) 0.37 0.47
Interest on income tax write back 29.22 5.77
Gain on sale of investment in subsidiary company - 12.91
Others 0.65 2.23
Total 352.44 449.59
Notes:
a) These instruments are measured at fair value through profit or loss in accordance with Ind AS 109
Note 41 - Cost of materials consumed

Inventories at the beginning of the year 178.72 172.87
Add : Purchases during the year 3,250.08 2,536.82
3,428.80 2,709.69
Less : Inventories at the end of the year 245.39 176.82
Cost of materials consumed (Refer Note (a) and (b) below) 3,183.41 2,532.87
Notes:
a) Break-up of cost of materials consumed
Fly ash 977.40 756.86
Gypsum 563.78 462.74
Slag 358.50 288.05
Others (Refer Note (b) below) 1,283.73 1,025.22
Total 3,183.41 2,532.87
b) Includes no item which in value individually accounts for 10 % or more of the total value of materials consumed.

Note 42 - Purchases of stock-in-trade

Cement 249.88 289.73
Ready mix concrete 2.84 3.52
Solution and Products 56.49 41.67
Total 309.21 334.92
Note 43 - Change in inventories of finished goods, work-in-progress and stock-in trade

Inventories at the end of the year
Stock-in-trade 18.70 16.66
1,129.16 571.58
Inventories at the beginning of the year
Stock-in-trade 16.66 9.36
571.58 828.39
Less : Transfer on sale of subsidiary company - 0.36
Add : Trial run stocks, at the commencement of commercial production at Marwar plant 27.24 -
598.82 828.03
(Increase) / decrease in inventories (530.34) 256.45
Note 44 - Employee benefit expense

Salaries and wages 1,317.26 1,348.77
Contribution to provident and other funds 118.13 114.55
Employee stock option expenses (Refer Note 65) 8.01 3.66
Staff welfare expenses 85.75 73.42
Total 1,529.15 1,540.40
Note 45 - Finance costs

Interest on
Income tax (net of interest income on refund - ` 15.50 crore; previous year - ` 61.84 crore) 28.45 22.86
Defined benefit obligation (net) (Refer Note 53) 9.01 14.49
Security deposit 29.67 32.48
Others 46.94 37.75
114.07 107.58
Unwinding of financial liabilities 3.34 3.19
Unwinding of interest on lease liability (Refer Note (a) below) 24.59 26.61
Unwinding of mines reclamation provision (Refer Note 30) 3.66 2.84
Total 145.66 140.22
Notes:
a) On adoption of Ind AS 116 Leases, the Group has recognised Right-of-use assets and created lease obligation representing
present value of future minimum lease payments. The unwinding of such obligation is recognised as interest expense.

Note 46 - Depreciation and amortisation expense

(Refer Note 3 (B) and 3 (D) for accounting policy on depreciation and amortisation)
Depreciation on property, plant and equipment (Refer Note 4) 1,073.98 1,094.78
Less : Pre-operative charge during the year (Refer Note 8) 0.07 5.18
1,073.91 1,089.60
Depreciation on Right-of-use assets (Refer Note 5) 62.08 62.78
Amortisation of intangible assets (Refer Note 7) 16.50 9.40
Total 1,152.49 1,161.78
Note 47 - Freight and forwarding expense

On finished products 5,680.20 5,082.52
On internal material transfer 1,452.70 1,189.02
Total 7,132.90 6,271.54
Note 48 - Other expenses

Royalty on minerals 557.43 471.15
Consumption of stores and spare parts 552.61 450.71
Consumption of packing materials 1,053.39 731.45
Repairs 351.09 279.98
Rent (Refer Note 54) 169.58 136.62
Rates and taxes 206.13 169.83
Insurance 77.41 51.68
Technology and know-how fees 285.76 240.65
Advertisement 175.62 120.51
Corporate Social Responsibility (Refer Note (a) below) 99.97 84.64
Expected credit loss on Incentives under Government schemes (Refer Note 57 (B)) - 128.92
Loss on account of exchange rate difference (net) 9.88 11.68
Impairment losses on financial assets (including reversals of impairment losses) (10.87) 37.34
Miscellaneous expenses (Refer Note (b) below) 859.84 853.76
Total 4,387.84 3,768.92
Notes:
a) Includes ` 35.95 crore (previous year ` 32.33 crore) expenses incurred by ACC Limited, a subsidiary company.
b) Miscellaneous expenses :
i) Does not include any item of expenditure with a value of more than 1% of Revenue from operations.
ii) Includes expenses towards information technology, travelling, consultancy, site restoration, outsource services and
others.

Note 49 - Earnings per share (EPS)

(Refer Note 3 (X) for accounting policy on earnings per share)
a) Basic EPS is calculated by dividing profit for the year attributable to equity shareholders of the Company by the weighted
average number of Equity shares outstanding during the year.
b) Diluted EPS amounts are calculated by dividing the profit attributable to equity shareholders of the Company by the
weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares
that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.
c) Calculation of the basic and diluted EPS :

i) Profit attributable to equity shareholders of the Company for basic and diluted EPS (` in crore) 2,780.38 2,365.44
ii) Weighted average number of equity shares for basic EPS 1,985,645,229 1,985,645,229
Add : P
otential equity shares on exercise of rights and warrants kept in abeyance out of the
rights issue in 1992 319,824 315,403
iii) Weighted average number of shares for diluted EPS 1,985,965,053 1,985,960,632
iv) Earnings per equity share (in `)
Face value of equity per share 2.00 2.00
Basic 14.00 11.91
Diluted 14.00 11.91
Note 50 - Contingent liabilities (to the extent not provided for)

(Refer Note 3 (M) (II) for accounting policy on contingent liability)
As at As at
Contingent liabilities and claims against the group not acknowledged as debts related to
various matters (Refer Note (a) below)
Labour 8.87 11.15
Land 22.37 50.68
Demand from Competition Commission of India (Refer Note (b) below) 3,776.40 3,517.59
Sales tax (Refer Note (c) below) 291.51 303.45
Excise customs and service tax (Refer Note (d) below) 381.51 376.80
Stamp duty (Refer Note (e) below) 310.34 305.88
Income tax (Refer Note (f) below) 1,090.82 1,093.23
Others (including claim for Mining Lease, Refer Note (g) below and 63) 434.11 410.09
6,315.93 6,068.87
Notes:
a) i) In respect of above matters, future cash outflows are determinable only on receipt of judgements / decisions pending
at various forums / authorities.
ii) The Group does not expect any reimbursements in respect of the above contingent liabilities.
iii) The Group has reviewed all its pending litigations and proceedings and has adequately provided for where provisions
are required and disclosed as contingent liabilities where applicable, in its consolidated financial statements. The
Group does not expect the outcome of these proceedings to have a materially adverse effect on its financial position.

Note 50 - Contingent liabilities (to the extent not provided for) (Contd.....)
b) Demand from Competition Commission of India
i) In 2012, the Competition Commission of India (CCI) had imposed a penalty of ` 1,163.91 crore on the Company and
` 1,147.59 crore on its subsidiary ACC Limited, aggregating to ` 2,311.50 crore, concerning alleged contravention of
the provisions of the Competition Act, 2002. On appeal by the Company and ACC Limited, the Competition Appellate
Tribunal (COMPAT), initially stayed the penalty and by its final order dated 11th December 2015, set aside the order
of the CCI, remanding the matter back to the CCI for fresh adjudication and for passing a fresh order.
After hearing the matter afresh, the CCI had again, by its order dated 31st August 2016, imposed penalty of ` 1,163.91
crore on the Company and ` 1,147.59 crore on ACC Limited, aggregating to ` 2,311.50 crore. The Company and ACC
Limited filed appeals against the said Order before the COMPAT. The COMPAT, vide its interim order dated 21st
November 2016 has stayed the penalty with a condition to deposit 10% of the penalty amount, in the form of fixed
deposit (the said condition has been complied with) and levy of interest of 12% p.a., in case the appeal is decided
against the appellant. Meanwhile, pursuant to the notification issued by Central Government on 26th May 2017,
any appeal, application or proceeding before COMPAT is transferred to National Company Law Appellate Tribunal
(NCLAT).
NCLAT, vide its Order dated 25th July 2018, dismissed the appeal filed by the Company and ACC Limited and upheld
the CCI’s order. Against this, the Company and ACC Limited appealed to the Hon'ble Supreme Court, which by its
order dated 5th October 2018 admitted the appeal and directed to continue the interim order passed by the Tribunal,
in the meantime.
ii) In a separate matter, pursuant to a reference filed by the Director, Supplies and Disposals, Government of Haryana,
the CCI by its Order dated 19th January 2017 had imposed penalty of ` 29.84 crore on the Company and ` 35.32 crore
on ACC Limited, aggregating to ` 65.16 crore. On appeal by Company and ACC Limited, the COMPAT has stayed the
operation of CCI's order in the meanwhile. The matter is listed before NCLAT and is pending for hearing.
Based on the advice of external legal counsels, the Company and ACC Limited believe they have good grounds on
merit for a successful appeal in both the aforesaid matters. Accordingly, no provision is considered necessary and
the matter has been disclosed as contingent liability along with interest of ` 1,399.74 crore (31st December 2020 -
` 1,140.93 crore).
c) Sales tax matter includes :
A matter relating to 75% exemption from sales tax granted by Government of Rajasthan. However, the eligibility of
exemption in excess of 25% was contested by the State Government in a similar matter of another Company.
In year 2014, pursuant to the unfavourable decision of the Hon'ble Supreme Court in that similar matter, the sales tax
department initiated proceedings for recovery of differential sales tax and interest thereon on the ground that the Company
had given an undertaking to deposit the differential amount of sales tax, in case decision of the Hon'ble Supreme Court
goes against in this matter.
Against the total demand of ` 247.97 crore, including interest of ` 134.45 crore the Company deposited ` 143.52 crore,
including interest of ` 30 crore, towards sales tax under protest and filed a Special Leave Petition in the Hon'ble Supreme
Court with one of the grounds that the tax exemption was availed by virtue of the order passed by the Board for Industrial
and Financial Reconstruction (BIFR) during the relevant period. On Company’s petition, the Hon’ble Supreme Court has
granted an interim stay on the balance interest. Based on the advice of external legal counsel, the Company believes that,
it has good grounds for a successful appeal. Accordingly, no provision is considered necessary.
d) Excise, customs and service tax includes :
A matter wherein service tax department issued show cause notices for denial of cenvat credit with regard to service
tax paid on outward transportation for sale to customers on Freight On Road (F.O.R.) basis. The Group availed the credit
based on legal provision and various judicial precedence. On the same matter of another cement company, the Hon'ble
Supreme Court has allowed service tax credit, however, in another case of the same company, the Hon'ble Supreme Court
has decided against the assessee. Considering conflicting decision and Central Board of Excise and Customs (CBIC)
circular, based on legal opinion, the Group has treated the same as “possible”. Accordingly, ` 291.00 crore (31st December
2020 - ` 287.44 crore) has been disclosed as contingent liability.

Note 50 - Contingent liabilities (to the extent not provided for) (Contd.....)
e) Stamp duty includes :
A matter wherein the Collector of Stamps, Delhi vide its Order dated 7th August 2014, directed erstwhile Holcim (India)
Private Limited (HIPL), (merged with the Company), to pay stamp duty (including penalty) of ` 287.88 crore (31st December
2020 - ` 287.88 crore) on the merger order passed by Hon’ble High Court of Delhi, approving the merger of erstwhile
Ambuja Cement India Limited with HIPL. HIPL had filed a writ petition and the Hon'ble High Court of Delhi granted an
interim stay. Based on the advice of external legal counsel, the Company believes that it has good grounds for success
in writ petition. Accordingly, no provision is considered necessary.
f) Income tax includes :
The Company and its subsidiary, ACC Limited, (ACC) were entitled to incentives from Government at its plant located in
the states of Himachal Pradesh and Uttarakhand in respect of Income tax assessment years 2006-07 to 2015-16. Both
the Companies contended that the said incentives are in the nature of capital receipts and hence not liable to income tax.
The Income tax department had initially not accepted this position and appeals were pending with the Commissioner
of Income tax-appeals (CIT-A). Both the Companies had received one favourable order each from the assessing officer
and one appellate order from the CIT-A, against which the department filed an appeal in the Income Tax Tribunal (ITAT).
Considering unfavourable orders by the Income tax department the Group up to 31st December 2017 had classified the
risk for these matters as probable and provided for the same.
In the year 2018, the CIT-A decided the matter in favour of both the Companies for two more years, against which the
department filed an appeal in the ITAT.
In view of the series of repeated favourable orders by the Income tax department in the previous year, coupled with the
fact, that ACC Limited a subsidiary company also received favourable orders, the Group again reviewed the matter and,
after considering the legal merits of the Group’s claim, including inter-alia, the ratio of the decisions of Hon’ble Supreme
Court, and the pattern of favourable orders by the department including favourable disposal of the Group’s appeal by the
CIT (A), as mentioned above, the Group reassessed the risk and concluded that the risk of an ultimate outflow of funds
for this matter is no longer probable.
The department had issued show cause notices for revisionary proceedings under Section 263 of the Income-Tax Act, 1961 in
the year 2018 in respect of excise incentives for two years. In the previous year, the ITAT had directed the Assessing Officer to
re-examine and take final decision independently.
Pending final legal closure of this matter, income tax amount of ` 872.64 crore (31st December 2020 - ` 872.64 crore)
along with interest payable of ` 214.99 crore (31st December 2020 - ` 214.99 crore) has been disclosed under contingent
liabilities
g) Claim for Mining Lease includes :
ACC Limited, a subsidiary of the Company, has received demand notice dated 10th May 2013 from the Government of
Tamil Nadu, and an Order dated 22nd August 2019 passed by the Collector, Coimbatore seeking Annual Compensation for
the period from 1st April 1997 to 31st March 2014 and 1st April 2014 to 31st March 2019, amounting to ` 73.46 crore and
` 138.76 crore respectively for use of the Government land for mining, which land the Group occupies on the basis of the
mining leases. Despite the Company paying royalty at the prescribed rate for the Minerals extracted from the leased land
and paying surface rent regularly as per Rules, the Authorities have issued the demand letters calling upon the company
to pay compensation for use of Government land. Group has challenged the demands by way of Revision under the
Mineral Concession Rules and in writ petitions before the Hon’ble High Court of Tamil Nadu at Chennai, and in a petition
has obtained an order restraining the state from taking coercive steps.
Pending the same the High Court of Tamil Nadu in the group writ petitions of other cement manufacturers viz Dalmia
Cements, Madras Cements & others has passed a judgment dated 20th November 2019 allowing annual compensation
to be collected by the state under rule 72 of MCR in respect of Government Poramboke Land. The Group has filed a writ
appeal against the Judgment dated 20th November 2019 passed in Dalmia Cements, Madras Cements & others.
One of the above Petition challenging the demand for the period 1st April 2014 to 31st March 2019, is disposed of against
the Company by the High Court vide order dated 14th December 2021 in line with judgment dated 20th November 2019.
The Company is in the process to file the Writ Appeal before the Divisional bench of High Court against this judgement.
The Group is of the view and has been advised legally, that the merits are strongly in its favour.

Note 51 - Material demands and disputes relating to assets and liabilities reported by subsidiary as “remote”
a) ACC Limited, a subsidiary of the Company (ACC), having cement manufacturing plants located in Himachal Pradesh was
eligible, under the State Industrial Policy for deferral of its sales tax liability arising on sale of cement manufactured at that
plant. The Excise and Taxation department of the Government of Himachal Pradesh, disputed the eligibility of the ACC
to such deferment on the ground that the Company also manufactures an intermediate product, viz. Clinker, arising in
the manufacture of cement, and such intermediate product was in the negative list. A demand of ` 82.37 crore (previous
year ` 82.37 crore) was raised. ACC filed a writ petition before the Hon'ble High Court of Himachal Pradesh against the
demand. The case has been admitted and the hearing is in process. The Group believes its case is strong and the demand
is unlikely to sustain under law.
b) ACC Limited, a subsidiary of the Company (ACC), had availed sales tax incentives in respect of its new 1 MTPA Plant
(Gagal II) under the Himachal Pradesh (HP) State Industrial Policy, 1991. ACC had accrued sales tax incentives aggregating
` 56 crore. The Sales tax authorities introduced certain restrictive conditions after commissioning of the unit stipulating
that incentive is available only for incremental amount over the base revenue and production of Gagal I prior to the
commissioning of Gagal II. The Company contends that such restrictions are not applicable to the unit as Gagal II is a
new unit, as decided by the HP Hon'ble High Court and confirmed by the Hon'ble Supreme Court while determining the
eligibility for transport subsidy. The Department recovered ` 64.00 crore (tax of ` 56.00 crore and interest of ` 8.00 crore)
which is considered as recoverable.
The HP Hon'ble High Court, had in 2012, dismissed the ACC's appeal. ACC believes the Hon'ble High Court's judgment
was based on an erroneous understanding of certain facts and legal positions and that it also failed to consider certain
key facts. ACC has been advised by legal experts that there is no change in the merits of the Company's case. Based on
such advice, ACC filed a Special Leave Petition (SLP) before the Hon'ble Supreme Court, which is pending for hearing.
c) ACC Limited, a subsidiary of the Company (ACC), was eligible for certain incentives in respect of its investment towards
modernization and expansion of the Chaibasa Cement Unit pursuant to confirmation received under the State Industrial
Policy of Jharkhand. Accordingly, ACC has made claims for refund of VAT paid for each financial year. However, no
disbursals were made (except an amount of ` 7 crore representing part of the One Time Lumpsum capital subsidy claim
of ` 15 crore) as the authorities have raised new conditions and restrictions, that were extraneous to the approvals and
confirmations expressly received by the ACC. ACC had filed two writ appeals before the Jharkhand Hon'ble High Court
against these conditions, restrictions and disputes to the extent of the eligible claims which are now being sought to be
effected / raised by the Government.
The Division Bench of the Jharkhand Hon'ble High Court, while dealing with appeals by both ACC and the State Government,
against a single bench order only partially allowing the ACC's claim, in its order dated 24th February 2015, allowed the
ACC's appeal in totality while dismissing the Government's appeal, thereby confirming that the entire amount claimed by
the ACC is correct and hence payable immediately.
The Government of Jharkhand had filed an Special Leave petition (SLP) in the Hon'ble Supreme Court against the order of
the division bench, which was admitted. In its interim order, the Supreme Court had, while not staying the Division Bench
Order, had only stayed disbursement of 40% of the amount due. Consequently, as of date, ACC received only ` 64 crore out
of total ` 235 crore in part disbursement from the Government of Jharkhand. ACC is pursuing the matter of disbursement
of further amounts outstanding. The Group is of the view and has been advised legally, that the merits are strongly in its
favour and it expects that the SLP shall be rejected upholding the order of the Division bench of the Jharkhand Hon'ble
High Court by the Apex Court.
d) ACC Limited, a subsidiary of the Company (ACC), had set up a captive power plant (‘Wadi TG 2’) in the year 1995-96. This
plant was sold to Tata Power Co. Ltd., in the year 1998-99 and was subsequently repurchased from it in the year 2004-
05. ACC had purchased another captive power plant (’Wadi TG 3’, set up by Tata Power Co. Ltd. in the year 2002-03) in
2004-05. Both these power plants were eligible for tax holiday under the provisions of Section 80-IA of the Income-tax
Act, 1961. The Income tax department has disputed the ACC’s claim of deduction under Section 80-IA of the Act, on the
ground that the conditions prescribed under the section are not fulfilled. In case of Wadi TG 2, in respect of the demand
of ` 56.66 crore (net of provision) (31st December 2020 - ` 56.66 crore), ACC is in appeal before the ITAT and in case of
Wadi TG 3 in respect of the demand of ` 115.62 crore (31st December 2020 - ` 115.62 crore), which was set aside by the
ITAT, the Department is in appeal against the decision in favour of the ACC. ACC believes that the merits of the claims are
strong and will be allowed.

Note 51 - Material demands and disputes relating to assets and liabilities reported by subsidiary as “remote” (Contd.....)
e) ACC Limited, a subsidiary of the Company (ACC), is eligible for incentives for one of its cement plants situated in Maharashtra,
under a Package Scheme of Incentives of the Government of Maharashtra. The scheme inter-alia, includes refund of royalty
paid by ACC on extraction or procurement of various raw materials (minerals). The Department of Industries has disputed
ACC’s claim for refund of royalty on an erroneous technical interpretation of the sanction letter issued to ACC, that only the
higher of the amount of (i) VAT refund and (ii) royalty refund claim amounts, each year, shall be considered. ACC maintains
that such annual restriction is not applicable as long as the cumulative limit of claim does not exceed the amount of eligible
investment. ACC has accrued an amount of ` 133 crore (31st December 2020 - ` 133 crore) on this account. ACC has
filed an appeal before the Bombay High Court challenging the stand of the Government, which is admitted and pending
before the High Court for hearing on merit. ACC is of the view and has been advised legally, that the merits are strongly
in its favour.
f) ACC Limited, a subsidiary of the Company (ACC), was contesting the renewal of mining lease in state of Jharkhand for two
of its quarries on lease. There was an unfavourable order by the Hon'ble Supreme Court in judgement on Goa Foundation
case, restricting the "deemed renewal" provision of captive mining leases to the first renewal period. ACC received demand
from District Mining Officer for ` 881 crore as penalty for alleged illegal mining activities carried out by the Company during
January 1991 to September 2014.
On 2nd January 2015, the Central Government promulgated the Mines and Minerals (Development and Regulation)
Amendment Ordinance, 2015 [subsequently enacted as Mines and Minerals (Development and Regulation) (Amendment)
Act, 2015 in March 2015] amending mining laws with retrospective effect, and decided that all leases granted prior to
ordinance will deemed to have been automatically renewed until prescribed period therein. ACC then filed a writ petition
with High Court of Jharkhand, challenging the aforesaid memos from the State Government for directing the State
government to renew both the leases upto march 2030 as per the Ordinance. On 31 October 2015 the High Court passed
an interim order in terms of Section 8A(5) of the Ordinance for quarry II extending the lease upto March 2030 permitting the
ACC to commence mining operations after depositing ` 48 crore, being assessed value of materials dispatched between
April 2014 to September 2014 (being the alleged period of illegality) subject to the outcome of the petition filed by ACC.
ACC believes that the case shall not stand the test of judicial scrutiny basis the automatic renewal coupled with legal
advice.
Note 52 - Capital and other commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for
(net of advances) 1,464.98 1,918.15
Total 1,464.98 1,918.15
Note:
a) For commitments relating to lease arrangements, Refer Note 54.

Note 53 - Employee benefits

(Refer Note 3 (P) for accounting policy on retirement and other employee benefits)
a) Defined contribution plans
Amount recognised and included in Note 44 “contribution to provident and other funds” (including contribution to
provident fund trust referred in note (g) below) of the Consolidated Statement of Profit and Loss ` 43.48 crore (previous
year - ` 44.97 crore).
b) Defined benefit plans - as per actuarial valuation

The Group has defined benefit gratuity, post employment medical benefit plans and trust managed provident fund plan
as given below :
i) Funded plan includes gratuity benefit to every employee who has completed service of five years or more, at 15 days
salary for each completed year of service (on last drawn basic salary) in accordance with Payment of Gratuity Act,
1972. The scheme is funded with insurance company in the form of qualifying insurance policies.
ii) Other non funded plans includes post employment healthcare to certain employees of ACC Limited a subsidiary. The
same has been discontinued in the previous year.
iii) Every employee who has joined ACC Limited, a subsidiary before 1st December 2005 and separates from service of
the Group on Superannuation or on medical grounds is entitled to additional gratuity. The scheme is Non Funded.
This plan is discontinued with effect from 30th April 2020 for all the eligible employees of management category and
benefits accrued is disbursed to the employees.
c) Investment strategy
The gratuity and provident fund has the form of a trust and it is governed by the Board of Trustees. The Board of Trustees
is responsible for the administration of the plan assets including investment of the funds in accordance with the norms
prescribed by the Government of India. The trust has developed policy guidelines for the allocation of assets to different
classes with the objective of controlling risk and maintaining the right balance between risk and long-term returns in order
to limit the cost to the Group of the benefits provided. To achieve this, investments are well diversified, such that the failure
of any single investment would not have a material impact on the overall level of assets.
The Board of Gratuity trust and the Group review the level of funding including the asset-liability matching strategy and
assessment of the investment risk and accordingly the Group decides its contribution.
Investment risk : As the plan assets include significant investments in quoted debt and equity instruments, the Group
i)
is exposed to the risk of impacts arising from fluctuation in interest rates and risks associated with equity market.
Interest rate risk : The defined benefit obligation calculated uses a discount rate based on government bonds. All
ii)
other aspects remaining same, if bond yields fall, the defined benefit obligation will tend to increase.
Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that include
iii)
mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is
not straight forward and depends upon the combination of salary increase, medical cost inflation, discount rate and
vesting criteria
Salary Inflation risk : All other aspects remaining same, higher than expected increases in salary will increase the
iv)
defined benefit obligation.
Longevity risk : The present value of the defined benefit plan liability is calculated by reference to the best estimate
v)
of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the
plan participants will increase the plan's liability.


d) Summary of the components of net benefit / expense recognised in the Consolidated Statement of Profit and Loss and
the funded status and amounts recognised in the Consolidated Balance Sheet for the respective plans:
2021 2020
Particulars Funded Non funded Funded Non funded
I Components of expense recognised in the
Consolidated Statement of Profit and Loss
1 Current service Cost 27.66 9.00 25.51 9.47
2 Interest cost 22.29 6.22 21.93 8.05
3 Interest (income) on plan assets (22.19) - (19.77) -
4 Loss on curtailment - - - 1.48
5 Gain on settlements - (10.34) - (9.31)
6 Past service cost - - - -
Total 27.76 4.88 27.67 9.69
II Amounts recognised in Other Comprehensive
Income
1 Demographic changes (0.40) - (0.29) -
2 Change in financial assumptions (12.29) (3.88) 18.17 4.71
3 Experience changes (3.02) 2.15 3.43 (6.54)
4 Return on plan assets (excluding interest
income) (1.72) - (6.78) -
Total (17.43) (1.73) 14.53 (1.83)
III Net asset / (liability) recognised in the
Consolidated Balance Sheet
1 Present value of defined benefit obligation 367.56 95.12 379.27 104.72
2 Fair value of plan assets 355.26 - 370.12 -
3 Funded status[surplus/(deficit)] (12.30) (95.12) (9.15) (104.72)
4 Net asset/(liability) (12.30) (95.12) (9.15) (104.72)
IV Change in defined benefit obligation during the year
1 Present value of defined benefit obligation at
the beginning of the year 379.27 104.56 341.02 126.36
2 Current service cost 27.66 9.00 25.51 9.47
3 Interest service cost 22.29 6.22 21.93 8.05
4 Employee Contributions - - - -
5 Gain on settlements - (10.34) - (9.31)
6 Actuarial (gains)/losses recognised in
consolidated other comprehensive income:
- Demographic changes (0.40) - (0.29) -
- Change in financial assumptions (12.29) (3.88) 18.17 4.71
- Experience Changes (3.02) 2.15 3.43 (6.54)
7 Benefit payments (45.95) (11.29) (30.50) (29.66)
8 Curtailment - - - 1.48
9 Net transfer in on account of business
combinations / others - - - -
Present value of defined benefit obligation 367.56 96.42 379.27 104.56
V Change in fair value of assets during the year
1 Plan assets at the beginning of the year 370.12 - 302.45 -
2 Interest income 22.19 - 19.77 -
3 Contribution by employer 5.00 - 54.00 -
4 Actual benefit paid (43.77) - (12.88) -
5 Return on plan assets (excluding interest
income) 1.72 - 6.78 -
6 Plan assets at the end of the year 355.26 - 370.12 -


2021 2020
Particulars Funded Non funded Funded Non funded
VI Weighted average duration of defined benefit
obligation 10 years 10 to 10.20 years 10 years 10 to 10.20 years
VII Maturity profile of defined benefit obligation
1 Within the next 12 months 54.15 11.61 45.29 7.56
2 Between 1 and 5 years 157.18 33.83 159.48 38.15
3 Between 5 and 10 years 156.43 36.36 161.82 40.33
VIII Sensitivity analysis for significant assumptions
(Refer Note (i) & (ii) below)
Present value of defined benefits obligation at the
end of the year (for change in 100 basis points)
1 For increase in discount rate by 100 basis
points 345.13 88.05 354.85 95.31
2 For decrease in discount rate by 100 basis
points 392.94 103.28 407.37 112.48
3 For increase in salary rate by 100 basis points 392.63 103.02 406.50 111.44
4 For decrease in salary rate by 100 basis points 344.98 88.17 354.87 95.48
IX The major categories of plan assets as a
percentage of total plan
Qualifying insurance policy with Life Insurance
Corporation of India (LIC) and HDFC Life Insurance
(Refer Note (iv) below) 100% NA 100% NA
X Expected cash flows
1) Expected employer contribution in the next year 54.15 11.58 45.29 7.49
2) Expected benefit payments
Year 1 54.15 11.58 45.29 7.49
Year 2 39.69 8.30 43.38 9.03
Year 3 41.15 8.15 39.03 9.50
Year 4 39.28 8.95 39.13 9.02
Year 5 37.06 8.41 37.95 10.40
6 to 10 years 156.43 35.96 161.81 39.90
Total Expected benefit payments 367.76 81.35 366.59 85.34
As at As at
Particulars
XI Actuarial assumptions
1) Financial Assumptions
Discount rate (Refer Note (ii) below) 6.75% 6.25%
Salary escalation (Refer Note (iii) below) 7.00% 7.00%
2) Demographic Assumptions
Expected average remaining working lives of employees 9.70 10.00
Disability rate 5% mortality rates 5% mortality rates
Retirement age 58 - 60 years 58 - 60 years
Mortality pre-retirement Indian Assured Lives Indian Assured Lives
Mortality (IALM) (2012-14) Mortality (IALM) (2012-14)
Ultimate Ultimate
Mortality post-retirement Not Applicable Not Applicable
Turnover rate Past Service upto 26 years
: 5% and above 26 years
5% : 1%


Notes:
i) Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected
salary increase and mortality. These sensitivities have been calculated to show the movement in defined benefit
obligation in isolation and assuming there are no changes in market conditions at the reporting date. There have been
no changes from the previous periods in the methods and assumptions used in preparing the sensitivity analysis.
ii) The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet
date for the estimated term of the obligations.
iii) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market.
iv) In the absence of detailed information regarding plan assets which is funded with LIC and HDFC Life Insurance, the
composition of each major category of plan assets, the percentage or amount for each category to the fair value of
plan assets has not been disclosed.
e) Amount recognised as expense in respect of compensated absences is ` 15.69 crore (previous year - ` 29.73 crore).
f) The Group expects to make contribution of ` 54.15 crore (previous year - ` 45.29 crore) to the defined benefit plans during
the next year.
g) Provident Fund managed by a trust set up by the Group

Provident Fund for certain eligible employees is managed by the Group through a trust "Ambuja Cements Staff Provident
Fund Trust" and "The Provident Fund of ACC Ltd.", in line with the Provident Fund and Miscellaneous Provisions Act, 1952.
The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the employer and
employee together with the interest accumulated thereon are payable to employees at the time of separation from the
Group or retirement, whichever is earlier. The benefits vests immediately on rendering of the services by the employee.
The minimum interest rate payable by the trust to the beneficiaries every year is being notified by the Government. The
Group has an obligation to make good the shortfall, if any, between the return from the investments of the trust and the
notified interest rate.
The Group has obtained the actuarial valuation of interest rate obligation in respect of Provident Fund and shortfall of
` 82.96 crore (previous year - ` 73.11 crore) (including investment risk fall as mentioned below) on re-measurement of
the defined benefit plan is recognised in Other Comprehensive Income (OCI). The Group has contributed ` 64.97 crore
(previous year- ` 82.16 crore) towards provident fund liability.
The Group had invested provident fund of ` 9.05 crore through a trust "Ambuja Cements Staff Provident Fund Trust"
in bonds of IL&FS Financial Services Limited and Diwan Housing Finance Limited and ` 49 crore through a trust "ACC
Limited (Trust) in perpetual bonds of IL&FS Financial Services Limited. In view of uncertainties regarding recoverability
of this investment, during the year ended 31st December 2019 the Group has provided ` 58.05 crore being the change in
re-measurement of the defined benefit plans, in Other Comprehensive Income towards probable incremental employee
benefit liability that may arise on the Group on account of any likely shortfall of the Trust in meeting its obligations.


Provident Fund managed by a trust - Defined benefit plans as per actuarial valuation
I Components of expense recognised in the Consolidated Statement of Profit and Loss
2 Interest Cost 77.56 16.99
3 Interest Income (75.02) (12.70)
4 Total expenses 36.81 36.32
II Amount recognised in the Consolidated Balance Sheet
1 Present value of Defined Benefit Obligation (1,029.35) (997.16)
3 Funded status {Surplus/(Deficit)} (82.96) (73.11)
4 Net asset/(liability) as at end of the year ((Refer Note (ii) given below) (82.96) (73.11)
III Present Value of Defined Benefit Obligation
1 Present value of Defined Benefit Obligation at beginning of the year 997.16 974.61
4 Benefits paid and transfer out (134.38) (179.29)
5 Employee Contributions 64.97 82.16
7 Actuarial (gains) / losses (20.83) (10.21)
8 Present value of Defined Benefit Obligation at the end of the year 1,029.35 997.16
IV Fair Value of Plan Assets
2 Return on plan assets including interest income 75.02 79.82
3 Contributions by Employer 31.25 28.86
4 Contributions by Employee 64.97 82.16
6 Asset Gain /( Loss) (25.12) (12.90)
7 Actual benefits paid (134.38) (179.29)
V Amounts recognised in Other Comprehensive Income at period end
Actuarial (Gain) / Loss on Liability (20.83) (10.21)
Actuarial (Gain) / Loss on Plan assets 25.13 12.90
Total Actuarial (Gain) / Loss included in Other Comprehensive Income 4.30 2.69
VI Weighted Average duration of Defined Benefit Obligation 10 years 10 years
VII The major categories of plan assets as a percentage of total plan
1 Special deposits scheme 0% 2%
2 Government Securities 57% 58%
3 Debentures and Bonds 13% 11%
4 Cash and Cash equivalent 12% 19%
5 Mutual Fund 18% 10%
100% 100%
VIII The assumptions used in determining the present value of obligation of the
interest rate guarantee under deterministic approach are:
1 Discounting rate 6.75% 6.25%
2 Guaranteed interest rate 8.50% 8.50%
IX Sensitivity analysis for factors mentioned in Actuarial Assumptions
(Refer Note (i) below)
1 Discount rate (1% movement) 1,024.55 992.27
2 Discount rate (1% decrease) 1,035.03 1,002.97
3 Interest rate guarantee (1% movement) 1,094.65 1,060.69
4 Interest rate guarantee (1% decrease) 995.40 964.54


Notes:
i) The sensitivity analysis presented above may not be representative of the actual change in the defined benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the
defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting
period, which is the same as that applied in calculating the defined benefit obligation recognised in the Consolidated
Balance Sheet. There was no change in the methods and assumptions used in preparing the sensitivity analysis from
previous year.
ii) In respect of Provident Fund, only liability is recognised in Consolidated Balance Sheet. Surplus is not recognised in
Consolidated Balance Sheet.
iii) The Group expects to contribute ` 29.50 crore (previous year - ` 30.00 crore) to the trust managed Provident Fund
in next year.
Note 54 - Leases
(Refer Note 3 (T) and (AA) for accounting policy on leases)
A) Transition Disclosure for Indian Accounting Standard (Ind AS) 116 - "Leases"
The Group has adopted Ind AS 116 effective 1st January 2020, using the modified retrospective approach without
restatement of the comparative period. Leases that were accounted for as operating leases in accordance with Ind AS 17
Leases, are recognised at the present value of the remaining lease payments starting 1st January 2020, and discounted
with the incremental borrowing rate as of that date. Furthermore, the Group has chosen the option whereby the right-of-
use asset is equal to the lease liability at the initial application of Ind AS 116.
The following is the summary of practical expedients elected on initial application:
i) Applied a single discount rate to a portfolio of leases with reasonably similar characteristics.
ii) Excluded the initial direct costs from the measurement of the Right-of-use assets (ROU) at the date of initial application.
iii) The Group has relied on its previous assessment on whether leases are onerous. There were no onerous contracts
as at 1st January 2020.
iv) The Group has not re-assessed whether a contract is or contains a lease at the date of initial application. Accordingly,
Ind AS 116 is applied only to contracts that were previously identified as leases under Ind AS 17.
v) For lease arrangement in respect of ships, the Group has not separated non-lease components from lease
components and instead account for each lease component, and any associated non-lease component as a single
lease component.
a) Reconciliation of undiscounted operating lease commitments as of 31st December 2019 to the recognised lease
liability as of 1st January 2020.
Particulars ` in crore
Operating lease commitments as of 31st December 2019 419.26
Non lease component for ships 201.84
Exemption of commitments for short-term leases (18.73)
Exemption of commitments for leases of low value assets (0.32)
Undiscounted future lease payments from operating leases 602.05
Effect of discounting (126.01)
Total lease liability recognised as of 1st January 2020 476.04


b) The above approach has resulted in recognition of below category wise right-to-use assets
As at
Particulars 1st January 2020
` in crore
Leasehold land 89.97
Building and installation 13.54
Plant and Equipment 56.45
Ships and tugs 315.64
Furniture, vehicle and tools 0.44
Total 476.04
c) The effect of implementing Standard in the Consolidated Statement of Profit and Loss is as under
For the year ended
Particulars 31st December 2020
` in crore
Decrease in expenses
Freight and forwarding expense 37.57
Rent expenses (included in other expenses) 35.95
73.52
Increase in expenses
Depreciation and amortisation expense 61.87
Finance costs 26.61
Foreign exchange (gain)/loss (included in other expenses) 6.93
95.41
d) The Group has entered into long-term leasing arrangements for land which has been assessed as finance lease
since the present value of the minimum lease payments is substantially similar to the fair value of the leasehold
land. These arrangements do not involve any material recurring payments.The Group has reclassified these
assets from Property, Plant and Equipment and other non-current assets to Right-of-use assets pursuant to
adoption of Ind AS 116.
As at 1st January 2020

Particulars Gross Accumulated Net
carrying Value Depreciation carrying value
Property, Plant and Equipment 72.04 2.87 69.17
Other non-current assets 33.94 - 33.94
Total 105.98 2.87 103.11
e) The weighted average incremental borrowing rate at the date of initial application of Ind AS 116 used for the
discounting as of 1st January 2020 is based on the Group’s Portfolio of leases. Weighted Average Repayment
Maturity (WARM) is calculated for each lease and discount rate is used based on the term of derived for repayment.
Below is the range of Incremental Borrowing rate used to calculate the present value of the lease.
WARM for lease contracts in

Particulars
` USD
0 to 2 years 8.35% 4.53%
3 to 4 years 8.35% 4.53%
5 to 6 years 8.44% 4.61%
7 to 8 years 8.66% 4.84%
> 8 years 8.66% 4.84%
ACC Limited, the subsidiary has used the weighted average incremental borrowing rate at the date of initial
application of Ind AS 116 used for the discounting as of 1st January 2020 is based on it's Portfolio of leases and
equals 8.50 percent.


B) Disclosure as per Ind AS 116:
a) Group as lessee
The Group’s lease asset classes primarily consist of leases for grinding facility, godowns, flats, land, Plant and
Equipment, office premises and other premises. There are no restrictions imposed by lease arrangements. There are
no subleases.
b) The Group has a ship on lease arrangement with the Contract currency in USD, hence the lease payment is calculated
in USD.
c) The operating cash outflow for the year ended 31st December 2021 has increased by ` 78.67 crores (previous year -
` 67.66 crore) crores. and the financing cashflows have decreased by ` 78.67 crore (previous year - ` 67.66 crore) as
repayment of lease liability and interest portion of lease payment.
Commitments for leases not yet commenced as at 31st December 2021 is Nil (previous year ` 37.80 crore) towards
leasehold lands for a lease term of 30 years.
d) The movement in lease liabilities during the year is as follows :
As at As at
Opening 427.00 476.04
Additions during the year 55.39 8.55
Finance cost accrued during the period 24.59 26.61
Lease Modification (0.11) (7.64)
Payment of lease liabilities (78.67) (67.66)
Unrealised loss 3.71 6.93
Termination of lease contracts (2.28) (15.83)
Closing 429.63 427.00
Current 67.11 46.38
Non-current 362.52 380.62
Total 429.63 427.00
e)
Lease Expenses recognised in the Consolidated Statement of Profit and Loss, not included in the
measurement of lease liabilities:
Expense relating to short-term leases and low-value assets 127.54 107.01
Expense in respect of variable lease payments 42.03 28.40
Total 169.57 135.41
f) The maturity analysis of lease liabilities are disclosed in Note 57 (C) - Liquidity risk

Note 55 - Related party disclosure

I) Name of related parties
A) Names of the related parties where control exists
1 Holcim Limited (Erstwhile LafargeHolcim Limited), Switzerland Ultimate Holding Company
2 Holderfin B.V, Netherlands Intermediate Holding Company
3 Holderind Investments Limited, Mauritius Holding Company
B) Others, with whom transactions have taken place during the current year and /or previous year
i) Related parties
1 Holcim Group Services Limited, Switzerland Fellow Subsidiary
2 Holcim Technology Limited, Switzerland Fellow Subsidiary
3 Holcim Services (South Asia) Limited Fellow Subsidiary
4 Holcim Trading Pte Limited, Singapore (Erstwhile Fellow Subsidiary
LafargeHolcim Trading Pte Ltd)
5 PT Holcim Indonesia Tbk., Indonesia Fellow Subsidiary
6 LafargeHolcim Bangladesh Ltd, Bangladesh Fellow Subsidiary
7 LafargeHolcim Energy Solutions S.A.S., France Fellow Subsidiary
8 Lafarge Holcim Global Hub Services Private Limited Fellow Subsidiary
9 Lafarge SA, France Fellow Subsidiary
10 Lafarge Africa PLC, Nigeria Fellow Subsidiary
11 Lafarge Umiam Mining Private Limited Fellow Subsidiary
12 Lafargeholcim Investment Co Ltd, China Fellow Subsidiary
13 Holcim (Australia) Pty Ltd, Australia Fellow Subsidiary
14 Holcim Philippines, Inc., Philippines Fellow Subsidiary
15 Holcim International Services Singapore Pte Limited, Singapore Fellow Subsidiary
(Erstwhile Lafarge International Services Singapore Pte Limited)
16 Holcim Trading Limited, Switzerland (Erstwhile LH Trading Ltd) Fellow Subsidiary
17 Lafarge Zementwerke GMBH Fellow Subsidiary
18 Asian Fine Cement Private Limited Subsidiary of Asian Concretes and Cements Private Limited
19 Counto Microfine Products Private Limited Joint Venture
20 Aakaash Manufacturing Company Private Limited Associate of Subsidiary
21 Alcon Cement Company Private Limited Associate of Subsidiary
22 Asian Concretes and Cements Private Limited Associate of Subsidiary
23 Ambuja Cements Limited Staff Provident Fund Trust Trust (Post-employment benefit plan)
24 Ambuja Cements Limited Employees Gratuity Fund Trust Trust (Post-employment benefit plan)
25 The Provident Fund of ACC Limited Trust (Post-employment benefit plan)
26 ACC Limited Employees Group Gratuity Scheme Trust (Post-employment benefit plan)
27 Ambuja Cement Foundation Trust (Corporate Social Responsibility Trust)
28 Ambuja Vidya Niketan Trust Trust (Corporate Social Responsibility Trust)
29 Ambuja Hospital Trust Trust (Corporate Social Responsibility Trust)
30 ACC Trust Trust (Corporate Social Responsibility Trust)


ii) Key Management Personnel (KMP)
In accordance with “Ind AS 24 - Related Party Disclosures” and the Companies Act, 2013, following Personnels are
considered as KMP.
1 Mr. N.S. Sekhsaria Principal Founder, Non Executive Chairman, Non Independent Director
2 Mr. Jan Jenisch Vice Chairman, Non Executive, Non Independent Director
3 Mr. Martin Kriegner Non Executive, Non Independent Director
4 Mr. Christof Hassig Non Executive, Non Independent Director
5 Mr. Roland Kohler Non Executive, Non Independent Director (upto 10th December 2020)
6 Mr. Ramanathan Muthu Non Executive, Non Independent Director (with effect from 23rd December 2020)
7 Ms. Then Hwee Tan Non Executive, Non Independent Director
8 Mr. Ranjit Shahani Non Executive, Non Independent Director
9 Mr. Praveen Kumar Molri Non Executive, Non Independent Director
10 Mr. Mahendra Kumar Sharma Non Executive, Non Independent Director
11 Ms. Shikha Sharma Non Executive, Independent Director
12 Mr. Nasser Munjee Non Executive, Independent Director
13 Mr. Rajendra P. Chitale Non Executive, Independent Director
14 Mr. Shailesh Haribhakti Non Executive, Independent Director
15 Dr. Omkar Goswami Non Executive, Independent Director
16 Mr. Bimlendra Jha Managing Director & Chief Executive Officer (Upto 20th February 2020)
17 Mr. Neeraj Akhoury Managing Director & Chief Executive Officer (with effect from 21st February 2020)
18 Ms. Sonal Shrivastava Chief Financial Officer (Upto 31st August 2020)
19 Ms. Rajani Kesari Chief Financial Officer (with effect from 1st September 2020)
20 Mr. Rajiv Gandhi Company Secretary
II) Transactions with related party

A) Transactions with fellow subsidiaries during the year
1 Purchase of goods
366.04 435.58
2 Sale of Fixed Assets
Holcim Services (South Asia) Limited - 0.01
- 0.01
Lafarge SA, France 0.37 0.66
Lafarge Zementwerke GMBH 0.29 -
425.90 366.85


Holcim Technology Limited, Switzerland - 0.63
Lafarge Holcim Global Hub Services Private Limited - 6.17
Lafarge SA, France - 0.79
11.53 19.69
5 Other recoveries
Holcim (Australia) Pty Ltd, Australia - 0.08
Lafarge Africa PLC, Nigeria - 0.01
Holcim Philippines, Inc., Philippines - 0.14
Lafarge Umiam Mining Private Limited - 0.17
4.05 3.61
6 Other payments
Holcim International Services Singapore Pte Limited, Singapore (Erstwhile Lafarge
International Services Singapore Pte Limited) 0.38 1.47
1.96 5.84
7 Expense recognised in respect of doubtful debts
Holcim Trading Pte Limited, Singapore (Erstwhile LafargeHolcim Trading Pte Ltd) - 0.13
PT Holcim Indonesia Tbk., Indonesia - 0.15
- 1.73
As at As at
B) Outstanding balances with fellow subsidiaries
1 Amount receivable at the year end
LafargeHolcim Bangladesh Ltd, Bangladesh 0.02 0.02
Lafarge SA, France - 0.03
Lafarge Holcim Global Hub Services Private Limited - 8.36
5.96 15.88
2 Amount payable at the year end -
Lafarge SA, France 0.44 0.17
Holcim International Services Singapore Pte Limited, Singapore
(Erstwhile Lafarge International Services Singapore Pte Limited) - 1.47
212.25 74.13


C) Transactions with holding company
1 Dividend paid
Holderind Investments Limited, Mauritius 137.10 2,330.12
137.10 2,330.12

D) Transactions with associates
1 Purchase of goods
Alcon Cement Company Private Limited 65.86 47.77
Asian Concretes and Cements Private Limited 8.94 4.87
74.80 52.64
2 Sale of goods
Asian Fine Cement Private Limited 1.19 1.50
21.90 15.68
63.33 62.10
4 Other recoveries
16.23 11.24
5 Other payments
Asian Concretes and Cements Private Limited - 2.24
0.34 2.38
6 Dividend received
0.43 0.29
As at As at
F) Outstanding balances with associate company
8.74 6.39
2 Amount payable at the year end
Asian Fine Cement Private Limited 0.31 0.50
24.30 12.75


G) Transactions with joint ventures
3.62 3.53
2 Dividend Received
Aakaash Manufacturing Company Private Limited 1.13 -
3.88 2.50
3 Purchase of Goods
Aakaash Manufacturing Company Private Limited 149.20 86.59
149.78 86.80
4 Sale of goods
2.40 8.03
5 Other Payments
0.21 1.22
6 Buy back of shares
Counto Microfine Products Private Limited - 2.25
- 2.25
As at As at
H) Outstanding balances with joint ventures
0.98 1.59
2 Amount payable at the year end
36.83 20.68


I) Transactions with Key Management Personnel
1 Remuneration (Refer Note (a) and (b) below)
Mr. Neeraj Akhoury 11.54 6.17
Mr. Bimlendra Jha - 11.42
Ms. Sonal Shrivastava - 1.94
Ms. Rajani Kesari 6.15 1.18
Mr. Rajiv Gandhi 1.41 1.24
19.10 21.95
2 Break-up of remuneration
Short term employment benefit 18.18 21.20
Post employment benefits 0.52 0.44
Other long term benefits 0.12 0.16
Employee share based payments (Refer Note 65) 0.28 0.15
19.10 21.95
3 Commission, sitting fees, advisory fees and other reimbursement
Mr. N.S. Sekhsaria 0.54 0.56
Mr. Martin Kriegner (Refer Note (g) below) - -
Mr. Christof Hassig 0.23 0.26
Mr. Nasser Munjee 0.45 0.47
Mr. Rajendra P. Chitale 0.55 0.57
Mr. Shailesh Haribhakti 0.42 0.47
Dr. Omkar Goswami 0.45 0.44
Mr. Jan Jenisch 0.23 0.23
Mr. Roland Kohler - 0.24
Ms. Then Hwee Tan 0.40 0.42
Mr. Mahendra Kumar Sharma 0.38 0.26
Ms. Shikha Sharma 0.41 0.44
Mr. Ranjit Shahani 0.25 0.26
Mr. Praveen Kumar Molri 0.23 0.25
Mr. Ramanathan Muthu 0.23 0.01
4.77 4.88
Total 23.87 26.83
Notes:
a) Does not include provision towards gratuity and leave encashment which is provided based on actuarial valuation on
an overall Company basis.
b) Remuneration includes performance incentive paid in respective year which is related to the performance of preceding
year except to the extent of performance incentive to MD and CEO being paid every six months as per agreement.
c) Contribution to Ambuja Cements Limited Staff Provident Fund Trust and The Provident fund of ACC Limited :
The Group is required to contribute a specified percentage of the employee compensation for eligible employees towards
provident fund. During the year, the Group contributed ` 5.79 crore (previous year - ` 4.55 crore) to “Ambuja Cements
Limited Staff Provident Fund” and ` 25.46 crore (previous year - ` 24.31 crore) to “The Provident fund of ACC Limited”.
d) Contribution to Ambuja Cements Limited Employees Gratuity Fund Trust and ACC limited Employees Group Gratuity
scheme :
The Group maintains gratuity trust for the purpose of administering the gratuity payment to its employees. During the
year, the Group has contributed ` 5 crore (previous year - ` 29 crore) towards “Ambuja Cements Limited Employees
Gratuity Fund Trust” and Nil (previous year - ` 25 crore) “ACC limited Employees Group Gratuity scheme”.
e) During the year the Company has contributed ` 47.70 crore (previous year - ` 39.00 crore) to Ambuja Cement
Foundation, ` 5.98 crore (previous year - ` 5.92 crore) to Ambuja Vidya Niketan Trust, ` 3.70 crore (previous year -
` 4.60 crore) to Ambuja Hospital Trust towards Corporate social responsibility obligations.
ACC Limited, the subsidiary during the year has contributed ` 16.00 crore (previous year - ` 27.24 crore) to ACC Trust
towards its Corporate social responsibility obligations.
f) The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions.
The Group has not recorded any loss allowances for trade receivables from related parties (previous year - Nil).
g) Mr. Martin Kriegner has waived his right to receive Directors’ commission and sitting fees.
h) Transaction with related parties disclosed are inclusive of applicable taxes.

Note 56 - Financial instruments

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in
a current transaction between willing parties, other than in a forced or liquidation sale.
A) Classification of financial assets and liabilities

Particulars Notes Carrying value Fair value Carrying value Fair value
Financial assets
Cash and cash equivalents 17 10,499.96 10,499.96 7,881.62 7,881.62
Bank balances other than cash and cash
equivalents 18 335.80 335.80 364.07 364.07
Trade Receivables 16 645.83 645.83 561.13 561.13
Loans 12, 19 21.47 21.47 21.30 21.30
Investments in bonds 10 3.70 3.70 3.70 3.70
Other financial assets 13, 20 1,729.37 1,729.37 1,783.48 1,783.48
13,236.13 13,236.13 10,615.30 10,615.30
loss (FVTPL)
Cash and cash equivalents - investment in
liquid mutual funds 17 858.53 858.53 689.94 689.94
Investment in unquoted equity instruments 10 23.90 23.90 9.00 9.00
882.43 882.43 698.94 698.94
Total (a + b) 14,118.56 14,118.56 11,314.24 11,314.24
Trade payables 34 2,912.82 2,912.82 2,213.41 2,213.41
Lease liabilities 28, 35 429.63 429.63 427.00 427.00
Other financial liabilities 29, 36 2,005.73 2,002.29 1,746.49 1,746.49
Interest free loan from State Government 27, 36 46.94 46.94 43.60 43.60
5,395.12 5,391.68 4,430.50 4,430.50
loss (FVTPL)
Foreign currency forward contract 36 3.26 3.26 1.32 1.32
Total (a+b) 5,398.38 5,394.94 4,431.82 4,431.82


B) Income and Expenses on Financial Instruments
Interest income and expenses, gains or losses recognised on financial assets and liabilities in the Consolidated Statement
of Profit and Loss are as follows:

Income on Finanical Instruments
Financial assets measured at amortised cost
Interest income 40 291.46 383.15
Impairment (loss)/gain on trade receivables (including reversals of impairment losses) (9.95) 39.96
Expected credit loss on Incentive under Government Schemes 48 - 128.92
Financial assets measured at fair value through profit or loss
Gain on sale of current financial assets 40 17.80 26.65
Net gain on fair valuation of liquid mutual fund 40 0.37 0.47
299.68 579.15
Expenses on Finanical Instruments
Financial liabilities measured at amortised cost
Net Exchange losses on revaluation or settlement of items denominated in
foreign currency (trade payable) 48 5.33 10.07
Interest expenses on deposits from dealers 45 29.67 32.48
Interest expense on lease liability 45 24.59 26.61
Financial liabilities measured at fair value through profit or loss
Net Loss on foreign currency forward contract 48 4.55 1.61
Total 64.14 70.77
Net Income recognised in the Consolidated Statement of Profit and Loss 235.54 508.38
C) Fair value measurements

The Group uses the following hierarchy for determining and / or disclosing the fair value of financial instruments by valuation
techniques :
a) Level 1
This level includes those financial instruments which are measured by reference to quoted prices (unadjusted) in
b) Level 2
This level includes financial assets and liabilities, measured using inputs other than quoted prices included within Level
1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
c) Level 3
This level includes financial assets and liabilities measured using inputs that are not based on observable market data
(unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions
that are neither supported by prices from observable current market transactions in the same instrument nor are they
based on available market data.


D) For assets and liabilities which are measured at fair value, the classification of fair value calculations by category
is summarised below
As at As at
Particulars Notes 31st December 2021 31st December 2020 Level Valuation techniques and key inputs
Financial assets
a) Measured at fair value
through profit and loss
(FVTPL)
Cash and cash equivalents - Investment in liquid and short term
investments in liquid mutual mutual funds, which are classified as
funds FVTPL are measured using net assets
value at the reporting date multiplied
17 858.53 689.94 1 by the quantity held.
Investment in unquoted Using discounted cash flow method.
equity instruments (other
than joint ventures and
associates) 10 23.90 9.00 3
a) Measured at fair value
through profit and loss
(FVTPL)
Foreign currency forward The fair value of forward foreign
contract exchange contract is calculated
as the present value determined
using forward exchange rates at the
36 3.26 1.32 2 reporting date.
Note:
i) There was no transfer between level 1 and level 2 fair value measurement.
Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures
are required)
In the opinion of Group the carrying amount of loans, other financial assets, trade receivables, cash and cash equivalents
excluding investments in liquid mutual funds, bank balances other than cash and cash equivalents, other financial
liabilities (excluding derivative financial instruments) and trade payable recognised in the consolidated financial statement
approximate their fair values largely due to the short-term maturities of these instruments.
Note 57 - Financial risk management objectives and policies

The Group has a system-based approach to risk management, established policies and procedures and internal financial
controls aimed at ensuring early identification, evaluation and management of key financial risks such as market risk, credit risk
and liquidity risk that may arise as a consequence of its business operations as well as its investing and financing activities.
Accordingly, the Group’s risk management framework has the objective of ensuring that such risks are managed within
acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulations.
All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills,
experience and supervision. It is the Group’s policy that no trading in derivatives for speculative purposes shall be undertaken.
The Group’s management is supported by a risk management committee that advises on financial risks and the appropriate
financial risk governance framework for the Group. The risk management committee provides assurance to the Group’s
management that the Group’s financial risk activities are governed by appropriate policies and procedures and that financial
risks are identified, measured and managed in accordance with the Group’s policies and risk objectives. The Board of Directors
reviews policies for managing each of these risks, which are summarised below.


A) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risks a) commodity price risk b) currency risk and c) interest rate risk.
Financial instruments are affected by market risk comprise deposits, investments, trade payables.
The Group is not an investor in equity market. The Group is virtually debt-free and its deferred payment liabilities do not
carry interest, the exposure to interest rate risk from the perspective of financial liabilities is negligible. Further, treasury
activities focused on managing investments in debt instruments are administered under a set of approved policies and
procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within
acceptable risk parameters after due evaluation.
The Group's investments are predominantly held in fixed deposits, liquid mutual funds (debt market) and certificates of deposit.
Mark to market movements in respect of the Group's investments are valued through the Consolidated Statement of Profit and
Loss. Fixed deposits are held with highly rated banks, have a short tenure and are not subject to interest rate volatility.
Assumption made in calculating the sensitivity analysis

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. The
analysis excludes the impact of movements in market variables on the carrying values of gratuity and other post-retirement
obligations and provisions.
a) Commodity price risk

Commodity price risk for the Group is mainly related to fluctuations in coal and pet coke prices linked to various external
factors, which can affect the production cost of the Group. Since the energy costs is one of the primary costs drivers, any
fluctuation in fuel prices can lead to a drop in operating margin. To manage this risk, the Group take following steps:
i) Optimizing the fuel mix, pursue longer term and fixed contracts where considered necessary.
ii) Consistent efforts to reduce the cost of power and fuel by using both domestic and international coal and petcoke.
iii) Use of alternative Fuel and Raw Materials (AFR) and enhancing the utilisation of renewable power including its
onsite and offsite solar, wind, hydro power and Waste Heat Recovery System (WHRS).
Additionally, processes and policies related to such risks are reviewed and controlled by senior management and fuel
requirements are monitored by the central procurement team.
b) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The Group's exposure to the risk of changes in foreign exchange rates relates primarily to
the Group operating activities. The aim of the Group's approach to manage currency risk is to leave the Group with
no material residual risk. The Group's is not exposed to significant foreign currency risk. Based on sensitivity analysis,
the Group has well defined forex exposure threshold limit approved by Board of Directors, beyond which all forex
exposure are fully hedged.


The carrying amount of foreign currency denominated financial assets and liabilities, are as follows
Particulars Foreign currency Foreign currency
in crore in crore
Trade payable and other financial liabilities (Unhedged)
CHF 0.26 - 0.19 -
EURO 11.17 0.06 7.88 0.09
GBP - - 0.06 -
JPY 1.20 1.78 0.20 0.28
SEK 0.44 0.05 0.34 0.04
SGD 0.01 - 0.01 -
USD 148.29 1.82 153.12 2.11
Total 161.37 161.80
Foreign exchange derivatives
USD (Hedged) - Forward contracts against imports and
services (Refer Note (i) below) 216.46 2.85 167.71 2.26
Note:
i) This does not include the firm commitment
Foreign currency sensitivity on unhedged exposure - (1% increase / decrease in foreign exchange rates will
have the following impact on profit before tax).
Particulars 1% 1% 1% 1%
strengthening of ` weakening of ` strengthening of ` weakening of `
Trade payable and other financial liabilities (Unhedged)
CHF - - - -
EURO 0.11 (0.11) 0.08 (0.08)
GBP - - - -
JPY 0.01 (0.01) - -
SEK - - - -
SGD - - - -
USD 1.49 (1.49) 1.53 (1.53)
Increase / (Decrease) in profit 1.61 (1.61) 1.61 (1.61)
In the Group's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the
exposure at the end of the reporting period does not reflect the exposure during the year / in future years.
c) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Group's exposure to the risk of changes in market interest rates relates primarily
to the security deposit taken from its dealers.
Interest risk exposure

As at As at
Interest bearing
Security deposit from dealers 36 1,293.24 1,197.02
Non-interest bearing
Current maturities of non-current borrowings 36 3.44 -
Borrowings - Interest free sales tax loan 27 43.50 43.60
Total 1,340.18 1,240.62
Interest rate sensitivities for unhedged exposure (Refer Note (i) below)
Security deposit from dealers
Impact of increase in 100 bps would decrease profit by 12.93 11.97
Impact of decrease in 100 bps would increase profit by (12.93) (11.97)
Note:
i) Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date have
been outstanding for the entire reporting period.


B) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and
from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and
other financial instruments. The Group has no significant concentration of credit risk with any counterparty.
Financial assets for which loss allowance is measured using lifetime Expected Credit Losses (ECL)
As at As at
Trade receivables 16 81.45 91.40
Receivables which have significant increase in credit risk 12, 20 39.02 39.13
Long-term loans to joint operation 12 1.10 1.04
40.12 40.17
Total 121.57 131.57

The exposure to the Group arising out of this category consists of balances with banks, investments in liquid mutual
funds (debt markets), incentives receivables from government and loans which do not pose any material credit risk. Such
exposure is also controlled, reviewed and approved by the management of the Group on routine basis. There are no
indications that defaults in payment obligations would occur in respect of these financial assets.
Credit risk on cash and cash equivalents, deposits with the banks / financial institutions is generally low as the said deposits
have been made with the banks / financial institutions who have been assigned high credit rating by international and
domestic credit rating agencies.
Investments of surplus funds are made only with approved financial Institutions. Investments primarily include investment
in units of liquid mutual funds (debt market) and fixed deposits with banks having low credit risk.
Total non-current investments (other than subsidiaries and joint arrangements) and investments in liquid mutual funds as
on 31st December 2021 are ` 27.60 crore and ` 858.53 crore (31st December 2020 - ` 12.70 crore and ` 689.94 crore).
Balances with banks were not past due or impaired as at year end. Other than the details disclosed below, other financial
assets are not past due and not impaired, there were no indications of default in repayment as at year end.
ACC Limited, a subsidiary of the Company (ACC), has manufacturing units in various states; mainly those in Maharashtra
and Jharkhand are eligible for incentives under the respective State Industrial Policy. ACC accrued these incentives as
refund claims in respect of VAT / GST paid, on the basis that all attaching conditions were fulfilled by the ACC and there
was reasonable assurance that the incentive claims will be disbursed by the State Governments.
During the previous year, in view of the ACC's re-assessing the expected recovery period for incentives receivables, a
charge of ` 128.92 crore due to time value of money computed based on the expected credit loss method is included in
Other Expenses.
ACC is confident about the ultimate realisation of the dues from the State Governments and there is no risk of default.


Trade receivable
Trade receivables consist of a large number of customers. The Group has credit evaluation policy for each customer and
based on the evaluation credit limit of each customer is defined. The exposure in credit risk arising out of major customers
is generally backed either by bank guarantee, letter of credit or security deposits.
The Group's exposure and wherever appropriate, the credit ratings of its counterparties are continuously monitored
and spread amongst various counterparties. Credit exposure is controlled by counterparty limits that are reviewed and
approved by the management of the Group.
The Group does not have higher concentration of credit risks since no single customer accounted for 10% or more of the
Company's net sales.
The ageing analysis of trade receivables (Refer Note 16):

As at As at
Up to 6 months 634.41 538.49
More than 6 months 92.87 114.04
Total 727.28 652.53
Impaired (81.45) (91.40)
Total 645.83 561.13
The Group has used a practical expedient by computing the expected loss allowance for financial assets based on historical
credit loss experience and adjustments for forward looking information. As per simplified approach, the Group makes
provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default payments
and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.
Movement in expected credit loss allowance of trade receivable

As at As at
Less : amounts utilised 1.13 11.18
Movement in expected credit loss allowance of financial assets

As at As at
Less : Reversal of provision 0.20 1.38
C) Liquidity risk
Liquidity risk is defined as the risk that the Group will not be able to settle or meet its obligations on time or at reasonable
price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of credit facilities to meet obligations when due. The Group’s treasury team is
responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such
risks are overseen by senior management. Management monitors the Group’s liquidity position through rolling forecasts
on the basis of expected cash flows. The Group has invested in short term liquid funds which can be redeemed on a very
short notice and hence carried negligible liquidity risk.
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date
based on undiscounted contractual payments.


Contractual maturities
Particulars Carrying amount Less than 1 year 1 - 5 Years More than 5 year Total
` in crore ` in crore ` in crore ` in crore ` in crore
Borrowings 46.94 3.59 46.16 8.47 58.22
Lease liability 429.63 76.98 269.91 203.22 550.11
Trade payables 2,912.82 2,912.82 - - 2,912.82
(Refer Note (a) below) 2,008.99 2,008.86 0.13 - 2,008.99
Total 5,398.38 5,002.25 316.20 211.69 5,530.14
Borrowings 43.60 - 49.75 8.47 58.22
Lease liability 427.00 75.59 260.92 213.47 549.98
Trade payables 2,213.41 2,213.41 - - 2,213.41
(Refer Note (a) below) 1,747.81 1,747.68 0.13 - 1,747.81
Total 4,431.82 4,036.68 310.80 221.94 4,569.42
Note:
a) Other financial liabilities includes deposits received from customers amounting to ` 1,128.43 crore (previous year -
` 1,197.02 crore). These deposits do not have a contractual re-payment term but are repayable on demand. Since,
the Group does not have an unconditional right to defer the payment beyond 12 months from reporting date, these
deposits have been classified under current financial liabilities. For including these amounts in the above mentioned
maturity analysis, the Group has assumed that these deposits, including interest thereon, will be repayable at the
end of the next reporting period. The actual maturity period for the deposit amount and the interest thereon can differ
based on the date on which these deposits are settled to the customers.
Note 58 - Segment reporting

(Refer Note 3 (U) for accounting policy on segment reporting)
A) The principal business of the Group is of manufacturing and sale of Cement and Cement Related Products. All other
activities of the Group revolve around its principal business. The Executive Committee of the Group, has been identified as
the Chief Operating Decision Maker (CODM). The CODM evaluates the Group's performance, allocates resources based
on analysis of the various performance indicators of the Group as a single unit. CODM have concluded that there is only
one operating reportable segment as defined by IND AS 108 "Operating Segments", i.e. Cement and Cement Related
Products.
B) Geographical Information
The Group operates in geographical areas of India (country of domicile) and others (outside India).
Non-current assets
Revenues from customers
(Refer Note (a) below)
Particulars For the year ended For the year ended As at As at
31st December 2021 31st December 2020 31st December 2021 31st December 2020
a) Within India 28,545.98 24,089.10 26,717.16 25,349.29
b) Outside India (Refer Note (b) below) 2.10 4.76 - -
Total 28,548.08 24,093.86 26,717.16 25,349.29
Notes:
a) As per IND AS 108 "Operating Segments", Non-current assets include assets other than financial instruments, deferred
tax assets, post-employment benefit assets, and rights arising under insurance contracts (i) located in the entity’s
country of domicile and (ii) located in all foreign countries in total in which the entity holds assets.
b) Sales outside India are in functional currency.
C) Information about major customers

During the year ended 31st December 2021 and 31st December 2020, there is no single customer who contributes 10%
or more to the Group's revenue.

Note 59 - Financial information in respect of joint ventures and associates that are not individually material
a) Interest in joint ventures
The Group has interest in the following joint ventures which it considers to be individually immaterial. The Group’s interest in
the following joint ventures are accounted for using the equity method in the consolidated financial statements. Summarised
financial information of the joint ventures, based on their financial statements, and reconciliation with the carrying amount
of the investment in consolidated financial statements are set out below:
The Group's share in each joint ventures is as follows

As at As at
% %
Direct joint venture
Counto Microfine Products Private Limited 50.00% 50.00%
Joint venture of a subsidiary
Aakaash Manufacturing Company Private Limited 40.00% 40.00%
Aggregate information of joint ventures that are not individually material

As at As at
The Group's share of profit / (loss) from continuing operations 10.57 5.53
The Group's share of other comprehensive income 0.08 (0.03)
The Group's share of total comprehensive income 10.65 5.50
The carrying amount of the investment 49.79 43.02
b) Interest in associates
The Group’s interest in these associates is accounted for using the equity method in the consolidated financial statements.
Summarised financial information of the associates, based on their financial statements, and reconciliation with the carrying
amount of the investments in consolidated financial statements are set out below:
The Group's share in each associate is as follows :

As at As at
Name of the associates 31st December 2021 31st December 2020
% %
Associates of subsidiary
Alcon Cement Company Private Limited 40.00% 40.00%
Asian Concretes and Cements Private Limited 45.00% 45.00%
Aggregate information of associates that are not individually material

As at As at
The Group's share of profit / (loss) from continuing operations 9.66 8.91
The Group's share of other comprehensive income (0.08) (0.02)
The Group's share of total comprehensive income 9.58 8.89
The carrying amount of the investment 120.72 111.58

Note 59 - Financial information in respect of joint ventures and associates that are not individually material (Contd.....)
c) Interest in joint operations
The Group has interest in a joint operation "Wardha Vaalley Coal Field Private Limited". The Group’s interest are accounted
on a line-by-line basis by adding together the book value of like items of assets, liabilities, income, expenses and cash
flow in the Standalone Financial Statements of the Company. Summarised financial information of the joint operation is
given below:
As at As at
% and ` crore % and ` crore
Shareholding in % 27.27% 27.27%
Aggregate information of joint operation
The Company's share of profit / (loss) (0.11) (0.11)
The Company's share of total comprehensive income (0.11) (0.11)
Note 60 - Financial information in respect of material partly-owned subsidiary

The Group has concluded that ACC Limited is the only subsidiary with material non-controlling interest. Financial information
of ACC Limited is given below:
a) Proportion of equity interest held by non-controlling interest

Principal place As at As at
Name of the Company
of business 31st December 2021 31st December 2020
ACC Limited India 49.95% 49.95%
b) Summarised Consolidated financial information of ACC Limited

As at As at
i) Non-controlling interest in ACC Limited
Total comprehensive income allocated to non-controlling interest 933.38 734.52
Accumulated balances of non-controlling interest 7,141.05 6,336.90
ii) Summarised Balance Sheet of ACC Limited
Non-current assets 10,669.46 9,751.60
Current assets 10,369.38 8,448.63
21,038.84 18,200.23
Non-current liabilities 720.62 693.60
Current liabilities 6,006.04 4,804.26
Non-controlling interest of ACC Limited 3.35 3.24
6,730.01 5,501.10
Equity attributable to owners of the parent 14,308.83 12,699.13
iii) Dividends paid to non-controlling interest of the Company in ACC Limited 131.32 131.32

Note 60 - Financial information in respect of material partly-owned subsidiary (Contd.....)

iv) Summarised Statement of Profit and Loss of ACC Limited
Income 16,358.38 14,002.72
Expenses
Cost of materials consumed 2,119.57 1,673.21
Purchase of stock-in-trade 921.19 696.89
Changes in inventories of finished goods, work-in progress and stock-in-trade (174.25) 142.41
Employee benefits expense 836.16 841.21
Finance costs 54.62 57.08
Depreciation and amortisation expense 600.68 638.84
Power and fuel 3,364.77 2,574.65
Freight and forwarding expense 3,822.99 3,416.09
Other expenses 2,263.16 2,086.41
Total expenses 13,808.89 12,126.79
Profit before share of profit of associates and joint ventures, exceptional items
and tax expenses 2,549.49 1,875.93
Share of profit of associates and joint venture 11.65 8.93
Profit before exceptional items and tax expenses 2,561.14 1,884.86
Exceptional items 54.76 176.01
Tax expense 643.28 278.59
Profit for the year 1,863.10 1,430.26
Other Comprehensive Income 5.43 (14.58)
Total comprehensive income 1,868.53 1,415.68
Profit attributable to owners of the company 1,862.99 1,430.18
Profit attributable to non-controlling interest 0.11 0.08
Total comprehensive income attributable to owners of the company 1,868.42 1,415.60
Total comprehensive income attributable to non-controlling interest 0.11 0.08
v) Summarised Cash Flow Statement of ACC Limited
Cash flow from Operating activities 2,835.49 2,219.19
Cash used in Investing activities (988.01) (535.15)
Cash used in Financing activities (330.52) (327.36)
Net increase in cash and cash equivalents 1,516.96 1,356.68

Note 61 - Additional information as required by Paragraph 2 of the General Instructions for the preparation of consolidated
financial statements under Division II of Schedule III to the Companies Act, 2013.
Share in net assets,
Share in Share in other Share in total
(total assets minus total
profit and loss comprehensive income comprehensive income
liabilities)
Name of the entity Year As % of As % of

As % of As % of consolidated consolidated
` in crore consolidated ` in crore consolidated ` in crore other ` in crore total
net assets profit or loss comprehensive comprehensive
income income
Parent
Ambuja Cements Limited 2021 22,207.26 68.33% 2,080.54 56.06% 5.59 50.32% 2,086.13 56.05%
2020 20,315.86 69.82% 1,790.10 57.62% (6.97) 32.24% 1,783.13 57.80%
Subsidiaries - Indian
ACC Limited 2021 14,228.43 43.78% 1,820.27 49.05% 5.44 48.96% 1,825.71 49.05%
2020 12,661.44 43.51% 1,414.94 45.54% (14.54) 67.25% 1,400.40 45.39%
M.G.T. Cements Private Limited 2021 (0.02) 0.00% (0.01) 0.00% - - (0.01) 0.00%
2020 (0.01) 0.00% - - - - - -
Chemical Limes Mundwa Private 2021 0.24 0.00% (0.24) -0.01% - - (0.24) -0.01%
Limited 2020 0.01 0.00% (0.20) -0.01% - - (0.20) -0.01%
Dirk India Private Limited 2021 (30.93) -0.10% 2.66 0.07% 0.08 0.72% 2.74 0.07%
2020 (33.68) -0.12% (1.03) -0.03% (0.06) 0.28% (1.09) -0.04%
OneIndia BSC Private Limited (Refer 2021 13.34 0.04% 0.25 0.01% - - 0.25 0.01%
Note 11 (b)) 2020 13.08 0.04% (1.29) -0.04% - - (1.29) -0.04%
Subsidiaries - Foreign
Dang Cement Industries Private 2021 - - (0.83) -0.02% - - (0.83) -0.02%
Limited 2020 - - (0.92) -0.03% - - (0.92) -0.03%
Subsidiaries of Subsidiary - Indian
Bulk Cement Corporation (India) 2021 61.26 0.19% 1.94 0.05% - - 1.94 0.05%
Limited 2020 59.32 0.20% 1.58 0.05% - - 1.58 0.05%
ACC Mineral Resources Limited 2021 86.76 0.27% 2.20 0.06% - - 2.20 0.06%
2020 84.55 0.29% 2.89 0.09% - - 2.89 0.09%
Lucky Minmat Limited (Refer Note 2021 (3.08) -0.01% (0.60) -0.02% - - (0.60) -0.02%
64 (d)) 2020 (2.49) -0.01% (0.50) -0.02% - - (0.50) -0.02%
National Limestone Company Private 2021 - - - - - - - -
Limited (Refer Note 64 (a)) 2020 - - 1.64 0.05% - - 1.64 0.05%
Singhania Minerals Private Limited 2021 (0.94) 0.00% 0.03 0.00% - - 0.03 0.00%
2020 (0.96) 0.00% (0.61) -0.02% - - (0.61) -0.02%
Non-controlling interest in all
subsidiaries 2021 7,145.03 21.99% 930.66 25.08% 2.71 24.39% 933.37 25.08%
2020 6,340.89 21.79% 741.40 23.86% (7.28) 33.67% 734.12 23.79%
Joint ventures - Indian (accounted
for using equity method)
Counto Microfine Products Private 2021 36.41 0.11% 8.71 0.23% 0.01 0.09% 8.72 0.23%
Limited 2020 30.45 0.10% 4.87 0.16% (0.01) 0.05% 4.86 0.16%
Aakaash Manufacturing Company 2021 13.38 0.04% 1.94 0.05% - - 1.94 0.05%
Private Limited 2020 12.57 0.04% 0.67 0.02% (0.02) 0.09% 0.65 0.02%
Associates of subsidiary - Indian
(accounted for using equity
method)
Alcon Cement Company Private 2021 18.55 0.06% 0.33 0.01% - - 0.33 0.01%
Limited 2020 18.66 0.06% 0.31 0.01% (0.02) 0.09% 0.29 0.01%
Asian Concretes and Cements Private 2021 102.17 0.31% 9.25 0.25% - - 9.25 0.25%
Limited 2020 92.92 0.32% 8.60 0.28% - - 8.60 0.28%
Adjustments on consolidation 2021 (11,379.09) -35.01% (1,146.06) -30.88% (2.72) -24.48% (1,143.34) -30.72%
2020 (10,494.12) -36.06% (855.61) -27.54% 7.28 -33.67% (848.33) -27.50%
Total equity 2021 32,498.77 100.00% 3,711.04 100.00% 11.11 100.00% 3,722.15 100.00%
2020 29,098.49 100.00% 3,106.84 100.00% (21.62) 100.00% 3,085.22 100.00%
Note:
a) The above figures are from the Standalone Financial Statements of the respective companies and before eliminating intra
group transactions and balances.

Note 62 - Goodwill on Consolidation

As at As at
Carrying amount as at beginning of the year 7,876.11 7,881.49
Impairment during the year (Refer Note 64 (d)) 6.42 -
Derecognition in the view of divestment (Refer Note - 64 (a)) - 5.38
Net carrying value as at end of the year 7,869.69 7,876.11
Goodwill has been generated on account of the following acquisition over the years :
ACC Limited (including its subsidiaries) (Refer Note (a) below) 7,846.50 7,852.92
M.G.T. Cements Private Limited 2.72 2.72
Total 7,869.69 7,876.11
Notes:
a) In respect of goodwill of ACC Limited, for the purpose of impairment testing, the recoverable amount is determined based
on fair value less cost of disposal as per the requirement of Ind AS 36. The fair value is computed based on market share
price of equity share of ACC Limited, quoted on the stock exchange.
b) Based on the Group's assessment there is no further impairment of goodwill.
Note 63 - Coal Block

ACC Mineral Resources Limited (AMRL), through its joint operations had secured development and mining rights for four coal
blocks allotted to Madhya Pradesh State Mining Corporation Ltd. These allocations stand cancelled pursuant to the judgment
of Supreme Court dated 25th August 2014 read with its order dated 24th September 2014. The Government of India has
commenced auctioning process for all such blocks in a phased manner. The auctioning for Bicharpur, being one of the four
blocks, was completed, with the block being awarded to the successful bidder vide vesting order dated 23rd March 2015. In
respect of Bicharpur coal block, AMRL had filed a writ petition with the Delhi High Court against the compensation fixed by
Ministry of Coal up to 31st March 2014. The Hon'ble Delhi High Court issued its judgment on 9th March 2017 wherein the court
has said that “whatever has transpired after 31st March 2014 and goes towards affecting the quantum of compensation for mine
infrastructure, must also be taken into account." Accordingly a fresh claim has been filed with Ministry of Coal for reimbursement
of expenses incurred up to the date of vesting order. In respect of other three blocks, auctioning dates are yet to be announced.
Note 64 - Notes related to Material subsidiary, ACC Limited

a) During the previous year, ACC Limited, a subsidiary of the Company, divested 200,000 Equity Shares representing 100%
stake in National Limestone Company Private Limited (NLCPL) under a Share Purchase Agreement dated 18th November
2020. The Group has received the entire consideration amount of ` 20 crore. The Group has accounted for ` 12.91 crore
as profit arising from divestment.
b) ACC Limited, a subsidiary of the Company, has arrangements with an associate company whereby it sells clinker and
purchases cement manufactured out of such clinker. While the transactions are considered as individual sale / purchase
transactions for determination of taxable turnover and tax under GST laws, considering the accounting treatment prescribed
under various accounting guidance, revenue for sale (excluding GST) of such clinker of ` 16.15 crore (31st December 2020
` 11.08 crore) has not been recognised as a part of the turnover but has been adjusted against cost of purchase of cement
so converted. This transaction has been identified in the nature of lease. (Refer Note 54)
c) ACC Limited, a subsidiary of the Company, has arrangement with a joint venture company whereby it purchases Ready
Mixed Concrete and sells that to external customers. While the transactions are considered as individual sale / purchase
transactions for determination of taxable turnover and tax under GST laws, considering the Joint venture essentially
operates as a risk bearing licensed manufacturer of Ready Mix Concrete in relation to the Group’s local sales, this
arrangement is considered in nature of royalty arrangement and revenue for sale (excluding GST) of such Ready Mix
Concrete to customer of ` 126.19 crore (31st December 2020 ` 73.18 crore) has not been recognised as a part of the
turnover but has been adjusted against cost of purchase of Ready Mix Concrete.

Note 64 - Notes related to Material subsidiary, ACC Limited (Contd.....)

d) The Group had invested ` 38.10 crore (previous year - ` 38.10 crore) in equity shares of Lucky Minmat Limited (LML), a
wholly owned subsidiary company. In view of no mining activity being carried out in view of on-going litigation on transfer
of lease rights and amendments brought in to the Mines and Minerals (Development and Regulations) Amendment Act,
2021, the Group has reassessed the value of investments and accordingly, during the year ended 31st December 2021,
goodwill on consolidation of ` 6.42 crore has been impaired.
Note 65 - Share Based Payment

a) Description of plan - Holcim Performance Share Plan:
Holcim Limited (Erstwhile LafargeHolcim Limited), the Ultimate Holding Company, set up a performance share plan.
Performance shares are granted to executives and senior management for their contribution to the continuing success
of the business. These shares will be delivered after three year vesting period following the grant date and are subject to
internal performance conditions. Internal performance conditions are attached to the performance shares and are based
on Group Earnings per Share (EPS) and Group Return on Invested Capital (ROIC).
b) During the year, 15,000 (previous year - 13,800) performance share at fair value of ` 4,426 per share (previous year -
` 3,352 per share) were granted and ` 8.01 crore (previous year – ` 3.66 crore ) is charged to the Consolidated Statement
of Profit and Loss in respect of equity-based payments transactions with a corresponding credit to the capital contribution
from parent under other equity.)
c) Information related to the Performance Share Plan granted is presented below (in number)

Particulars
Opening Balance 26,400 15,000
Add : Granted during the year 15,000 13,800
Less : Forfeited during the year 5,400 2,400
Closing balance 36,000 26,400
d) Fair value of shares granted is determined based on the estimated achievement of Holcim Limited's (Erstwhile LafargeHolcim
Limited) Earnings per Share, Return on Invested Capital and Sustainability indicators.
Note 66 - Exceptional Items

During the year ended 31st December 2021, there was a charge of ` 120.45 crore on account of restructuring costs to employees
and contract staff.
Note 67 - Risk due to outbreak of COVID-19 pandemic

The Group has considered the possible effects that may result from COVID-19 in the preparation of these financial statements
including the recoverability of carrying amounts of financial and non-financial assets. The Group has, at the date of approval of
the consolidated financial statements, used internal and external sources of information and expects that the carrying amount
of the assets will be recovered. The impact of COVID-19 on the Group's consolidated financial statements may differ from that
estimated as at the date of approval of the same.
Note 68 - In December 2020, the CCI initiated an investigation against cement companies in India including the Company and
its subsidiary, ACC Limited regarding alleged anti-competitive behaviour and conducted search and seizure operations in
December 2020 against few companies. The Group has provided the information sought. The Group are of the firm view that it
has acted and continues to act in compliance with competition laws. The Group is continuing to cooperate with the regulator.
The Group believes that this does not have any impact on the financial statement.

Note 69 - Code on social Security, 2020

The new Code on Social Security, 2020 (Code) has been enacted, which could impact the contributions by the Group towards
Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified and the rules are yet
to be framed. The Group will complete its evaluation and will give appropriate impact in its financial statements in the period
in which the Code becomes effective and the related rules are published.
Note 70 - Figures below ` 50,000 have not been disclosed.
Note 71 - The Group has reclassified security deposits as below to give effect to incremental changes in Division II to Schedule
III to the Companies Act, 2013
Previously
Revised amount Change
Description Notes reported amount
` in crore ` in crore ` in crore
Balance Sheet
Non-current financial assets
Loans 12 212.28 12.45 199.83
Other financial assets 13 1,184.09 1,383.92 (199.83)
Current financial assets
Loans 19 62.06 8.85 53.21
Other financial assets 20 346.35 399.56 (53.21)

DIN - 00276351 DIN - 00015986

Company Secretary Director Managing Director & Chief
DIN - 00077715 Executive Officer
DIN - 07419090

AMBUJA CEMENTS LIMITED
Registered Office: P. O. Ambujanagar, Taluka: Kodinar, District: Gir Somnath, Gujarat - 362 715
Corp. Office: Elegant Business Park, MIDC Cross Road “B”, Off Andheri Kurla Road, Andheri (East), Mumbai 400 059,
CIN: L26942GJ1981PLC004717 Email: [email protected]
Website: www.ambujacement.com
Notice of the 39th Annual General Meeting
NOTICE is hereby given that the THIRTY NINTH ANNUAL by the Audit Committee and approved by the Board of
GENERAL MEETING of the Members of AMBUJA CEMENTS Directors.”
LTD. (‘the Company’) is scheduled and will be held on Friday,
April 29, 2022 at 2.00 p.m. (IST) through Video Conferencing “RESOLVED FURTHER THAT the Board of Directors of
(VC)/Other Audio Visual Means (‘OAVM’) to transact the the Company (including its Committee thereof), be and
following business:- is hereby authorised to do all such acts, deeds, matters
and things as may be considered necessary, desirable or
Ordinary Business expedient to give effect to this Resolution.”
1. To receive, consider and adopt:
Special Business
(a) the Audited Standalone Financial Statements of the
6. Approval for Material Related Party Transaction.
Company for the Financial Year ended December 31,
2021, together with the Reports of the Directors and To consider and if thought fit, to pass, with or
the Auditors thereon; and without modification(s), the following Resolution as
an Ordinary Resolution:-
(b) the Audited Consolidated Financial Statements of
“RESOLVED THAT pursuant to Section 188 of the
the Company for the Financial Year ended December
Companies Act, 2013 (‘Act’) and other applicable
31, 2021 and the Report of the Auditors thereon.
provisions, if any, read with Rule 15 of the Companies
(Meetings of Board and its Powers) Rules, 2014, to
2. To declare a Dividend on equity shares for the financial
the extent applicable, Regulation 23 of the Securities
year ended December 31, 2021.
and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (‘the Listing
3. To appoint a Director in place of Mr. Christof Hassig
Regulations’), including any statutory modification(s) or
(DIN: 01680305), who retires by rotation and being eligible,
re-enactment(s) thereof for the time being in force and
offers himself for re-appointment.
the Company’s Policy on Related Party Transactions
(‘RPT’) and subject to such approval(s)/ consent(s)/
4. To appoint a Director in place of Mr. Ranjit Shahani
permission(s) as may be necessary from time to time
(DIN: 00103845), who retires by rotation and being eligible,
and basis the approval and recommendation of the
offers himself for re-appointment.
Audit Committee and the Board of Directors of the
Company, approval of the members of the Company be
5. Appointment of Statutory Auditors and fix their
and is hereby accorded to the Board of Directors (‘the
remuneration.
Board’, which term shall include any Committee) or Key
o consider and if thought fit, to pass, with or without
T Managerial Personnel of the Company to enter into RPT
modification(s), the following Resolution as an with ACC Limited (‘ACC’), the Subsidiary Company of the
Ordinary Resolution:- Company and a ‘Related Party’ under Section 2(76) of
the Act and Regulation 2(1)(zb) of the Listing Regulations,
“RESOLVED THAT pursuant to the provisions of Sections
for the financial year 2022 up to a maximum aggregate
139, 141, 142 and other applicable provisions, if any, of
value of ` 3,500 crores (Rupees Three Thousand Five
the Companies Act, 2013 and the Companies (Audit
Hundred crores only) in the ordinary course of business
and Auditors) Rules, 2014, including any statutory
of the Company and at arm’s length basis, in the
modification(s) or re-enactment(s) thereof for the
nature of:
time being in force, M/s. SRBC & CO. LLP, Chartered
Accountants (ICAI Firm Registration No. 324982E/
a) Purchase and sale of cement, clinker, other raw
E300003) be and are hereby appointed as the Statutory
materials and spare parts, job work for cement
Auditors of the Company (in place of Deloitte Haskins and
grinding;
Sells LLP, Chartered Accountants, the retiring Auditors)
for a term of five years commencing from the conclusion b) Rendering and receiving of services under common
of the 39th Annual General Meeting of the Company till functions;
the conclusion of the 44th Annual General Meeting at
c) Sale of cement for Ready Mix Concrete (RMX)
such remuneration plus reimbursement of out-of pocket,
business of ACC;
travelling and living expenses etc., as recommended

d)
Reimbursements of employee costs under 7. Ratification of remuneration to the Cost Auditors.
deputation paid and received;
To consider and if thought fit, to pass, with or
e) Purchase or sale of other items such as preprocessed without modification(s), the following Resolution as
waste for Alternative Fuel and Raw Material and an Ordinary Resolution:-
other small value assets;
“RESOLVED THAT pursuant to the provisions of Section
f) Availing/rendering of any kind of service(s), or 148 and other applicable provisions, if any, of the
any other transaction(s) for transfer of resources, Companies Act, 2013 and the Companies (Audit and
services or obligations and other reimbursements Auditors) Rules, 2014, M/s. P.M. Nanabhoy & Co., Cost
(‘Residual RPTs’). Accountants (Firm Registration No. 000012), appointed
as the Cost Auditors of the Company by the Board of
on such terms and conditions as detailed in the Director for the conduct of the audit of the cost records of
explanatory statement to this Resolution and as may be the Company for the financial year 2022 at a remuneration
mutually agreed between the Company and ACC.” of `9,00,000 (Rupees Nine Lakhs) per annum plus
reimbursement of the travelling and other out-of- pocket
“RESOLVED FURTHER THAT the Board or Key Managerial expenses incurred by them in connection with the
Personnel of the Company, be and is hereby authorised aforesaid audit be and is hereby ratified and confirmed.”
to sign, execute, alter and/or negotiate all such deeds,
agreements, contracts, transactions, applications, “RESOLVED FURTHER THAT the Board of Directors of
documents, papers, forms and writings that may be the Company (including its Committee thereof), be and
required, for and on behalf of the Company and to do all is hereby authorised to do all acts and take all such steps
such acts, deeds, matters and things as it may deem fit as may be necessary, proper or expedient to give effect
at its absolute discretion to give effect to this Resolution to this resolution.”
and for resolving all such issues, questions, difficulties or
doubts whatsoever that may arise in this regard.” Rajiv Gandhi
Place: Mumbai Company Secretary
Date: March 23, 2022 (ACS No.: A11263)

EXPLANATORY STATEMENT
(Pursuant to Section 102 of the Companies Act, 2013)
The following Explanatory Statement sets out all the material In respect of item No. 6
facts relating to the Item Nos. 5, 6 & 7 of the accompanying Background
Notice dated March 23, 2022.
a) Both the Company and ACC Ltd. are part of the Holcim
Group, which is the global leader in Cement and other
In respect of item No. 5
building material products. Holderind Investments
This Explanatory Statement is provided though strictly not Limited (‘HIL’) (a subsidiary of Holcim Ltd.) is the promoter
required as per Section 102 of the Act. of the Company and owns 63.11% of the issued and paid-
up share capital of the Company. The Company is the
The Members of the Company at the 34th Annual General promoter and holding company of ACC and owns 50.05%
Meeting (‘AGM’) held on March 31, 2019 approved the of the issued and paid-up share capital of ACC. HIL also
appointment of M/s. Deloitte Haskins & Sells LLP, Chartered holds 4.48% of the issued and paid-up share capital of
Accountants (‘DHS’), as the Auditors of the Company for a ACC and is also a promoter of ACC.
period of five years from the conclusion of the said AGM.
Accordingly, DHS will complete their present term on b) Both the Company and ACC are engaged principally in
conclusion of this AGM in terms of the said approval and the business of manufacturing, selling and dealing in
Section 139 of the Companies Act, 2013 (‘the Act’) read with cement of all kinds and other cement related products.
the Companies (Audit and Auditors) Rules, 2014.
c) The Company and ACC have entered into various RPTs
The Board of Directors based on the recommendation of the from time to time which are pre-approved by the Audit
Audit Committee proposes the appointment of M/s. SRBC & Committee and the Board as per Section 188 of the
CO. LLP, Chartered Accountants, (SRBC), (Membership No. Companies Act, 2013 and Regulation 23 of the Listing
324982E/E300003), as the Statutory Auditors of the Company. Regulations.
If approved by the members, the appointment of SRBC as the
Statutory Auditors will be for a period of five years commencing d) The Shareholders of the Company had approved the
from the conclusion of this 39th Annual General Meeting till Master Supply Agreement (‘MSA’) between the Company
the conclusion of the 44th Annual General Meeting at such and ACC through the Postal Ballot Resolution dated April
remuneration plus reimbursement of out-of pocket, travelling 16, 2018. The Audit Committee and Board of Directors
and living expenses etc. in the Meeting held on February 18, 2021 approved the
continuance of the MSA for a further period of three years
M/s. SRBC was established in the year 2002. M/s. SRBC is a commencing from May 3, 2021 and up to May 2, 2024
part of S. R. Batliboi & Affiliates network of audit firms, which as the overall MSA was within the limits prescribed in
are primarily engaged in providing audit and related assurance Regulation 23 of the Listing Regulations, i.e. within 10%
services to its clients in various industry segments. These audit of the consolidated turnover as per the latest audited
firms have registered offices in Kolkata and other offices in 12 financial statements.
cities of India.
e) Pursuant to the amendments in the Regulation 23 of the
M/s. SRBC have confirmed that their appointment, if made, SEBI Listing Regulations, dated November 9, 2021, Material
would be within the limits specified under Section 141(3)(g) of Related Party Transaction (‘Material RPT’) is defined as a
the Act and that they are not disqualified to be appointed as transaction entered/ to be entered into with a related party,
statutory auditor in terms of the provisions of the proviso to individually or taken together with previous transactions,
Section 139(1), Section 141(2) and Section 141(3) of the Act and during a financial year, exceeding `1,000 crores or 10%
the provisions of the Companies (Audit and Auditors) Rules, of the consolidated turnover of the Company, whichever
2014. is lower, shall require prior approval of the members.
None of the Directors, Key Managerial Personnel and other f) Since the aggregate value of the RPT of the Company
relatives are concerned or interested in the Resolution at Item with ACC (inter alia covering transactions relating to
no. 5 of the Notice. purchase and sale of cement, clinker, raw materials and
spare parts, job work for cement grinding, rendering
The Board recommends the Ordinary Resolution at Item no. 5 and receiving of services under common functions and
of this Notice for the approval of the members. other transactions relating to sale of cement for Ready

Mix Concrete business of ACC, reimbursements of • Optimising utilisation of surplus resources.
employee costs under deputation paid and received and
other reimbursements, purchase or sale of other items i) The members may note that entering into RPTs is a common
such as preprocessed waste for Alternative Fuel and Raw practice amongst companies to optimise synergies. They
Material, other small value assets and Residual RPTs allow sharing of resources including material, production
is expected to exceed the threshold of ` 1,000 crores during capacity, talent, knowledge etc. and serve in the best
the financial year 2022, the Company is approaching the interest of shareholders of such companies, as long as the
members for approval of the Material RPTs with ACC for same are done on an arm’s length basis and in the ordinary
the financial year ending December 31, 2022. course of business to enhance shareholders’ value. The
Company has benefitted from such transactions with ACC
g) The value of RPTs with ACC for the period commencing in the past and hence the Material RPTs are recommended
from January 01, 2022 till the date of this Notice has for approval of the members.
not exceeded the threshold of ` 1,000 crores and the
Company will ensure that the same does not exceed the j) The quantum of the benefits realised by the Company
said threshold upto the date of the 39th AGM, i.e. April from these RPTs are subject to multiple variables
29, 2022. including market circumstances, demand and supply,
seasonal and geographical variations and other external
h) The RPTs with ACC will help the Company achieve conditions that will impact each Company’s ability to
economies of scale and will be in the best interest of the realise synergy benefits. Hence, while the objective is
members. Further, the objectives of the above RPTs are to ensure equitable sharing of benefits between the two
as follows: Companies, the quantum of benefits realised by each
Company may vary based on time, market conditions and
• Achieving synergies and economies of scale; opportunities.
• Bring efficiency in operational and logistics costs;
k) The RPTs carried out with ACC will be reported and
• Strengthen sustainability; reviewed on a quarterly basis by the Board of Directors
of the Company (including the Audit Committee of the
• Conserve natural resources;
Board).
• Stronger opportunities for talent growth and retention;
• Leverage knowledge pool across functions;
The relevant information pertaining to transactions with ACC as required under Rule 15 of Companies (Meetings
of Board and its Powers) Rules, 2014, as amended and SEBI circular vide. SEBI/HO/CFD/CMD1/CIR/P/2021/662
dated November 22, 2021 is given below:
Sr.
Particulars Information
No.
The estimated total value of the Material RPTs is to be `3500 crores for the financial year 2022, the details of which are given below:
a Type, material terms and particulars (I) Transactions with respect to cement, clinker, raw materials, spare parts, toll grinding
of the proposed transactions services etc. (can be in the form of Master Supply Agreement) upto an estimated
amount of `3,000 crores:
Basis of Price
Sr.
Nature of Transaction Arm’s Length Pricing (ALP) Justification
No.
confirmation/Material Terms
1. Purchase and sale of At Net Selling Price Less a discount • Achieving synergies and
cement of 5% economies of scale;
2. Purchase and sale of At Ex-works Market price or if such • Reduce operational and
clinker price is not available, at Variable cost logistics costs;
of clinker plus a mark-up of 35% • Strengthen
sustainability and
3. Purchase and sale At replacement cost or if such cost • Conserve natural
of raw material and not available, at landed cost plus resources
spare parts carrying cost of 8% per annum for
the inventory holding period
4. Toll grinding services Conversion charges at 8% of Gross
Fixed Assets used in toll grinding
plus Variable cost per tonne with a
markup of 10%

Sr.
No.
(II) Others, upto an estimated amount of ` 500 crores:
Basis of Price Justification/ Material Terms/
Sr.
Nature of Transaction Arm’s Length Pricing (ALP) confirmation/ Particulars of the contract or
No.
Material Terms /Monetary value arrangement
1. Transactions relating At an estimated value of ` 150 crores Cost of employee and
to rendering and employee related costs
receiving of services with a markup of 15%.
under common Office space usage shall be
functions (in the form billed at market rate of rent
of Master Service applicable in the relevant
Agreement). place. The margin is based
on benchmarked margins
earned by companies
engaged in similar services.
2. Deputation of At an estimated value of ` 90 crores At actual cost of deputed
employees employees
3. Sale of cement for At an estimated value of ` 70 crores At comparable third party/
RMX business arm’s length prices
4. Reimbursements At an estimated value of ` 50 crores At comparable third party/
received/ payable arm’s length prices
5. Other residual RPTs At an estimated value of ` 140 crores At actuals/ arm’s length
prices
b Name of the related party and its ACC Ltd., Subsidiary Company
relationship with the listed entity or
its subsidiary, including nature of
its concern or interest (financial or
otherwise)
c Tenure of the proposed transactions Upto December 31, 2022
d Value of the proposed transactions Estimated amount upto ` 3,500 crores [bifurcation of the amount mentioned in point (a) above]
e The percentage of the listed entity’s 12.26%
annual consolidated turnover, for the
immediately preceding financial year,
that is represented by the value of
the proposed transactions (and for
a RPT involving a subsidiary, such
percentage calculated on the basis of
the subsidiary’s annual turnover on a
standalone basis shall be additionally
provided)
f If the transactions relates to any loans,
inter-corporate deposits, advances or
investments made or given by the listed
entity or its subsidiary
i)
details of the source of funds in
connection with the proposed
transactions
ii)
where any financial indebtedness
is incurred to make or give loans,
inter-corporate deposits, advances
or investments
- nature of indebtedness Not Applicable
- cost of funds
- tenure
iii)
applicable terms, including
covenants, tenure, interest rate
and repayment schedule, whether
secured or unsecured; if secured, the
nature of security
iv)
the purpose for which the funds
will be utilised by the ultimate
beneficiary of such funds pursuant
to the RPTs

Sr.
No.
g Justification as to why the RPTs are in (a)
Transactions with respect to cement, clinker, raw materials, spare parts, toll
the interest of the listed entity grinding services etc: The transactions are aimed at achieving synergies and
economies of scale; reduce operational costs; strengthen sustainability; and conserve
natural resources.
(b)
Transactions relating to rendering and receiving of services under common
functions: The transactions are aimed at creating a common pool of common functions
such as Technical services, Geocycle, Procurement and Taxation. The cost of employees
of each department in the payrolls of each Company is charged to the other Company
with a mark up of 15%.
(c) For Sale of Cement for RMX Business – Sale of cement for ACC’s RMX business is to
optimise the cement capacity utilisation.
(d) For Reimbursements received/ paid: The transactions will be purely on the basis of
day to day business requirements.
(e) For Deputation in/ out of employees: The transactions aims at better manpower
deployment in various roles, purely on the basis of organisational needs, which will
ultimately lead to better utilisation and productivity.
(f) For Residual RPTs: The transactions will be purely on the basis of day to day business
requirements.
h A copy of the valuation or other external The transactions do not contemplate any valuation.
party report, if any such report has been
relied upon
i A statement that the valuation or other Not Applicable
external report, if any, relied upon by the
listed entity in relation to the proposed
transactions will be made available
through the registered email address of
the shareholders
j Percentage of the counter-party’s 22.13% (as per the financial statements of ACC for the year ended December 31, 2021)
annual consolidated turnover that
is represented by the value of the
proposed RPTs on a voluntary basis
k Name of the Director or KMP who is None of the Directors, Key Managerial Personnel of the Company or their respective relatives
related, if any is concerned or interested financially or otherwise in Item no. 6 of the Notice except to the
extent of their shareholding, if any, in the Company.
The Company and ACC have the following common Directors:
Mr. Narotam Sekhsaria, Mr. Jan Jenisch, Mr. Martin Kriegner, Mr. Neeraj Akhoury
and Mr. Shailesh Haribhakti.
l Any other information that may be (i) The Material RPTs proposed to be entered into on a ‘Non Exclusive Basis’ between the
relevant two companies and therefore the companies are free to enter into similar contract(s)/
arrangement(s)/ transaction(s) with any other companies.
(ii) The Company and ACC are in a Holding-Subsidiary company relationship and constitute
a ‘Single Economic Entity’ under Competition Law.
(iii) The transactions with respect to cement, clinker, raw materials, spare parts, toll grinding
services etc. with ACC will result in incremental benefits to each company in comparison
to operations without the said transactions. This shall be achieved through:
• optimisation of the cost to service market by using each other’s plant capacities
where relevant;
• maximise utilisation of assets to generate additional sales for each Company in a
financial year; and
• utilisation of spare inventory (raw materials and spare parts), as needed.
(iv) Both the Company and ACC will sell cement purchased from each other under its own
brands.
(v)
The goods and services supplied shall meet the quality standards of the buying
company.

he proposed RPTs to be entered with ACC are in the ordinary
T On the recommendation of the Audit Committee, the Board
course of business and on arm’s length basis. of Directors of the Company has approved the appointment
of M/s. P.M. Nanabhoy & Co., Cost Accountants as the
The Audit Committee and the Board of Directors of the Company Cost Auditor of the Company for the financial year 2022 at a
have approved the said material related party transactions with remuneration of ` 9,00,000/-(Rupees Nine Lakhs) per annum
ACC as set out in Item No. 6 of the accompanying Notice for plus reimbursement of all out of pocket expenses incurred,
the approval of the members of the Company. if any, in connection with the cost audit. The remuneration of
the cost auditor is required to be ratified subsequently by the
s per Regulation 23 of the Listing Regulations, all Related
A Members, in accordance with the provisions of the Act and
Parties irrespective of the fact that whether they are a party Rule 14 of the Rules.
of the proposed Material RPT or not shall not vote on the
proposed resolution. Accordingly, Holderind Investments None of the Directors, Key Managerial Personnel and their
Limited, being the Holding Company and other entities of the relatives are concerned or interested in the Resolution at Item
Holcim group will not vote to approve this resolution. no. 7 of the Notice.
he Board recommends the Ordinary Resolution at Item no. 6

T The Board recommends the Ordinary Resolution at Item no. 7
of this Notice for the approval of the members. of this Notice for the approval of the members.
In respect of item No. 7 By order of the Board of Directors

In accordance with the provisions of Section 148 of the Rajiv Gandhi
Companies Act, 2013 (the Act) and the Companies (Audit and Place: Mumbai Company Secretary
Auditors) Rules, 2014 (the Rules), the Company is required Date: March 23, 2022 (ACS No.: A11263)
to appoint a cost auditor to audit the cost records of the
Company.

ANNEXURE TO ITEMS. 3 & 4 OF THE NOTICE
Details of Directors seeking appointment and re-appointment at the forthcoming Annual General Meeting [Pursuant to Regulation
36(3) of the SEBI (Listing Obligation and Disclosure Requirement) Regulations, 2015 and Secretarial Standard 2 on General
Meetings]
Name of the Director Mr. Christof Hassig Mr. Ranjit Shahani

DIN 01680305 00103845
Date of Birth April 25, 1958 August 18, 1949
Nationality Switzerland Indian
Date of Appointment on the Board December 9, 2015 April 1, 2019
Qualifications Masters in Banking and the Advanced Mechanical Engineer from IIT Kanpur and MBA
Management Program at Harvard Business from Jamnalal Bajaj Institute of Management
School. Studies
Expertise in specific functional area M&A, Corporate Finance & Treasury Operations & Management
Number of shares held in the Company Nil Nil
List of the directorships held in other Nil i) Hikal Ltd.
companies* ii) J.B. Chemicals & Pharmaceuticals Ltd.
iii) Wellness Forever Medicare Ltd.
Resignation details in the listed entities i) ACC Ltd. (w.e.f 20.02.2020) Nil
during the last three years.
Number of Board Meetings attended during 6 of 6 6 of 6
the year 2021
Chairman/ Member in the Committees of Nil Chairman:
the Boards of companies in which he is Ambuja Cements Ltd. - Stakeholders
Director* Relationship Committee
Member:
i) Wellness Forever Medicare Ltd. - Audit
Committee
ii) J.B. Chemicals and Pharmaceuticals Ltd. -
Audit Committee
Relationships between Directors inter-se None None
Remuneration details (Including Sitting Refer Corporate Governance Report Refer Corporate Governance Report
Fees & Commission)
* Directorship includes Directorship of Public Companies & Committee membership includes only Audit Committee and Stakeholders’ Relationship
Committee of Public Limited Company (whether Listed or not).
Notes:- Act’), in respect of the Item nos. 5 to 7 set above and

1. In view of the outbreak of the COVID-19 pandemic, the details as required under Regulation 36 of the Listing
social distancing norm to be followed and the continuing Regulations and Secretarial Standard on General Meeting
restriction on movement of persons at several places in the (SS-2) in respect of the Directors seeking appointment/
country and pursuant to General Circular Nos. 20/2020, re-appointment at this Annual General Meeting is annexed
02/2021 and 19/2021 dated 5th May, 2020, January 13, hereto.
2021 and December 8, 2021 respectively, and clarification
circular No. 21/2021 dated December 14, 2021 issued 3. Since this AGM is being held pursuant to the MCA
by the Ministry of Corporate Affairs (‘MCA Circulars’) circulars through VC/OAVM, physical attendance of
and in compliance with the provisions of the Act and the Members has been dispensed with and there is no
SEBI (Listing Obligations and Disclosure Requirements) provision for the appointment of proxies. Accordingly,
Regulations, 2015 (‘Listing Regulations’), the 39th AGM the facility for appointment of proxies by the Members
of the Company is being conducted through VC/OAVM under Section 105 of the Act will not be available for the
Facility, which does not require physical presence of 39th AGM and hence the Proxy Form and Attendance Slip
Members at a common venue. The deemed venue for the are not annexed to this Notice.
39th AGM shall be the Registered Office of the Company.
4. Participation of Members through VC /OAVM will be
2. The Explanatory Statement setting out the material facts reckoned for the purpose of quorum for the AGM as per
pursuant to Section 102 of the Companies Act, 2013 (‘the section 103 of the Act.

5.
Members of the Company under the category of read with the Rules framed thereunder, the original Notice
Institutional Investors are encouraged to attend and vote calling the 39th AGM along with the Annual Report for
at the AGM through VC. Corporate Members intending to Financial Year 2021 has already been sent by electronic
authorise their representatives to participate and vote at mode to those Members whose E-mail addresses are
the meeting are requested to send a certified copy of the registered with the DPs or the Company/LinkIntime,
Board resolution / authorisation letter to the Company or unless the Members have requested for a physical copy
upload on the VC portal / e-voting portal. of the same.
6. Record Date: The Record date for payment of dividend 11. The Register of Directors’ and Key Managerial Personnel
has been fixed as Friday, April 1, 2022. and their shareholding maintained under Section 170 of
the Companies Act, 2013, the Register of Contracts or
7. Dividend: The dividend, as recommended by the Board, Arrangements in which the Directors are interested under
if approved at the AGM, in respect of equity shares Section 189 of the Companies Act, 2013 will be available
held in electronic form will be payable to the beneficial electronically for inspection by the Members during the
owners of shares as on Friday, April 1, 2022 as per the AGM. All documents referred to in the Notice will also
downloads furnished to the Company by Depositories for be available for electronic inspection without any fee by
this purpose, in physical mode, if their names appear in the members from the date of circulation of this Notice
the Company’s register of members as on Friday, April up to the date of 39th AGM, i.e. April 29, 2022. Members
1, 2022. seeking to inspect such documents can send an email to
[email protected]
The final dividend will be paid on and from May 5,
2022. 12.
Members desiring any information relating to the
accounts or any other matter to be placed at the AGM, are
8. In case of joint holders attending the Meeting, only such requested to write to the Company on or before April 25,
joint holder who is higher in the order of names will be 2022 through email on investors.relation@ambujacement.
entitled to vote. com.
9. Procedure for registration of email address: Notice 13. Green Initiative: To support the Green Initiative,
of the 39th AGM and other documents are being sent members who have not registered their e-mail address
through electronic mode to those Members whose email are requested to register their e-mail address for receiving
addresses are registered with the Company/ Depositories. all communication including Annual Report, Notices,
Circulars etc. from the Company electronically.
Therefore, those Members, whose email address is not
registered with the Company or with their respective 14. Nomination: Pursuant to Section 72 of the Companies
Depository Participant/s, and who wish to receive the Act, 2013, Members holding shares in physical form are
Notice and the Annual Report and all other communication advised to file nomination in the prescribed Form SH-13
sent by the Company, from time to time, can get their with the Company’s share transfer agent. In respect of
email address registered by following the steps as given shares held in electronic/ demat form, the Members may
below:- please contact their respective depository participant.
a. For Members holding shares in physical form, please 15. Submission of PAN: Shareholders are requested to note
send scan copy of a signed request letter mentioning that furnishing of Permanent Account Number (PAN) is
your folio number, complete address, email address now mandatory in the following cases:-
to be registered along with scanned self- attested
a) Legal Heirs’/Nominees’ PAN Card for transmission
copy of the PAN and any document (such as Driving
of shares,
License, Passport, Bank Statement, AADHAAR)
supporting the registered address of the Member, b) Surviving joint holders’ PAN Cards for deletion of
by email to the Company’s email address at: name of deceased Shareholder, and
[email protected]
c) Joint Holders’ PAN Cards for transposition of shares.
b. For the Members holding shares in demat form,
16. Bank Account Details: Regulations 12 and Schedule I
please update your email address through your
of SEBI Listing Regulations requires all companies to use
respective Depository Participant/s.
the facilities of electronic clearing services for payment of
dividend. In compliance with these regulations, payment
10. Members may also note that the Notice of this Annual
of dividend will be made only by electronic mode directly
General Meeting and the Annual Report for the year
into the bank account of Members and no dividend
2021 will also be available on the Company’s website
warrants or demand drafts will be issued without bank
www.ambujacement.com for their download. The
particulars.
same shall also be available on the website of the
Stock Exchanges i.e. BSE Limited and National Stock
17. Share Transfer permitted only in Demat: As per
Exchange of India Limited at www.bseindia.com and
Regulation 40 of the Listing Regulations, securities of
www.nseindia.com respectively, and on the website of
listed companies can be transferred only in dematerialised
CDSL https://www.evotingindia.com. Members may also
form with effect from April 1, 2019. In view of the above
note that pursuant to Sections 101 and 136 of the Act

and to avail the benefits of dematerialisation and ease 2013 read with the Investor Education and Protection
portfolio management, Members are requested to Fund Authority (Accounting, Audit, Transfer and Refund)
consider dematerialising of their physical shares. Rules, 2016, shares on which dividend remains unclaimed
for seven consecutive years will be transferred to the IEPF.
18. Shareholders’ Communication: Members are
requested to send all communications relating to shares During the Financial year 2021, unclaimed final dividend
and unclaimed dividends, change of address, bank for the Financial year 2013 aggregating to ` 1,41,84,710/-
details, email address etc. to the Registrar and Share and interim dividend for Financial year 2014 aggregating
Transfer Agents at the following address: to ` 118,87,056/- and the 1,92,635 Equity shares in respect
of which dividend entitlements remained unclaimed for
LINK INTIME INDIA PVT. LTD. (Unit: Ambuja Cements 7 consecutive years or more, have been transferred by
Ltd.) C-101, 247 Park, L B S Marg, Vikhroli (West), the Company to Investor Education and Protection Fund
Mumbai – 400 083. Tel. No. (022) 4918 6000/49186270. established by Central Government (IEPF).
Email: [email protected].
Members may note that the dividend and shares
If the shares are held in electronic form, then change of transferred to the IEPF can be claimed back by the
address and change in the Bank Accounts etc, email concerned shareholders from the IEPF Authority after
id should be furnished to their respective Depository complying with the procedure prescribed under the
Participants (DPs). Investor Education and Protection Fund Authority
(Accounting, Audit, Transfer and Refund) Rules, 2016.
19. Unclaimed/Unpaid Dividend: Pursuant to Section 124 Information on the procedure to be followed for claiming
of the Companies Act, 2013, the unpaid dividends that are the dividend /shares is available on the website of the
due to transfer to the Investor Education and Protection company www.ambujacement.com
Fund (IEPF) are as follows:
21. Voting:-
Tentative Date
Date of All persons whose names are recorded in the Register
Financial Year for transfer to
Declaration
IEPF of Members or in the Register of Beneficial Owners
Financial 2014 (Final) 18.02.2015 06.05.2022 maintained by the Depositories as on the cut-off date
Financial 2015 (Interim) 27.07.2015 30.08.2022 namely April 22, 2022 only shall be entitled to vote at the
Financial 2015 (Final) 10.02.2016 12.04.2023
General Meeting by availing the facility of remote e-voting
or by voting at the General Meeting.
Financial 2016 (Interim) 26.07.2016 29.08.2023
Financial 2016 (Final) 20.02.2017 29.04.2024 I. Voting Through Electronic Means (Prior to AGM)
Financial 2017 (Interim) 24.07.2017 29.08.2024
1. Pursuant to the provisions of Section 108 of the
Financial 2017 (Final) 20.02.2018 15.07.2025 Companies Act, 2013 read with Rule 20 of the
Financial 2018 (Final) 18.02.2019 29.04.2026 Companies (Management and Administration)
Financial 2019 (Interim) 12.05.2020 11.06.2027 Rules, 2014 (as amended) and Regulation 44 of SEBI
Financial 2020 (Interim) 22.10.2020 25.10.2027 (Listing Obligations & Disclosure Requirements)
Financial 2020 (Final) 18.02.2021 13.06.2028
Regulations 2015 (as amended), and MCA Circulars
dated April 08, 2020, April 13, 2020 and May 05,
2020 the Company is providing facility of remote
Members who have not encashed their dividend warrants
e-voting to its Members in respect of the business
pertaining to the aforesaid years may approach the
to be transacted at the AGM. For this purpose,
Company/its Registrar, for obtaining payments thereof
the Company has entered into an agreement with
at least 30 days before they are due for transfer to the
Central Depository Services (India) Limited (CDSL)
said fund.
for facilitating voting through electronic means, as
the authorised e-Voting’s agency. The facility of
Any member, who has not claimed final dividend in
casting votes by a member using remote e-voting
respect of the financial year ended December 31, 2014
as well as the e-voting system on the date of the
onwards is requested to approach the Company/ the
AGM will be provided by CDSL.
Registrar and Share Transfer Agents of the Company for
claiming the same as early as possible but not later than
2. The members who have cast their vote by remote
March 31, 2022 for final dividend of F.Y. 2014 and June
e-voting prior to the AGM may also attend/participate
30, 2022 for interim dividend of F.Y. 2015.
in the AGM through VC/OAVM but shall not be
entitled to cast their vote again.
The Company has already sent reminders to all such
members at their registered addresses for claiming the
3. The Company has appointed Mr. Surendra Kanstiya
unpaid/unclaimed dividend, which will be transferred to
Associates, Practicing Company Secretary, to act
IEPF in the due course.
as the Scrutiniser to scrutinise the voting during
the AGM and remote e-voting process in a fair and
20.
Compulsory transfer of Equity Shares to IEPF
transparent manner and he has communicated his
Account: Pursuant to Section 124 of the Companies Act

willingness to be appointed and will be available for facility to its shareholders, in respect of all
the same purpose. shareholders’ resolutions. However, it has been
observed that the participation by the public non-
4. The Results shall be declared within two working institutional shareholders/retail shareholders is at a
days of the Annual General Meeting of the Company. negligible level.
The results declared along with the Scrutiniser’s
Report shall be placed on the Company’s website Currently, there are multiple e-voting service
www.ambujacement.com and on the website of providers (ESPs) providing e-voting facility to listed
CDSL www.evotingindia.com and the same shall entities in India. This necessitates registration on
also be communicated to BSE and NSE, where the various ESPs and maintenance of multiple user IDs
shares of the Company are listed. and passwords by the shareholders.
5. Any person who becomes a Member of the Company In order to increase the efficiency of the voting
after dispatch of the Notice of the meeting and process, pursuant to a public consultation, it has been
holding shares as on the cut-off date i.e. April 22, decided to enable e-voting to all the demat account
2022 may obtain the login details in the manner as holders, by way of a single login credential,
mentioned below. through their demat accounts/ websites of
Depositories/ Depository Participants. Demat
The instructions for shareholders voting electronically account holders would be able to cast their vote
are as under: without having to register again with the ESPs,
thereby, not only facilitating seamless authentication
The voting period begins on Monday, April 25, 2022 but also enhancing ease and convenience of
at 10:00 a.m. and ends on Thursday, April 28, participating in e-voting process.
2022 at 5:00 p.m. During this period shareholders of
the Company, holding shares either in physical form (ii) In terms of SEBI circular no. SEBI/HO/CFD/CMD/
or in dematerialised form, as on the cut-off date CIR/P/2020/242 dated December 9, 2020 on
of April 22, 2022 may cast their vote electronically. e-Voting facility provided by Listed Companies,
The e-voting module shall be disabled by CDSL for Individual shareholders holding securities in
voting thereafter. demat mode are allowed to vote through their
demat account maintained with Depositories and
(i) Pursuant to SEBI Circular No. SEBI/HO/CFD/ Depository Participants. (Shareholders are advised
CMD/CIR/P/2020/242 dated 09.12.2020, under to update their mobile number and email Id in their
Regulation 44 of SEBI Listing Regulations listed demat accounts in order to access e-Voting facility.)
entities are required to provide remote e-voting
Pursuant to abovesaid SEBI Circular, Login method for e-Voting and joining virtual meetings for Individual
shareholders holding securities in Demat mode CDSL/NSDL is given below:
Type of shareholders Login Method

Individual 1) Users who have opted for CDSL Easi / Easiest facility, can login through their existing user id and
Shareholders holding password. Option will be made available to reach e-Voting page without any further authentication.
securities in Demat The URL for users to login to Easi / Easiest are https://web.cdslindia.com/myeasi/home/login or visit
mode with CDSL www.cdslindia.com and click on Login icon and select New System Myeasi.
2) After successful login the Easi / Easiest user will be able to see the e-Voting option for eligible companies
where the evoting is in progress as per the information provided by company. On clicking the evoting
option, the user will be able to see e-Voting page of the e-Voting service provider for casting your vote
during the remote e-Voting period or joining virtual meeting & voting during the meeting. Additionally,
there is also links provided to access the system of all e-Voting Service Providers i.e. CDSL/NSDL/
KARVY/LINKINTIME, so that the user can visit the e-Voting service providers’ website directly.
3) If the user is not registered for Easi/Easiest, option to register is available at https://web.cdslindia.com/
myeasi/Registration/EasiRegistration
4) Alternatively, the user can directly access e-Voting page by providing Demat Account Number and PAN
No. from a e-Voting link available on www.cdslindia.com home page or click on https://evoting.cdslindia.
com/Evoting/EvotingLogin The system will authenticate the user by sending OTP on registered Mobile
& Email as recorded in the Demat Account. After successful authentication, user will be able to see
the e-Voting option where the evoting is in progress and also able to directly access the system of all
e-Voting Service Providers.

Type of shareholders Login Method
Individual 1) If you are already registered for NSDL IDeAS facility, please visit the e-Services website of NSDL. Open
Shareholders holding web browser by typing the following URL: https://eservices.nsdl.com either on a Personal Computer
securities in demat or on a mobile. Once the home page of e-Services is launched, click on the “Beneficial Owner” icon
mode with NSDL under “Login” which is available under ‘IDeAS’ section. A new screen will open. You will have to enter
your User ID and Password. After successful authentication, you will be able to see e-Voting services.
Click on “Access to e-Voting” under e-Voting services and you will be able to see e-Voting page. Click
on company name or e-Voting service provider name and you will be re-directed to e-Voting service
provider website for casting your vote during the remote e-Voting period or joining virtual meeting &
voting during the meeting.
2) If the user is not registered for IDeAS e-Services, option to register is available at https://eservices.
nsdl.com. Select “Register Online for IDeAS “Portal or click at https://eservices.nsdl.com/SecureWeb/
IdeasDirectReg.jsp
3)
Visit the e-Voting website of NSDL. Open web browser by typing the following URL:
https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile. Once the home page of
e-Voting system is launched, click on the icon “Login” which is available under ‘Shareholder/Member’
section. A new screen will open. You will have to enter your User ID (i.e. your sixteen digit demat
account number hold with NSDL), Password/OTP and a Verification Code as shown on the screen.
After successful authentication, you will be redirected to NSDL Depository site wherein you can see
e-Voting page. Click on company name or e-Voting service provider name and you will be redirected
to e-Voting service provider website for casting your vote during the remote e-Voting period or joining
virtual meeting & voting during the meeting
Individual You can also login using the login credentials of your demat account through your Depository Participant
Shareholders (holding registered with NSDL/CDSL for e-Voting facility. After Successful login, you will be able to see e-Voting
securities in demat option. Once you click on e-Voting option, you will be redirected to NSDL/CDSL Depository site after
mode) login through successful authentication, wherein you can see e-Voting feature. Click on company name or e-Voting service
their Depository provider name and you will be redirected to e-Voting service provider website for casting your vote during
Participants the remote e-Voting period or joining virtual meeting & voting during the meeting.
I mportant note: Members who are unable to

c. Shareholders holding shares in Physical
retrieve User ID/ Password are advised to use Forget Form should enter Folio Number registered
User ID and Forget Password option available at with the Company.
abovementioned website.
4) Next enter the Image Verification as displayed
Helpdesk for Individual Shareholders holding and Click on Login.
securities in demat mode for any technical
issues related to login through Depository i.e. 5) If you are holding shares in demat form and had
CDSL and NSDL logged on to www.evotingindia.com and voted
on an earlier e-voting of any company, then your
Login type Helpdesk details
existing password is to be used.
Individual Shareholders Members facing any technical
holding securities in Demat issue in login can contact 6) If you are a first-time user follow the steps given
mode with CDSL CDSL helpdesk by sending a
below:
request at helpdesk.evoting@
cdslindia.com or contact
For Physical shareholders and other than
at 022- 23058738 and 22-
individual shareholders holding shares in
23058542-43.
Demat.
Individual Shareholders Members facing any technical
PAN Enter your 10 digit alpha-numeric *PAN issued
holding securities in Demat issue in login can contact
by Income Tax Department (Applicable for
mode with NSDL NSDL helpdesk by sending a
both demat shareholders as well as physical
request at [email protected]
shareholders)
or call at toll free no.: 1800
1020 990 and 1800 22 44 30 •
Shareholders who have not updated
their PAN with the Company/Depository
Participant are requested to use the
(iii) Login method for e-Voting and joining virtual meetings sequence number sent by Company/RTA
for Physical shareholders and shareholders other or contact Company/RTA.
than individual holding in Demat form. Dividend Enter the Dividend Bank Details or Date of
Bank Details Birth (in dd/mm/yyyy format) as recorded
1) The shareholders should log on to the e-voting OR Date of in your demat account or in the company
website www.evotingindia.com. Birth (DOB) records in order to login.
2) Click on “Shareholders” module. • If both the details are not recorded with
the depository or company, please enter
3) Now enter your User ID the member id / folio number in the
Dividend Bank details field.
a. For CDSL: 16 digits beneficiary ID,
b. For NSDL: 8 Character DP ID followed by (iv) After entering these details appropriately, click on
8 Digits Client ID, “SUBMIT” tab.

(v) Shareholders holding shares in physical form will • After receiving the login details a Compliance
then directly reach the Company selection screen. User should be created using the admin login and
However, shareholders holding shares in demat password. The Compliance User would be able to
form will now reach ‘Password Creation’ menu link the account(s) for which they wish to vote on.
wherein they are required to mandatorily enter their
• The list of accounts linked in the login should be
login password in the new password field. Kindly
mailed to [email protected] and
note that this password is to be also used by the
on approval of the accounts they would be able
demat holders for voting for resolutions of any
to cast their vote.
other company on which they are eligible to vote,
provided that company opts for e-voting through • A scanned copy of the Board Resolution and
CDSL platform. It is strongly recommended not to Power of Attorney (POA) which they have issued
share your password with any other person and take in favour of the Custodian, if any, should be
utmost care to keep your password confidential. uploaded in PDF format in the system for the
scrutiniser to verify the same.
(vi) For shareholders holding shares in physical form,
• Alternatively Non Individual shareholders are
the details can be used only for e-voting on the
required to send the relevant Board Resolution/
resolutions contained in this Notice.
Authority letter etc. together with attested
specimen signature of the duly authorised
(vii)
C lick on the EVSN for the relevant AMBUJA
signatory who are authorised to vote, to the
CEMENTS LTD. on which you choose to vote.
Scrutiniser and to the Company at the email
address viz; investors.relation@ambujacement.
(viii) O n the voting page, you will see “RESOLUTION
com (designated email address by company),
DESCRIPTION” and against the same the option
if they have voted from individual tab & not
“YES/NO” for voting. Select the option YES or NO
uploaded same in the CDSL e-voting system for
as desired. The option YES implies that you assent
the scrutiniser to verify the same.
to the Resolution and option NO implies that you
dissent to the Resolution.
(xv) In case you have any queries or issues regarding
e-voting, you may refer the Frequently Asked
(ix) Click on the “RESOLUTIONS FILE LINK” if you wish
Questions (“FAQs”) and e-voting manual available at
to view the entire Resolution details.
www.evotingindia.com, under help section or write
an email to [email protected].
(x) After selecting the resolution, you have decided
to vote on, click on “SUBMIT”. A confirmation box
All grievances connected with the facility for voting
will be displayed. If you wish to confirm your vote,
by electronic means may be addressed to Mr.
click on “OK”, else to change your vote, click on
Rakesh Dalvi, Manager, (CDSL,) Central Depository
“CANCEL” and accordingly modify your vote.
Services (India) Limited, A Wing, 25th Floor, Marathon
Futurex, Mafatlal Mill Compounds, N M Joshi Marg,
(xi) Once you “CONFIRM” your vote on the resolution,
Lower Parel (East), Mumbai - 400013 or send an
you will not be allowed to modify your vote.
email to [email protected] or call
022- 23058542/43
(xii) You can also take a print of the votes cast by clicking
on “Click here to print” option on the Voting page.
II. Instructions for Shareholders for E-Voting during
the AGM are as under:-
(xiii) If a demat account holder has forgotten the login
password then Enter the User ID and the image The procedure for e-Voting on the day of the AGM is same
verification code and click on Forgot Password & as the instructions mentioned above for Remote e-voting.
enter the details as prompted by the system.
Only those shareholders, who are present in the AGM
A dditional Facilit y for Non – Individual

(xiv) through VC/OAVM facility and have not casted their vote
Shareholders and Custodians – For Remote on the Resolutions through remote e-Voting and are
Voting only. otherwise not barred from doing so, shall be eligible to
vote through e-Voting system available during the AGM.
• Non-Individual shareholders (i.e. other than
Individuals, HUF, NRI etc.) and Custodians are If any Votes are cast by the shareholders through the
required to log on to www.evotingindia.com and e-voting available during the AGM and if the same
register themselves in the “Corporates” module. shareholders have not participated in the meeting
through VC/OAVM facility, then the votes cast by such
• A scanned copy of the Registration Form bearing shareholders shall be considered invalid as the facility
the stamp and sign of the entity should be emailed of e-voting during the meeting is available only to the
to [email protected]. shareholders attending the meeting.

Shareholders who have voted through Remote e-Voting 23. Process for those Shareholders whose email/
will be eligible to attend the AGM. However, they will not mobile no. are not registered with the depositories
be eligible to vote at the AGM. for procuring User ID and Password for E-Voting.
1. For Physical shareholders- please provide necessary
22. Instructions for Shareholders attending the AGM details like Folio No., Name of shareholder, scanned copy
through VC/OAVM are as under: of the share certificate (front and back), PAN (self attested
Shareholder will be provided with a facility to attend the scanned copy of PAN card), AADHAAR (self attested
AGM through VC/OAVM through the CDSL e-Voting system. scanned copy of AADHAAR Card) by email to investors.
[email protected]
The Members can join the AGM in the VC/OAVM mode
15 minutes before and after the scheduled time of the 2. For Demat shareholders -, Please update your email id
commencement of the Meeting by following the procedure & mobile no. with your respective Depository Participant
mentioned in the Notice. The facility of participation at (DP).
the AGM through VC/OAVM will be made available to
members on first come first served basis. 3. For Individual Demat shareholders – Please refer to Point
No 5(ii) for details.
Shareholders are encouraged to join the Meeting through
Laptops / IPads for better experience. 24. Members who would like to express their views or ask
questions during the AGM may register themselves
System requirements for best VC experience: as a speaker by sending their request from their
Internet connection – broadband, wired or wireless (3G or registered email address mentioning their name, DP
4G/LTE), with a speed of 5 Mbps or more Microphone and ID and Client ID/folio number, PAN, mobile number to
speakers – built-in or USB plug-in or wireless Bluetooth [email protected] from April 15,
2022 (9:00 a.m. IST) to April 20, 2022 (5:00 p.m. IST).
Browser: Google Chrome: Version 83 or latest Mozilla
Firefox: Version 78+ or latest Microsoft Edge Chromium: 25. Those Members who have registered themselves as a
Version 72 or latest Safari: Version 13+ or latest Internet speaker will only be allowed to express their views/ask
Explorer: Not Supported questions during the AGM. The Company reserves the
right to restrict the number of speakers depending on the
Please note that Participants Connecting from Mobile availability of time for the AGM.
Devices or Tablets or through Laptop connecting via
Mobile Hotspot may experience Audio/Video loss due 26.
M embers who need assistance before or during
to Fluctuation in their respective network. It is therefore the AGM, can contact CDSL by sending an email to
recommended to use Stable Wi-Fi or LAN Connection to [email protected] or call at 022-23058738,
mitigate any kind of aforesaid glitches. 23058542/43.
Members can post questions through Q&A feature 27. Since the AGM will be held through VC/OAVM Facility, the
available in the VC. Members can exercise these options Route Map is not annexed in this Notice.
once the floor is open for shareholder queries.

Notes
Notes
Corporate Information
BOARD OF DIRECTORS COMMITTEES OF BOARD Sustainability Committee

(w.e.f January 1, 2022)
Mr. N.S. Sekhsaria Audit Committee
Mr. Martin Kriegner (Chairman)
Chairman and Principal Founder Mr. Rajendra P. Chitale (Chairman)
Mr. N.S.Sekhsaria
Mr. Jan Jenisch Mr. Nasser Munjee
Mr. Nasser Munjee
Vice Chairman Ms. Shikha Sharma
Mr. Ranjit Shahani
Mr. Nasser Munjee Dr. Omkar Goswami
Mr. Mahendra Kumar Sharma
Mr. Rajendra P. Chitale Mr. Mahendra Kumar Sharma
Mr. Neeraj Akhoury
Mr. Martin Kriegner
Mr. Shailesh Haribhakti
Mr. Neeraj Akhoury - Permanent Invitee
Dr. Omkar Goswami AUDITORS
Ms. Shikha Sharma Nomination and Remuneration M/s. Deloitte Haskins & Sells LLP
Committee (Statututory Auditors)
Mr. Christof Hassig
Mr. Nasser Munjee (Chairman)
Mr. Martin Kriegner M/s. P.M. Nanabhoy & Co.
Mr. N.S. Sekhsaria
(Cost Auditors)
Ms. Then Hwee Tan Mr. Martin Kriegner
Mr. Mahendra Kumar Sharma Mr. Shailesh Haribhakti M/s.Rathi & Associates
Dr. Omkar Goswami (Secretarial Auditors)
Mr. Ranjit G. Shahani
(w.e.f January 1, 2022)
Mr. Praveen Kumar Molri Ms. Shikha Sharma CORPORATE OFFICE
Mr. Ramanathan Muthu (w.e.f January 1, 2022)
Elegant Business Park
Mr. Neeraj Akhoury - Permanent
Mr. Neeraj Akhoury MIDC Cross Road “B”
Invitee
Managing Director & CEO Off Andheri – Kurla Road
Stakeholders’ Relationship Andheri (E), Mumbai 400059
CHIEF FINANCIAL OFFICER Committee Telephone : (022) 40667000
Ms. Rajani Kesari Mr. Ranjit Shahani (Chairman)
Mr. Rajendra Chitale REGISTERED OFFICE
COMPANY SECRETARY Dr. Omkar Goswami
P.O. Ambujanagar, Tal.Kodinar
Mr. Neeraj Akhoury
Mr. Rajiv Gandhi Dist. Gir Somnath, Gujarat 362 715
CSR Committee
EXECUTIVE COMMITTEE Mr. N.S. Sekhsaria, (Chairman) CORPORATE WEBSITE:
Mr. Neeraj Akhoury Mr. Nasser Munjee www.ambujacement.com
Managing Director & CEO Mr. Rajendra Chitale CIN: L26942GJ1981PLC004717
Ms. Rajani Kesari Mr. Mahendra Kumar Sharma Email : investors.relation@
Chief Financial Officer Mr. Martin Kriegner ambujacement.com
Mr. Sukuru Ramarao Mr. Neeraj Akhoury
Chief Manufacturing Officer Mrs. Pearl Tiwari - Permanent invitee REGISTRAR & SHARE TRANSFER AGENTS
Mr. Rajiv Kumar Link Intime India Pvt. Ltd.
Chief Commercial Officer Risk Management Committee
C-101, 247 Park, L B S Marg,
Mr. Rajendra Chitale (Chairman)
Mr. Suresh Rathi Vikhroli (West),
Head of Fuel, Raw Materials & Inbound Mr. Nasser Munjee
Mumbai 400083.
Outbound Logistics Mr. Shailesh Haribhakti
Telephone : (022) 49186000/49186270
Mr. Manoj Chhura Mr. Neeraj Akhoury
Email : [email protected]
Chief Procurement Officer
Compliance Committee
Mr. Rahul Maitra Mr. Nasser Munjee (Chairman)
Chief Human Resource Officer Dr. Omkar Goswami
Mr. Shailesh Haribhakti
Ms. Then Hwee Tan
Mr. Neeraj Akhoury
Corporate Office: Elegant Business Park, MIDC Cross Road ‘B’, Off Andheri-Kurla Road, Andheri (E), Mumbai - 400059
Tel.: 022 6616 7000 / 4066 7000 | www.ambujacement.com

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Strength and Sustainability

for a green future.

AMBUJA CEMENTS LIMITED

Creating value for our stakeholders

Trends and topics impacting value creation TRENDS AND TOPICS

Awards and Recognition 106

Click here for Online Integrated report including the

Sections of this Integrated Report also comply with the

RATINGS AND STANDARDS

2 Ambuja Cements Limited Integrated Annual Report 2021

OUR STAKEHOLDERS MATERIAL MATTERS

Read more Page 28

Read more Page 32

Financial capital Social capital

Manufactured capital Relationship capital

Intellectual capital Human capital

Read more Page 60 Read more Page 96

Ambuja Cements Limited Integrated Annual Report 2021 3

13,794 3,207 2,081

4 Ambuja Cements Limited Integrated Annual Report 2021

People, health and safety

Ambuja Cements Limited Integrated Annual Report 2021 5

6 Ambuja Cements Limited Integrated Annual Report 2021

At Ambuja Cement, we have deployed share of green power in total energy

Ambuja Cements Limited Integrated Annual Report 2021 7

future for all

For the cement industry in general,

Notwithstanding these challenges,

OUR MOMENT OF PRIDE

Ambuja Cements Limited Integrated Annual Report 2021 9

Ambuja Cements Limited Integrated Annual Report 2021 11

Integrated Grinding Cumulative manufacturing

12 Ambuja Cements Limited Integrated Annual Report 2021

Holcim Ltd. Ambuja Cement Foundation (ACF)

Ambuja Cements Limited Integrated Annual Report 2021 13

India’s per capita cement consumption reflects strong headroom for

Source: CRISIL Research

14 Ambuja Cements Limited Integrated Annual Report 2021

Robust financials Sustainability leadership

Water consumed in cement operations

Expansion road map Enriching product Enhancing

Ambuja Cements Limited Integrated Annual Report 2021 15

STRONGER FOCUS ON PRIORITY AREAS

Digitalisation remains our key focus

16 Ambuja Cements Limited Integrated Annual Report 2021

business by 2050. Accordingly, we in Farakka and Sankrail (existing units),

UNVEILING THE NEXT PHASE OF EXPANSION Warm regards,

Ambuja Cements Limited Integrated Annual Report 2021 17

MR. N.S. SEKHSARIA MR. JAN JENISCH MR. NASSER MUNJEE

MR. RAJENDRA CHITALE MR. SHAILESH HARIBHAKTI DR. OMKAR GOSWAMI

MS. SHIKHA SHARMA MR. CHRISTOF HASSIG MR. MARTIN KRIEGNER

18 Ambuja Cements Limited Integrated Annual Report 2021

Ambuja Cements Limited Integrated Annual Report 2021 19

MR. NEERAJ AKHOURY

MS. RAJANI KESARI MR. SUKURU RAMARAO MR. RAJIV KUMAR

MR. SURESH RATHI MR. RAHUL MAITRA MR. MANOJ CHHURA

20 Ambuja Cements Limited Integrated Annual Report 2021

Living the spirit

Read more Page 42 Read more Page 76