There is a better way:
KeyguardManager myKM = (KeyguardManager) context.getSystemService(Context.KEYGUARD_SERVICE);
if( myKM.inKeyguardRestrictedInputMode()) {
//it is locked
} else {
//it is not locked
}
No need for broadcastRecievers, permissions or anything similar.
Note: It doesn’t work when user has set his/her screen lock to none
in settings–>security–>screenlock–>none