JK Lakshmi Cement Responds to IiAS Report, Vigorously Defending Remuneration for Smt. Vinita Singhania

JK Lakshmi Cement Responds to IiAS Report, Vigorously Defending Remuneration for Smt. Vinita Singhania​

JK Lakshmi Cement Ltd. has submitted a detailed clarification to Institutional Investor Advisory Services (IiAS) regarding its Proxy Advisory Report concerning the upcoming Annual General Meeting (AGM) scheduled for July 30, 2026. The company addressed IiAS' negative voting recommendation pertaining to the re-appointment and remuneration of Smt. Vinita Singhania as Chairperson and Managing Director.

IiAS recommended AGAINST the resolution regarding Smt. Vinita Singhania’s appointment and pay structure for five years, starting August 1, 2026, citing Governance Concern and Weak Transparency as rationale.

In its response dated July 19, 2026, JK Lakshmi Cement Ltd. refuted IiAS' claims by asserting that the remuneration proposed for Smt. Vinita Singhania is strictly within the limits prescribed by law. The company noted that Smt. Vinita Singhania belongs to the Promoter Group of the Company and not the sole Promoter, countering a point made in the advisory report.

The company confirmed that the remuneration proposal was duly recommended by the Nomination & Remuneration Committee (NRC) and approved by the Board of Directors. JK Lakshmi Cement Ltd. stated that the compensation structure adheres to industry benchmarks, considering the Company’s financial position, past performance, and responsibilities. Crucially, the total proposed remuneration for Smt. Vinita Singhania, alongside other managerial personnel including Shri Shrivats Singhania (Dy. Managing Director) and Dr. Arun Kumar Shukla (President & Director), is within the permitted limit of 10% of Net Profit as per Section 197 of the Companies Act, 2013.

The company further clarified the structure of variable pay, including Performance Linked Incentives (PLI) and Commission. While JK Lakshmi Cement Ltd. does not currently have a PLI Scheme, it is taking an enabling approval for such a scheme should one be introduced later. Regarding commission, the payment will be determined by the Board and must remain within the overall limit of managerial remuneration specified under Section 197 of the Companies Act, 2013.

JK Lakshmi Cement Ltd. emphasized that neither the Companies Act, 2013 nor SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 mandates an absolute cap on variable pay for Promoter Directors, aligning their proposed structure with established industry standards and practices.

In addressing governance concerns, the company pointed out that Smt. Vinita Singhania abstained when matters regarding her remuneration and re-appointment were discussed in the NRC. This decision was approved by all Independent Directors serving on the NRC, thus ensuring there is no conflict of interest.

Concluding its statement to IiAS, JK Lakshmi Cement Ltd. argued that since the proposed remuneration is legally capped within 10% of Net Profit, the Proxy Advisor should recommend a Positive vote for Item No. 5, rather than creating an incorrect impression among investors regarding compliance with regulatory limits.

JKLAKSHMI Stock Price Movement​

On Friday, JK Lakshmi Cement Limited edged higher, closing at ₹572.15 after gaining 0.51%. The stock saw a trading volume of 96,312 shares and ranged throughout the session between a low of ₹566.1 and a high of ₹576.